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Last updated on April 23, 2014 at 15:23 EDT

Drew Industries Reports Second Quarter 2013 Results

August 6, 2013

ELKHART, Ind., Aug. 6, 2013 /PRNewswire/ — Drew Industries Incorporated (NYSE: DW), a leading supplier of components for recreational vehicles (RVs) and manufactured homes, today reported net income of $15.9 million, or $0.67 per diluted share, for the second quarter ended June 30, 2013, net of a previously announced after-tax charge of $0.4 million related to executive succession. Excluding this charge, net income in the second quarter of 2013 would have been $16.3 million, or $0.69 per diluted share, an increase of 39 percent compared to net income of $11.7 million, or $0.52 per diluted share, in the second quarter of 2012.

“Our operating profit margins improved sequentially in the second quarter of 2013 primarily due to efficiency improvements implemented by management, as well as the benefits of spreading fixed costs over a seasonally larger sales base and seasonally lower payroll taxes,” said Jason Lippert, Drew’s Chief Executive Officer. “This sequential margin gain was greater than originally expected, as many of the improvements implemented by management resulted in efficiency gains sooner than anticipated. We were confident that the steps we had taken to meet anticipated customer demand and improve profitability were correct, and it was reassuring to see the results of these efforts in the 2013 second quarter.”

Net sales in the second quarter of 2013 increased to a record $287 million, 14 percent higher than the same period last year. The increase in Drew’s second quarter net sales was a result of a 16 percent sales increase by Drew’s RV Segment, which accounted for 88 percent of consolidated net sales this quarter. RV Segment sales growth was largely due to a 12 percent increase in industry-wide wholesale shipments of travel trailer and fifth-wheel RVs, Drew’s primary RV market. Sales of recently introduced components for towable and motorhome RVs also contributed to the revenue increase, as did sales to adjacent industries and the aftermarket.

The Company’s content per travel trailer and fifth-wheel RV and motorhome RV for the twelve months ended June 2013 increased 5 percent and 23 percent, respectively, from the year-earlier period as a result of recent product introductions, product improvements and market share gains. The Company’s content per manufactured home for the twelve months ended June 2013 declined 3 percent from the year-earlier period primarily due to customer mix. The change in content per RV and manufactured home is a measure of the change in Drew’s overall market share across its existing product lines.

Retail demand for towable RVs increased 10 percent in the first five months of 2013, following an 8 percent increase in retail demand for the full year 2012. June 2013 retail data is not yet available. Most industry analysts report that dealer inventories of towable RVs are in line with anticipated retail demand. Future RV industry-wide production levels will depend on the strength of future retail sales.

“Our labor efficiencies continued to improve, with labor costs as a percent of sales declining in the second quarter of 2013,” continued Jason Lippert. “This improvement followed a sequential reduction of labor as a percent of sales of more than 1 percent in the first quarter of 2013. These reductions during the first two quarters of 2013 were primarily due to improved production processes, as well as expected declines in the costs of implementing facility consolidations and realignments. Nonetheless, we are continuing to implement additional efficiency improvements as we identify them. However, the benefits of such improvements on our operating margins in the latter half of 2013 will likely be offset by the spreading of fixed costs over a seasonally smaller sales base.”

In July 2013, Drew’s consolidated net sales reached approximately $83 million – 13 percent higher than in July 2012 – as a result of continued solid growth in the Company’s RV Segment. Drew estimates that industry-wide wholesale shipments of travel trailer and fifth-wheel RVs increased 7 percent in July 2013 compared to July 2012. Drew also estimates that July 2013 industry-wide production of manufactured homes increased 5 to 10 percent compared to July 2012.

“Since the end of 2011, we have achieved significant growth, with our net sales for the twelve months ended June 30, 2013 increasing over $285 million, or 42 percent,” said Scott Mereness, Drew’s President. “In response to this sales growth, and in anticipation of future growth, we added significant resources, investing in personnel and facilities to expand and improve production capacity, as well as to improve customer service. Many of the benefits and efficiencies of these initiatives were realized in the 2013 second quarter. Having just completed the peak seasonal period, we are now evaluating our human resource and facility requirements for the balance of 2013 and beyond.”

Jason Lippert added, “We will continue to invest in resources to strategically grow the business, especially in research and development, to provide creative and unique products. Staying ahead of the market through innovation has been important to our success, and will be even more important to maintaining our position as a leading supplier to the industries we serve. In addition, we will invest in areas where we believe additional savings can be realized, such as purchasing, automation and human resources. While some of these initiatives and related fixed costs may have a negative impact on operating margins in the short term, we believe they will benefit the long-term growth of the Company.”

“As previously announced, Fred Zinn retired as President and CEO in May 2013,” said Leigh Abrams, Chairman of Drew’s Board of Directors. “Jason Lippert became Drew’s CEO, and Scott Mereness became Drew’s President. Jason and Scott have been vital to our sales growth and operational success for many years and are highly respected throughout the industries we serve. As expected, this executive succession transition was very smooth, and we are confident that Jason, Scott and their team are ready to lead Drew for many years to come.”

As a result of the Company’s executive succession and corporate relocation from New York to Indiana, a pre-tax charge of $0.7 million was recorded in the second quarter of 2013 related to contractual obligations for severance and the acceleration of equity awards held by certain employees whose employment terminated. No other related charges are expected. Once the transition and corporate office relocation are completed during the latter half of 2013, the Company expects to save approximately $2 million annually.

“Our operating cash flow in the second quarter of 2013 remained strong,” said Joe Giordano, Drew’s Chief Financial Officer and Treasurer. “At the end of the quarter, we had no debt, $32 million of cash and substantial available credit lines, and we expect continued solid cash flow. We are well positioned to take advantage of attractive investment opportunities that can further improve our results.”

Conference Call & Webcast
Drew will provide an online, real-time webcast of its second quarter 2013 earnings conference call on the Company’s website, www.drewindustries.com, on Tuesday, August 6, 2013, at 11:00 a.m. Eastern time. The call can also be accessed at www.companyboardroom.com.

Institutional investors can access the call via the password-protected site, StreetEvents (www.streetevents.com). A replay of the call will be available by dialing (888) 286-8010 and referencing access code 18767066. A replay of the webcast will also be available on Drew’s website.

About Drew Industries
From 31 factories located throughout the United States, Drew Industries, through its wholly-owned subsidiaries, Kinro and Lippert Components, supplies a full line of components for the leading manufacturers of recreational vehicles and manufactured homes. In addition, Drew manufactures components for adjacent industries including buses; trailers used to haul boats, livestock, equipment and other cargo; truck caps; modular housing; and factory-built mobile office units. Drew’s products include steel chassis; vinyl and aluminum windows and screens; slide-out mechanisms and solutions; axles and suspension solutions; furniture and mattresses; thermoformed bath, kitchen and other products; manual, electric and hydraulic stabilizer and lifting systems; chassis components; entry, baggage, patio and ramp doors; entry steps; awnings; electronics; aluminum extrusions; and other accessories. Additional information about Drew and its products can be found at www.drewindustries.com.

Forward-Looking Statements
This press release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to financial condition, results of operations, business strategies, operating efficiencies or synergies, competitive position, growth opportunities for existing products, acquisitions, plans and objectives of management, markets for the Company’s Common Stock and other matters. Statements in this press release that are not historical facts are “forward-looking statements” for the purpose of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”) and Section 27A of the Securities Act of 1933 (the “Securities Act”).

Forward-looking statements, including, without limitation, those relating to our future business prospects, net sales, expenses and income (loss), cash flow, and financial condition, whenever they occur in this press release are necessarily estimates reflecting the best judgment of our senior management at the time such statements were made, and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by such forward-looking statements. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made. You should consider forward-looking statements, therefore, in light of various important factors, including those set forth under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2012, and in our subsequent filings with the Securities and Exchange Commission (the “SEC”).

There are a number of factors, many of which are beyond the Company’s control, which could cause actual results and events to differ materially from those described in the forward-looking statements. These factors include, in addition to other matters described in this press release, pricing pressures due to domestic and foreign competition, costs and availability of raw materials (particularly steel, steel-based components and aluminum) and other components, availability of credit for financing the retail and wholesale purchase of products for which we sell our components, availability and costs of labor, inventory levels of retail dealers and manufacturers, levels of repossessed products for which we sell our components, changes in zoning regulations for manufactured homes, seasonality and cyclicality in the industries to which we sell our products, the financial condition of our customers, the financial condition of retail dealers of products for which we sell our components, retention and concentration of significant customers, the successful integration of acquisitions, realization of efficiency improvements, the successful entry into new markets, interest rates, oil and gasoline prices, and the successful implementation of management succession. In addition, international, national and regional economic conditions and consumer confidence affect the retail sale of products for which we sell our components.


                                                     DREW INDUSTRIES INCORPORATED

                                                           OPERATING RESULTS

                                                              (unaudited)

                                                 Six Months Ended             Three Months Ended

                                                     June 30,                      June 30,         Last Twelve
                                                     --------                      --------

    (In thousands, except per share amounts)                     2013                          2012               2013     2012 Months
                                                                 ----                          ----               ----     ---- ------

    Net sales                                                $539,778                      $474,566           $287,192 $251,014        $966,335

    Cost of sales                                             430,754                       383,320            225,759  204,591         779,898
                                                              -------                       -------            -------  -------         -------

    Gross profit                                              109,024                        91,246             61,433   46,423         186,437

    Selling, general and administrative expenses               67,852                        54,905             34,992   27,455         122,018

    Executive succession                                        1,876                             -                733        -           3,332
                                                                -----                           ---                ---      ---           -----

    Operating profit                                           39,296                        36,341             25,708   18,968          61,087

    Interest expense, net                                         203                           130                 85       56             403
                                                                  ---                           ---                ---      ---             ---

    Income before income taxes                                 39,093                        36,211             25,623   18,912          60,684

    Provision for income taxes                                 14,856                        13,387              9,758    7,204          21,931
                                                               ------                        ------              -----    -----          ------

    Net income                                                $24,237                       $22,824            $15,865  $11,708         $38,753
                                                              =======                       =======            =======  =======         =======

    Net income per common share:

    Basic                                                       $1.05                         $1.02              $0.68    $0.52           $1.69
                                                                =====                         =====              =====    =====           =====

    Diluted                                                     $1.03                         $1.01              $0.67    $0.52           $1.67
                                                                =====                         =====              =====    =====           =====

    Weighted average common shares outstanding:

    Basic                                                      23,139                        22,479             23,261   22,516          22,889
                                                               ======                        ======             ======   ======          ======

    Diluted                                                    23,553                        22,686             23,650   22,731          23,262
                                                               ======                        ======             ======   ======          ======

    Depreciation and amortization                             $13,453                       $12,361             $6,901   $5,980         $26,757
                                                              =======                       =======             ======   ======         =======

    Capital expenditures                                      $17,545                       $13,154             $8,607   $7,470         $36,417
                                                              =======                       =======             ======   ======         =======

                                                          DREW INDUSTRIES INCORPORATED

                                                                SEGMENT RESULTS

                                                                  (unaudited)

                                                              Six Months Ended         Three Months Ended

                                                                  June 30,                  June 30,         Last Twelve
                                                                  --------                  --------

    (In thousands)                                                            2013                      2012               2013      2012 Months
                                                                              ----                      ----               ----      ---- ------

    Net sales:(1)

    RV Segment:

    RV original equipment manufacturers:

    Travel trailers and fifth-wheels                                      $394,512                  $350,348           $209,013  $183,013        $700,081

    Motorhomes                                                              21,275                    15,502             11,025     8,930          38,470

    RV aftermarket                                                          12,881                     9,359              7,152     5,369          22,641

    Adjacent industries                                                     48,401                    38,777             25,876    21,119          82,816
                                                                            ------                    ------             ------    ------          ------

    Total RV Segment net sales                                             477,069                   413,986            253,066   218,431         844,008
                                                                           -------                   -------            -------   -------         -------

    MH Segment:

    Manufactured housing original equipment manufacturers                   40,370                    40,490             22,591    21,778          80,273

    Manufactured housing aftermarket                                         7,239                     7,188              3,587     3,576          13,161

    Adjacent industries                                                     15,100                    12,902              7,948     7,229          28,893

    Total MH Segment net sales                                              62,709                    60,580             34,126    32,583         122,327
                                                                            ------                    ------             ------    ------         -------

    Total net sales                                                       $539,778                  $474,566           $287,192  $251,014        $966,335
                                                                          ========                  ========           ========  ========        ========

    Operating Profit:(2)

    RV Segment                                                             $34,864                   $29,349            $22,600   $14,819         $52,687

    MH Segment                                                               6,308                     6,992              3,841     4,149          11,732
                                                                             -----                     -----              -----     -----          ------

    Total segment operating profit                                          41,172                    36,341             26,441    18,968          64,419

    Executive succession                                                    (1,876)                        -               (733)        -          (3,332)

    Total operating profit                                                 $39,296                   $36,341            $25,708   $18,968         $61,087
                                                                           =======                   =======            =======   =======         =======

    (1) In the second quarter of 2013, the Company refined the various sales categories within the RV Segment and MH Segment. This refinement had no impact on

    total RV Segment and MH Segment net sales or trends. Prior periods have been reclassified to conform to this presentation.

    (2) Effective with the second quarter of 2013, in connection with the management succession and relocation of the corporate office from New York to Indiana,

    corporate expenses, accretion related to contingent consideration and other non-segment items, which were previously reported on separate lines, have been

    included as part of segment operating profit. Corporate expenses are allocated between the segments based upon net sales.  Accretion related to contingent

    consideration and other non-segment items are included in the segment to which they relate. The segment disclosures from prior years have been reclassified

    to conform to the current year presentation.

                              DREW INDUSTRIES INCORPORATED

                               BALANCE SHEET INFORMATION

                                      (unaudited)

                               June 30            December 31,
                               -------

    (In thousands)                    2013                 2012     2012
                                      ----                 ----     ----

    Current Assets

    Cash and cash equivalents      $31,877              $42,514   $9,939

    Accounts receivable, net        59,515               50,900   21,846

    Inventories                     99,777               91,413   97,367

    Deferred taxes                  10,073               10,125   10,073

    Prepaid expenses and
     other current assets           10,844                9,631   14,798
                                    ------                -----   ------

    Total current assets           212,086              204,583  154,023

    Fixed assets, net              117,419               99,342  107,936

    Goodwill                        21,552               21,177   21,177

    Other intangible assets,
     net                            64,307               73,986   69,218

    Deferred taxes                  14,993               14,496   14,993

    Other assets                     7,392                5,618    6,521
                                     -----                -----    -----

    Total assets                  $437,749             $419,202 $373,868
                                  ========             ======== ========

    Current liabilities

    Accounts payable, trade        $33,463              $44,372  $21,725

    Accrued expenses and
     other current
     liabilities                    57,405               48,665   48,055
                                    ------               ------   ------

    Total current liabilities       90,868               93,037   69,780

    Other long-term
     liabilities                    21,734               21,305   19,843
                                    ------               ------   ------

    Total liabilities              112,602              114,342   89,623

    Total stockholders'
     equity                        325,147              304,860  284,245
                                   -------              -------  -------

    Total liabilities and
     stockholders' equity         $437,749             $419,202 $373,868
                                  ========             ======== ========

                                                                                          DREW INDUSTRIES INCORPORATED

                                                                                             SUMMARY OF CASH FLOWS

                                                                                                  (unaudited)

                                                                                                                       Six Months Ended

                                                                                                                           June 30,
                                                                                                                           --------

    (In thousands)                                                                                                                     2013     2012
                                                                                                                                       ----     ----

    Cash flows from operating activities:

      Net income                                                                                                                    $24,237  $22,824

      Adjustments to reconcile net income to cash flows provided by operating activities:

    Depreciation and amortization                                                                                                    13,453   12,361

    Stock-based compensation expense                                                                                                  5,844    3,069

    Other non-cash items                                                                                                              1,624    1,131

    Changes in assets and liabilities, net of acquisitions of businesses:

    Accounts receivable, net                                                                                                        (37,520) (28,280)

    Inventories                                                                                                                      (2,367)   1,227

    Prepaid expenses and other assets                                                                                                 3,573   (4,642)

    Accounts payable                                                                                                                 11,696   28,630

    Accrued expenses and other liabilities                                                                                           12,499   12,241

    Net cash flows provided by operating activities                                                                                  33,039   48,561
                                                                                                                                     ------   ------

    Cash flows from investing activities:

      Capital expenditures                                                                                                          (17,545) (13,154)

      Acquisitions of businesses                                                                                                     (1,451)  (1,473)

      Proceeds from sales of fixed assets                                                                                                70    2,123

      Other investing activities                                                                                                        (48)     (48)
                                                                                                                                        ---      ---

    Net cash flows used for investing activities                                                                                    (18,974) (12,552)
                                                                                                                                    -------  -------

    Cash flows from financing activities:

      Proceeds from exercise of stock options                                                                                        10,686    1,471

      Proceeds from line of credit borrowings                                                                                       135,452   37,702

      Repayments under line of credit borrowings                                                                                   (135,452) (37,702)

      Payment of contingent consideration related to acquisitions                                                                    (2,813)  (1,550)

    Net cash flows provided by (used for) financing activities                                                                        7,873      (79)
                                                                                                                                      -----      ---

    Net increase in cash                                                                                                             21,938   35,930

    Cash and cash equivalents at beginning of period                                                                                  9,939    6,584
                                                                                                                                      -----    -----

    Cash and cash equivalents at end of period                                                                                      $31,877  $42,514
                                                                                                                                    =======  =======

                                                                                                            DREW INDUSTRIES INCORPORATED

                                                                                                              SUPPLEMENTARY INFORMATION

                                                                                                                     (unaudited)

                                                                                            Six Months
                                                                                               Ended                 Three Months Ended

                                                                                             June 30,                     June 30,                                        Last Twelve
                                                                                             --------                     --------

                                                                                                  2013               2012                                            2013                                    2012        Months
                                                                                                  ----               ----                                            ----                                    ----        ------

    Industry Data(1)(in thousands of units):

    Industry Wholesale Production:

    Travel trailer and fifth-wheel RVs                                                           146.6              131.5                                            79.9                                    71.1               258.0

    Motorhome RVs                                                                                 19.5               14.5                                            11.0                                     7.6                33.2

    Manufactured homes                                                                            29.1               27.7                                            16.3                                    14.9                56.3

    Industry Retail Sales:

    Travel trailer and fifth-wheel RVs                                                           135.4    (2)       123.1                                            92.9           (2)                      84.0               235.3 (2)

    Impact on dealer inventories                                                                  11.2    (2)         8.4                                           (13.0)          (2)                     (12.9)               22.7 (2)

                                                                                                                                                   Twelve Months Ended

                                                                                                                                                         June 30,
                                                                                                                                                         --------

                                                                                                                                                                     2013                                    2012
                                                                                                                                                                     ----                                    ----

    Drew Content Per Industry Unit Produced:

    Travel trailer and fifth-wheel RV                                                                                                                              $2,713           (3)                    $2,584    (3)

    Motorhome RV                                                                                                                                                   $1,159           (3)                      $941    (3)

    Manufactured home                                                                                                                                              $1,426                                  $1,476

                                                                                                                                                         June 30,                              December 31,
                                                                                                                                                         --------

                                                                                                                                                                     2013                                    2012                2012
                                                                                                                                                                     ----                                    ----                ----

    Balance Sheet Data:

    Current ratio                                                                                                                          2.3                                     2.2                              2.2

    Total indebtedness to stockholders' equity                                                                                                                         -                                       -                   -

    Days sales in accounts receivable                                                                                                     20.1                                    19.3                             14.3

    Inventory turns, based on last twelve months                                                                                           7.8                                     7.1                              7.8

                                                                                                                                                                     2013
                                                                                                                                                                     ----

    Estimated Full Year Data:

    Capital expenditures                                                                                                   $ 30 - $ 34 million

    Depreciation and amortization                                                                                          $ 26 - $ 28 million

    Stock-based compensation expense                                                                                       $ 10 - $ 11 million

    Annual tax rate                                                                                                                  37% - 38%

    (1) Industry wholesale production data for travel trailer and fifth-wheel RVs and motorhome RVs provided by the Recreation Vehicle Industry Association.  Industry wholesale production data
     for manufactured homes provided by the Institute for Building Technology and Safety.  Industry retail sales data provided by Statistical Surveys, Inc.

    (2) June retail sales data for RVs has not been published yet, therefore 2013 retail data for RVs includes an estimate for June 2013 retail units.

    (3) In the second quarter of 2013, the Company refined the calculation of RV content per unit. This refinement had no impact on total RV Segment net sales or trends of content per unit.
     Prior periods have been reclassified to conform to this presentation.

                                                                                                  DREW INDUSTRIES INCORPORATED

                                                                                                  RECLASSIFIED SEGMENT RESULTS

                                                                                                          (unaudited)

    Effective with the second quarter of 2013, in connection with the management succession and relocation of the corporate office from New York to Indiana, corporate expenses, accretion
     related to contingent consideration and other non-segment items, which were previously reported on separate lines, have been included as part of segment operating profit. Corporate
     expenses are allocated between the segments based upon net sales. Accretion related to contingent consideration and other non-segment items are included in the segment to which
     they relate. The segment disclosures from prior years have been reclassified to conform to the current year presentation.

    Reclassified information relating to segments follows for the (in thousands):

                                                                                                                                                                                                       Six Months

                                                                      Three Months Ended                                                                                                               Ended
                                                                      ------------------                                                                                                               -----

                                                                          March 31,                      June 30,                                                                                       June 30,

                                                                                       2013                          2013                                                                                            2013
                                                                                       ----                          ----                                                                                            ----

    Net sales:

         RV Segment                                                                $224,003                      $253,066                                                                                        $477,069

         MH Segment                                                                  28,583                        34,126                                                                                          62,709
                                                                                     ------                        ------                                                                                          ------

    Total net sales                                                                $252,586                      $287,192                                                                                        $539,778
                                                                                   ========                      ========                                                                                        ========

    Operating Profit:

         RV Segment                                                                 $12,264                       $22,600                                                                                         $34,864

         MH Segment                                                                   2,467                         3,841                                                                                           6,308
                                                                                      -----                         -----                                                                                           -----

    Total segment operating profit                                                   14,731                        26,441                                                                                          41,172

    Executive succession                                                             (1,143)                         (733)                                                                                         (1,876)

    Total operating profit                                                          $13,588                       $25,708                                                                                         $39,296
                                                                                    =======                       =======                                                                                         =======

                                                                       Three Months Ended                                 Year Ended
                                                                       ------------------                                 ----------

                                                                          March 31,                      June 30,                              September 30,                     December 31,         December 31,

                                                                                       2012                          2012                                       2012                            2012                 2012
                                                                                       ----                          ----                                       ----                            ----                 ----

    Net sales:

         RV Segment                                                                $195,555                      $218,431                                   $194,957                        $171,982             $780,925

         MH Segment                                                                  27,997                        32,583                                     31,366                          28,252              120,198
                                                                                     ------                        ------                                     ------                          ------              -------

    Total net sales                                                                $223,552                      $251,014                                   $226,323                        $200,234             $901,123
                                                                                   ========                      ========                                   ========                        ========             ========

    Operating Profit:

         RV Segment                                                                 $14,530                       $14,819                                    $11,587                          $6,236              $47,172

         MH Segment                                                                   2,843                         4,149                                      3,361                           2,063               12,416
                                                                                      -----                         -----                                      -----                           -----               ------

    Total segment operating profit                                                   17,373                        18,968                                     14,948                           8,299               59,588

    Executive succession                                                                  -                             -                                          -                          (1,456)              (1,456)

    Total operating profit                                                          $17,373                       $18,968                                    $14,948                          $6,843              $58,132
                                                                                    =======                       =======                                    =======                          ======              =======

                                                                       Three Months Ended                                 Year Ended
                                                                       ------------------                                 ----------

                                                                          March 31,                      June 30,                              September 30,                     December 31,         December 31,

                                                                                       2011                          2011                                       2011                            2011                 2011
                                                                                       ----                          ----                                       ----                            ----                 ----

    Net sales:

         RV Segment                                                                $146,229                      $157,199                                   $136,228                        $130,987             $570,643

         MH Segment                                                                  22,604                        28,849                                     30,461                          28,609              110,523
                                                                                     ------                        ------                                     ------                          ------              -------

    Total net sales                                                                $168,833                      $186,048                                   $166,689                        $159,596             $681,166
                                                                                   ========                      ========                                   ========                        ========             ========

    Operating Profit:

         RV Segment                                                                 $13,601                       $15,286                                     $5,653                          $3,175              $37,715

         MH Segment                                                                   1,942                         2,624                                      3,550                           2,717               10,833
                                                                                      -----                         -----                                      -----                           -----               ------

    Total operating profit                                                          $15,543                       $17,910                                     $9,203                          $5,892              $48,548
                                                                                    =======                       =======                                     ======                          ======              =======

                                                                                   DREW INDUSTRIES INCORPORATED

                                                                                 RECLASSIFIED RV CONTENT PER UNIT

                                                                                           (unaudited)

    In the second quarter of 2013, the Company refined the calculation of RV content per unit. This refinement had no impact on total RV Segment net sales or
     trends of content per unit. Prior periods have been reclassified to conform to this presentation.

    The trend in the Company's average product content per RV produced is an indicator of the Company's overall market share of components for new RVs. The
     Company's average product content per type of RV, calculated based upon the Company's net sales of components to RV OEMs for the different types of RVs
     produced for the respective twelve month period, divided by the industry-wide wholesale shipments of the different types of RVs for the same period, was:

                                                                         Twelve Months Ended
                                                                         -------------------

                                                                             March 31,                      June 30,                     September 30,         December 31,
                                                                             ---------                      --------                     -------------         ------------

    Content per (2013):

    Travel trailer and fifth-wheel RV                                                   $2,705                        $2,713

    Motorhome RV                                                                        $1,221                        $1,159

    Content per (2012):

    Travel trailer and fifth-wheel RV                                                   $2,441                        $2,584                            $2,673              $2,700

    Motorhome RV                                                                          $771                          $941                            $1,092              $1,160

    Content per (2011):

    Travel trailer and fifth-wheel RV                                                   $2,177                        $2,182                            $2,235              $2,337

    Motorhome RV                                                                          $660                          $646                              $666                $705

SOURCE Drew Industries Incorporated


Source: PR Newswire