Patrick Industries, Inc. · NASDAQ:PATK
Patrick Industries — Q1 2024 Earnings Presentation
16 slides from Patrick Industries's earnings presentation, May 2, 2024
Slide 1: Q1 2024 Earnings Presentation
Q1 2024 Earnings Presentation May 2, 2024 1
Slide 2: Forward-looking statements
Forward-looking statements 2 This presentation includes contains statements that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward- looking statements are generally identified by words such as “estimates,” “guidance,” “expects,” ”ant
Slide 3: Key metrics and key messages
3 Wholesale RV Shipments 406,070 313,174 (23%) Total Net Sales $2,337 $3,468 +48% Total RV Sales $1,287 $1,503 +17% Total Marine Sales $329 $783 +138% Total Housing Sales $721 $1,060 +47% Gross Margin 18.1% 22.6% +450 bps Operating Margin 6.6% 7.5% +90 bps Diluted EPS $3.85 $6.50 +69% Free Cash Flow
Slide 4: Highlights Q1 2024
4 Highlights Q1 2024 Revenue up 4% fueled by higher revenue from RV and Housing & Sportech acquisition • RV end market revenue increased 15%, partially due to a 9% improvement in wholesale unit shipments as dealers begin to prep for the prime selling season • Acquisition of Sportech, LLC, which clos
Slide 5: Performance by End Market Q1 2024
Performance by End Market 5 Q1 2024
Slide 6: RV remains our largest end market
RV remains our largest end market and we are poised and ready to support OEMS through model year change as they collaborate with dealers to showcase coming exciting product innovations. 6 $421M REVENUE % OF Q1 SALES 45% WHOLESALE SHIPMENTS 2 CPU1 $4,859 85,900 $- $1,000 $2,000 $3,000 $4,000 $5,000 $
Slide 7: Our Marine presence continues to deliver innovation and value-added products
$- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 CONTENT PER UNIT 1,2 Our Marine presence continues to deliver innovation and value-added products to our OEM and aftermarket customers. Given the significant impact of interest rates, OEMs and dealers remain cautious. 7 $155M REVENUE % OF Q1 SALES 17% EST
Slide 8: Sportech acquisition solidifies our Powersports platform
The acquisition of Sportech solidifies our Powersports platform, supporting future organic and strategic growth. This platform enables expansion of our full solutions model and further diversifies our end market exposure. 8 $83M REVENUE % OF Q1 SALES 9% SOLID POWERSPORTS PLATFORM Q1 2024 MARINE POWE
Slide 9: Housing business supplies component solutions to Manufactured Housing
$- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 CONTENT PER UNIT 1,2 Our housing business supplies component solutions to the Manufactured Housing (MH) industry and residential and industrial customers. Our foundation is built on scalability and our customer-focused strategy which enables
Slide 10: End market trends: Powersports, Marine, RV, Housing
Q1 2024 POWERSPORTS Utility and side-by-side market remains resilient compared to broader powersports category OEM and supplier innovation continues to drive improved utility of units in the space and customer demand MARINE Industry continues to invest in higher-engineered products and accessories t
Slide 11: Financial Performance Q1 2024
Financial Performance 11 Q1 2024 Net Sales increased 4%, driven by higher RV and Housing revenue coupled with the acquisition of Sportech, which more than offset lower revenue from our marine end market Gross margin improved 30 basis points Y/Y, driven by operational efficiencies including labor and
Slide 12: Fiscal Year 2024 Outlook
Operating Margin 7.5% Up 30 to 50 bps3 Operating Cash Flows $409M $390M - $410M Free Cash Flow $350M $310M+ RV Wholesale Unit Shipments (RVIA) 313K 320K – 340K RV Retail Unit Shipments1 380K Down 5 – 10% Marine Wholesale Powerboat Unit Shipments1 192K Down 10 - 15% Marine Retail Powerboat Unit Shipm
Slide 13: Balance Sheet and Liquidity
Balance Sheet and Liquidity 13 COVENANTS AND RATIOS1 DEBT STRUCTURE AND MATURITIES NET LEVERAGE1 ($ millions) LIQUIDITY ($ millions) • $150.0M Term Loan ($127.5M o/s), scheduled quarterly installments; balance due August 2027 • $775.0M ($375.0M o/s) Senior Secured Revolver, due August 2027 • $300.0M
Slide 14: Appendix
Appendix 14
Slide 15: Non-GAAP Reconciliation
Non-GAAP Reconciliation 15 RECONCILIATION OF NET LEVERAGE* RECONCILIATION OF NET INCOME TO EBITDA TO PRO FORMA ADJUSTED EBITDA FOR THE TRAILING TWELVE MONTHS -Earnings before interest, taxes, depreciation and amortization (“EBITDA”), Pro-Forma Adjusted EBITDA, and Net Debt to Pro-Forma Adjusted EBIT
Slide 16: Non-GAAP Reconciliation (Continued)
Non-GAAP Reconciliation (Continued) RECONCILIATION OF ADJUSTED NET INCOME -Earnings before interest, taxes, depreciation and amortization (“EBITDA”), Pro-Forma Adjusted EBITDA, and Net Debt to Pro-Forma Adjusted EBITDA are non- GAAP financial measures. In addition to reporting financial results in a