Patrick Industries, Inc. · NASDAQ:PATK
Patrick Industries — Investor Presentation (September 2021)
29 slides from Patrick Industries's investor presentation, Sep 14, 2021
Slide 1: Investor Presentation September 2021
INVESTOR PRESENTATION September 2021 == J PATRICK
Slide 2: Forward Looking Statements
2 This presentation contains certain statements related to future results, our intentions, beliefs and expectations or predictions for the future which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements inv
Slide 3: Patrick Industries Snapshot
3 Patrick Industries Snapshot (NASDAQ: PATK) Net Sales $3.3B Operating Cash Flow $200M Liquidity $468M1 Adjusted EBITDA $451M2 Free Cash Flow $152M3 Total Net Leverage 2.3x4 Q2’2021 LTM Highlights 1959 Founding 10,000+ Team Members $2.0B Market Cap 70+ Brands Value Proposition Strong portfolio unifi
Slide 4: Strong Portfolio Unifies Historically Fragmented Markets
4 Marine MH IndustrialRV Diversified Market Platform Strong Portfolio Unifies Historically Fragmented Markets ✓ Record OEM backlogs ✓ Dealer inventories at lowest level seen in years ✓ New buyer traffic remains strong ✓ Persistent strength in retail demand coupled with depleted channel inventories p
Slide 5: Scaled and Diversified Value-added Player Across Multiple End Markets
59% 15% 15% 11% 1 Q2’21 LTM EBITDA includes pro forma acquisition adjustments | 2 Calculated as operating cash flow less capex |3As of 12/31/2016 and 8/30/21, respectively | 4 Actual # of employees Scaled and Diversified Value-added Player Across Multiple End Markets 2016 Q2’21 LTM Δ Net Sales $1.2B
Slide 6: Leisure Lifestyle
36,072 90,003 79,177 29,504 48,069 89,517 45,804 36,565 39,692 41,085 49,739 47,778 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Key Highlights ✓ Retail channel continues to be depleted at a remarkable rate ✓ Record OEM backlogs ✓ New buyer traffic and activity remain strong ✓ Completed 22 Leisure Lifestyle
Slide 7: Marine: Competitive Advantage
Competitive Advantage ✓ Geographically situated to provide JIT inventory management to OEMs ✓ Fully integrated into manufacturers’ design process ✓ Highly engineered and specialized products offer differentiated solutions to OEMs ✓ Growing aftermarket platform including the following brands: 1 LTM a
Slide 8: RV: Competitive Advantage
Competitive Advantage ✓ Largest OEMs rely on Patrick for high degree of content ✓ Breadth of offering to provide packaged solutions that competitors cannot ✓ Our extensive supply chain fuels the explosive growth in the leisure lifestyle markets RV Net Sales ($M) Content Per Unit $879 $1,128 $1,437 $
Slide 9: Housing & Industrial
A wide range of components related to residential housing, commercial and institutional markets Residential Housing Commercial Construction Fixtures Furniture 9 Key Highlights ✓ Demand from big box retailers remains as homeowners continue spending on home upgrades ✓ Limited availability of housing a
Slide 10: Manufactured Housing: Competitive Advantage
Competitive Advantage ✓ Capable of leveraging production capabilities in other end markets ✓ Low-cost supplier of multiple products ✓ Full range of product offerings allows Patrick to supply across the entire value chain ✓ Nationwide manufacturing and distribution footprint allows Patrick to provide
Slide 11: Industrial: Competitive Advantage
59% 15% 15% 11% Competitive Advantage ✓ “One stop shop” for customers with our diverse manufacturing capabilities ✓ Full range of product offerings allows Patrick to supply across the entire value chain ✓ Home improvement and DIY activity driven by work from anywhere environment Industrial Net Sales
Slide 12: Leadership with Deep Industry Experience
12 Andy Nemeth CEO Jeff Rodino President Kip Ellis EVP Operations & COO Jake Petkovich CFO Industry Experience: 29 years 27 years 24 years 25 years Driving Patrick to Be a Leading Diversified Player Across its End Markets ✓ 100+ years of industry experience spanning across multiple economic cycles ✓
Slide 13: M&A Criteria and Filters for Successful Strategic Investments
Strong Leadership Team and Cultural Fit Executable Cost and Revenue Synergies Geographic / Market Expansion Market Leadership Adjusted EPS Accretion in First Full Year ROIC > Cost of Capital Accretive to Profit Margins and Revenue Growth Strategic Criteria M&A Criteria and Filters for Successful Str
Slide 14: End Market Demand Trends
11.2 11.2 11.2 9.6 9.6 10.9 0 5 10 15 20 25 30 35 2020 2025 2026+ RV Owners 5 Year Intenders 6+ Year Intenders 14 • More than 1/3 of those who have purchased new and pre-owned powerboats in 2020 were first-time boat buyers • 70% of people who have the desire to purchase a boat take less than a year
Slide 15: ESG Current & Upcoming Initiatives
15 Environmental Social Governance • Wood dust being reclaimed into materials used for pellets supplying heating processes • Rolling out a corporate campaign making our building more sustainable through minimizing paper, improving our recycling system • Pioneer Partner for Care Camps • Supporting nu
Slide 16: Strong Trajectory of Net Sales and Adj. EBITDA
$56 $86 $120 $90 $97 $182 2016 2017 2018 2019 2020 LTM $2.43 $3.48 $4.93 $3.85 $4.20 $7.81 16 Profitability Driven by Growth in Investment and Higher Margin Products and Leveraging of Fixed Costs Strong Trajectory of Net Sales and Adj. EBITDA $138 $200 $280 $250 $326 $451 $0 $50 $10 0 $15 0 $20 0 $2
Slide 17: Strong Liquidity Profile
17 2.0x 1.8x 2.4x 2.3x 2.4x 2.3x 2016 2017 2018 2019 2020 LTM 6/27/21 Net Debt / Adjusted EBITDAHighlights 6/27/21 LTM Return on Assets 9.5% Accounts Receivable Turnover 16.4x Inventory Turnover 8.1x Current Ratio 2.3x Avg. Cash Conversion Cycle 49.3 Days No Major Debt Maturities Until 2023 Liquidit
Slide 18: Robust Free Cash Flow Generation
18 1 Total Leverage =Net Debt/ Adj. EBITDA $138 $200 $280 $250 $326 $450 $82 $78 $166 $164 $128 $152 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% $0 $100 $200 $300 $400 $500 2016 2017 2018 2019 2020 LTM 6/27/21 Adj. EBITDA Free Cash Flow Total Leverage $11 $18 $30 $21 $28$4 $4 $4 $7 $4 Growth Capex Maintenan
Slide 19: Prudent Capital Allocation and Conservative Leverage
1 Total Leverage = Net Debt / Adj. EBIDTA | 2 Liquidity defined as Revolver availability (net of outstanding Letters of Credit) plus Cash and Cash Equivalents Total Leverage1: 2.0x 1.8x 2.4x 2.3x 2.4x Liquidity2: $174M $163M $412M $551M $315M Capital Allocation Strategy Deploy strong cash flows to h
Slide 20: Invest With Us
Execute on strategic acquisitions in primary markets New product development and product line extensions Expand into new geographic regions Long-term secular growth across all end markets & favorable demographics Leading market position in key product categories Cross-pollinate sales across customer
Slide 21: Appendix
Appendix
Slide 22: Non-GAAP Reconciliations
Fiscal Year Ended December 31, LTM 06/27/212016 2017 2018 2019 2020 Net Income $56 $86 $120 $90 $97 $182 + Interest Expense 7 9 26 37 43 47 + Income Taxes 28 27 32 28 33 57 + Depreciation and Amortization 24 33 55 63 71 85 EBITDA $115 $155 $233 $218 $244 $371 Net Sales $1,222 $1,636 $2,263 $2,337 $2
Slide 23: End Market Product Categories
Single-Section Homes Multi-Section Homes ASP: $53,200 | 45% of Market ASP: $104,000 | 55% of Market 23 TOWABLE Shipments: 91% Wholesale | 68% Retail Value MOTORIZED Shipments: 9% Wholesale | 32% Retail Value Travel Trailer | ASP: $25,500 Fifth Wheel | ASP: $54,900 Class A | ASP: $206,400 Class B & C
Slide 24: Key Product Categories
Fiberglass and Plastic Thermoformed Helm Systems Wiring and Wire Harnesses Electrical Systems and Components Fabricated Aluminum and Steel Components Boat Covers, Towers, Tops and Frames Anchoring, Docking and Boarding Vinyl and Paper Laminated Products Surface, Granite and Quartz Countertops Vinyl,
Slide 25: Patrick Product Lines: RV Exterior
25 Exterior Speakers Paint & Paint Mask LED Lighting Aluminum & FRP Side Walls Laminated Side Walls Motion Sensing Lights RV Grills & Accessories Front & Rear Caps Bow Trusses Dash Panels Fender Skirts RV Power Cords & Inlets Roof Coating Solar Panels Butyl & Putty Tape Lithium Batteries LP Tanks Ad
Slide 26: RV Interior Product Lines
26 Hardwood Accessories Window Trim Slide Trim – Foam, Hardwood, Wrapped Under Cabinet Lighting Tile Cabinet Hardware Drawer Fronts & Sides Speakers Electronics Closet Hardware Closet & Passage Doors Lighting Mattresses Fiberglass Bath Fixtures & Shower Doors Vanity/Wall Mirrors Microwaves Laminate
Slide 27: Patrick Product Lines: Marine
27 Aluminum / Plastic Fuel & Holding Tanks Wire Harnesses Electronics Dash Assemblies Wire Screens Helms Aluminum / Plastic Fuel & Holding Tanks Boat Hull Design & Tooling Wire Harnesses Dash Assemblies Electronics Boat Covers, Tops, Towers & Frames Ladder Chairs & Pedestals Rub Rails Bow Rail Floor
Slide 28: Housing Product Lines
28 Interior Passage Doors Kitchen & Bath Faucets & Sinks Gypsum (Drywall & Drywall Finishing Products) Laminate & Ceramic Flooring Fiberglass Bath Fixtures & Shower Doors & Enclosures Cabinet Doors & Components Microwaves Countertops Electronics Siding Shingles o Ventilation System & Ridge Cap o Fel
Slide 29: Patrick Industries, Inc.
w PATRICK | | https://www.facebook.com/PatrickIndustries/ https://www.instagram.com/patrickindustries/?hl=en in} Patrick Industries, Inc. PATRICKIND.COM
Patrick Industries — Investor Presentation (September 2021) on 6ix