Patrick Industries, Inc. · NASDAQ:PATK
Patrick Industries — Q3 2023 Earnings Presentation
10 slides from Patrick Industries's earnings presentation, Oct 26, 2023
Slide 1: Q3 2023 Earnings Presentation
October 26, 2023 Q3 2023 EARNINGS PRESENTATION
Slide 2: Forward-looking statements and non-GAAP measures
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 invol
Slide 3: Team delivered solid performance in dynamic environment driving long-term growth
TEAM DELIVERED SOLID PERFORMANCE IN DYNAMIC ENVIRONMENT DRIVING LONG-TERM GROWTH • Experienced, tested leadership team • Diverse end markets continue to support success • Solid cost control and strong balance sheet • Strategic deployment of capital BUSINESS TRANSFORMATION EVIDENT IN Q3 RESULTS 3 Q3
Slide 4: Revenue down 22% Y/Y as shipments decreased across end markets
• RV retail registrations continue to outpace declining wholesale shipments, implying continued dealer inventory reductions • Marine OEMs remained disciplined as inventories reached equilibrium at the end of Q2’23 • Housing revenue declined as consumers continue to adjust to inflationary pressures a
Slide 5: End market sales, shipments and content per unit by segment
(6%)(20%) 30% of Q3’23 Sales Revenue of $205M Revenue of $261M Industry Shipments1 Housing Starts (Y/Y)4 CPU3 of $4,957 CPU3 of $5,009 MH CPU3 of $6,498 Industry Shipments2 Manufactured Housing (“MH”) Industry Shipments2 5 (24%) (2%) +3% 24% of Q3’23 Sales46% of Q3’23 Sales Revenue of $400M (22%) +8
Slide 6: End market outlook: RV, marine and manufactured housing
MH BASKET COMPANIES2: PATK: +7% 6 • OEMs maintaining production discipline to manage dealer inventory levels • We estimate dealer inventory remains low relative to historical weeks-on-hand metrics • Dealers and OEMs are collaborating on how best to manage model year change-over • Marine inventory at
Slide 7: Q3 2023 financial results: EPS, operating income and margins
$2.43 $1.81 $93 $71 8.3% 8.2% • Net Sales declined 22%, mainly driven by a decline in shipments across our end markets and lower pricing, which was passed on to our customers to reflect changes in certain commodity costs, partially offset by market share gains • Gross margin improved 170 basis point
Slide 8: Debt, liquidity and covenants
• $150.0M Term Loan ($131.3M o/s), scheduled quarterly installments; balance due August 2027 • $775.0M ($85.0M o/s) Senior Secured Revolver, due August 2027 • $300.0M 7.50% Senior Notes, due October 2027 • $258.8M 1.75% Convertible Senior Notes, due December 2028 • $350.0M 4.75% Senior Notes, due Ma
Slide 9: Appendix
Slide 10: Reconciliation of net leverage
RECONCILIATION OF NET LEVERAGE* ($ in millions) 10/1/2023 Net Income $ 152.3 + Depreciation & Amortization 142.5 + Interest Expense, net 69.4 + Income Taxes 48.9 EBITDA $ 413.1 + Stock Compensation Expense 19.8 + Acquisition Pro-Forma, Transaction- related Expenses & Other 8.8 TTM Pro-Forma Adjusted