Slide 1: Q3 2024 Earnings Presentation
Q3 2024 Earnings Presentation October 31, 2024
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: Diversification Journey Continues
3 $ in millions, except per share data FY 2019 Q3’24 TTM Δ Wholesale RV Shipments 406,070 331,465 (18)% Total Net Sales $2,337 $3,651 +56% Total RV Sales $1,287 $1,620 +26% Total Marine Sales* $329 $596 +81% Total Housing Sales $721 $1,137 +58% Total Powersports Sales* - $298 NM Gross Margin 18.1% 2
Slide 4: Highlights Q3 2024
4 Highlights Q3 2024 Revenue up 6% y/y, driven by ongoing recovery in MH market and acquisitions completed in 2024 • RV revenue down 1%, reflecting the continued shift in demand toward lower-priced units • Marine revenue declined 21% y/y as OEMs worked aggressively to appropriately manage dealer inv
Slide 5: Performance by End Market Q3 2024
Performance by End Market Q3 2024
Slide 6: RV end market performance
RV revenue fell 1% y/y as a result of dealers’ desire to carry smaller, less expensive units despite a modest increase in shipments. Dealer inventory levels remain below the historical average, increasing the potential for a future restock. Our Q3’24 acquisition of RecPro significantly expands our p
Slide 7: Marine end market performance
$- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 CONTENT PER UNIT 1,2 7 $136M REVENUE % OF Q3 SALES 15% ESTIMATED WHOLESALE SHIPMENTS 2 ESTIMATED CPU 1,2 $3,936 31,900 1 CPU = Content per wholesale unit for the trailing twelve-month period | 2 Company estimates based on data published by National Marine
Slide 8: Powersports end market performance
We remain well positioned to supply premium component solutions to the Powersports market following the Sportech acquisition. Powersports OEMs are becoming increasingly focused on inventory destocking and tightening production levels. 8 $87M REVENUE % OF Q3 SALES 10% SOLID POWERSPORTS PLATFORM Q3 20
Slide 9: Housing end market performance
$- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 CONTENT PER MH UNIT 1,2 Our Housing businesses continue to support the resilience of our model and diversification strategy. Demand for affordable housing continues to exceed supply. Lower interest rates have the potential to improve housing
Slide 10: End market outlook: Powersports, Marine, RV
Q3 2024 POWERSPORTS Utility-focused vehicles have been more resilient than the recreational segment Improved functionality and innovation drive more favorable demand for utility side-by-side vehicles Major OEMs have announced ongoing targeted dealer inventory reduction efforts MARINE Dealers and OEM
Slide 11: Financial Performance Q3 2024
Financial Performance 11 Q3 2024 NET SALES & GROSS MARGIN $919$866 Q3 2023 Q3 2024 23.1%23.0% Powersports Housing Marine RV $71 $74 OPERATING INCOME & MARGIN 8.1%8.2% Q3 2023 Q3 2024 $1.81 $1.80 DILUTED EPS Q3 2023 Q3 2024 YTD ADJUSTED DILUTED EPS 1 Q3 2023 Q3 2024 ($ in millions, except per share d
Slide 12: Shipments and End Market Data
Shipments and End Market Data1 RETAILWHOLESALE 97,600 77,800 (8)% YoY +6% YoY RV2 RETAILWHOLESALE 45,000 31,900 (8)% YoY (23)% YoY MARINE2 WHOLESALE 26,500 +17% YoY MH2 MULTIFAMILYSINGLE FAMILY 105 259 (11)% YoY (1)% YoY HOUSING STARTS3 73,300 106,100 41,600 49,100 22,800 258 12 Q3 2024 Q3’23 Q3’24
Slide 13: Balance Sheet and Liquidity
Balance Sheet and Liquidity 13 COVENANTS AND RATIOS1 DEBT STRUCTURE AND MATURITIES NET LEVERAGE1 ($ in millions) LIQUIDITY ($ in millions) • $150.0M Term Loan ($125.6M o/s), scheduled quarterly installments; balance due August 2027 • $775.0M ($365.0M o/s) Senior Secured Revolver, due August 2027 • $
Slide 14: Fiscal Year 2024 Outlook
Adjusted Operating Margin 2 7.5% Down 20 to 30 bps Flat to up 20 bps Operating Cash Flows $409M $370M - $390M $390M - $410M Free Cash Flow $350M $295M+ $310M+ RV Wholesale Unit Shipments (RVIA) 313K 320K - 330K Unchanged RV Retail Unit Shipments3 380K Down 8 - 10% Down 5 – 10% Marine Wholesale Power
Slide 15: Appendix
Appendix
Slide 16: Quarterly Revenue by End Market – 2023
Quarterly Revenue by End Market – 2023 1 ($ in millions) Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 RV $367.0 $383.6 $400.1 $352.7 $1,503.3 Marine $238.0 $226.3 $171.7 $146.6 $782.6 Powersports $32.8 $36.5 $28.8 $23.9 $122.0 Housing $262.4 $274.3 $265.5 $258.0 $1,060.2 Total $900.1 $920.7 $866.1 $781.2 $3
Slide 17: Non-GAAP Reconciliation
Non-GAAP Reconciliation 17 RECONCILIATION OF NET INCOME TO EBITDA TO PRO FORMA ADJUSTED EBITDA FOR THE TRAILING TWELVE MONTHS -Earnings before interest, taxes, depreciation and amortization (“EBITDA”), Pro-Forma Adjusted EBITDA, and Net Debt to Pro-Forma Adjusted EBITDA are non- GAAP financial measu
Slide 18: Non-GAAP Reconciliation: Free Cash Flow
($ in millions) 9M 2024 Cash Flows from Operations $224.2 Less: Purchases of Property, Plant and Equipment (50.3) Free Cash Flow $173.9 Non-GAAP Reconciliation (Continued) -Earnings before interest, taxes, depreciation and amortization (“EBITDA”), Pro-Forma Adjusted EBITDA, and Net Debt to Pro-Forma
Slide 19: Non-GAAP Reconciliation (Continued)
Non-GAAP Reconciliation (Continued) -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 accordance with accounting principles g