Slide 1: Drew Industries Incorporated
EXHIBIT 99.1 Drew Industries Incorporated (NYSE: DW) A Leading National Supplier of a Wide Variety of Components for RVs and Manufactured Homes
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation 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 posi
Slide 3: Section I: Overview
SECTION I Overview
Slide 4: Drew's Products – Components for RVs and Manufactured Homes
Drew’s Products – Components for RVs and Manufactured Homes $608 Million of Net Sales for the12 Months Ended June 30, 2011 RV Furniture and Mattresses: $58 million RV Chassis, Slide-outs and Other Chassis Parts: $279 million Bath Products: $19 million MH Chassis and Chassis Parts: $29 million Specia
Slide 5: Drew's Segments – LTM 6/2011 Net Sales
Drew’s Segments – LTM 6/2011 Net Sales - $608 million MH = $96 million 16% RV = $512 million 84% 90+% for towable RVs Segment Operating Profit - $60 million MH MH = = $ 10$4 million 16%54% MH = $10 million 16% RV = $50 million RV = $3 million 84% 46% RV = $50 million 84%
Slide 6: Financial Performance: Sales and EBITDASO
Financial Performance Sales and EBITDASO (1) (in millions) Sales RV Segment sales MH Segment sales EBITDASO EBITDASO $100 $750 $729 $669 $669 $608 $573 75 $531 $511 500 $509 $448 $492 $398 0 $353 $325 $348 $477 $512 $368 $255 250 $171 $220 $313 $108 25 $221 $220 $183 $177 $147 $154 $134 $143 $85 $96
Slide 7: Section II: Industries
SECTION II Industries
Slide 8: RV Market
RV Market TOWABLE RVS (90+% of Drew’s RV Segment revenues) Travel trailer Fifth-wheel travel trailer ? 90% of industry 2010 unit sales ? 62% of 2010 wholesale dollar sales, or $4.3 billion Travel trailer with Sport utility RV ? Retail cost $4,000 to $100,000 per expandable ends “Toy Hauler” unit. Av
Slide 9: How RVs Are Used
How RVs Are Used ? More economical family vacations › Typical RV family vacation is less expensive ? Shift in U.S. culture toward more RV-related activities › College and NFL football games › NASCAR events › More active, shorter, “greener”, & family oriented vacations
Slide 10: RVs - Industry Wholesale Shipments
RVs - Industry Wholesale Shipments 90 + % of Drew’s RV product sales are for Travel Trailers and 5 th Wheel RVs Industry Drew’s Units Sales (Units in thousands, Sales in millions) 500 $500 509 492 77 Motorhomes 448 Other Towables Travel Trailers & 5th Wheel 391 400 384 $400 Drew RV Segment Sales 370
Slide 11: Recent RV Industry Trends
Recent RV Industry Trends Travel Trailers and 5 th Wheel RVs, Drew’s primary RV market Units 300,000 All data includes both US and Canada . 275,000 Wholesale Retail 250,000 226,387 225,000 199,200 200,000 186,010 185,100 175,000 164,254 150,000 138,300 20,200 125,000 11,600 103,877 00,572 100,000 75
Slide 12: Manufactured Housing (MH) Market
Manufactured Housing (MH) Market ? Cost per sq. ft. is $41 for MH vs. $84 for site-built homes ? Average retail price of $63,100 for a 1,530 sq. ft. MH ? 9 million manufactured homes across the U.S. ? Improved quality, appearance and safety ? Studies have shown that MHs built since 1995 sustain no m
Slide 13: MH – Industry Production
MH – Industry Production Industry Drew’s Units (Units in thousands, Dollars in millions) Sales 400 Multi-Sections Single-Sect ion Drew’s MH Sales $250 373 $221 $225 350 349 $220 $196 $200 $191 300 144 123 $185 $177 $175 251 $154 250 $147 $150 $152 $142 75 200 193 $134 $125 168 49 $96 $96 $100 150 14
Slide 14: MH: Favorable Factors
MH: Favorable Factors INDUSTRY: ? Demand ― Demand for quality, affordable housing is likely to increase ― Baby boomers retiring in increasing numbers ― Dealer and manufacturer inventory levels are reasonable ? Availability of financing is still an issue DREW: ? Drew remains profitable in MH Segment:
Slide 15: Section III: Strategy
SECTION III Strategy
Slide 16: Business Strategy
Business Strategy ? Maximize profitability and return on assets through Strategic acquisitions New product introductions Market share growth Operational efficiencies Diversification to related industries ? This strategy accomplished through Outstanding customer service Motivating management through
Slide 17: Acquisition Criteria
Acquisition Criteria ? Drew is a disciplined and patient acquirer ? Gain market share or add products from other suppliers through asset acquisitions ? Seek products or technologies that we can expand through our nationwide customer base and factory network ? Become an even more extensive supplier t
Slide 18: New Product Introductions
New Product Introductions Began A CQUIRE Introduce Began Production of C OACH S TEP : RVLOCK remote Adding electric steps production of locking product axles for entry doors towable RVs for motorhomes for MH A CQUIRE H OME - A S TYLE : CQUIRE Introduce RV A CQUIRE Began Adding slide-out TRAIL AIR: p
Slide 19: What Drew Has Done - Acquisitions and Growth
What Drew Has Done -Acquisitions and Growth N ew Market New Product Potential 2008 – RV Entry Doors $ 25 million 2008/2011 – RV Furniture and Mattresses $ 150 million 2009 – Manufactured Housing (“MH”) Entry Doors $ 25 million 2009 – Focus on MH Replacement Windows $ 15 - 25 million 2010 – Level-Up™
Slide 20: Content Per New Towable RV
Content Per New Towable RV - 90+% of RV Segment sales are for Travel Trailers and Fifth-Wheel RVs - 100% market share in existing products would yield $4,500 to $5,000 per Towable RV - Growth in RV “features” drives content increases $2,229 $2,010 $1,847 $1,716 $1,542 $1,374 $1,281 $1,012 $862 $670
Slide 21: RV Segment Net Sales by Type
RV Segment Net Sales by Type LTM 6/11 - $512 Million $13 million $19 million $17 million 3% 4% 3% LTM 6/10 - $450 Million $17 million $11 million $16 million 4% 2% % $463 million 90% $406 million Travel Trailer & Fifth-Wheel - OEM 90% Motorhome – OEM Aftermarket Other Travel Trailer & Fifth-Wheel -
Slide 22: Content Per New Manufactured Home
Content Per New Manufactured Home - 100% market share in existing products would yield $3,600 to $4,000 per home - Affordability of the homes constrains content growth $1,666 $1,450 $1,429 $1,434 $1,373 $1,330 $1,333 $1,281 $871 $796 $663 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 LTM 6/11 Se
Slide 23: MH Segment Net Sales by Type
MH Segment Net Sales by Type LTM 6/11 - $96 Million $11 million 11% $18 million 19% LTM 6/10 - $95 Million 8 million $15 million 8% 16% $67 million 70% OEM Aftermarket Other OEM Aftermarket Other
Slide 24: Compensation Plans
Compensation Plans Aggregate 2010 Compensation of Key Executives By Component 33% Cash vs. Equity 53% 14% 31% 69% Performance-Based Stock Options Salary & Other Equity Cash
Slide 25: Section IV: Operating Results
SECTION IV Operating Results
Slide 26: What Drew Has Done - Cost Reductions
What Drew Has Done -Cost Reductions • Consolidated more than 35 production facilities into other existing facilities since 2006, improving operating efficiencies. • These facility consolidations, along with reductions in salaried staff, changes in insurance, IT improvements, along with other cost sa
Slide 27: Operating Results Three Months Ended June 30
Operating Results Three Months Ended June 30, F INANCIAL P ERFORMANCE ($ in millions, except EPS) 2010 2011 Change Net Sales $ 173.5 $ 186.0 7% Operating Profit $ 15.8 $ 17.9 13% % of Sales 9.1% 9.6% Net Income $ 9.6 $ 11.0 14% Diluted EPS $ 0.43 $ 0.49 14%
Slide 28: Operating Results Six Months Ended June 30
Operating Results Six Months Ended June 30, F INANCIAL P ERFORMANCE ($ in millions, except EPS) 2010 2011 Change Net Sales $ 319.7 $ 354.9 11% Operating Profit $ 28.1 $ 33.5 19% % of Sales 8.8% 9.4% Net Income $ 16.9 $ 20.4 20% Diluted EPS $ 0.76 $ 0.91 20%
Slide 29: Results By Segment Three Months Ended June 30
Results By Segment Three Months Ended June 30, F INANCIAL P ERFORMANCE ($ in millions) 2010 2011 Change Net Sales: RV Segment $ 144.3 $ 157.2 9% MH Segment $ 29.2 $ 28.8 -1% Operating Profit: RV Segment $ 14.0 $ 17.3 24% MH Segment $ 3.7 $ 3.0 -21% Operating Profit as a Percentage of Net Sales: RV S
Slide 30: Results By Segment Six Months Ended June 30
Results By Segment Six Months Ended June 30, F INANCIAL P ERFORMANCE ($ in millions) 2010 2011 Change Net Sales: RV Segment $ 268.6 $ 303.4 13% MH Segment $ 51.1 $ 51.5 1% Operating Profit: RV Segment $ 26.9 $ 32.6 21% MH Segment $ 5.3 $ 5.2 -2% Operating Profit as a Percentage of Net Sales: RV Segm
Slide 31: Net Sales Since 2007
Net Sales Since 2007 F INANCIAL P ERFORMANCE Q2 2007 – Q2 2011 ($ in millions) Q2 2007 $ 184.5 Industry-wide shipments: Travel Trailer and Fifth-Wheel RVs – 12% decline (14.2) Motorhomes – 51% decline (3.0) Manufactured Housing – 48% decline (19.2) Drew’s sales growth (1) 37.9 Q2 2011 $ 186.0 (1) In
Slide 32: What Drew Has Done - Strengthened Balance Sheet
What Drew Has Done -Strengthened Balance Sheet Cash and ($ in millions) Debt Investments Net Cash 12/31/08 $ 9 $ 9 $ -12/31/09 $ - $ 65 $ 65 12/31/10 $ - $ 44 (1) $ 44 (1) 6/30/11 $ - (3) $ 37 (2) $ 37 (2) (1) The Company completed four acquisitions in 2010 which utilized $22 million in cash. In add
Slide 33: Balance Sheet
Balance Sheet F INANCIAL P ERFORMANCE ($ in millions) 6/30/08 6/30/09 6/30/10 6/30/11 Total Assets $ 352 $ 271 $ 351 $ 354 Total Debt $ 20 $ 1 $ - $ -Cash & Investments $ 43 $ 27 $ 58 $ 37 Stockholders’ Equity $ 267 $ 227 $ 263 $ 268 (3) RATIOS Days Sales in A/R (1) 18 days 19 days 20 days 21 days I
Slide 34: Cash Flow
Cash Flow F INANCIAL P ERFORMANCE Significant non-operating items since June 30, 2007 Acquisitions (10) $76 million Debt reduction $48 million Special dividend $33 million Stock repurchases $9 million Total $ 166 million
Slide 35: Financial Strength
Financial Strength F INANCIAL P ERFORMANCE 12/31/08 12/31/09 12/31/10 6/30/11 Return on Equity 6% (2) 2% (3) 11% 12% Return on Assets 4% (2) 2% (3) 9% 9% Total Debt to Equity 0.0 0.0 0.0 0.0 Total Debt to EBITDA (1) 0.2 0.0 0.0 0.0 (1) EBITDA is operating profit plus depreciation, amortization and g
Slide 36: The Future
The Future ? Increasing RV Content ? RV recovery from recession ? Demographic tailwind ? Exploring similar industries ? Affordable housing recovery
Slide 37: Stock Price History
Stock Price History Drew has 22 million shares outstanding and a market capitalization of approximately $430 million as of August 2, 2011 50 $44 45 40 35 $28 30 25 $23 $27 $26 $21 $19 20 $18 15 $14 $12 10 $5 $3 $8 5 $6 0 2000 2001 2002 2003 2004 2005 2006 2007 10/5/07 2008 3/9/09 2009 2010 8/2/11 (D
Slide 38: Analyst Coverage
Analyst Coverage Avondale Partners, LLC Bret Jordan – (617) 314-0487 CJS Securities Torin Eastburn – (914) 287-7600 Sidoti & Company, LLC Scott Stember – (212) 453-7017 Thompson Research Group Kathryn Thompson – (615) 891-6206
Slide 39: Thank you!
Thank you! For more information contact: Fredric M. Zinn Joseph S. Giordano III President and CEO CFO & Treasurer 914-428-9098 914-428-9098 fred@drewindustries.com joe@drewindustries.com OR VISIT OUR WEBSITE: www.drewindustries.com
Slide 40: Reconciliation of Operating Profit to EBITDA and EBITDASO
Reconciliation of Operating Profit to EBITDA and EBITDASO F INANCIAL P ERFORMANCE TM ($ in millions)` 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 6/30/11 Operating $ 20.3 $ 29.2 $ 34.3 $ 44.0 $ 57.7 $ 55.3 $ 66.0 $ 19.9 $ (35.6) $ 45.2 $ 50.8 Profit (Loss) Depreciation & $ 8.4 $ 7.3 $ 7.8 $ 9.
Slide 41: Reconciliation of Segment Results to Consolidated
Reconciliation of Segment Results to Consolidated F P INANCIAL ERFORMANCE ($ in millions) 12 Months Ended 2007 2008 2009 2010 6/30/11 Net Sales: RV Segment $ 491.8 $ 368.1 $ 312.5 $ 477.2 $ 512.0 MH Segment 176.8 142.4 85.3 95.6 95.9 Total Net Sales $ 668.6 $ 510.5 $ 397.8 $ 572.8 $ 607.9 Operating