Slide 1: Q3 2021 Earnings Presentation
38 Quarter 2 2021 — Earnings Presentation | oe
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS 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 forwa
Slide 3: Patrick Industries at a Glance
VALUE PROPOSITION Experienced management team with an average of 27+ years of industry experience Leading market position in major product categories Deep customer relationships with 30+ years for top customers, including key design partners Strong Free Cash Flow (FCF) generation & FCF conversion Fa
Slide 4: Q3 2021 Highlights
1 Growth in Total Revenue of +51% Y/Y • RV / Marine driven by outdoor recreation trends, strong execution of nimble platform against very lean dealer inventory and need for channel inventory replenishment • Industrial and MH driven by housing demand, low interest rates and shift from urban to suburb
Slide 5: Q3 2021 Financial Performance
$60 $93 Q3 2020 Q3 2021 $701 $1,060 Q3 2020 Q3 2021 NET SALES OPERATING INCOME & MARGIN DILUTED EPS CASH FLOW FROM OPERATIONS Q3 2021 FINANCIAL PERFORMANCE 9.3% ($ millions except per share data) 5Q3 2021 Earnings Presentation 8.5% 8.8% • 51% increase in Net Sales driven by increased demand in each
Slide 6: Performance by Market Sectors
• Content per Unit – increased 19% to $3,735 ($ millions ) MARINE INDUSTRIAL PERFORMANCE BY MARKET SECTORS Leisure Lifestyle1 Housing and Industrial1 MH • Content per Unit – increased 66% to an estimated $3,166 • Content growth driven by market share gains, aftermarket growth and acquisitions • Cont
Slide 7: Industry Trends
Industry Trends • New buyer traffic and activity remain strong • Dealer inventories at low levels with retail units outpacing wholesale units • Substantial OEM backlogs • Persistent strength in retail demand coupled with depleted channel inventories will push out restocking cycle • Expect double-dig
Slide 8: Balance Sheet, Cash Flow and Liquidity
BALANCE SHEET, CASH FLOW AND LIQUIDITY 1 As of 9/26/21; 2 As defined by credit agreement NET LEVERAGE2 ($ millions) Total Debt Outstanding $ 1,106.0 Less: Cash on Hand1 (52.0) Net Debt $ 1,054.0 LTM Adj. EBITDA $ 480.1 Net Debt to Adj. EBITDA 2.2x LIQUIDITY ($ millions) Total Revolver Credit Capacit
Slide 9: Compelling Investment Thesis Creating Long-Term Shareholder Value
STRATEGIC ACQUISITIONS Execute on strategic acquisitions in primary markets INNOVATION New product development and product line extensions INDUSTRY GROWTH BUSINESS MODEL Flexible, high variable cost business model to drive operational efficiency and navigate through all economic conditions MARKET PO
Slide 10: Appendix
Appendix
Slide 11: Non-GAAP Reconciliations
($ in millions) LTM 9/26/2021 Net Income $ 201.7 +Depreciation & Amortization 96.6 + Interest Expense, net 52.4 + Income Taxes 65.1 EBITDA $ 415.8 + Stock Compensation Expense 22.1 + Acquisition proforma, transaction-related expenses & other 42.2 Adjusted EBITDA $ 480.1 NON-GAAP RECONCILIATIONS Use
Slide 12: Patrick Industries, Inc.
a PATRICK | £} https://www.facebook.com/Patrickindustries/ https://www.instagram.com/patrickindustries/?hl=en in| Patrick Industries, Inc. PATRICKIND.COM