Patrick Industries, Inc. · NASDAQ:PATK
Patrick Industries — Investor Presentation (September 2022)
29 slides from Patrick Industries's investor presentation, Sep 8, 2022
Slide 1: Investor Presentation September 2022
September 2022 Investor Presentation 1 Investor Presentation September 2022
Slide 2: Forward Looking Statements
September 2022 Investor Presentation 2 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 Lit
Slide 3: Patrick at a Glance: Q2'22 TTM Highlights
September 2022 Investor Presentation 3 Q2’22 TTM Highlights Team members 12,000+ Years of Success 63 Facilities 250+ Q2’22 TTM Revenue $5.0B Diluted EPS $14.401 Pro-Forma Adjusted EBITDA $713M2 Liquidity $346M Total Net Leverage 1.9x3 Strong portfolio unifies historically fragmented markets Investme
Slide 4: End markets: RV, Marine, Manufactured Housing, Industrial
September 2022 Investor Presentation 4 Fulfilling customer visions of interior and exterior dream homes Nationwide manufacturing and distribution footprint allows Patrick to provide products to entire U.S. more efficiently than other competitors Aligned with long-term secular growth in housing
Slide 5: Our Story
September 2022 Investor Presentation 5 $308 $437 $595 $736 $920 $1,222 $1,636 $2,263 $2,337 $2,487 $4,078 $5,026 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 LTM $8 $28 $24 $31 $42 $56 $86 $120 $90 $97 $225 $348 $21 $37 $53 $71 $106 $122 $166 $248 $240 $293 $531 $713 $0.37 $1.17 $0.99 $1.2
Slide 6: Strong Trajectory of Net Sales and Adj. EBITDA
September 2022 Investor Presentation 6 17.1% 18.4% 18.1% 18.5% 19.6% 21.0% 12.2% 12.4% 10.7% 13.1% 13.0% 14.2% STRONG TRAJECTORY OF NET SALES AND ADJ. EBITDA NET SALES GROWTH ($M) & GROSS MARGIN NET INCOME ($M) & DILUTED EPS PRO-FORMA ADJ. EBITDA1 ($M) AND MARGIN $1,636 $2,263 $2,337 $2,487 $4,078 $
Slide 7: Continuing to Strengthen Patrick Portfolio
September 2022 Investor Presentation 7 Sales Composition as % of Revenue 69%11% 13% 7% 2017 RV Ind. $5.0B Revenue Grew by $3.4 Billion in Five Years 2017 Q2’22 TTM Δ Net Sales $1.6B $5.0B + $3.4B Gross Margin 17.1% 21.0% + 390 bps Pro Forma Adj. EBITDA Margin 12.2% 14.2% + 200 bps Pro Forma Adj. EBI
Slide 8: Boat, RV and Macro Ownership Trends
September 2022 Investor Presentation 8 Boat Ownership RV Ownership Macro Ownership 263,294 275,103 273,020 290,396 315,362 2017 2018 2019 2020 2021 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 3.7% 4.2% 3.4% 0% 1% 2% 3% 4% 5% GDP Reta
Slide 9: Capital Allocation Strategy
September 2022 Investor Presentation 9 Historical Capital Allocation $ in millions 2017 2018 2019 2020 2021 Q2 ‘22 TTM Operating Cashflow: $100M $200M $192M $160M $252M $248M Total Net Leverage1: 1.8x 2.4x 2.3x 2.4x 2.3x 1.9x Liquidity2: $163M $412M $551M $315M $532M $346M Deploy strong cash flows t
Slide 10: Strong Liquidity Profile
September 2022 Investor Presentation 10 STRONG LIQUIDITY PROFILE Pro Forma Liquidity3 ($M) Total Revolver Credit Capacity $775.0 Less: Total Revolver Used4 (including outstanding letters of credit) (280.6) Unused Credit Capacity 494.4 Add: Cash on Hand4 77.0 Total Available Liquidity $571.4 Highligh
Slide 11: Leisure Lifestyle
September 2022 Investor Presentation 11 Retail Wholesale 237,637 FY 2020 163,669 Marine Retail channel replenishing Significant OEM backlogs remain New buyer traffic and activity remain strong Completed 32 Leisure Lifestyle acquisitions since 2018 LEISURE LIFESTYLE 1 National Marine Manufact
Slide 12: Marine
September 2022 Investor Presentation 12 MARINE TTM Marine Net Sales ($M) TTM Content Per Unit MARINE arket Insights Significant OEM backlogs remain New buyer traffic and activity remain strong Dealer inventories continue to be at low levels Supply chain visibility continues Key Customers Pri
Slide 13: RV
September 2022 Investor Presentation 13 MARINE RV arket Insights Key Customers Prioritization Future Outlook Towable inventories at normalizing levels New buyer traffic remains strong Expecting a return to normal seasonal patterns in late 2022 Strong spring and summer selling season RV remai
Slide 14: Housing & Industrial
September 2022 Investor Presentation 14 Key Highlights Limited availability of housing is a positive indicator for growth Capital deployment to support capacity expansion and new product development to enhance organic growth Four acquisitions since 2018 Residential Housing Commercial Construct
Slide 15: Manufactured Housing
September 2022 Investor Presentation 15 MARINE Manufactured Housing arket Insights Key Customers Prioritization Future Outlook TTM MH Net Sales ($M) MH ASPs remain at historical highs OEM production rates building momentum Demographic trends continue to support strong demand patterns for quali
Slide 16: Industrial
September 2022 Investor Presentation 16 MARINE Industrial arket Insights Key Customers Prioritization Future Outlook TTM Industrial Net Sales ($M) Homeowners continue to spend on home upgrades & DIY projects Limited inventory fueling demand for residential construction Robust multi-family hous
Slide 17: Strategic Diversification Helps Mitigate End-Market Pressures
September 2022 Investor Presentation 17 2016 2017 2018 2019 2020 2021 2022P Patrick Net Sales ($ millions) RV Net Sales: (4%) Marine Net Sales: +9% MH/Ind. Net Sales: +6% PATK Net Sales: +3% Wholesale Shipments: Revenue of Publicly Traded Industry Leaders1 and Wholesale Shipments Industry Net Sales:
Slide 18: ESG and Sustainability
September 2022 Investor Presentation 18 Publication of first sustainability report targeted for year-end 2022 Governance In 2021, Just in our RV facilities, we Recycled and Upcycled: Over 46,000 tons of wood product 8 million pounds of plastic 11 million pounds of aluminum 1 million pounds of steel
Slide 19: Leadership with Deep Industry Experience
September 2022 Investor Presentation 19 LEADERSHIP WITH DEEP INDUSTRY EXPERIENCE Andy Nemeth CEO Jeff Rodino President Jake Petkovich CFO Kip Ellis COO 30 years Industry experience 28 years Industry experience 26 years Industry experience 25 years Industry experience 100+ years of industry experie
Slide 20: Growth Engine
September 2022 Investor Presentation 20 Cross-pollinate sales across customers and market sectors Leading market position in key product categories Long-term secular growth across all end markets & favorable demographics Expand into new geographic regions New product development and product line ext
Slide 21: Appendix
September 2022 Investor Presentation 21 Appendix
Slide 22: Non-GAAP Reconciliations
September 2022 Investor Presentation 22 NON-GAAP RECONCILIATIONS Reconciliation of Net Income to Adj. EBITDA & Pro-Forma Adj. EBITDA Net Sales $1,222 $1,636 $2,263 $2,337 $2,487 $4,078 $5,026 Adj. EBITDA Margin (%) 11.3% 12.2% 12.4% 10.7% 13.1% 13.0% 14.2% Fiscal Year Ended December 31, TTM ended Ju
Slide 23: End Market Categories
September 2022 Investor Presentation 23 END MARKET CATEGORIES Single-Section Homes Multi-Section Homes ASP: $71,600 | 45% of Market ASP: $129,800 | 55% of Market TOWABLE Shipments: 91% Wholesale | 68% Retail Value MOTORIZED Shipments: 9% Wholesale | 32% Retail Value Travel Trailer | ASP: $28,300 Fif
Slide 24: Key Product Categories
September 2022 Investor Presentation 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 La
Slide 25: Patrick Product Lines: RV Exterior
September 2022 Investor Presentation 25 PATRICK PRODUCT LINES: RV EXTERIOR Additional Supplied Products Softwoods Full Body Paint Aluminum Gauges Steel Gauges Mill Finish & Pre-painted Aluminum and Steel Slit & Embossed Steel FRP Coil & Sheet Trim Panels Fuel Systems Metal Extrus
Slide 26: Patrick Product Lines: RV Interior
September 2022 Investor Presentation 26 PATRICK PRODUCT LINES: RV INTERIOR Additional Supplied Products Exit Lighting Power Cords & Inlets RV Tank Heater Pads Fire Extinguishers Electric Fireplaces Wiring, Electrical & Plumbing Inverters Tire Pressure Monitors Electrical Switches,
Slide 27: Patrick Product Lines: Marine
September 2022 Investor Presentation 27 PATRICK PRODUCT LINES: MARINE Additional Supplied Products Softwoods Full Body Paint Aluminum Gauges Steel Gauges Mill Finish & Pre-painted Aluminum and Steel Slit & Embossed Steel FRP Coil & Sheet Trim Panels Fuel Systems Metal Extrusions
Slide 28: Patrick Product Lines: Manufactured Housing
September 2022 Investor Presentation 28 PATRICK PRODUCT LINES: MANUFACTURED HOUSING Additional Supplied Products Softwoods Full Body Paint Aluminum Gauges Steel Gauges Mill Finish & Pre-painted Aluminum and Steel Slit & Embossed Steel FRP Coil & Sheet Trim Panels Fuel Systems Met
Slide 29: www.patrickind.com
September 2022 Investor Presentation 29 www.patrickind.com
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