Slide 1: Q4 2024 Earnings Presentation
Q4 2024 Earnings Presentation February 6, 2025
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 FY 2024 Δ Wholesale RV Shipments 406,070 333,733 (18)% Wholesale Marine Shipments 1 189,945 143,850 (24)% Total Net Sales $2,337 $3,716 +59% Total RV Revenue $1,287 $1,625 +26% Total Marine Revenue* $329 $571 +74% Total Housing Revenue $721 $1,168 +62%
Slide 4: Highlights Q4 2024
4 Highlights Q4 2024 Net sales grew 8% y/y as a result of acquisitions, a 12% increase in Housing revenue and market share gains • RV revenue improved 1% y/y in Q4 as dealers began to restock their lots for the upcoming selling season • Marine revenue declined 17% y/y as a result of softer demand in
Slide 5: Performance by End Market Q4 2024
Performance by End Market Q4 2024
Slide 6: RV market performance Q4 2024
Our analysis suggests RV inventory is lean, which presents an opportunity for inventory restocking for the upcoming selling season. Retail demand continues to focus on smaller, more affordable units. We expect dealers to closely monitor the retail environment throughout the year and manage inventory
Slide 7: Marine market performance Q4 2024
$- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 CONTENT PER UNIT 1,2 7 $122M REVENUE % OF Q4 SALES 14% ESTIMATED WHOLESALE SHIPMENTS 2 ESTIMATED CPU 1,2 $3,967 31,300 1 CPU = Content per wholesale unit for the full year | 2 Company estimates based on data published by National Marine Manufacturers Asso
Slide 8: Powersports market performance Q4 2024
In collaboration with dealers, OEMs targeted inventory reductions in an effort to keep product innovation and inventory updated. Utility and premium segments of the market outperformed the more discretionary recreation segment. 8 $78M REVENUE % OF Q4 SALES 9% SOLID POWERSPORTS PLATFORM Q4 2024 MARIN
Slide 9: Housing market performance Q4 2024
$- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 CONTENT PER MH UNIT 1 Our Housing businesses remain a cornerstone of our resilient model and diversification strategy. The demand for affordable housing continues to outpace supply, and improved consumer confidence, among other factors, coul
Slide 10: Q4 2024 end market commentary
Q4 2024 POWERSPORTS Disciplined OEM production has been instrumental toward the calibration of dealer inventory Supporting OEMs by engineering new products and solutions to drive consumer upgrades Utility segment of the market is continuing to show resilience compared to the recreation space MARINE
Slide 11: Financial Performance Q4 2024
Financial Performance 11 Q4 2024 NET SALES & GROSS MARGIN $846$781 Q4 2023 Q4 2024 22.1%22.9% Powersports Housing Marine RV OPERATING INCOME & MARGIN 4.7%7.3% Q4 2023 Q4 2024 DILUTED EPS Q4 2023 Q4 2024 ADJUSTED DILUTED EPS 1 Q4 2023 Q4 2024 ($ in millions, except per share data) $0.52 $0.94 ADJUSTE
Slide 12: 2024 Financial Performance
2024 Financial Performance 12 NET SALES & GROSS MARGIN $3,716$3,468 2023 2024 22.5%22.6% Powersports Housing Marine RV OPERATING INCOME & MARGIN 6.9%7.5% 2023 2024 DILUTED EPS 2023 2024 ADJUSTED DILUTED EPS 1 2023 2024 ($ in millions, except per share data) $4.34$4.34 ADJUSTED OPERATING MARGIN 1 202
Slide 13: Shipments and End Market Data
Shipments and End Market Data RETAILWHOLESALE 63,600 77,300 +1% YoY +3% YoY RV RETAILWHOLESALE 18,600 31,300 (7)% YoY (20)% YoY MARINE WHOLESALE 25,900 +15% YoY MH MULTIFAMILYSINGLE FAMILY 101 239 (9)% YoY (5)% YoY HOUSING STARTS 75,000 62,900 38,900 20,000 22,500 227 Q4’23 Q4’24 Q4’23 Q4’24 Q4’23 Q
Slide 14: Balance Sheet and Liquidity
Balance Sheet and Liquidity 14 COVENANTS AND RATIOS1 DEBT STRUCTURE AND MATURITIES NET LEVERAGE1 ($ in millions) LIQUIDITY ($ in millions) • $125.0M Term Loan ($123.4M o/s), scheduled quarterly installments; balance due October 2029 • $875.0M ($100.0M o/s) Senior Secured Revolver, due October 2029 •
Slide 15: Fiscal Year 2025 Outlook
Operating Margin 7.2% 2 Up 70 to 90 bps Unchanged Operating Cash Flows $327M $390M - $410M Unchanged Capital Expenditures $76M $75M - $85M Unchanged Free Cash Flow $251M $305M+ Unchanged RV Wholesale Unit Shipments (RVIA) 334K ~350K Unchanged RV Retail Unit Shipments3 353K Flat Unchanged Marine Whol
Slide 16: Appendix
Appendix
Slide 17: Quarterly Revenue by End Market – 2023
Quarterly Revenue by End Market – 2023 1 ($ 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 $3
Slide 18: Non-GAAP Reconciliation
Non-GAAP Reconciliation – Earnings before interest, taxes, depreciation and amortization (“EBITDA”), pro forma adjusted EBITDA, and net debt to pro forma adjusted EBITDA are non- GAAP financial measures. In addition to reporting financial results in accordance with accounting principles generally ac
Slide 19: Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA
($ in millions) 2024 2019 Net income $138 $90 + Interest expense 80 37 + Income Taxes 40 28 + Depreciation & amortization 167 63 EBITDA $425 $218 + Stock compensation 17 15 + Acquisition related transaction costs 5 - + Acquisition related fair-value inventory step-up 3 - + Loss on extinguishment of