Slide 1: Q4 2023 Earnings Presentation
February 8, 2024 Q4 2023 EARNINGS PRESENTATION
Slide 2: Forward-looking statements and non-GAAP measures
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 forward-looking statements invol
Slide 3: Dedicated Team Drove Solid Results; Business Transformation Since 2019
DEDICATED TEAM DROVE SOLID RESULTS INVESTING IN OUR BUSINESSES • Diversification of end markets helps dampen cyclicality • Aggressive cost control, working capital management and strong balance sheet • Strategic deployment of capital • Experienced team members executing playbook through cycles BUSIN
Slide 4: Q4 revenue down 18% with strong margin and cash flow
• RV revenue declined due to lower pricing passed on to customers, mix of entry-level units and continued decline in wholesale unit shipments • Marine OEMs maintained conservative stance given dealers sensitivity to higher floorplan costs and limited visibility into consumer demand • Housing revenue
Slide 5: Results by end market: RV, Marine, Housing
+2%(3%) 33% of Q4’23 Sales Revenue of $174M Revenue of $254M Industry Shipments1 Housing Starts4 CPU3 of $4,800 CPU3 of $4,803 MH CPU3 of $6,372 Industry Shipments2 Manufactured Housing (“MH”) Industry Shipments2 5 (14%) (9%) (5%) 22% of Q4’23 Sales45% of Q4’23 Sales Revenue of $353M (2%) +2% 1 Data
Slide 6: End market outlook and trends
MH BASKET COMPANIES2: PATK: 6 • OEMs maintaining production discipline to manage dealer inventory levels • Dealers remain cautious on inventory levels given high floorplan interest rates • OEMs and suppliers are collaborating to create an innovative model-year 2025 lineup • Marine dealers impacted b
Slide 7: Fourth quarter financial results
$1.68 $1.41 $68 $57 7.1% 7.3% • Net Sales declined 18%, mainly driven by a decline in shipments across our end markets and lower pricing passed on to our customers to reflect changes in certain commodity costs • Gross margin improved 180 basis points; strategic diversification strategy, improved cos
Slide 8: FY 2024 estimates
FY ‘23 Actual FY ‘24 Estimated2 Operating Margin 7.5% Up 30 to 50 bps Operating Cash Flows $409M $390M - $400M Free Cash Flow $350M $310M+ RV Wholesale Unit Shipments 313K 330K – 350K RV Retail Unit Shipments 379K Down 5 – 10% Marine Wholesale Powerboat Unit Shipments 192K Down 5 - 10% Marine Retail
Slide 9: Covenants, debt structure, net leverage and liquidity
COVENANTS AND RATIOS1 DEBT STRUCTURE AND MATURITIES1 NET LEVERAGE2 ($ millions) LIQUIDITY1 ($ millions) 1 As of 12/31/23; 2 As defined by credit agreement Strong Balance Sheet and Favorable Capital Structure to Support Investments and Pursue Attractive Growth Opportunities • $150.0M Term Loan ($129.
Slide 10: Appendix
Slide 11: Reconciliation of net leverage and net income to EBITDA
RECONCILIATION OF NET LEVERAGE* RECONCILIATION OF NET INCOME TO EBITDA TO PRO- FORMA ADJUSTED EBITDA 11 -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 re