Slide 1: Q2 2023 Earnings Presentation
July 27, 2023 Q2 2023 EARNINGS PRESENTATION
Slide 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 Litigation Reform Act of 1995. These forward-looking statements invol
Slide 3: Q2 2023 Key Messages
TEAM PERFORMING WELL IN CHALLENGING ENVIRONMENT CONFIDENT IN STRATEGIC DIRECTION • Diversification of model has been effective • Tested leadership team and business strategy • Working capital monetization and strong cash flows TRANSFORMATION RESULTING IN MORE RESILIENT ENTERPRISE Q2 2023 KEY MESSAGE
Slide 4: Q2 2023 Quarterly Highlights
Q2 2023 QUARTERLY HIGHLIGHTS • RV OEMs maintained disciplined production levels to better align dealer inventory with end user demand • Marine inventory replenishment cycle largely complete and OEMs prudently scaling back production to ensure retail alignment • Housing revenue declined due to indust
Slide 5: Performance by Market Sectors
RV MARINE HOUSING 29% of Q2’23 Sales Revenue of $268M Revenue of $269M Industry Shipments1 Housing Starts (Y/Y)4 CPU3 of $5,051 CPU3 of $5,330 MH CPU3 of $6,411 Industry Shipments2 Manufactured Housing (“MH”) Industry Shipments2 PERFORMANCE BY MARKET SECTORS 5 (54%) +6% (44%) +15% 29% of Q2’23 Sales
Slide 6: Market Sector Trends
MH BASKET COMPANIES2: PATK: MARKET SECTOR TRENDS (14%) 6 • OEMs acting with discipline, maintaining reduced production schedules to manage dealer inventories • Model Year 2022 inventory levels continue to improve • Model Year 2024 launch ongoing • Marine inventory levels have reached equilibrium • O
Slide 7: Q2 2023 Financial Performance
Q2 2023 FINANCIAL PERFORMANCE $4.79 $1.94 $174 $76 11.8% 8.2% • Net Sales declined 38% primarily as a result of a 44% reduction in RV OEM wholesale shipments, which drove a $454M decline in our RV end market revenue • Gross margin improved 60 basis points due to improved mix of Marine revenue despit
Slide 8: Capital Structure, Liquidity and Covenants
• $150.0M Term Loan ($133.1M o/s), scheduled quarterly installments; balance due August 2027 • $775.0M ($195.0M o/s) Senior Secured Revolver, due August 2027 • $300.0M 7.50% Senior Notes, due October 2027 • $258.8M 1.75% Convertible Senior Notes, due December 2028 • $350.0M 4.75% Senior Notes, due M
Slide 9: Appendix
APPENDIX
Slide 10: Non-GAAP Reconciliation: Reconciliation of Net Leverage
NON-GAAP RECONCILATION RECONCILIATION OF NET LEVERAGE Use of Non-GAAP Financial Information * As defined by credit agreement which includes debt and cash balances -Earnings before interest, taxes, depreciation and amortization (“EBITDA”), Pro-Forma Adjusted EBITDA, and Net Debt to Pro-Forma Adjusted