Patrick Industries, Inc. · NASDAQ:PATK
Patrick Industries — Investor Presentation (January 2021)
28 slides from Patrick Industries's investor presentation, Jan 13, 2021
Slide 1: Investor Presentation January 2021
INVESTOR PRESENTATION January 2021
Slide 2: Forward-Looking Statements
Investor Presentation – January 2021 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 Litig
Slide 3: Company Overview & Highlights
Investor Presentation – January 2021 COMPANY OVERVIEW & HIGHLIGHTS
Slide 4: Positioned for Success Now and in the Future
Investor Presentation – January 2021 Positioned for Success Now and in the Future KEY MESSAGES 4 Prioritizing health and safety of team members by maintaining a safe work environment while continuing to serve our customers Successfully flexing capacity and making strategic investments to align with
Slide 5: Patrick Industries at a Glance
Investor Presentation – January 2021 Manufacture and Distribute Quality Products that Exceed Customer Expectations PATRICK INDUSTRIES AT A GLANCE (NASDAQ: PATK) KEY FACTS Headquartered Elkhart, Indiana Market-cap1 $1.6B Current States Presence 23 Employees ~8,500 # of Acquisitions Completed Since 20
Slide 6: Well Positioned For Continued Growth through 2021 and beyond
Investor Presentation – January 2021 Well Positioned For Continued Growth through 2021 and beyond CURRENT PATRICK & END MARKET THEMES 6 Social distancing trends expected to continue Strong retail sales & restocking velocity in leisure lifestyle markets Solid demographics, dealer traffic and new buye
Slide 7: Strategic End Markets Overview
Investor Presentation – January 2021 Portfolio of products is highly leverageable across business lines STRATEGIC END MARKETS OVERVIEW 69% 63% 55% 55% 7% 12% 14% 13% 13% 12% 19% 19% 11% 13% 12% 13% 2017 2018 2019 LTM 9/27/20 RV Marine MH Industrial Sales Composition ($MM) $1,636 $2,263 $2,337 Net Sa
Slide 8: Leading Market Position in Major Product Categories
Investor Presentation – January 2021 LEADING MARKET POSITION IN MAJOR PRODUCT CATEGORIES Significant organic growth opportunities with current product categories in RV, Marine and MH markets; addressable industrial market is very large and fragmented, resulting in significant growth opportunities Re
Slide 9: Clear Strategic Path Forward for Profitable Growth
Investor Presentation – January 2021 CLEAR STRATEGIC PATH FORWARD FOR PROFITABLE GROWTH Pursue Organic Growth o Invest in internal growth via cross-selling, product line extensions driven by brands, deep industry relationships, and using comprehensive design and innovation center o Devote capital to
Slide 10: Focused on ESG to Drive Long-term Shareholder Value
Investor Presentation – January 2021 Focused on ESG to Drive Long-term Shareholder Value INCREASED FOCUS ON ESG RESPONSIBILITIES AND BEST PRACTICES Environmental o Established transportation / resource usage program to reduce costs, fuel consumption and emissions o Building leading safety culture wi
Slide 11: Market Overview
Investor Presentation – January 2021 MARKET OVERVIEW
Slide 12: RV Industry Highlights
Investor Presentation – January 2021 RV INDUSTRY HIGHLIGHTS RV Wholesale Shipment Trends Market HighlightsRV Wholesale Shipments (shipments in thousands) Retail continued to extraordinarily outpace wholesale in the third quarter; more than 110k units were taken out of the pipeline through the end
Slide 13: Marine Industry Highlights
Investor Presentation – January 2021 MARINE INDUSTRY HIGHLIGHTS Marine Wholesale Shipment Trends Market Highlights Marine Wholesale Shipments (shipments in thousands) With dealer de-stocking efforts exacerbated even further by COVID and strong retail demand, marine dealer inventories are sitting a
Slide 14: MH Industry Highlights
Investor Presentation – January 2021 MH INDUSTRY HIGHLIGHTS MH Wholesale Shipment Trends Market HighlightsMH Wholesale Shipments (shipments in thousands) The trends continue to point toward a long runway in the MH sector as favorable demographic trends and a low supply of existing houses create a
Slide 15: Industrial Industry Highlights
Investor Presentation – January 2021 INDUSTRIAL INDUSTRY HIGHLIGHTS New Housing Starts Trends Market HighlightsNew Housing Starts (starts in thousands) Low interest rates and low inventories have combined with urban- to-rural migration trend to drive new housing starts Single-family housing star
Slide 16: Financial Overview
Investor Presentation – January 2021 FINANCIAL OVERVIEW Growth Initiatives and Capital Allocation Strategy
Slide 17: Strong Trajectory of Sales and Earnings Growth
Investor Presentation – January 2021 STRONG TRAJECTORY OF SALES AND EARNINGS GROWTH o LTM 2020 sales reflect: o RV dealer inventory recalibration and positive tailwinds from lower interest rates and low housing supply pre-COVID o Production disruptions related to COVID-19 in Q2’20 o Significant resu
Slide 18: Strong FCF Generation Provides Flexibility
Investor Presentation – January 2021 Strong FCF Generation Provides Flexibility Across Strategic and Financial Objectives TRACK RECORD OF STRONG CASH FLOW GENERATION Cash Flow from Operating Activities ($MM) Free Cash Flow per Share2Free Cash Flow1 ($MM) $67 $97 $100 $200 $192 $183 $19 77% 84% 64% 8
Slide 19: Disciplined Capital Allocation Strategy
Investor Presentation – January 2021 DISCIPLINED CAPITAL ALLOCATION STRATEGY 78% 82% 87% 92% 71% 60% 67% 7% 5% 10% 8% 7% 30% 12% 15% 13% 3% 22% 6% 10% 4% 11% 2014 2015 2016 2017 2018 2019 9M'20 Acquisitions Capex Dividends Stock Buybacks Our capital allocation strategy is centered around the utiliza
Slide 20: Disciplined Acquisition Approach to Enhance Profitable Growth
Investor Presentation – January 2021 Disciplined Acquisition Approach to Enhance Profitable Growth ACQUISITIONS FRAMEWORK 20 Accretive to EPS within First Full Year ROIC > WACC within 1-2 Years Post-Synergy Valuation Below Current Trading Multiple FINANCIAL FILTERS STRATEGIC CRITERIA Key Product Cat
Slide 21: Key Investment Highlights
Investor Presentation – January 2021 MARKET POSITION Market leader in our primary market sectors; uniquely positioned for near- and long-term shift toward outdoor activities BUSINESS MODEL Flexible, high variable cost business model to drive operational efficiency and navigate through all economic c
Slide 22: Appendix
Investor Presentation – January 2021 APPENDIX
Slide 23: End Market Product Categories
Investor Presentation – January 2021 END MARKET PRODUCT CATEGORIES TOWABLE Shipments: 89% Wholesale | 64% Retail Value MOTORIZED Shipments: 11% Wholesale | 36% Retail Value Travel Trailer | ASP: $25,300 Fifth Wheel | ASP: $55,200 Class A | ASP: $214,000 Class B & C | ASP: $95,800 Total Retail Value
Slide 24: Patrick Product Lines: RV Exterior
Investor Presentation – January 2021 PATRICK PRODUCT LINES: RV EXTERIOR Exterior Speakers Paint & Paint Mask LED Lighting Aluminum & FRP Side Walls Laminated Side Walls Motion Sensing Lights RV Grills & Accessories Front & Rear Caps Bow TrussesDash Panels Fender Skirts RV Power Cords & Inlets Additi
Slide 25: Patrick Product Lines: RV Interior
Investor Presentation – January 2021 PATRICK PRODUCT LINES: RV INTERIOR Additional Supplied Products: o Exit Lighting o Ceiling Fans o Power Cords & Inlets o RV Tank Heater Pads o Fire Extinguishers o Electric Fireplaces o Wiring, Electrical & Plumbing Products o Inverters o Tire Pressure Monitors o
Slide 26: Patrick Product Lines: Marine
Investor Presentation – January 2021 PATRICK PRODUCT LINES: MARINE Aluminum Fuel & Holding Tanks Wire Harnesses Electronics Dash Assemblies Wire Screens Helms Aluminum Fuel & Holding Tanks Boat Hull Design & Tooling Wire Harnesses Dash Assemblies Electronics Boat Covers, Tops, Towers & Frames Marine
Slide 27: Patrick Product Lines: Manufactured Housing
Investor Presentation – January 2021 PATRICK PRODUCT LINES: MANUFACTURED HOUSING Interior Passage Doors Kitchen & Bath Faucets & Sinks Gypsum (Drywall & Drywall Finishing Products) Laminate & Ceramic Flooring Fiberglass Bath Fixtures & Shower Doors & Enclosures Cabinet Doors & Components Microwaves
Slide 28: Non-GAAP Reconciliations
Investor Presentation – January 2021 NON-GAAP RECONCILIATIONS Reconciliation of Cash Flow from Operations to Free Cash Flow Reconciliation of Free Cash Flow Per Share Use of Non-GAAP Financial Information Free Cash Flow, Earnings before interest, taxes, depreciation and amortization (“EBITDA”), % Co
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