Patrick Industries, Inc. · NASDAQ:PATK
Patrick Industries — Investor Presentation (November 2006)
19 slides from Patrick Industries's investor presentation, Nov 14, 2006
Slide 1: Patrick Industries, Inc.
Patrick Industries, Inc. (Nasdaq: PATK)
Slide 2: Forward-looking statements
This presentation contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to financial condition, results of operations, business strategies, operating efficiencies or synergies, competitive position, growth opportunities
Slide 3: About Patrick Industries
About Patrick Industries A leading manufacturer and distributor of building and component products for the following markets: Manufactured Housing (MH) Recreational Vehicle (RV) Industrial Markets: kitchen cabinet, home and office furniture, marine, fixture/commercial furnishings Supply virtually al
Slide 4: History
History 1959 – Company founded by Mervin Lung as a distributor to the MH industry 1961 – Date of Incorporation 1968 – Company taken public 1968 – Acquires Mobilcraft Door and Midwest lamination 1972 – Starts first Panel lamination division 1980 – Acquires ILC Products – Aluminum extrusion division 1
Slide 5: National Reach
National Reach Based in Elkhart, Ind., Patrick Industries operates through 12 distribution centers and 15 manufacturing facilities located in 13 states. Patrick distribution centers. Patrick manufacturing divisions.
Slide 6: Manufactured Products
Manufactured Products Manufactured Products: Make-to-order laminated products using the latest in lamination technology, including vinyl, paper, veneers and high pressure laminates (HPL) Cut to Size, boring, foiling & Edgebanding Wrapped profile moldings Custom-made extruded aluminum products Manufa
Slide 7: Distributed Products
Distributed Products Pre-finished wall and ceiling panels Drywall and drywall finishing products Particleboard Vinyl and cement siding Interior passage doors Resilient flooring Decorative Tile Hardwood flooring Shelving and closet systems Floor sealer Sheet stock high pressure laminates (HPL) Decora
Slide 8: Transition to New Management & Ownership
Transition to New Management & Ownership Patrick founded by Mervin Lung in 1959; IPO in 1968 New management team formed in 2004 Mervin Lung, largest shareholder, retires and sells total interest (27.5%) to Tontine Capital Partners in 2005 New management team implementing new strategic growth plan 20
Slide 9: New Strategic Plan
New Strategic Plan Increased market penetration Enhanced capacity utilization Improving operating efficiencies New marketing and product development Strategic, accretive acquisition opportunities to further drive growth and shareholder value.
Slide 10: New Products
New Products Exclusive supplier of Lamitech™ high pressure laminates Supplier of Beauflor resilient flooring product; introducing a cutting edge European technology which provides superior quality helping to reduce warranty costs for manufactured homes New powder paint facility for aluminum extrusio
Slide 11: Business Segments
Business Segments Manufactured Products produced at 11 manufacturing facilities across the U.S. Distributed Products from 12 distribution centers across the U.S. Engineered Solutions including aluminum extrusion and fabrication operations. Other Manufactured products, including adhesives, cabinet do
Slide 12: Major Customers
Major Customers MH market: Clayton/Oakwood (a division of Berkshire Hathaway) Champion (NYSE: CHB) Fleetwood (NYSE: FLE) Palm Harbor Homes (Nasdaq: PHHM) Skyline (NYSE: SKY) Industrial market: Saco Industries (private) Commercial Wood (private) Hitachi (NYSE: HIT) Kitchen Kompact (private) Stack-a-S
Slide 13: Patrick's Content per MH
Patrick’s Content per MH* *Based on Patrick industry sales divided by gross industry unit sales ** 2006 Forecast
Slide 14: Patrick's Content per RV
Patrick’s Content per RV* *Based on Patrick industry sales divided by gross industry unit sales ** 2006 Forecast
Slide 15: Third Quarter 2006 Results
Third Quarter 2006 Results Net sales of $90.8 million, 12% increase compared to last year’s 3Q EPS of $0.08 per share compared with $0.03 per share in 3Q 2005 Increased sales led to increased profitability, as management continues to keep fixed costs comparable from period to period Operating income
Slide 16: Financial Results
Financial Results Revenue (in millions of dollars) EPS
Slide 17: Acquisition Strategy
Acquisition Strategy Immediate accretion High-quality/due-diligence emphasis Maximum 5x - 6x multiple Experienced, quality-driven management team Strategic fit with existing businesses Diversification Strong market position Quality customer relationships
Slide 18: Investment Highlights
Investment Highlights Platform established for future growth New experienced management team and strategic plan Introducing new products Solid balance sheet and low leverage position Growing market share and increasing sales volume to leverage operating efficiencies across fixed overhead Aggressivel
Slide 19: For More Information
For More Information Company Contact: Andy L. Nemeth, CFO Patrick Industries, Inc. 574-294-7511 / nemetha@patrickind.com Website: www.patrickind.com Investor Relations Contact: Ryan McGrath, Jeff Lambert Lambert, Edwards & Associates, Inc. 616-233-0500 / mail@lambert-edwards.com
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