Patrick Industries, Inc. · NASDAQ:PATK
Patrick Industries — Q2 2020 Earnings Presentation
13 slides from Patrick Industries's earnings presentation, Jul 30, 2020
Slide 1: Q2 2020 Earnings Presentation
Q2 2020 EARNINGS PRESENTATION July 30, 2020
Slide 2: Forward-Looking Statements
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 forwa
Slide 3: Patrick Industries at a Glance
PATRICK INDUSTRIES AT A GLANCE (NASDAQ: PATK) Key Component Manufacturer and Supplier to RV, Marine, Manufactured Housing and Industrial Markets KEY FACTS SUSTAINABLE COMPETITIVE ADVANTAGES Founded 1959 Experienced management team with an average of 20+ years of industry experience Headquartered Elk
Slide 4: Key Messages
KEY MESSAGES Prioritization of team members safety, commitment to maintaining a 1 safe work environment while continuing to serve our customers Well-prepared for strong resurgence in our end markets as a result 2 of increased consumer demand 3 Quick response to initial COVID-19 and flexible business
Slide 5: Q2 2020 Financial Summary
Q2 2020 FINANCIAL SUMMARY FINANCIAL RESULTS1 COVID-19 IMPACT Net sales decreased 30.8% to $424.0M Operating income decreased 73.2% to $12.1M • Sales decline primarily due to lost volume resulting from state Operating margin decreased 450 basis points to 2.9% mandated shutdowns • Earnings negatively
Slide 6: Market Sector Trends
MARKET SECTOR TRENDS RV MARINE MH INDUSTRIAL Wholesale . Apr – May: (56%) . Apr – May: (52%) . Apr – May: (20%) . Apr – May: (24%) Shipments . Q2: (35%) . Q2: (39%) . Q2: (17%) . Q2: (17%) Retail . Apr – May: (28%) . Apr – May: (20%) . Apr – May: (15%) Shipments1 . Q2: (15% - 20%) . Q2: (5% - 10%) .
Slide 7: Operations & Short-Term Outlook
OPERATIONS & SHORT-TERM OUTLOOK We remain disciplined with a flexible business model that enables us to shift production across like-product We remain disciplinedfacilities with and a flexible provides business additional levers model to remainthat allows efficient for the ability to shift productio
Slide 8: Q2 2020 Financial Results
Q2 2020 FINANCIAL RESULTS ($ MILLIONS EXCEPT PER SHARE DATA) OPERATING CASH FLOW FROM NET SALES DILUTED EPS INCOME & MARGIN OPERATIONS (30.8%) (73.2%) (97.4%) (58.0%) $93.8 $613.2 $45.2 $1.18 $424.0 $39.4 7.4% $12.1 2.9% $0.03 Q2 2019 Q2 2020 Q2 2019 Q2 2020 Q2 2019 Q2 2020 6M 2019 6M 2020 . Decline
Slide 9: Performance by Market Sectors
PERFORMANCE BY MARKET SECTORS ($ MILLIONS) Leisure Lifestyle1 Housing and Industrial1 RV MH (40%) (18%) $340.9 $109.9 $204.1 $90.3 Q2 2019 Q2 2020 Q2 2019 Q2 2020 . 48% of sales in Q2 2020 . 21% of sales in Q2 2020 . Content per Unit (TTM) – declined 2% to $3,086 from $3,135 . Content per Unit (TTM)
Slide 10: Balance Sheet, Cash Flow and Liquidity
BALANCE SHEET, CASH FLOW AND LIQUIDITY The strength of our cash flows, combined with our liquidity continue to provide us with the flexibility to navigate a variety of scenarios through these unprecedented times DEBT STRUCTURE AND MATURITIES NET LEVERAGE1 ($ in millions) . $550M Senior Secured Revol
Slide 11: Conclusion / Takeaways
CONCLUSION / TAKEAWAYS MARKET BUSINESS LEADERSHIP STRATEGIC LIQUIDITY POSITION MODEL Market leader in our Deep industry Flexible, high Disciplined cost Strong balance primary market experience and variable cost management sheet with no near- sectors; uniquely proven track record business model to ba
Slide 12: Appendix
Appendix Q2 2020 Earnings Presentation
Slide 13: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Reconciliation of Net Income to EBITDA to LTM Adjusted EBITDA ($ in millons) LTM 6/28/20 Net income $ 63.2 + Depreciation & amortization 67.2 + Interest Expense, net 40.3 + Income taxes 21.3 EBITDA 192.0 + Stock compensation expense 13.6 + Acquisition proforma, transaction-r