Slide 1: Third Quarter 2013 Investor Presentation
Slide 2: INDUSTRIES, INC.
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Slide 3: Forward-Looking Statements
Forward-Looking Statements This presentation contains certain statements related to future results, or states 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. T
Slide 4: Patrick Industries Highlights
Patrick Industries Highlights Patrick is a leading national manufacturer and distributor of a wide variety of building and component products for the RV, MH and Industrial markets. Strong leadership team and key players - top to bottom alignment and entrepreneurial culture Solid balance sheet and fr
Slide 5: Patrick Industries Overview
Patrick Industries Overview = Leading national supplier serving the RV, Manufactured Housing & Industrial markets = 16 manufacturing and 14 distribution centers = Approximately 2,500 employees = Strong leadership team & entrepreneurial culture = Strong customer relationships TRATRIC
Slide 6: Patrick Facility Profile
| PATRICK Patrick Facility Profile A Bn Patrick’s nationwide network of manufacturing and distribution centers reduces in-transit delivery time and cost to our customers. # of Centers (as of 9/29/13) Manufacturing 16 Distribution 44
Slide 7: Sales Concentration By Market
Sales Concentration By Market The increase in wholesale unit shipments in the RV market, new product introductions, and the impact of acquisitions over the last 3 years contributed to an increase in our RV market sales concentration. 2011 Actual Industry 2012 Actual Industry Sales Sales Breakdown Br
Slide 8: RV Market Growth Factors
RV Market Growth Factors Market Growth Consumer Demand + 73% of Patrick's nine months 2013 sales and 69% for full year 2012 + RVs appeal ta consumers with young families who: = Value spendingtime with their family = Enjoy participatingin a broad range of outdoor activities = Act ina environmentally
Slide 9: RV Industry Shipment Trends
RV Industry Shipment Trends After a dramatic rebound in 2010 from a 58% decline in unit shipments in the period of & 3 Ss £ G E a = a 2006-2009, the RV industry has experienced steady growth. RV Wholesale Unit Shipments 168 %e & % & 4 & % SEES % 4% HHS % BYES, * 72% increase in unit shipments from 2
Slide 10: RV Content Per Unit
RV Content Per Unit With market share gains, new products and extension growth, and acquisitions, our RV unit content has grown 54% since Qi of ‘12. $’s Sold / RV Unit Shipped * a g R e S B38 8 ao # 8 e g 3 7a | 0 'o 'o “Based on TTM Average
Slide 11: MH Market Growth Factors
MH Market Growth Factors Drivers of Consumer Demand Market Growth Affordability Job growth) Mond quality Financing/ credi availability Consumer confidence Consumer Demand * 16% of Patrick’s nine months 2013 sales and 19% for full year 2012 + There is upside potential, with little downside risk, if v
Slide 12: MH Shipment Trends
MH Shipment Trends The MH Industry continues to recover at a slower pace after suffering fram conditions very similar to the residential housing crisis in 2008. MH Wholesale Unit Shipments 3; 3 & ¢ 5 E 5 5 2 “NOT 50 52 55 59 %% % % % & % | % % HY % % HH HH HHH YY % * 10% increase in unit shipments f
Slide 13: MH Content Per Unit
MH Content Per Unit Our content per unit shipped continued to improve from Q4 of ‘11. $’s Sold / MH Unit Shipped * *Based on TTM Average
Slide 14: Industrial Market Growth Factors
New residential housing struction Existing home sales + 11% of Patrick's nine months 2013 sales and 12% for full year 2012 + 60% of Campany’s industrial revenue base tied directly ta residential housing market * National Association of Hame Builders (NAHB) predicts an 18% increase in total housing s
Slide 15: New Housing Starts Trends
New Housing Starts Trends We estimate that approximately 60% of our industrial revenue base Is directly tied to the residential housing market which has started to shaw signs of a recovery. 1,617 4641 1569 1,603, aasr MATT Aa7a 3 3 3 5 & ” £ 3 a z z % % & & % & GH % HHH, HS YY % B + 419% improvement
Slide 16: Acquisition Strategy
Acquisition Strategy ¢ We target organizations with: o Solid management teams o High quality product lines o Strong customer and supplier relationships ¢ Patrick provides the acquired businesses with: o Opportunity to allow the creative entrepreneurial sprit of each to continue to thrive o Capital a
Slide 17: Growth Through Acquisition
pany n publi Growth Through Acquisition Group Acquit ide Furniture Acquin Middlebury Hardwa
Slide 18: Acquisition Summary (2010 - 2013)
Acquisition Summary (2010 - 2013) Ea a ADORN 01/2010 Quality Hardwoods Sales $2.0 MM $2MM Manufacturing Cabinet Doors & Wiring, electrical, plumbing 08/2010 Blazon International Group $3.8 MM $20MM Distribution and other building products an Poiriec ennnnaeas (aie ce" products, and furniture 06/2011
Slide 19: Acquisition Summary (2010 – 2013) (continued)
Acquisition Summary (2010 — 2013) (continued) 09/2013 09/2013 09/2013 * Projected Annualized Sales as of the acquisition date hoa) Frontline Mfg, Inc, $5.2MM Premier Concepts, Ine. $2.6 MM rs on West Side Furniture $8.7 MM. RV, MH & $15MM Manufacturing — Industrial RV, MH & Industrial $10 MM — Manuf
Slide 20: Financial Review
September 29, 2013 Financial Review
Slide 21: Third Quarter Financial Summary
Third Quarter Financial Summary {$ in thousands except per share data) | 9/29/2013 Net Sales $146,623 Cost of Goods Sold 124,800 Gross Profit 21,823 Warehouse & Delivery 5,293 Selling, General & Administrative 7,001 Income Before Income Taxes 8,434 Income Taxes 2,982 Net Income $5,452 EBITDA $10,816
Slide 22: Nine Months Financial Summary
Nine Months Financial Summary ; %to Net % to Net ($ in thousands except per share data) 9/29/2013 9/30/2012 Sales Net Sales $448,319 $331,239 Cost of Goods Sold 378,900 84.5% 280,063 84.6% Gross Profit 69,419 15.5% 51176 15.4% Warehouse & Delivery 14,539 3.2% 11,741 3.5% Selling, General & Administr
Slide 23: Balance Sheet Summary
Balance Sheet Summary $ in thousands} 9/29/2013 12/31/2012 9/30/2012 Cash and Cash Equivalerts 10,510 434 $ Trade Receivables 35,518 17,858 31,650 Inventories 55,854 46,992 40,978 Other Current Assets 6741 8,386 3,074 Property, Plant & Equipment, net 40,113 37,069 28,602 Goodwill 16,970 10,362 6,753
Slide 24: Cash Flow Summary
Cash Flow Summary SSE 9/29/2013 9/30/2012 Cash Flows From Operating Activities: Net income 19,028 24,878 Depreciation & amortization 3,693 Stock warrants revaluation/ deferred financing amort/debt discount PANT Stock compensation/deferred compensation/other (6,069) Changes in operating assets & liab
Slide 25: Net Sales
Net Sales (millions) A J i 9 $500 3Q‘13 sales increased 29.8% — RV: 35% revenue increase & 70% of 3Q’13 sales MH: 16% revenue increase & 18% of 3Q'13 sales Industrial markets: 25% revenue increase & 12% of 3013 sales 9 Months ’13 sales increased 35.3% — RV: 44% revenue increase & 73% of 9M’13 sales
Slide 26: Gross Margin Trends
Percentage Gross Margin Trends Our gross margins have been improving consistent with our acquisition and strategic growth plans. Quarterly varlobility of gross margins is driven by seasonal and competitive factors. 15.8% 15.8% %, % & & % Ww & % % &, % ee 9% &% "8 "e “ee %, %
Slide 27: Net Income & Diluted EPS Summary (Reported / Adjusted)
Net Income & Diluted EPS Summary (Reported / Adjusted) 2010-Nine Months 2013 Net Income Net Income — Adjusted* (millions) (millions) 4 828 $30.0 | $24.9 $25.0 ais A s1a0 $19.0 $15.0 $10.0 $5.0 sao sao $0.0 (S10) z z 2011 «-2012,=«9M"12.—« 9M "13, Diluted EPS — Adjusted* (per share) (per share) $3.00
Slide 28: Supplementary Schedules
Supplementary Schedules [Reported net income (GAAP) [Adjustment factors: {_ (Gain) toss on sale of fixed assets & ac quisttion of business | [Stock warrants revaluation [_ Receivable recovery [_ Income taxes (credit) | 4,226 | § (2,866) 8470] $28,095] $6,554 $ _24,878 | $ | | 24a (238) 234} 237] 19,
Slide 29: Leverage Position
Leverage Position Our leverage position has improved significantly since the recession and we have ample cushion to increase leverage if needed for future growth opportunities. Leverage Position Trend Funded Debt / EBITDA : ms, Me Me My My My My Me MH MH MH MW My —Omleverage Since year-end 2009, des
Slide 30: Stock Price Trend 2011-October 2013
Stock Price Trend 2011-October 2013 Our stock price performance hos trended consistent with our operating and financial results. Monthly Closing Stock Price Trend Closing Stock Price Eg SEP EP EP ELE SECEP ES OR SEECEPEEE SERED Patrick has 10.6 million shares outstanding and a market capitalization
Slide 31: Patrick’s Products and Segments
Patrick’s Products and Segments
Slide 32: Patrick’s Manufactured Products
Patrick’s Manufactured Pr Gravure Ink @ oducts p> © /pecon @cwo ‘Crearwe Wicos Desens
Slide 33: Manufactured Products
Manufactured Products Made-to-order laminated products including vinyl, paper, veneers and high pressure laminates (HPL) a Cut to size, boring, foiling & edge-banding Solid surface, granite & quartz countertop Fabrication Wrapped profile mouldings Cabinet doors & components Hardwood furniture Counte
Slide 34: Manufactured Products
Manufactured Products Made-to-order laminated products including vinyl, paper, veneers and high pressure laminates (HPL) 0 Cut to size, boring foiling & edge-banding "Solid surface, granite & quartz countertop fabrication + Wrapped profile mouldings = Cabinet doors & components = Hardwood furniture
Slide 35: Patrick’s Distribution Products
P) Gustafson PATRICK Lighting Patrick’s Distribution Products aw
Slide 36: Distribution Products
Distribution Products Pre-finished wall and ceiling panels Drywall & drywall finishing products Electronics Wiring, electrical & plumbing products Interior & exterior lighting products Interior passage doors Recliners, mattresses & other furniture Roofing products Laminate flooring Cement siding Sho
Slide 37: Distribution Products
Distribution Products Pre-finished wall and ceiling panels Drywall & drywall finishing products Electronics Wiring, electrical & plumbing products Interior & exterior lighting products Interior passage doors Recliners, mattresses & other furniture Roofing products Laminate ceramic flooring Cement si
Slide 38: Information Contacts
Information Contacts Andy Nemeth Chief Financial Officer (574) 294-7511 nemetha@patrickind.com Julie Ann Kotowski Director of Investor Relations (574) 294-7511 kotowskj@patrickind.com Analyst Coverage CJS Securities Daniel Moore dmoore@cjs-securities.com