Patrick Industries, Inc. · NASDAQ:PATK
Patrick Industries — Q1 2020 Earnings Presentation
17 slides from Patrick Industries's earnings presentation, Apr 30, 2020
Slide 1: Q1 2020 Earnings Presentation
Q1 2020 Earnings Presentation April 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: Company Snapshot
Company Snapshot Today, operates as a key component manufacturer and Founded in 1959 as a supplier to the RV, Marine, Manufactured Housing and Industrial Manufactured Housing Supplier Markets Headquartered in Elkhart, Indiana Operates coast-to-coast in 23 states in the U.S. and in Canada, China and
Slide 4: Market Platform
Market Platform Over the last several years, we have strategically engaged in diversifying our market position in order to align our revenue stream with wholesale and retail trends across all four of our primary end markets Sales Composition 2018 2019 Q1 2020 RV – 63% RV – 55% RV – 55% Marine – 12%
Slide 5: Key Messages
Key Messages Started the year with positive momentum and traction in all end markets, 1 followed by the sudden disruption late in Q1 due to COVID-19 Strong operational and financial performance in Q1 despite lost production 2 days and negative impact from COVID-19 Prioritization of team member safet
Slide 6: COVID-19 Response
COVID-19 Response Company-wide Actions HEALTH AND SAFETY Created COVID-19 Task Force and Business Unit Champions to provide I would like to take this moment to continued awareness, training and education thank all our conscientious team Implemented social distancing, strict sanitation practices
Slide 7: Q1 2020 Financial Highlights
Q1 2020 Financial Highlights COVID-19 IMPACT • Net sales of $589.2 million decreased 3.1% • Sales decline primarily attributable to lost production days and • Operating income of $39.3 million increased 9.6% business disruption in our end markets late in Q1 2020 Income • Operating margin expanded 80
Slide 8: Markets and Trends
Markets and Trends As we reflect on the first quarter, we had tremendous momentum to start the year, followed by the unprecedented and sudden impact from COVID-19 RV Marine* MH* Industrial (housing starts) Wholesale • Jan-Feb: +13% • Jan-Feb: (18-20%) • Jan-Feb: +15% • Jan-Feb: +34% Shipments • Q1:
Slide 9: Operations & Short-term Outlook
Operations & Short-term Outlook • Roll out “Return to Work” protocols for planned re-opening of all our facilities by May 4, 2020 • Anticipate significant short-term disruption in all end markets in the second quarter, followed by sequential improvement through the back-half of 2020 • Leverage high-
Slide 10: Q1 2020 Financial Results
Q1 2020 Financial Results ($ millions except per share data) Net Sales Operating Income & Diluted EPS Cash from Operations (3.1%) Margin 1.5% $0.91 $608.2 9.6% $0.90 $589.2 $27.9 $29.2 $39.3 $35.8 6.7% $16.0 5.9% Q1 2019 Q1 2020 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Q1 2019 Q1 2020 $16 million of receivab
Slide 11: Performance by Market Sectors
Performance by Market Sectors Revenues ($ millions) RV RV (6%) • 55% of sales – Q1 2020 $342.4 $320.2 • Content Per Unit (TTM) – declined 1% to $3,112 from $3,131 in Q1 2019 • Content Per Unit negatively impacted due to OEMs curtailing production in late March, but continuing to ship finished goods
Slide 12: Balance Sheet, Cash Flow and Liquidity
Balance Sheet, Cash Flow and Liquidity The strength of our cash flows, combined with our liquidity, provides us with the flexibility to navigate a variety of scenarios through these unprecedented times • $550M Senior Secured Revolver NET LEVERAGE* ($ millions) • $100M Term Loan ($97.5M o/s at 3/29/2
Slide 13: Transformation of Business from Prior Recession
Transformation of Business from Prior Recession Great Response Better Recession to Recession Positioned Today • Portfolio consisted of commodity-based • Aggressive fixed cost reduction and • Engineered, value-added, brand- product lines consolidated certain operations centric product portfolio • Low
Slide 14: Downturn Playbook
Downturn Playbook Flexible Cost Containment Additional Business Model Actions Taken Levers Available • High variable cost model Voluntary wage reductions for o Fixed overhead reductions − >80% variable costs the executive management o Variable compensation team and board of directors' reductions •
Slide 15: Conclusion / Takeaways
Conclusion / Takeaways 1 2 3 4 Flexible business Strong balance sheet Proven resilience to Primary market sectors model with ability to with no near-term debt withstand significant uniquely positioned for produce across all four maturities, ample economic challenges post COVID-19: market sectors and
Slide 16: Appendix
Appendix PATK LISTED NASDAQ
Slide 17: Non-GAAP Reconciliations
Non-GAAP Reconciliations Reconciliation of Cash Flow from Operations to Free Cash Flow ($ in millons) 2007 2019 Cash Flow from Operations $ 22.5 $ 192.4 Less: Capital Expenditures (2.5) (27.7) Free Cash Flow $ 20.0 $ 164.7 Reconciliation of Net Income to EBITDA to LTM Reconciliation of Net Leverage*