Patrick Industries, Inc. · NASDAQ:PATK
Patrick Industries — Investor Presentation (June 2021)
26 slides from Patrick Industries's investor presentation, Jun 10, 2021
Slide 1: Investor Presentation June 2021
Investor Presentation June 2021
Slide 2: Forward-Looking Statements
2 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 for
Slide 3: Company Snapshot
3 Company Snapshot Operations in 23 U.S. States, Canada, and China Market Leader with a Focus on Delivering High-Quality, Reliable Products and Solutions Q1’2021 LTM Highlights: 1 As of 6/8/2021 | 2 Includes pro forma acquisition adjustments | 3 Operating Cash Flow less Capex | 4 As of 3/28/21 I As
Slide 4: Diversified Market Platform
4 Diversified Market Platform RV 73% Marine 2% MH 14% Industrial 11% 2015 1 Based on FYE net sales by end market 2015 Net Sales: $920MM / Adj. EBITDA (%): 9.9% Q1’2021 LTM Net Sales: $2.7B / PF LTM Adj. EBITDA (%): 12.7% End Market Evolution 1 L e is u re L if e s ty le RV o Segmented industry based
Slide 5: Leisure Lifestyle (72% of Q1'21 LTM Sales)
5 Leisure Lifestyle (72% of Q1’21 LTM Sales) End Market Product Categories: New buyer traffic and activity remains strong Inventories at historic lows with retails sales outpacing wholesale shipments Increasing OEM backlogs Completed 12 marine acquisitions since 2018 Completed 7 RV acquisi
Slide 6: Leisure Lifestyle Overview - Marine
$20 $36 $112 $274 $329 $339 $398 2015 2016 2017 2018 2019 2020 LTM 03/28/21 $111 $179 $538 $1,253 $1,696 $2,098 $2,426 2015 2016 2017 2018 2019 2020 LTM 03/28/21 Content Per Unit ($) Potential Content Per Unit ($) 6 Leisure Lifestyle Overview- Marine Marine Net Sales ($ in millions) Content Per Unit
Slide 7: Leisure Lifestyle Overview - RV
RV Net Sales $670 $879 $1,128 $1,437 $1,287 $1,392 $1,573 2015 2016 2017 2018 2019 2020 LTM 03/28/21 $1,789 $2,039 $2,234 $2,965 $3,170 $3,235 $3,288 2015 2016 2017 2018 2019 2020 LTM 03/28/21 Content Per Unit ($) Potential Content Per Unit ($) 7 Leisure Lifestyle Overview- RV RV Net Sales Competiti
Slide 8: Housing & Industrial (28% of Q1'21 LTM Sales)
8 Housing & Industrial (28% of Q1’21 LTM Sales) End Market Product Categories: Limited availability of housing and attractive financing rates are positive indicators for growth Increase of MH production rates post-COVID and end of labor constraints Demand from big box retailers remains as home
Slide 9: Housing & Industrial Overview - Manufactured Housing
$128 $159 $208 $275 $437 $432 $441 2015 2016 2017 2018 2019 2020 LTM 03/28/21 $1,825 $1,966 $2,289 $2,849 $4,616 $4,580 $4,611 2015 2016 2017 2018 2019 2020 LTM 03/28/21 Content Per Unit ($) Potential Content Per Unit ($) 9 Housing & Industrial Overview- Manufactured Housing MH Net Sales Competitive
Slide 10: Housing & Industrial Overview - Industrial
$102 $148 $188 $280 $285 $323 $336 2015 2016 2017 2018 2019 2020 LTM 03/28/21 10 Housing & Industrial Overview- Industrial Industrial Net Sales Competitive Advantage Key Aftermarket Categories Kitchen Cabinets, Countertops, and Components Store Fixtures & Commercial Furnishings Office and Hous
Slide 11: Robust and Growing Free Cash Flow Generation
11 Robust and Growing Free Cash Flow Generation 1 Pro Forma Adj. EBITDA shown for 2020 | 2 Free Cash Flow defined as Cash Flow from Operations less Capex | 3 Cash Flow conversion defined as Cash Flow from Ops. divided by Adj. EBITDA $6 $11 $18 $30 $21 $28 $2 $4 $4 $4 $7 $4 $8 $15 $22 $34 $28 $32 201
Slide 12: Prudent Capital Allocation and Conservative Leverage
12 Prudent Capital Allocation and Conservative Leverage $108 $72 $140 $139 $252 $343 $56 $306 $46 $67 $97 $100 $200 $192 $160 $0 $100 $200 $300 $400 $500 2014 2015 2016 2017 2018 2019 2020 Capex Share Repurchases Dividends Acquisitions Operating Cash Flow Leverage: 1.5x Liquidity: $63MM Leverage: 2.
Slide 13: Successful Strategic Investment Followed by Continued Organic Growth
$819 $1,130 $1,526 $2,014 $2,329 $2,405 $101 $92 $110 $249 $8 $82 $920 $1,222 $1,636 $2,263 $2,337 $2,487 2015 2016 2017 2018 2019 2020 Organic Revenue Acquired Revenue 13 Successful Strategic Investment Followed by Continued Organic Growth 2015 2016 2017 2018 2019 2020 2021 Key Product Category
Slide 14: Deep and Long-Standing Customer Relationships
14 Deep and Long-Standing Customer Relationships Customer Relationship Overview Patrick Major Customers o Patrick’s long relationships, size, scale and JIT inventory make the Company an integrated part of their customers’ production processes o In the RV market, Patrick is the largest supplier to bo
Slide 15: Favorable Demographic Trends
15 Favorable Demographic Trends 36,000 38,000 40,000 42,000 44,000 46,000 48,000 50,000 1 9 9 0 1 9 9 1 1 9 9 2 1 9 9 3 1 9 9 4 1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0
Slide 16: Increased Focus on ESG Responsibilities and Best Practices
16 Increased Focus on ESG Responsibilities and Best Practices Social Governance Environmental o Established transportation / resource usage program to reduce costs, fuel consumption and emissions o Building leading safety culture with continuous improvement and training o Ongoing conservation effort
Slide 17: Experienced Management Team
17 Experienced Management Team o Average management team industry experience of ~25 years, spanning multiple economic cycles o Senior leadership team managed the Company through the last recession and have subsequently transformed the Company o Given deep industry experience, the management team kno
Slide 18: Management's Continued Transformation of Patrick
18 Management’s Continued Transformation of Patrick Gross Margin Net Sales Market Cap 3 # of Employees FCF 2 RV 73% Marine 2% MH 14% Industrial 11% 9.9% 16.5% $920MM $91MM $681MM ~3,500 $59MM 2015 + $1.8B + 210 bps + $257MM + 280 bps + $100MM Δ + $1.3B + 6,000 12.7% 18.6% $2.7B $348MM $2.0B ~9,500 $
Slide 19: Well Positioned For Long-Term Stable Growth
19 Well Positioned For Long-Term Stable Growth Growth Engine Leading market position in key product categories Long-term secular growth across all end markets & favorable demographics Execute on strategic acquisitions in primary markets Geographic Expansion New product development and product line e
Slide 20: Appendix
APPENDIX
Slide 21: Non-GAAP Reconciliations
21 Non-GAAP Reconciliations Reconciliation of Cash Flow from Operations to Free Cash Flow Use of Non-GAAP Financial Information Free Cash Flow and Earnings before interest, taxes, depreciation and amortization (“EBITDA”) are non-GAAP financial measures. In addition to reporting financial results in
Slide 22: Patrick Product Lines: RV Exterior
22 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 Additional Product Lines: o Softwoods o
Slide 23: Patrick Product Lines: RV Interior
23 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 Electrical Switches, Receptacles,
Slide 24: Patrick Product Lines: Marine
24 Patrick Product Lines: Marine Aluminum / Plastic Fuel & Holding Tanks Wire Harnesses Electronics Dash Assemblies Wire Screens Helms Aluminum / Plastic Fuel & Holding Tanks Boat Hull Design & Tooling Wire Harnesses Dash Assemblies Electronics Boat Covers, Tops, Towers & Frames Marine Growth: o Win
Slide 25: Patrick Product Lines: Manufactured Housing Interior
25 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 Countertops Electronics Siding Shi
Slide 26: Patrick
ow PATRICK
Patrick Industries — Investor Presentation (June 2021) on 6ix