Slide 1: Q2 2024 Earnings Presentation
Q2 2024 Earnings Presentation August 1, 2024
Slide 2: Forward-looking statements
Forward-looking statements 2 This presentation includes contains statements that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward- looking statements are generally identified by words such as “estimates,” “guidance,” “expects,” ”ant
Slide 3: Diversification Journey Continues
3 $ in millions, except per share data FY 2019 Q2’24 TTM Δ Wholesale RV Shipments 406,070 326,940 (19)% Total Net Sales $2,337 $3,597 +54% Total RV Sales $1,287 $1,624 +26% Total Marine Sales* $329 $631 +92% Total Housing Sales $721 $1,103 +53% Total Powersports Sales - $239 NM Gross Margin 18.1% 22
Slide 4: Highlights Q2 2024
4 Highlights Q2 2024 Revenue up 10% y/y, backed by the resilience of our diversified end market strategy • RV revenue grew 17% y/y, fueled by ongoing recovery in wholesale unit shipments • Housing revenue improved 11% y/y on MH shipment growth and continued solid demand for affordable housing • Powe
Slide 5: Performance by End Market Q2 2024
Performance by End Market Q2 2024
Slide 6: RV market performance
RV shipments improved during the quarter, leading to revenue expansion in our largest end market. We believe dealer inventories are lower than the historical average, but dealers remain hesitant to restock given interest rate and inflationary headwinds. 6 $450M REVENUE % OF Q2 SALES 44% WHOLESALE SH
Slide 7: Marine market performance
$- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 CONTENT PER UNIT 1,2 Our Marine businesses continue to focus on innovation and product development. OEMs are maintaining disciplined production schedules, leading to improved inventory levels in the dealer channel. Interest rate and inflationary headwinds
Slide 8: Powersports market performance
We remain well positioned to supply premium component solutions to the Powersports market following the Sportech acquisition. Our focus is on the utility segment of the market, which has been more resilient than the recreation segment. 8 $104M REVENUE % OF Q2 SALES 10% SOLID POWERSPORTS PLATFORM Q2
Slide 9: Housing market performance
$- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 CONTENT PER UNIT 1,2 Our housing business produced strong results in the second quarter, contributing to our revenue growth. Estimated MH shipments improved 19% as consumer demand for affordable housing remains strong. Interest rates continu
Slide 10: End market demand commentary Q2 2024
Q2 2024 POWERSPORTS Demand for utility-focused vehicles has remained resilient Improved functionality and innovation continue to drive favorable demand for utility side-by-side vehicles Dealer floorplan costs are impacting purchasing decisions MARINE High floorplan costs and lower retail velocity co
Slide 11: Financial Performance Q2 2024
Financial Performance 11 Q2 2024 NET SALES & GROSS MARGIN $1,017$921 Q2 2023 Q2 2024 22.8%22.8% Powersports Housing Marine RV $76 $85 OPERATING INCOME & MARGIN 8.3%8.2% Q2 2023 Q2 2024 $1.94 $2.16 DILUTED EPS Q2 2023 Q2 2024 YTD ADJUSTED DILUTED EPS Q2 2023 Q2 2024 ($ in millions, except per share d
Slide 12: Shipments and End Market Data
Shipments and End Market Data3 RETAILWHOLESALE 113,900 92,700 (10)% YoY +7% YoY RV1 RETAILWHOLESALE 68,400 39,300 (10)% YoY (27)% YoY MARINE1 WHOLESALE 27,200 +19% YoY MH1 MULTIFAMILYSINGLE FAMILY 139 261 (34)% YoY +7% YoY HOUSING STARTS2 86,200 126,800 53,900 75,600 22,700 91 281 12 Q2 2024 Q2’23 Q
Slide 13: Balance Sheet and Liquidity
Balance Sheet and Liquidity 13 COVENANTS AND RATIOS1 DEBT STRUCTURE AND MATURITIES NET LEVERAGE1 ($ in millions) LIQUIDITY ($ in millions) • $150.0M Term Loan ($125.6M o/s), scheduled quarterly installments; balance due August 2027 • $775.0M ($295.0M o/s) Senior Secured Revolver, due August 2027 • $
Slide 14: Fiscal Year 2024 Outlook
Operating Margin 7.5% Flat to up 20 bps3 Up 30 to 50 bps Operating Cash Flows $409M $390M - $410M Unchanged Free Cash Flow $350M $310M+ Unchanged RV Wholesale Unit Shipments (RVIA) 313K 320K - 330K 320K - 340K RV Retail Unit Shipments1 380K Down 5 - 10% Unchanged Marine Wholesale Powerboat Unit Ship
Slide 15: Appendix
Appendix
Slide 16: Quarterly Revenue by End Market – 2023
Quarterly Revenue by End Market – 2023 3 ($ in millions) Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 RV $367.0 $383.6 $400.1 $352.7 $1,503.3 Marine $238.0 $226.3 $171.7 $146.6 $782.6 Powersports $32.8 $36.5 $28.8 $23.9 $122.0 Housing $262.4 $274.3 $265.5 $258.0 $1,060.2 Total $900.1 $920.7 $866.1 $781.2 $3
Slide 17: Non-GAAP Reconciliation
Non-GAAP Reconciliation 17 RECONCILIATION OF NET INCOME TO EBITDA TO PRO FORMA ADJUSTED EBITDA FOR THE TRAILING TWELVE MONTHS -Earnings before interest, taxes, depreciation and amortization (“EBITDA”), Pro-Forma Adjusted EBITDA, and Net Debt to Pro-Forma Adjusted EBITDA are non- GAAP financial measu
Slide 18: Non-GAAP Reconciliation (Continued)
($ in millions) 6M 2024 Cash Flows from Operations $172.7 Less: Purchases of Property, Plant and Equipment (32.4) Free Cash Flow $140.3 Non-GAAP Reconciliation (Continued) -Earnings before interest, taxes, depreciation and amortization (“EBITDA”), Pro-Forma Adjusted EBITDA, and Net Debt to Pro-Forma