Patrick Industries, Inc. · NASDAQ:PATK
Patrick Industries — Investor Presentation (April 2021)
30 slides from Patrick Industries's investor presentation, Apr 13, 2021
Slide 1: Investor Presentation April 2021
INVESTOR PRESENTATION April 2021
Slide 2: Forward-Looking Statements
Investor Presentation – April 2021 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 Litigat
Slide 3: 60+ Year Tradition of Growth and Innovation: Company Snapshot
Investor Presentation – April 2021 60+ Year Tradition of Growth and Innovation COMPANY SNAPSHOT Operations in 23 U.S. States, Canada, and China Company Statistics 1959 Founded $2.0B Market Cap 1 Elkhart, IN Headquarters ~8,800 Team Members Market Leader with a Focus on Delivering High-Quality, Relia
Slide 4: Diversified Market Platform
Investor Presentation – April 2021 RV 56% Marine 14% MH 17% Industrial 13% RV 73% Marine 2% MH 14% Industrial 11% DIVERSIFIED MARKET PLATFORM 4 2015 2020 End Market Evolution 1 Patrick is a major manufacturer and distributor of component products serving the Leisure & Lifestyle and Housing & Industr
Slide 5: Leading Market Position in Key Product Categories
Investor Presentation – April 2021 LEADING MARKET POSITION IN KEY PRODUCT CATEGORIES o Segmented industry based on proximity to customer locations o Closest competitors have a fraction of Patrick’s sales and are generally local or regional RV Marine MH o Multiple products across the value chain allo
Slide 6: Leisure & Lifestyle Overview
Investor Presentation – April 2021 LEISURE & LIFESTYLE OVERVIEW (70% OF FY 2020 SALES) 6 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 acqu
Slide 7: Leisure & Lifestyle Overview – Marine
Investor Presentation – April 2021 $111 $179 $538 $1,253 $1,696 $2,098 2015 2016 2017 2018 2019 2020 Content Per Unit ($) Potential Content Per Unit ($) LEISURE & LIFESTYLE OVERVIEW – MARINE 7 Fully integrated into manufacturers’ design process Highly engineered and specialized products lead to
Slide 8: Leisure & Lifestyle Overview – RV
Investor Presentation – April 2021 $1,789 $2,039 $2,234 $2,965 $3,170 $3,235 2015 2016 2017 2018 2019 2020 Content Per Unit ($) Potential Content Per Unit ($) Content Per Unit $670 $879 $1,128 $1,437 $1,287 $1,392 2015 2016 2017 2018 2019 2020 LEISURE & LIFESTYLE OVERVIEW – RV 8 Largest OEMs rely
Slide 9: Housing & Industrial Overview
Investor Presentation – April 2021 A wide range of components related to residential housing, commercial and institutional markets Residential Housing Commercial Construction Fixtures Furniture Single-Section Homes Multi-Section Homes ASP: $52,400 | 47% of Market ASP: $99,500 | 53% of Market HOUSING
Slide 10: Housing & Industrial Overview – Manufactured Housing
Investor Presentation – April 2021 $1,825 $1,966 $2,289 $2,849 $4,616 $4,580 2015 2016 2017 2018 2019 2020 Content Per Unit ($) Potential Content Per Unit ($) $128 $159 $208 $275 $437 $432 2015 2016 2017 2018 2019 2020 HOUSING & INDUSTRIAL OVERVIEW – MANUFACTURED HOUSING 10 Capable of leveraging p
Slide 11: Housing & Industrial Overview – Industrial
Investor Presentation – April 2021 HOUSING & INDUSTRIAL OVERVIEW – INDUSTRIAL 11 Existing capabilities and capacity allow for manufacturing with minimal marginal fixed costs Number of facilities and geographic reach create ability to flex offerings opportunistically Full range of product offer
Slide 12: Credit Highlights
Investor Presentation – April 2021 CREDIT HIGHLIGHTS
Slide 13: Key Credit Highlights
Investor Presentation – April 2021 KEY CREDIT HIGHLIGHTS Driving Confidence in Financial Performance Experienced Management Team Robust and Growing Free Cash Flow Generation Well Positioned for Long-term Stable Growth Prudent Capital Allocation and Conservative Leverage Nimble Platform Allows for Su
Slide 14: Strong Trajectory of Net Sales and EBITDA Growth
Investor Presentation – April 2021 STRONG TRAJECTORY OF NET SALES AND EBITDA GROWTH o 2020 Sales reflect: o RV and Marine growth driven by outdoor recreation trends, accelerated by pandemic and need for channel inventory replenishment o Industrial and MH growth driven by shift from urban to suburban
Slide 15: Robust and Growing Free Cash Flow Generation
Investor Presentation – April 2021 $9 $18 $31 $49 $65 $91 $123 $166 $248 $240 $326 $7 $9 $13 $14 $40 $59 $82 $77 $166 $165 $128 88% 66% 67% 46% 71% 73% 79% 60% 81% 80% 49% 3.4x 1.6x 1.3x 1.1x 1.5x 2.2x 2.2x 2.1x 2.6x 2.4x 2.4x 0% 20% 40% 60% 80% 100% $0 $50 $100 $150 $200 $250 $300 $350 2010 2011 20
Slide 16: Prudent Capital Allocation and Conservative Leverage
Investor Presentation – April 2021 PRUDENT CAPITAL ALLOCATION AND CONSERVATIVE LEVERAGE 16 o Patrick’s capital allocation strategy is centered around the utilization of strong cash flows, a disciplined leverage position, and capital resources to grow and reinvest in the business model o The Company
Slide 17: Successful Strategic Investment Followed by Continued Organic Growth
Investor Presentation – April 2021 $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 SUCCESSFUL STRATEGIC INVESTMENT FOLLOWED BY CONTINUED ORGANIC GROWTH 17 1 Defined as net sales o
Slide 18: Deep and Long-Standing Customer Relationships
Investor Presentation – April 2021 DEEP AND LONG-STANDING CUSTOMER RELATIONSHIPS Customer Relationship Overview Patrick Major Customers Patrick’s long relationships, size, scale and JIT inventory make the Company an integrated part of their customers’ production processes In the RV market, Patri
Slide 19: Favorable Demographic Trends
Investor Presentation – April 2021 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
Slide 20: Nimble Platform Allows for Successful Navigation Through Economic Distress
Investor Presentation – April 2021 NIMBLE PLATFORM ALLOWS FOR SUCCESSFUL NAVIGATION THROUGH ECONOMIC DISTRESS 20 Flexible, high variable cost business model 1 Leadership team with deep industry experience 2 Uniquely positioned for near- and long-term shift toward outdoor activities 3 Disciplined cos
Slide 21: Increased Focus on ESG Responsibilities and Best Practices
Investor Presentation – April 2021 Social Governance Environmental Focused on ESG to Drive Long-term Shareholder Value INCREASED FOCUS ON ESG RESPONSIBILITIES AND BEST PRACTICES o Established transportation / resource usage program to reduce costs, fuel consumption and emissions o Building leading s
Slide 22: Experienced Management Team
Investor Presentation – April 2021 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 exp
Slide 23: Management's Continued Transformation of Patrick
Investor Presentation – April 2021 MANAGEMENT’S CONTINUED TRANSFORMATION OF PATRICK 12020 EBITDA includes pro forma acquisition adjustments | 2 Calculated as operating cash flow less capex | 3 As of 12/31/2015 and 12/31/2020 respectively Transformed through organic growth and acquisitions into a sca
Slide 24: Well Positioned for Long-Term Stable Growth
Investor Presentation – April 2021 WELL POSITIONED FOR LONG-TERM STABLE GROWTH 24 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 pro
Slide 25: Appendix
Investor Presentation – April 2021 APPENDIX
Slide 26: Non-GAAP Reconciliations
Investor Presentation – April 2021 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
Slide 27: Patrick Product Lines: RV Exterior
Investor Presentation – April 2021 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 Addition
Slide 28: Patrick Product Lines: RV Interior
Investor Presentation – April 2021 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 E
Slide 29: Patrick Product Lines: Marine
Investor Presentation – April 2021 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, Towe
Slide 30: Patrick Product Lines: Manufactured Housing
Investor Presentation – April 2021 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 Co
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