Patrick Industries, Inc. · NASDAQ:PATK
Patrick Industries — Investor Presentation (January 2022)
30 slides from Patrick Industries's investor presentation, Jan 12, 2022
Slide 1: January 2022 Investor Presentation
p January 2022 Investor Presentation
Slide 2: Forward Looking Statements
2 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 forward-looking statements inv
Slide 3: Patrick Industries Snapshot
3 Patrick Industries Snapshot (NASDAQ: PATK) Net Sales $3.7B Operating Cash Flow $195M Liquidity $454M1 Pro-Forma Adjusted EBITDA $480M2 Free Cash Flow $141M3 Total Net Leverage 2.2x4 Q3’2021 LTM Highlights 1959 Founding 11,000+ Team Members $1.9B Market Cap 80+ Brands Value Proposition Strong portf
Slide 4: Diversified Market Platform: Strong Portfolio Unifies Historically Fragmented Markets
4 Marine MH IndustrialRV Diversified Market Platform Strong Portfolio Unifies Historically Fragmented Markets Record OEM backlogs Dealer inventories at lowest level seen in years New buyer traffic remains strong Persistent strength in retail demand coupled with depleted channel inventories p
Slide 5: Scaled and Diversified Value-added Player Across Multiple End Markets
59% 16% 14% 11% 1 Q3’21 LTM EBITDA includes pro forma acquisition adjustments | 2 Calculated as operating cash flow less capex |3As of 12/31/2016 and 11/4/21, respectively | 4 Actual # of employees Scaled and Diversified Value-added Player Across Multiple End Markets 2016 Q3’21 LTM Δ Net Sales $1.2B
Slide 6: Leisure Lifestyle
90,003 79,177 29,504 48,069 89,517 48,500 28,071 36,565 40,212 41,085 49,739 47,778 44,278 43,480 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21E Key Highlights Retail channel continues to be depleted at a remarkable rate Record OEM backlogs New buyer traffic and activity remain strong Completed
Slide 7: Marine
$36 $112 $274 $329 $339 $584 2016 2017 2018 2019 2020 LTM Competitive Advantage Geographically situated to provide JIT inventory management to OEMs Fully integrated into manufacturers’ design process Highly engineered and specialized products offer differentiated solutions to OEMs Growing af
Slide 8: RV
Competitive Advantage Largest OEMs rely on Patrick for high degree of content Breadth of offering to provide packaged solutions not offered by competitors Our extensive supply chain fuels the explosive growth in the leisure lifestyle markets RV Net Sales ($M) Content Per Unit $879 $1,128 $1,43
Slide 9: Housing & Industrial
A wide range of components related to residential housing, commercial and institutional markets Residential Housing Commercial Construction Fixtures Furniture 9 Key Highlights Demand from big box retailers remains as homeowners continue spending on home upgrades Limited availability of housing a
Slide 10: Manufactured Housing
Competitive Advantage Capable of leveraging production capabilities in other end markets Low-cost supplier of multiple products Full range of product offerings allows Patrick to supply across the entire value chain Nationwide manufacturing and distribution footprint allows Patrick to provide
Slide 11: Industrial
59%16% 14% 11% Competitive Advantage “One stop shop” for customers with our diverse manufacturing capabilities Full range of product offerings allows Patrick to supply across the entire value chain Home improvement and DIY activity driven by work and study from anywhere environment Industrial
Slide 12: Leadership with Deep Industry Experience
12 Andy Nemeth CEO Jeff Rodino President Kip Ellis COO Jake Petkovich CFO Industry Experience: 29 years 27 years 24 years 25 years Driving Patrick to Be a Leading Diversified Player Across its End Markets 100+ years of industry experience spanning across multiple economic cycles Management team
Slide 13: M&A Criteria and Filters for Successful Strategic Investments
Strong Leadership Team and Cultural Fit Executable Cost and Revenue Synergies Geographic / Market Expansion Market Leadership EPS Accretion in First Full Year ROIC > Cost of Capital Accretive to Profit Margins and Revenue Growth Strategic Criteria M&A Criteria and Filters for Successful Strategic In
Slide 14: 11.2 11.2 11.2 9.6 9.6 10.9 2020 2025 2026+ RV Owners 5 Year Intenders
11.2 11.2 11.2 9.6 9.6 10.9 0 5 10 15 20 25 30 35 2020 2025 2026+ RV Owners 5 Year Intenders 6+ Year Intenders 14 • More than 1/3 of those who have purchased new and pre-owned powerboats in 2020 were first-time boat buyers1 • 70% of prospective boat buyers will make their purchase within 12 months7
Slide 15: Environmental Social Governance
15 Environmental Social Governance • Wood dust being reclaimed into materials used for pellets supplying heating processes • Rolling out a corporate campaign making our building more sustainable through minimizing paper, improving our recycling system • Pioneer Partner for Care Camps • Supporting nu
Slide 16: Strong Trajectory of Net Sales and Adj. EBITDA
$56 $86 $120 $90 $97 $202 2016 2017 2018 2019 2020 LTM $2.43 $3.48 $4.93 $3.85 $4.20 $8.66 16 Profitability Driven by Growth in Investment and Higher Margin Products and Leveraging of Fixed Costs Strong Trajectory of Net Sales and Adj. EBITDA $138 $200 $280 $250 $326 $480 $0 $50 $100 $150 $200 $250
Slide 17: Strong Liquidity Profile
17 2.0x 1.8x 2.4x 2.3x 2.4x 2.2x 2016 2017 2018 2019 2020 LTM 9/26/21 Net Debt(1) / Pro forma Adjusted EBITDA(2)Highlights 9/26/21 LTM Return on Assets 8.6% Accounts Receivable Turnover 15.8x Inventory Turnover 8.1x Current Ratio 2.1x Avg. Cash Conversion Cycle 51.1 Days No Major Debt Maturities Unt
Slide 18: Robust Free Cash Flow Generation
$138 $200 $280 $250 $326 $480 $82 $78 $166 $164 $128 $141 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% $0 $100 $200 $300 $400 $500 $600 2016 2017 2018 2019 2020 LTM 9/26/21 Pro-Forma Adj. EBITDA Free Cash Flow Total Leverage 18 $11 $18 $30 $21 $25 $38 $4 $4 $4 $7 $7 $6 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0
Slide 19: Prudent Capital Allocation and Conservative Leverage
1 Total Leverage = Net Debt / Adj. EBIDTA | 2 Liquidity defined as Revolver availability (net of outstanding Letters of Credit) plus Cash and Cash Equivalents Total Leverage1: 2.0x 1.8x 2.4x 2.3x 2.4x Liquidity2: $174M $163M $412M $551M $315M Capital Allocation Strategy Deploy strong cash flows to h
Slide 20: Patrick is Positioned for Continued Growth
Execute on strategic acquisitions in primary markets New product development and product line extensions Expand into new geographic regions Long-term secular growth across all end markets & favorable demographics Leading market position in key product categories Cross-pollinate sales across customer
Slide 21: Appendix
Appendix
Slide 22: Non-GAAP Reconciliations: Free Cash Flow
Fiscal Year Ended December 31, LTM 9/26/212016 2017 2018 2019 2020 Cash Flow from Operations $97 $100 $200 $192 $160 $195 Less: Capital Expenditures (15) (22) (34) (28) (32) (54) Free Cash Flow $82 $78 $166 $164 $128 $141 22 Reconciliation of Cash Flow from Operations to Free Cash Flow ($ in million
Slide 23: Non-GAAP Reconciliations: Net Debt
Fiscal Year Ended December 31, LTM 9/26/212016 2017 2018 2019 2020 Total Debt $273 $354 $631 $192 $818 $1,105 Less: Cash & Cash Equivalents (6) (3) (7) (139) (45) (45) Net Debt $267 $351 $624 $53 $773 $1,060 23 Reconciliation of Net Debt ($ in millions) Non-GAAP Reconciliations Use of Non-GAAP Finan
Slide 24: End Market Product Categories
Single-Section Homes Multi-Section Homes ASP: $53,200 | 45% of Market ASP: $104,000 | 55% of Market 24 TOWABLE Shipments: 91% Wholesale | 68% Retail Value MOTORIZED Shipments: 9% Wholesale | 32% Retail Value Travel Trailer | ASP: $25,500 Fifth Wheel | ASP: $54,900 Class A | ASP: $206,400 Class B & C
Slide 25: Key Product Categories
Fiberglass and Plastic Thermoformed Helm Systems Wiring and Wire Harnesses Electrical Systems and Components Fabricated Aluminum and Steel Components Boat Covers, Towers, Tops and Frames Anchoring, Docking and Boarding Vinyl and Paper Laminated Products Surface, Granite and Quartz Countertops Vinyl,
Slide 26: Patrick Product Lines: RV Exterior
26 Exterior Speakers Paint & Paint Mask LED Lighting Aluminum & FRP Side Walls Laminated Side Walls Motion Sensing Lights RV Grills & Accessories Front & Rear Caps Bow Trusses Dash Panels Fender Skirts RV Power Cords & Inlets Roof Coating Solar Panels Butyl & Putty Tape Lithium Batteries LP Tanks Ad
Slide 27: Patrick Product Lines: RV Interior
27 Hardwood Accessories Window Trim Slide Trim – Foam, Hardwood, Wrapped Under Cabinet Lighting Tile Cabinet Hardware Drawer Fronts & Sides Speakers Electronics Closet Hardware Closet & Passage Doors Lighting Mattresses Fiberglass Bath Fixtures & Shower Doors Vanity/Wall Mirrors Microwaves Laminate
Slide 28: Patrick Product Lines: Marine
28 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 Ladder Chairs & Pedestals Rub Rails Bow Rail Floor
Slide 29: Patrick Product Lines: Housing and Industrial
29 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 Shingles o Ventilation System & Ridge Cap o Fel
Slide 30: Patrick Industries, Inc.
ow PATRICK | | https://www.facebook.com/PatrickIndustries/ https://www.instagram.com/patrickindustries/?hl=en in| Patrick Industries, Inc. PATRICKIND.COM
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