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Q1 2025 Earnings Presentation May 1, 2025
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2 Forward-Looking Statements 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,” “anticipates,” “intends,” “plans,” “believes,” “seeks” and similar expressions. Forward-looking statements include information with respect to financial condition, results of operations, business strategies, operating efficiencies or synergies, competitive position, industry projections, growth opportunities, acquisitions, plans and objectives of management, markets for the common stock and other matters. These forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from either historical or anticipated results depending on a variety of factors. These risks and uncertainties include, in addition to other matters described in this presentation, and without limitation: adverse economic and business conditions, including cyclicality and seasonality in the industries we sell our products and inflationary pressures, challenges and risks associated with importing products, such as the imposition of price caps, or the imposition of trade restrictions or tariffs on any materials or products used in the operation of our business, the impacts of future pandemics, geopolitical tensions or natural disaster on the overall economy, our sales, customers, operations, team members and suppliers. Further information concerning the Company and its business, including risk factors that potentially could materially affect the Company’s financial results are discussed under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission on February 20, 2025. We caution readers not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and we disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this presentation or to reflect any change in our expectations after the date of this presentation or any change in events, conditions or circumstances on which any statement is based. USE OF NON-GAAP FINANCIAL MEASURES This presentation contains non-GAAP financial measures. These measures, the purposes for which management uses them, why management believes they are useful to investors, and a reconciliation to the most directly comparable GAAP financial measures can be found in the Appendix of this presentation. All references to profit measures and earnings per share on a comparable basis exclude items that affect comparability.
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3 Patrick (NASDAQ: PATK) is a leading component solutions provider for the RV, Marine, Powersports and Housing markets NET SALES $1.0B POWERSPORTSRV HOUSING $479M Revenue & % of Net Sales MARINE OUTDOOR ENTHUSIAST OUTDOOR ENTHUSIASTOUTDOOR ENTHUSIAST Q1’25 $66M 6.5% OPERATING INCOME & MARGIN ADJUSTED EBITDA & MARGIN 1 $116M 11.5% FREE CASH FLOW TTM 1,2 $251M 1 Non-GAAP metric: Refer to appendix for reconciliation to closest GAAP metric | 2 TTM = trailing twelve months 48% $149M Revenue & % of Net Sales 15% $81M Revenue & % of Net Sales 8% $295M Revenue & % of Net Sales 29%
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DIVERSIFICATION JOURNEY CONTINUES 4 1 2 3 4 5 Strategic diversification increases total addressable market and improves resiliency Poised to capitalize on long-term secular growth trends and favorable demographics Entrepreneurial spirit, innovation and full-solutions model enhance capabilities and customer experience Strong financial foundation to seize profitable opportunities while operating from a position of strength Highly-experienced leadership team passionate about the Outdoor Enthusiast lifestyle $ in millions, except per share data FY 2019 Q1 2025 TTM ∆ Wholesale RV Unit Shipments 406,070 345,640 (15%) Wholesale Marine Shipments 1 189,945 141,868 (25%) Total Net Sales $2,337 $3,786 +62% Total RV Revenue $1,287 $1,683 +31% Total Marine Revenue* $329 $564 +71% Total Powersports Revenue* - $351 NM Total Housing Revenue $721 $1,188 +65% Gross Margin 18.1% 22.7% +460 bps Adjusted Operating Margin 2 6.6% 7.1% +50 bps Adjusted Diluted EPS 2,3 $2.57 $4.27 +66% Adjusted EBITDA Margin 2 10.1% 12.1% +200 bps Free Cash Flow 2 $165 $251 +52% KEY STRATEGIC TAKEAWAYS 1 Company Estimate | 2 Non-GAAP metric: Refer to appendix for reconciliation to closest GAAP metric | 3 Periods prior to Q4-24 reflect the impact of the three-for-two stock split paid in December 2024 | * In 2019, Powersports sales were included in Marine sales
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5 Highlights Q1 2025 Net sales grew 7% y/y, driven by an increase in RV and Housing revenue, offset by lower revenue in Marine and Powersports • RV wholesale unit shipments improved 14% y/y in the first quarter in preparation for peak selling season • Marine revenue declined 4% y/y on a 10% decrease in estimated wholesale powerboat unit shipments • Powersports revenue fell 2%, reflecting softer demand across the recreation/sport segment of the market • Housing revenue improved 7%, driven by a 4% increase in estimated MH CPU1 and continued MH wholesale unit shipment growth Operating cash flow improved 14% to $40 million and free cash flow was $20 million 2 in the quarter • Returned over $22 million to shareholders in the form of share repurchases and dividends during the first quarter of 2025 • Completed the acquisitions of Elkhart Composites and Medallion Instrumentation Systems, furthering our commitment to a full-solutions model 1CPU = Content per wholesale MH unit for the trailing twelve-month period | 2 Non-GAAP metric: Refer to appendix for reconciliation to closest GAAP metric Q1 ORGANIC GROWTH 4% 1% 2% Q1 2024 Revenue Acquisition Industry Organic Q1 2025 Revenue Net Sales Growth +7% $933M $1,003M
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Quarterly Financial Overview $900 $921 $866 $781 $933 $1,017 $919 $846 $1,003 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 $ in millions NET SALES GROSS & ADJUSTED OPERATING MARGIN 1 $98 $114 $113 $100 $111 $130 $121 $89 $116 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 ADJUSTED NET INCOME & DILUTED EPS 1, 2 $ in millions ADJUSTED EBITDA & MARGIN 1 $31 $42 $40 $31 $39 $48 $41 $18 $38 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 10.8% 12.4% 13.1% 12.8% 11.9% 12.8% 13.2% 10.6% 11.5% 1 Non-GAAP metric: Refer to appendix for reconciliation to closest GAAP metric | 2 Periods prior to Q4-24 reflect the impact of the three-for-two stock split paid in December 2024 $0.91 $1.30 $1.20 $0.94 $1.19 $1.44 $1.20 $0.52 $1.11 21.6% 22.8% 23.0% 22.9% 21.9% 22.8% 23.1% 22.1% 22.8% Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Gross Margin 6.3% 8.2% 8.2% 7.3% 7.0% 8.3% 8.1% 5.2% 6.5% Adj. Operating Margin $ in millions, except per share data 6
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Q1 2025 Financial Performance NET SALES & GROSS MARGIN $111 $116 Q1 2024 Q1 2025 ADJUSTED EBITDA 1 $59 $66 Q1 2024 Q1 2025 OPERATING INCOME & MARGIN 6.4% 6.5% $1.06 $1.11 Q1 2024 Q1 2025 DILUTED EPS 2 $1.19 $1.11 Q1 2024 Q1 2025 ADJUSTED DILUTED EPS 1,2 7.0% 6.5% Q1 2024 Q1 2025 ADJUSTED OPERATING MARGIN 1 Q1 2024 Q1 2025 $933 $1,003 21.9% 22.8% $ in millions, except per share data RV Powersports Marine Housing 1 Non-GAAP metric: Refer to appendix for reconciliation to closest GAAP metric | 2 Q1 2024 reflects the impact of the three-for-two stock split paid in December 2024 7
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Q1 2025 Performance by End Market
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91 CPU = Content per wholesale unit on a trailing twelve-month basis | 2 RVIA | 3 Company estimate based on data published by SSI MARINE POWERSPORTS HOUSINGRV MARKETS CONTENT PER UNIT 1 Estimated Dealer Inventory Impact in Q1’25: ~26,200 units SHIPMENTS Q1 2024 Q1 2025 +14% (7)% $479M REVENUE 14% 48% % OF Q1 NET SALES $4,870 FLAT Q1 2025 TTM CPU WHOLESALE 2 RETAIL 3 vs. Q1 2024 vs. Q1 2024
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10 MARINE POWERSPORTS HOUSINGRV MARKETS CONTENT PER UNIT 1 Estimated Dealer Inventory Impact in Q1’25: ~5,800 units SHIPMENTS 2 WHOLESALE RETAIL Q1 2024 Q1 2025 (10)% (5)% $149M REVENUE (4%) 15% % OF Q1 NET SALES $3,979 Q1 2025 TTM CPU 1 CPU = Content per wholesale unit on a trailing twelve-month basis | 2 Company estimates based on data published by the National Marine Manufacturers Association (NMMA) and SSI FLAT vs. Q1 2024 vs. Q1 2024
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11 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 $81M REVENUE (2%) 8% % OF Q1 NET SALES QUARTERLY POWERSPORTS REVENUE ($ in millions) MARINE POWERSPORTS HOUSINGRV MARKETS vs. Q1 2024
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HOUSING STARTS Q1 2024 Q1 2025 12 1 CPU = Content per MH wholesale unit on a trailing twelve-month basis | 2 Company estimates based on data published by the Manufactured Housing Institute (MHI) | 3 U.S. Census Bureau CONTENT PER MH UNIT 1 MH SHIPMENTS 2 (2%) $295M REVENUE 7% 29% % OF Q1 NET SALES MARINE POWERSPORTS HOUSINGRV MARKETS MH WHOLESALE Q1 2024 Q1 2025 +6% HOUSING STARTS 3 $6,671 4% Q1 2025 TTM CPU vs. Q1 2024 vs. Q1 2024 Starts in thousands
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13 POWERSPORTS Sportech attachment rates improving on premium utility SxS vehicles OEMs have been supporting dealers through disciplined production and other activities, such as floor plan assistance Broad use cases contributed to utility segment remaining more resilient MARINE OEMs and dealers continue to collaborate to keep inventory levels lean with targeted restocking Improved mix toward premium, higher- engineered categories, including ski and wake Major boating peers have reported interest in the boating lifestyle remains positive RV Despite seasonal inventory build, dealer inventory appears healthy as dealers prepare for the upcoming selling season Ongoing investments such as composite solutions help drive share gains despite a continued preference for smaller, entry-level units HOUSING Affordable housing demand remains strong, and inventory remains limited MH demand remains solid as OEMs have improved curb appeal, options and financing availability End Market Trends OUTDOOR ENTHUSIAST MARKETS Q1 2025 MARINE POWERSPORTS HOUSINGRV MARKETS As clarity improves surrounding the macroeconomic environment, we expect consumers and dealers to react more positively.
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14 Balance Sheet & Liquidity Q1 2025 1 As defined by credit agreement COVENANTS AND RATIOS1 Consolidated Net Leverage Ratio – 2.7x Consolidated Secured Net Leverage Ratio – 0.43x versus 2.75x maximum Consolidated Interest Coverage Ratio – 6.70x versus minimum 3.00x NET LEVERAGE1 ($ in millions) Total Debt Outstanding $1,442.2 Less: Cash and Debt Paid as Defined by the Credit Agreement 130.0 Net Debt $1,312.2 Pro Forma Adj. EBITDA $478.1 Net Debt to Pro Forma Adj. EBITDA 2.7x LIQUIDITY ($ in millions) Total Revolver Credit Capacity $875.0 Less: Total Revolver Used (including outstanding letters of credit) 217.0 Unused Credit Capacity $658.0 Add: Cash on Hand 86.6 Total Available Liquidity $744.6 Strong balance sheet and significant liquidity to support investments and pursue attractive growth opportunities DEBT STRUCTURE AND MATURITIES • $125.0M Term Loan ($123.4M o/s), scheduled quarterly installments; balance due October 2029 • $875.0M ($210.0M o/s) Senior Secured Revolver, due October 2029 • $258.7M 1.750% Convertible Senior Notes, due December 2028 • $350.0M 4.750% Senior Notes, due May 2029 • $500.0M 6.375% Senior Notes, due November 2032
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FISCAL YEAR 2025 OUTLOOK RV Wholesale Unit Shipments 1 334K 310K - 330K ~350K RV Retail Unit Shipments 354K2 Down MSD - HSD% Flat Marine Wholesale Powerboat Unit Shipments 146K2 Down LSD% Up 5% - 10% Marine Retail Powerboat Unit Shipments 165K2 Down HSD - LDD% Flat Powersports Organic Content - Up HSD% Up MSD% Powersports Wholesale Shipments - Down LDD% Down 10% MH Wholesale Unit Shipments 1 103K Up MSD% Up 10% - 15% New Housing Starts 1 1.4M Down 10% Flat - Up 5% FY 2024 FY 2025 Estimate Prior Estimate End Market Outlook 15 Financial Outlook Adjusted Operating Margin 3 7.2% 7.0% - 7.3% Up 70 - 90 bps Operating Cash Flows $327M $350M - $370M $390M - $410M Capital Expenditures $76M $70M - $80M $75M - $85M Free Cash Flow $251M $270M+ $305M+ Tax Rate 22.5% 24% - 25% FY 2024 FY 2025 Estimate Prior Estimate 1 Wholesale shipment data provided by RVIA, MHI, and U.S. Census Bureau | 2 Company estimates based on data from NMMA and SSI | 3 Non-GAAP metric: Refer to appendix for reconciliation to closest GAAP metric
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Q1 2025 Non-GAAP Reconciliations
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17 Use of Non-GAAP Financial Measures This presentation contains non-GAAP financial measures. Management believes that, when considered together with reported amounts, these measures are useful to investors and management in understanding our ongoing operations and in the analysis of ongoing operating trends. These measures should be considered in addition to, and not as replacements for, the most comparable GAAP measure. • Earnings before interest, taxes, depreciation and amortization (“EBITDA”), pro forma adjusted EBITDA, adjusted EBITDA margin, adjusted operating margin, adjusted net income, adjusted diluted earnings per common share, and net debt to pro forma adjusted EBITDA are non-GAAP financial measures. In addition to reporting financial results in accordance with accounting principles generally accepted in the United States, we provide non-GAAP operating results adjusted for certain items and other one-time items. • We adjust for the items listed above in all periods presented, unless the impact is clearly immaterial to our financial statements. • Content per unit metrics are generally calculated using our market sales divided by Company estimates based on third-party measures of industry volume. • We utilize the adjusted results to review our ongoing operations without the effect of these adjustments and for comparison to budgeted operating results. We believe the adjusted results are useful to investors because they help them compare our results to prior periods and provide important insights into underlying trends in the business and how management oversees our business operations on a day-to-day basis. • We calculate free cash flow by subtracting cash paid for purchases of property, plant and equipment from net cash provided by operating activities. • Figures may not sum due to rounding.
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18 Non-GAAP Reconciliations Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 RECONCILIATION OF QUARTERLY OPERATING MARGIN TO ADJUSTED OPERATING MARGIN Operating margin 6.2% 8.2% 8.2% 7.3% 6.4% 8.3% 8.1% 4.7% 6.5% Acquisition related fair-value inventory step-up 0.1% -% -% -% 0.1% -% -% 0.2% -% Acquisition related transaction costs -% -% -% -% 0.5% -% -% -% -% Loss on extinguishment of debt -% -% -% -% -% -% -% 0.3% -% Adjusted operating margin 6.3% 8.2% 8.2% 7.3% 7.0% 8.3% 8.1% 5.2% 6.5% ($ in millions, except per share data) 2019 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q1 2025 TTM RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME TO ADJUSTED DILUTED EARNINGS PER COMMON SHARE 1 Net income $90 $30 $42 $40 $31 $35 $48 $41 $15 $38 $142 + Acquisition related fair-value inventory step-up - 1 - - - 1 - - 2 - 2 +Acquisition related transaction costs - - - - - 5 - - - - - + Loss on extinguishment of debt - - - - - - - - 3 - 3 - Tax impact of adjustments - - - - - (2) - - (1) - (1) Adjusted net income $90 $31 $42 $40 $31 $39 $48 $41 $18 $38 $145 Diluted earnings per common share $2.57 $0.90 $1.30 $1.20 $0.94 $1.06 $1.44 $1.20 $0.42 $1.11 $4.17 Acquisition related transaction costs, net of tax - - - - - 0.11 - - - - 0.05 Acquisition related fair-value inventory step-up, net of tax - 0.01 - - - 0.02 - - 0.05 - - Loss on extinguishment of debt, net of tax - - - - - - - - 0.05 - 0.06 Adjusted diluted earnings per common share $2.57 $0.91 $1.30 $1.20 $0.94 $1.19 $1.44 $1.20 $0.52 $1.11 $4.27 1 Periods prior to Q4-24 reflect the impact of the three-for-two stock split paid in December 2024
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19 Non-GAAP Reconciliations ($ in millions) 2019 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q1 2025 TTM RECONCILIATION OF NET INCOME TO EBITDA TO ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN Net income $90 $30 $42 $40 $31 $35 $48 $41 $15 $38 $142 + Depreciation & amortization 63 36 36 36 37 40 41 42 43 43 169 + Interest expense, net 37 18 18 17 15 20 20 20 19 19 78 + Income taxes 28 8 15 15 11 4 16 14 6 8 44 EBITDA $218 $92 $112 $108 $94 $100 $126 $117 $82 $108 $433 + Stock-based compensation 15 5 3 6 6 5 4 5 2 5 17 + Acquisition related transaction costs - - - - - 5 - - - - - + Acquisition related fair-value inventory step-up - 1 - - - 1 - - 2 - 2 + Loss on extinguishment of debt - - - - - - - - 3 - 3 + Loss (gain) on sale of property, plant and equipment 2 - - - - - - - - 2 2 Adjusted EBITDA $235 $98 $114 $113 $100 $111 $130 $121 $89 $116 $456 Net sales $2,337 $900 $921 $866 $781 $933 $1,017 $919 $846 $1,003 $3,786 Adjusted EBITDA Margin 10.1% 10.8% 12.4% 13.1% 12.8% 11.9% 12.8% 13.2% 10.6% 11.5% 12.1%
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20 Non-GAAP Reconciliations ($ in millions) 2019 Q1 2025 TTM Q1 2025 RECONCILIATION OF FREE CASH FLOW Net cash provided by operating activities $192 $332 $40 Less: purchases of property, plant and equipment (28) (80) (20) Free Cash Flow $165 $251 $20 2019 2024 Q1 2025 TTM RECONCILIATION OF OPERATING MARGIN TO ADJUSTED OPERATING MARGIN Operating margin 6.6% 6.9% 7.0% Acquisition related fair-value inventory step-up -% 0.1% -% Acquisition related transaction costs -% 0.2% -% Loss on extinguishment of debt -% -% 0.1% Adjusted operating margin 6.6% 7.2% 7.1% ($ in millions) Q1 2025 TTM RECONCILIATION OF NET INCOME TO EBITDA TO PRO FORMA ADJUSTED EBITDA Net income $141.5 + Depreciation & amortization 168.9 + Interest expense, net 78.5 + Income taxes 44.2 EBITDA $433.1 + Stock-based compensation 16.6 + Acquisition pro forma, transaction- related expenses & other 28.5 Pro Forma Adjusted EBITDA $478.1