Q1 2024 Earnings Presentation
May 2, 2024
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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, 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, 2023, filed with the Securities and Exchange Commission on February 29, 2024
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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Sales & margin growth driven by RV, Housing and acquisitions
Solid cash flow generation and strong balance sheet
Completed largest acquisition to date in the quarter
Q1 2024
Key Messages
Strategic diversification has bolstered our model's resilience
$ in millions, except per share data | FY 2019 | FY 2023 | Δ |
Wholesale RV Shipments | 406,070 | 313,174 | (23%) |
Total Net Sales | $2,337 | $3,468 | +48% |
Total RV Sales | $1,287 | $1,503 | +17% |
Total Marine Sales | $329 | $783 | +138% |
Total Housing Sales | $721 | $1,060 | +47% |
Gross Margin | 18.1% | 22.6% | +450 bps |
Operating Margin | 6.6% | 7.5% | +90 bps |
Diluted EPS | $3.85 | $6.50 | +69% |
Free Cash Flow | $165 | $350 | +112% |
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Q1 2024
Highlights
Revenue up 4% fueled by higher revenue from
RV and Housing & Sportech acquisition
- RV end market revenue increased 15%, partially due to a 9% improvement in wholesale unit shipments as dealers begin to prep for the prime selling season
- Acquisition of Sportech, LLC, which closed in January 2024 furthers strategic diversification
- Housing revenue increased 5% on higher MH wholesale shipments
- Marine revenue declined as OEMs remained disciplined on production
We continue to strategically deploy capital toward value enhancing initiatives
- Completed Sportech, LLC acquisition helping solidify our Powersports platform
- Investing in automation and innovation to improve operational efficiency and value-added component solutions for customers
Operating margin and adjusted EBITDA margin improvement driven by higher revenue, cost reduction initiatives and acquisitions
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Performance by End Market
Q1 2024
5
Q1 2024
RV remains our largest end market and we are poised and ready to support OEMS through model year change as they collaborate with dealers to showcase coming exciting product innovations.
REVENUE
$421M
% OF Q1 SALES
45%
WHOLESALE SHIPMENTS 2
85,900
CPU1
$4,859
CONTENT PER UNIT 1
$6,000 $5,000 $4,000 $3,000 $2,000 $1,000
$-
First sequential increase since Q1'23
MARKETS
RV
MARINE | POWERSPORTS | HOUSING |
1 CPU = Content per wholesale unit for the trailing twelve-month period 2 Data published by RVIA | 6 |
Q1 2024
Our Marine presence continues to deliver innovation and value-added products to our OEM and aftermarket customers. Given the significant impact of interest rates, OEMs and dealers remain cautious.
REVENUE
$155M
% OF Q1 SALES
17%
ESTIMATED WHOLESALE SHIPMENTS
38,400
ESTIMATED CPU1,2
$4,049
CONTENT PER UNIT 1,2
$5,000
$4,000
$3,000
$2,000
$1,000
$-
RV
MARKETS
MARINE
POWERSPORTSHOUSING
1 CPU = Content per wholesale unit for the trailing twelve-month period 2 Company estimates based on data published by National Marine Manufacturers Association (NMMA) | 7 |
Q1 2024
The acquisition of Sportech solidifies our Powersports platform, supporting future organic and strategic growth. This platform enables expansion of our full solutions model and further diversifies our end market exposure.
REVENUE
$83M
% OF Q1 SALES
9%
SOLID POWERSPORTS PLATFORM
RVMARINE
MARKETS
POWERSPORTS
HOUSING
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Q1 2024
Our housing business supplies component solutions to the Manufactured Housing (MH) industry and residential and industrial customers. Our foundation is built on scalability and our customer-focused strategy which enables us to meet OEM needs.
REVENUE
$275M
% OF Q1 SALES
29%
ESTIMATED MH WHOLESALE SHIPMENTS 2
24,000
ESTIMATED MH CPU1,2
$6,422
RVMARINE
MARKETS
Sequential
CONTENT PER UNIT 1,2improvement
resumed
$7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000
$-
POWERSPORTS | HOUSING |
1CPU = Content per wholesale unit for the trailing twelve-month period 2 Company estimates based on data published by Manufactured Housing Institute (MHI) | 9 |
Market Sector Trends
Q1 2024
RV
Demographic trends are positive in the RV space, with younger, more diverse groups interested in joining the RV lifestyle
OEMs gearing up for a successful model-year change as we enter prime selling season
Shipments improving after the cycle likely hit bottom in 2023
MARINE
Industry continues to invest in higher-engineered products and accessories to drive consumer interest
Long-term secular trends are favorable as people enjoy the water with family and friends
Continued softness in retail leading dealers to closely manage inventory amid higher floorplan costs
POWERSPORTS
Utility and side-by-side market remains resilient compared to broader powersports category
OEM and supplier innovation continues to drive improved utility of units in the space and customer demand
HOUSING
Interest rates continue to impact consumers' purchasing behavior and increase costs of home ownership
Solid demand for affordable housing with limited available inventory
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Disclaimer
Patrick Industries Inc. published this content on 02 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2024 12:58:22 UTC.