Patrick Industries (PATK) Investor Presentation - Slideshow

Company Overview - PATK operates as a key component manufacturer and supplier to the RV, Marine, Manufactured Housing, and Industrial Markets, with $2.3 billion in revenue and $164 million in Free Cash Flow in Q2 2019 LTM[9] - The company's vision is to leverage its brand platform, manufacturing & distribution capabilities, diversified product portfolio, deep customer relationships, operating scale, and strategic geographic footprint to continue growth organically and through strategic acquisitions in all of its primary markets[9] - PATK has strategically diversified its market position to align its revenue stream with wholesale and retail trends across its four primary end markets[11] Market Trends and Demographics - Favorable demographic trends in the Lifestyle & Leisure market include increased outdoor activities participation, improved connectivity with family & friends, and improved consumer savings levels[15] - In the Housing & Industrial market, the U S adult population is estimated to expand by 12 million between 2019 and 2024, with the 55+ population projected to increase 21% from 2019-2035[16] - RV market trends show 79 million household campers in the U S, with 7 million new campers since 2014, and millennials accounting for 41% of all campers[20] - Marine market trends indicate $105 billion in retail sales of new powerboats in 2018, with 37% of the U S adult population participating in recreational boating in 2017[36] - MH market trends show 9 million households with 22 million people living in manufactured homes, with an average retail price of $71,900 for a 1,426 sq ft home[46] Market Outlook and Content per Unit - The RV industry experienced a YoY decline in shipments in 2018 for the first time since 2009, but demographic indicators and economic conditions suggest continued solid end market demand[25] - PATK's addressable market in the RV sector is approximately $40 billion, with a potential content/unit of $8,000 for folding and truck campers[31, 33] - PATK's addressable market in the Marine sector is approximately $19 billion, with a potential content/unit of $9,000 for powerboats[43, 44] - PATK's addressable market in the MH sector is approximately $105 billion, with a potential content/unit of $11,000[53] Growth and Capital Allocation - PATK's capital allocation strategy centers around strong cash flows, a balanced leverage position, and capital resources to grow and reinvest in the business model[67] - The company has demonstrated the ability to source, acquire, and integrate businesses, with 42 strategic acquisitions of 57 companies from 2010-2018[74] - PATK has executed on 8 geographic expansions over the last 4 years with expansion opportunities of $500MM market potential[83]