Patrick Industries, Inc. Reports Fourth Quarter and Full Year 2024 Financial Results

Patrick Industries, Inc. (“Patrick” or the “Company”), a leading component solutions provider for the Outdoor Enthusiast and Housing markets, reported financial results for the fourth quarter and year ended December 31, 2024.

Fourth Quarter and Full Year 2024 Highlights

(compared to Fourth Quarter and Full Year 2023 unless otherwise noted)

Net sales for the fourth quarter and full year increased 8% to $846 million and 7% to $3.7 billion, respectively, reflecting the contribution of acquisitions, and higher revenue from our Housing and RV end markets.
Operating margin for the fourth quarter and full year was 4.7% and 6.9%, respectively. Adjusted operating margin¹ for the fourth quarter and full year was 5.2% and 7.2%, respectively.
Diluted earnings per share (EPS) for the fourth quarter and full year 2024 was $0.42 and $4.11, respectively. Adjusted diluted EPS¹ for the fourth quarter and full year 2024 was $0.52 and $4.34, respectively.
Reported and adjusted diluted EPS¹ for the fourth quarter and full year 2024 included an estimated $0.02 per share and $0.10 per share, respectively, related to the dilutive impact of our convertible notes and related warrants in the periods.
Full year 2024 adjusted EBITDA¹ of $452 million increased 6% and full year 2024 adjusted EBITDA margin¹ decreased 10 basis points to 12.2%.
Free cash flow¹ for 2024 was $251 million. Patrick returned $55 million to shareholders in 2024 in the form of dividends and share repurchases.
During 2024, Patrick strengthened its Powersports platform through the acquisition of Sportech, LLC in January, and significantly expanded its Outdoor Enthusiast aftermarket presence with the September acquisition of RecPro.
In the fourth quarter, the Company amended and extended the maturity of its senior credit facility and issued $500 million aggregate principal amount of 6.375% Senior Notes due 2032. The Company redeemed its $300 million 7.50% Senior Notes due 2027 with a portion of the proceeds.
In November, the Company increased its share repurchase authorization to $200 million and quarterly cash dividend by 9%. Patrick executed a three-for-two stock split in December.

Fourth quarter net sales increased 8% to $846 million compared to $781 million in the fourth quarter of 2023. The improvement in sales reflected the contribution of acquisitions completed during the year, a 12% improvement in Housing end market revenue and market share gains. The improvement in sales was partially offset by lower revenue from our Marine end market due to lower marine industry wholesale shipments.

Operating income of $40 million decreased $17 million, or 31%, compared to the fourth quarter of 2023. Operating margin decreased 260 basis points to 4.7%, reflecting higher amortization related to acquisitions and our strategic decision to maintain production capacity to enhance our ability to serve customers as they prepare for the upcoming selling season. On an adjusted basis¹, operating margin was 5.2%.

Net income was $15 million or $0.42 per diluted share in the fourth quarter of 2024 compared to $31 million or $0.94 per diluted share in the same period last year. On an adjusted basis¹, net income was $18 million or $0.52 per diluted share in the fourth quarter of 2024. Adjusted diluted EPS¹ includes the dilutive impact of our convertible notes and related warrants, or an estimated $0.02 per share. Adjusted EBITDA¹ was $89 million and adjusted EBITDA margin¹ was 10.6% in the fourth quarter of 2024 compared to adjusted EBITDA¹ of $100 million and adjusted EBITDA margin¹ of 12.8% in the same period last year.

“Our team continued to execute in 2024 with a steadfast commitment to excellence and innovation, addressing evolving customer needs while advancing our long-term strategic objectives,” said Andy Nemeth, Chief Executive Officer. “As we navigated dynamic markets facing demand and interest rate pressures, we prioritized optimizing our operations and elevating our customer first expectations, presence and capabilities. Last year was strategically significant, as we completed two key acquisitions: Sportech, which solidifies our platform in the Powersports market, and RecPro, which meaningfully expands our presence in the Outdoor Enthusiast aftermarket space. We also bolstered our liquidity and financial flexibility by expanding and extending our credit facility and by refinancing a portion of our debt, which extended our maturity horizon and reduced the average interest rate of our fixed rate debt, supporting our strong foundation to capitalize on future opportunities and drive shareholder value in 2025 and beyond.”

Jeff Rodino, President – RV, said, “Last year, we continued to see diligent dealer inventory management due to high floorplan costs and uncertain consumer demand. Looking at 2025, we believe there are promising trends occurring in our RV market as the industry prepares for the upcoming selling season. While our experience suggests that RV tends to be the first of our Outdoor Enthusiast markets to improve after a down cycle, we will closely monitor the impact of interest rates and consumer confidence on all of our end markets and continue to drive our business for long-term profitable growth.”

Fourth Quarter 2024 Revenue by Market Sector

(compared to Fourth Quarter 2023 unless otherwise noted)

RV (42% of Revenue)

Revenue of $358 million increased 1% while wholesale RV industry unit shipments increased 3%.
Full year content per wholesale RV unit increased 1% to $4,870. Compared to the trailing twelve-month period through the third quarter of 2024, content per wholesale RV unit was flat.

Marine (14% of Revenue)

Revenue of $122 million decreased 17% while estimated wholesale powerboat industry unit shipments decreased 20%. Our Marine end market revenue previously included Powersports revenue, which we began to report separately following the Sportech acquisition. End market revenue and content per unit have been adjusted to reflect this change for the relevant periods.
Full year estimated content per wholesale powerboat unit decreased 3% to $3,967. Compared to the trailing twelve-month period through the third quarter of 2024, content per wholesale powerboat unit increased 1%.

Powersports (9% of Revenue)

Revenue of $78 million increased 228%, driven primarily by the acquisition of Sportech.

Housing (35% of Revenue, comprised of Manufactured Housing (“MH”) and Industrial)

Revenue of $288 million increased 12%; wholesale MH industry unit shipments increased 15%; total housing starts decreased 6%, with single-family housing starts decreasing 5% and multifamily housing starts decreasing 9%.
Full year content per wholesale MH unit increased 4% to $6,604. Compared to the trailing twelve-month period through the third quarter of 2024, content per wholesale MH unit increased 1%.

Full Year 2024 Results

Net sales of $3.7 billion increased 7% compared to 2023 as a result of strategic acquisitions completed during the year and higher revenue from our Housing and RV end markets, partially offset by lower Marine end market revenue.

Operating income of $258 million decreased 1% compared to 2023 and GAAP reported operating margin was 6.9%. Adjusted operating margin¹ was 7.2%, a decrease of 30 basis points compared to 2023.

Net income of $138 million decreased 3% in 2024 compared to $143 million in 2023, while diluted earnings per share decreased 5% to $4.11 compared to $4.33 in the prior year. Adjusted net income¹ was $146 million and adjusted diluted EPS¹ was $4.34. Adjusted diluted EPS¹ included an estimated $0.10 per share related to the dilutive impact of our convertible notes and related warrants in the period. Adjusted EBITDA¹ for 2024 was $452 million, an increase of 6% compared to 2023.

Balance Sheet, Cash Flow and Capital Allocation

Cash provided by operations for full year 2024 was $327 million compared to $409 million in 2023, primarily due to increasing our inventories in the fourth quarter of 2024 to ensure we are in the best position to support our customer’s needs in anticipation of a RV demand recovery in 2025. Purchases of property, plant and equipment for full year 2024 totaled $76 million, up from $59 million in 2023, reflecting continued investments in automation and technology initiatives. For the full year 2024, business acquisitions totaled $412 million, primarily related to the acquisition of Sportech in the first quarter and RecPro during the third quarter. Free cash flow¹ in 2024 was $251 million compared to $350 million in 2023.

In alignment with our capital allocation strategy, we returned $18 million to shareholders in the fourth quarter of 2024, consisting of $5 million in opportunistic repurchases of approximately 60,000 shares and $13 million in cash dividends. For the full year, we returned $55 million to shareholders including $50 million in cash dividends to our shareholders and $5 million in opportunistic share repurchases.

Our total debt at the end of the fourth quarter of 2024 was approximately $1.3 billion, resulting in a total net leverage ratio of 2.7x (as calculated in accordance with our credit agreement). Available liquidity, comprised of borrowing availability under our senior credit facility and cash on hand, was approximately $804 million.

Business Outlook and Summary

“We see significant opportunity across the Outdoor Enthusiast space and are optimistic about the long-term growth potential of our company and the markets we serve,” continued Mr. Nemeth. “We have continued to make strategic investments in our business, including our automation initiatives and the creation of our Advanced Product Group, which highlights our commitment to forward-looking innovation and delivering cutting-edge product solutions to our customers. As we enter 2025, we remain nimble and well-positioned to support our markets and the scalability needs of our customers. We have utilized our cash flows to invest in inventory in anticipation of potential increased production levels in our RV markets, and have also focused on retaining key talent and resources in anticipation of our end markets improving. Looking ahead, we are optimistic about our end markets, favorable demographic trends, the earnings power of our business, our strong balance sheet and cash flow, and the unwavering commitment of our team members who are key to our continued momentum in 2025.”

For full results click here.

About Patrick Industries, Inc.

Patrick Industries (NASDAQ: PATK) is a leading component solutions provider for the RV, Marine, Powersports and Housing markets. Founded in 1959, Patrick is based in Elkhart, Indiana, employing approximately 10,000 team members throughout the United States.

Source: Patrick Industries, Inc.

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