Patrick Industries, Inc. (PATK) Bundle
A Brief History of Patrick Industries, Inc.
Overview
Patrick Industries, Inc. (NASDAQ: PATK), founded in 1959, is a leading component solutions provider serving the RV, Marine, Powersports, and Housing markets. Headquartered in Elkhart, Indiana, Patrick has grown through strategic acquisitions and a focus on innovation, currently employing approximately 10,000 skilled team members across the United States.
Financial Performance as of 2024
As of the third quarter of 2024, Patrick Industries reported significant financial metrics:
| Metric | Q3 2024 | Q3 2023 | 9 Months 2024 | 9 Months 2023 |
|---|---|---|---|---|
| Net Sales | $919 million | $866 million | $2.87 billion | $2.69 billion |
| Operating Income | $74 million | $71 million | $218 million | $203 million |
| Net Income | $41 million | $40 million | $124 million | $112 million |
| Diluted EPS | $1.80 | $1.81 | $5.55 | $5.09 |
| Adjusted EBITDA | $121 million | $113 million | $362 million | $325 million |
| Free Cash Flow | $277 million (TTM) | $412 million (TTM) | N/A | N/A |
Market Segment Performance
In Q3 2024, the revenue breakdown by market sector was as follows:
| Market Segment | Revenue | Percentage of Total Revenue | Year-over-Year Change |
|---|---|---|---|
| RV | $396 million | 43% | -1% |
| Marine | $136 million | 15% | -21% |
| Powersports | $87 million | 10% | +204% |
| Housing | $300 million | 32% | +13% |
Recent Acquisitions
In 2024, Patrick Industries completed the acquisition of RecPro, enhancing its position in the RV aftermarket. This acquisition is expected to create synergies across the Marine and Powersports segments, improving distribution capabilities and consumer reach.
Balance Sheet Highlights
As of September 29, 2024, Patrick Industries reported the following balance sheet metrics:
| Metric | As of September 29, 2024 | As of December 31, 2023 |
|---|---|---|
| Total Assets | $3.12 billion | $2.56 billion |
| Total Liabilities | $1.99 billion | $1.52 billion |
| Total Shareholders' Equity | $1.13 billion | $1.05 billion |
| Total Debt | $1.39 billion | $1.02 billion |
| Net Leverage Ratio | 2.6x | N/A |
Cash Flow Analysis
For the first nine months of 2024, Patrick Industries generated cash flow from operating activities of $224 million, down from $294 million in the same period of 2023. The decrease was primarily due to increased investments in working capital.
Capital expenditures in Q3 2024 totaled $18 million, reflecting continued investments in automation and technology initiatives.
A Who Owns Patrick Industries, Inc. (PATK)
Major Shareholders
As of 2024, the ownership structure of Patrick Industries, Inc. (PATK) includes a diverse group of institutional and individual investors. The following table illustrates the major shareholders and their respective ownership percentages:
| Shareholder | Type | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | Institutional | 9.5% |
| The Vanguard Group, Inc. | Institutional | 8.1% |
| Dimensional Fund Advisors LP | Institutional | 6.4% |
| State Street Corporation | Institutional | 5.7% |
| Andrew Nemeth (CEO) | Insider | 2.3% |
| Other Institutional Investors | Various | 25.0% |
| Individual Shareholders | Various | 43.0% |
Stock Performance
As of the close on December 31, 2024, the stock performance of Patrick Industries, Inc. (PATK) has shown resilience. The stock price was reported at $75.20, reflecting a year-to-date increase of 12% from the previous year. The market capitalization stood at approximately $1.7 billion.
Financial Overview
For the third quarter of 2024, Patrick Industries reported net sales of $919 million, representing a 6% increase compared to the same period in 2023. The revenue breakdown by market sector is as follows:
| Market Sector | Revenue ($ millions) | Percentage of Total Revenue |
|---|---|---|
| RV | 396 | 43% |
| Marine | 136 | 15% |
| Powersports | 87 | 10% |
| Housing | 300 | 32% |
Recent Acquisitions
In 2024, Patrick Industries completed the acquisition of RecPro, which significantly expands its position in the RV aftermarket. The acquisition was finalized on September 6, 2024, and is expected to enhance the company’s revenue streams and market share in the RV sector.
Financial Metrics
Key financial metrics for Patrick Industries as of the third quarter of 2024 are as follows:
| Metric | Value |
|---|---|
| Net Income | $40.9 million |
| Adjusted EBITDA | $121.2 million |
| Free Cash Flow | $277 million |
| Total Debt | $1.4 billion |
| Liquidity | $458 million |
Future Outlook
Patrick Industries has indicated a positive outlook for 2025, anticipating a demand inflection driven by lower interest rates and improved economic conditions. The company continues to focus on expanding its product offerings and enhancing customer experiences across its markets.
Patrick Industries, Inc. (PATK) Mission Statement
Patrick Industries, Inc. is dedicated to providing innovative component solutions for the recreational vehicle (RV), marine, powersports, and housing markets. The company aims to empower manufacturers and outdoor enthusiasts to achieve exceptional recreation experiences through a customer-focused approach that integrates design, manufacturing, distribution, and transportation.
Mission Statement Highlights
- Customer-Centric Approach: Focus on exceeding customer expectations and enhancing the customer experience.
- Innovation: Commitment to developing next-generation solutions and products.
- Market Leadership: Aiming for growth through strategic acquisitions and expanded market share.
- Operational Excellence: Emphasizing a disciplined operating model and efficient capital allocation.
Financial Overview (Q3 2024)
As of the third quarter of 2024, Patrick Industries reported robust financial performance, reflecting the effectiveness of its mission-driven strategy.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $919 million | $866 million | 6% |
| Operating Income | $74 million | $71 million | 5% |
| Net Income | $41 million | $40 million | 3% |
| Diluted Earnings per Share | $1.80 | $1.81 | -1% |
| Adjusted EBITDA | $121 million | $113 million | 7% |
| Free Cash Flow | $277 million | $412 million (TTM) | -33% |
Market Segment Performance
Patrick Industries operates across several market segments, each contributing to its overall revenue and strategic goals.
| Market Segment | Revenue (Q3 2024) | Percentage of Total Revenue | Year-over-Year Change (%) |
|---|---|---|---|
| RV | $396 million | 43% | -1% |
| Marine | $136 million | 15% | -21% |
| Powersports | $87 million | 10% | 204% |
| Housing | $300 million | 32% | 13% |
Balance Sheet Overview
As of September 29, 2024, Patrick Industries maintained a robust financial position, characterized by strong liquidity and manageable debt levels.
| Balance Sheet Item | Amount (in thousands) |
|---|---|
| Total Assets | $3,122,953 |
| Total Liabilities | $1,993,472 |
| Total Shareholders' Equity | $1,129,481 |
| Long-term Debt | $1,377,727 |
| Liquidity | $458 million |
Strategic Initiatives
In line with its mission statement, Patrick Industries is focused on several strategic initiatives:
- Enhancing product development and prototyping capabilities.
- Expanding market share through acquisitions, including the recent acquisition of RecPro.
- Investing in automation and technology to improve operational efficiencies.
- Maintaining a disciplined capital allocation strategy to maximize shareholder value.
How Patrick Industries, Inc. (PATK) Works
Business Overview
Patrick Industries, Inc. (NASDAQ: PATK) operates as a leading component solutions provider primarily for the RV, Marine, Powersports, and Housing markets. The company is headquartered in Elkhart, Indiana, and employs approximately 10,000 skilled team members across the United States.
Financial Performance
For the third quarter of 2024, Patrick Industries reported net sales of $919 million, representing a 6% increase compared to the same quarter in 2023. Year-to-date, net sales reached $2.87 billion, up from $2.69 billion in the first nine months of 2023.
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Sales | $919 million | $866 million | $2.87 billion | $2.69 billion |
| Net Income | $41 million | $40 million | $124 million | $112 million |
| Diluted Earnings per Share | $1.80 | $1.81 | $5.55 | $5.09 |
| Operating Income | $74 million | $71 million | $218 million | $203 million |
| Adjusted EBITDA | $121 million | $113 million | $362 million | $325 million |
Market Segments
The company operates across several market segments, with the following revenue distribution for Q3 2024:
- RV (43% of Revenue): Revenue of $396 million, a 1% decrease.
- Marine (15% of Revenue): Revenue of $136 million, a 21% decrease.
- Powersports (10% of Revenue): Revenue of $87 million, a 204% increase.
- Housing (32% of Revenue): Revenue of $300 million, a 13% increase.
Balance Sheet and Cash Flow
The company's balance sheet remained strong with total assets of $3.12 billion as of September 29, 2024. Total liabilities were approximately $1.99 billion, resulting in total shareholders' equity of $1.13 billion.
| Balance Sheet Item | Value |
|---|---|
| Total Assets | $3.12 billion |
| Total Liabilities | $1.99 billion |
| Total Shareholders' Equity | $1.13 billion |
For the first nine months of 2024, cash provided by operating activities was $224 million, a decrease from $294 million in the same period in 2023. Free cash flow for the trailing twelve months was $277 million.
Debt and Liquidity
Patrick Industries reported a total debt of approximately $1.4 billion with a net leverage ratio of 2.6x at the end of Q3 2024. The company had liquidity of $458 million, which includes cash and available borrowing capacity.
In October 2024, the company issued $500 million of 6.375% Senior Notes due 2032 and expanded its credit facility to $1.0 billion.
Recent Acquisitions
In September 2024, Patrick Industries completed the acquisition of RecPro, enhancing its position in the RV aftermarket. This acquisition is expected to provide significant synergies across its Marine and Powersports markets.
Future Outlook
Patrick Industries is focused on elevating customer experience, expanding market share, and pursuing accretive acquisitions. The company anticipates a potential positive demand inflection in 2025, driven by favorable economic conditions, including interest rate reductions and lower inflation levels.
How Patrick Industries, Inc. (PATK) Makes Money
Revenue Streams
Patrick Industries, Inc. generates revenue through several key market sectors, primarily focusing on the recreational vehicle (RV), marine, powersports, and housing markets. As of the third quarter of 2024, the company reported a total net sales of $919 million, an increase of 6% compared to the same period in 2023.
| Market Sector | Percentage of Revenue | Revenue (in millions) | Change from Previous Year |
|---|---|---|---|
| RV | 43% | $396 million | -1% |
| Marine | 15% | $136 million | -21% |
| Powersports | 10% | $87 million | +204% |
| Housing | 32% | $300 million | +13% |
Cost of Goods Sold and Gross Profit
The cost of goods sold (COGS) for the third quarter of 2024 was $706.9 million, leading to a gross profit of $212.5 million. This reflects a gross margin of approximately 23.1%.
Operating Income and Expenses
For the third quarter of 2024, operating income was reported at $74.4 million, with total operating expenses amounting to $138.1 million. The breakdown of operating expenses includes:
- Warehouse and delivery: $37.9 million
- Selling, general and administrative: $75.8 million
- Amortization of intangible assets: $24.4 million
Net Income and Earnings Per Share
Net income for the third quarter increased to $40.9 million, representing a 3% increase year-over-year. The diluted earnings per share (EPS) was reported at $1.80, which included a dilution effect of approximately $0.06 from convertible notes.
| Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $40.9 million | $39.6 million |
| Diluted EPS | $1.80 | $1.81 |
Adjusted Earnings
For the first nine months of 2024, adjusted net income was $128.2 million, with adjusted diluted EPS rising to $5.75, a 13% increase compared to the prior year.
Cash Flow and Capital Expenditures
Patrick Industries reported cash flow from operating activities of $224 million during the first nine months of 2024. Free cash flow on a trailing twelve-month basis stood at $277 million, reflecting a decrease from $412 million in the previous year.
Capital expenditures for the third quarter included purchases of property, plant, and equipment totaling $18 million.
Debt and Liquidity Position
As of September 29, 2024, Patrick Industries maintained a total debt of approximately $1.4 billion, with a net leverage ratio of 2.6x. The company had liquidity of $458 million, which includes cash on hand and availability under its credit facility.
Acquisitions and Strategic Growth
The recent acquisition of RecPro, completed in September 2024, is expected to enhance the company's position in the RV aftermarket. This strategic move aims to leverage synergies across various markets, including marine and powersports.
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Adjusted EBITDA | $121.2 million | $113.4 million |
| Adjusted EBITDA Margin | 13.2% | 13.1% |
Market Outlook
Patrick Industries is focused on expanding its market share through strategic acquisitions and enhancing customer experience. The company aims to capitalize on potential demand increases projected for 2025, influenced by favorable economic indicators.
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Article updated on 8 Nov 2024
Resources:
- Patrick Industries, Inc. (PATK) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Patrick Industries, Inc. (PATK)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Patrick Industries, Inc. (PATK)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.