ELKHART, Ind., May 27, 2025 /PRNewswire/ -- Patrick Industries, Inc. (NASDAQ: PATK) ("Patrick" or the "Company"), a leading component solutions provider for the Outdoor Enthusiast and Housing markets, will participate in the upcoming Baird 2025 Global Consumer, Technology & Services Conference to be held in New York, NY from June 3-5, 2025.On June 3rd, Patrick's management team will participate in a fireside chat and hold one-on-one meetings with institutional investors and analysts.Please contact Baird for ...

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Patrick Industries (PATK) Q1 2025 Earnings Call May 01, 2025 10:00 AM ET Company Participants Stephen O'Hara - Vice President of Investor RelationsAndy Nemeth - Chairman & CEOJeffrey Rodino - President of RVAndrew Roeder - CFO, Executive VP of Finance & TreasurerMichael Swartz - Director - Equity ResearchJoseph Altobello - Managing DirectorTristan Thomas - Equity Research AssociateAlexander Perry - Director, Equity ResearchAlice Wycklendt - Senior Equity Research AssociateDaniel Moore - Partner - Director o ...

Group 1: Earnings Performance - Patrick Industries reported quarterly earnings of $1.11 per share, exceeding the Zacks Consensus Estimate of $0.98 per share, but down from $1.19 per share a year ago, representing an earnings surprise of 13.27% [1] - The company posted revenues of $1 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 4.11%, compared to year-ago revenues of $933.49 million [2] - Over the last four quarters, Patrick Industries has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - Patrick Industries shares have declined approximately 7.3% since the beginning of the year, while the S&P 500 has decreased by 5.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $1.55 on revenues of $1.06 billion, and for the current fiscal year, it is $5.21 on revenues of $3.96 billion [7] Group 3: Industry Context - The Building Products - Mobile Homes and RV Builders industry, to which Patrick Industries belongs, is currently ranked in the bottom 6% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Patrick Industries' stock performance [5][6]

Financial Data and Key Metrics Changes - The company reported a 7% increase in top line growth, resulting in revenue of approximately $1,000,000,000 for the first quarter of 2025, with trailing twelve-month revenue of approximately $3,800,000,000 [5][19] - Earnings per diluted share were $1.11, which included approximately $0.05 of dilution from convertible notes and related warrants, representing a 7% decrease compared to $1.19 in the prior year period [5][22] - Gross margin improved to 22.8%, up 90 basis points from the same period last year, while operating margin on a GAAP basis increased by 10 basis points to 6.5% [20][21] Business Line Data and Key Metrics Changes - RV revenues increased by 14% to $479,000,000, representing 48% of consolidated revenue, driven by wholesale unit shipment growth and market share gains [11][19] - Marine revenues were $149,000,000, up 4% from the prior year, despite a 10% decrease in wholesale powerboat unit shipments [13][19] - Powersports revenues were $81,000,000, up 2% from the prior year, representing 8% of consolidated sales [16][19] - Housing revenues increased by 7% to $295,000,000, with manufactured housing representing 59% of housing revenue [17][19] Market Data and Key Metrics Changes - RV retail unit shipments decreased approximately 7%, while wholesale unit shipments increased 14% [12][19] - Estimated marine retail and wholesale powerboat unit shipments were 766,500 units, indicating a seasonal dealer field inventory build [14][19] - The company expects full-year RV retail unit shipments to be down mid to high single digits, with a similar outlook for marine retail [28][29] Company Strategy and Development Direction - The company completed two acquisitions in the quarter and repurchased approximately $8,500,000 of its stock, maintaining a focus on cost and working capital management [5][19] - The company is investing in its Advanced Product Group to drive innovation and strengthen customer partnerships [6][9] - The company aims to maintain flexibility and scalability in its operations to adapt to market changes and capitalize on growth opportunities [6][9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged uncertainty in the market due to global tariff headlines but expressed confidence in the long-term resilience of the outdoor enthusiast lifestyle [8][9] - The company is focused on managing its variable cost structure and maintaining strong customer relationships to navigate near-term market dynamics [9][27] - Management expects pent-up demand to drive new purchases when economic uncertainty eases [9] Other Important Information - The company reported a net leverage of 2.7 times, down from 2.8 times in the prior year, with total net liquidity of $745,000,000 [25][24] - The effective tax rate for the first quarter was 17.7%, compared to 10.6% in the prior year, primarily due to differences in tax benefits related to equity compensation [21][19] - The company is actively working to mitigate tariff impacts, with approximately 15% of its cost of goods sold exposed to tariffs [26][27] Q&A Session Summary Question: What is the current gross exposure to tariffs? - Management indicated that the gross exposure to tariffs is higher than $250,000,000 and is actively working to mitigate the impact through various strategies [35][36] Question: How much pricing will be used to offset tariff impacts? - Management stated that pricing adjustments will be made thoughtfully, focusing on line-by-line analysis to mitigate costs [39][40] Question: What is the outlook for RV shipments? - Management noted that while Q1 shipments were up 14%, retail numbers showed some caution, indicating a need for consumer confidence to improve for a positive outlook [53][54] Question: What cost levers are being utilized? - Management highlighted a focus on variable costs and fixed cost reductions, maintaining flexibility to adapt to revenue changes [61][62] Question: What is the outlook for manufactured housing? - Management expressed optimism about the manufactured housing market, citing a significant gap in affordable housing and ongoing demand [87][96]

Q1 2025 Earnings Presentation May 1, 2025 Forward-Looking Statements 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 comp ...

Financial Performance - Net sales increased by 7% to $1.0 billion, driven by a 14% growth in the RV market and a 7% growth in the Housing market, offsetting a 4% decline in Marine revenue and a 2% decline in Powersports revenue[2][4] - Operating income rose approximately 10% to $66 million, with an operating margin of 6.5%, a slight increase of 10 basis points from the previous year[3][4] - Net income increased by 9% to $38 million, or $1.11 per diluted share, compared to $35 million, or $1.06 per diluted share, in the first quarter of 2024[3][4] - Adjusted EBITDA increased by 4% to $108 million, with an adjusted EBITDA margin decreasing by 40 basis points to 11.5%[4] - Basic earnings per common share increased to $1.17 for the first quarter of 2025, compared to $1.08 for the same period in 2024, marking a rise of 8.4%[22] - Adjusted diluted earnings per share remained stable at $1.11 for the first quarter of 2025, compared to $1.19 in the same quarter of 2024[26] Cash Flow and Shareholder Returns - Cash flow from operating activities grew to $40 million, up from $35 million in the same period last year, with free cash flow on a trailing twelve-month basis at $251 million[4][7] - The company returned over $22 million to shareholders, including share repurchases of $8.5 million and quarterly dividends of $14 million[4][9] - Free cash flow for the trailing twelve months ended March 30, 2025, was $251,384 thousand, down from $390,582 thousand for the same period in 2024, indicating a decrease of 35.7%[25] Acquisitions and Market Position - Completed acquisitions of Elkhart Composites, Inc. and Medallion Instrumentation Systems, LLC, enhancing product offerings and market reach[4][5] Debt and Liabilities - Total debt at the end of the first quarter was approximately $1.4 billion, resulting in a total net leverage ratio of 2.7x[4][9] - Total current liabilities rose to $404,822 thousand as of March 30, 2025, up from $353,615 thousand at December 31, 2024, an increase of 14.5%[19] Assets and Financial Position - Total assets increased to $3,186,777 thousand as of March 30, 2025, up from $3,020,954 thousand at December 31, 2024, representing a growth of 5.5%[19] - The company reported a net cash increase of $53,000 thousand in cash and cash equivalents, ending the period with $86,561 thousand compared to $33,561 thousand at the beginning of the year[20] Economic Outlook - The company anticipates macroeconomic uncertainty due to tariff rollouts but remains committed to executing its strategic initiatives and maintaining financial flexibility[10] Market Metrics - Estimated content per wholesale RV unit remained flat at $4,870, while estimated content per wholesale MH unit increased by 4% to $6,671 compared to the prior year[8] Business Activities - The company incurred $45,915 thousand in business acquisitions and other investing activities during the first quarter of 2025, compared to $355,229 thousand in the same period of 2024[20] - Operating margin for the first quarter of 2025 was 6.5%, slightly up from 6.4% in the same quarter of 2024[26] - Adjusted EBITDA for the first quarter of 2025 was $115,570 thousand, compared to $110,943 thousand in the first quarter of 2024, reflecting a year-over-year increase of 4.7%[25] - Net income for the first quarter ended March 30, 2025, was $38,238 thousand, a 6.1% increase compared to $35,093 thousand for the same period in 2024[20]

First Quarter 2025 Highlights (compared to First Quarter 2024 unless otherwise noted) Net sales increased 7% to $1.0 billion, driven by revenue growth of 14% and 7% in the Company's RV and Housing markets, respectively, which more than offset a 4% decline in Marine revenue and a 2% decline in Powersports revenue. Operating margin increased 10 basis points to 6.5%. Adjusted operating margin1 was 6.5% compared to 7.0% in the first quarter of 2024. Net income was $38 million and diluted earnings per share (EPS ...

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Patrick Industries despite higher revenues, with a focus on how actual results will compare to estimates impacting stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected on May 1, 2025, with an estimated EPS of $0.98, reflecting a -17.7% change year-over-year, while revenues are projected at $956 million, a 2.4% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for Patrick Industries is lower than the consensus, resulting in an Earnings ESP of -8.72%, indicating a bearish sentiment among analysts [10]. Historical Performance - In the last reported quarter, Patrick Industries exceeded EPS expectations by 4%, having beaten consensus estimates three times over the last four quarters [12][13]. Stock Movement Factors - An earnings beat or miss alone may not dictate stock movement, as other factors can influence investor sentiment and stock performance [14][16].

Core Viewpoint - Patrick Industries, Inc. will release its first quarter 2025 financial results on May 1, 2025, before the market opens [1] - A conference call will be held on the same day at 10:00 a.m. Eastern Time to discuss the results and other business matters [2] Company Overview - Patrick Industries, Inc. is a leading component solutions provider serving the RV, Marine, Powersports, and Housing markets [3] - The company has been operational since 1959 and focuses on empowering manufacturers and outdoor enthusiasts [3] - Patrick Industries employs approximately 10,000 skilled team members across the United States and is headquartered in Elkhart, IN [3]