Patrick Industries, Inc. Reports Second Quarter 2024 Financial Results

Financial Performance - Net sales increased by 10% to $1.02 billion, driven by a 17% increase in RV revenue and an 11% increase in Housing revenue, offsetting a 30% decline in Marine revenue [1][3] - Operating income rose to $85 million, a 12% increase from $76 million in the same quarter last year, with an operating margin of 8.3% [4] - Net income increased by 13% to $48 million, with diluted earnings per share rising by 11% to $2.16 [5] Adjusted Metrics - Adjusted diluted earnings per share for the first six months of 2024 increased by 20% to $3.95 [5] - Adjusted EBITDA increased by 14% to $130 million, with an adjusted EBITDA margin of 12.8% [1][9] - Adjusted operating margin improved by 40 basis points to 7.7% for the first six months of 2024 [4][24] Revenue Breakdown by Market Sector - RV revenue accounted for 44% of total revenue, increasing by 17% to $450 million, while wholesale RV industry unit shipments increased by 7% [6][8] - Marine revenue, which represents 16% of total revenue, decreased by 30% to $158 million, with estimated wholesale powerboat industry unit shipments down by 27% [7] - Powersports revenue surged by 185% to $104 million, primarily due to the acquisition of Sportech [8] - Housing revenue, comprising 30% of total revenue, increased by 11% to $305 million, with estimated wholesale manufactured housing unit shipments up by 19% [8] Cash Flow and Balance Sheet - Cash flow from operations for the first six months of 2024 was $173 million, slightly down from $178 million in the prior year [9] - Free cash flow on a trailing twelve-month basis was $348 million [9][23] - The company maintained a total net leverage ratio of 2.6x and liquidity of $519 million at the end of the second quarter [11][12] Strategic Outlook - The company expects continued market share gains and strategic acquisitions to enhance performance as end markets recover [12] - Investments in automation and technology initiatives are aimed at driving organic growth and improving operational efficiencies [6][12]