Patrick Industries(US:PATK) Seeking Alpha·2024-01-07 07:26Company Overview - Patrick Industries is a supplier of components for RVs, manufactured homes, and marine sectors, led by CEO Todd Cleveland since 2009 [2] - The company has successfully integrated multiple acquisitions annually, benefiting from growth in the RV market and increased spending from baby boomers and millennials [2] Financial Performance - In 2022, Patrick Industries reported a 20% increase in sales to $4.88 billion, with operating profits of $496 million, slightly over 10% of sales [4] - Net earnings for 2022 were $328 million, equating to $13.49 per share, despite a $1.15 per share charge related to convertible notes [4] - The company experienced a decline in fourth-quarter revenues by 17% to $952 million, with GAAP earnings down to $1.68 per share [4] Recent Trends - Shares of Patrick Industries have seen significant volatility, dropping to $40 in 2022 due to inflation and growth concerns, but recovering to around $100 per share [4][6] - The business mix has diversified, with RV sales now accounting for less than half of total sales, while growth has been observed in the marine sector [4] 2023 Outlook - First quarter sales for 2023 fell by a third to $900 million, with quarterly EBITDA down to $97 million [5] - The company is projected to generate about $3.5 billion in annual sales and approximately $200 million in realistic earnings for the year, translating to around $9 per share [5] - A recent increase in the quarterly dividend to $0.55 per share reflects increased confidence, yielding just over 2% [5] Market Position - Patrick Industries is viewed as a long-term investment opportunity, with shares recently rallying about 40% since early November [6] - The company’s diversified business model and lower earnings multiples position it favorably in the market, despite facing inflationary pressures and economic concerns [6]