Patrick Industries(US:PATK)2023-02-10 02:53Financial Data and Key Metrics Changes - Operating cash flow increased 63% to $412 million for the full year [1] - Full-year revenue was $4.9 billion, marking a 20% increase or $804 million [58] - Net income for the full year increased 46% to $328 million, with diluted earnings per share at $13.49, a 40% improvement year-over-year [96] - Gross margin for the year increased by 210 basis points to 21.7% [110] Business Line Data and Key Metrics Changes - RV revenues decreased 39% to $411 million in Q4, representing 43% of consolidated sales [98] - Marine revenues increased 35% to $255 million in Q4, contributing 27% to consolidated sales [100] - Full-year Marine revenue increased 56% to $1 billion, while RV revenue increased 8% to $2.6 billion [108] - MH revenue for Q4 grew 3% to $155 million and increased 29% to $705 million for the year [109] Market Data and Key Metrics Changes - RV wholesale unit shipments decreased 47% to approximately 78,000 units in Q4 [98] - Estimated industry wholesale unit shipments increased 11%, while retail unit shipments declined by an estimated 23% to 25% [70] - MH estimated wholesale unit shipments decreased 12% [72] - Total residential housing starts for Q4 decreased 16% [103] Company Strategy and Development Direction - The company aims to leverage its investment and diversification strategy to add durable value to its portfolio [57] - Focus on automation and technological improvements to drive scalability and operational efficiencies [83] - Continued emphasis on strategic acquisitions to enhance market presence and revenue durability [77][141] Management's Comments on Operating Environment and Future Outlook - Management expects retail trends to suggest a decline in RV retail shipments of approximately 15% to 20% for 2023 [85] - The company anticipates that macroeconomic headwinds will continue to impact consumers in 2023 [65] - Management remains optimistic about the long-term prospects for the RV industry, supported by consumer interest in leisure lifestyles [68] Other Important Information - The company repurchased approximately $77 million in shares and paid $33 million in dividends for a total of $110 million returned to shareholders [2] - The Board increased the authorized amount of the share repurchase program to $100 million [2] - Capital expenditures were $80 million for the year, with plans to invest $65 million to $75 million in 2023 [83][141] Q&A Session All Questions and Answers Question: What are you hearing from the OEMs regarding production for the first quarter? - Management noted that OEMs are adjusting production levels to manage dealer inventories effectively [146][147] Question: Can you discuss the expectations for wholesale and retail shipments? - Management expects retail shipments to slightly exceed wholesale shipments, with wholesale anticipated to be down approximately 30% to 35% [143][148] Question: How do you view the impact of commodity pricing on your business? - Management indicated that commodity prices have stabilized, and they are passing through some pricing decreases to customers [124]