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• Fourth Quarter Revenue: $846 million, an increase of 8%.

• Full Year Revenue: $3.7 billion, an increase of 7%.

• Adjusted Net Income per Diluted Share (Q4): $0.52.

• Adjusted Net Income per Diluted Share (Full Year): $4.34.

• Gross Margin (Q4): 22.1%.

• Gross Margin (Full Year): 22.5%.

• Operating Margin (Q4): 4.7% GAAP, 5.2% adjusted.

• Operating Margin (Full Year): 6.9% GAAP, 7.2% adjusted.

• Adjusted EBITDA (Q4): $89 million, margin of 10.6%.

• Adjusted EBITDA (Full Year): $452 million, margin of 12.2%.

• Free Cash Flow (Full Year): $251 million.

• Net Leverage: 2.7 times.

• Available Liquidity: $804 million.

• RV Revenue (Full Year): $1.6 billion, an increase of 8%.

• Marine Revenue (Full Year): $571 million, a decrease of 27%.

• Powersports Revenue (Full Year): $352 million, an increase of 189%.

• Housing Revenue (Full Year): $1.2 billion, an increase of 10%.

• SG&A Expenses (Q4): $81 million, an increase of 20%.

• SG&A Expenses (Full Year): $326 million, an increase of 9%.

• Amortization Expense (Full Year): $96 million, an increase of 22%.

• Cash Provided by Operations (Full Year): $327 million.

• Purchases of Property, Plant, and Equipment (Full Year): $76 million.

• Dividend Increase: 9% to $0.40 per share.

• Warning! GuruFocus has detected 8 Warning Signs with PATK.

Release Date: February 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Patrick Industries Inc (NASDAQ:PATK) reported an 8% increase in sales for the fourth quarter, reaching $846 million.

• The company successfully expanded its presence in the powersports space through the acquisition of Sportech and enhanced its aftermarket capabilities with the acquisition of RecPro.

• Patrick Industries Inc (NASDAQ:PATK) completed a debt refinancing that improved liquidity, reduced the cost of fixed-rate debt, and extended the maturity profile.

• The company maintained solid profitability in 2024, driven by market share gains and strong performance in the housing businesses, particularly in manufactured housing.

• Patrick Industries Inc (NASDAQ:PATK) has a strong balance sheet with approximately $804 million in net liquidity, providing flexibility for strategic opportunities and shareholder returns.

Negative Points

• The marine market experienced a decline, with fourth-quarter revenues down from $147 million in 2023 to $122 million in 2024.

• Operating expenses increased significantly, with SG&A expenses up 20% and amortization expenses up 26% in the fourth quarter, primarily due to acquisitions.

• The company faced a mix shift towards smaller, more affordable units, impacting gross margins and overall profitability.

• Marine wholesale shipments declined by an estimated 25% for the full year, reflecting continued softness in the market.

• Patrick Industries Inc (NASDAQ:PATK) anticipates a mid-single-digit decline in powersports unit shipments for 2025, indicating potential challenges in this segment.