Patrick Industries, Inc., a leading provider of component solutions for the Leisure Lifestyle and Housing markets, recently reported its financial results for the fourth quarter and full year of 2022.
The results showed a decrease in net sales by 17% to $952 million compared to the fourth quarter of 2021. This was due to a 47% decline in wholesale unit shipments in the RV industry, which represents 43% of the company’s revenue, according to a press release.
However, revenue growth in the marine and manufactured housing end markets partially offset the decrease in the RV end market, demonstrating the company’s diversified portfolio of businesses.
Operating income for the fourth quarter of 2022 was $68 million, a decrease of 29% from the previous year, with an operating margin of 7.1%.
The decline in operating margin was primarily due to fixed cost absorption related to decreased sales, increased infrastructure investments, IT transformation initiatives, and an increase in amortization of intangible assets from recent acquisitions.
Net income for the quarter was $40 million, a decrease of 34% compared to the fourth quarter of 2021, with diluted earnings per share at $1.68, a 36% decrease from the same period the previous year.
The decrease was due to a non-cash reduction for the accounting treatment of convertible notes, which was repaid in full at maturity on February 1, 2023 and will not impact diluted earnings per share in 2023.
Despite the decrease in financial results, Patrick Industries’ CEO, Andy Nemeth, expressed pride in the company’s performance during the quarter and full year, stating that their business model allowed them to report record full-year revenues and profits, despite the RV OEM production recalibration that began in the second half of the year.
President Jeff Rodino also highlighted their investments in the marine OEM market and marine aftermarket, as well as their infrastructure and culture to support future growth.
With the limited inventory of affordable housing and new and younger buyers in the leisure lifestyle spaces, Patrick Industries sees potential for long-term growth across its business.
The company’s diversified portfolio and efforts to strategically diversify its business helped to mitigate the decline in individual end markets and demonstrate its resilience.
After checking out the update on Patrick Industries, it seems they’re onto something good! Diversifying and forging partnerships could really boost their standing and drive growth. Innovation is key!