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Patrick Industries(PATK) - 2024 Q4 - Annual Results
PATKPatrick Industries(PATK)2025-02-06 13:33

Financial Performance - Fourth quarter net sales increased 8% to 846millioncomparedto846 million compared to 781 million in Q4 2023, driven by a 12% improvement in Housing end market revenue and acquisitions[4] - Operating income decreased 31% to 40million,withanoperatingmarginof4.740 million, with an operating margin of 4.7%, down 260 basis points year-over-year; adjusted operating margin was 5.2%[5] - Net income for Q4 2024 was 15 million, or 0.42perdilutedshare,comparedto0.42 per diluted share, compared to 31 million, or 0.94perdilutedshareinQ42023;adjusteddilutedEPSwas0.94 per diluted share in Q4 2023; adjusted diluted EPS was 0.52[5] - Full year 2024 net sales reached 3.7billion,a73.7 billion, a 7% increase from 2023, with adjusted EBITDA of 452 million, up 6%[10] - Net income for the year ended December 31, 2024, was 138,401,aslightdecreasefrom138,401, a slight decrease from 142,897 in 2023[21] - Basic earnings per share for the fourth quarter of 2024 was 0.45,downfrom0.45, down from 0.96 in the fourth quarter of 2023[21] - For the year ended December 31, 2024, net income was 138,401thousand,slightlydownfrom138,401 thousand, slightly down from 142,897 thousand in 2023, with adjusted net income increasing to 146,242thousandfrom146,242 thousand from 143,418 thousand[34] Cash Flow and Dividends - Free cash flow for 2024 was 251million,with251 million, with 55 million returned to shareholders through dividends and share repurchases[11] - Free cash flow for the year ended December 31, 2024, was 251,159,downfrom251,159, down from 349,685 in 2023[33] - The company reported a net cash provided by operating activities of 326,841fortheyearendedDecember31,2024,comparedto326,841 for the year ended December 31, 2024, compared to 408,672 in 2023[33] - The company declared a quarterly cash dividend of 0.40pershare,payableonMarch3,2025[14]AcquisitionsandMarketPresence−Thecompanycompletedtwokeyacquisitionsin2024:Sportech,LLCandRecPro,enhancingitspresenceinthePowersportsandOutdoorEnthusiastmarkets[6]−Lookingahead,thecompanyisoptimisticaboutgrowthopportunitiesintheOutdoorEnthusiastspaceandplanstoinvestininventoryinanticipationofincreasedRVdemandin2025[13]−RevenuefromtheRVsectoraccountedfor420.40 per share, payable on March 3, 2025[14] Acquisitions and Market Presence - The company completed two key acquisitions in 2024: Sportech, LLC and RecPro, enhancing its presence in the Powersports and Outdoor Enthusiast markets[6] - Looking ahead, the company is optimistic about growth opportunities in the Outdoor Enthusiast space and plans to invest in inventory in anticipation of increased RV demand in 2025[13] - Revenue from the RV sector accounted for 42% of total revenue, with a 3% increase in wholesale RV industry unit shipments[7] Debt and Assets - Total debt at the end of Q4 2024 was approximately 1.3 billion, with a net leverage ratio of 2.7x; available liquidity was around 804million[12]−Totalassetsincreasedto804 million[12] - Total assets increased to 3,020,954 as of December 31, 2024, compared to 2,562,448in2023[24]−Totalcurrentliabilitiesincreasedto2,562,448 in 2023[24] - Total current liabilities increased to 353,615 in 2024 from 308,496in2023[24]−Thecompany’sgoodwillandintangibleassetsincreasedto308,496 in 2023[24] - The company’s goodwill and intangible assets increased to 1,600,125 in 2024, up from 1,288,546in2023,indicatingpotentialgrowththroughacquisitions[24]ProfitabilityMetrics−GrossprofitfortheyearendedDecember31,2024,was1,288,546 in 2023, indicating potential growth through acquisitions[24] Profitability Metrics - Gross profit for the year ended December 31, 2024, was 835,890, up from 782,233in2023,reflectingagrossmarginimprovement[21]−Operatingincomeforthefourthquarterof2024decreasedto782,233 in 2023, reflecting a gross margin improvement[21] - Operating income for the fourth quarter of 2024 decreased to 39,592, down 30.9% from 57,316inthesamequarterof2023[21]−OperatingmarginforQ42024decreasedto4.757,316 in the same quarter of 2023[21] - Operating margin for Q4 2024 decreased to 4.7% from 7.3% in Q4 2023, while the adjusted operating margin was 5.2% compared to 7.3% in the previous year[34] - The adjusted operating margin for the year ended December 31, 2024, was 7.2%, slightly down from 7.5% in 2023[34] Other Financial Adjustments - The company incurred transaction costs of 4,998 thousand for the year ended December 31, 2024, which were not present in the previous year[34] - The loss on extinguishment of debt contributed 2,549thousandtoboththefourthquarterandtheyearendedDecember31,2024,withnosuchlossreportedinthepreviousyear[34]−Thecompanyreportedafair−valueinventorystep−upof2,549 thousand to both the fourth quarter and the year ended December 31, 2024, with no such loss reported in the previous year[34] - The company reported a fair-value inventory step-up of 2,166 thousand for Q4 2024, compared to 87thousandinQ42023[34]−ThetaximpactofadjustmentsfortheyearendedDecember31,2024,was87 thousand in Q4 2023[34] - The tax impact of adjustments for the year ended December 31, 2024, was (2,694) thousand, compared to $(176) thousand in 2023[34] - The company experienced a three-for-two stock split on December 13, 2024, affecting the prior year periods' earnings per share calculations[34]