On this page of StockholderLetter.com we present the 4/1/2024 shareholder letter from PATRICK INDUSTRIES INC — ticker symbol PATK. Reading current and past PATK letters to shareholders can bring important insights into the investment thesis.

 •  4/1/2024 Letter Continued (Full PDF)
 •  4/10/2023 PATK Stockholder Letter
 •  4/1/2025 PATK Stockholder Letter
 •  3/30/2026 PATK Stockholder Letter
 •  More "Auto Parts" Category Stockholder Letters
 •  PATK Benford's Law Stock Score = 64

PATK 4/1/2024 Shareholder/Stockholder Letter Transcript:

Annual
Report
2023
RV
MARINE
POWERSPORTS
HOUSING

Selected Financial Data
(thousands except per share amounts)
2023
Net sales
2022
$3,468,045
$4,881,872
$4,078,092
782,233
1,059,938
801,194
Warehouse & delivery expenses
143,921
163,026
139,606
Selling, general & administrative expenses
299,418
327,513
253,547
260,200
496,170
351,712
142,897
328,196
224,915
6.50
13.49
9.63
431,008
673,596
530,774
2,562,448
2,782,471
2,650,731
Total debt
1,038,125
1,298,414
1,360,625
Shareholders    equity
1,045,337
955,169
767,557
408,672
411,738
252,130
1.90
1.44
1.17
Gross pro   t
Operating income
Net income
Diluted net income per common share
Proforma adjusted EBITDA (1)
Total assets
Net cash provided by operating activities
Cash dividends paid per common share
(1)
2021
Proforma adjusted EBITDA is a non-GAAP    nancial measure.
Investor Information
Net Sales ($ Millions)
Net Income ($ Millions)
Diluted Net Income per
Common Share
2019
2020
2019
2020
2019
2020
2021
2022
2023
2021
2022
2023
2021
2022
2023
$3,468
$143
$6.50
Working Capital ($ Millions)
Stock Price At December 31st
Operating Cash Flows
($ Millions)
2019
2020
2019
2020
2019
2020
2021
2022
2023
2021
2022
2023
2021
2022
2023
Annual Report     2023
$471
$100.35
$409

Dear
Shareholder


Against a dynamic macroeconomic
background our Company achieved record
gross margin and free cash    ow     a
testament to the strength and efficiency
of our team and the    exibility of our
operations. In 2023, we continued to
prepare our Company for future pro   table
growth, including the strategic acquisition
of Patrick Marine Transport, and optimizing
our balance sheet and capital structure to
welcome Sportech to the Patrick family in
early 2024. With our largest acquisition to
date in early 2024, we have enhanced our
Full Solutions Model to further exemplify
excellence from customer service to design
and delivery.
We focused on investing in our people and
our business, laying the groundwork to
accelerate our transformation ahead.

Solution-based Innovation: Our Advanced
Product Group unites two centers of
excellence, engineering and innovation,
to accelerate collaborative product
development with OEMs.

Strategic Diversi   cation: The past few
years have shown the resilience of our
increasingly diversi   ed portfolio, enabling
us to thrive in an ever-changing economic
environment and setting the stage
for further expansion in the Outdoor
Enthusiast markets.

Investing in Our People: Our team members
are our greatest asset, and we   ve taken our
investment in their growth and development
to a new level to ensure we continue to attract
and retain top talent.

Diligent Financial Management: We have
maintained a disciplined capital allocation
strategy, bolstering our resilience and
clearing the path to future pro   table growth.
As we move forward, we will continue to assess
the impact of economic shifts on consumer
behavior. We are con   dent in the bench strength
of our team and our agility which enables
us to seize strategic opportunities and drive
shareholder value.
Looking ahead, we aim to cement our role as
the supplier of choice to the Outdoor Enthusiast
markets. The great outdoors is not just a
destination; it is a place where passions are
discovered, bonds are built, and community
is created. Our commitment to empowering
enthusiasts remains steadfast.
Together, we will embrace the challenges
and harness the opportunities that lie ahead,
reinforcing our pledge to deliver value to you, our
shareholders, and to the communities we serve.
Andy L. Nemeth
Chief Executive Officer

2023
Highlights
FREE CASH FLOW
Annual Report     2023
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CASH FLOW
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Achieved record gross margin and generated
free cash    ow (non-GAAP    nancial measure)
of $350 million.

Generated $409 million in operating cash
   ows, reinforcing our strong liquidity position
of $780 million and empowering us to take
strategic advantage of opportunities while
continuing to return cash to shareholders.

Maintained a strong balance sheet that
included a $260 million repayment of debt
and a $158 million inventory reduction,
further strengthening our    nancial    exibility.
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Returned $61 million to shareholders in the
form of stock repurchases and dividends; our
Board increased our dividend to $0.55 per
share.

Launched Patrick   s Advanced Product Group,
exemplifying our dedication to solutionbased innovation by uniting engineering
and innovation teams to accelerate product
development and enhance collaboration with
OEM partners.

Patrick   s philanthropic efforts have delivered
transformative experiences to thousands
of people, from the achievement of home
ownership, to experiencing the healing power
of the outdoors.
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TO ACQUISITIONS, CAPEX, STOCK
REPURCHASES, AND DIVIDENDS
TO SHAREHOLDERS

4/1/2024 Letter Continued (Full PDF)

 

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