On this page of StockholderLetter.com we present the 4/1/2025 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.

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

PATK 4/1/2025 Shareholder/Stockholder Letter Transcript:

2024
Annual Report

Selected Financial Data
As of or for the Year Ended December 31,
($ in thousands except per share amounts)
2024
Net sales
2022
$3,715,683
$3,468,045
$4,881,872
835,890
782,233
1,059,938
155,821
143,921
163,026
Selling, general & administrative expenses
325,754
299,418
327,513
Operating income
258,040
260,200
496,170
138,401
142,897
328,196
4.11
4.33
8.99
3,020,954
2,562,448
2,782,471
Total debt
1,332,188
1,038,125
1,298,414
Shareholders    equity
1,128,366
1,045,337
955,169
326,841
408,672
411,738
1.50
1.27
0.96
Gross profit
Warehouse & delivery expenses
Net income
Diluted net income per common share (1)
Total assets
Net cash provided by operating activities
Cash dividends paid per common share
(1)
2023
(1)
Prior year periods reflect the December 2024 3-for-2 stock split
Investor Information
Net Sales ($ millions)
Net Income ($ millions)
Diluted Net Income per
Common Share
2020
2021
2022
2023
2024
2020
2021
2022
2023
2024
2020
2021
2022
2023
2024
$3,716
Working Capital ($ millions)
2020
2021
2022
2023
2024
(2)
$495
(2)
$4.11
Stock Price At December 31st
Operating Cash Flows
($ millions)
2020
2021
2022
2023
2024
2020
2021
2022
2023
2024
Non-cash current assets less accounts payable and accrued liabilities
Annual Report     2024
$138
$83.08
$327

Dear
Shareholder
Fiscal 2024 represented the continuation of our strategic investments in the future of Patrick
and in our people. Our team, guided by our BETTER Together values and culture, performed
admirably at all levels in the face of dynamic uncertainty and volatility in our end markets and
our business. I am very proud of our team   s strength, resilience and ability to turn challenges
into opportunities for future long-term value and growth.
Our team   s focus, drive, and determination in
pursuit of our goal of serving our customers and
markets at the highest level were a reflection
of their entrepreneurial spirit and proof of
their tenacity and strength. Acquisitions
continue to be a key part of our growth plan,
strategically diversifying our business within
our core end markets: RV, Marine, Powersports
and Housing. We completed two significant
acquisitions in 2024, defining Powersports as
a new end market through our purchase of
Sportech in January, and formalizing our directto-consumer foundation and strategy with the
addition of RecPro in September. Within our
Outdoor Enthusiast markets, which comprise
RV, Marine, and Powersports, original equipment
manufacturers (OEMs) remained disciplined
in their production levels, working closely with
dealers to carefully manage channel inventories.
These efforts, while challenging in the nearterm, help to ensure the long-term health of
these markets. Separately, our Housing business
outperformed expectations, further showcasing
the value of our strategic diversification efforts.
Through continued investment in our business
and our people, Patrick remains well positioned
for future growth.


New Product Development reflects our
dedication to innovation and our full solutions
model: Through the launch of our Advanced
Product Group and our sales restructuring
and focus, we have reinvigorated our
customer engagement and commitment to
long-term partnership on next generation
product development.
Higher-Margin Businesses Diversify Patrick:
We completed two key acquisitions last
year. Sportech, our largest to date, solidified
our Powersports platform, and RecPro
significantly enhanced our aftermarket
presence and ability to serve and leverage the
direct-to-consumer market.

Financial Strength: We remain focused on
generating profitable growth while maintaining
the disciplined financial position necessary to
remain steadfast in dynamic markets. In the third
quarter, we strengthened our balance sheet
by refinancing a portion of our debt, improving
terms, increasing liquidity, and extending
maturities while reducing our interest costs.

We are Enthusiasts: The heart of Patrick   s
success is driven by the passion and
entrepreneurial spirit of the people and
brands who make up our team. Our people are
enthusiasts who enjoy the outdoor lifestyle:
RV   ing, camping, boating, fishing, riding and
other pursuits that help refresh and energize the
mind, body and spirit.
Patrick   s future success lies in our ability to remain
nimble and scalable to be able to pivot quickly
and effectively, adjusting to our end markets and
the evolving needs of our valued customers. We
believe a strong team and solid financial foundation
are necessary components to achieve our growth
objectives, while maintaining our flexibility.
We will continue to focus on prudent capital
allocation centered on three key priorities: accretive
acquisitions, reinvesting in our business, and
returning value to our shareholders.
Our team remains steadfast and ready to meet
the future, serving our shareholders, our team, our
customers and the end markets and communities
we serve.
Andy L. Nemeth
Chairman and
Chief Executive Officer

2024
Highlights
SALES
$3.7B
Annual Report     2024
OPERATING
CASH FLOW
NET INCOME
$138M
$327M




Allocated capital of $412 million toward
acquisitions including Sportech, solidifying
our Powersports platform, and RecPro,
significantly enhancing our aftermarket
presence and direct-to-consumer foundation
and capabilities.
Returned $55 million to shareholders,
including $50 million in dividends and $5
million of share repurchases; we increased
our quarterly dividend by 9% to $0.40 per
share.

Executed a three-for-two stock split, which
was paid on December 13, 2024.

On December 3, 2024, Patrick held its
inaugural investor day at the Nasdaq
MarketSite in New York, highlighting our
long-term vision, growth objectives, market
share opportunity, and the strength of
organizational talent.

We believe in the importance of giving
back to the communities we live and work
in. Patrick   s philanthropic endeavors focus
on giving to those in need and empowering
our communities to engage with the great
outdoors.
Generated Free Cash Flow (a non-GAAP
financial measure) of $251 million.
FREE CASH FLOW
LIQUIDIT Y
$251M
STRATEGIC
CAPITAL
ALLO CATIONS
TO ACQUISITIONS, CAPEX, STOCK
REPURCHASES, AND DIVIDENDS
TO SHAREHOLDERS
$804M
$542M

4/1/2025 Letter Continued (Full PDF)

 

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