Patrick Industries, Inc. recently reported financial results for the fourth quarter and full year ended December 31, 2022.
Net sales in the fourth quarter of 2022 decreased $196 million, or 17%, to $952 million from $1.1 billion in the fourth quarter of 2021. Wholesale unit shipments declined 47% in the RV industry, which represents 43% of our revenue in the quarter. Revenue growth in the company’s marine and manufactured housing end markets partially offset the revenue decrease in the RV end market.
“We are proud of our team’s performance during the fourth quarter and full year as we navigated extremely dynamic market conditions and capitalized on our size, scale, flexibility, and resources in our efforts to service our customers at the highest level,” said Andy Nemeth, Chief Executive Officer. “Our business model served us well in 2022, as we reported record full year revenues and profits, despite the RV OEM production recalibration that began in the second half of the year. Our ongoing efforts to strategically diversify our business continue to bear fruit as our fourth quarter results help demonstrate our portfolio’s resilience and ability to mitigate declines within individual end markets.”
Net income was $40 million, a decrease of 34%, compared to $61 million in the fourth quarter of 2021.
“Our investments into the marine OEM market and marine aftermarket helped bolster Patrick’s results in the fourth quarter and full year,” said president Jeff Rodino. “Additionally, we have continued to invest in our infrastructure and culture to support our strategic plan and solidify the Company’s foundation for future growth. With new and younger buyers in the leisure lifestyle spaces and the continued limited inventory of affordable housing, we see the potential for long-term growth across our business.”
Full Year 2022 Results
Net sales of $4.9 billion for the full year 2022 increased $804 million, or 20%, from $4.1 billion in 2021, reflecting strong demand for RVs in the first half of the year coupled with more consistent marine and housing demand throughout the year, as well as contributions from acquisitions completed during 2021 and 2022.
“We could not have achieved these results without the diligence, discipline, and dedication of our team members and the partnership we have with our customers and suppliers,” said Nemeth. “We are aggressively managing our working capital in alignment with projected demand levels and remain committed to working towards optimizing our capital allocation, which is key to our long-term growth strategy. We are confident in our business’s ability to generate free cash flow, as reflected in our decision to increase our quarterly dividend 36% to $0.45 per share and increase our share repurchase authorization to $100 million in the fourth quarter. We remain focused on meeting potential challenges ahead in 2023 and positioning our business for long-term success as we continue to invest in our infrastructure and strive to solidify Patrick as the first-choice component solutions provider in the leisure lifestyle and housing markets.”