The following is a summary of the Patrick Industries, Inc. (PATK) Q1 2024 Earnings Call Transcript:
Financial Performance:
Patrick Industries reported Q1 revenues of $933 million, an increase of 4%.
Net income improved by 16% to $35 million and net income per diluted share was $1.59.
After adjustment for acquisition costs and purchase accounting adjustments, Q1 net income was $39 million and diluted earnings per share rose by 31% to $1.79.
Operating margin improved to 7.0%, and adjusted EBITDA margin enhanced to 11.9%.
The company generated $391 million of free cash flow for the trailing 12 months, contrasting to $352 million in the same period last year.
The total net liquidity at the end of Q1 was $413 million, comprising $18 million cash on hand and $395 million unused capacity on a credit facility.
Business Progress:
RV revenues increased by 15% in Q1, while marine revenues rose by 35%, illustrating positive business progress in these sectors.
The acquisition of Sportech enhances Patrick Industries' footprint in the Powersports sector, strategically positioning it for future growth.
The company returned $13 million in dividends and held $78 million for share buybacks per the plan at Q1 end.
Despite a 3% Q1 industry decline, acquisition growth was up by 5% and organic growth by 2%.
Maintaining operational discipline and prioritizing innovation remain at the forefront of the business, which bodes well for future growth and stability.
The company also remains focused on strategic acquisitions with a good liquidity position. Investments in new innovations and product developments, particularly in the recreational and utility sectors, are anticipated to drive future growth.
Guided by their goal of being the supplier of choice in the outdoor enthusiast space, the company is poised to adapt, grow, and evolve across multiple industries.
More details: Patrick Industries IR
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