Third Quarter 2024 Highlights (compared to
Third Quarter 2023 unless otherwise noted)
- Net sales increased 6% to $919
million driven by a 13% increase in Housing revenue and our
first quarter acquisition of Sportech, which together more than
offset a 21% decline in Marine revenue.
- Operating margin decreased 10 basis points to 8.1%. For the
first nine months of 2024, adjusted operating margin improved 20
basis points to 7.8%.
- Net income increased 3% to $41
million. Diluted earnings per share of $1.80 included the dilutive impact of our
convertible notes and related warrants in the period, or an
estimated $0.06 per share. For the
first nine months of 2024, adjusted diluted earnings per share
increased 13% to $5.75.
- Adjusted EBITDA increased 7% to $121
million; adjusted EBITDA margin increased 10 basis points to
13.2%.
- Cash flow provided by operating activities was $224 million for the first nine months of the
year compared to $294 million in the
same period last year. Free cash flow, on a trailing twelve-month
basis, was $277 million.
- Completed the acquisition of RecPro, which significantly
increases our penetration into the RV aftermarket, while also
providing synergy opportunity for our Marine and Powersports end
markets to sell through a more advanced aftermarket distribution
channel.
- Maintained solid balance sheet and liquidity position, ending
the third quarter with a total net leverage ratio of 2.6x following
the acquisition of RecPro and liquidity of $458 million.
- Subsequent to quarter end, the Company amended and extended the
maturity of its credit facility, and also issued $500 million aggregate principal amount of 6.375%
Senior Notes due 2032. The Company plans to redeem its 7.500%
Senior Notes due 2027 with a portion of the proceeds.
- Patrick plans to host an investor day in New York City on December 3, 2024.
ELKHART,
Ind., Oct. 31, 2024 /PRNewswire/ -- Patrick
Industries, Inc. (NASDAQ: PATK) ("Patrick" or the "Company"), a
leading component solutions provider for the Outdoor Enthusiast and
Housing markets, today reported financial results for the third
quarter and nine months ended September 29, 2024.
Net sales increased 6% to $919
million, an increase of $53
million compared to the third quarter of 2023. The growth in
net sales was due to a 13% increase in Housing revenue coupled with
revenue gains from our Sportech acquisition, which closed in
January of this year. These factors more than offset a 21% decline
in Marine revenue as marine OEMs as well as OEMs across our other
Outdoor Enthusiast markets continued to maintain highly disciplined
production schedules in an effort to manage dealer inventory in
alignment with current end market demand.
Operating income of $74 million in
the third quarter of 2024 increased $3
million, or 5%, compared to $71
million in the third quarter of 2023. Operating margin of
8.1% decreased 10 basis points compared to 8.2% in the same period
a year ago, reflecting higher SG&A expenses and amortization
costs related to acquisitions. For the first nine months of 2024
compared to the same period in 2023, excluding acquisition
transaction costs and purchase accounting adjustments in both
periods, adjusted operating margin improved 20 basis points to
7.8%.
Net income increased 3% to $41
million, compared to $40
million in the third quarter of 2023. Diluted earnings per
share of $1.80 in the third quarter
of 2024 included approximately $0.06
of dilution from our convertible notes and related warrants. There
was no dilutive impact from the convertible notes in the third
quarter of 2023. For the first nine months of 2024 compared to the
first nine months of 2023, excluding acquisition transaction costs
and purchase accounting adjustments in both periods, adjusted net
income increased 14% to $128 million and adjusted diluted
earnings per share increased 13% to $5.75. Diluted earnings per share for the first
nine months of 2024 included approximately $0.10 of dilution from our 2028 convertible notes
and related warrants. The prior year period included approximately
$0.05 of dilution related to our
1.00% Convertible Senior Notes due 2023, which were repaid in
cash in February 2023.
"The Patrick team delivered another quarter of solid results
with revenue and net income growth supported by the continued
diversification of our business," said Andy
Nemeth, Chief Executive Officer. "The resilience of our
model is directly related to the dedication and talent of our
incredible team members, and the strategic investments we have made
enabling Patrick to perform well during a prolonged period of
inventory destocking that has continued to affect our Outdoor
Enthusiast end markets at different times over the last two
years."
Jeff Rodino, President — RV,
said, "This quarter, we welcomed RecPro into our family of brands,
which meaningfully expands our position in the direct-to-consumer
RV and enthusiast aftermarket. We are energized by the depth and
breadth of their product offering, the synergies across our
business, and their tremendous leadership and expertise in
e-commerce and aftermarket sales. We believe RecPro's efficient
distribution channel and significant consumer reach will
substantially enhance our ability to provide Patrick's valuable
aftermarket solutions across all of our end markets."
Third Quarter 2024 Revenue by Market
Sector
(compared to Third Quarter 2023 unless otherwise
noted)
RV (43% of Revenue)
- Revenue of $396 million decreased
1% while wholesale RV industry unit shipments increased 6%.
- Content per wholesale RV unit (on a trailing twelve-month
basis) decreased by 1% to $4,887.
Compared to the second quarter of 2024, content per wholesale RV
unit (on a trailing twelve-month basis) decreased 2%.
Marine (15% of Revenue)
- Revenue of $136 million decreased
21% while estimated wholesale powerboat industry unit shipments
decreased 23%. Our Marine end market revenue previously included
Powersports revenue, which we began to report separately following
the Sportech acquisition. End market revenue and content per unit
reflect this change for the relevant periods.
- Estimated content per wholesale powerboat unit (on a trailing
twelve-month basis) decreased 6% to $3,936. Compared to the second quarter of 2024,
estimated content per wholesale powerboat unit (on a trailing
twelve-month basis) was flat.
Powersports (10% of Revenue)
- Revenue of $87 million increased
204%, driven primarily by the acquisition of Sportech in the
first quarter of 2024.
Housing (32% of Revenue, comprised of Manufactured
Housing ("MH") and Industrial)
- Revenue of $300 million increased
13%; estimated wholesale MH industry unit shipments increased 17%;
total housing starts decreased 3%.
- Estimated content per wholesale MH unit (on a trailing
twelve-month basis) increased 1% to $6,518. Compared to the second quarter of 2024,
estimated content per wholesale MH unit increased 1%.
Balance Sheet, Cash Flow and Capital Allocation
For the first nine months of 2024, cash provided by operating
activities was $224 million compared
to $294 million for the prior year
period, with the change primarily driven by investments in working
capital. Purchases of property, plant and equipment totaled
$18 million in the third quarter of
2024, reflecting maintenance capital expenditures and continued
investments in alignment with our automation and technology
initiatives. On a trailing twelve-month basis, free cash flow
through the third quarter of 2024 was $277
million, compared to $412
million through the third quarter of 2023 when we
aggressively monetized working capital in a declining sales
environment. Our long-term debt increased approximately
$70 million during the third quarter of 2024, primarily as the
result of the RecPro acquisition, which closed on September 6, 2024.
We remained disciplined in allocating and deploying capital,
returning approximately $12 million
to shareholders in the third quarter of 2024 through dividends. We
remain opportunistic on share repurchases and had $78 million left authorized under our current
share repurchase plan at the end of the third quarter.
Our total debt at the end of the third quarter was approximately
$1.4 billion, resulting in a total
net leverage ratio of 2.6x (as calculated in accordance with our
credit agreement). Available liquidity, comprised of borrowing
availability under our credit facility and cash on hand, was
approximately $458 million.
Subsequent to the end of the quarter, we reduced our cost of
debt and increased our liquidity position by issuing $500 million of 6.375% Senior Notes due 2032 and
expanding the capacity of our credit facility to $1.0 billion, while extending the maturity date
to October 2029. We plan to use a
portion of the proceeds from these transactions to redeem our
7.500% Senior Notes on November 7,
2024. Following these transactions, the Company's next major
debt maturity will be in 2028.
Business Outlook and Summary
"Our team remains confident in the strength of our brand
portfolio, disciplined operating model, earnings power of the
business, and the profitable runway of opportunity that exists
in each of our primary end markets," continued Mr. Nemeth. "We are
intensely focusing on elevating the customer experience,
invigorating our team's entrepreneurial spirit, winning additional
market share by exceeding customer expectations, and growing the
business through accretive acquisitions while strategically
allocating capital toward automation and innovation initiatives.
Over the last year, the teams at Patrick, in collaboration with our
Advanced Product Group, have significantly expanded our product
development and prototyping activities as a way to bring
next-generation solutions to our customers over the next few years.
We are optimistic that a positive demand inflection will occur in
2025, and believe recent interest rate reductions, lower inflation
levels and continued solid economic data are important ingredients
to bring this recovery to fruition, at which point our business is
sized and scaled to pivot in alignment with our customers' needs.
We are deeply appreciative of the incredible commitment and
dedication of our team members and energized by their efforts and
drive each and every day."
Conference Call Webcast
Patrick Industries will host an online webcast of its third
quarter 2024 earnings conference call that can be accessed on the
Company's website, www.patrickind.com, under "For Investors," on
Thursday, October 31, 2024 at 10:00
a.m. Eastern Time. In addition, a supplemental earnings
presentation can be accessed on the Company's website,
www.patrickind.com under "For Investors."
About Patrick Industries, Inc.
Patrick (NASDAQ: PATK) is a leading component solutions provider
serving the RV, Marine, Powersports and Housing markets. Since
1959, Patrick has empowered manufacturers and outdoor enthusiasts
to achieve next-level recreation experiences. Our customer-focused
approach brings together design, manufacturing, distribution, and
transportation in a full solutions model that defines us as a
trusted partner. Patrick is home to more than 85 leading brands,
all united by a commitment to quality, customer service, and
innovation. Headquartered in Elkhart,
IN, Patrick employs approximately 10,000 skilled team
members throughout the United
States. For more information on Patrick, our brands, and
products, please visit www.patrickind.com.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains certain statements within the
meaning of Private Securities Litigation Reform Act of 1995 that
are forward-looking in nature. The forward-looking statements are
based on current expectations and our actual results may differ
materially from those projected in any forward-looking statement.
There can be no assurance that any forward-looking statement will
be realized or that actual results will not be significantly
different from that set forth in such forward-looking statement.
Factors that could cause actual results to differ materially from
those in forward-looking statements included in this press release
include, without limitation: adverse economic and business
conditions, including cyclicality and seasonality in the industries
we sell our products; the financial condition of our customers or
suppliers; the loss of a significant customer; changes in consumer
preferences; declines in the level of unit shipments or reduction
in growth in the markets we serve; the availability of retail and
wholesale financing for RVs, watercraft and powersports products,
and residential and manufactured homes; pricing pressures due to
competition; costs and availability of raw materials, commodities
and energy and transportation; supply chain issues, including
financial problems of manufacturers or suppliers and shortages of
adequate materials or manufacturing capacity; the challenges and
risks associated with doing business internationally; challenges
and risks associated with importing products, such as the
imposition of duties, tariffs or trade restrictions; the ability to
manage our working capital, including inventory and inventory
obsolescence; the availability and costs of labor and production
facilities and the impact of labor shortages; fuel shortages or
high prices for fuel; any interruptions or disruptions in
production at one of our key facilities; challenges with
integrating acquired businesses; the impact of the consolidation
and/or closure of all or part of a manufacturing or distribution
facility; an impairment of assets, including goodwill and other
long-lived assets; an inability to attract and retain qualified
executive officers and key personnel; the effects of union
organizing activities; the impact of governmental and environmental
regulations, and our inability to comply with them; changes to
federal, state, local or certain international tax regulations;
unusual or significant litigation, governmental investigations, or
adverse publicity arising out of alleged defects in
products, services, perceived environmental impacts, or otherwise;
public health emergencies or pandemics, such as the COVID-19
pandemic; our level of indebtedness; our inability to comply with
the covenants contained in our senior secured credit facility; an
inability to access capital when needed; the settlement or
conversion of our notes; fluctuations in the market price for our
common stock; an inability of our information technology systems to
perform adequately; any disruptions in our business due to an IT
failure, a cyber-incident or a data breach; any adverse results
from our evaluation of our internal controls over financial
reporting under Section 404 of the Sarbanes-Oxley Act of 2002;
certain provisions in our Articles of Incorporation and Amended and
Restated By-laws that may delay, defer or prevent a change in
control; adverse conditions in the insurance markets; and the
impact on our business resulting from wars and military conflicts,
such as war in Ukraine and
evolving conflict in the Middle
East.
The Company does not undertake to publicly update or revise any
forward-looking statements. Information about certain risks that
could affect our business and cause actual results to differ from
those express or implied in the forward-looking statements are
contained in the section entitled "Risk Factors" in the Company's
Annual Report on Form 10-K for the year ended December 31, 2023, and in the Company's Forms
10-Q for subsequent quarterly periods, which are filed with the
Securities and Exchange Commission ("SEC") and are available on the
SEC's website at www.sec.gov. Each forward-looking statement speaks
only as of the date of this press release, and we undertake no
obligation to update any forward-looking statement to reflect
events or circumstances occurring after the date on which it is
made.
PATRICK INDUSTRIES,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter
Ended
|
|
Nine Months
Ended
|
($ in thousands,
except per share data)
|
|
September 29,
2024
|
|
October 1,
2023
|
|
September 29,
2024
|
|
October 1,
2023
|
NET
SALES
|
|
$
919,444
|
|
$
866,073
|
|
$ 2,869,560
|
|
$ 2,686,858
|
Cost of goods
sold
|
|
706,930
|
|
666,954
|
|
2,220,897
|
|
2,083,527
|
GROSS
PROFIT
|
|
212,514
|
|
199,119
|
|
648,663
|
|
603,331
|
|
|
|
|
|
|
|
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
Warehouse and
delivery
|
|
37,865
|
|
37,664
|
|
114,053
|
|
109,540
|
Selling, general and
administrative
|
|
75,783
|
|
70,873
|
|
244,617
|
|
231,814
|
Amortization of intangible
assets
|
|
24,449
|
|
19,507
|
|
71,545
|
|
59,093
|
Total operating expenses
|
|
138,097
|
|
128,044
|
|
430,215
|
|
400,447
|
OPERATING
INCOME
|
|
74,417
|
|
71,075
|
|
218,448
|
|
202,884
|
Interest expense,
net
|
|
20,050
|
|
16,879
|
|
60,483
|
|
53,623
|
Income before
income taxes
|
|
54,367
|
|
54,196
|
|
157,965
|
|
149,261
|
Income taxes
|
|
13,501
|
|
14,646
|
|
34,122
|
|
37,181
|
NET
INCOME
|
|
$
40,866
|
|
$
39,550
|
|
$
123,843
|
|
$
112,080
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER
COMMON SHARE
|
|
$
1.88
|
|
$
1.84
|
|
$
5.71
|
|
$
5.20
|
DILUTED EARNINGS PER
COMMON SHARE
|
|
$
1.80
|
|
$
1.81
|
|
$
5.55
|
|
$
5.09
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding - Basic
|
|
21,740
|
|
21,511
|
|
21,706
|
|
21,541
|
Weighted average shares
outstanding - Diluted
|
|
22,641
|
|
21,884
|
|
22,297
|
|
22,063
|
PATRICK INDUSTRIES,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS (Unaudited)
|
|
|
|
|
|
|
|
As of
|
($ in
thousands)
|
|
September 29,
2024
|
|
December 31,
2023
|
ASSETS
|
|
|
|
|
Current
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
52,606
|
|
$
11,409
|
Trade and other
receivables, net
|
|
255,369
|
|
163,838
|
Inventories
|
|
545,445
|
|
510,133
|
Prepaid expenses and
other
|
|
59,539
|
|
49,251
|
Total current
assets
|
|
912,959
|
|
734,631
|
Property, plant and
equipment, net
|
|
369,342
|
|
353,625
|
Operating lease
right-of-use assets
|
|
205,110
|
|
177,717
|
Goodwill and intangible
assets, net
|
|
1,628,358
|
|
1,288,546
|
Other non-current
assets
|
|
7,184
|
|
7,929
|
TOTAL
ASSETS
|
|
$
3,122,953
|
|
$
2,562,448
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Current maturities of
long-term debt
|
|
$
11,250
|
|
$
7,500
|
Current operating lease
liabilities
|
|
53,335
|
|
48,761
|
Accounts
payable
|
|
189,274
|
|
140,524
|
Accrued
liabilities
|
|
125,330
|
|
111,711
|
Total current
liabilities
|
|
379,189
|
|
308,496
|
Long-term debt, less
current maturities, net
|
|
1,377,727
|
|
1,018,356
|
Long-term operating
lease liabilities
|
|
156,083
|
|
132,444
|
Deferred tax
liabilities, net
|
|
68,012
|
|
46,724
|
Other long-term
liabilities
|
|
12,461
|
|
11,091
|
TOTAL
LIABILITIES
|
|
1,993,472
|
|
1,517,111
|
|
|
|
|
|
TOTAL SHAREHOLDERS'
EQUITY
|
|
1,129,481
|
|
1,045,337
|
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
$
3,122,953
|
|
$
2,562,448
|
PATRICK INDUSTRIES,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
Nine Months
Ended
|
($ in
thousands)
|
|
September 29,
2024
|
|
October 1,
2023
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
Net income
|
|
$
123,843
|
|
$
112,080
|
Depreciation and
amortization
|
|
124,002
|
|
107,976
|
Stock-based
compensation expense
|
|
14,367
|
|
13,675
|
Other adjustments to
reconcile net income to net cash provided by operating
activities
|
|
2,335
|
|
4,024
|
Change in operating
assets and liabilities, net of acquisitions of
businesses
|
|
(40,357)
|
|
56,075
|
Net cash provided by
operating activities
|
|
224,190
|
|
293,830
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
Purchases of property,
plant and equipment
|
|
(50,264)
|
|
(47,430)
|
Business acquisitions
and other investing activities
|
|
(435,137)
|
|
(28,033)
|
Net cash used in
investing activities
|
|
(485,401)
|
|
(75,463)
|
NET CASH FLOWS
PROVIDED BY (USED IN) FINANCING ACTIVITIES
|
|
302,408
|
|
(224,764)
|
Net increase
(decrease) in cash and cash equivalents
|
|
41,197
|
|
(6,397)
|
Cash and cash
equivalents at beginning of year
|
|
11,409
|
|
22,847
|
Cash and cash
equivalents at end of period
|
|
$
52,606
|
|
$
16,450
|
PATRICK INDUSTRIES,
INC.
Earnings Per Common
Share (Unaudited)
|
The table below
illustrates the calculation for earnings per common
share:
|
|
|
Third Quarter
Ended
|
|
Nine Months
Ended
|
($ in thousands,
except per share data)
|
|
September 29,
2024
|
|
October 1,
2023
|
|
September 29,
2024
|
|
October 1,
2023
|
Numerator:
|
|
|
|
|
|
|
|
|
Earnings for basic
earnings per common share calculation
|
|
$
40,866
|
|
$
39,550
|
|
$
123,843
|
|
$
112,080
|
Effect of interest on
potentially dilutive convertible notes, net of tax
|
|
—
|
|
—
|
|
—
|
|
162
|
Earnings for diluted
earnings per common share calculation
|
|
$
40,866
|
|
$
39,550
|
|
$
123,843
|
|
$
112,242
|
Denominator:
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding - basic
|
|
21,740
|
|
21,511
|
|
21,706
|
|
21,541
|
Weighted average
impact of potentially dilutive convertible notes
|
|
554
|
|
—
|
|
340
|
|
221
|
Weighted average
impact of potentially dilutive warrants
|
|
117
|
|
—
|
|
39
|
|
—
|
Weighted average
impact of potentially dilutive securities
|
|
230
|
|
373
|
|
212
|
|
301
|
Weighted average common
shares outstanding - diluted
|
|
22,641
|
|
21,884
|
|
22,297
|
|
22,063
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
Basic earnings per
common share
|
|
$
1.88
|
|
$
1.84
|
|
$
5.71
|
|
$
5.20
|
Diluted earnings per
common share
|
|
$
1.80
|
|
$
1.81
|
|
$
5.55
|
|
$
5.09
|
PATRICK INDUSTRIES, INC.
Non-GAAP
Reconciliation (Unaudited)
Use of Non-GAAP Financial Metrics
In addition to reporting financial results in accordance with
U.S. GAAP, the Company also provides financial metrics, such as net
leverage ratio, content per unit, free cash flow, earnings before
interest, taxes, depreciation and amortization ("EBITDA"), adjusted
EBITDA, adjusted net income, adjusted diluted earnings per share
(adjusted diluted EPS), adjusted operating margin, adjusted EBITDA
margin and available liquidity, which we believe are important
measures of the Company's business performance. These metrics
should not be considered alternatives to U.S. GAAP. Our
computations of net leverage ratio, content per unit, free cash
flow, EBITDA, adjusted EBITDA, adjusted net income, adjusted
dilutive EPS, adjusted operating margin, adjusted EBITDA margin and
available liquidity may differ from similarly titled measures used
by others. Content per unit metrics are generally calculated using
our market sales divided by Company estimates based on third-party
measures of industry volume. We calculate EBITDA by adding back
depreciation and amortization, net interest expense, and income tax
expense to net income. We calculate adjusted EBITDA by taking
EBITDA and adding back stock-based compensation and loss on sale of
property, plant and equipment, acquisition related costs,
acquisition-related fair-value inventory step-up adjustments and
subtracting out gain on sale of property, plant and equipment.
Adjusted net income is calculated by removing the impact of
acquisition related transaction costs, net of tax and
acquisition-related fair-value inventory step-up adjustments, net
of tax. Adjusted diluted EPS is calculated as adjusted net income
divided by our weighted average shares outstanding. Adjusted
operating margin is calculated by removing the impact of
acquisition related transaction costs and acquisition-related
fair-value inventory step-up adjustments. We calculate free cash
flow by subtracting cash paid for purchases of property, plant and
equipment from cash flow from operations. RV wholesale unit
shipments are provided by the RV Industry Association. Marine
wholesale unit shipments are Company estimates based on data
provided by the National Marine Manufacturers Association. MH
wholesale unit shipments are provided by the Manufactured Housing
Institute. Housing starts are provided by the U.S. Census Bureau.
You should not consider these metrics in isolation or as
substitutes for an analysis of our results as reported under U.S.
GAAP.
The following table
reconciles net income to EBITDA and adjusted EBITDA:
|
|
|
|
Third Quarter
Ended
|
|
Nine Months
Ended
|
($ in
thousands)
|
|
September 29,
2024
|
|
October 1,
2023
|
|
September 29,
2024
|
|
October 1,
2023
|
Net income
|
|
$
40,866
|
|
$
39,550
|
|
$
123,843
|
|
$
112,080
|
+ Depreciation &
amortization
|
|
42,186
|
|
36,484
|
|
124,002
|
|
107,976
|
+ Interest expense,
net
|
|
20,050
|
|
16,879
|
|
60,483
|
|
53,623
|
+ Income
taxes
|
|
13,501
|
|
14,646
|
|
34,122
|
|
37,181
|
EBITDA
|
|
116,603
|
|
107,559
|
|
342,450
|
|
310,860
|
+ Stock-based
compensation
|
|
4,625
|
|
5,729
|
|
14,367
|
|
13,675
|
+ Acquisition related
transaction costs
|
|
—
|
|
—
|
|
4,998
|
|
—
|
+ Acquisition related
fair-value inventory step-up
|
|
—
|
|
—
|
|
822
|
|
610
|
+ (Gain) Loss on sale
of property, plant and equipment
|
|
(34)
|
|
142
|
|
(402)
|
|
242
|
Adjusted
EBITDA
|
|
$
121,194
|
|
$
113,430
|
|
$
362,235
|
|
$
325,387
|
The following table
reconciles cash flow from operations to free cash flow on a
trailing twelve-month basis:
|
|
|
|
Trailing Twelve
Months Ended
|
($ in
thousands)
|
|
September 29,
2024
|
|
October 1,
2023
|
Cash flow from
operating activities
|
|
$
339,032
|
|
$
475,760
|
Less: purchases of
property, plant and equipment
|
|
(61,821)
|
|
(63,876)
|
Free cash
flow
|
|
$
277,211
|
|
$
411,884
|
The following table
reconciles operating margin to adjusted operating
margin:
|
|
|
|
Third Quarter
Ended
|
|
Nine Months
Ended
|
|
|
September 29,
2024
|
|
October 1,
2023
|
|
September 29,
2024
|
|
October 1,
2023
|
Operating
margin
|
|
8.1 %
|
|
8.2 %
|
|
7.6 %
|
|
7.6 %
|
Acquisition related
fair-value inventory step-up
|
|
— %
|
|
— %
|
|
— %
|
|
— %
|
Transaction
costs
|
|
— %
|
|
— %
|
|
0.2 %
|
|
— %
|
Adjusted operating
margin
|
|
8.1 %
|
|
8.2 %
|
|
7.8 %
|
|
7.6 %
|
The following table
reconciles net income to adjusted net income and diluted earnings
per common share to adjusted diluted earnings per common
share:
|
|
|
|
Third Quarter
Ended
|
|
Nine Months
Ended
|
($ in thousands,
except per share data)
|
|
September 29,
2024
|
|
October 1,
2023
|
|
September 29,
2024
|
|
October 1,
2023
|
Net income
|
|
$
40,866
|
|
$
39,550
|
|
$
123,843
|
|
$
112,080
|
+ Acquisition related
fair-value inventory step-up
|
|
—
|
|
—
|
|
822
|
|
610
|
+ Transaction
costs
|
|
—
|
|
—
|
|
4,998
|
|
—
|
- Tax impact of
adjustments
|
|
—
|
|
—
|
|
(1,488)
|
|
(154)
|
Adjusted net
income
|
|
$
40,866
|
|
$
39,550
|
|
$
128,175
|
|
$
112,536
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share (per above)
|
|
$
1.80
|
|
$
1.81
|
|
$
5.55
|
|
$
5.09
|
Transaction costs, net
of tax
|
|
—
|
|
—
|
|
0.17
|
|
—
|
Acquisition related
fair-value inventory step-up, net of tax
|
|
—
|
|
—
|
|
0.03
|
|
0.01
|
Adjusted diluted
earnings per common share
|
|
$
1.80
|
|
$
1.81
|
|
$
5.75
|
|
$
5.10
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/patrick-industries-inc-reports-third-quarter-2024-financial-results-302292852.html
SOURCE Patrick Industries, Inc.