After releasing the company’s third quarter financial results, Patrick Industries’ Chief Executive Officer Andy Nemeth said Patrick’s performance reflects its resilience.
Net sales increased $52 million, or 5%, to $1.11 billion from $1.06 billion at the same time in 2021.
“We remain focused on ensuring that our business is scalable to enable us to stay nimble, and our strong balance sheet positions us well to flex our business model and capitalize upon opportunities for additional growth and strategic diversification,” Nemeth said.
Patrick Industries President Jeff Rodino said OEMs have monitored what they have been doing over the last several months and the company sees production levels normalizing from September 2022.
“We still see the shutdowns of a week or a day here or there,” Rodino said. “We feel comfortable that they continue to manage and monitor those on a daily and weekly basis and we are adjusting to those production levels as needed.”
Patrick reported its content per RV increased 36% in the past 12 months to $5,071. Rodino said the increases came from gains in market share along with higher prices and benefits from acquisitions.
“When asked whether the company expects dealers to continue rebalancing inventories into next year, CEO Andy Nemeth said RV manufacturers have been aggressive and disciplined in managing production to make sure that they stay aligned with retail.
“When we look at the inventory that is out there today in the channel, we absolutely believe we are at these discounted levels from where it is historically run,” Nemeth said. “What we see today is a mix change kind of happening out in the marketplace as it relates to dealers fine tuning their mix balance… which we think is very, very rational and then positioning for a strong kind of fiscal 2023 as it relates to one-to-one retail and wholesale.”
Patrick reported estimates of dealer inventory at 18 to 20 weeks, down from pre-2020 typical levels of 26 to 30 weeks.
Nemeth said supply-chain pressures have eased. The company believes inflation and rising interest rates will be headwinds moving forward, he said.
