PATK - Earnings call transcript Q4 2017 | Patrick Industries, Inc.

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Operator

Good morning ladies and gentlemen and welcome to the Patrick Industries Inc Fourth Quarter 2017 Earnings Conference Call. My name is Sylvia and I will be your operator for today's call. At this time all participants are in a listen-only mode.

Following the prepared remarks we will conduct a question-and-answer session. Please note that this conference call is being recorded. the to turn from Ann now Relations. Investor will call Julie over Kotowski I Ms. begin. may you Kotowski

Julie Ann Kotowski

Commission. Good welcome the everyone and today's these in call. Todd morning forward-looking our undertake like our conference or and CEO; Josh I in required for XXXX call described fourth those except from Cleveland, statements no turn made am conference Boone, quarter call CFO. identified occur to joined Form made events Nemeth, year-ended statements on are Andy call Certain the the These other by to today President; Patrick in now in Industries update are control filings materially regarding and as its of obligation over releases, statements could XX-K laws. securities the date We a Todd results Patrick to statements operations our circumstances would the number that Exchange forward-looking to and forward-looking statements. company's Industries I reflect the differ with There after many factors and factors the Cleveland. beyond are to cause the by XXXX, actual which of under law. which may be to the press are events and Securities considered

Todd M. Cleveland

an all Julie quarter fourth and call you you on we'd Thank Ann on major discuss and results the serve. the company's full provide for the like and us joining update thank markets today. XXXX to This we morning year

leveraging remain our quarter providing those the of sentiment growth all team business to of improvements Optimism, growth, markets customer industry markets reflect our in overall outlook. drive the then and by of our first the performance strength Operational in and conclude strong financial in overall acquisition combination fourth execution fueled bottom by a members markets primary and energy, oriented our and We the all update an initiatives. results of our on end will fixed ongoing strategic were focus XXXX our costs priority culture. four both performance the and healthy line by and and top our

to billion diluted XX% Our the X.X for net the revenues million income and than full fourth respectively. and increased for a to the year XXX XX% and more per increased XX% periods share same XX% in quarter

In addition we gain in we share continue to the all market serve. industries

geographic initiatives and to talent Our to pipeline remain tremendously manage, focus and continue acquisition our retention extremely motivate continue be our engagement align, expansion to a talented workforce and opportunities and robust.

primary Andy I'll and who Now performance. markets to the review will the call turn further over

Andy L. Nemeth

Todd. Thank you

the tremendous lifestyle As both noted oriented strategic leisure of fourth the markets industrial family and along with the in quarters and first the execution quarter from our of reflected housing our initiatives. momentum forward XXXX carried three

customer revenue operating strong tailwinds, organic of opportunistic operating to strong to growth our We and ensure deployment strategic fundamental capital and propel on capacity support position and strong with maintained allocation ourselves to demographic targeted expansion and alignment expansion initiatives the results. geographic platform, trends, opportunities. to expected demand, growth our Solid capital and industry the strength our that disciplined strategy, continue of financial focus our and in continued we leveraging rates

markets we're represent up and markets Or our XX% the approximately up of Our of quarter our XX% XX% quarter revenues the the our for year. and XX% base revenue year. for collectively housing representing marine the were fourth RV and for and XX% quarter industrial other the XX% in and

will record XX% including quarter with with of shipped and over of with units slowing our shipped line of the of in approximately and unit fourth of largest quarter representing trailers retail and demographic of to we Fourth solid the adequately each overall and and some are season shipments representative The specific down in and with statistics wholesale of eighth towable estimate to of up held increasing reports an retail XX% backlogs the the earlier year optimism, which robust to reinforce history We represents for Combined domestic Efficiently positioning its accounts and industries were statistics no C's its up anticipated the XX% increasing RV over wholesale approximately themselves of place had supported into the towable is demand growth inventory The Show. in opportunities XXXX. lead over be XXXX. shipments XX% Class upward XXXX which are trends right and Canadian shipments larger XXXX on positive through representing the were the XXXX. of retail shipment continue in in industry to through. quarter represented attendance expectations. turn up same A's the units. prior to RV quarter over shipment all head are recent sector industry up all unit representing way continued of serve. quarter upcoming wheel attendance fourth of solid increases and revenues. market the into RV segment strong XX% QX at quarter consecutive XXXX. a since Florida quarter shipped over indicate January and based content December trends, our XX% up year higher and of the and the miss let's that the trended revised all consecutive first wholesale OEM by saw beginning retail pull shows sold and we XX% quarterly XX%. motorized increased eighth on dealer and XXXX versus dealers larger the market growing XXXX that XX% Year-to-date our retail estimated in strongest Travel XX% B's Now XX% towable growth retail support the not and market of of XX% XX% expensive channel experienced industry double-digit and quarter increased growth. Class selling signs the period. accounting the Initial The experienced levels as increase Super quarterly strong the seven RV XX% expectations units for in over the increase units the fifth reporting more sector of the continue highest quarters RV shipments retail is XX% The quarterly QX

to grow revenues X% Our and up XXX%, for XX quarter the marine approximately were continues sales. business our fourth represent quarter million as of

and revenues is generations within a oriented as family housing acquisition markets. is marine and family year time leisure popularity younger that the trajectory growth. aligned lifestyle families with trends of market natural the up to were organic the full The demographic the the of million both over growing to and continued leisure our fit allocate XXX% by XXX activities strategic marine supports more For the and recreational single of RV bolstered

Our with and X% XXXX. this in sales increased strong Chicago for this in water a the in well Boat Show are January patterns season grew to sector solid by sector on retail show salt markets. marine boat for powerboat and the start both industry Retail for strong week. Baltimore both and fourth and the and shows the sales fresh focused expectations year-over-year evidenced traffic are water the the at X% Miami Powerboat in the and quarter demand year trends the primarily in as

of industrial again to our our our Turning sales XX%. outperforming QX focus represent up revenues growth the of side housing we're XX% of industry housing and XXXX manufactured and total business over our XX%

for and toward per reflecting continued in the hospitality, content acquisition of previously demographic point grew innovations represent independence rise of the quality and for our organic both housing, residential revenues focus continues strategic base in noted and single an family that demand attractiveness high ownership. providing Also the points lifestyle quarter unit consistent to our a Additionally and related as of consolidated products industry the time fourth XX% year profile leisure is those commercial viable XX% growth. The the home company's and revenue increased effective markets ideal the growth. both platform adapt MH our a buyers the cost as trends on its XX% demographic just organic family the for XXXX with quarter This class. markets result interested XX% which with of from option patterns buying and and entry home and to first strong industrial latest

overall, Our and X% single starts in West. revenues year here X% Midwest, housing were the markets. continued Residential up to the the the outperform in up family way the XX% almost leading for X% with

Western home relationships commercial on ideal of presents XXXX recent with and November housing strength on of Our scale capitalize residential opportunity the contractors. to acquisition builders the and their markets LMI large an

perspective consumer From low value tax add through into strength shower As tremendous of heading of equity positive fundamental the presenting well bath offerings. and full and of are XXXX to impact confidence, indicators job macro-economic complimentary cuts all product growth, and a recent despite job opportunity recent as volatility, wage the strong expected a and suite acts market unemployment, an XXXX.

our families trends population housing demand U.S. and pent projections including favorable in for favorable points housing including patterns demographic consumer Additionally of towards in markets and and up younger all beyond. in statistics new demand XXXX

supported and to well and XXXX. presence. model powerboat platform returns In time continued X% record reports side the along half on interestingly revised of trajectory buyers. December XXX,XXX seasonally to sales Retail active are XXXX fits the this growth and of units and and attendance based consumer's RV capacity seen to for business very marine to desire strong business demand the the the January in We The model is remained XXXX with RVIA that early anticipated an family year new full for shows to key an RV constant ourselves have shipments unit meet the all XXXX returns. is influx both continued outlook and inventory marine basis adjusted the strong traffic are indicate exceed that historically trends first sell to not XXXX wholesale industry positioning RV needs through up slow as opportunity On continue there estimate total if of based our the and on similar the provide levels. with believe industry and industry in supporting lifestyle. approximately growing their by second strong project outdoor The and steady

increase content the inventory to risk the market needs capital the space with support us to to with age grow continues downside our resources in low in entrepreneurial growth of mid used to brand continue model continue expect are anticipating to centric and this single-digit and to market. position of driven limited As that growing in this XXXX we boat this our

opportunities and not expansion, well fits this the demographic factors with competencies cost have whose both residential capitalize those we for industrial value gain improving the low high homebuyers resurgence is markets that decimated currently well market hospitality And and provides and as On of or those as after core option profile those a represent gain side Based for families breadth us believe penetration. and poised a who wholesale have last MH on individuals for growth and market acquisition as to continued credit market The proposition as and well to housing MH markets. the that the and design traction environment economic we The time side in rise, downsize units been economic yet retail, effective by credit. we double-digit downturn ratings MH for jobs are product, on the continue and our a these fiscal anticipating XXXX. trends. rates first quality established on residential and looking either to and with

for this as services to share sector, dealers expansion, Moulding We opportunity three and we almost cross are in States leading is installer selling the penetration, relationships, to XXX OEM's market continue expansion, us leading December. Indiana and frames, in well acquisitions opportunities. we custom retailers, different high finally million industry product in mouldings of products completed the of and Nickell providing content growth. million from accounting retail, a units company LMI opportunities market a RV, LMI and to to touch Transport with and custom multiple glass, bath years across the door content result building both our trim, expect is hardwood and market delivering rise us points. the continue contractors, bundled November and to And multiple the general through allows XXX recreational increasing transportation share the recreational manufacturers strategic in increase quarter anticipating wood a RV mirror, and From builders, geographic with U.S. hospitality, last United mid XXXX expectations acquisitions partner in the fabricator, for with a and Transport single-digit markets. wrap fourth in to annualized of the and as and housing Canada dealer bring of however, closet designer, and cross to three Nickell manufacturers average our approximately vehicle XXXX and and and annualized MH and per residential components commercial as general we XX XX and for specialty XXXX growth to is have high revenues Moulding acquired of of market completed manufacturer of year. revenues. and beyond companies selling, Indiana

remain growth initiatives, a engagement, and who expenditures, leadership performance. well XXXX. allocation We and is will pipeline planning with customers investments, strategy provide and designed all across our additional strategic now our will disciplined as support on over strong facility capital both workforce our initiatives I throughout comments driving call through and sectors. external our capital acquisition and execution acquisitions, internal to to four Josh Our our financial turn market on retention, the focused as value of of improvement spans energized primary

Joshua A. Boone

Andy. Thanks

On primary efforts, for sales geographic XX% Our the organic and growth of in consolidated the acquisitions. The annual of quarter basis in acquired year four revenues XXXX. sales contributed X.X the to net million for we markets, the XXX million year. approximately increasing in strong XXX and quarter to XX our companies an prior exceeded compared full XX the fourth expansion all our product billion, gains, share XXXX impact market increased million in XX% and reflecting

in revenues fourth XX%. wholesale reflecting the were in XX% Our an shipments RV quarter up increase of

to XX% were content on per of RV unit. the For and $X,XXX increase per a XX% our unit year RV up shipment X% full sales increased

sales. our of X% our On tripled fourth the marine side revenues versus the and quarter nearly represent prior year

quarter image of Our improvements revenues for XX%. shipment increased the unit and on XX%

Our $X,XXX MH content unit XX% to increased per unit. per

up in across portfolio The and and revenues markets the markets XX% strength the expanding interests Finally sales our were with industrial in polio our applications our regions. quarter. multiple investor reflects new industrial party geographic in

prior was investments Our gross impact basis year XX%, growth, various both made a over margin as quarter CAPEX up from in of XX result in synergies, the acquisition and strategic of points the internal XXXX and the initiatives. labor

have million for income plans strategic XXXX to and the and remained Operating in which the of our leveraging profile XX increased quarter on XXXX. Patrick's support on compared and our in quarter. higher factors full expenses an quarter overall profile. completed focus the previously investments points the a to leadership, XXXX to margins XX to and fourth increased delivery year relatively fourth revenues across brands. to fixed constant acquisitions continued increase and SG&A and of certain and points described. XXXX quarter prior our synergies were continue expense for executing XXXX, the all amortization X.X% were of Operating expense relative basis fourth SG&A Operating quarter. of We in intangible increased to are higher contributing the Warehouse costs the due the and X.X% our the expenses impact fourth Primary and primarily X.X% and growth asset sales XX basis to the talent the both of XX% factors year beyond in SG&A SG&A in retention compared to in

impact strategic realize improved we and the of labor XXXX operating efficiencies. increased expect investments, and our we to and gain As to to traction focused continue look positive capacities,

pursuant enacted item offering recently the net per in the the reform income and a $X.XX includes over our this year-over-year. XXXX our The $X.XX of in U.S. impact year. to tax XX% increased legislation. diluted issues of of Exclusive shares quarter resulting benefit the $X.XX tax share diluted in equity XX% was fourth to additional at per quarter prior compared income net March from to onetime of Our share

tax XX% tax XX%. tax for was was effective based share XXXX rate excluding under reform impact Our rate compensation and the our just effective U.S. of

rate our effective estimating we're in all be XXXX to XX% For tax to XX%.

will will share based QX lower effective which XXXX impact tax the include Our rate be of compensation.

on XX% full benefit the tax and reduction XX% However cash payer for XXXX. cash basis the rate we expect cash of receive to are full federal we to a all fully from

Now and seasonal working turning the our to the up the balance of in addition sheet, assets the acquisitions, approximately XXXX ramp our capital XX, increased December primarily from total the reflecting XXX in million year. business, related growth

For XXXX cash flows. we of million generated approximately XXX operating

is the Our under was which the leverage just at at position from EBITDA times the to of end two quarter down of at XXXX. X.X fourth relative end times

in a coupon XXX.X million, XXXX we announced private January senior X% placement convertible notes in previously late XXXX. offering completed As the due of

to of the our to hedge potential the approximately share. of a transactions part dilution we offering Net the the XXX As approximately of into of up issuance stock convertible were million. common entered proceeds to from per of $XXX conversion reduce our notes stock price notes

amended credit a credit to In over addition offering strategy. allocation disciplined by powder XXX on provide credit million million. The availability execute facility to to continue flexibility the capital our XXX to expand XX to with combined and transactions notes million dry we increased us our by approximately agreement and our

spending and well program million geographic in strategic time million conditions, of on in past As new January may period. month finally process price, the XX Directors in expansion, open over to guidelines management from stock XXXX efficiencies time to increased market based continue Directors. this our of Board in we as as the shares common up repurchase product announced development. that capacity In our by repurchase repurchases approved and of determined investments to of and we capital our volatility Board new a market future and the authorizes a stock focused share XX pre-established approximately as our our on And of XX

of continue primary and levels. we expected volume to support can to make our disciplined, strategic ensure it maintain we in strength continued Given businesses the capacity markets sufficient in our all investments

to For capital spending XXXX in we million. estimate million total range XX be our currently XX the to of

We robust our to That we demand to remarks. however needs to adequate meet and adjustments given continue to have were completes my XXXX a will Todd. levels. necessary make assess demand market capacity ensure

Todd M. Cleveland

economic front as in continue the the recreational Josh. family and consumers about our us confident shareholder focused alignment industry are they and energized remain migrate lifestyle laser the excited overall in primary the Overall Thanks conditions. growth, beyond. leisure is We the towards team as opportunities on about the of potential to expected in and we driving in value consumer XXXX with serve all demand, markets

We strategic to well continue initiatives able product our on expand of our positioned operational to to be and geographic on plan platform. and to are our strengths expect to presence further execute and the capitalize

talent planning, focus and our product proposition acquisitions, a capacity to increase Additionally retention customers. priority continue to and our high engagement, our on offering to increasing value remains our

Our scale within potential and markets and our XXXX and we've cross new opened expanding selling increased strategic XXXX markets in our in to both further made doors footprint. acquisitions existing geographic

our facility our Our the model and powder we offering provided in across cash to positions the overall and acquisition flexibility financing The business of continue pipeline thoughts credit execute flows that by allocation invest candidates initiatives long-term onto expansion January note both intend markets put capital dry primary capacity remains We capital on with serve. and with potential strong full we brands. work in strategic us to and executed and to our strategy. all our and growth

commitment suppliers, to the our remarks, remain appreciative and extremely of Board talented and to now than customers, tremendously I are partners, of the serve. our end strategic questions. support dedication Directors, This privileged the who are we with prioritize line is We expectation XXXX agenda shareholders the will prepared team we organizational our by to to ready our top of our banking our take of we are and by continue humbled the members more and outpacing markets. respected grow

Operator

And our KeyBanc question Capital. Andress comes from [Operator Instructions]. Brett from first

Unidentified Analyst

like Looks an the acceleration. Hey was growth market quarter, for and industry what on guys, a overall us the quarter. of your the about solid during overall end a Congrats give Dan organic share Charrow bit Can is like? profile market growth [ph] your across growth growth the the Brett. sense on real versus you

Joshua A. Boone

Josh. is this Yeah,

growth into really overall QX. so Our plus organic was of the robust XX% kind accelerating XX% growth of

a our on we as XX% end XX% basis industry our would growth far that markets organic of net growth. at were put As of consolidated

Unidentified Analyst

end kind it was Got and of specific that markets? any driven by

Joshua A. Boone

So wheel. fiscal XX% really had within in a the we content the growth lot sector quarter the in we and towable of fifth strong plus have

was quarter-over-quarter component wheels percentage it quarter. of overall as one So the towables a increased two that in total fifth and of point

both the strength other taking with in So, the contributes initiatives organic and place towables strong to of those growth.

Unidentified Analyst

in call release normal. the thanks feeling around are guys channel aligned great, dealer about Great, selling How returns production retail out RV the inventories the sounds with are and with the fairly like season? into it wholesale you heading

Andy L. Nemeth

turns really take Yeah, to to increasing dealer, are about with a the in of inventory on sure strong where season. to the we've got able did right seasonally. Andy. inventory that the selling able the bit feel they've see today. upcoming where be making at is lots we're We the the been and good positioned of backlogs have track but they demand on dealers again and of be have this that's with advantage support We build We little think seen to anticipation units were themselves

but like things excited still So optimistic about again balance. and think season feel I in very selling the are we're

Unidentified Analyst

are just Good, in sink here, how another this guys it if quarter, margins about heading labor and year? feeling encouraging continue good during gross into you I seeing can one expand the is

Todd M. Cleveland

standpoint benefits work saw as very of continue strong in XXXX both continuing to retention overall and initiatives. put just and our standpoint. we efficiency years. our We well into of effort of think almost turnover in XX% an dramatic positioned feeling last we're we're think extremely and objectives see XXXX we lot this we're morale to an This is as to a a from decrease Todd, those We I the to year into two heading hard felt probably labor

from think extremely and side leadership the think will dividends. we initiatives I that we've we've market the and is to So, had pay together is continue a the and that challenging I team work dividends while paying standpoint the foresight put

Unidentified Analyst

Great, thanks the again guys, congrats on quarter.

Todd M. Cleveland

Thank you.

Operator

Daniel Our from CJS Moore Securities. from next question comes

Daniel Moore

may for up On into continued morning, a they as questions. recent high industry the the -- very to you and taking double-digits. and that in RV by be Good low QX Are of indicated recent for strength one be single thanks seeing two? competitors the inference as a calls to volumes continue strong much up shipments go or as we follow quick QX

Todd M. Cleveland

Yeah is do some as OE's after that these we out strong in Todd. to indications to keep some yes, they do initial Dan, the came to dealers units way. well. the of we this continuing are Yes, especially strength the see shows. in gates order the OE's retail so same what of The feel of need The of

Daniel Moore

cycle for in to growth marine outdoor you then and the few in continues about of so, helpful the like what shifting to said confidence of similar shipments. levels outlook below next obviously lifestyle, very consumer market mid cycle RV's there and in looks think terms the drivers over gears, importance Very terms years? still grow and how do That

Andy L. Nemeth

Sure Dan, this Andy. is

seeing today. we the aged expand the of leisure see to limited to use industry influx trends platform downside that inventory slow the And into the continued risk growth additional space. same newer we're related aged in -- to type space. excited the marine about that entry similar the We're units. demographic patterns family providing see of lifestyle, and continuing marine marine in general. for And there's for in opportunity We think opportunity continue space marine are the and that We board really steady

Daniel Moore

Got get improve know guidance into it to that feel I giving finished level to can't XXXX one on given think we don't how back like sustainable about on on get but at you margin, lastly to reason just any that pretty you the we I and or is in not reason questions of XXXX? good XX%, couldn't that -- we any about labor gross

Andy L. Nemeth

Dan, this is Andy.

of see fluctuation to We're to and relates be be of points think we to we certainly op and XX to margin but gross expand on to an going annual able really bit on basis line. op margin basis to to margins focus our gross continue both the op improvement. hope it margins As little op a expectation and continues XX

Daniel Moore

congrats the on a thanks for Perfect, great year. finishing color,

Todd M. Cleveland

Thank you.

Operator

question Rafe Jadrosich Bank Our from of following comes from America.

Unidentified Analyst

good its morning, for Hi, thanks question. Reese, my taking

Todd M. Cleveland

Good morning.

Unidentified Analyst

I -- of then the over working up then end you year talk with going is Just and ask that what's to can driving capital, just forward? how that outlook wanted receivables XXX, about and XX finished of were around for inventories the you about the

Joshua A. Boone

driver of Nickell year all in is we last on the Yeah, so to the and the Reese latter going this acquisitions of Moulding big the particularly two is be the completed Josh. A Transport part months. in QX that Indiana we bought LMI and

of be sheet to revenues is big realize capital added working full won't but that balance for the So it the you the year so driver will related. that's the acquisition

the line up as pricing strength with a a traditional we is that the profile side, flex little the we we going RV uptick be our continued Though are on for on term to that's be and bit in we're we XXXX that's overall additional cash a different And side. flow progressing in operating than bit end did line a basis head longer have in is customers with our that way ensure organic an to I receivables flex to with to core receivable customers, of we in to working as expectations the able inventories as RV are is thought little year positioned into slight seeing that the acquisitions approach we well. and bit little where component in receivables. But XXXX say our as would support other then from capital and market a bring XXXX. we we throughout well The little lastly for that

Unidentified Analyst

the XXXX years, in terms you was very what forward in about step be focused then on up on that's your then prior which acquired end capacity, from for you by And revenue of going think be helpful. you'll any guys that there pipeline, M&A should terms we markets balanced? in million XXX that targeting of will more we how big Thank and a around you should are it think do be market or

Andy L. Nemeth

this annualized acquired little Reese, we're see of million In to executed average mix years XXX million four opportunities. Andy. around and our on In in continuing XXX we in all markets XXXX of average opportunistically annualized revenues. years over the Sure when opportunities we've three last primary revenues XXX last in actually million perspective a we're the continuing annualized over evaluate is those from all And a to four revenues.

market, intelligent So what we're an disciplined fit, -- not and remain strategic synergistic thoughts perspective. we're relates targeting as we it acquisition and to any it multiples, combination as particular initiatives relates and from deal we to can being do

it pipeline allocation we're And as So a capital capital are acquisition our the to today seeing putting really strategy from as from. perspective where and coming is all work. again about markets really candidates target centered excited across end far those around

couple approach and trends to but million annualized over from we've where in towards years. than million again been a able internal disciplined Our last more acquire over targets are revenues true XXX I the recent opportunistically around XXX point of

So, a about today. execute we on that We're excited have continue to and strategy. to expect full pipeline it

Unidentified Analyst

terms do capacity in been could could you've much to the of what where you to revenue sense up your like, be would the assuming And that stay buying, how range multiples did acquire? in what you you

Andy L. Nemeth

companies companies. seven last did acquisitions did year again eight we seven annualized companies. we prior the Sure, year million bought in revenues. bought we seven acquisitions did or of We XX XXX over -- we In for so

So internally buy plug that I positioned to team's And in continue able a continue be spot to continue approach play we're the to be We as effectively ourselves and very be to really our that. to disciplined integrate acquisitions. well to to relates think able good to and businesses to execute. able we've it these

in the in last similar like great can -- feel we've feel years. as certainly can capacity I certainly we execute on We we again a So, couple done from we patterns a like perspective we're can spot.

Joshua A. Boone

financial our into and revolver availability year we pro And offering upsize I convertible coming us recent Reese ended will XXX on for forma the and about our positions with capacity with note XXXX. or add, basis where million

Unidentified Analyst

it's thank helpful. Great, you, very

Operator

following Our from question Craig from Baird. comes Kennison

Craig Kennison

your questions. though to taking maybe those done the corporate It my my increase margin recently margin that you was of sounds some slightly have as overall incorporating start the acquisitions, thanks below can I morning, but you still impression is believe good that with wanted fair? comment. Yes, in for acquisitions you've at average come might

Joshua A. Boone

basis and our up XXXX on operating Yeah, comment to following in going fair expectations expansion of is is points. that to XX margin XX Andy's

our for to and on Andy movement As alluded operating there XX and could our expectations overall but margins. line some the is the to XX gross goal on bip improvement between op be the lines a XXXX

Andy L. Nemeth

looking That little expect a bit operating being said executed add that with we in bring also I'd acquisitions a we're profile may that XXXX, are to opportunities we any to the perspective relates Craig upfront to the time we an on but margin acquisition be that overall than average. do. it the from at certainly better corporate in we operating period as of of accretion acquisition short the margin be able dilutive

looking at continue precluding relates our be average. not lower opportunities it to from a We're ourselves strategy. and disciplined looking we're to stay op have as that than our and synergy approach margin corporate to acquisition to So opportunistic

Craig Kennison

think forward? the we Thanks about that each acquired should be about and of anything quarter is your there revenue unusual aware as going cadence of we businesses of

Andy L. Nemeth

there pipeline you of acquisitions -- an we've that years. if revenue is today the -- full models over No, two really we've completed look the got the last again we're not at extremely

models. we is with continue in effectively average ourselves what hold action. in to business any that to with stay don't consistent quarter full pipeline put going But entrepreneurial we able to know acquire revenue the of can scale certain the a we're to targets to pretty Again in to or be a year. You acquiring opportunistic number style continue

not cadence give expect a but we that there's we execute. on again, you true can to so continue And to guidance

Todd M. Cleveland

thing internally all Todd, we of it's I have the that very would able capabilities acquisitions this is to we together. stay in is I and front manage Craig to to stand put that disciplined do only the Hey that be important the add think and that

for may from moving summers seem they sometimes a We really we a we where spent team the little and of management lumpy. acquisition to at of seeing like the do capacity through first want position half sure that beyond. out and up lead that just teed getting like we're some profiles the got we a and the times through ready the obviously businesses a see -- do a little structure it But, take internally also quarter so will standpoint drive feel you really to to like with we've little bit time kind fourth may from make along may of to ourselves go a and there digest things look time XXXX to may it we seem really be regroup. the where So not or taking outsiders this, lumpy things internally these take perspective and you're

Craig Kennison

on had I is X% XXXX? I of my question growth really there and your a retail X% of RVIA cause doubt view different forecasting forecasts your then believe you question and shipment space XXXX to attainability the Sure RVIA or RV patterns for the is, is that for guess order would the inventory the industry anything or that in in growth dealer I

Todd M. Cleveland

tell I light out that at want the but come be thus and certainly both there's has this retail in go based it would I on it could wholesale a on -- don't No, limb we've feels that data nothing that seen side. retail on like this point. far both year to you

Craig Kennison

you. thank Okay,

Operator

from comes O'Hara following Our Sidoti. question Steve from

Stephen O'Hara

Hi, good morning.

I apologize, so evaluation got could for does acquisition in lend an ability, asked acquisitions Just advantage how been this the side and cut your perspective? on but terms larger curious wondering itself smaller that just to I comfortably from many off bandwidth a going acquisitions or of if has do standpoint, you

Todd M. Cleveland

but things think I I really to mentioning part Craig, and and to restructuring managing XXXX senior I the businesses. the was leaders again Todd first of this the time we kind divided Craig, these of things of team in passed things key management Sure, was as some through as mentioning to capability is amongst summer structurally we in some leading have organization spent that other up along where the and

we're I well positioned So standpoint from a we've from possibly only we from could standpoint what a have, capability what leadership not think digest. digested but also

indication of seven have within that bandwidth as they fit to assuming businesses has I take think Andy certainly model. mentioned our an -- six or we plus seven care that the of buying to

Stephen O'Hara

long and take it sticking on does you just with before how of out you kind to of integrate Okay, what frame, you hit you then above profile that went the and expected things coming get to get how in, maybe long does it terms take you full would get rate the or up you what's in then forecast what and them to in of them your and when expected below? expect as

Todd M. Cleveland

and this of the is will has come as is in say spirit that acquisition the We day our throughout be drive come Sure, supportive one. we've again. just in to Todd process and been things stayed don't approach I consistent entrepreneurial our business. if to

months. within the to your we'll change five seeing answer to things maybe first six So probably question start

we and us future guess times of business there a digest by opportunities and capital we're from is hanging sometimes supporting future to are us driven barring So both in these a fruit there some of opportunities that standpoint. is the the not. low and that I sometimes growth customer let front kind of going of there's the which standpoint relations have A a growth them lot and fact lot

anywhere as it XX XX as somewhere six we to story short strong. period finally it not the hit rate and extremely start some would on between month rate our those I realizing average And relates has months. been hit to in seeing our long benefits be the is around So probably and think stretch benefits full

Our company see balanced we the our that a it's see structured beneficial the we advantage because allow benefits the has and company digest new culture the them more companies that basis. acquire jam and down for based go to have we to that and forward for both how not from opportunities have take approach it's the provide a allowing that and leadership approach us that them really allowed them on standpoint we it's to or compensation these success of things teams on a our to of really our acquired of to opportunities things

Stephen O'Hara

quarter Okay, on that just side? and was seeing there the are impact then MH an you fourth the in

Andy L. Nemeth

strong. units either a number know on The were the industry We of is as bit left then some were lots from FEMA We RV the MH This Steve. extremely into family Andy, QX think didn't pulled and in and pipeline a dealer from was on side units see on there the side impact notable business. FEMA but were side. a the existing they the and you MH slipped pushed QX backlog little

uptick So to we didn't a QX. just noticeable in see FEMA due

Stephen O'Hara

very you alright, thank Okay, much.

Operator

Instructions]. [Operator

from question C.L. King. comes Scott Our from next Stember

Scott Stember

the acquisitions boarding exposed pontoons guys. to on early going cuts through. that just from this industry recent the And have are or prepared facilities about industry Maybe are far some morning the how talk just now you your marine side, there's notably how guys of with is influx will you year certainly to additional that anything this standpoint about tax or the Good capacity marine could to talk signs in some there you tailwinds some more see that you boating guys than could are, probably to of a do demand? these handle some

Andy L. Nemeth

Sure When opportunity for platform continued talk really the is Andy. marine this the and growth. about marine Scott, you excited space the we're about and

our that that be in to value -- up to today well move Our with base. we support our is markets the bring ability of the all and and proposition to of able one flex positioned the facilities again are customer

that of to marine we've markets done space continue able their to So we've continue that advantage that and are well take marine on got exist stay positioned in to RV we're business. plans going to way sure But and make to today our of in capitalize capacity. on expanding the focused from other the our to been continue and ahead a to perspective space to the similar capacity the opportunities be

what like see positioned and we it. are we for optimistic we're again, well we So

Scott Stember

maybe $X.XX it, I questions in other you are know go low out benefit at most tax like again. down answered the already was to that you just XX% the that on that that been my the that of Josh, just the but Got rate have was over back looks for rate it that, what tax had, you quarter range? that it came if

Joshua A. Boone

It comparable were. with was, where we yes, that's

Scott Stember

so Thank you Got got it, I have. much all Alright guys. it. that's

Todd M. Cleveland

Thank you.

Operator

We have at questions further no time. this

Julie Ann Kotowski

call Patrick's and first look turn today archived A today's the quarter appreciate you Sylvia. be I'll call Investor and back Relations for We of over to again call on forward website conference to XXXX our on Thanks the the call. to we being under www.patrickind.com will at everyone talking replay operator.

Operator

ladies and Thank concludes Thank conference. This gentlemen. for you today's you participating.

may now disconnect. You

Patrick Industries (PATK) 15 Feb 182017 Q4 Earnings call transcript