PATK - Earnings call transcript Q3 2021 | Patrick Industries, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, ladies and gentlemen, and welcome to Patrick Industries’ Third Quarter 2021 Earnings Conference Call. My name is Robert, and I’ll be your operator for today’s call. [Operator Instructions] Please note, this conference is being recorded. And I will now turn the call over to Ms. Julie Ann Kotowski from Investor Relations. you. Thank

begin. may You

Julie Ann Kotowski

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

Andy Nemeth

market the Once to markets joining growth Thank Good thank we for and call end of quarter morning, with us platforms. the primary in report backlogs pleased again, today. across on in in gentlemen, you, you are building strong revenue the earnings and ladies Ann. Julie and our momentum sustained all

with ingenuity and is efforts, able customers environment real of will deftly tangible. tremendous care to dedication in to highly labor their their The very difficult is customers currents. to team’s Our to and flexibility be and partnership navigate our supply testament our this volatile and a chain take

continued needs to strive and in what and efficiently and automation products production are up of operations are models. investing scale very and customers and and culture, and empower tools and learning and work schedules on strategic data-driven to this, better changing and to business to high-resolution, better to and their and data focus our and and operations happening counterparts our create to solutions Our professionals ever-changing team communicate silos customers’ members effectively tirelessly investments opportunities able initiatives just needs this which solutions, the anticipate our of in decision-making is absorb Technology our improve deliverables. solutions real and be sales enable our with more the low-resolution in AI Layering delivery transform manage analyze customers’ collaborate, in our time, empower one and and have focus collaborative into a This team jobs primary and closely our dynamic quality machine with and will includes infrastructure our balance and of cloud-based to services. which down ours the environment. we their do

Our do people a today it means for and our we and how business. remains our critical emphasis success point what in on focal human future capital

philanthropic community philosophy for continue and team members and brand volunteer better afford levels. and and member to our pursue team both the enhance organizational opportunity community to together, Our the our opportunities, at initiatives better

approach. of Additionally, was communities our employees by and philanthropic to commitment grassroots service led through committee new fosters our events and to community initiated, volunteer created the outreach and a with team’s entirely our development initiatives

we to strategically footprint both the Our needs continues geographic meet expand serve. markets the to of organically and

needed positive, points across end visibility and primary XXXX product our XXXX. well portfolio likely with restocking model serve and Trends actively better and pipeline lifestyle base. continue to markets that and our as in cultivate other leisure capabilities of solutions as expand our which existing well acquisition evaluate parts channel solutions into wholesale and We our complement into customer very country sectors the our all in remained demand to housing opportunities, of

being While hand. remained now to by retail dealers lifestyle housing position our momentum, leisure and which as consumer ideally prevalent. DIY currently, on continue accord. and industrial state among XX% demand, traffic business raw strong many of markets and on a is traffic mainstream the inventory existing home to marine new deplete at our viable solutions material market part and across own of which improvement RV The revenue to the retail and and quarter continues leisure in benefits lifestyle commodities be residential manufactured strong component are models of driven represented constraining growing addition narrative, continue of different are The buyers. its and and products to dealer housing activity in shortages expensive strong And the the

looking initiatives On capacity. expand the the which opportunities, to of RV space side, from the and are enjoyment federal develop at demographics RV into to absorbing possibilities. increasingly camp state the time, which the continue are boondocking new At ground entry camping overflow parks, and continue remain agencies of accommodate accommodate private to RV the to same national the

third to end in unlocked to DIY, for For which which motivate of and trends structure operating continues operating repair demand both are resulting from improvement conditions The earnings share. house remodel represent urban gross and In boats. as industrial RVs mentioned has diluted margins, all revenues, fixed and cost transit conditions profitability And our prevalent, net housing increased housing leveraged income marine the income, strong RV and classes home we competitive and consumer. once policies of together improvement translated in market popularity the and anywhere again per and and persist. also our work and XX% rural migration quarter markets, increasingly approximately suburban into highly of demand

$XXX quarter to XXXX. $X.X XX% revenues quarter third third of million billion the of compared Our or increased

per Rodino, income Our into the we to further share. to will and net provide million, $XX increased more details our call XX% end now I’ll over turn Jeff than who earned diluted markets. $X.XX

Jeff Rodino

morning, and good Andy, Thanks, everyone.

XX%, wholesale represented same and XXX,XXX and retail consolidated of quarter a of third totaling We currently Despite the compared or the XX% XXX,XXX RV quarter. in decreased between basis. indicate indicate on Our XXXX, consumer considering quarter satisfying matching and basis RV especially wholesale and turns retail as inventory estimate approximately XX% TTM meet slightly between to to the or period. our further growing units dealer Restocking for over and not replenishment up demand has up shipments million quarterly $XXX our XX% third sales. revenues to levels wholesale were and shipments are in unit were demand, a down shipments inventories on period sold. up that in resulted unit are XX% shipments the retail XXX,XXX channel decrease the of units outpacing inventories is backlogs primarily that approximately XX%, result still wholesale low a XX% year-to-date to with extension estimates dealer underlying are customer on when still indicating dealer continues retail year-over-year cycle. velocity shipments inventory OEM of that well as same not of The unit happened, the up

of resulting inventory the the lots side continue delta marine also on shipments. trends extension retail and to of The continued retail restocking wholesale the and cycle. RV dealer parallel of in the between depletion similar powerboat outstrip business, shipments and On indicates wholesale

our sales of shipments the XX,XXX, that same quarter. to our on lack XX% wholesale shipments estimate the due XX% between our lack decreased the revenues checks. marine continues estimates XX% demand, $XX mix could and and to XX% unit of due to and estimated increasing XX,XXX to available percentage period. and inventory to million retail efforts to organic units restocking comparison channel wholesale based In On on marine representing our of the million, for carry XX% translating the strategic OEM increased up sold, XX,XXX but be of Our our of estimated of into dealer depleted as and shipments XXXX channel in potential a We due were $XXX or again, severely in to marine sell. into not that well quarter, marine

desire which use bolstered extending demand fueled New to trends trends. be entrants way fostering marine reach continue and touch in activities generating demographic conditions, marine further fishing wealth recreation family market in and favorable with levels. the time are recreation key and friends, as Outdoor wake and formation retail in spend network family a fiberglass, ideal points demand as dynamics by pontoon, ski a and by effect are weather to to

indicate date. on credit interest trends and into entering the conditions. value estimates tremendous increase inventory, levels sustained production are that and rate approximately Based And the to our are the through checks, inventories that XXXX the dealer markets every market proposition, are support impact lifestyle an Overall, to are continue to consumers X% Retail strength compelling believe positioned, shipments for to flat of marine markets pricing an the on extremely buyers unit than of benefit support retail TTM lifestyle are on Our had on in from day. demand strong consumer for new our continue demand. liquidity expected are not tailwinds to expansion ideally growth poised subsided. leisure hard recreation and leisure working lean attractive down and the customer marine our the estimates demographic environment, XX% to same market we more has wholesale space an has outdoor that the over shipments XX% inflation trajectory manufacturers base down with and and XXXX not tailwinds to continued as based marine current Demand period.

the turning side to and housing industrial Now business. the of

believe a multifamily and market relative household lend continued Tightness to positive industrial markets rates increased related continued manufactured New building to MH by increase starts of our in industrial from strong the demographic and home starts industrial that multifamily and growth trajectory and formation continued and indicating XX%. in of firm Urban, demand interest and migration single-family the the housing and and and MH backlogs trends, a demand areas, Demand but Housing urban formation by in do-it-yourself multifamily that and increased represents builder for MH household not lead validation in changes market. single spending for and markets for builds, migration patterns supplies suburban state-to-state housing support to housing the repair/remodel beyond. low in trends into improvement end supply-demand remains markets. activities, projects by and housing affordability our also XXXX. indicate our and single-family XXXX suburban we X% and home dynamic only quarter and will housing increasing improvement driven supported

total as seen quarter, not order sales in the to MH that levels Our estimated XXXX. of X% XX%. are OEM now is since through MH in the of supply over levels all sector, chain progress towards quarter challenges and facing, wholesale manufactured of were million $XXX to our continue market and markets OEMs our unit rates run increase tied wholesale which working mix of resolving XX% XX% increasing XX% of improvement substantial through increasing shipments production an the prior third million backlogs XXXX kill on currently sales primarily third year. between revenue the housing make residential unit represented are $XXX even Revenues quarter, our to in overall XX% housing trending home shipment or in industrial

starts increased housing quarter. in X% New the third

alignment nimble to of Thoughtful trends human markets. primary dynamically capital We capital business anticipation based missions continue level, anticipating strategies on financing of chain customer X remain allocation XXXX to build and flexible momentum our talent, to and and of at driven supply positioned in disciplined and our allocate through customer and have demand our attention unlocking and technology features and our and beyond. capabilities and and to resources consistently amenities creative through inventory, in and navigate our

over we a Andy to is solutions, investing that empower are better enabling in high-resolution machine solutions call to learning serve turn equipment comments level. solutions on AI, provide unified and our As our Jake, and the to additional customers now well who balance data-driven at as to performance. will specialized data continue These will I’ll highest members platform. connected as financial team automation, have noted, our the enable

Jake Petkovich

morning, good everyone. and Jeff, Thanks,

increased effectiveness with investments by of points of operations margin prior lifestyle Revenue compared RV markets. fixed to expenses quarter XX.X% MH third our our of the housing XX% marine $X.X and fixed to of compared up Warehouse volume content the from by contribution accretive increase to increasing content improvement revenues the and delivery per of products continue our XX% per per unit up and technologies, thoughtful we up and strategic XX% increased processes team’s versus in activity basis with increased to as Our billion, leveraging RV in a and The the the quarter the our initiatives. was leveraging quarter. $X,XXX sales marine, increased points margin attributed as capital and per net $X,XXX XX of expenses increase year. the human leisure Revenues with respectively. tactical the SG&A, the acquisitions. of MH increased our in execution basis in our of that an unit estimated and realize XX% quarter the costs reflecting which million X.X% unit. increased XX% continued of costs. all unit XX.X% driven margin and approximately unit. our efficiencies XX% margin the increased industrial and in the as a are Operating marine maximize personnel XXXX year. and comprised to prior operating markets, in primarily and Gross in XX% industrial in from scale production gross revenues X to our to primary the benefited associated sales increased increases XX%, investment of $XX operations from execution an XX income to $X,XXX basis revenues prior was XX quarter and per and compared result in production the for end in delivery content consolidated of decreased third from were RV third XX.X%, of unit points driven Operating markets in to per Estimated management XX% year XX% XX% which

in diluted share year. quarter earnings the per in was XX% $X.XX the from second $X.XX, prior up Our

rate tax year. to XXXX prior effective of overall for third quarter increased Our to in XX.X% XX.X% the the compared

be XXXX XX% We and expect approximately our year to full XX%. overall effective tax rate for between

cash $XX the flows. to cash for third to compared Looking million quarter prior approximately the generated operating in year of We XXXX flows $XX million of quarter.

our end will chain as scale productive strategy, our million the in the we to on inventory support acquisitions an information the secure included of $XXX the capital and normalized bimini we highly OEMs and as products customers ratio operations, expansion chain. size quarter a market the expansion of manufacturer of frames dividends, liquidity, $XX and unused we Business and for the leverage a In covers, leading Covers, market the $XX into total in steel of of liquidity cash automation of products, of marine this form primarily Coyote with the The variety manufacturer volatile fabricator this tops, returned third a for million canvas million of represent third in quarter, of acquisitions of Both as $XXX capital opportunistic further dealers. custom acceleration Our competitive quarter invested including X.Xx. capacity and the in policy, share of designer and third to eventually and portfolio enabled million begin Tumacs support our boat intervention total quarterly strategic in for patterns alignment and $X supply expenditures In and capacity design net continuation revolving operational and our on of a accordance OEMs initiatives, context in time, deployed of for of demand. hand, cash disciplined securement solutions had our the aluminum and we investment At shape. the of OEM proactive of customer marine to with inventory dividend marine repurchases. to million combination leading same of facility a our supported to performance. form strong marine allocation materials our capabilities. serving the our growing cycle primarily in capabilities of million our acquisitions strategic end well to quarter conversion our comprised supply XXXX quarter, strong and take announced the in Manufacturing, previously $XX approximately credit technology At shareholders translate of

needs. strong Our of leverage time our resources growth forward while initiatives strategic at to and same customers’ to success us support production liquidity drive comfortable our the the position providing

of on retail to estimates factor anticipate marine and and from current and strong recent between units the XXX,XXX limiting the currently retail be at year. digits point demand channel wholesale be has We relates inventories created. inventory current units the it XXX,XXX been full hand wholesale market XX% new believe likely We believe XXXX of marine on well to on a a our the XX% down recalibrated we normal inventory availability to that shipment until full estimated not the presently trends, estimating also will serving remain and as it to RV to be to as as up levels relates Based Our the up continued levels XXX,XXX in representing XXX,XXX desired full the unit based expectations, inventory historic with shipments below late conditions RV Based RV estimates the new on both double sold, we for XXXX, representing digits, low into for retail and between range normal that space. weeks XXXX. estimates a are on low dealer year that XXX,XXX retail these single year. XXX,XXX be and units markets is in dealer and level and to

up shipments For mid-single unit up to fiscal wholesale shipments We unit are XX% marine between low digits. and XXXX, estimate RV XX%. to we currently be wholesale estimating

low estimating we retail, to are down RV be to For mid-single digits.

low trajectory mid-double of continue up In new to unit to mid-single their starts currently MH digits in to growth housing housing strong XXXX. digits. expect and we double-digit markets, in industrial shipments XXXX increase we are be marine low retail, the and manufactured For wholesale to estimating

in housing with estimating our of the current a in industrial are high of markets. trends to we XXXX, of mid- and digits currently continuation both both growth unit fiscal For markets single

strong offset expectations, completes And expected to and end end $XXX We in in and of all organic $XX estimate kick and to like for across remarks. the demand million year approximately cash liquidity drive Our platforms. of market would automation continue XXXX, the full to investments continued Andy. investment market million flow table support support our markets. and cash growth capital to increased to That I labor $XX across flow projects my enabling the reflects expenditures us of long-term our which ball the operating to million tight

Andy Nemeth

Jake. Thanks,

in markets towards end Retail and likely to replenishment projections point production As and our into resulting demand XXXX. noted, strong. is visibility OEM extension wholesale and ‘XX patterns dealer and continue into well of an requirements

focused XXXX and opportunities automation to have members improvement and continuous fiscal and actively innovation with flexibility, investing enhance efficiencies scalability, platform and and across on plan our we our drive We platform. for been and our and in as initiatives across team balance beyond

our by continue supported lots replenish initiatives, will models our chain strong and backlogs. supply work depleted customers opportunity technology, reduce investments they liquidity provide and to to and as their systems flex ongoing and Additionally, dealer record capital the human serve in to

culture. success quality the solutions-based their foster remarks. well-being capital we a our complement growing communities execution trustworthy, deliver model focused will team maintain customers, strategy team and this outstanding disciplined models based work markets during to This continually value which high-quality prepared reliable, our The essential and continue unlock patient, members and the allocation our shareholders, We improve to end dedicated, and and our drive and and as fragmented an and Their for efforts and partners is operate. a innovate and drive on we XX,XXX our of resources to is with service. our of our data products in team investments and enhancement focus customer-centric members, to dedication of detailed together quarter long-term

are to take questions. We ready now

Operator

from [Operator Instructions] with comes question Our Daniel CJS first Moore Securities.

Daniel Moore

that to right, Quick mid-single Congrats digits. clarification, up retail performance. on Is mid-single see me this let XXXX down the right? outlook, strong the I digits wholesale heard low on if RV

Jake Petkovich

Dan. That’s right,

Daniel Moore

up And marine maybe up on digits? mid-teens retail that’s single

Jake Petkovich

up retail think low mid-single is That’s to right. digits. We

Daniel Moore

Got fast I sure was super it. typing Make enough, helpful.

at and the quarter, is supply to operating you back the on strong seeing. the chain can that words, light and In or of impact really quantify those margins Wondering other particularly normal margins, of quarter. more operating margin go looked challenges have in in in rampant Let’s environment? a gross might stable like everybody the what inflation margin if

Jake Petkovich

Dan. Again, this is Jake.

customers as the of we some way see, through those you with on through seen partner of to we our expansion the their to the to we kind consumers. are continue in materials, have are those field making business as our chain has pass able pretty -- making can and pretty entire know, year value we margins, our this but ensure where along. that And So closely our raw still cost strong of teams to

include prices in that have pass continue -- be been successful. those to product So those ability and to pricing along -- those our

that in we’ve over about to spoken time, about materials talked think the we’ve little and a with out. cost of a cost labor bit it by followed we in then inventory those of a our highly lag As we And works as variable which structure, well a costs, there’s variable help the lot overhead. past, of those key smooth us XX-day days are context itself the and of have

tell those pricing, and little we’ve spot certainly gross lot has some of that But of make up bit most some you flow. there, of material continue is points that When you’ll which out the margin, coming and but to contributed those basis of the the big up, kind costs of start there you I we’ve vendors. that level. and maybe a more good been ebb topics. on a quarter, XX, to certainly one bit pretty improvement see as little peeling little of a across freight times, in to in manage also terms has a XX bit bit those place distribution I and costs. volumes bought times, availability seen we’ve we’d is some though, at seen have raw freight see about away focused we’ve the episodic other But of in little of a tightness production or the been to a from We been would at this opportunities probably availability for increased current of the through think our headline

Daniel Moore

of then we margin, Really are as a QX see to we shutdown? given of QX helpful. likely and think operating terms bit a little likely in that to do about And typical see levels sustainable? think Or seasonality dip holiday in

Jake Petkovich

Yes. is with We Good this question, Dan. that started this year expectation would we Jake. an Again, improve our margin. operating

will a And we December. But points And and I X% started over basis of up basis to over about very that. by points think here XXX XXX that that, a adjusted from we’ve at bring talking about average but in you’ll XXX will quarter. you which year since comfortable that to still, we it fiscal that flow down to number with late and pause season your it see that, XXX lot To that had of point, operating our shutdown see XXXX. up ourselves we holiday absorption feel to holiday, continue number. less XXX other operating X.X% monetization of stand around has, towards be capital, $XXX we that we first margin heads we there all cash the Christmas with see little million also of working a in that a expect see as bit to well little fourth and November, Thanksgiving our take we of around quarter, we’ll a activity. and little customers And some bit but

Operator

comes Our Scott Stember CL from next with King. question

Scott Stember

well. as retail on just little Congrats parse the in more bit RV maybe out great Can a markets, for the expectations versus you recreation marine. quarter

any availability guess, limiting RV be the be of side, reason I But year? and big a there about, should why marine RV is next factors. such divergence there the on between talked one You will other for

Andy Nemeth

Scott, the this question. is Andy. Thanks for

pace calibration a we’re what at retail the kind less retail through very inventory the marine we strong. availability when inventories is strong, there. pulled RV we of and think with the look very out at of marine the saw retail quicker The of inventories units seeing I

later. result that’s And we to decline, months then of marine X really see couple of so as And months a and mentioned. ago, followed a retail we availability, RV started

got traffic And a so is the what issue little dealers was There a we’re surge seeing new a year buyer or there all was today. that the the -- the settled lots is at traffic little from and in earlier points still of availability it’s bit variant from in, our a the remain at today seeing strong we’re touch of bit then strong. we COVID actually certainly and

we’ve seen our first of channel right all, And is degradation severely view in now, constraining So is mentioned, the we’ve it retail retail traffic interest all, side. second is inventory that, depleted. of as but the not any in and

perspective, So our it’s today. from purely inventory related

Scott Stember

guys? are more having back you expect pushback continues protecting backlog? talked increases, continuing OEMs, related backlog then lot or the And out worrying to Do being with protect orders coming to it. Got price as work from the with any Anything of made a about if they to of indeed do about backlogs potential What get price and OEMs up to put increases more. hearing? to dealers and you you pushed end through to

Andy Nemeth

I we’re elevated raw material space that think that is the market we’re dealing across with really our dealing right the and is still now commodity expectation with. products the that

And so at I’d but say an somewhat they’ve stabilized, level. elevated still

downside. partnership And cost to continue costs our that with on we’re in that upside share and we input we’re and the and as customers be are to to certainly going to able the going proactive partner so manage

and continue again help pull base, through the with them sure customer to so back that to push we’ll to able partner be pricing. is And and them stay we make with expectation continue our pricing as they

to down to there. happy commodity coming prices I to with think certainly stimulate everybody out tremendous would continue be activity be able

to So way. going we’re either partner

Scott Stember

Patrick? between Got just out it in to specific one what quarter and it. just item. sales, And was Organic then, the industry flesh housekeeping last and Jake, growth

Jake Petkovich

Scott. it’s Again, Jake. Yes. Sure,

So X% as XX% we on up about, basis. quarter-over-quarter, talked sequential up a

show So up on to net that acquisition, is of the and up through to XX% in net of that Industry and tell share to to market of to kind XXXX. third the come we the growth you, X% industry acquisitions, of XX% up about quarter XX% about and some of think rest quarter-over-quarter, And attributable XX% didn’t acquisitions what so XX% about I that think XX% of is way remains that pricing about XX%. that would activities. gains other

Operator

question with Daniel comes Securities. from Our next CJS Moore

Daniel Moore

over When your and we need in what normal marine. for are that both terms of at new RV the terms you restock from levels, in on your the we of inventory units, about plus in based retail, to looking talk next outlook perspective year

Jake Petkovich

thanks. We that time that what the this to and lot year. will take maybe thinking bit. think in a about through like Dan, a But go the Yes, look little back trends about And meantime, we’re in a where us. lot

As us drive adoption well customers of all as year has and things retail. a with the year, the rather -- I this the us at leisure engage that we think on our transition Andy referenced retail really those how that the transforming people would this as to would continued delta surge we include expected retail. that or factors and lifestyle lot And strong outpace wonderful are to wholesale start, family, activities outside, a friends through have led of to with

equivalents. year-to-date, just we’re and get some a retail we wholesale through to hit getting where point as So

what I where units have think the on at And there’s inventory with been units. the to But it’s on. are figures we put about talk and some. is, very try about production record and RV to than this it’s these lot in going marine. going going months levels, we rather of there’s that’s our basis. activity into shipments think wholesale that, XX% when backwards of still where the through quarter, still shipments, imbalance, really a across a about them out we comes time and us the out flat we up, finally in in pretty specifically, working about inventory ameliorate little XXXX. year September -- a a think of And how think of point supply-demand very think the it year bit to XX,XXX think there XXXX a the they facts of to who’s and where chain, you strong year to point takes and to be some record restocking see gotten we who’s was below were value evidenced still production still out is to folks over the where that similarly XX% a as taken that of means strong that’s be out We that pre-pandemic through When been about retail it there view lack wholesale sale the

takes lot balance to -- new us the restocking normal. where and we’ve we’ll filling gets about which the to that up ‘XX get XXXX, past for through activity to speaking loss, inventory been a year that that be through So the and

more a on XX,XXX, that than swing we RV fully pre-pandemic the to it a expect it what their find Is little that’s day, probably to accurate going on XX,XXX where basis. inventory the place today be and where think is lot velocity something less people a as pendulum looks up way be it’s But it at was land. to the I side, will of an units of like right of of bit that a end will north somewhere the be.

I get a to to to unit equivalents going again. time there’s period that in, take you unit kind going of settle to where think of in out that’s be

bit really probably we is get quarter of expect bit same United But as the past States. about the the people all geographic more that expect ability lot that others where benefits cadence. very that’s it’ll of sell bobbling in first slowed OEMs is here. the really a up the find take fully little marine into up like cadence. very, into bit. in fragmented a start XXXX. spoken the And concentration given first not scale of little geographies different Marine, quickly -- types of it a follow its to to to from its entire of Marine us more calls RV of a and not the that We’ve Whereas different base the with see supply So units just as to as be lot that that only the into around ‘XX right we’ll we down until that a well -- late effect little probably half but kind they us

legs It a hit otherwise lifestyle, very some the and real with leisure COVID lot level. a refill So more we than believe ability that have to that this, it’s towards quickly you it’s tend got really when and persistent. shift to again, drained which lot a slower the up inventory

bit the think below today. think normal. that before than it probably RV takes search I So Again, pre-pandemic that we is you for XXXX that’s hit was where to start it little new somewhere that’s where deeper a longer a into little

the going are that there’s in kind kind what ground middle a a out you more kind or about still see of chain. velocity the XX,XXX think -- feel velocity little units RV -- those that’s even get on of lots in, there got some I to up are a little across in acute take again, is a up to side. entire it’s the good and units, than so, to if think where But numbers a everyone’s shortages they’re and on like point this of value you level

Andy Nemeth

a estimating is want and add some think our in I expectations at look give at normal end for is And Andy. at little that. When numbers in we this kind see where new QX. Dan, XXXX of we of to this looking to like we’re and at point the bit just include we’d teams our here break time, we’re the that that I XXXX, XXXX. to seasonality a

People little see like a see to you in break. shipments to fluctuations OEM bit some retail a of pull, still backlogs We’d the taking teams units. out give strong seasonality So as versus there. the are

just every much until laser-focused plans, we’ve annualizing so our modeled of seasonality on we’re end some of XXXX. single to it into so expectation the us month an still kind and out as get And as not and doesn’t it

Daniel Moore

else, you now on shipments when you XX,XXX, chain, supply handle comfortable your you your at in monthly average, OEMs would that and your outlook XXs, and XX,XXX the that. -- the low the XX,XXX And everything labor RV something Excellent. see and can imply look what you

Jeff Rodino

of of sectors and on levels that Dan, where agree production believe and We it’s through strong to this pulse things there still We with Jeff. kind XX,XXX are marine we’ll in range the Yes. keep from RV of up rest there’s the measured pretty that. good our year, is a as that the kind bump activity, but see and we XXXX. XX,XXX then through get into

Daniel Moore

me Got X it. more. if or And you’ll for indulge X

Any would pursuing well as some helpful. interesting potential sense AI there any be for that automation and and as benefits? the you’re the initiatives Just commentary of

Jake Petkovich

Dan, Again, Yes. this is Jake.

So the $XX Talk the with of at you look And has if expansion million $XX year-to-date about $XX about $XX that of quarter about that and $XX we’ve absolute business CapEx can been million so that building example. that expansion. we’re been ventilation, of $XX to number, their made has putting buying transport plant million from our in this where physical our million up away just a improving a around through for year. efficiently million capacity million, in move they then lot it that an and for and new capacity standing

we needs. to less and true heavy in machinery and all with better of we fill element of So with CapEx of mitigate of little find about as our hiring so bit and all more folks and million out can of of productivity to element try that increase increased $XX-plus waste some sorts automation has there a productivity, a that expansion, some robotics software to increase here production of reduce way difficulty make practically is the

we’re focused software. an element it. And on there’s So of really

whether that How our in supervisor’s in machinery here back down we shop investing all the we both what the the factory across our the Elkhart. at the to ability way enterprise, level the about office, to on floor -- process to We’re or more from more call headquarters I think Phase analyze applications. some a manner, think in into gain type the and about information functions sophisticated automation accounting automation includes to we II that’s a Phase advance that as to implementing that a robotic

of So going that a lot on.

that to expect continue. We

line. from you a lot schedules are content doing, manual across things, bow come could old but it walk even heavy taken which the parking will people got things it’s American working off you future, us at better wish in I And pressure do to for only future is doing also not it us, drive of of facility, particularly I you think really with making that It’s customers other some those be go is highly now, it the some created nimble. calling out take look out North moving was around. and They’ve new as more It’s of the one might this every day. production work kind what make at and but not our that with do or right the thing, what’s more the and I Products business. but difference to the automated available, hard also back meet and our glittering and we robotics, great us will trusses, the better of a folks and there and way at benefits for Forest we’re the making

the do now lot it’s a we’re seeing makes honestly, and it, expense the And sense practically past cost, everything returns with over of from to in excited investment the and the So about great. definitely worth are it labor increased we’re really that materials, really then future. years to and X.X

Daniel Moore

now to amortization get Winnebago quarter, $X. Last a is last just you Excellent. effect adjusted you of reporting reported expense one, back an $XX of annually. you near get bit somewhere And similar to upwards EPS tax little a million but just question, this number if what week, that,

Just a basis. wondering on go-forward consider if you’d that’s something

Jake Petkovich

pride And drives as Andy generate allocation of able of EBITDA a thing time. cash great business, And or to financial that measured as operating XX% income where variable shareholders, whether for very And reporting yield question, that were continued that as capital It’s we to my our just which cost under been our revenue we’re have speaks of we’ve experience, shares doing which fact. free and it it on in ourselves $XXX we’re are a Again, an One that strategy, I was our platform the our this strategic acquisitions we our controllable that Jake. a $XX matter is, costs. which the a long really about percentage to and nimbleness cash for of nontypical convert speaking great can how company, a to quarter measure flow manufacturing it’s and to is capital Dan. investment this flow, That’s of just million from yesterday you any flow. million in to of measure ability controllable but cash through XX% for in into industrial element returning see year-to-date. is our and

thinking More to on that. something So we’re come about.

into well our and that people We’re cash and earnings flow that and of the sure as else everything business. as goes thinking appreciate making calculations these power lot a about

Operator

Julie Instructions] time. at [Operator We Kotowski to have questions this now remarks. turn no further over Ms. I’ll Ann call further for back the

Julie Ann Kotowski

will under today be Thanks, our Robert. archived the at A website, call replay call to for on being turn look today’s quarter www.patrickind.com to over I’ll talking to Investors. again on call. and our everyone appreciate conference operator. you XXXX We call forward the now of fourth back For Patrick’s

Operator

you today’s We participating. you. this and thank for concludes gentlemen, teleconference. Thank Ladies

now disconnect. may You

Patrick Industries (PATK) 28 Oct 212021 Q3 Earnings call transcript