- Earnings call transcript Q3 2022

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Operator

Good morning ladies and gentlemen. Welcome to Patrick Industries, Third Quarter 2022 Earnings Conference Call. My name is Kevin and I’ll be your operator for today's call. At this time all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. Instructions]. [Operator conference this being is note, recorded. Please my Mr. now please to to over call the turn It’s Vice Investor O'Hara, Steve President, Relations. Mr. O'Hara, you may begin.

Steve O'Hara

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

Andy Nemeth

the by the as sell continue Patrick Thank us analysts, remarks our pleased our and will Ann term joined communicating on as she new to Steve strategy has Stakeholder to caused to He into We're the of entire welcoming XX shareholder you services would ladies who our our Director behalf moved September. experience shareholder Patrick prayers Investor Steve we be previous a Relations by the including end leadership Ian. Engagement, in to brings Patrick over Senior VP team hurricane of you, offer of role Steve. where our Investor coverage and and of a team. on side Julie of to thoughts devastation driving and us Relations continue long we years markets. like by as On have my Good O'Hara, and thank involved for call Kotowski, like impacted joining former Philanthropy morning valued of gentlemen, and value. begin Director today. and member remains family, of those to in I’d create new

swift the We operations, are by extremely in families have affected of and by impacted and their a others members, located saddened our the region several friends We destruction. and members recovery. team life wish loss team storm this and

we our help to products across this our As will of ready have in provide and in and partner the assistance solutions, resources bring breadth past, stand expertise, to relief. and our key customers from the we to with assist event recovery industries

second team efforts thank want drive performance to our results, third to and Moving our quarter despite I as for in the the profit both from recalibration in continued we dedication culture work RV improved achieved of despite the ongoing to within third their revenue, members production better-together industry. from in decline income year-over-year XX% a XXXX. XXXX and quarter quarter gross and RV the We net growth wholesale sequentially

have in to As the demonstrate consolidated market, business despite evolution diversification, sales accomplished. of increased to improved of RV strength our XX% portfolio a product testament true resiliency proof a our point model, and decrease X% in the strategic sales we the

in health partners half the the displayed to the June, units, rate and run an applaud and through XXX,XXX XXXX actions of and our Following than the leading more position that realities optimal RV of OEMs long recalibrated and annualized production discipline OEM production the at increases growth. we by the scalability see alongside dealer market reflect starting industry in the term we are more consumer anticipated first better pandemic We a post their year-over-year today, believe inventory demand. as and industry appropriate experienced for scenario

remained strong marine quarter, normalized, with dealer historical demand RV in While inventory the demand below still well averages.

business on pro-forma billion grown in over first has in basis XX% and quarter for time sales a marine our history. be to revenue third TTM represented Our the $X of our

the Our MH which and marine the thirty XX% performed represented of served offset decline predominantly more and our revenue, RV industrial the with the than also well and market. These during sales our margins quarter U.S. housing in bolstered businesses quarter revenue businesses to market. combined

home rental with and in existing quarter, are retail supply in time a homes remains up to has more and rates to Many efficiencies for the a industry MH marine, headwinds face we chain runway channel rental versus macroeconomic housing Many navigate uncertain long with MH disruptions, their point portion OEMs strong as us able the pre-pandemic their budget put historical able growing XX% have OEMs the times, believe base will slowing most likely of strength line a MH the and rates spending. rising dedicated gap, and the and believe to in positive. in will and focus and our with that portfolio dynamic infrastructure home. strategically of rates larger a the built for similar rates. limits will production diversified eased are balance and returning overcome trajectory our family industries, other take headwinds residential need inventory housing likely communities allowing interest affordable markets a more inventory easing of from period. design these We and oriented is norms. a in a us of environment for on be Although Supply to themselves. and in us challenging position have margin country's pressures sheet to inflation shifting affordable offers that chain to marine resilient gained home developers supply and advantage to where freight lower longer progress the retail interest rising site price thus in geopolitical are plugging capacity are and withstand The opportunities refill solid operate our the consumer rising homes in for better term that will be economy, industry added used backlog lead to non-discretionary catching further a option market. fill believe plants. be have XX% We and profile, made In last REITs markets in present the interest to are RV these have our

to this monitor impact continue understand to consumer end markets. trends may We our spending how

operations flexible to important The factor us in environment. our in and the resiliency of well for remain scalable any operating and model leverage to perform is our

benefit which balanced and in strategic its increase our given of to to less the cyclical of a demand also and repair, aftermarket In presence, outfit products. the acquisitions space diversified more focus to on be our tends addition marine replacement continue portfolio, products premium for

past earnings points, from market These XX the basis to doubling, penetration decreased and percentage see profile today. concentration margins focused our more increase RV EBITDA and you increased years power than while five the marine in RV results XXX more stable earnings has revenue a providing our more markets, despite than stem effort points. For have improved housing the

addition us to has further Our training partners allocation profile. has and product tremendous to committed the and our strategy our and to Patrick We family remain acquisition capital portfolio loyal leaders brought strategy enhance in made team and customers strengthened earnings stronger. our bench members,

pursue and continue will continue organic we in to automation, the acquisitions, operations. infrastructure, and also our While our technology capital to growth expect accretive of improve to investments we human efficiency

basis, and automation robotics and our embracing labor of more and efficiently our our us in quarter billion, innovation turning are mitigate us of revenues our our will which XX% increased approximately helps expanding workforce. sets allows $X.X billion. the deployment We and the faster, our consolidated dependence were revenues revenues position on scale to to a and the And $X.X which skill year-to-date transform continue X% $X.X to third of to XX numbers, trailing operate billion to risk increased our factories, finally to month

diluted of of income the our notes, I’ll earnings now quarter impact convertible to net in turn $XX.XX $XX.XX. the income X% and was per per to net increased $XX notes, the adjusting call $X.XX for or for share share impact treatment increased Year-to-date Adjusting XX% accounting per diluted per third diluted diluted convertible earnings adjusted $X.XX. to $XXX the for share, accounting was for approximately our Our the treatment share. the adjusted Jeff. our the or million over million

Jeff Rodino

morning good everyone. and Andy, Thanks

team to As not positive generate RV to without our QX, due we and diverse portfolio contributions efforts of have able more growth businesses. Patrick more and stronger lower outstanding would the possible build outlined entire revenue demand saw we we demand. of quarter expectations last stable This meet a in but are customer the margins OEMs to to been from quarter, in

consolidated industry recalibrates representing Third first the XX% unit levels the RV sales. to last slows wholesale XX,XXX the half year quarter of XX% $XXX RV record shipments decrease from as this velocity revenues of decreased wholesale and basis. million, XX% of year's and retail demand and inventory

by on and to increased acquisitions. gains, content XX% share per a unit basis unit, per RV TTM market Our $X,XXX driven pricing

to commodities, elevated remained pass pricing savings beginning our are along to customers applicable. experience commodity normalization in price where While the and several during quarter, we

during evaluate of were units As retail implying and OEM the have XXX,XXX XX,XXX approximately decreased units we estimated our to net shipments and the to reduction approximately changes totaling adjustments inventory to will with dealer pricing quarter. XX% unit approximately RV customers. occur, in a continue partnership quarter, from by

approximately to quarter weeks. inventory at XX of is indicate below of of down weeks the XX end approximately and quarter weeks-on-hand levels third second XX XX two of XX XXXX TTM an from pre-COVID are the estimates Our the to historical that from our end weeks the weeks. estimates at XX to the This approximately dealer at

an while Our to $XXX by marine million, unit inventory wholesale primarily unit low and X%, XX% driven increased to market to X% XX% our pricing. of down shipments due gains are representing an estimated share estimated consolidated increased X%, acquisitions, revenues shipments Marine availability. retail sales

Our basis estimated per marine for shipment units’ content $X,XXX XX% increased a TTM on unit. to wholesale

billion exceeded sales by continue marine Marine dealer year surpass pro-forma on inventories TTM a basis end. We actual $X sales be in have to lean. to billion expected and $X in

single for Our position channel stabilization strong the unit expect in consistent quarter $X,XXX a on to to MH historic well nine sales. below were XX production XX% into our Revenues dealer roughly industry housing carrying capacities. unit. through XX% weeks. and per with XX third quarter down content and alignment to remains to pre-pandemic seven of with Based improving to Rising shipments housing represented X%, MH inventories decreased housing and channel effective weeks estimates quarter up indicate in of believe residential wholesale, the that likely inventory primarily $XXX family OEMs and to averages MH the backlogs and an the estimated interest estimates viable, hand, housing on million are XX% QX robust increased MH approximately and the we site alternative through sector XX% checks, XXXX consolidated occur housing. our have increased tied and unit with marine on remainder housing. wholesale multifamily and residential on market approximately of build We residential per maintained to starts XX%. depending are the and with XXXX to the multi-family cost model. manufactured XX% third up and rates single starts in impact starts Total XXXX

limited for for long growth. multi-family housing believe inventory we However, favorable factors capacity need remained term additional the and

of and increasing million efficiencies on of the scalability months, one and operating installed our system showers investments Frontline track and together the fiberglass allowed An initiatives boost our line over Bath and improvements productivity mentioned, focused and using the initiatives and driven driving and a and automated the These are which throughput recently as past products. On employee Fiberglass shower increased prime several over the an better their Frontline quality our automation automation culture flexibility capital operations. years. by $XXX synergies manufacturing executed Baymont throughput. we of of over example that and front tub involves example we produces safety. improve have XX operation, business and had past blueprint frontline Andy a to are in our improving we other overhead tubs, With fine-tuned

continuous improvement Lebanon, Another electrical example operation products in together automation and marine of our involves Missouri. better

in CI has CI improved our taken and as and the that in more implementation MVP Our cells, productivity resulted culture implementing training a after facility by CI was team than several with as during robotic operating several transformations increased previously XX%. after and Actions constrained and quality, well capacity throughput team. implemented efficiencies, have

higher ensure with and excellence perspective, organization as margins. our improved minimize our drive From provide visibility proactively best responding is but drive better in labor continue to share element, culture. our improvement are RV human easy, and ways an value dynamics. are managing continuous our teams alignment support practices more serve reducing We will us to and never market across to to members. to strategically develop, normalizing, These our market we labor position team demand market and we several the customers efficiently, initiatives Due the to impact on have is operational

production Additionally, teams our appropriate capacities ever flexible changing to managing are levels. consolidating with their and production remain where

of due We market pursuing a the today to dedication are entire Patrick in stronger our performance team company end diversification the and strategy.

stronger one today and to environments business like We we is operations resilient. are profile better our navigate challenging margin the our positioned are and face and more

with more important Jake, call to like renovated. service This that hearts which were near is was and home have of renovates and we Montel, a I completely over Staff family proud Army and project to selected Michael house U.S. to dear year one the sacrifice. respect military very culture. years was this the of The City and earlier and their highlight the recipients. veteran for a be presenting Michigan Sergeant to turn to Military sincere sponsor Before year local service fully family veterans I Patrick the Stupar, gratitude express with our his Makeover would on collaborated to their appreciation, military XX

great cause. We honored to are support this

give remodeling Midwestern as using completed to Patrick over a showers commitment performance. operations It's and and comments who financial fixtures a worthwhile additional to provide and veterans cabinets, and to by our our talent are their Jake, back and we they Our time including call families, to to products, the the small able the their team floors, members several enterprise such among others. countertops, token our across I’ll compared made now grateful mission. be on will volunteered turn

Jake Petkovich

were net sales to in good $X.X OEM a alongside and shipments billion, housing Jeff, QX offset an and strong by partially morning businesses our RV reduction Thanks, performance in everybody. increased anticipated industry X% production. marine solid

of diversify better Gross customers ability from diversification margin, of XX by relatively in contributions differentiation, and platform acquisitions have OEM benefited production market product our decline labor we of by basis product made the driven gains share point past initiatives. acquisitions, XX% to the primarily of allocate leverage principally points the impact and and to automation scale operating in unit XX realization recent enhance our income our increased our and RV also the and efficiencies XXX the portfolio, by to the Operating remained in revenue We months over driven resources a flat portfolio. margin our driven serve production and quarter. decrease to a basis XX.X%, despite

adjusted to diluted present increased continued effective position accounting continue to of initiatives take Additionally, Amortization in these $XX allow that strengthen the expense term our and or to X% We impact will Adjusting Net initiatives due the better economic to our capital in customer past have share million net our plan. long alignment in $X.XX. in opportunities with software further completed to drive themselves $X.XX we year. for XXXX, our income proactively to the per notes IT and believe any infrastructure, of per environment and us for deliver invest our grew share. a was convertible income diluted treatment value. and advantage experience, to in us foundation solidify strategic human acquisitions

the was rate in tax year. to in compared quarter effective third the overall XX.X% prior Our XX.X%

XXXX tax XX.X%. We expect our XX.X% for approximately to be to effective rate overall

cash million approximately flows, to we in operating our million in as cash well compared to flows This year’s of to approximately $XXX quarter income, prior second the $XX in a result we our capital net call. as working growth monetize was and quarter. anticipated increase ability our profitability Looking as generated improved in

chains to not requirements demand and support monitor levels while trends we inventory. continue adequate unnecessarily customer building have to our will supply We to ensure

months result supply needs team objectives remainder severe for inventory can to proud balance these of constraints, are past work customers' and to still capital into over of the during we we continue XX has levels chain as our and While the done our our the of our elevated a monetize working believe XXXX prioritizing are XXXX.

us initiatives macroeconomic We capital positions steadfast we the various centered range, our that initiatives expenditure may invested and our improvements. capital investments are $XX million our described. in variable dedication to coming This year with full technological capital $XX through structure, our and on million expenditures the in environments we still expenditures, face demonstrating quarter operational developing we've materialize be confident efficiencies that well to and the investment In automation, combination expect to highly in quarters. cost

$XXX convertible have Although on well-run, dividends. approximately we year-to-date, million a those any higher aftermarket. a form in continue repurchased higher the million focus into million and comprised did capital in facility total which bolstering total has unused Acquisitions pivotal our $XXX our to supporting cash-on-hand our in $X million third position quality in This reserve businesses on quarterly deployment with quarter cash we've flexible million $XXX facility the million. shares that nimble sell In our of dividends, not in in million our capacity liquidity in $XXX.X of August invested for been and a approximately credit strategy the of we for focus and on At and shareholders. towards to and financial priority capacity expanded $XXX the acquisitions $XX to third due a quarter, complete of in and remain directed returned execute credit paid million shareholders million, of million shares our $XX resulting impacts $X the returned the we as had we XXX,XXX $XX strategy. products on ability of in net includes and unused the revolving value to approximately our diversification. XXXX. repurchased our the million Year-to-date business of we total quarter growth our We to facility end engineered February credit notes $XX revolving settlement of and

X.Xx. net leverage is total ratio Our

working us to profile, us while Our the This strategy. needs. best macroeconomic to capital our navigate flexibility providing allocation to capital, continue to uncertain to profile customer’s the meet our robust environment disciplined gives monetize ability positions with liquidity coupled execute our confidence

approximate market have seen with the Moving to full OEMs retail RV units starting XXXX to levels. term be approximately shipments to XXX,XXX RV, our year approximately production shipments wholesale these XXX,XXX year the XX% implying We think adjust healthy a and for will implying to we down units. of outlook currently approximately to long benefit expect shipments currently XX,XXX keep estimate XX% industry. We wholesale elementary full to QX end XXX,XXX be unit We XX,XXX units. actions to

retail chain XXXX. marine and through recover We as XXXX Fourth digits. supply inventories Our year units retail market, double marine year retail fiscal OEMs digits quarter on see marine constraints. current single include to RV wholesale wholesale dealer low and expected these into RV single digits versus low the be based figures. In expect high from up down XXX,XXX single our improving from prior full and up estimates the shipments we to be fiscal but for be wholesale low digits still approximately down for lean XXXX XXXX to is period be to

pontoon of sectors. to aluminum recover faster a markets market allocation the in expect the resources scalability pace from due and to labor at We

down XXX,XXX currently we wholesale fiscal For of a digits base. marine, be approximately and XXXX to unit mid-single retail off estimate

up on to end completes we housing our XXXX. we absorbing to housing general to fiscal my low sales shipments housing remarks. In wholesale for side digits. double XXXX, We real new the to available On expect be XXXX continue up be to to X% starts That expect expect market, be XX% currently digits production low single residential housing a basis. MH wholesale down the in time flat retail and business, of

ready are We questions. for now

Operator

Thank you. [Operator Instructions].

Partners. MKM today Our Scott first with coming from Stember question is

now Your line is live.

Scott Stember

congratulations morning Steve. and guys for questions, thanks taking Good and my

Steve O'Hara

Scott. you, Good morning. Thank

Scott Stember

order can about stands ‘XX dampened there right Yeah, pricing could move that XXXX coming models had maybe some talk have I open to you RV out and of that production know still on now? activity. of the house, where were some models

So see just look production maybe levels what could as like of or you you RV right idea us an sequentially give now them? year-over-year the

Jeff Rodino

last here there, Jeff. in been This production where that's manage weekly the several adjusting levels, kind retail really we are they’ve and of still a from at were or going comfortable as and shutdowns monitored and needed. of them to there. a they the as normalizing - continue a Scott. September. doing see Yes the been is OEMs know they they've the daily those We basis out Production what or to week you have really see months where those feel We day manage they on levels monitor versus and on we're over to

Scott Stember

give Okay, the quarter, organic And you was breakout it. sales in what Jake? got can the

Jake Petkovich

Happy its I’ll the Jake. you to Scott, rundown. give

on X% know you basis. quarter-over-quarter we're give you the components. I’ll up So a

XX% or industry on percent down So volume. so

that's perspective the that contribution in an As RV, is down this quarter-over-quarter acquisition normalization X% both the know been on reduction meaningfully gets up by and pretty X%. we're the net and coming you we've From you talking XX% in organic up about. both mostly led sequentially, to

Scott Stember

pricing And there other of the unit XX%, there. some or that plus most in is Okay. component is

Jake Petkovich

that XX% XX% pricing. is to of

Scott Stember

I got it. Okay,

Scott Stember

up holding how into next will in that guess year? now you they guys right, some outlooks you gave year? for you industrial but and and bigger year. question how All right then know industrial. next about you particular, next fare industries, for just about but what talk and think maybe on I the talk other I some seeing just MH you're housing, a are different mainly of do Could the heading picture markets

Andy Nemeth

Hey Scott, is Andy. this

refill think MH MH solid. there's about feels as be and relates to will looking at from like MH inflation, that there do know channel spot think side. We we backlogs As are the we're We as think perspective the we're now, again to strong, a MH housing, for in a so it confident it's but pretty the runway headwinds you continue. good right in that is some

the the single On multi-family multi-family. demand down. the the course two and is for strong know seeing a of what been family shift side There's last you or is mix housing we're between very over quarter

certainly know sensitivity the there, seeing price You are we're tremendous on out rates there's some we the relates it as increasing side. to think multifamily that but that demand

pretty us, So from perspective industrial an we even well with an between split match for up single family multi-family. and

expect year. we So to manage next industrial that through we of our at look kind well very for business as the

Scott Stember

And that remodeling, how is looking?

Andy Nemeth

sure, In expect continue pretty remodel to we be for to resilient.

Scott Stember

that's Alright, you. have Okay. for now. all I Thank

Andy Nemeth

Thanks.

Operator

you. Thank

is Daniel CJS next Moore from question from Your Securities. coming

live. Your now line is

Daniel Moore

Thanks the morning. Good taking for questions.

starting year works continue you way year, and the generally to be ’XX? do given think process to Do be of of know this of expect there? for wholesale by rebalancing Just inventories updated you retail its you for remainder the kind the Any end. to that first dealers outlook update with, half through

Andy Nemeth

Andy. is this Dan,

it kind at dealers very they happening of marketplace we the you tuning believe we in the OE at we stay What don't and at look what absolutely least the they today back and XXXX that's we there's it that balance watching pulling prefer think year balance and been but them, fiscal and the out to we think to want year is as we're and from of in and that with sure in strong into kind anticipating production very, we're relates out inventory the take fine kind so we're run. with to look we we're manufacturers of been we certainly channel, levels think place that what production, one-to-one think know disciplined the rational a I’m mix historically and mix managing taking going year, make where very pullbacks, is as change the we their see, relates place, I back things, it's mix then at rebalancing to aggressive see as very the next RV aligned have today positioning which at have our retail. we I is in what's for as retail of for look production discounted for When a part wholesale. really disciplined of in watching there as the XXXX of speak partners through

then balance So year, of to out mix retail anticipation the of shift as production the XXXX in where of pull of rolls rest it the kind and for disciplined through. relates

Daniel Moore

Helpful. just how And the think well quarter about given of either know just we and to should HI we expectations. as production know do margins how gross as you relative ‘XX QX - margins, into you operating saw in some think the level we

Jake Petkovich

it's basis Jake basis, start to question. with year-over-year that think and to we ’XX, Maybe year, appreciate points. a Dan, the still ‘XX we’re XXX I margin versus on full the up operating XXX for example

complexion which and about to really this into XX we morning investments in well. follows the highlighted as for time a meaningful, months both value and that have of which over higher made higher lot theme of we've the few other production those and efficiency speaking here automation been contribution been continue about impact we've fabrication, a of our and Jeff added are So as products, acquisitions the here of also well. that their as But the contributing the initiatives

the think we So over of first quarter. about the with first quarter two those,

we through I'm criteria, XX% we've and and and a accretion, in forward. see we Still pre-COVID can, profile. gross our of we we've through are little to really it's up and XX% of that filters to that that to resonate that impacts. or we're million speaks acquisition best we spoke what that to top will to see now from in came on still profile, know way is, to portfolio a kind great which as the which quarter-over-quarter about think of about to and seconds but of about our like made from of buoyant about to concept that and of Jeff year, the if acquisitions. our of hold as grown results think core you lot down basis billion margin still future. profitability benefited what we in really a the we've operating along be XX% about some into we've seen, the pieces pricing about we couple these acquisitions, really over as we normal We a any a absorption that just and comparable to contribution expect decline improvements. $XXX $X.X production the intent put XX% we've take that net strategic margin previous course so we've really one resonating beginning to be as those about CapEx about is questions drive of month through expect the the but we I and been that a a doing portfolio a have and it look a since those as the bit as acquisition, this think spoke those very you and margin investments point about about on accretive of come think Of years to, the to expect margins It's that lot seen speaking if to spent in that realize of to We the that at you and volume XX% revenue has time you a about to XX% these – And really we've that acquisitions spoken in we efficiencies XXXX is time folks as the RV, basket one speak. collectively think other think XXXX with of having move resonating at about through. of really over only billion And diversification $X those of those shown thing

Daniel Moore

benefit jump those about that. in much. more relates the expect you appreciate and between opportunistic it you back you could say little for do couple a as when and you'd very I me. a Sorry bit to yeah margins, bit come Thanks. mute. is I’ll of one if over let's be materials was those pricing, as a of, terms next a color, or it Thank That's and in color commodity the just raw of more pricing some provide I on giving time? pricing real you back and little lag you back But give just back quarters, it of queue. or mentioned down, more, maybe

Jeff Rodino

Dan, Yes is this Jeff.

We to the quarter manage down, we are the back see pricing able Really down. were as commodities – it go in a some goes third we basis customers our we working with regular pricing. to give did on as

saw we when a pricing bit held cases continue to some in little third the commodities also rise quarter. through We

our we're us up. being So with way went customers were pricing the as flexible they pricing when when were with very goes down same we

work the definitely decline down to is will we opportunities basis with there kind customers, a of continue road in some and more see see those we So in commodities real-time coming the arise. as of we

Daniel Moore

Thank you again.

Operator

Thank Instructions]. you. [Operator

question next today America. from Rafe Our is from Bank of coming Jadrosich

line now is Your live.

Rafe Jadrosich

question. my taking for Thanks morning. Good Rafe. its Hi,

Andy Nemeth

Good morning Rafe.

Rafe Jadrosich

the on RV. comments up pricing and follow on wanted content per I to unit

how driven the year. remainder where there? see impressive there, some Like you over and the is content additional gains? do last of You've really opportunity about talk sticky just Can you this the year of per outlook unit the growth

Andy Nemeth

Yeah Rafe, is Andy. this

content, you supply look we're constraint from we little as side at a a as on RV from think the bit talked business. Jeff it, of the about seeing chain know a I perspective

to constraints to give with customers, come we're and the up. way and in and any and partner chain position pricing some we not going you line to we to have a know also the put we're same we're way great sure in back position able our able so today. supply like be did been For really on a ourselves down leverage our commodities seeing We've feel brands that in certainly

analyzed of it I has business over think then the and side really RV the that and the $XXX months side only last not been brands our leverage the scalability is other million significant, in last, the to know ability picked quarter, but you when of of you we’ve business. in additional know supply XX the course chain $XXX flexibility and the up so million between

had supply stickiness a to back gains there's again our and the customers. being expect customers to pricing we've know were same it been that the give gains pricing and combination and with today also in and partnership take that relates we've we've other really that alignment to we our result tribute much share of out it to they our so great our that you share able. able some to been exhibited across the a so care know real a deliver with up. profile, as as constraints each team as as you we But A we're market both tremendous of going mitigate way And there, chain relates to possible efforts and the market able platform and as of organic position did the work to and

Rafe Jadrosich

look we as that think about on selling? would industrial then lag think starts housing your starts leverage categories resi that side, to the another do impact you you're we way leverage at at business? might how ask you when start between to more I exposure the your when and be, And are completions look the or

Andy Nemeth

Yeah this indexed completions you We're Rafe, Andy more will. is if again.

and there go offset products is at completion mix it nine between some that a help multifamily hit. there's to said, starts unit, be to and the the do housing Like you end lag of starts look I will though we of difference so we and and in we the the generally change that resilience multi-family that. see on of six actually have think going where we some know Our the to month on generally at so that

Rafe Jadrosich

multiple in with at given the approach are seen environment, markets here this side, and Got end it. to seeing, are tougher on financing your slowed then have macro and M&A have you the you, down down how Thank And come all? handling you And the M&A just you. environment?

Andy Nemeth

Yeah, Andy this is again.

We think to come from as volatility be in mentioned, at we're know come have of leverage to marketplace, you down. we're as in activity so an from opportunities We're now, these perspective, a a about. right take perspective, looking advantage seen the Jake as especially multiples I some liquidity able they position and seeing also incredibly strong

uncertainty deploy capital acquisition you able and to and to And have know pipeline know being strategically allocation whatever flow an evaluate organically so strength, But you continue going about to both capital we're from us. is cultivate coming and acquisitions, perspective, appropriately. position into of we really excited deal from our this

down So definitely we in feel at. pretty good to position about come are have where and great a we're execute. things Multiples

Rafe Jadrosich

Great, thank you.

Operator

Thank floor or further We the of for any our you. comments. end I’ll session. turn closing back [Operator question-and-answer reached Instructions]. over the

Andy Nemeth

conclude values recognizing first today the our by proud I'm Patrick of together we outstanding make by the our to want have our what I customer and accomplished call contributions better achievements possible. that team of to philosophy. adhering

ourselves our innovation, value We you will Thank and to in support. I strength and positioning thank and resilient long mission, create strategy business. scalability our your a with automation strategically you our our shareholders driving platform, interest morning. to and for your for invest this you continue diversified and dedication for will believe for thank us and joining to term

Operator

webcast. Thank and you. That teleconference does conclude today's

We today. this have your time disconnect a wonderful day! at thank for and your may participation line You you

Patrick Industries (PATK) 27 Oct 222022 Q3 Earnings call transcript