Form 8-K - Current report

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant To Section 13 OR 15(d) Of The Securities Exchange Act Of 1934


Date of report (Date of earliest event reported)			August 1, 2024

PATRICK INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)

Indiana

000-03922

35-1057796

(State or other jurisdiction of incorporation)

(Commission File Number)

(IRS Employer Identification Number)

107 W. Franklin Street

Elkhart,

Indiana

46516

(574)

294-7511

(Address of Principal Executive Offices)

(Zip Code)

Registrant's Telephone Number, including area code



(Former name or former address if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, no par value	PATK	NASDAQ

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02 Results of Operations and Financial Condition

On August 1, 2024, the Company issued a press release announcing operating results for the second quarter ended June 30, 2024. A copy of the press release is furnished herewith as Exhibit 99.1 and incorporated herein by reference.

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

Matthew S. Filer was elected as Chief Accounting Officer on May 16, 2024. Mr. Filer joined the company in November 2022 and served as the Company's Senior Vice President - Finance. He served as Interim Executive Vice President - Finance, Chief Financial Officer, and Treasurer from May 2023 to March 2024, at which point he resumed his role as Senior Vice President - Finance. In accordance with the instruction to paragraph (c) of Item 5.02 of Form 8-K, the Company delayed filing this Current Report on Form 8-K until the issuance of the press release referenced in item 2.02 of, and furnished as Exhibit 99.1 to, this Current Report on Form 8-K announcing Mr. Filers' appointment.

Item 7.01 Regulation FD Disclosure

The information referenced in this Form 8-K is furnished pursuant to Item 7.01, “Regulation FD Disclosure.” Such information, including the Exhibit attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

(a) Slides for Earnings Presentation as contained in Exhibit 99.2

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

Exhibit 99.1 - Press Release issued August 1, 2024

Exhibit 99.2 - Slides for Earnings Presentation

Exhibit 104 - Cover Page Interactive Date File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


						PATRICK INDUSTRIES, INC.
						(Registrant)


Date: August 1, 2024	By:	/s/ Andrew C. Roeder
		Andrew C. Roeder
		Executive Vice President - Finance, Chief Financial Officer, and Treasurer

News Release

Patrick Industries, Inc. Reports Second Quarter 2024 Financial Results

Second Quarter 2024 Highlights (compared to Second Quarter 2023 unless otherwise noted)

•Net sales increased 10% to $1.02 billion driven by a 17% increase in RV revenue, an 11% increase in Housing revenue, and our first quarter acquisition of Sportech, which together more than offset a 30% decline in Marine revenue.

•Operating margin increased 10 basis points to 8.3%. For the first six months of 2024, operating margin on an adjusted basis improved 40 basis points to 7.7%.

•Net income increased 13% to $48 million, and diluted earnings per share of $2.16 increased 11%.

•For the first six months of 2024, adjusted diluted earnings per share increased 20% to $3.95.

•Adjusted EBITDA increased 14% to $130 million; adjusted EBITDA margin increased 40 basis points to 12.8%.

•Cash flow provided by operations was $173 million for the first six months of the year compared to $178 million in the same period last year. Free cash flow, on a trailing twelve-month basis, was $348 million.

•Maintained solid balance sheet and liquidity position, ending the second quarter with a total net leverage ratio of 2.6x and liquidity of $519 million.

ELKHART, IN, August 1, 2024 – Patrick Industries, Inc. (NASDAQ: PATK) ("Patrick" or the "Company"), a leading component solutions provider for the Outdoor Enthusiast and Housing markets, today reported financial results for the second quarter and six months ended June 30, 2024.

Net sales increased 10% to $1.02 billion, an increase of $96 million compared to the second quarter of 2023. The increase in sales was primarily driven by higher revenue from our RV and Housing end markets combined with revenue from our first quarter acquisition of Sportech, which more than offset lower revenue from our Marine end market as a result of continued strict production discipline by marine OEMs in light of ongoing marine dealer inventory destocking.

Operating income of $85 million in the second quarter of 2024 increased $9 million, or 12%, compared to $76 million in the second quarter of 2023. Operating margin of 8.3% increased 10 basis points compared to 8.2% in the same period a year ago as a result of continued labor management and increased revenues. For the first six months of 2024 compared to the same period in 2023, excluding acquisition transaction costs and purchase accounting adjustments in both periods, adjusted operating margin improved 40 basis points to 7.7%.

Net income increased 13% to $48 million compared to $42 million in the second quarter of 2023. Diluted earnings per share of $2.16 increased 11% compared to $1.94 for the second quarter of 2023. For the first six months of 2024 compared to the first six months of 2023, excluding acquisition transaction costs and purchase accounting adjustments in both periods, adjusted net income increased 20% to $87 million and adjusted diluted earnings per share increased 20% to $3.95.

"Our solid revenue and operating margin improvement in the second quarter reflect the strategic diversification investments we have made over the last several years as well as our cost management initiatives and capital expenditures related to automation projects," said Andy Nemeth, Chief Executive Officer. "I am proud of how hard the Patrick team worked in the first half of the year to leverage our variable cost structure and execute operational efficiencies during a time when market and macroeconomic conditions have been so volatile."

Jeff Rodino, President – RV, said, "We believe our history of successful, targeted acquisitions has bolstered the resiliency of our business, deepened our talent bench, and improved our ability to grow revenue and margins. Our acquisition philosophy remains intact, as we look for strong, culturally-aligned management teams, solid risk-adjusted returns, and the potential for significant long-term demand growth. Additionally, we are investing in our platform through our Advanced Product Group, which is collaborating with our valued

customers to develop innovative, full-component solutions that will help enable us to continue to drive organic growth. In the second quarter, we brought numerous products to market, creating momentum and excitement for the future of Patrick, supporting our goal of being the supplier of choice for our customers and generating returns for shareholders."

Second Quarter 2024 Revenue by Market Sector (compared to Second Quarter 2023 unless otherwise noted)

RV (44% of Revenue)

•Revenue of $450 million increased 17% while wholesale RV industry unit shipments increased 7%.

•Content per wholesale RV unit (on a trailing twelve-month basis) decreased by 2% to $4,966. Compared to the first quarter of 2024, content per wholesale RV unit (on a trailing twelve-month basis) increased 2%.

Marine (16% of Revenue)

•Revenue of $158 million decreased 30% while estimated wholesale powerboat industry unit shipments decreased 27%. Powersports revenue was previously included in our Marine end market. End market revenue and content per unit reflect this change for the relevant periods.

•Estimated content per wholesale powerboat unit (on a trailing twelve-month basis) decreased 10% to $3,935. Compared to the first quarter of 2024, estimated content per wholesale powerboat unit (on a trailing twelve-month basis) decreased 2%.

Powersports (10% of Revenue)

•Revenue of $104 million increased 185%, driven primarily by the acquisition of Sportech in the first quarter of 2024.

Housing (30% of Revenue, comprised of Manufactured Housing ("MH") and Industrial)

•Revenue of $305 million increased 11%; estimated wholesale MH industry unit shipments increased 19%; total housing starts decreased 7%.

•Estimated content per wholesale MH unit (on a trailing twelve-month basis) increased 1% to $6,427. Compared to the first quarter of 2024, estimated content per wholesale MH unit increased slightly from $6,403.

Balance Sheet, Cash Flow and Capital Allocation

For the first six months of 2024, cash provided by operations was $173 million compared to $178 million for the prior year period. Purchases of property, plant and equipment totaled $17 million in the second quarter of 2024, reflecting maintenance capital expenditures and continued investments in alignment with our automation and technology initiatives. On a trailing twelve-month basis, free cash flow through the second quarter of 2024 was $348 million, compared to $444 million through the second quarter of 2023 when we aggressively monetized working capital in a declining sales environment. Our long-term debt decreased approximately $82 million during the second quarter of 2024, as we continued to focus on deleveraging in alignment with our strategic plan following our first quarter 2024 acquisition of Sportech.

We remained disciplined in allocating and deploying capital, returning approximately $12 million to shareholders in the second quarter of 2024 through dividends. We remain opportunistic on share repurchases and had $78 million left authorized under our current plan at the end of the second quarter.

Our total debt at the end of the second quarter was approximately $1.33 billion, resulting in a total net leverage ratio of 2.6x (as calculated in accordance with our credit agreement). Pro forma net leverage at the time of the acquisition of Sportech in January 2024 was approximately 2.9x. Available liquidity, comprised of borrowing availability under our credit facility and cash on hand, was approximately $519 million.

Business Outlook and Summary

“We believe Patrick's profitable growth prospects and earnings power remain substantial and expect continued market share gains and strategic acquisitions to enhance our performance when our end markets recover," continued Mr. Nemeth. "Our investments in our business and team and resulting solid financial performance, coupled with our strong balance sheet, have positioned our team to maintain an offensive stance in these volatile markets. With our net leverage ratio nearing our target range and available liquidity of $519 million, we remain positioned to actively engage potential acquisition candidates from within our robust pipeline and serve our customers at the highest level. Demand in our end markets continues to hinge upon consumer confidence and interest rate relief, and our businesses and leaders will maintain our strong operating discipline and financial foundation and use this time to continue developing innovative products and solutions for our customers that will enable value creation for years to come. OEMs and dealers have maintained tremendous discipline with regards to inventory management, which is paramount to the long-term health of the end markets we serve. Our team will continue to focus on what we can control and managing our business and cost structure, as we remain nimble with an eye on driving long-term profitable organic growth, free cash flow, and shareholder value."

Conference Call Webcast

Patrick Industries will host an online webcast of its second quarter 2024 earnings conference call that can be accessed on the Company’s website, www.patrickind.com, under “For Investors,” on Thursday, August 1, 2024 at 10:00 a.m. Eastern Time. In addition, a supplemental earnings presentation can be accessed on the Company’s website, www.patrickind.com under “For Investors.”

Other Items

About Patrick Industries, Inc.

Patrick (NASDAQ: PATK) is a leading component solutions provider serving the RV, Marine, Powersports and Housing markets. Since 1959, Patrick has empowered manufacturers and outdoor enthusiasts to achieve next-level recreation experiences. Our customer-focused approach brings together design, manufacturing, distribution, and transportation in a full solutions model that defines us as a trusted partner. Patrick is home to more than 85 leading brands, all united by a commitment to quality, customer service, and innovation. Headquartered in Elkhart, IN, Patrick employs approximately 10,000 skilled team members throughout the United States. For more information on Patrick, our brands, and products, please visit www.patrickind.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains certain statements related to future results, our intentions, beliefs and expectations or predictions for the future, which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from either historical or anticipated results depending on a variety of factors. Potential factors that could impact results include: the effects of external macroeconomic factors, including adverse developments in world financial markets, disruptions related to tariffs and other trade issues, and global supply chain interruptions; adverse economic and business conditions, including inflationary pressures, cyclicality and seasonality in the industries we sell our products; the effects of interest rate changes and other monetary and market fluctuations; the deterioration of the financial condition of our customers or suppliers; inventory levels of retailers and manufacturers; the ability to adjust our production schedules up or down quickly in response to rapid changes in demand; the loss of a significant customer; changes in consumer preferences; pricing pressures due to competition; conditions in the credit market limiting the ability of consumers and wholesale customers to obtain retail and wholesale financing for RVs, manufactured homes, marine and powersports products; public health emergencies or pandemics, such as the COVID-19 pandemic; the imposition of, or changes in, restrictions and taxes on imports of raw materials and components used in our products; information technology performance and security to include our ability to deter cyberattacks or other information security incidents; any increased cost

or limited availability of certain raw materials; the impact of governmental and environmental regulations, and our inability to comply with them; our level of indebtedness; the ability to remain in compliance with our credit agreement covenants; the availability and costs of labor and production facilities and the impact of labor shortages; the ability to manage working capital, including inventory and inventory obsolescence; the ability to generate cash flow or obtain financing to fund growth; future growth rates in the Company's core businesses; realization and impact of efficiency improvements and cost reductions; the successful integration of acquisitions and other growth initiatives, including, but not limited to, uncertainties surrounding the Company’s further investment and initiatives in the powersports market; increases in interest rates and oil and gasoline prices; the ability to retain key executive and management personnel; the impact on our business resulting from wars and military conflicts such as war in Ukraine and evolving conflict in the Middle East; natural disasters or other unforeseen events, and adverse weather conditions.

There can be no assurance that any forward-looking statement will be realized or that actual results will not be significantly different from that set forth in such forward-looking statement. Information about certain risks that could affect our business and cause actual results to differ from those expressed or implied in the forward-looking statements are contained in the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, and in the Company's Forms 10-Q for subsequent quarterly periods, which are filed with the Securities and Exchange Commission (“SEC”) and are available on the SEC’s website at www.sec.gov. Each forward-looking statement speaks only as of the date of this press release, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances occurring after the date on which it is made.

Contact:

Steve O'Hara

Vice President of Investor Relations

oharas@patrickind.com

574.294.7511


PATRICK INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

	Second Quarter Ended				Six Months Ended
($ in thousands, except per share data)	June 30, 2024		July 2, 2023		June 30, 2024		July 2, 2023
NET SALES	$	1,016,624	$	920,685	$	1,950,116	$	1,820,785
Cost of goods sold	785,330		710,717		1,513,967		1,416,573
GROSS PROFIT	231,294		209,968		436,149		404,212

Operating Expenses:
Warehouse and delivery	38,739		36,031		76,188		71,876
Selling, general and administrative	83,588		78,540		168,834		160,941
Amortization of intangible assets	24,278		19,822		47,096		39,586
Total operating expenses	146,605		134,393		292,118		272,403

OPERATING INCOME	84,689		75,575		144,031		131,809
Interest expense, net	20,343		18,260		40,433		36,744
Income before income taxes	64,346		57,315		103,598		95,065
Income taxes	16,462		14,958		20,621		22,535
NET INCOME	$	47,884	$	42,357	$	82,977	$	72,530

BASIC EARNINGS PER COMMON SHARE	$	2.20	$	1.97	$	3.83	$	3.36
DILUTED EARNINGS PER COMMON SHARE	$	2.16	$	1.94	$	3.75	$	3.28

Weighted average shares outstanding - Basic	21,724		21,521		21,689		21,556
Weighted average shares outstanding - Diluted	22,169		21,787		22,125		22,151


PATRICK INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)


	As of
($ in thousands)	June 30, 2024		December 31, 2023
ASSETS
Current Assets
Cash and cash equivalents	$	43,960	$	11,409
Trade and other receivables, net	252,106		163,838
Inventories	504,445		510,133
Prepaid expenses and other	53,383		49,251
Total current assets	853,894		734,631
Property, plant and equipment, net	367,761		353,625
Operating lease right-of-use assets	191,289		177,717
Goodwill and intangible assets, net	1,583,634		1,288,546
Other non-current assets	7,292		7,929
TOTAL ASSETS	$	3,003,870	$	2,562,448

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Current maturities of long-term debt	$	7,500	$	7,500
Current operating lease liabilities	52,788		48,761
Accounts payable	206,605		140,524
Accrued liabilities	106,774		111,711
Total current liabilities	373,667		308,496
Long-term debt, less current maturities, net	1,310,848		1,018,356
Long-term operating lease liabilities	142,681		132,444
Deferred tax liabilities, net	67,903		46,724
Other long-term liabilities	10,267		11,091
TOTAL LIABILITIES	1,905,366		1,517,111






TOTAL SHAREHOLDERS’ EQUITY	1,098,504		1,045,337

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	3,003,870	$	2,562,448

PATRICK INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)




	Six Months Ended
($ in thousands)	June 30, 2024		July 2, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	82,977	$	72,530
Depreciation and amortization	81,816		71,492
Stock-based compensation expense	9,742		7,946
Other adjustments to reconcile net income to net cash provided by operating activities	1,419		2,978
Change in operating assets and liabilities, net of acquisitions of businesses	(3,296)		23,405
Net cash provided by operating activities	172,658		178,351
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment	(32,411)		(36,491)
Business acquisitions and other investing activities	(354,402)		(29,056)
Net cash used in investing activities	(386,813)		(65,547)
NET CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES	246,706		(101,740)
Net increase in cash and cash equivalents	32,551		11,064
Cash and cash equivalents at beginning of year	11,409		22,847
Cash and cash equivalents at end of period	$	43,960	$	33,911

PATRICK INDUSTRIES, INC.

Earnings Per Common Share (Unaudited)

The table below illustrates the calculation for earnings per common share:


	Second Quarter Ended				Six Months Ended
($ in thousands, except per share data)	June 30, 2024		July 2, 2023		June 30, 2024		July 2, 2023
Numerator:
Earnings for basic earnings per common share calculation	$	47,884	$	42,357	$	82,977	$	72,530
Effect of interest on potentially dilutive convertible notes, net of tax	—		—		—		162
Earnings for diluted earnings per common share calculation	$	47,884	$	42,357	$	82,977	$	72,692
Denominator:
Weighted average common shares outstanding - basic	21,724		21,521		21,689		21,556
Weighted average impact of potentially dilutive convertible notes	260		—		233		331
Weighted average impact of potentially dilutive securities	185		266		203		264
Weighted average common shares outstanding - diluted	22,169		21,787		22,125		22,151
Earnings per common share:
Basic earnings per common share	$	2.20	$	1.97	$	3.83	$	3.36
Diluted earnings per common share	$	2.16	$	1.94	$	3.75	$	3.28

PATRICK INDUSTRIES, INC.

Non-GAAP Reconciliation (Unaudited)

Use of Non-GAAP Financial Metrics

In addition to reporting financial results in accordance with U.S. GAAP, the Company also provides financial metrics, such as net leverage ratio, content per unit, net debt, free cash flow, earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted EBITDA, adjusted net income, adjusted diluted earnings per share (adjusted diluted EPS), adjusted operating margin, adjusted EBITDA margin and available liquidity, which we believe are important measures of the Company's business performance. These metrics should not be considered alternatives to U.S. GAAP. Our computations of net leverage ratio, content per unit, net debt, free cash flow, EBITDA, adjusted EBITDA, adjusted net income, adjusted dilutive EPS, adjusted operating margin, adjusted EBITDA margin and available liquidity may differ from similarly titled measures used by others. We calculate net debt by subtracting cash and cash equivalents from the gross value of debt outstanding. We calculate EBITDA by adding back depreciation and amortization, net interest expense, and income tax expense to net income. We calculate adjusted EBITDA by taking EBITDA and adding back stock-based compensation and loss on sale of property, plant and equipment, acquisition related costs, acquisition-related fair-value inventory step-up and subtracting out gain on sale of property, plant and equipment. Adjusted net income is calculated by removing the impact of acquisition related transaction costs, net of tax and acquisition-related fair-value inventory step-up, net of tax. Adjusted diluted EPS is calculated as adjusted net income attributable to common shares divided by our weighted average shares outstanding. Adjusted operating margin is calculated by removing the impact of acquisition related transaction costs and acquisition-related fair-value inventory step-up. We calculate free cash flow by subtracting cash paid for purchases of property, plant and equipment from cash flow from operations. RV wholesale unit shipments are provided by the RV Industry Association. Marine wholesale unit shipments are Company estimates based on data provided by the National Marine Manufacturers Association. MH wholesale unit shipments are provided by the Manufactured Housing Institute. Housing starts are provided by the U.S. Census Bureau. You should not consider these metrics in isolation or as substitutes for an analysis of our results as reported under U.S. GAAP.

The following table reconciles net income to EBITDA and adjusted EBITDA:


	Second Quarter Ended				Six Months Ended
($ in thousands)	June 30, 2024		July 2, 2023		June 30, 2024		July 2, 2023
Net income	$	47,884	$	42,357	$	82,977	$	72,530
+ Depreciation & amortization	41,481		35,982		81,816		71,492
+ Interest expense, net	20,343		18,260		40,433		36,744
+ Income taxes	16,462		14,958		20,621		22,535
EBITDA	126,170		111,557		225,847		203,301
+ Stock-based compensation	4,282		2,704		9,742		7,946
+ Acquisition related transaction costs	—		—		4,998		—
+ Acquisition related fair-value inventory step-up	—		—		822		610
+ (Gain) Loss on sale of property, plant and equipment	(354)		123		(368)		100
Adjusted EBITDA	$	130,098	$	114,384	$	241,041	$	211,957

The following table reconciles cash flow from operations to free cash flow on a trailing twelve-month basis:


	Trailing Twelve Months Ended
($ in thousands)	June 30, 2024		July 2, 2023
Cash flow from operations	$	402,979	$	515,793
Less: purchases of property, plant and equipment	(54,907)		(71,907)
Free cash flow	$	348,072	$	443,886

The following table reconciles operating margin to adjusted operating margin:


	Second Quarter Ended				Six Months Ended
	June 30, 2024		July 2, 2023		June 30, 2024		July 2, 2023
Operating margin	8.3	%	8.2	%	7.4	%	7.2	%
Acquisition related fair-value inventory step-up	—	%	—	%	—	%	0.1	%
Transaction costs	—	%	—	%	0.3	%	—	%
Adjusted operating margin	8.3	%	8.2	%	7.7	%	7.3	%

The following table reconciles net income to adjusted net income and diluted earnings per common share to adjusted diluted earnings per common share:


	Second Quarter Ended				Six Months Ended
($ in thousands, except per share data)	June 30, 2024		July 2, 2023		June 30, 2024		July 2, 2023
Net income	$	47,884	$	42,357	$	82,977	$	72,530
+ Acquisition related fair-value inventory step-up	—		—		822		610
+ Transaction costs	—		—		4,998		—
- Tax impact of adjustments	—		—		(1,488)		(122)
Adjusted net income	$	47,884	$	42,357	$	87,309	$	73,018

Diluted earnings per common share (per above)	$	2.16	$	1.94	$	3.75	$	3.28
Transaction costs, net of tax	—		—		0.17		—
Acquisition related fair-value inventory step-up, net of tax	—		—		0.03		0.02
Adjusted diluted earnings per common share	$	2.16	$	1.94	$	3.95	$	3.30

Q2 2024 Earnings Presentation August 1, 2024

Forward-looking statements 2 This presentation includes contains statements that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward- looking statements are generally identified by words such as “estimates,” “guidance,” “expects,” ”anticipates,” “intends,” “plans,” “believes,” “seeks” and similar expressions. Forward-looking statements include information with respect to financial condition, results of operations, business strategies, operating efficiencies or synergies, competitive position, industry projections, growth opportunities, acquisitions, plans and objectives of management, markets for the common stock and other matters. These forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from either historical or anticipated results depending on a variety of factors. These risks and uncertainties include, in addition to other matters described in this presentation, the impacts of future pandemics, geopolitical tensions or natural disaster, on the overall economy, our sales, customers, operations, team members and suppliers. Further information concerning the Company and its business, including risk factors that potentially could materially affect the Company’s financial results are discussed under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission on February 29, 2024. We caution readers not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and we disclaim any obligation or undertaking to disseminate any updates or revisions to any forward- looking statements contained in this presentation or to reflect any change in our expectations after the date of this presentation or any change in events, conditions or circumstances on which any statement is based. USE OF NON-GAAP FINANCIAL MEASURES This presentation contains non-GAAP financial measures. These measures, the purposes for which management uses them, why management believes they are useful to investors, and a reconciliation to the most directly comparable GAAP financial measures can be found in the Appendix of this presentation. All references to profit measures and earnings per share on a comparable basis exclude items that affect comparability.

3 $ in millions, except per share data FY 2019 Q2’24 TTM Δ Wholesale RV Shipments 406,070 326,940 (19)% Total Net Sales $2,337 $3,597 +54% Total RV Sales $1,287 $1,624 +26% Total Marine Sales* $329 $631 +92% Total Housing Sales $721 $1,103 +53% Total Powersports Sales - $239 NM Gross Margin 18.1% 22.6% +450 bps Adjusted Operating Margin 1 6.6% 7.7% +110 bps Adjusted Diluted EPS 1 $3.86 $7.17 +86% Free Cash Flow 1 $165 $348 +111% Diversification Journey Continues Investments aligned with our entrepreneurial vision driving long-term growth Strategic acquisitions and diversification propelling revenue and margin expansion Improved cash flow generation and strong balance sheet Customer-focused innovation driving organic growth and market share gains Automation initiatives driving operational improvement 1 Non-GAAP metric: Refer to appendix for reconciliation to closest GAAP metric | * In 2019 Powersports sales were included in Marine Sales

4 Highlights Q2 2024 Revenue up 10% y/y, backed by the resilience of our diversified end market strategy • RV revenue grew 17% y/y, fueled by ongoing recovery in wholesale unit shipments • Housing revenue improved 11% y/y on MH shipment growth and continued solid demand for affordable housing • Powersports revenue increased primarily due to acquisition of Sportech in Q1’24 • Marine revenue declined as a result of OEMs maintaining very disciplined production schedules as dealers focused on destocking in the quarter given higher interest on floorplan lending and lower consumer demand Strategic capital allocation preserves our tactical advantage while driving efficiencies • Paid down $82 million in debt during the quarter, resulting in a net leverage ratio of 2.6x, positioning us within reach of our 2.25x - 2.5x target range • Continued investment in automation and technology drives improved productivity and operational efficiency Operating margin improved as a result of 10% y/y revenue growth, diligent labor and cost management, and acquisitions, partially offset by a decline in Marine shipments

Performance by End Market Q2 2024

RV shipments improved during the quarter, leading to revenue expansion in our largest end market. We believe dealer inventories are lower than the historical average, but dealers remain hesitant to restock given interest rate and inflationary headwinds. 6 $450M REVENUE % OF Q2 SALES 44% WHOLESALE SHIPMENTS 2 CPU1 $4,966 92,700 $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 CONTENT PER UNIT 1 1 CPU = Content per wholesale unit for the trailing twelve-month period 2 Data published by RVIA Q2 2024 MARINE POWERSPORTS HOUSINGRV MARKETS Sequential increase

$- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 CONTENT PER UNIT 1,2 Our Marine businesses continue to focus on innovation and product development. OEMs are maintaining disciplined production schedules, leading to improved inventory levels in the dealer channel. Interest rate and inflationary headwinds continue to impact consumer demand and dealer restocking. 7 $158M REVENUE % OF Q2 SALES 16% ESTIMATED WHOLESALE SHIPMENTS 2 ESTIMATED CPU 1,2 $3,935 39,300 1 CPU = Content per wholesale unit for the trailing twelve-month period 2 Company estimates based on data published by National Marine Manufacturers Association (NMMA) MARINE POWERSPORTS HOUSINGRV MARKETS Q2 2024

We remain well positioned to supply premium component solutions to the Powersports market following the Sportech acquisition. Our focus is on the utility segment of the market, which has been more resilient than the recreation segment. 8 $104M REVENUE % OF Q2 SALES 10% SOLID POWERSPORTS PLATFORM Q2 2024 MARINE POWERSPORTS HOUSINGRV MARKETS $33 $36 $29 $24 $83 $104 QUARTERLY POWERSPORTS NET SALES ($ in millions)

$- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 CONTENT PER UNIT 1,2 Our housing business produced strong results in the second quarter, contributing to our revenue growth. Estimated MH shipments improved 19% as consumer demand for affordable housing remains strong. Interest rates continue to impact consumers’ ability to purchase and willingness to sell. 9 $305M REVENUE % OF Q2 SALES 30% ESTIMATED MH WHOLESALE SHIPMENTS 2 ESTIMATED MH CPU 1,2 $6,427 27,200 1CPU = Content per wholesale unit for the trailing twelve-month period 2 Company estimates based on data published by Manufactured Housing Institute (MHI) MARINE POWERSPORTS HOUSINGRV MARKETS Q2 2024 Sequential increase

Q2 2024 POWERSPORTS Demand for utility-focused vehicles has remained resilient Improved functionality and innovation continue to drive favorable demand for utility side-by-side vehicles Dealer floorplan costs are impacting purchasing decisions MARINE High floorplan costs and lower retail velocity continue to drive dealers’ desire to destock inventory Interest in boating remains resilient while buyer conversion is challenged by the interest rate environment Growing aftermarket business provides access to a larger and more diverse consumer base RV Dealers remain focused on destocking inventory given high floorplan costs Demographic backdrop remains favorable for RV demand, with interest in the outdoors strong among younger generations Entry-level towable units and preferred brands are leading the volume recovery in the RV market HOUSING Demand for affordable housing remains strong; conversion is limited by the high-interest rate environment and limited available inventory Technological advancements in construction are improving the quality and efficiency of manufactured homes Market Sector Trends 10

Financial Performance 11 Q2 2024 NET SALES & GROSS MARGIN $1,017$921 Q2 2023 Q2 2024 22.8%22.8% Powersports Housing Marine RV $76 $85 OPERATING INCOME & MARGIN 8.3%8.2% Q2 2023 Q2 2024 $1.94 $2.16 DILUTED EPS Q2 2023 Q2 2024 YTD ADJUSTED DILUTED EPS Q2 2023 Q2 2024 ($ in millions, except per share data) $3.95 $3.30 YTD ADJUSTED OPERATING MARGIN Q2 2023 Q2 2024 Net sales increased 10%, driven by higher RV, Housing and Powersports revenue, which more than offset lower revenue from our Marine end market Gross margin was 22.8%, consistent with the same period last year Operating margin increased 10 bps y/y due to higher revenue and prudent cost management, partially offset by lower fixed cost absorption within our Marine businesses Diluted EPS of $2.16 increased 11% and includes approximately $0.03 per share of dilution from our convertible notes due 2028 Year-to-date adjusted diluted EPS increased 20% to $3.95 For the first six months of 2024, generated operating cash flow of $173M and free cash flow of $140M 7.7% 7.3%

Shipments and End Market Data3 RETAILWHOLESALE 113,900 92,700 (10)% YoY +7% YoY RV1 RETAILWHOLESALE 68,400 39,300 (10)% YoY (27)% YoY MARINE1 WHOLESALE 27,200 +19% YoY MH1 MULTIFAMILYSINGLE FAMILY 139 261 (34)% YoY +7% YoY HOUSING STARTS2 86,200 126,800 53,900 75,600 22,700 91 281 12 Q2 2024 Q2’23 Q2’24 Q2’23 Q2’24 Q2’23 Q2’24 Q2’23 Q2’24 Q2’23 Q2’24 Q2’23 Q2’24Q2’23 Q2’24 1 Company estimates based on data published by RVIA, NMMA, MHI, and SSI | 2 U.S. Census Bureau | 3 Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures Estimated Dealer Inventory Impact in Q2’24: (~21,200) units Estimated Dealer Inventory Impact in Q2’24: (~29,100) units (Units in thousands)

Balance Sheet and Liquidity 13 COVENANTS AND RATIOS1 DEBT STRUCTURE AND MATURITIES NET LEVERAGE1 ($ in millions) LIQUIDITY ($ in millions) • $150.0M Term Loan ($125.6M o/s), scheduled quarterly installments; balance due August 2027 • $775.0M ($295.0M o/s) Senior Secured Revolver, due August 2027 • $300.0M 7.50% Senior Notes, due October 2027 • $258.8M 1.75% Convertible Senior Notes, due December 2028 • $350.0M 4.75% Senior Notes, due May 2029 Total Debt Outstanding $ 1,329.4 Less: Cash and Debt Paid as Defined by the Credit Agreement (42.2) Net Debt $ 1,287.2 Pro Forma Adj. EBITDA $ 491.7 Net Debt to Pro Forma Adj. EBITDA 2.6x Total Revolver Credit Capacity $ 775.0 Less: Total Revolver Used (including outstanding letters of credit) (300.0) Unused Credit Capacity $ 475.0 Add: Cash on Hand 44.0 Total Available Liquidity $ 519.0 • Consolidated Net Leverage Ratio – 2.62x • Consolidated Secured Net Leverage Ratio – 0.77x versus 2.75x maximum • Consolidated Fixed Charge Coverage Ratio – 3.34x versus minimum 1.50x Strong Balance Sheet and Favorable Capital Structure to Support Investments and Pursue Attractive Growth Opportunities 1 As defined by credit agreement Q2 2024

Operating Margin 7.5% Flat to up 20 bps3 Up 30 to 50 bps Operating Cash Flows $409M $390M - $410M Unchanged Free Cash Flow $350M $310M+ Unchanged RV Wholesale Unit Shipments (RVIA) 313K 320K - 330K 320K - 340K RV Retail Unit Shipments1 380K Down 5 - 10% Unchanged Marine Wholesale Powerboat Unit Shipments1 192K Down 20 - 25% Down 10 - 15% Marine Retail Powerboat Unit Shipments1 179K Down 5 - 10% Unchanged Powersports Organic Content - Up MSD% Unchanged MH Wholesale Unit Shipments (MHI) 89K Up 5 - 10% Unchanged New Housing Starts (U.S. Census Bureau) 1.4M Flat to up 5% Unchanged FY 2023 Actual FY 2024 Estimate2 Fiscal Year 2024 Outlook 141 Company estimates based on data published by NMMA and SSI | 2 Company estimates | 3 2024 operating margin excludes acquisition transaction costs and purchase accounting adjustments Prior Estimate

Appendix

Quarterly Revenue by End Market – 2023 3 ($ in millions) Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 RV $367.0 $383.6 $400.1 $352.7 $1,503.3 Marine $238.0 $226.3 $171.7 $146.6 $782.6 Powersports $32.8 $36.5 $28.8 $23.9 $122.0 Housing $262.4 $274.3 $265.5 $258.0 $1,060.2 Total $900.1 $920.7 $866.1 $781.2 $3,468.0 16 CPU, excluding Powersports 1,2 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Marine $4,433 $4,367 $4,209 $4,069 1 CPU = Content per wholesale unit for the trailing twelve-month period 2 Company estimates based on data published by NMMA 3 Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures

Non-GAAP Reconciliation 17 RECONCILIATION OF NET INCOME TO EBITDA TO PRO FORMA ADJUSTED EBITDA FOR THE TRAILING TWELVE MONTHS -Earnings before interest, taxes, depreciation and amortization (“EBITDA”), Pro-Forma Adjusted EBITDA, and Net Debt to Pro-Forma Adjusted EBITDA are non- GAAP financial measures. In addition to reporting financial results in accordance with accounting principles generally accepted in the United States, we provide non- GAAP operating results adjusted for certain items and other one-time items. -We adjust for the items listed above in all periods presented, unless the impact is clearly immaterial to our financial statements. -We utilize the adjusted results to review our ongoing operations without the effect of these adjustments and for comparison to budgeted operating results. We believe the adjusted results are useful to investors because they help them compare our results to prior periods and provide important insights into underlying trends in the business and how management oversees our business operations on a day-to-day basis. -We calculate free cash flow by subtracting cash paid for purchases of property, plant and equipment from cash flow from operations. - Figures may not sum due to rounding. Use of Non-GAAP Financial Measures This presentation contains non-GAAP financial measures. Management believes that, when considered together with reported amounts, these measures are useful to investors and management in understanding our ongoing operations and in the analysis of ongoing operating trends. These measures should be considered in addition to, and not as replacements for, the most comparable GAAP measure. ($ in millions) 06/30/2024 Net Income $153.3 + Depreciation & Amortization 154.9 + Interest Expense, net 72.6 + Income Taxes 46.4 EBITDA $427.2 + Stock Compensation Expense 21.2 + Acquisition Pro Forma, transaction-related expenses & other 43.3 Pro Forma Adjusted EBITDA $491.7 RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE FOR THE TRAILING TWELVE MONTHS Q2 2024 TTM 2019 Operating margin 7.6% 6.6% Acquisition related fair-value inventory step-up - - Transaction costs 0.1% - Adjusted operating margin 7.7% 6.6% RECONCILIATION OF ADJUSTED OPERATING MARGIN FOR THE TRAILING TWELVE MONTHS Q2 2024 TTM 2019 Diluted earnings per common share $6.97 $3.85 Transaction costs, net of tax 0.17 0.01 Acquisition related fair-value inventory step-up, net of tax 0.03 - Adjusted diluted earnings per common share $7.17 $3.86

($ in millions) 6M 2024 Cash Flows from Operations $172.7 Less: Purchases of Property, Plant and Equipment (32.4) Free Cash Flow $140.3 Non-GAAP Reconciliation (Continued) -Earnings before interest, taxes, depreciation and amortization (“EBITDA”), Pro-Forma Adjusted EBITDA, and Net Debt to Pro-Forma Adjusted EBITDA are non- GAAP financial measures. In addition to reporting financial results in accordance with accounting principles generally accepted in the United States, we provide non- GAAP operating results adjusted for certain items and other one-time items. -We adjust for the items listed above in all periods presented, unless the impact is clearly immaterial to our financial statements. -We utilize the adjusted results to review our ongoing operations without the effect of these adjustments and for comparison to budgeted operating results. We believe the adjusted results are useful to investors because they help them compare our results to prior periods and provide important insights into underlying trends in the business and how management oversees our business operations on a day-to-day basis. -We calculate free cash flow by subtracting cash paid for purchases of property, plant and equipment from cash flow from operations. - Figures may not sum due to rounding. Use of Non-GAAP Financial Measures This presentation contains non-GAAP financial measures. Management believes that, when considered together with reported amounts, these measures are useful to investors and management in understanding our ongoing operations and in the analysis of ongoing operating trends. These measures should be considered in addition to, and not as replacements for, the most comparable GAAP measure. 6M 2024 6M 2023 Diluted earnings per common share $3.75 $3.28 Transaction costs, net of tax 0.17 - Acquisition related fair-value inventory step-up, net of tax 0.03 0.02 Adjusted diluted earnings per common share $3.95 $3.30 RECONCILIATION OF YTD ADJUSTED DILUTED EARNINGS PER COMMON SHARE 18 CALCULATION OF YTD FREE CASH FLOW CALCULATION OF FREE CASH FLOW FOR THE TRAILING TWELVE MONTHS ($ in millions) Q2 2024 TTM 2019 Cash Flow from Operations $403.0 $192.4 Less: Purchases of Property, Plant and Equipment (54.9) (27.7) Free Cash Flow $348.1 $164.7 6M 2024 6M 2023 Operating margin 7.4% 7.2% Acquisition related fair-value inventory step-up - 0.1% Transaction costs 0.3% - Adjusted operating margin 7.7% 7.3% RECONCILIATION OF YTD ADJUSTED OPERATING MARGIN

Cover Document	Aug. 01, 2024
Document Entity Information [Abstract]
Entity Central Index Key	0000076605
Document Type	8-K
Document Period End Date	Aug. 01, 2024
Entity Registrant Name	PATRICK INDUSTRIES, INC.
Entity Incorporation, State or Country Code	IN
Entity File Number	000-03922
Entity Tax Identification Number	35-1057796
Entity Address, Address Line One	107 W. Franklin Street
Entity Address, City or Town	Elkhart,
Entity Address, State or Province	IN
Entity Address, Postal Zip Code	46516
City Area Code	(574)
Local Phone Number	294-7511
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, no par value
Trading Symbol	PATK
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Amendment Flag	false