Patrick Industries Inc 10-Q for FY2025 Q1

Patrick Industries Inc (PATK)

10-Q 2025-05-08 For: 2025-03-30

Added on April 10, 2026

About this 10-Q

Patrick Industries Inc filed this 10-Q on May 8, 2025, covering the quarter ended March 30, 2025 (FY2025 Q1).

Headline figures

Quarter ended March 30, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1B; up 7.5% from $933.49M a year earlier
Net income: $38.24M; up 9.0% from net income of $35.09M a year earlier
Diluted EPS: $1.11; up 4.7% from $1.06 a year earlier

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Indiana			35-1057796
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)


107 W. Franklin St.
Elkhart, IN						46516
(Address of principal executive offices)						(ZIP Code)


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


		Page
	Part I. Financial Information
Item 1.	Financial Statements	3
	Condensed Consolidated Statements of Income for the Three Months ended March 30, 2025 and March 31, 2024 (Unaudited)	3
	Condensed Consolidated Statements of Comprehensive Income for the Three Months ended March 30, 2025 and March 31, 2024 (Unaudited)	4
	Condensed Consolidated Balance Sheets as of March 30, 2025 (Unaudited) and December 31, 2024	5
	Condensed Consolidated Statements of Cash Flows for the Three Months ended March 30, 2025 and March 31, 2024 (Unaudited)	6
	Condensed Consolidated Statements of Shareholders' Equity for the Three Months ended March 30, 2025 and March 31, 2024 (Unaudited)	7
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	28
Item 4.	Controls and Proceeds	29
	Part II. Other Information
Item 1.	Legal Proceedings	30
Item 1A.	Risk Factors	30
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	30
Item 5.	Other Information	30
Item 6.	Exhibits	31
Signatures		32


	First Quarter Ended
($ and shares in thousands, except per share data)	March 30, 2025		March 31, 2024
Net sales	$	1,003,420	$	933,492
Cost of goods sold	774,829		728,637
Gross profit	228,591		204,855

Operating expenses:
Warehouse and delivery	44,582		37,449
Selling, general and administrative	93,931		85,246
Amortization of intangible assets	24,509		22,818
Total operating expenses	163,022		145,513
Operating income	65,569		59,342
Interest expense, net	19,112		20,090
Income before income taxes	46,457		39,252
Income taxes	8,219		4,159
Net income	$	38,238	$	35,093

Basic earnings per common share (1)	$	1.17	$	1.08
Diluted earnings per common share (1)	$	1.11	$	1.06

Weighted average shares outstanding – Basic (1)	32,671		32,480
Weighted average shares outstanding – Diluted (1)	34,416		33,120


	First Quarter Ended
($ in thousands)	March 30, 2025		March 31, 2024
Net income	$	38,238	$	35,093
Other comprehensive income (loss), net of tax:

Foreign currency translation gain (loss)	4		(32)
Total other comprehensive income (loss)	4		(32)
Comprehensive income	$	38,242	$	35,061


	(Unaudited)
($ in thousands)	March 30, 2025		December 31, 2024
ASSETS
Current Assets:
Cash and cash equivalents	$	86,561	$	33,561
Trade and other receivables, net	289,059		178,206
Inventories	553,924		551,617
Prepaid expenses and other	46,140		59,233
Total current assets	975,684		822,617
Property, plant and equipment, net	406,798		384,903
Operating lease right-of-use assets	199,215		200,697
Goodwill	801,865		797,236
Intangible assets, net	790,915		802,889
Other non-current assets	12,300		12,612
Total assets	$	3,186,777	$	3,020,954
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Current maturities of long-term debt	$	6,250	$	6,250
Current operating lease liabilities	55,489		53,697
Accounts payable	223,230		187,915
Accrued liabilities	119,853		105,753
Total current liabilities	404,822		353,615
Long-term debt, less current maturities, net	1,422,272		1,311,684
Long-term operating lease liabilities	147,900		151,026
Deferred tax liabilities, net	55,609		61,346
Other long-term liabilities	14,906		14,917
Total liabilities	2,045,509		1,892,588
Shareholders' equity
Preferred shares, no par value per share, 1,000,000 shares authorized, none issued and outstanding	—		—
Common stock, no par value per share, 40,000,000 shares authorized, 33,533,091 and 33,567,048 issued and outstanding as of March 30, 2025 and December 31, 2024, respectively	198,408		202,353

Accumulated other comprehensive loss	(922)		(926)
Retained earnings	943,782		926,939
Total shareholders' equity	1,141,268		1,128,366
Total liabilities and shareholders' equity	$	3,186,777	$	3,020,954


	First Quarter Ended March 30, 2025
($ in thousands)	Common Stock		Accumulated Other Comprehensive Loss		Retained Earnings		Total
Balance at December 31, 2024	$	202,353	$	(926)	$	926,939	$	1,128,366
Net income	—		—		38,238		38,238
Dividends declared	—		—		(13,485)		(13,485)
Other comprehensive income, net of tax	—		4		—		4
Stock repurchases under buyback program	(601)		—		(7,910)		(8,511)
Repurchase of shares for tax payments related to the vesting and exercising of share-based grants	(8,593)		—		—		(8,593)

Stock-based compensation expense	5,249		—		—		5,249
Balance at March 30, 2025	$	198,408	$	(922)	$	943,782	$	1,141,268


	First Quarter Ended March 31, 2024
($ in thousands)	Common Stock		Accumulated Other Comprehensive Loss		Retained Earnings		Total
Balance at December 31, 2023	$	203,258	$	(999)	$	843,078	$	1,045,337
Net income	—		—		35,093		35,093
Dividends declared	—		—		(12,534)		(12,534)
Other comprehensive loss, net of tax	—		(32)		—		(32)

Repurchase of shares for tax payments related to the vesting and exercising of share-based grants	(14,788)		—		—		(14,788)

Stock-based compensation expense	5,460		—		—		5,460
Balance at March 31, 2024	$	193,930	$	(1,031)	$	865,637	$	1,058,536


	First Quarter Ended March 30, 2025
($ in thousands)	Manufacturing		Distribution		Total
Market type:
Recreational Vehicle	$	345,973	$	132,919	$	478,892
Marine	139,366		9,681		149,047
Powersports	77,234		3,706		80,940
Manufactured Housing	76,327		96,899		173,226
Industrial	111,862		9,453		121,315
Total	$	750,762	$	252,658	$	1,003,420


	2025 Acquisitions		2024 Acquisitions
($ in thousands)	Total		Sportech		All Others		Total
Consideration:
Cash, net of cash acquired	$	43,132	$	319,073	$	96,998	$	416,071
Working capital holdback and other, net	703		—		—		—

Contingent consideration (1)	1,800		—		2,030		2,030
Total consideration	$	45,635	$	319,073	$	99,028	$	418,101

Assets Acquired:
Trade receivables	$	3,049	$	21,587	$	2,256	$	23,843
Inventories	7,673		20,611		19,010		39,621
Prepaid expenses & other	149		1,719		4,138		5,857
Property, plant & equipment	28,032		18,766		7,083		25,849
Operating lease right-of-use assets	—		15,096		1,284		16,380
Identifiable intangible assets:
Customer relationships	8,400		152,000		17,560		169,560
Non-compete agreements	400		2,000		2,375		4,375
Patents and developed technology	1,200		17,500		600		18,100
Trademarks	900		20,500		8,000		28,500
Liabilities Assumed:
Current portion of operating lease obligations	—		(1,437)		(585)		(2,022)
Accounts payable & accrued liabilities	(8,337)		(32,398)		(4,313)		(36,711)
Operating lease obligations	—		(13,658)		(699)		(14,357)
Deferred tax liabilities	—		(21,288)		—		(21,288)
Total fair value of net assets acquired	41,466		200,998		56,709		257,707
Goodwill (2)	4,169		118,075		42,319		160,394

Total purchase price allocation	$	45,635	$	319,073	$	99,028	$	418,101


	First Quarter Ended
($ in thousands, except per share data)	March 30, 2025		March 31, 2024
Revenue	$	1,009,873	$	988,325
Net income	$	37,713	$	34,929
Basic earnings per common share	$	1.15	$	1.08
Diluted earnings per common share	$	1.10	$	1.05


Expected term	9 years
Expected volatility	24	%
Risk-free interest rate	4.25	%
Dividend yield	1.77	%


	March 30, 2025						December 31, 2024
($ in millions)	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3


1.75% convertible notes due 2028 (1)	$	—	$	367.0	$	—	$	—	$	351.3	$	—
4.75% senior notes due 2029 (1)	$	—	$	328.5	$	—	$	—	$	330.3	$	—
6.375% senior notes due 2032 (1)	$	—	$	485.6	$	—	$	—	$	485.0	$	—
Term loan due 2029 (1) (2)	$	—	$	123.4	$	—	$	—	$	123.4	$	—
Revolver due 2029 (1) (2)	$	—	$	210.0	$	—	$	—	$	100.0	$	—
Contingent consideration (3)	$	—	$	—	$	3.8	$	—	$	—	$	3.6


	As of
($ in thousands)	March 30, 2025		December 31, 2024
Total assets:
Manufacturing segment assets	$	2,498,348	$	2,402,533
Distribution segment assets	547,165		524,827
Corporate assets unallocated to segments	54,703		60,033
Cash and cash equivalents	86,561		33,561
Consolidated total assets	$	3,186,777	$	3,020,954


($ in thousands)	March 30, 2025		December 31, 2024
Raw materials	$	307,043	$	292,730
Work in process	17,553		18,157
Finished goods	102,105		103,318
Less: reserve for inventory excess and obsolescence	(19,056)		(16,456)
Total manufactured goods, net	407,645		397,749
Materials purchased for resale (distribution products)	155,634		161,492
Less: reserve for inventory excess and obsolescence	(9,355)		(7,624)
Total materials purchased for resale (distribution products), net	146,279		153,868
Total inventories	$	553,924	$	551,617


	First Quarter Ended
($ in thousands)	March 30, 2025		March 31, 2024
Net sales:
Total sales for reportable segments	$	1,008,573	$	953,012
Elimination of inter-segment sales (1)	(5,153)		(19,520)
Consolidated net sales	$	1,003,420	$	933,492

Depreciation and amortization:
Depreciation and amortization for reportable segments	$	41,075	$	38,738
Corporate depreciation and amortization	1,571		1,597
Consolidated depreciation and amortization	$	42,646	$	40,335

Capital expenditures:
Capital expenditures for reportable segments	$	18,111	$	14,080
Corporate capital expenditures	2,060		1,415
Consolidated capital expenditures	$	20,171	$	15,495


	First Quarter Ended				Amount Change		% Change
($ in thousands)	March 30, 2025		March 31, 2024
Sales
Manufacturing	$	754,487	$	714,510	$	39,977	6%
Distribution	$	254,086	$	238,502	$	15,584	7%
Gross Profit
Manufacturing	$	169,391	$	156,664	$	12,727	8%
Distribution	$	61,701	$	50,057	$	11,644	23%
Operating Income
Manufacturing	$	98,121	$	87,450	$	10,671	12%
Distribution	$	25,000	$	23,720	$	1,280	5%


	Required	Actual
Consolidated secured net leverage ratio (12-month period)	2.75	0.43
Consolidated interest coverage ratio (12-month period)	3.00	6.70


	First Quarter Ended
($ in millions, except average price data)	March 30, 2025		March 31, 2024
Shares repurchased	99,763		—
Average price	$	85.31	$	—
Aggregate cost	$	8.5	$	—


Period	Total Number of Shares Purchased (1)	Average Price Paid Per Share (1)		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2)	Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (2)
January 1 - January 26, 2025	—	$	—	—	$	200,000,000
January 27 - March 2, 2025	86,300	$	96.46	—	$	200,000,000
March 3 - March 30, 2025	102,862	$	85.34	99,763	$	191,500,000
	189,162			99,763


Exhibits (1)			Description
31.1			Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by Chief Executive Officer
31.2			Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by Chief Financial Officer
32			Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 by Chief Executive Officer and Chief Financial Officer
101			Interactive Data Files. The following materials are filed electronically with this Quarterly Report on Form 10-Q:


			101.INS			Inline XBRL Instance Document
			101.SCH			Inline XBRL Taxonomy Schema Document
			101.CAL			Inline XBRL Taxonomy Calculation Linkbase Document
			101.DEF			Inline XBRL Taxonomy Definition Linkbase Document
			101.LAB			Inline XBRL Taxonomy Label Linkbase Document
			101.PRE			Inline XBRL Taxonomy Presentation Linkbase Document


104			Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)



Date: May 8, 2025	By:	/s/ Andrew C. Roeder
		Andrew C. Roeder
		Executive Vice President - Finance, Chief Financial Officer, and Treasurer



Date: May 8, 2025	By:	/s/ Matthew S. Filer
		Matthew S. Filer
		Senior Vice President - Finance and Chief Accounting Officer


Date:	May 8, 2025	/s/ Andy L. Nemeth
		Andy L. Nemeth Chief Executive Officer