Patrick Industries, Inc. has reported its financial results for the third quarter of 2024, highlighting significant changes compared to the same period in 2023.
The company's net sales increased by 6% to $919 million, driven by a 13% increase in housing revenue and the acquisition of Sportech, which offset a 21% decline in marine revenue. Operating income for the third quarter of 2024 increased by 5% to $74 million compared to the same period in 2023, while operating margin decreased by 10 basis points to 8.1%. Net income increased by 3% to $41 million, with diluted earnings per share standing at $1.80, including the dilutive impact of convertible notes and related warrants.
Adjusted EBITDA increased by 7% to $121 million, with adjusted EBITDA margin increasing by 10 basis points to 13.2%. Cash flow provided by operating activities for the first nine months of 2024 was $224 million compared to $294 million in the same period last year. Free cash flow, on a trailing twelve-month basis, was $277 million.
The company completed the acquisition of RecPro, which significantly increased its penetration into the RV aftermarket and provided synergy opportunities for its marine and powersports end markets. Patrick Industries maintained a solid balance sheet and liquidity position, ending the third quarter with a total net leverage ratio of 2.6x and liquidity of $458 million. Subsequent to the quarter end, the company amended and extended the maturity of its credit facility and issued $500 million aggregate principal amount of 6.375% senior notes due 2032.
Looking at the revenue by market sector, the following changes were noted compared to the third quarter of 2023: RV revenue decreased by 1% to $396 million Marine revenue decreased by 21% to $136 million Powersports revenue increased by 204% to $87 million Housing revenue increased by 13% to $300 million
Patrick Industries also provided insights into its balance sheet, cash flow, and capital allocation. The company's total debt at the end of the third quarter was approximately $1.4 billion, resulting in a total net leverage ratio of 2.6x, with available liquidity of approximately $458 million. The company returned approximately $12 million to shareholders in the third quarter of 2024 through dividends and remained opportunistic on share repurchases with $78 million left authorized under its current share repurchase plan.
The company's CEO, Andy Nemeth, expressed confidence in the strength of the brand portfolio, disciplined operating model, and the profitable opportunities that exist in each of its primary end markets. He emphasized the company's focus on elevating the customer experience, expanding product development and prototyping activities, and expressing optimism for a positive demand inflection in 2025.
Patrick Industries, Inc. will host an online webcast of its third quarter 2024 earnings conference call on October 31, 2024, at 10:00 a.m. Eastern Time.
As of now, the company's stock is listed on the NASDAQ under the symbol PATK and is a leading component solutions provider serving the RV, marine, powersports, and housing markets. Patrick Industries is home to more than 85 leading brands and is headquartered in Elkhart, Indiana, employing approximately 10,000 skilled team members throughout the United States. The market has reacted to these announcements by moving the company's shares -4.3% to a price of $128.2. For the full picture, make sure to review Patrick Industries's 8-K report.
