Patrick Industries reported financial results for the third quarter ended Oct. 1 with net sales at $866 million, a decrease of $246 million or 22% from $1.11 billion in the third quarter of 2022.
The decline in sales was primarily driven by a decrease in unit shipments across its end markets and lower pricing passed on to its customers to reflect changes in certain commodity costs, partially offset by market share gains.
“Our operating results for the third quarter of 2023 are a reflection of our team’s thoughtful discipline to manage our business and drive resilient operating margins in a very dynamic environment, despite the continued reduction in shipments across our end markets,” said CEO Andy Nemeth. “We have reduced our overall cost structure and reduced our inventory by $150 million from year-end 2022. Our team’s focus on labor management, automation, and continuous improvement has helped enable us to dynamically adjust our business to current market demand and industry trends, while remaining opportunistically nimble and poised, ready to pivot when opportunity presents itself or upon an uptick in our markets.”
Net income decreased 33% to $40 million from $59 million in the third quarter of 2022. Diluted earnings per share of $1.81 decreased 26% compared to $2.43 for the third quarter of 2022.
President Jeff Rodino said, “We continue to strategically deploy capital and reinvest in the business with the goal of achieving our long-term growth objectives and operational excellence. This focus is also reflected in our repayment of $112 million of long-term debt during the quarter, demonstrating our commitment to maintaining our solid financial foundation and bolstering our ability to seize upon both organic and strategic opportunities. Our acquisition pipeline remains full of potential targets to continue to enhance our outdoor enthusiast platform.”
Patrick Industries will host an online webcast of its third quarter 2023 earnings conference call that can be accessed here under “For Investors” on Thursday, Oct. 26 at 10 a.m. ET.
