Patrick Industries reported it boosted its content to OEM suppliers by 24% in the fourth quarter of 2021 and saw net sales increase by 49% from the fourth quarter of 2020 to $375 million.
RV revenues were up $228 million, or 51%, and represented 59% of the company’s consolidated sales. Patrick Chief Financial Officer Jeff Rodino said RV dealers are well-positioned, but not yet back to historical inventory stocking levels to meet the strong continued retail demand in the initial selling months in the first half of 2022.
“Despite the modest build in dealer inventory, dealer inventories are down 29% when compared to 2019,” Rodino said.
CEO Andy Nemeth said the company’s executives expect the RV segments to be in a healthier inventory position during 2022 to not only satisfy consumer demand, but also provide better overall consumer experience.
Nemeth said the company is excited about aftermarket opportunities. He said Patrick plans to meaningfully expand the department within the RV and marine segments.
“We are excited about the runway that is there and (are) looking to build on that,” Nemeth said, adding that Patrick seeks to increase its OEM focus.
Jake Petkovich, Patrick’s chief financial officer, said some of Patrick’s RV growth came from 2021 acquisitions, such as Alpha Systems. He said the company’s RV segments grew 9%-10% organically.
“(W)hich is really a testament to our ability to leverage our scale and our relationships to continue delivering when other folks might stumble a bit or be stocked out,” Petkovich said. “It puts us in a position where we can take share, which is something that was accelerated through the full fiscal year 2021 and certainly showing well in fourth quarter.”
For the full-year of 2021, the company’s RV segments are up 64% year-over-year, which Petkovich said resonates through the overall revenue contribution and Patrick’s content growth.
Rodino said the company is continuing to take pricing to the market through the fourth quarter, and seeing some of that continue into 2022.
“So as a percentage,” Rodino said, “(Pricing) is probably about half of where we were in those quarters going into this year, and we see some leveling out in a few of our areas.”
He noted volitility in some commodities, such as decreases in lumber and aluminum pricing, but the dips do not last.
“So, we are watching those closely and passing along as we see them,” Rodino said.
Nemeth said he anticipates fluctuations as the supply chain begins to ease back toward normal.
“As we move throughout this year into Q2 and Q3,” Nemeth said, “we are expecting some of that to happen.”
