# EDGAR Filing Document

**Accession Number:** 0000076605
**File Stem:** 0000076605-23-000045
**Filing Date:** 2023-2
**Character Count:** 45638
**Document Hash:** 3bbc563edbec89154ab2045a9c4f760b
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000076605-23-000045.hdr.sgml**: 20230209

**ACCESSION NUMBER**: 0000076605-23-000045

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 25

**CONFORMED PERIOD OF REPORT**: 20230206

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Other Events

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230209

**DATE AS OF CHANGE**: 20230209

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** PATRICK INDUSTRIES INC
- **CENTRAL INDEX KEY:** 0000076605
- **STANDARD INDUSTRIAL CLASSIFICATION:** MOTOR VEHICLE PARTS & ACCESSORIES [3714]
- **IRS NUMBER:** 351057796
- **STATE OF INCORPORATION:** IN
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-03922
- **FILM NUMBER:** 23601325

**BUSINESS ADDRESS:**
- **STREET 1:** 107 WEST FRANKLIN STREET PO BOX 638
- **CITY:** ELKHART
- **STATE:** IN
- **ZIP:** 46515
- **BUSINESS PHONE:** 574-294-7511

**MAIL ADDRESS:**
- **STREET 1:** 107 WEST FRANKLIN STREET PO BOX 638
- **CITY:** ELKHART
- **STATE:** IN
- **ZIP:** 46515

?xml version="1.0" ? patk-20230206

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**FORM 8-K CURRENT REPORT Pursuant To Section 13 OR 15(d) Of The Securities Exchange Act Of 1934** 

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| | |
|:---|:---|
| Date of report (Date of earliest event reported) | **February 6, 2023** |
| **PATRICK INDUSTRIES, INC.** | **PATRICK INDUSTRIES, INC.** |
| (Exact name of registrant as specified in its charter) | (Exact name of registrant as specified in its charter) |

---

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| | | |
|:---|:---|:---|
| **Indiana** | **000-03922** | **35-1057796** |
| (State or other jurisdiction <br>of incorporation) | (Commission <br>File Number) | (IRS Employer <br>Identification Number) |

---

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| | | | |
|:---|:---|:---|:---|
| **107 W. Franklin Street, P.O. Box 638** | **Elkhart,** | **Indiana** | **46515** |
| (Address of Principal Executive Offices) | (Address of Principal Executive Offices) | (Address of Principal Executive Offices) | (Zip Code) |

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| | | |
|:---|:---|:---|
| Registrant's Telephone Number, including area code | **(574)** | **294-7511** |
| (Former name or former address if changed since last report) | (Former name or former address if changed since last report) |  |

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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 <br> <u> Common Stock, no par value</u> <u> PATK</u> <u>NASDAQ</u>

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).&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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. ◻

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**Item 2.02 &nbsp;&nbsp;&nbsp;&nbsp;Results of Operations and Financial Condition.**

On February 9, 2023, the Company issued a press release announcing operating results for the fourth quarter and full year ended December 31, 2022. A copy of the press release is furnished herewith as Exhibit 99.1 and incorporated herein by reference.

**Item 7.01 &nbsp;&nbsp;&nbsp;&nbsp;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 8.01&nbsp;&nbsp;&nbsp;&nbsp;Other Events** 

On February 9, 2023, the Company announced that on February 6, 2023, its Board of Directors declared a quarterly cash dividend on its common stock of $0.45 per share. The dividend is payable on March 6, 2023, to shareholders of record at the close of business on February 21, 2023.

A copy of the press release is furnished herewith as Exhibit 99.1 and incorporated herein by reference.

**Item 9.01 &nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits**

(d)&nbsp;&nbsp;&nbsp;&nbsp;Exhibits

<u>[Exhibit 99.1](patk2022-q4991.htm)</u> - Press Release issued February 9, 2023

<u>[Exhibit 99](patkq422earningspresenta.htm)[.2](patkq422earningspresenta.htm)</u> - 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.

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| |
|:---|
| **PATRICK INDUSTRIES, INC.** |
| (Registrant) |

---

---

| | | |
|:---|:---|:---|
| Date: February 9, 2023 | &nbsp;&nbsp;&nbsp;&nbsp;By: | /s/ Jacob R. Petkovich |
|  |  | Jacob R. Petkovich |
|  |  | Executive Vice President - Finance, Chief Financial Officer, and Treasurer |

---

## Exhibit 99.1

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;![image.jpg](image.jpg)**News Release**

**PATRICK INDUSTRIES, INC. REPORTS FOURTH QUARTER AND RECORD FULL YEAR 2022 FINANCIAL RESULTS AND ANNOUNCES QUARTERLY CASH DIVIDEND**

**Fourth Quarter 2022 Highlights** *(compared to Fourth Quarter 2021 unless otherwise noted)*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net sales of $952 million decreased 17%, with increased marine and manufactured housing revenue partially offsetting a 47% wholesale unit shipment decline in the RV end market

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Gross margin of 21.1% increased 130 basis points

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operating income of $68 million decreased 29%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operating margin of 7.1% decreased 120 basis points

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net income of $40 million decreased 34%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Diluted earnings per share decreased 36% to $1.68, including a reduction of $0.14 per share for the impact of the accounting treatment for convertible notes

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA of $108 million decreased 16%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** Operating cash flows of $182 million increased 74%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Acquisition of Transhield

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Increased share repurchase authorization to $100 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Release of inaugural Responsibility & Sustainability Report in December

**Full Year 2022 Highlights** *(compared to Full Year 2021 unless otherwise noted)*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net sales of $4.9 billion increased 20%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Gross margin of 21.7% increased 210 basis points

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operating income of $496 million increased 41%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operating margin of 10.2% increased 160 basis points

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net income of $328 million increased 46%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Diluted earnings per share increased 40% to $13.49, including a reduction of $1.15 per share for the impact of the accounting treatment for convertible notes

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA of $643 million increased 34%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** Operating cash flows of $412 million increased 63%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Repurchased 1,325,564 shares for a total of $77 million and returned $33 million in dividends to our shareholders

ELKHART, IN - February 9, 2023 - Patrick Industries, Inc. (NASDAQ: PATK) (the "Company"), a leading component solutions provider for the Leisure Lifestyle and Housing markets, today reported financial results for the fourth quarter and full year ended December 31, 2022.

Net sales in the fourth quarter of 2022 decreased $196 million, or 17%, to $952 million from $1.1 billion in the fourth quarter of 2021. Wholesale unit shipments declined 47% in the RV industry, which represents 43% of our revenue in the quarter. Revenue growth in our marine and manufactured housing end markets partially offset the revenue decrease in our RV end market, and demonstrates the benefit of our diversified portfolio of business.

Operating income of $68 million decreased $27 million, or 29%, from $95 million in the fourth quarter of 2021. Operating margin of 7.1% in the fourth quarter of 2022 decreased 120 basis points compared to 8.3% in the same period a year ago. The decline in operating margin was driven principally by fixed cost absorption related to the decrease in sales, increased infrastructure investments to support our growth and strategic diversification efforts, continued execution of our IT transformation initiatives, and an increase in amortization

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of intangible assets from recent acquisitions. This decline was partially offset by the continued realization of efficiencies related to automation initiatives and the contribution of our margin-accretive acquisitions.

Net income was $40 million, a decrease of 34%, compared to $61 million in the fourth quarter of 2021. Diluted earnings per share was $1.68, a decrease of 36% for the fourth quarter of 2022 compared to $2.62 for the fourth quarter of 2021. Diluted earnings per share for the fourth quarter of 2022 includes a non-cash reduction of $0.14 per share for the accounting treatment of convertible notes discussed below. Adjusted EBITDA for the fourth quarter of 2022 was $108 million, declining 16% versus the prior year period.

In the first quarter of 2022, the Company adopted a new accounting standard that requires its 1.00% convertible notes due 2023 to be presented on an "if converted" basis in the calculation of diluted earnings per share. As a result of the adoption of this standard, the Company's fourth quarter and full year 2022 diluted earnings per share was reduced by $0.14 and $1.15, respectively. Prior year results do not reflect the adoption of the new accounting standard. These convertible notes were repaid in full at maturity on February 1, 2023 and will not materially impact diluted earnings per share in 2023.

"We are proud of our team's performance during the fourth quarter and full year as we navigated extremely dynamic market conditions and capitalized on our size, scale, flexibility, and resources in our efforts to service our customers at the highest level," said Andy Nemeth, Chief Executive Officer. "Our business model served us well in 2022, as we reported record full year revenues and profits, despite the RV OEM production recalibration that began in the second half of the year. Our ongoing efforts to strategically diversify our business continue to bear fruit as our fourth quarter results help demonstrate our portfolio's resilience and ability to mitigate declines within individual end markets."

Jeff Rodino, President, said, "Our investments into the marine OEM market and marine aftermarket helped bolster Patrick's results in the fourth quarter and full year. Additionally, we have continued to invest in our infrastructure and culture to support our strategic plan and solidify the Company's foundation for future growth. With new and younger buyers in the leisure lifestyle spaces and the continued limited inventory of affordable housing, we see the potential for long-term growth across our business."

 **Fourth Quarter 2022 Revenue by Market Sector** *(compared to Fourth Quarter 2021 unless otherwise noted)*

**RV** (43% of Revenue)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Revenue of $411 million decreased 39% while wholesale RV industry unit shipments decreased 47%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Full year content per wholesale RV unit increased 31% to $5,257

**Marine** (27% of Revenue)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Revenue of $255 million increased 35% while estimated wholesale powerboat industry unit shipments increased 11%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Full year estimated content per wholesale powerboat unit increased 45% to $5,281

**MH** (16% of Revenue)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Revenue of $155 million increased 3% while wholesale MH industry unit shipments decreased 12%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Full year content per wholesale MH unit increased 21% to $6,243

**Industrial** (14% of Revenue)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Revenue of $130 million decreased 2% while housing starts decreased 16%

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**Full Year 2022 Results**

Net sales of $4.9 billion for the full year 2022 increased $804 million, or 20%, from $4.1 billion in 2021, reflecting strong demand for RVs in the first half of the year coupled with more consistent marine and housing demand throughout the year, as well as contributions from acquisitions completed during 2021 and 2022.

Full year 2022 operating income of $496 million increased $144 million, or 41%, compared to $352 million in 2021. Operating margin of 10.2% improved 160 basis points from 8.6% in the prior year. Net income of $328 million increased 46% compared to $225 million in 2021. Diluted earnings per share of $13.49 increased 40% compared to $9.63 in the prior year. Diluted earnings per share for the full year 2022 includes a non-cash reduction of $1.15 per share for the accounting treatment of convertible notes discussed above. Adjusted EBITDA for full year 2022 was $643 million, increasing 34% over 2021.

**Balance Sheet, Cash Flow and Capital Allocation**

Operating cash flow for the fourth quarter of 2022 was $182 million, an increase of 74%, compared to $105 million for the fourth quarter of 2021. Full year 2022 operating cash flow of $412 million increased 63% compared to the prior year due to strong profitability and diligent working capital management. Capital expenditures for the fourth quarter of 2022 totaled $16 million, a decrease of 20%, compared to $21 million in the fourth quarter of 2021. Capital expenditures for full year 2022 totaled $80 million, an increase of 23% from 2021, reflecting continued investments in automation, IT, and capacity in support of scalable growth. For the full year 2022, business acquisitions in RV, marine, powersports, and our industrial markets totaled $249 million, including the previously announced acquisition of Transhield in the fourth quarter.

In alignment with our capital allocation strategy, we returned $38 million to shareholders in the fourth quarter of 2022, consisting of $28 million in opportunistic repurchases of 516,922 shares and $10 million in dividends. For the full year 2022, we repurchased 1,325,564 shares for a total of $77 million and returned $33 million in dividends to our shareholders.

Our total debt at the end of the quarter was approximately $1.3 billion, resulting in a net leverage ratio of 1.9x (as calculated in accordance with our credit agreement). Available liquidity, comprised of borrowing availability under our credit facility and cash on hand, was approximately $508 million, which was net of a temporary reserve of $202.5 million against our credit facility until the settlement of our 1.00% convertible notes due 2023 as required by our credit agreement. The reserve consisted of the $172.5 million redemption price for the 1.00% convertible notes and a required excess reserve of $30.0 million. The Company repaid in full the 1.00% convertible notes at maturity in February 2023 through available borrowing capacity under the credit facility and cash on hand, releasing the $202.5 million temporary reserve.

**Business Outlook and Summary**

"We could not have achieved these results without the diligence, discipline, and dedication of our team members and the partnership we have with our customers and suppliers," said Mr. Nemeth. "We are aggressively managing our working capital in alignment with projected demand levels and remain committed to working towards optimizing our capital allocation, which is key to our long-term growth strategy. We are confident in our business's ability to generate free cash flow, as reflected in our decision to increase our quarterly dividend 36% to $0.45 per share and increase our share repurchase authorization to $100 million in the fourth quarter. We remain focused on meeting potential challenges ahead in 2023 and positioning our business for long-term success as we continue to invest in our infrastructure and strive to solidify Patrick as the first-choice component solutions provider in the leisure lifestyle and housing markets."

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**Quarterly Cash Dividend**

On February 6, 2023, the Company's Board of Directors declared a quarterly cash dividend of $0.45 per share of common stock. The dividend is payable on March 6, 2023, to shareholders of record at the close of business on February 21, 2023.

**Conference Call Webcast**

As previously announced, Patrick Industries will host an online webcast of its fourth quarter 2022 earnings conference call that can be accessed on the Company's website, <u>www.patrickind.com</u>, under "For Investors," on Thursday, February 9, 2023 at 10:00 a.m. Eastern time. In addition, a supplemental earnings presentation can be accessed on the Company's website, <u>www.patrickind.com</u> under "For Investors."

**About Patrick Industries, Inc.**

Patrick Industries (NASDAQ: PATK) is a leading component solutions provider for the RV, marine, manufactured housing and various industrial markets – including single and multi-family housing, hospitality, institutional and commercial markets. Founded in 1959, Patrick is based in Elkhart, Indiana, with approximately 11,000 employees across the United States.

**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, earnings before interest, taxes, depreciation and amortization ("EBITDA"), Adjusted EBITDA, 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, EBITDA, Adjusted EBITDA, 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 and subtracting out gain on sale of property, plant and equipment. 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.

**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 impact of the continuing financial and operational uncertainty due to the COVID-19 pandemic, including its impact on the overall economy, our sales, customers, operations, team members, suppliers, and the countries where we have operations or from which we source products and raw materials, such as China; 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, including as a result of the current war in Ukraine; 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; 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, and marine products; the imposition of, or changes in, restrictions and taxes on imports of raw materials and components used in our products; information technology

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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; inventory levels of retailers and manufacturers; 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; increases in interest rates and oil and gasoline prices; the ability to retain key executive and management personnel; the disruption of business resulting from natural disasters or other unforeseen events, and adverse weather conditions impacting retail sales.

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, 2021, 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. In addition, future dividends are subject to Board approval. 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 5

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| | | | | |
|:---|:---|:---|:---|:---|
| **PATRICK INDUSTRIES, INC.** | **PATRICK INDUSTRIES, INC.** | **PATRICK INDUSTRIES, INC.** | **PATRICK INDUSTRIES, INC.** | **PATRICK INDUSTRIES, INC.** |
| **CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)** | **CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)** | **CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)** | **CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)** | **CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)** |
|  | Fourth Quarter Ended | Fourth Quarter Ended | Year Ended | Year Ended |
| (thousands except per share data) | **December 31, 2022** | December 31, 2021 | **December 31, 2022** | December 31, 2021 |
| **NET SALES** | $**951915** | $1147479 | $**4881872** | $4078092 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of goods sold | **750877** | 920455 | **3821934** | 3276898 |
| **GROSS PROFIT** | **201038** | 227024 | **1059938** | 801194 |
| &nbsp;&nbsp;Operating Expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Warehouse and delivery | **37813** | 38993 | **163026** | 139606 |
| &nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative | **76544** | 77705 | **327513** | 253547 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of intangible assets | **19054** | 15634 | **73229** | 56329 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | **133411** | 132332 | **563768** | 449482 |
| **OPERATING INCOME** | **67627** | 94692 | **496170** | 351712 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense, net | **15770** | 16695 | **60760** | 57890 |
| **Income before income taxes** | **51857** | 77997 | **435410** | 293822 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes | **11677** | 16977 | **107214** | 68907 |
| **NET INCOME** | $**40180** | $61020 | $**328196** | $224915 |
| **BASIC EARNINGS PER COMMON SHARE** | $**1.85** | $2.69 | $**14.82** | $9.87 |
| **DILUTED EARNINGS PER COMMON SHARE** | $**1.68** | $2.62 | $**13.49** | $9.63 |
| Weighted average shares outstanding - Basic | **21771** | 22653 | **22140** | 22780 |
| Weighted average shares outstanding - Diluted | **24191** | 23299 | **24471** | 23355 |

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| | | |
|:---|:---|:---|
| **PATRICK INDUSTRIES, INC.** | **PATRICK INDUSTRIES, INC.** | **PATRICK INDUSTRIES, INC.** |
| **CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)** | **CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)** | **CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)** |
|  | As of | As of |
| (thousands) | **December 31, 2022** | December 31, 2021 |
| **ASSETS** |  |  |
| Current Assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $**22847** | $122849 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trade receivables, net | **172890** | 172392 |
| &nbsp;&nbsp;&nbsp;&nbsp; Inventories | **667841** | 614356 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other | **46326** | 64478 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current assets** | **909904** | 974075 |
| Property, plant and equipment, net | **350572** | 319493 |
| Operating lease right-of-use assets | **163674** | 158183 |
| Goodwill and intangible assets, net | **1349493** | 1191833 |
| Other non-current assets | **8828** | 7147 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL ASSETS** | $**2782471** | $2650731 |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |
| Current Liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Current maturities of long-term debt | $**7500** | $7500 |
| &nbsp;&nbsp;&nbsp;&nbsp; Current operating lease liabilities | **44235** | 40301 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | **142910** | 203537 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued liabilities | **172595** | 181439 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current liabilities** | **367240** | 432777 |
| Long-term debt, less current maturities, net | **1276149** | 1278989 |
| Long-term operating lease liabilities | **122471** | 120161 |
| Deferred tax liabilities, net | **48392** | 36453 |
| Other long-term liabilities | **13050** | 14794 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL LIABILITIES** | **1827302** | 1883174 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL SHAREHOLDERS' EQUITY** | $**955169** | $767557 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY** | $**2782471** | $2650731 |

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**PATRICK INDUSTRIES, INC.** 

 **CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)** 

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| | | |
|:---|:---|:---|
| | Year Ended | Year Ended |
| (thousands) | **December 31, 2022** | December 31, 2021 |
|  | **December 31, 2022** | December 31, 2021 |
| **CASH FLOWS FROM OPERATING ACTIVITIES** |  |  |
| &nbsp;&nbsp;Net income | $**328196** | $224915 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | **130757** | 104808 |
| &nbsp;&nbsp;&nbsp;Amortization of convertible notes debt discount | **1851** | 7987 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation expense | **21751** | 22887 |
| &nbsp;&nbsp;&nbsp;Other adjustments to reconcile net income to net cash provided by operating activities | **(10124)** | 1611 |
| &nbsp;&nbsp;&nbsp;Change in operating assets and liabilities, net of acquisitions of businesses | **(60693)** | (110078) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash provided by operating activities** | **411738** | 252130 |
| **CASH FLOWS FROM INVESTING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;Capital expenditures | **(79883)** | (64804) |
| &nbsp;&nbsp; Business acquisitions and other investing activities | **(241584)** | (509930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash used in investing activities** | **(321467)** | (574734) |
| **NET CASH FLOWS (USED IN) PROVIDED BY FINANCING ACTIVITIES** | **(190273)** | 400686 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Decrease) increase in cash and cash equivalents | **(100002)** | 78082 |
| Cash and cash equivalents at beginning of year | **122849** | 44767 |
| **Cash and cash equivalents at end of year** | $**22847** | $122849 |

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**PATRICK INDUSTRIES, INC.**

**Earnings Per Common Share (Unaudited)**

The table below illustrates the calculation for diluted share count which shows the dilutive impact of the adoption of ASU 2020-06 on our 1.00% convertible notes due 2023 as mentioned above:

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| | | | | |
|:---|:---|:---|:---|:---|
| | Fourth Quarter Ended | Fourth Quarter Ended | Year Ended | Year Ended |
| (thousands except per share data) | **December 31, 2022** | December 31, 2021 | **December 31, 2022** | December 31, 2021 |
| **Numerator:** |  |  |  |  |
| Earnings for basic per share calculation | $**40180** | $61020 | $**328196** | $224915 |
| &nbsp;&nbsp;&nbsp;&nbsp;Effect of interest on potentially dilutive convertible notes, net of tax | **510** |  | **1927** |  |
| Earnings for dilutive per share calculation | $**40690** | $61020 | $**330123** | $224915 |
| **Denominator:** |  |  |  |  |
| Weighted average common shares outstanding - basic | **21771** | 22653 | **22140** | 22780 |
| &nbsp;&nbsp;&nbsp;&nbsp;Weighted average impact of potentially dilutive convertible notes | **2078** |  | **2059** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Weighted average impact of potentially dilutive securities | **342** | 646 | **272** | 575 |
| Weighted average common shares outstanding - diluted | **24191** | 23299 | **24471** | 23355 |
| **Earnings per common share:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic earnings per common share | $**1.85** | $2.69 | $**14.82** | $9.87 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted earnings per common share | $**1.68** | $2.62 | $**13.49** | $9.63 |

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**PATRICK INDUSTRIES, INC.**

**Non-GAAP Reconciliation (Unaudited)**

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

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| | | | | |
|:---|:---|:---|:---|:---|
| | Fourth Quarter Ended | Fourth Quarter Ended | Year Ended | Year Ended |
| (thousands) | **December 31, 2022** | December 31, 2021 | **December 31, 2022** | December 31, 2021 |
| **Net income** | $**40180** | $61020 | $**328196** | $224915 |
| &nbsp;&nbsp;&nbsp;&nbsp;+ Depreciation & amortization | **34501** | 28510 | **130757** | 104808 |
| &nbsp;&nbsp;&nbsp;&nbsp;+ Interest expense, net | **15770** | 16695 | **60760** | 57890 |
| &nbsp;&nbsp;&nbsp;&nbsp;+ Income taxes | **11677** | 16977 | **107214** | 68907 |
| **EBITDA** | **102128** | 123202 | **626927** | 456520 |
| &nbsp;&nbsp;&nbsp;&nbsp;+ Stock based compensation | **6155** | 5580 | **21751** | 22887 |
| &nbsp;&nbsp;&nbsp;&nbsp;+ (Gain) loss on sale of property, plant and equipment | **153** | 10 | **(5560)** | 583 |
| **Adjusted EBITDA** | $**108436** | $128792 | $**643118** | $479990 |

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## Exhibit 99.2

![](patkq422earningspresenta001.jpg)

Q4 2022 Earnings Presentation 1 Q4 2022 EARNINGS PRESENTATION February 9, 2023

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![](patkq422earningspresenta002.jpg)

Q4 2022 Earnings Presentation 2 FORWARD LOOKING STATEMENTS This presentation 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. These risks and uncertainties include, but are not limited to, the impact of the continuing financial and operational uncertainty due to the COVID-19 pandemic, including its impact on the overall economy, our sales, customers, operations, team members and suppliers. Further information concerning the Company and its business, including factors that potentially could materially affect the Company's financial results, is contained in the Company's filings with the Securities and Exchange Commission. This presentation includes market and industry data, forecasts and valuations that have been obtained from independent consultant reports, publicly available information, various industry publications and other published industry sources. Although we believe these sources are reliable, we have not independently verified the information and cannot make any representation as to the accuracy or completeness of such information. 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.

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![](patkq422earningspresenta003.jpg)

Q4 2022 Earnings Presentation 3 Q4 2022 QUARTERLY HIGHLIGHTS Solid Performance Driven by Diversified Portfolio and Execution by Patrick Team Members Revenue Down 17% Y/Y on RV OEM Production Reduction • Marine & Housing revenue growth reduced impact of 47% decline in RV wholesale unit shipments • RV OEMs reduced production to better align dealer inventory with demand • Marine inventory channel continued to rebuild as powerboat shipments increased year-over-year • Housing revenue growth driven by share gains, pricing, shift to multi-family, and continued R&R spending • Long-term demand trends in leisure lifestyle and housing remain positive despite near-term uncertainty Gross Margin Expansion of 130bps Y/Y • More diversified end market exposure with growing Marine and aftermarket revenue; growing portfolio of higher margin products • Flexible platform with highly variable cost structure; improved efficiency through automation and technology • Strong execution of leverageable model, strategic acquisitions and close partnership with customers Strong Cash Flows to Help Weather Economic Uncertainty • 74% increase in operating cash flow primarily driven by working capital monetization • Deploying Capex to increase automation, improve efficiency, and expand capabilities • Strong available liquidity and low leverage allow us to remain opportunistic and forward leaning • Increased our quarterly dividend 36% in Q4 to $0.45 per share; reauthorization of our stock buyback program to $100 million in December Continued Progress on ESG Initiatives • Published inaugural Responsibility & Sustainability Report • ESG Journey is a natural extension of our BETTER Together philosophy to further develop practices that drive accountability and performance across our operations • Our efforts support Empowering People, Caring for Our Planet, and Living by Our Policies

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![](patkq422earningspresenta004.jpg)

Q4 2022 Earnings Presentation 4 PERFORMANCE BY MARKET SECTORS RV Marine MH Industrial 43% of Q4'22 Sales 27% of Q4'22 Sales 16% of Q4'22 Sales 14% of Q4'22 Sales (39%) +35% +3% Revenue of $411M Revenue of $255M Revenue of $155M Revenue of $130M CPU1 of $5,257 +31% CPU1 of $5,281 +45% CPU1 of $6,243 +21% Housing Starts (Y/Y) (16%) CPU1 = Content per wholesale unit on a trailing twelve-month basis Multi-Family Single-Family (26%)+8% (2%)

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![](patkq422earningspresenta005.jpg)

Q4 2022 Earnings Presentation 5 RV1 MARINE1 MARKET SECTOR TRENDS Industry Trends • OEMs acting with discipline, reducing production schedules to manage dealer inventories • Despite near-term challenges, RV industry should benefit from favorable demographic trends • Additional government resources allocated to promoting parks improvements • Inventory and demand for higher-end categories remain constructive • Commodity and freight costs declining • Average age of preowned boats sold in 2021 was at near all-time highs according to the NMMA Abstract, pointing to opportunities for OEMs and Aftermarket • Long-term demand trends remain positive as affordable housing gap remains unfilled • Industry has seen slow and steady recovery since Great Recession, with current shipments well below previous peaks • Limited housing inventory sustains long-term demand trends • New housing starts impacted by rising interest rates, signs point to demand shifting toward multi-family and rental options Durable Secular Trends • Lifestyle preferences of families looking to experience camping/outdoor and boating activities with friends and family continue to support demand • Urban-to-less-dense movement • Demographics, lower inventories at affordable price points • R&R activities, multi-family construction activity • Low inventory of available homes Q4 2022 Unit Snapshot MH INDUSTRIAL RV: Industry headwinds, macroeconomic uncertainty and consumer pressures impacting RV market MARINE: Supply chain constraints easing, allowing OEMs to replenish depleted inventories 1 Company estimates supported by RVIA, NMMA & SSI 77,700 68,700 Wholesale Retail 46,100 22,100 Wholesale Retail

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![](patkq422earningspresenta006.jpg)

Q4 2022 Earnings Presentation 6 NET SALES & GROSS MARGIN OPERATING INCOME & MARGIN $2.62 $1.82 Q4 2021 Q4 2022 $2.62 $1.68 Q4 2021 Q4 2022 Q4 2022 FINANCIAL PERFORMANCE $95 $68 Q4 2021 Q4 2022 $1,147 $952 Q4 2021 Q4 2022 8.3% 7.1%  Net Sales declined 17% as revenue growth in our Marine and MH end markets partially offset a 47% reduction in RV OEM wholesale shipments  Gross margin improved due to end market diversification strategy, realization of production efficiency initiatives and proactive management of our highly variable cost structure  Operating margin results driven by the impact of reduced RV OEM production, investments in human capital, continued execution of our IT transformation and an increase in amortization of intangible assets  Invested $16M in capital expenditures to support automation, production efficiency initiatives, and information technology  Adjusted diluted EPS decreased 31% excluding the impact of new accounting standard on diluted EPS of $0.14 ($ millions except per share data) DILUTED EPS ADJUSTED DILUTED EPS 19.8% 21.1%

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![](patkq422earningspresenta007.jpg)

Q4 2022 Earnings Presentation 7 BALANCE SHEET AND LIQUIDITY 1 As of 12/31/22; 2 As defined by credit agreement; 3 In February 2023, the Company utilized available borrowing capacity under the Revolver due 2027 and cash on hand to satisfy its repayment obligation for the 1.00% Convertible Notes due 2023. Strong Balance Sheet and Favorable Capital Structure to Support Investments and Pursue Attractive Growth Opportunities DEBT STRUCTURE AND MATURITIES1 • $150.0M Term Loan ($136.9M o/s), pre-determined quarterly installments; balance due August 2027 • $775.0M ($80.3M o/s) Senior Secured Revolver, due August 2027 • $172.5M 1.00% Convertible Senior Notes, due February 20233 • $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 LIQUIDITY1 • Available liquidity, including cash on hand - $507.9M NET LEVERAGE2 ($ millions) Total Debt Outstanding $1,298.4 Less: Cash and Debt Paid as Defined by the Credit Agreement (22.8) Net Debt $1,275.6 LTM Pro-Forma Adj. EBITDA $673.6 Net Debt to Pro-Forma Adj. EBITDA 1.9 x LIQUIDITY ($ millions) Total Revolver Credit Capacity $775.0 Less: Total Revolver Used (including outstanding letters of credit) (87.4) Unused Credit Capacity $687.6 Add: Cash on Hand 22.8 Total Liquidity $710.4 Less: Reserve for 1.00% Convertible Senior Notes, due February 20232,3 (202.5) Total Available Liquidity $507.9 COVENANTS AND RATIOS1 • Consolidated Net Leverage Ratio – 1.9x • Consolidated Secured Net Leverage Ratio – 0.29x versus 2.75x maximum • Consolidated Fixed Charge Coverage Ratio – 5.42x vs. minimum 1.50x

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![](patkq422earningspresenta008.jpg)

Q4 2022 Earnings Presentation 8 APPENDIX

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![](patkq422earningspresenta009.jpg)

Q4 2022 Earnings Presentation 9 NON-GAAP RECONCILIATION RECONCILIATION OF NET INCOME TO EBITDA TO LTM PRO-FORMA ADJUSTED EBITDA ($ in millions) 12/31/2022 Net Income $328.2 + Depreciation & Amortization 130.7 + Interest Expense, net 60.8 + Income Taxes 107.2 EBITDA $626.9 + Stock Compensation Expense 21.8 + Acquisition proforma, transaction-related expenses & other 24.9 Pro-Forma Adjusted EBITDA $673.6 RECONCILIATION OF NET LEVERAGE\* ($ in millions) Total debt outstanding @ 12/31/2022 $1,298.4 Less: cash on hand @ 12/31/2022 (22.8) Net debt @ 12/31/2022 $1,275.6 Pro-Forma Adjusted EBITDA $673.6 Net debt to Pro-Forma Adjusted EBITDA 1.9x Use of Non-GAAP Financial Information \* As defined by credit agreement which includes debt and cash balances -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 previous periods and provide important insights into underlying trends in the business and how management oversees our business operations on a day-to-day basis.

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![](patkq422earningspresenta010.jpg)

Q4 2022 Earnings Presentation 10 www.patrickind.com

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