Patrick Industries Inc. (NASDAQ:PATK) Q4 2019 Earnings Conference Call - Final Transcript

Feb 13, 2020 • 10:00 am ET

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Patrick Industries Inc. (NASDAQ:PATK) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning, ladies and gentlemen, and welcome to the Patrick Industries, Inc. Fourth Quarter 2019 Earnings Conference Call. My name is John, and I'll be your operator for today's call. [Operator Instructions]

And I will now turn the call over to Ms. Julie Ann Kotowski from Investor Relations. Ms. Kotowski, you may begin.

Executive
Julie Ann Kotowski

Good morning, everyone, and welcome to Patrick Industries' Fourth Quarter 2019 Conference Call. I am joined on the call today by Andy Nemeth, President and CEO; and Josh Boone, CFO. Certain statements made in today's conference call regarding Patrick Industries and its operations may be considered forward-looking statements under the securities laws. There are a number of factors, many of which are beyond the company's control, which could cause the actual results and events to differ materially from those described in the forward-looking statements. These factors are identified in our press releases, our Form 10-K for the year ended 2018 and in our other filings with the Securities and Exchange Commission. We undertake no obligation to update these statements to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law.

I would now like to turn the call over to Andy Nemeth.

Executive
Andy L. Nemeth

Thank you, Julie Ann. Good morning, everyone, and thank you for joining us on the call today. Before I begin my prepared remarks, I'd like to thank our Executive Chairman of the Board and my predecessor and friend, Todd Cleveland, for his leadership and mentorship over the years, both to me personally and to our management team and all of our 7,500-plus team members. I've been fortunate to witness and be a part of Todd's legacy during the past 13 years that he has been a member of the Patrick family, and I'm truly humbled and inspired by his strength and passion for our company, our customers, our communities, our team members and the industries we serve. I look forward to continuing to work with Todd and our Board of Directors, our management team and all of our talented and dedicated team members as we continue our journey together. 2019 marked a year of adaptation and execution for us as it was filled with headwinds, which included significant volatility in our primary markets, fluctuations in commodity prices, weather-related issues that impacted demand in both the RV and Marine markets as well as the ability to set homes in the manufactured housing market and interest rate volatility. In light of these headwinds, we are pleased with our fourth quarter and full year performance and ability to flexibly and nimbly manage our business.

Fourth quarter revenues of $550 million increased 3% versus the prior year despite double-digit wholesale shipment declines due to inventory recalibration in our leisure lifestyle markets. Additionally, we continue to grow organically and increased our content per unit in each market sector on a year-over-year basis. Our fourth quarter 2019 net income was approximately $20 million or $0.86 per diluted share. Full year revenues increased 3%