Marine, RV and housing components manufacturer and distributor Patrick Industries last week published results for the fiscal 2023 first quarter.
The company reported a $900 million loss in net sales during the quarter, a 33% decline from the prior-year quarter. Gross profit also declined, shrinking 34% to $194 million from the year-ago quarter. Net income decreased 73% to $30 million.
“Our first quarter performance continues to demonstrate the strength of our strategic diversification and the resilience of our overall business model as we generated solid first quarter profitability despite a slowing economy and a 54% reduction in RV wholesale unit shipments,” CEO Andy Nemeth said in a statement. “We continued to focus on capital allocation and growth strategies, including growing our organic market share while positioning Patrick to remain a leading component solutions provider to our customers.”
Patrick’s marine segment was a bright spot, contributing 31% of revenue in the quarter. The segment saw significant revenue growth of 25% ($276 million) over the year-ago quarter thanks to a 14% increase in wholesale powerboat shipments.
“We remain optimistic about the long-term outlook for all our end markets and believe we are well-positioned to not only take advantage of strategic opportunities that present themselves in the short term, but to also pivot and drive utilization and capitalize on opportunities that arise when our markets stabilize and rebound,” Nemeth said in the statement. “We understand the headwinds we face as elevated interest rates, inflation and macroeconomic uncertainty have weighed on our end markets. We are confident in the strength of our balance sheet, liquidity and our favorable long-term capital structure with no material debt maturities until 2027.”
