Patrick Industries had net sales of $921 million in the second quarter, which was a decrease of 38% compared with the year-ago quarter. The slowdown was blamed primarily on a 44% reduction in RV wholesale unit shipments.
The marine segment made up 29% of the company’s revenue at $268 million, which was an 8% decrease compared with the same period in 2022. Estimated wholesale powerboat industry unit shipments decreased 19%. Estimated content per wholesale power unit increased 15% to $5,330.
“We are incredibly proud of our team’s second-quarter efforts, particularly our working capital discipline in alignment with aggressive dealer inventory management by OEMs in the RV industry and our other markets calibrating to the challenging macroeconomic environment,” CEO Andy Nemeth said in a statement.
Cash provided by operations of $178 million in the first six months of 2023 improved by $104 million from $74 million in the first half of 2022 due to an improvement of more than $250 million in working capital monetization, partially offset by a $157 million reduction in net income. Purchases of property, facilities and equipment totaled $16 million in the quarter. On a trailing 12-month basis, free cash flow through the second quarter was $444 million, an increase of 169% compared with $165 million through the second quarter of 2022.
“We made further progress during the quarter through the acquisition of BTI Transport, which launched our Patrick Marine Transport brand, expanding our capabilities as a transportation provider to the leisure lifestyle markets,” Jeff Rodino, president of Patrick, said in the statement.
Long-term debt decreased about $117 million during the second quarter, principally because of net repayments on revolving credit facility of $115 million.
