Patrick Industries, Inc.

Good morning, ladies and gentlemen, and welcome to Patrick Industries' third quarter 2021 earnings conference call. My name is Robert, and I'll be your operator for today's call. At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. And I will now turn the call over to Ms. Julianne Kotowski from Investor Relations. Thank you. You may begin.

Good morning, everyone, and welcome to our call this morning. I am joined on the call today by Andy Nemeth, CEO, Jeff Rodino, President, and Jake Petkovich, 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 2020, 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 dates the forward-looking statements are made. I would now like to turn the call over to Andy Nemitz.

Thank you, Julianne. Good morning, ladies and gentlemen, and thank you for joining us on the call today. Once again, we are pleased to report strong revenue and earnings growth in the quarter, with sustained momentum and backlogs building across the end markets in all of our primary market platforms. Our team's tremendous efforts, dedication, and flexibility in this highly volatile supply chain and labor environment is a testament to their will to take care of our customers and their ingenuity to be able to definitely navigate difficult currents. The partnership with our customers is very real and tangible. Our sales and operations professionals have tirelessly continued to work and communicate very closely with their counterparts at our customers' operations to absorb what is happening real time, manage changing production schedules, and strive to anticipate the needs in this ever-changing dynamic environment. Later in this, our focus on investments in the art culture, infrastructure, and automation tools which will empower our team members to be able to do their jobs better and more efficiently and effectively, create better balance, and scale up and down with our customers' needs and business models. Technology and data-driven solutions are just one of the strategic initiatives we are investing in, and a primary focus of ours to enable and empower our team and our customers to collaborate, analyze opportunities, and improve the quality and delivery of our products and services. This includes AI and machine learning and cloud-based solutions, which transform low-resolution decision-making and data silos into high-resolution collaborative solutions and deliverables. Our people and our critical emphasis on human capital and what it means today for our future success remain a focal point in how we do business. Our community and team member initiatives continue to enhance our Better Together, Better Community philosophy. and afford the opportunity for our team members to pursue philanthropic and volunteer opportunities both at the organizational and brand levels. Additionally, our new community outreach committee was initiated, created, and led entirely by employees and fosters our team's commitment to service to our communities through the development of philanthropic initiatives and volunteer events with a grassroots approach. Our geographic footprint continues to expand both organically and strategically. to meet the needs of the markets we serve. We continue to actively cultivate our acquisition pipeline and evaluate opportunities which complement our portfolio of leisure lifestyle and housing solutions, as well as expand our existing product capabilities and solutions model in other parts of the country to better serve our customer base. Trends in our primary end markets remain very positive with channel restocking needed across all sectors and wholesale demand visibility that points well into 2022 and likely into 2023. While raw material shortages across many different commodities and products are constraining retail currently, retail traffic at the RV and marine dealers remains strong among new and existing buyers, and the benefits of leisure lifestyle are now part of a mainstream narrative which is growing on its own accord. The strong state of the residential housing market continues to ideally position our industrial and manufactured housing business models as viable component solutions in addition to DIY and home improvement activity being extensive and prevalent. The leisure lifestyle markets represented 76% of our revenue in the quarter and continue to be driven by strong consumer demand, traffic, and momentum, which continue to deplete dealer inventory on hand. On the RV side, private campground initiatives continue to develop to accommodate the entry of new demographics into the RV space and are absorbing the overflow from national parks, which continue to remain at capacity. At the same time, federal and state agencies are increasingly looking to accommodate boondocking opportunities, which expand the enjoyment of the RV camping possibilities. For both RV and marine, urban to suburban and rural migration and work-from-anywhere trends and policies are increasingly prevalent, which is also translated into demand for all classes of RVs and boats. In our housing and industrial markets, which together represent approximately 24% of third-quarter revenues, Highly competitive housing demand conditions persist, and the popularity of DIY, repair and remodel, and home improvement trends continues to motivate the housing consumer. The strong end market conditions mentioned once again unlocked increased profitability as we leveraged our fixed cost structure, resulting in improvement in gross and operating margins, operating income, net income, and diluted earnings per share. Our third quarter revenues of $1.1 billion increased 51%, or $360 million, compared to the third quarter of 2020. Our net income increased 54% to more than $57 million, and we earned $2.45 per diluted share. I'll now turn the call over to Jeff Rodino, who will provide further details into our end markets.