Patrick Industries, Inc.

Good morning, ladies and gentlemen, and welcome to Patrick Industries' fourth quarter 2021 earnings conference call. My name is Melissa, and I will be your operator for today's call. At this time, all participants are in 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 that this conference is being recorded. I'll now turn the call over to Ms. Julianne Katowski. From Investor Relations, Ms. Gutowsky, 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-end in 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 date 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. As we crossed the finish line for fiscal 2021 and reflected on the environment we and our customers operated in during the year, we remain energized and enthusiastic about the tremendous performance of our team members and many impressive accomplishments of our organization during an incredibly dynamic year. 2021 was strong for us across a wide platform of operational metrics where we meaningfully exceeded historical milestones in revenue, gross margin, operating income, operating margin, operating cash flow, dividends, and business acquisitions, among others. We continue to strategically diversify our leisure lifestyle platform with the addition of key new businesses in marine and marine aftermarket, as well as fortifying our portfolio of RV, MH, and industrial offerings. We completed 10 acquisitions during the year, representing more than $350 million in annualized revenues. We also amended our credit facility and broadened and strengthened our liquidity profile with two separate senior unsecured note offerings, which enhanced our patient capital structure. And while our family has grown to more than 11,000 team members, we've also leveraged the strengths of our culture and talent and grown profitably. While supply chain challenges impacted all major markets in 2021, our teams worked tirelessly in alignment with our customers' demands based on product availability and other factors to flex their schedules and pace and deliver to our end markets in three key areas. First, our strong liquidity profile and cash generation, along with our multi-brand production capacity and bandwidth, buying power, and procurement strength between brands to secure incremental inventory for our customers' production. Second, our continued strategic investment in automation and our information systems, which began in the second half of fiscal 2020, allowed us to further position our teams to adapt to the tight labor market conditions. And third, we invested in human capital initiatives that included enhanced employee benefits and wage programs, cultural alignment and connectivity, heartfelt and purpose-aligned employee-driven philanthropic programs, and focused leadership training and connectivity. These initiatives allowed us to improve the lives and maximize the talents of our people and apply their unique capabilities and tactical and strengths in strategic areas across our programs. 2021 was also a time for us to foster and grow our ESG initiatives as we work to reduce energy and material consumption, identify renewable energy sources, and most importantly, invest in our people and communities. Patrick's 11,000 team members are the rock solid and inspiring platform that helped move our markets in a positive, continually evolving and improving course. And in 2021 was a year in which our Better Together philosophy resonated across our organization, making us a better partner for all of our stakeholders. The support of this team, our suppliers, financial partners, and board of directors helped make 2021 an incredibly successful and exciting year, and also positioned us to be even stronger and more competitive for our customers and shareholders for 2022 and the years to come. We are extremely grateful and humbled by the collective efforts of our team members, who through their creativity, collaboration, and innovation have consistently delivered solutions supporting our customers, markets, communities, and purpose. From a market perspective, the leisure lifestyle markets represented 75% of our revenues in the quarter. The RV and marine markets continue to be driven by strong outdoor recreation trends, which have increased RV and boating activity and resulting demand from both new entrants and existing lifestyle participants. Manufacturer backlogs and lean dealer inventories positioned leisure lifestyle positively in the quarter and into 2022. Our housing and industrial markets replicated the demand strength of the leisure lifestyle markets. and represented approximately 25% of fourth quarter revenues. MH OEM backlogs continued to grow, and MH Fundamentals drove strong results against a backdrop of robust housing demand in tight conditions. Our residential housing and commercial markets were equally strong, bolstered as well by strong big box and retail activity. On the backs of a record wholesale unit shipment year in 2021 of more than 600,000 units in our foundational RV market, and the corresponding strength and tailwinds in our marine and housing and industrial markets, we also produced record financial results in 2021. Our fourth quarter revenues of $1.1 billion increased 49% or $375 million, and our net income for the quarter increased 61% to $61 million, and we earned $2.62 per diluted share. Our full year revenues of $4.1 billion increased 64% or $1.6 billion, Our net income increased 132% to $225 million, and we are $9.63 per diluted share. And I'll turn the call over to Jeff Rodino, who will provide further details into our end markets.