Patrick Industries, Inc.

Good morning, ladies and gentlemen, and welcome to Patrick Industries' first quarter 2024 earnings conference call. My name is Daryl, and I'll be your operator for today's call. At this time, all participants are in a listen-only mode. The 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. And I will now turn the call over to Mr. Steve O'Hara, Vice President of Investor Relations. Mr. O'Hara, you may begin.

Good morning, everyone, and welcome for our call this morning. I'm joined on the call today by Andy Nemeth, CEO, Jeff Rodino, President, RV, and Annie Rader, CFO. Kip Ellis, President, PowerSports Technology and Housing, and Matt Feiler, SVP Finance, is also here for Q&A. 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 of 2023, 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 Niemann.

Thank you, Steve. Good morning, everyone, and thank you for joining us on the call today. As we finish the first quarter of the 2024 fiscal year, Patrick remains in a position of strength as a result of the work our team has put in day in and day out and the strong performance and results that we have generated while diligently managing our business and balance sheet. Our success would not be possible without the dedication of our incredible team members. and I thank them for their tremendous efforts and focus. Our family of trusted, independent brands building better component solutions is guiding our model as we strive to be the supplier of choice in the outdoor enthusiast and housing markets. Our creative growth strategy has evolved over the years through our team's relentless pursuit of great customer service and building innovative, high-quality product solutions. We have become a key supplier to RV, marine, manufactured housing, and now PowerSports OEMs alike, and we believe our ability to scale and adapt to our customers' needs is unmatched. As we have further refined our business objectives, we identified and executed on the appeal of a more diversified end market ecosystem, which is proving resilient, especially in these uncertain market conditions. Our first quarter acquisition of Sport Tech further solidifies a foundation in the PowerSports industry and serves as another platform for future strategic and organic growth. We are excited by the promising potential in this space, particularly in the utility side-by-side segment on which Sport Tech focuses. The Sport Tech acquisition brings in a team aligned with our purpose as passionate outdoor enthusiasts dedicated to creating highly engineered, innovative products in close partnership with our valued OEM customers. We are thrilled with the initiatives the Patrick and Sport Tech teams have already set in motion and the future growth potential we see ahead of us. Examples of our drive to immediately deliver synergies post-closing involves our team at Rockford Fosgate hosting Sport Tech to showcase the benefits of being connected to the Patrick ecosystem and how our businesses are able to collaboratively leverage their processes and expertise, bringing additional value to their respective customers. We also invited our key plastics, metals, and harness and dash businesses to Sport Tech for a brainstorming session. including a production line walkthrough to identify avenues of opportunity between business units, their best practices, and potential areas for collaboration, including logistics, sourcing, and material synergies. While collaboration remains a crucial tenet of our success through our business model, we strive to maintain each business's individuality and passion as they drive forward, keeping the entrepreneurial spirit alive. We believe this strategy is key to our future success and empowers our businesses and the collective Patrick family to achieve new heights. We continue to seek out entrepreneurial businesses with strong culturally aligned leadership teams, solid organic growth prospects, and a creative margins. Our ability to execute at the operational level at our brands exemplifies our balance sheet and working capital management for which we also drive accountability. Our team has done a great job of working with our customer partners to manage our inventories and ensure we also remain focused on delivering strong cash flows while maintaining a disciplined leverage position. Our inventories are balanced and well-maintained, and our leverage position has already improved from just two months ago following the Sport Tech acquisition, the largest acquisition in the company's history. Now moving on to our financial results. Our first quarter revenues increased 4% to $933 million. And on a trailing 12-month basis, our consolidated revenues were approximately $3.5 billion. Our net income in the first quarter improved 16% to $35 million, and net income per diluted share was $1.59. Excluding acquisition transaction costs and purchase accounting adjustments, our first quarter adjusted net income was $39 million, and adjusted diluted earnings per share grew 31% to $1.79. Our team continues to anticipate and adjust to market and macroeconomic forces through the management of our highly variable cost structure, and our model performed well during a seasonally slow period, also as a result of acquisitions completed over the past year, operational efficiencies gained through automation and better throughput, and our diversification, among other items as shown by our continued solid margin performance. Excluding acquisition transaction costs and purchase accounting adjustments in both periods, Operating margin improved 70 basis points to 7.0%, and adjusted EBITDA margin increased 110 basis points to 11.9% in the quarter. On an administrative level, I'd like to welcome Andy Rader, our new CFO, who joined us in March. Andy has tremendous experience in the outdoor enthusiast space and brings his impressive skills and expertise into the Patrick family. We're pleased to have Andy on our team supporting our business's growth objectives while ensuring our balance sheet and financial foundation remain strong. I'd also like to thank Matt Filer, who filled the interim CFO role with confidence in execution and helped us successfully deliver on our operational and strategic plans. Matt has resumed his role as Senior Vice President of Finance, and we look forward to his continued contributions. I'll now turn the call over to Jeff, who will highlight the quarter and provide more detail on our end markets.