What changed in this filing

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Item 1. Business

2021-02-26 compared with 2020-02-27 · 105 added, 105 removed, 130 unchanged (62% of the section changed)

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Company Overview

Patrick Industries, Inc.

was founded in 1959 and incorporated in the state of Indiana in 1961.

Patrick is a major manufacturer and distributor of component and building products and materials serving original equipment manufacturers (“OEMs”) primarily in the recreational vehicle (“RV”), manufactured housing (“MH”) and marine

The Company also supplies products to adjacent industrial markets, such as kitchen cabinet, high-rise, office and household furniture, fixtures and commercial furnishings, and other industrial markets.

The Company operates through a nationwide network that includes, as of December 31, 2019 , 125 manufacturing plants and 48 warehouse and distribution facilities located in 23 states, China, Canada and the Netherlands.

The Co mpany operates through a nationwide network that includes, as of December 31, 2020, 141 manufacturing plants and 58 warehouse and distribution facilities located in 23 states, China, Canada and th e Netherlands.

The Company operates within two reportable segments, Manufacturing and Distribution, through a nationwide network of manufacturing and distribution centers for its products, thereby reducing in-transit delivery time and cost to the regional manufacturing footprint of its customers.

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The Company’s strategic and capital allocation strategy is to optimally manage and utilize its resources and leverage its platform of operating brands to continue to grow and reinvest in its business.

Through strategic acquisitions, geographic expansion, expansion into new product lines and investment in infrastructure and capital expenditures, Patrick seeks to ensure that its operating network contains capacity, technology and innovative thought processes to support anticipated growth needs, effectively respond to changes in market conditions, inventory and sales levels, and successfully integrate manufacturing, distribution and administrative functions.

Over the last three years, the Company has executed on a number of new product initiatives and invested approximately $651 million in acquisitions, which directly complement our core competencies and existing product lines as well as expand its presence in the marine industry.

The combination of improved economic conditions and demographic trends benefiting the RV, MH and marine industries and the execution of the strategic initiatives identified above, among others, resulted in increases in sales, operating income, net income and cash flows over the last several years.

Through strategic acquisitions, expansion both geographically and into new product lines and investment in infrastructure and capital expenditures, Patrick seeks to ensure that its operating network contains capacity, technology and innovative thought processes to support anticipated growth needs, effectively respond to changes in market conditions, inventory and sales levels, and successfully integrate manufacturing, distribution and administrative functions.

Over the last three years, we have executed on a number of new product initiatives and invested approximately $705 million in acquisitions that directly complement our core competencies and existing product lines as well as expand our presence in our primary end markets.

The Company’s principal executive and administrative offices are located at 107 West Franklin Street, Elkhart, Indiana 46515 and the telephone number is (574) 294-7511;

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Patrick manufactures and distributes a variety of products within its reportable segments including:

Manufacturing

Laminated products for furniture, shelving, walls and countertops

Pre-finished wall and ceiling panels

Decorative vinyl, wrapped vinyl, paper laminated panels and vinyl printing

Drywall and drywall finishing products

Solid surface, granite and quartz countertops

Interior and exterior lighting products

Fabricated aluminum products

Wiring, electrical and plumbing products

Wrapped vinyl, paper and hardwood profile mouldings

Transportation and logistics services

Custom cabinetry

Electronics and audio systems components

Electrical systems components including instrument and dash panels

Cement siding

Slide-out trim and fascia

Raw and processed lumber

Cabinet products, doors, components and custom cabinetry

Fiber reinforced polyester (“FRP”) products

Hardwood furniture

Interior passage doors

Fiberglass bath fixtures and tile systems

Roofing products

Specialty bath and closet building products

Laminate and ceramic flooring

Boat covers, towers, tops, and frames

Softwoods lumber

Interior passage doors

Fireplaces and surrounds

Wiring and wire harnesses

CNC molds and composite parts

Aluminum fuel tanks

Other miscellaneous products

Manufacturing Distribution

Laminated products for furniture, shelving, walls and countertops Pre-finished wall and ceiling panels

Decorative vinyl, wrapped vinyl, paper laminated panels and vinyl printing Drywall and drywall finishing products

Solid surface, granite and quartz countertops Interior and exterior lighting products

Fabricated aluminum products Wiring, electrical and plumbing products

Wrapped vinyl, paper and hardwood profile mouldings Transportation and logistics services

Electrical systems components including instrument and dash panels Electronics and audio systems components

Slide-out trim and fascia Cement siding

Cabinet products, doors, components and custom cabinetry Raw and processed lumber

Hardwood furniture Fiber reinforced polyester (“FRP”) products

Fiberglass bath fixtures and tile systems Interior passage doors

Specialty bath and closet building products Roofing products

Boat covers, towers, tops, and frames Laminate and ceramic flooring

Softwoods lumber Shower doors

Interior passage doors Fireplaces and surrounds

Wiring and wire harnesses Appliances

CNC molds and composite parts Tile

Aluminum and plastic fuel tanks Other miscellaneous products

Slotwall panels and components

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Marine hardware

Treated, untreated and laminated plywood

Primary Markets

Patrick manufactures and distributes its building products and interior decorative component products for use in the four primary markets it serves.

Operating facilities that supply the Company’s products are strategically located in proximity to the customers they serve.

Patrick manufactures and distributes its products in four primary end markets.

Operating facilities that supply our Company’s products generally are strategically located in proximity to the customers they serve.

The Company’s sales by market are as follows:

Marine 14 % 14 %

Industrial 13 % 12 %

Total 100 % 100 %

Recreational Vehicles

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and (2) motorized:

class A (large motor homes), class B (van campers), and class C (small-to-mid size motor homes).

The RV market is primarily dominated by Thor Industries, Inc.

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(“Forest River”) and Winnebago Industries, Inc.

("Winnebago") which combined held 91% of retail market share for towables and 74% for motorized units as reported per Statistical Surveys, Inc.

("SSI") for 2019 .

The RV industry experienced a decline in wholesale unit shipments in 2019 and 2018 following eight straight years of growth as RV OEMs continued to adjust their production levels in tandem with the rebalancing of dealer inventories in the retail marketplace.

According to the Recreation Vehicle Industry Association ("RVIA"), total RV industry wholesale shipments fell 16% in 2019 compared to 2018 , with shipments reaching a total of approximately 406,000 units.

The Company estimates that its mix of RV revenues related to towable units and motorized units is consistent with the overall RV industry production mix.

In 2019 , towable and motorized unit shipments represented approximately 89% and 11%, respectively, of total RV industry wholesale shipments.

The towable sector decreased 16% in 2019 compared to the prior year and the motorized sector decreased 19% per the RVIA.

With estimated retail unit shipments outpacing wholesale unit shipments in 2019, RV dealer inventories declined in 2019.

On the retail side, estimated RV retail unit shipments declined 7% in 2019 compared to 2018.

For the full year 2019, RV dealer inventories declined by more than 50,000 units, which we believe will position the industry to return to a more direct relationship between wholesale unit shipments and retail unit shipments for the upcoming 2020 selling season.

("Winnebago") which combined held 91% of retail market share for towables an d 86% for motorized units for 2020 as reported per Statistical Surveys, Inc.

In the late first quarter and early second quarter of 2020, we temporarily curtailed production at certain of our facilities in alignment with the temporary production shutdowns by our RV OEM customers in response to the COVID-19 pandemic.

In the second half of 2020, OEM production improved sharply in response to a strong increase in retail and wholesale demand for RV units, and our sales to our RV OEM customers correspondingly improved.

According to the Recreational Vehicle Industry Association (the “RVIA”), wholesale industry unit shipments increased 6% in 2020, while RV retail unit sales, according to SSI, increased by 12%.

With RV retail sales outpacing wholesale unit shipments in 2020, dealer inventories, which were already at historically low levels entering 2020, declined by more than 80,000 units in 2020, resulting in dealer inventories at their lowest levels in the last decade.

We estimate that our mix of RV revenues related to towable units and motorized units is consistent with the overall RV industry production mix.

In 2020, according to the RVIA, towable and motorized unit shipments represented approximately 91% and 9%, respectively, of total RV industry wholesale shipments and w holesale unit shipments increased 8% in the towable sector in 2020 compared to the prior year and decreased 13% in the motorized sector.

Recreational vehicle purchases are generally consumer discretionary income purchases, and therefore, any situation which causes concerns related to discretionary income can have a negative impact on this market.

The Company believes that industry-wide retail sales and the related production levels of RVs will continue to be dependent on the overall strength of the economy, consumer confidence levels, equity securities market trends, fluctuations in dealer inventories, the level of disposable income, and other demographic trends.

Demographic and ownership trends continue to point to favorable market growth in the long term, as there is a shift toward outdoor, nature-based tourism activities, with a large segment of the population’s “millennials” and "Gen Xers" embracing this outdoor lifestyle and entering into the RV marketplace as well as a large percentage of new campers from increasingly more diverse groups.

Per the 2019 KOA North American Camping Report, 41% of all campers and 56% of new campers are millennials, while 36% of all campers and 25% of new campers are Gen Xers.

Demographic and ownership trends continue to point to favorable market growth in the long term in the recreational vehicle market, as there is a shift toward outdoor, nature-based tourism activities, with a large segment of the population’s “millennials” and "Gen Xers" embracing this outdoor lifestyle and entering into the RV marketplace as well as an increasing percentage of new campers from more diverse groups.

At the same time, the COVID-19 pandemic has contributed to increased consumer interest in the RV lifestyle.

According to the May and October 2020 KOA North American Camping Reports, based on surveys of North American leisure travelers, camping trips and road trips are viewed as the safest forms of travel activities in the current COVID-19 environment, and spending time outdoors with family is the leading motivating factor to return to traveling among leisure travelers and campers.

Detailed narrative information about the Company’s sales to the RV industry is included in Item 7.

“Management’s Discussion and Analysis of Financial Condition and Results of Operations” (the "MD&A") of this Form 10-K.

The marine industry reflects the similar active, outdoor leisure-based, family-oriented lifestyle that characterizes the RV industry and the Company has increased its focus and expanded its presence in the adjacent marine market through recent acquisitions, particularly within the last three years.

The marine industry reflects the active, outdoor leisure-based, family-oriented lifestyle that characterizes the RV industry and the Company has increased its focus and expanded its presence in this market through recent acquisitions, particularly within the last three years.

Consumer demand in the marine market is generally driven by the popularity of the recreational and leisure lifestyle and by economic conditions.

Based on current available data per SSI, within the powerboat sector, fiberglass units accounted for approximately 38% of retail unit sales, aluminum 29%, pontoon 28% and ski & wake 5% for 2019.

According to the National Marine Manufacturers Association ("NMMA"), per its latest available 2018 U.S.

Recreational Boating Statistical Abstract, it is estimated that there were approximately 12 million registered boats in the U.S.

retail expenditures on boats, engines, accessories, and related costs totaled approximately $41.8 billion in 2018, up approximately 7% from 2017.

The average age of boats currently in use is approximately 25 years compared to an average useful life of 30 years, and the expected number of boats to be retired over the next four years is approximately 1 million, according to NMMA.

Similar to our RV market, the marine industry was impacted by COVID-19 disruptions in 2020 with our plants experiencing temporary shutdowns in the late first quarter and early second quarter of 2020, which were then followed by sharp increases in marine demand in the second half of 2020, which we believe is driven in part by an increased interest in outdoor activities, including marine activities, as a result of the COVID-19 pandemic and its impact on leisure preferences.

According to the National Marine Manufacturers Association ("NMMA"), per its 2019 U.S.

Recreational Boating Statistical Abstract (the "Abstract"), it is estimated that there were approximately 12 million registered boats in the U.S.

retail expenditures on boats, engines, accessories, and related costs totaled approximately $43.1 billion in 2019, up approximately 3% from 2018 as stated in the Abstract.

The Company’s sales to the marine industry are primarily focused on the powerboat sector of the market which is comprised of four main categories:

fiberglass, aluminum, pontoon and ski & wake.

Based on current available data per SSI, marine powerboat retail unit shipments decreased 4% in 2019 compared to 2018, while marine wholesale unit shipments decreased approximately 13% in 2019 compared to 2018, marking the first year of declines in retail and wholesale unit shipments after eight consecutive years of growth in new boat shipments.

Detailed narrative information about the Company’s sales to the marine industry is included in the MD&A of this Form 10-K.

fiberglass, aluminum fishing, pontoon and ski & wake.

Based on current available data per SSI through December 2020, within the powerboat sector for 2020, fiberglass units accounted for approximately 38% of retail unit sales, aluminum 27%, pontoon 29% and ski & wake 6%.

Based on current available data per SSI through December 2020, marine powerboat retail unit shipments increase d 15% in 2020 compared to 2019, while marine wholesale unit shipments decreased approximatel y 14% in 2020 compared to 2019, resulting in historically low marine dealer inventories.

Additional information about the Company’s sales to the marine industry is included in the MD&A of this Form 10-K.

Manufactured Housing

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Although wholesale unit shipments have increased in the MH industry from a low of approximately 49,800 units in 2009 to 94,000 units in 2020, they are still trending well below historical levels.

The Company believes there is significant upside potential for this market in the long term driven by pent-up demand, multi-family housing capacity, improving consumer credit and financing conditions, residential housing market conditions, higher consumer confidence levels, increased affordability and quality, demographic trends such as first time home buyers and those looking to downsize, new home pricing, and improved consumer savings levels.

The Company believes there is upside potential for this market in the long term driven by pent-up demand, multi-family housing capacity, improving consumer credit and financing conditions, residential housing market conditions, higher consumer confidence levels, increased affordability and quality, demographic trends such as first time home buyers and urban-to-suburban trends, new home pricing, and improved consumer savings levels.

Factors that may favorably impact production levels further in this industry include improving quality credit standards in the residential housing market, new jobs growth, consumer confidence, favorable changes in financing regulations, a narrowing in the difference between interest rates on MH loans and mortgages on traditional residential "stick-built" housing, and any improvement in conditions in the asset-backed securities markets for manufactured housing loans.

In addition, there have been changes in financial regulations, including changes to the Dodd-Frank Wall Street Reform Act, in efforts to ease the regulatory burden on smaller financial institutions, as well as ongoing MH loan program initiatives by Fannie Mae, which in turn are expected to increase MH loan availability and reduce the total cost of MH borrowing, with a potential resulting increase in MH demand.

Detailed narrative information about the Company’s sales to the MH industry is included in the MD&A of this Form 10-K.

The MH industry was impacted by disruptions related to the COVID-19 pandemic in 2020, which resulted in plant shutdowns in the late first quarter and early second quarter of 2020, followed by a recovery that, compared to our RV and marine end markets, emerged more slowly as a result of MH OEM labor and supply disruptions that did not begin to subside until late 2020.

In addition, MH loan program initiatives by Fannie Mae are expected to increase MH loan availability and reduce the total cost of MH borrowing, with a potential resulting increase in MH demand.

Additional information about the Company’s sales to the MH industry is included in the MD&A of this Form 10-K.

Industrial Markets

The Company estimates that approximately 60% of its industrial net sales in 2019 were associated with the U.S.

We estimate that approximately 60% of our industrial net sales in 2020 were associated with the U.S.

residential housing market.

The Company believes that there is a direct correlation between the demand for its products in this market and new residential housing construction and remodeling activities.

Patrick's sales to the industrial market generally lag new housing starts by four to six months and will vary based on differences in regional economic prospects.

We believe that there is a direct correlation between the demand for our products in this market and new residential housing construction and remodeling activities.

Patrick's sales to the industrial market generally lag new housing starts by four to six months as our industrial products are generally among the last components installed in new unit construction and will vary based on differences in regional economic prospects.

Many of Patrick's core manufacturing products are also utilized in the kitchen cabinet, high-rise, office and household furniture, hospitality, and fixtures and commercial furnishings markets.

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Additionally, other residential and commercial segments have been less vulnerable to import competition, and therefore, provide opportunities for increased sales penetration and market share gains.

Over the past three years, the residential housing market in particular has shown signs of improvement across the country and that trend is expected to continue in 2020.

Detailed narrative information about the Company’s sales to the industrial markets is included in the MD&A of this Form 10-K.

Over the past three years, the residential housing market in particular has benefited from a low interest rate environment and tight housing market conditions across the country, and that trend is expected to continue in 2021.

Additional information about the Company’s sales to the industrial markets is included in the MD&A of this Form 10-K.

Strategic Acquisitions

The Company is focused on driving growth in each of its primary markets through the acquisition of companies with strong management teams having a strategic fit with Patrick’s core values, business model and customer presence, as well as additional product lines, facilities, or other assets to complement or expand its existing businesses.

The Company is focused on driving growth in its primary markets through the acquisition of companies with strong management teams having a strategic fit with Patrick’s core values, business model and customer presence, as well as additional product lines, facilities, or other assets to complement or expand its existing businesses.

The Company may explore strategic acquisition opportunities that are not directly tied to the four primary markets it serves in order to further leverage its core competencies in manufacturing and distribution and to diversify its end market exposure and presence.

In 2020, the Company invested approximately $307 million in acquisitions and over the last three years has completed approximately $703 million of acquisitions.

See Note 4 of the Notes to Consolidated Financial Statements for a description of acquisitions completed by the Company in 2019, 2018 and 2017.

See Note 4 of the Notes to Consolidated Financial Statements for further discussion of acquisitions completed by the Company in 2020, 2019 and 2018.

The RV, MH, marine and industrial markets are highly competitive, both among manufacturers and the suppliers of various components.

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The 45,000 square foot facility includes a 25,000 square foot showroom devoted to the display of products, capabilities and services offered by each of Patrick’s business units, in addition to offices and conference rooms.

The Company’s specialized team of designers, engineers and graphic artists works with RV, MH, marine and industrial customers to meet their creative design and product needs, including creating new styles and utilizing new colors, patterns, products, and wood types for panels and mouldings, cabinet doors, furniture, lighting and other products.

The Company’s specialized team of designers, engineers and graphic artists works with RV, MH, marine and industrial customers to meet their creative design and product needs, including creating new styles and utilizing new colors, patterns, products, and materials for panels and mouldings, cabinet doors, furniture, lighting and other products.

Other services provided at The Studio include product development, 3D CAD illustration, 3D printing, photography and marketing.

Marine Studio

The Company's Marine Studio, which was opened in February 2020 and is located in Sarasota, Florida, is a comprehensive marine studio showroom, design and engineering center, which provides full engineering and integrated design solutions for our marine customers.

The Company's Marine Studio, which was opened in February 2020 and is located in Sarasota, Florida, is a comprehensive marine studio showroom, design and engineering center, which provides engineering and integrated design solutions for our marine customers.

The 14,000 square foot facility includes a showroom that displays the Company's marine products as well as the marine design and engineering capabilities and services offered by our marine businesses.

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The Company strives to be the supplier of choice for its customers by elevating the customer purchasing experience with expert product line managers, and support staff and strategic partnerships for each operating brand, which help drive efficiency and maximize value for its customers.

Patrick has no material licenses, franchises, or concessions and does not conduct significant research and development activities.

Patrick has no material licenses, franchises, or concessions and does not conduct material research and development activities.

Marketing and Distribution

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The Company generally maintains supplies of various commodity products in its warehouses to ensure that it has product on hand at all times for its distribution customers.

The Company purchases a majority of its distribution segment products in railcar, container, or truckload quantities , which are warehoused prior to their sale to customers.

Approximatel y 12%, 15% and 19% of the Company's distribution segment’s sales were from products shipped directly from the suppliers to Patrick customers in 2019, 2018 and 2017, respectively.

Typically there is a one to two-week period between Patrick receiving a purchase order and the delivery of products to its warehouses or customers and, as a result, the Company has no significant backlog of orders.

The Company purchases a majority of its distribution segment products in railcar, container, or truckload quantities , which are warehoused prior to their sale t o customers.

Approximatel y 12 %, 1 2%, 15% of the Company's distribution segment’s sales were from products shipped directly from the suppliers to Patrick customers in 2020, 2019, 2018, respectively.

In periods of declining market conditions, customer order rates can decline, resulting in less efficient logistics planning and fulfillment and thus increasing delivery costs due to increased numbers of shipments with fewer products in each shipment.

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Patrick has arrangements with certain suppliers that specify exclusivity in certain geographic areas, pricing structures and rebate agreements among other terms.

Raw materials are primarily commodity products, such as lauan, gypsum , particleboard and other lumber products, aluminum, resin, fiberglass and overlays, among others which are available from many suppliers.

Raw materials are primarily commodity products, such as lauan, gypsum , particleboard and other softwood and hardwood lumber products, aluminum, copper, plastic resin, fiberglass and overlays, among others which are available from many suppliers.

Our customers do not maintain long-term supply contracts, and therefore, the Company bears the risk of accurate forecasting of customer orders.

Its sales in the short-term could be negatively impacted in the event any unforeseen negative circumstances were to affect its major suppliers.

Our sales in the short-term could be negatively impacted in the event any unforeseen negative circumstances were to affect our major suppliers.

In addition, demand changes in certain market sectors can result in fluctuating costs of certain more commodity-oriented raw materials and other products that are utilized and distributed.

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Select products are subject to various legally binding or voluntary standards.

For example, the composite wood substrate materials that Patrick uses to produce products for its customers in the RV marketplace have been certified as to compliance with applicable emission standards developed by the California Air Resources Board (“CARB”).

For example, the composite wood substrate materials that Patrick utilizes in the production process in the RV marketplace have been certified as to compliance with applicable emission standards developed by the California Air Resources Board (“CARB”).

All suppliers and manufacturers of composite wood materials are required to comply with the current CARB regulations.

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Seasonal industry trends in the past several years have included the impact related to the addition of major RV manufacturer open houses for dealers in the August-September timeframe and marine open houses in the December-February timeframe, resulting in dealers delaying certain restocking purchases until new product lines are introduced at these shows.

In addition, recent seasonal industry trends have been, and future trends may be, different than in prior years due to the impact of volatile economic conditions, interest rates, access to financing, cost of fuel, national and regional economic conditions and consumer confidence on retail sales of RVs and marine units and other products for which the Company sells its components, as well as fluctuations in RV and marine dealer inventories, increased volatility in demand from RV and marine dealers, the timing of dealer orders, and from time to time, the impact of severe weather conditions on the timing of industry-wide wholesale shipments.

At December 31, 2019 , we had approximately 7,500 employees.

The Company believes its relations with its employees are good.

The Company is not subject to any collective bargaining agreements with its employees.

In addition, recent seasonal industry trends have been, and future trends may be, different than in prior years due to the impact of COVID-19, volatile economic conditions, interest rates, access to financing, cost of fuel, national and regional economic conditions and consumer confidence on retail sales of RVs and marine units and other products for which the Company sells its components, as well as fluctuations in RV and marine dealer inventories, increased volatility in demand from RV and marine dealers, the timing of dealer orders, and from time to time, the impact of severe weather conditions on the timing of industry-wide wholesale shipments.

Human Capital Management

Our people are the heart of our business, and we allocate substantial resources to foster the well-being, success and growth of our team members in an inclusive and diverse environment which we believe is fundamental to our values and our service to our customers.

At December 31, 2020, our team members totaled 8,700, of which 85% are hourly team members who serve our OEM customers by producing and distributing products in our RV, marine, MH and industrial end markets, and 15% who are salaried employees who manage the resources, capital allocations, business decisions, and customer relationships of our end markets.

The majority of our team members work in our facilities to produce or distribute products for our customers.

Our investment in human capital resources focuses on this environment to ensure their well-being and success.

Our primary commitment to our team members in the production environment is to their safety, well-being and progress, and in this regard our human capital management programs focus on the following, in addition to our health care insurance and other employment benefits:

• Free assistance programs available to all team members and their families to address mental health and others matters which arise, which we believe are essential during the unique pressures and uncertainties during the COVID-19 pandemic;

• Tuition reimbursement programs available to all team members as they pursue educational opportunities;

• Leadership programs available to all employees that are designed to foster leadership and communication skills to advance team members to the next stage of their careers;

• Job safety analysis, which identifies risks unique to each production environment, training and empowering our team members to mitigate risks and develop workplace best practices;

• OSHA preparedness, which involves site specific training development to educate and enable our team members to work safely and effectively;

• Industrial hygiene audits and testing, ensuring that our team members work in healthy environments with respect to air quality and noise reduction;

• Machine guarding and work area audits, which identify mechanical and non-mechanical improvements in the safety and well-being of the production environment;

• Train-the-trainer programs, which foster best-practice operational techniques for our team members to advance their capabilities to operate our facilities in the safest and most effective manner;

• Site-specific training development, which tailors customized training and consulting to the unique needs of the production environment;

• Ergonomic assessments for all team members, which accommodate each individual to work in the most effective and comfortable manner.

Our success is dependent on our ability to hire, retain, and engage highly qualified team members who serve our customers.

In this regard, we aspire to be a merit-based organization that is inclusive and diverse, building a culture where our team members feel they belong.

Our leadership development programs bring a diverse and energetic source of talent to lead the future of our organization, and our recruitment efforts strive to foster an inclusive culture that we believe strengthens our organization and our ability to serve our customers.

Executive Officers of the Company

The following table sets forth our executive officers as of January 1, 2021:

Executive Chairman of the Board

President and Chief Executive Officer

Executive Vice President-Sales and Chief Sales Officer

Executive Vice President-Operations and Chief Operating Officer

Vice President-Finance, Chief Financial Officer and Secretary-Treasurer

Executive Vice President-Human Resources and Chief Human Resources Officer

Officer Position Age

Cleveland Executive Chairman of the Board 52

Nemeth President and Chief Executive Officer 51

Rodino Executive Vice President-Sales and Chief Sales Officer 50

Ellis Executive Vice President-Operations and Chief Operating Officer 46

Petkovich Executive Vice President-Finance, Chief Financial Officer, and Treasurer

Blosser Executive Vice President-Human Resources and Chief Human Resources Officer 54

Cleveland was appointed Executive Chairman of the Board of the Company in January 2020.

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by Patrick in May 2007.

Cleveland has over 29 years of manufactured housing, recreational vehicle, and industrial experience in various leadership capacities.

Cleveland has over 30 years of manufactured housing, recreational vehicle, marine and industrial experience in various leadership capacities.

Nemeth was appointed Chief Executive Officer of the Company in January 2020.

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Nemeth was the Executive Vice President of Finance and Chief Financial Officer from May 2004 to December 2015, and Secretary-Treasurer from 2002 to 2015.

Nemeth has over 28 years of manufactured housing, recreational vehicle, and industrial experience in various financial and managerial capacities.

Nemeth has over 29 years of manufactured housing, recreational vehicle, marine and industrial experience in various financial and managerial capacities.

Rodino was appointed Chief Sales Officer of the Company in September 2016.

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Prior to that, he was the Chief Operating Officer of the Company from March 2013 to September 2016, and Vice President of Sales for the Midwest from August 2009 to December 2011.

Rodino has over 26 years of experience in serving the recreational vehicle, manufactured housing and industrial markets.

Rodino has over 27 years of experience in serving the recreational vehicle, marine, manufactured housing and industrial markets.

Ellis was appointed Executive Vice President of Operations and Chief Operating Officer of the Company in September 2016.

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Ellis served as Vice President of Global Sales and Marketing from 2007 to 2015 at Atwood Mobile Products.

Ellis has over 23 years of experience serving the recreational vehicle, manufactured housing, industrial and automotive markets.

Boone was appointed Vice President of Finance, Chief Financial Officer and Secretary-Treasurer of the Company in January 2016.

He was elected an officer in May 2016.

Boone joined the Company as its Director of Corporate Finance in July 2014.

Prior to his role at Patrick, Mr.

Boone served as Chief Financial Officer for Pretzels, Inc.

from 2012 to 2014 and served in several leadership positions in finance and accounting at Brunswick Corporation from 2007 to 2012.

Boone has over 15 years of experience serving the manufacturing, industrial and marine industries in various financial and managerial capacities.

Ellis has over 24 years of experience serving the recreational vehicle, marine, manufactured housing, industrial and automotive markets.

Petkovich was appointed as Executive Vice President of Finance, Chief Financial Officer, and Treasurer of the Company in November 2020.

Prior to joining Patrick, Mr.

Petkovich served as Managing Director in the Leveraged Finance Group of Wells Fargo Securities and predecessor Wachovia Securities from 2004 to 2020, performing in various senior leadership roles responsible for leading, underwriting, structuring and arranging financing solutions to support issuers’ access to the capital markets for acquisition financings, recapitalizations, refinancings and restructurings.

Blosser was appointed Executive Vice President of Human Resources and Chief Human Resources Officer of the Company in May 2016.

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Blosser has over 32 years of operations and human resource experience in various industries.

Blosser retired from the Company on January 29, 2021.

Website Access to Company Reports

We make available free of charge through our website, www.patrickind.com , our Annual Report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and all amendments to those reports as soon as reasonably practicable after such material is electronically filed with or furnished to the SEC.

The charters of our Audit, Compensation, and Corporate Governance and Nominations Committees, our Corporate Governance Guidelines, our Code of Ethics and Business Conduct, and our Code of Ethics Applicable to Senior Executives are also available on the “Corporate Governance” portion of our website.

The charters of our Audit, Compensation, and Corporate Governance and Nominations Committees, our Corporate Governance Guidelines and our Code of Ethics and Business Conduct are also available on the “Corporate Governance” portion of our website.

Our website and the information contained therein or incorporated therein are not intended to be incorporated into this Annual Report on Form 10-K.

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What changed 10-K

Item 1. Business