What changed in this filing

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Item 1. Business

2025-02-20 compared with 2024-02-29 · 131 added, 85 removed, 194 unchanged (53% of the section changed)

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Company Overview

Patrick is a leading component solutions provider for the recreational vehicle ("RV"), marine, manufactured housing ("MH") and various industrial markets – including single and multi-family housing, hospitality, institutional and commercial markets.

The Company operates through a nationwide network that includes, as of December 31, 2023, 179 manufacturing plants and 62 warehouse and distribution facilities located in 23 states, with a small presence in Mexico, China and Canada.

Patrick is a leading component solutions provider for the recreational vehicle ("RV"), marine, powersports, manufactured housing ("MH") and various industrial markets – including single and multi-family housing, hospitality, institutional and commercial markets.

The Company operates through a nationwide network that includes, as of December 31, 2024, approximately 179 manufacturing plants and 47 warehouse and distribution facilities located in 25 states, with a small presence in Mexico, China and Canada.

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.

The Manufacturing and Distribution segments accounted for 75% and 25%, respectively, of the Company’s consolidated net sales for 2023.

The Manufacturing and Distribution segments accounted for 74% and 26%, respectively, of the Company’s consolidated net sales for the year ended December, 31, 2024.

Financial information about these operating segments is included in Note 17 "Segment Information" of the Notes to Consolidated Financial Statements included in this Annual Report on Form 10-K (the "Form 10-K") and incorporated herein by reference.

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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 completed acquisitions for approximately $804 million in total consideration that directly complement our core competencies and existing products, expand our presence in our primary end markets, and position us to enter new end markets.

Over the last three years, we have executed on a number of new product initiatives and completed acquisitions for approximately $696 million in total consideration that directly complement our core competencies and existing products, expand our presence in our primary end markets, and position us to opportunistically enter into adjacent end markets or product categories.

Patrick believes that returning capital to shareholders is an important part of its capital allocation strategy, and during 2024 we returned $55 million to shareholders through our regular quarterly dividend and opportunistic share repurchases.

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www.patrickind.com .

Information on our website is not incorporated in this Annual Report on Form 10-K.

Major Product Lines

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Aluminum and plastic fuel tanks Marine hardware and accessories

Slotwall panels and components Other miscellaneous products

Thermoformed shower surrounds

Slotwall panels and components RV awnings, windows, fiberglass siding and roofing

RV painting Marine windshields

Thermoformed shower surrounds Other miscellaneous products

Fiberglass and plastic components including front and rear caps and marine helms

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Protective covers for boats, RVs, aircraft, and military and industrial equipment

Windshield and wiper systems

Roofs/canopies

Integrated door systems

Fender flares and rear panels

Other miscellaneous products

Primary Markets

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

Patrick manufactures and distributes its products for five primary end markets.

Our operating facilities generally are strategically located in proximity to the customers they serve.

The Company’s net sales by market are as follows:

Previously, our sales to the powersports end market were included in the Company’s marine end market sales.

Effective with the first quarter of 2024, powersports net sales are being reported separately after the January 2024 acquisition of Sportech, LLC (“Sportech”), as disclosed in Note 2 "Revenue Recognition" of the Notes to Consolidated Financial Statements.

The Company’s net sales by end market are as follows:

Marine 15 % 23 %

Powersports 10 % 4 %

Industrial 13 % 14 %

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

("Winnebago") which combined held approximately 86% of retail market share for towables an d 83% for motorized units for 2023 as reported per Statistical Surveys, Inc.

("Winnebago") which combined held approximately 86% of retail market share for towables and 83% for motorized units for 2024 as reported per Statistical Surveys, Inc.

We believe there has been substantial growth over the past several years in the consumer’s affinity for the Outdoor Enthusiast lifestyle.

As more people see the benefits of enjoying the outdoors with families and friends, there should be a positive impact on long-term demand in the RV market.

We also are optimistic about the near-term outlook for the RV market, which we believe bottomed in 2023 after a period of sharp declines in OEM production in late 2022 and 2023 as a result of decreased retail demand and dealer inventory reductions.

We also are optimistic about the near-term outlook for the RV market, which we believe bottomed in 2023 after a period of sharp declines in OEM production.

Following a dealer inventory restocking in the first half of 2024, OEMs reduced production slightly in the second half of 2024 as retail demand decreased, with dealers managing inventory levels and the OEMs demonstrating operating discipline to maintain a balanced inventory channel for the long-term health and stability of the industry.

Our analysis suggests that dealer inventory levels are currently well below historical norms and will need to be replenished when retail demand recovers.

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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 2023, according to the Recreation Vehicle Industry Association ("RVIA"), towable and motorized unit shipments represented approximately 85% and 15%, respectively, of total RV industry wholesale shipments with wholesale unit shipments decreasing 39% in the towable sector and decreasing 21% in the motorized sector in 2023 compared to the prior year.

In 2024, according to the Recreation Vehicle Industry Association ("RVIA"), towable and motorized unit shipments represented approximately 90% and 10%, respectively, of total RV industry wholesale shipments with wholesale unit shipments increasing 12% in the towable sector and decreasing 24% in the motorized sector in 2024 compared to the prior year.

Recreational vehicle purchases are generally consumer discretionary income purchases, and therefore, any situation which causes concerns related to discretionary income may have a negative impact on the RV 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 for the long term in the RV market, as we believe that there has been a shift toward outdoor, nature-based tourism activities in a post-COVID environment, with younger and more diverse campers across different socio-economic groups.

According to the 2023 Kampgrounds of America, Inc.

("KOA") North American Camping and Outdoor Hospitality Report, based on surveys of North American leisure travelers, 58.5 million households went camping in 2022, an increase from 57 million in 2021 and 42 million in 2019.

Of these camping households, 15.2 million went on at least one RV trip during 2022, compared to 14.8 million in 2021 and 11.3 million in 2019.

At the same time, the proportion of campers in younger demographic groups has been steadily increasing over the last several years, with "millennials" and "Gen Zers" representing 71% of campers in 2022, up from 53% in 2021 and 44% in 2019.

Additionally, according to the 2023 KOA report, 28% of 2022 camper households reported household income of over $100,000.

Demographic and ownership trends continue to point to favorable market growth for the long term in the RV market, as we believe that the shift toward outdoor, nature-based tourism activities has continued, despite the loss of many first time campers who had contributed to a significant increase in camping participation during the COVID-19 pandemic.

Based on data from the 2024 Kampgrounds of America, Inc.

("KOA") North American Camping and Outdoor Hospitality Report, utilizing surveys of North American leisure travelers, camping remains popular, with annual camping households of 54 million in 2023 which, while a decrease from 58 million in 2022, is well above pre-pandemic levels of 39 million in 2018 and 42 million in 2019.

Younger campers (Millennials and GenZers) still represent an important camper demographic group despite a decrease in participation rates since the peak of the pandemic, with 48% of annual campers and 49% of new campers from these groups.

Additionally, according to the 2024 KOA report, 25% of 2023 camper households reported

household income of over $100,000.

While this percentage was down from 28% in 2022, these higher-income households still represented a significantly greater proportion of campers than before the COVID-19 pandemic.

Following a similar pattern as overall camping participation, 13.2 million households reported taking at least one RV trip in 2023, which was lower than in 2022 but well above pre-pandemic levels of 9.4 million in 2018 and 11.3 million in 2019.

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.

We believe that the marine market reflects the active, outdoor leisure-based, family-oriented lifestyle, similar to our RV end market, and the Company has increased its focus and expanded its presence in this market through recent acquisitions, particularly within the last three years.

We believe that the marine market reflects the active, outdoor enthusiast-based, family-oriented lifestyle, similar to our RV and powersports end markets, and the Company has increased its focus and expanded its presence in this market through recent acquisitions.

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

The sharp increase in demand for powerboats, which is our primary marine market, experienced during the COVID-19 pandemic continued through 2021 and into 2022, although supply chain constraints limited wholesale unit shipments which resulted in higher order backlogs and historically low dealer inventory levels, during the first half of 2022.

While these supply chain constraints improved during the second half of 2022, OEM production declined slightly in 2023 as concerns relating to elevated interest rates, inflation and overall economic uncertainties dampened retail demand and led marine dealers to reduce inventory levels.

The Company's marine revenue mix is slightly more concentrated toward higher dollar units, particularly the fiberglass and ski and wake segments, which began to see more pronounced softness in market demand in the second half of 2023 compared to the broader marine market.

The powerboat sector, which is our primary marine market, has experienced a down cycle since mid-2023, resulting in continued softness particularly in our higher-engineered ski/wake and pontoon categories, where we maintain a significant market presence.

After a slight decrease in 2023, OEM production declined further in 2024 as concerns relating to elevated interest rates, inflation and overall economic uncertainties dampened retail demand and led marine dealers to reduce inventory levels.

The Company's marine revenue mix is slightly more concentrated toward higher dollar units, particularly the pontoon and ski and wake segments, which have seen more pronounced softness in market demand beginning in the second half of 2023 and throughout 2024 compared to the broader marine market.

We expect to continue to feel the effects of our revenue mix through the first half of 2025.

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According to the National Marine Manufacturers Association (“NMMA”), per its 2023 U.S.

Recreational Boating Statistical Abstract (the "Abstract"), U.S.

retail expenditures on boats, engines, accessories, and related costs totaled approximately $59.3 billion in 2022, up approximately 4.4% from 2021.

Recreational Boating Statistical Abstract (the "Abstract"), total U.S.

retail expenditures on boats, engines, accessories, and related costs fell 2.6% to $57.7 billion in 2023 compared to 2022.

Based on data from the Abstract, we estimate that the average age of pre-owned powerboats sold during 2023 was approximately 23 years compared to an average useful life of 30 years.

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Based on current available data per SSI through December 2024, within the powerboat sector for 2024, fiberglass units a ccounted for approximately 34% of retail unit sales, aluminum 29%, pontoon 32% and ski & wake 5%.

In addition, per SSI, marine powerboat retail unit shipments decreased approximately 5% in 2023 compared to 2022, while marine wholesale unit shipments, according to Company estimates based on NMMA data, increased approximatel y 2% in 2023 compared to 2022.

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

In addition, per SSI, marine powerboat retail unit shipments decreased approximately 8% in 2024 compared to 2023, while marine wholesale unit shipments, according to Company estimates based on NMMA data, decreased approximatel y 25% in 2024 compared to 2023.

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

Through acquisitions completed in recent years, the Company entered the powersports end market.

Powersports is a category of motorsports which includes vehicles such as motorcycles, all-terrain vehicles ("ATVs"), side-by-sides, snowmobiles, scooters, golf carts and other personal transportation vehicles, and other related categories.

Previously, our sales to the powersports end market were included in the Company’s marine end market sales.

Effective with the first quarter of 2024, powersports net sales are being reported separately after the January 2024 acquisition of Sportech, as disclosed in Note 2 "Revenue Recognition" of the Notes to Consolidated Financial Statements.

Our powersports business is primarily focused on the utility and premium segments of the side-by-side market, which have been outperforming the more discretionary recreational segment.

We also participate in the motorcycle and golf cart segments of the market.

OEMs and dealers are actively managing field inventory levels to align with retail demand and in an effort to update units held in dealer inventories.

We believe that our portfolio of brands and products is well-positioned to benefit from future market growth.

As OEMs and dealers continue to manage their businesses to better align with current retail demand, we are focused on supporting OEMs by developing new products and solutions that deliver value to consumers.

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

Manufactured Housing

The Company’s products for this market are sold primarily to major manufacturers of manufactured homes, other OEMs, and to a lesser extent, manufacturers in adjacent industries.

In the aggregate, the top three manufacturers produced approximately 80% of MH market retail unit shipments in 2023 per SSI.

Wholesale unit shipments have increased in the MH industry from a low of approximately 49,800 units in 2009 to approximately 89,200 units in 2023 after reaching a 15-year high of 112,900 units in 2022.

In the aggregate, the top three manufacturers, Clayton Homes, Inc., Skyline Champion Corporation and Cavco Industries, Inc., combined to produce approximately 84% of MH market retail unit shipments in 2024 per SSI.

Wholesale unit shipments have increased in the MH industry to approximately 103,300 units in 2024 compared to approximately 89,200 units in 2023 .

The Company believes there is growth potential for this market in the long term driven by pent-up demand, multi-family housing capacity, demand for lower-cost rental options, increased affordability and quality, demographic trends such as increased first-time home buyers and urban-to-suburban relocations trends, new home pricing, and investments from developers and real estate investment trusts.

We continue to expand our product offerings to meet the evolving needs of our OEM customers, including energy efficient water heaters, furnaces, heating, ventilation, and air conditioning ("HVAC") duct systems and other products for OEMs seeking to exceed government sustainability guidelines on manufactured homes.

Factors that may favorably impact production levels further in this industry include 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.

We believe that MH units offer a cost-effective housing solution in a time when high home prices coupled with increased mortgage interest rates have negatively impacted housing affordability.

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

Factors that may favorably impact demand further in this industry include 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.

We believe that MH units offer a cost-effective housing solution in a time when high home prices coupled with elevated mortgage interest rates have negatively impacted housing affordability.

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

Industrial Markets

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We believe that there is a direct correlation between the demand for our products and new residential housing construction and existing home 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 into new unit construction and will vary based on differences in regional economic prospects.

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

After a relatively flat first half of 2023, multifamily housing starts experienced significant softness in the second half of 2023.

Single-family housing starts began to recover in the second half of 2023 after declining significantly earlier in the year.

Housing prices were resilient last year in the face of a continued elevated mortgage rates.

The potential for interest rate cuts in 2024, combined with low inventory and high prices for existing homes for sale, may provide support for our industrial market in 2024, particularly if economic uncertainties recede.

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

In 2024, new housing starts were down from 2023 by approximately 4%, with single family housing starts increasing approximately 6% and multifamily housing starts decreasing 25%.

Despite some interest rate relief in 2024, housing affordability continued to be an issue as housing prices and mortgage rates remained elevated compared to prior years.

Low inventory and high prices for existing homes for sale may provide support for our industrial market in 2025.

Detailed narrative 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 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, diversify its end market exposure and presence, and expand its footprint outside of its core Midwest markets.

The Company may explore strategic acquisition opportunities that are not directly linked to the five primary markets it serves in order to further leverage its core competencies in manufacturing and distribution, diversify its end market exposure and presence, and expand its footprint outside of its core Midwest markets.

During 2024 , the Company completed acquisitions for approximately $418 million of total consideration and over the last three years has completed acquisitions for approximately $696 million of total consideration.

See Note 3 "Acquisitions" of the Notes to Consolidated Financial Statements included elsewhere in this Form 10-K for further discussion of acquisitions completed by the Company in 2023, 2022 and 2021.

In January 2024, the Company announced that it completed its acquisition of Sportech, LLC, a leading designer and manufacturer of high-value, complex component solutions sold to powersports OEMs, adjacent market OEMs and the aftermarket.

See Note 17 "Subsequent Events" of the Notes to Consolidated Financial Statements included elsewhere in this Form 10-K for further discussion.

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

See Note 3 "Acquisitions" of

the Notes to Consolidated Financial Statements included elsewhere in this Form 10-K for further discussion of acquisitions completed by the Company in 2024, 2023 and 2022.

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

The barriers to entry for each industry are generally low and include compliance with industry standards, codes and safety requirements, and the initial capital investment required to establish manufacturing operations.

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Patrick has the ability to fulfill demand for certain products in excess of capacity at certain facilities by shifting production to other facilities.

Capital expenditures for 2023 consisted of $59 million of investments primarily to provide more advanced manufacturing automation, replace and upgrade production equipment.

Purchases of property, plant, and equipment for 2024 consisted of $76 million of investments which were primarily used to provide more advanced manufacturing automation and replace and upgrade production equipment.

Management regularly monitors capacity at its facilities and reallocates existing resources where needed to maintain production efficiencies throughout all of its operations and capitalize on commercial and industrial synergies in key regions to support profitable growth, grow its customer base, and expand its geographical product reach outside its core Midwest market.

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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, marine, MH 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.

The Company’s specialized team of designers, engineers and graphic artists works with RV, marine, powersports, MH 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.

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The Company’s sales to the various businesses of Forest River and Thor, on a combined basis, accounted for 29%, 29% and 38% of our consolidated net sales, for the years ended December 31, 2024, 2023 and 2022 , respectively.

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 generally maintains supplies of various commodity products in its warehouses to ensure that it has product on hand 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 t o customers.

Approximat ely 9%, 9%, and 8% of the Company's distribution segment’s sales were from products shipped directly from the suppliers to Patrick customers in 2023, 2022, and 2021, respectively.

Approximat ely 9% of the Company's distribution segment’s sales were from products shipped directly from the suppliers to Patrick customers in each of 2024, 2023 and 2022.

Typically, there is a two to four-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 material backlog of orders.

However, this can fluctuate depending on overall market factors and each specific end market we serve.

However, this timing can fluctuate depending on overall market factors and end market we serve.

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.

Raw Materials

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

Patrick has arrangements with certain suppliers that provide for 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 softwood and hardwood lumber products, aluminum, copper, plastic resin, fiberglass and overlays, among others which are available from many suppliers.

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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.

As a result of COVID-19 and other macroeconomic factors, the supply chain was previously impacted by increased commodity prices, decreased product availability, longer lead times and higher transportation costs, which resulted in increased raw material pricing from several of our suppliers.

Patrick took steps to mitigate these supply chain constraints by carrying increased levels of inventory and partnering with suppliers to help secure adequate supplies of materials.

Beginning in the second half of 2022 and throughout 2023, the Company reduced its inventory in alignment with lower OEM production levels.

We believe that, as of December 31, 2024, the Company’s inventory levels are appropriately balanced with expected OEM production, and we will continue to manage inventory based on anticipated customer needs.

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The FSC certification provides a link between responsible production and consumption of materials from the world’s forests and assists the Company’s customers in making socially and environmentally responsible buying decisions on the products they purchase.

Upholstered products and mattresses provided by the Company for RVs must comply with Federal Motor Vehicle Safety Standards regulated by the National Highway Traffic Safety Administration regarding flammability.

Select raw materials are subject to tariffs and other import duties.

For example, we have historically received benefits from duty-free imports on certain products from certain countries pursuant to the U.S.

Upholstered products and mattresses provided by the Company for RVs must

comply with Federal Motor Vehicle Safety Standards regulated by the National Highway Traffic Safety Administration regarding flammability.

Select raw materials are subject to tariffs and other import duties, although we have historically received benefits from duty-free imports on certain products from certain countries pursuant to the U.S.

Generalized System of Preferences ("GSP") program.

The current U.S.

administration’s trade policies may result in additional tariffs being imposed on certain products we import.

Additionally, we are subject to government regulations relating to importation activities, including related to U.S.

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Information on our website is not incorporated in this Annual Report on Form 10-K.

Manufacturing operations in the RV, marine and MH industries historically have been seasonal and at their highest levels when the weather is moderate.

Accordingly, the Company’s sales and profits had generally been the highest in the second

quarter and lowest in the fourth quarter.

Manufacturing operations in the RV, marine, powersports and MH industries historically have been seasonal and at their highest levels when the weather is moderate.

Accordingly, the Company’s sales and profits had generally been the highest in the second quarter and lowest in the fourth quarter.

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 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.

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

As of December 31, 2023, our team members totaled approximately 10,000, of which 83% are hourly team members who serve our customers by producing and distributing products in our RV, marine, MH and industrial end markets, and 17% who are salaried employees who manage the resources, capital allocations, business decisions, and customer relationships of our end markets.

As of December 31, 2024, our team members totaled approximately 10,000, of which 80% are hourly team members who serve our customers by producing and distributing products in our RV, powersports, marine, MH and industrial end markets, and 20% 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.

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Officer Position Age

Nemeth Chief Executive Officer 54

Rodino President 53

Ellis Executive Vice President-Operations and Chief Operating Officer 49

Filer Interim Executive Vice President-Finance, Chief Financial Officer, and Treasurer

Nemeth Chairman and Chief Executive Officer 55

Rodino President - RV 54

Ellis President - Powersports, Technology & Housing 50

Reyenger President – Marine 76

Roeder Executive Vice President - Finance, Chief Financial Officer, and Treasurer 48

Filer Senior Vice President - Finance and Chief Accounting Officer

Duthie Executive Vice President - Chief Legal Officer and Secretary 50

Stacey Amundson Executive Vice President-Human Resources and Chief Human Resources Officer 57

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

Nemeth previously served as President of the Company from January 2016 to July 2021, 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 32 years of manufactured housing, recreational vehicle, marine and industrial experience in various financial and managerial capacities.

Rodino was appointed President of the Company in July 2021 and was Chief Sales Officer of the Company from September 2016 to July 2021.

Rodino served as the Executive Vice President of Sales from December 2011 to July 2021.

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 30 years of experience in serving the recreational vehicle, manufactured housing, marine and industrial markets.

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

He was elected an officer in September 2016.

Ellis joined the Company as Vice President of Market Development in April 2016.

Amundson Executive Vice President - Human Resources and Chief Human Resources Officer 58

Roeder Executive Vice President - Sales and Chief Sales Officer 43

Gonzalez Executive Vice President - Operations and Chief Operating Officer 44

Nemeth, who was appointed as Chairman of the Board in May 2024, has been the Chief Executive Officer of the Company since January 2020 and served as President of the Company from January 2016 to July 2021.

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

Prior to that, Mr.

Nemeth was Vice President of Finance and Chief Financial Officer from 2003 to 2004.

Nemeth has over 33 years of RV, marine, powersports, manufactured housing and industrial experience in various financial and managerial capacities.

Director since 2006.

Rodino was named President – RV in January 2024 after serving as President of the Company from July 2021 to January 2024.

Prior to serving as Patrick’s President, Mr.

Rodino was Chief Sales Officer of the Company from September 2016 to July 2021.

Rodino served as the Executive Vice President of Sales from December 2011 to July 2021 and as the Chief Operating Officer of the Company from March 2013 to September 2016.

Prior to that, he was Vice President of Sales for the Midwest from August 2009 to December 2011.

Rodino has over 31 years of experience in serving the RV, marine, manufactured housing and industrial markets.

Ellis was named President – Powersports, Technology and Housing in January 2024 after serving as Executive Vice President of Operations and Chief Operating Officer of the Company since September 2016.

Ellis joined the Company as Vice President of Market Development in April 2016 and was elected an executive officer in September 2016.

Prior to his role at Patrick, Mr.

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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 27 years of experience serving the recreational vehicle, marine, manufactured housing, industrial and automotive markets.

Filer was appointed Interim Executive Vice President-Finance, Chief Financial Officer, and Treasurer in May 2023.

He joined Patrick as Senior Vice President of Finance in November 2022.

In 2007, he joined Caterpillar Inc.

and served in a series of progressive leadership roles which culminated in his appointment to Chief Financial Officer beginning in 2019 for two separate multi-billion dollar divisions within Caterpillar’s Resource Industries segment.

Prior to that, Mr.

Filer served in various controllership and CFO roles for Progress Rail, Caterpillar's rail division, from 2008 to 2019.

Duthie was appointed as Executive Vice President, Chief Legal Officer and Secretary in May 2021.

Duthie joined the Company as General Counsel in November 2020.

Ellis has over 28 years of experience serving the RV, marine, manufactured housing, powersports, industrial and automotive markets.

Reyenger was named President – Marine in January 2024 after serving as the Company’s Senior Vice President of Marine since 2020.

Reyenger joined the Company as a Business Unit Director upon Patrick’s acquisition of Marine Accessories Corporation in 2018 where he served as Chief Executive Officer.

Prior to joining Marine Accessories, Mr.

Reyenger served as Vice President of the Astro, Fisher, and Procraft brands at Marine Group, a division of Whitewater Marine Group, and President of Mako Marine International.

Reyenger has over 30 years of experience in the marine industry, including serving as Senior Vice President at Boston Whaler.

Roeder was appointed Executive Vice President – Finance, Chief Financial Officer and Treasurer of the Company in March 2024.

Prior to joining Patrick, Mr.

Roeder served as Chief Financial Officer of Polaris Marine from 2018 to 2024.

Prior to his role at Polaris, Inc.

he was the Chief Financial Officer of Bennington Marine from 2016 to 2018, and the Director of Financial Planning & Analysis for Bennington from 2014 to 2015.

Roeder has over 10 years of experience serving the marine markets in various leadership capacities.

Filer joined the Company as Senior Vice President of Finance in November 2022 and was elected Chief Accounting Officer in May 2024.

Filer served as Interim Executive Vice President - Finance, Chief Financial Officer and Treasurer from May 2023 to March 2024.

Prior to his role at Patrick, Mr.

Filer was with Caterpillar Inc.

from 2007 to 2021, serving in a series of progressive global leadership roles which culminated in his appointment as Chief Financial Officer for divisions within Caterpillar’s Resource Industries segment.

With over 27 years of experience with prior organizations that include Honeywell and Raytheon, Mr.

Filer has extensive industry knowledge across multiple manufacturing industries such as rail, mining, industrial and defense.

Duthie joined the Company as General Counsel in November 2020 and was appointed Executive Vice President, Chief Legal Officer and Secretary in May 2021.

Prior to joining Patrick, Mr.

Duthie was a partner with Barnes & Thornburg LLP, and practiced law at the firm from 2000 to 2002 and 2007 to 2020.

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Duthie served as an assistant general counsel for a privately-held manufacturer of flow control products from 2002 to 2006.

Stacey Amundson was appointed Executive Vice President, Human Resources and Chief Human Resources Officer in May 2022.

Amundson was appointed Executive Vice President and Chief Human Resources Officer in May 2022.

Prior to joining Patrick in February 2022, Ms.

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With over 26 years of experience in multiple industries, Ms.

Amundson has led the human resource function with specialties in talent management, executive compensation, mergers and acquisitions, integrations, shared services, and large-scale organizational transformations.

Amundson has led the human resource function with specialties in talent management, executive compensation, M&A, integrations, shared services, and large-scale organizational transformations.

Roeder was appointed Executive Vice President - Sales in January 2024 and elected Chief Sales Officer in May 2024.

Prior to that, Mr.

Roeder served as Senior Vice President of RV Operations since 2020.

Roeder was Group Vice President of Operations for the Company’s Metals group in 2019.

He joined the Company as a Business Unit Director in 2017 upon Patrick’s acquisition of Indiana Transport, which he co-founded 2009.

Roeder has 18 years of experience in the RV industry.

Gonzalez was appointed Executive Vice President - Operations in January 2024 and elected as Chief Operating Officer in May 2024.

Prior to that, Mr.

Gonzalez served as Senior Vice President of RV Operations for the Company from July 2021 to January 2024, Group Vice President of Operations from February 2020 to June 2021, and Business Unit Director from February 2017 to January 2020.

He joined the Company in 2006 and served in a series of progressive leadership roles.

Gonzalez has over 18 years of experience serving the RV, manufactured housing, industrial, and marine markets.

Website Access to Company Reports

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business