Patrick Industries, Inc. (NASDAQ:PATK) Q3 2023 Earnings Call Transcript

And if we need to take some more cost out, we certainly can do that and we’ll do that very prudently. So overall, as we look at the cost structure and the puts and takes, I feel like we can continue to be very flexible and nimble with our business model our team is just really good at that. And so I’ve been so impressed with what they’ve been able to do in the way that they proactively manage the business has been super invigorating from our perspective. So we feel like we can be flexible and nimble and flex with wherever volumes are at as we look at going forward. Obviously, there’s macroeconomic concerns out there, but we are positioned very well to continue to flex.

Craig Kennison: Great. Thank you.

Operator: Thank you. [Operator Instructions] The next question is from the line of Griffin Bryan with D.A. Davidson. Please proceed with your questions.

Griffin Bryan: Yeah, thanks. Just one for me. So in terms of the enhanced dealer inventory for both marine and RV, do you think this returns to its historical norm or these current levels and new run rate going forward over the medium to long-term? Thanks.

Andy Nemeth: Griffin, we’re planning our business around the current weeks on hand levels, which we believe are obviously very low given the interest rate environment and we certainly appreciate the prudence that both OEMs and dealers are using today to minimize floor plan financing costs. So from our perspective, we’re at a low level of weeks on hand, lower than we would have anticipated. But it’s been calibrated from our perspective. And so I think our modeling is centered around consistent weeks on hand. We’re not planning anything up. If it does go up, then we would expect some restocking and we will certainly participate in flex with that. But right now, we’re building our model off of consistent weeks on hand.

Operator: Thank you. Ladies and gentlemen, I’ll turn it over to Andy for closing remarks.

Andy Nemeth: I want to end the call by once again expressing my sincere gratitude to our talented team members were the reason for our success. Their dedication and commitment are instrumental to Patrick continuing to be a customer-focused supplier that empowers enthusiasts on the road, on the water and at home. We find inspiration in the resilience displayed by our team despite the wide range of market and industry changes we’ve seen in the past few years. This resilience gives us the confidence that we can navigate any challenges that come our way and we will continue to utilize our operational and financial levers appropriately to drive sustainable growth and deliver long-term value to our shareholders. We thank everyone who has joined us on the call today.

Operator: Thank you. Ladies and gentlemen, this concludes today’s teleconference. Thank you for your participation and you may now disconnect your lines.