NEWS IN FOCUS
Patrick 2Q Income Up 38%, Lifted By RV Sales
Patrick Industries Inc. today (July 28) reported a 38% increase in net income for its second quarter, lifted by continued growth in the RV industry and “the incremental contribution from acquisitions completed in 2015 and 2016.”
Net income in the second quarter, ended June 26, totaled $16.7 million compared with $12.1 million in the second quarter of 2015, while net income per diluted share increased 41% to $1.10 from 78 cents.
Sales during the period increased $81.7 million, or 35%, to $315.2 million from $233.5 million in the same quarter of 2015. Sales to the RV industry rose 33% year-over-year and represented 75% of the company’s second-quarter revenue.
Patrick reported operating income of $28 million in the second quarter, an increase of 37%, or $7.6 million, from the $20.4 million reported in the second quarter of 2015.
CEO Todd Cleveland noted, “We are pleased with our operating and financial performance in the second quarter, reflecting continued positive momentum both at the wholesale and retail levels in the industries we serve, the impact of the acquisitions we have made over the past several years, and the team’s commitment to driving the execution of our strategic plan. In addition, we continue to increase overall content per unit in both the RV and MH industries through acquisitions and market share gains, and our industrial team continues to expand its presence and territorial coverage. The acquisitions we have completed in 2016 have afforded us the opportunity to enter into new product spaces and to compete in new markets, expand our customer base, and bring additional value-added product offerings to our customers.”
Net income in the first six months of 2016 increased 35% to $28.7 million from $21.2 million a year ago, while net income per diluted share increased 39% to $1.90 from $1.37. Patrick reported operating income of $48.6 million for the six months, an increase of $12.7 million or 35%, from the $35.9 million reported in the first six months of 2015.
Net sales increased $136.9 million, or 30%, to $593.8 million from $456.9 million in the same period in 2015. The company’s revenue from the RV industry, which represented 76% of its six months 2016 sales, increased by 29%.
“Overall, dealer and OEM sentiment in the RV industry remains positive, supported by strong retail demand thus far in 2016,” stated Andy Nemeth, President. “Retail sales of towables and motorized units, on a combined basis, grew 7% in the first five months of 2016 based on the most recent available industry data, reflecting the continued growth in popularity of the RV lifestyle and strong demographic trends. We continue to be encouraged by the influx of younger and first-time consumers that have entered the market, as we believe this is a positive indicator of a broadening of the market’s foundation and an opportunity for long-term industry growth potential. We believe our commitment to quality customer service and our large complement of innovative product lines at various price points position us to address our customers’ changing needs and buying patterns as they continue to look for differentiation among product lines.”
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