NEWS IN FOCUS
Patrick 1Q Revenue Jumps 25% on RV Strength
Elkhart, Ind.-based component supplier Patrick Industries Inc. reported a 25% increase in year-over-year first-quarter revenue.
Sales during the period, ended March 27, totaled $278.6 million compared with $223.4 million in the same quarter of 2015. The increase was primarily attributable to a 25% increase in the company’s revenue from the RV industry, which reflected the contribution from acquisitions completed in 2015 and in 2016, along with industry growth. Sales to the RV industry represented 78% of the company’s first-quarter sales.
Net income in the first quarter increased 32% to $12 million from $9.2 million in the first quarter of 2015, while net income per diluted share increased 36% to 80 cents from 59 cents. Patrick reported operating income of $20.6 million, an increase of 32% from $15.6 million in the first quarter of 2015.
The company’s RV content per unit on a trailing 12-month basis for the first quarter increased approximately 17% to $1,905 from $1,629 for the first quarter of 2015.
CEO Todd Cleveland noted, “Our first-quarter results reflect the continued execution of our operating strategy to leverage our cost structure, coupled with growth in all three markets we serve. Overall, dealer and OEM sentiment in the RV industry remains positive, evidenced by a strong start to retail sales in the first two months of 2016 per industry sources. The MH industry is gaining strength as expected, and both our MH and industrial businesses continue to outperform their respective markets. In addition, our most recent acquisitions of Parkland Plastics Inc. and The Progressive Group provide us the opportunity to enter into a new product space and to diversify our product offerings into new markets.”
Operating cash flows in the first quarter were approximately $14 million. While the company invested approximately $42 million, in the aggregate, for acquisitions, stock repurchases and capital expenditures in the first quarter of 2016, total debt, net of cash on hand, increased $27.3 million to $230.9 at March 27 from $203.6 million at Dec. 31, 2015.
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