Acquisitions Boost Patrick’s 4Q, Full-Year Profits
Patrick Industries Inc. reported an increase in sales and earnings for its fourth quarter and 12 months, boosted by acquisitions completed in 2011. The Elkhart, Ind.-based company is a leading manufacturer and distributor of building and component products for the recreational vehicle, manufactured housing and industrial markets,
Net sales for the quarter, ended Dec. 31, were $78.3 million compared to $58.1 million in the same quarter of 2010, an increase of $20.2 million or 35%. The increase was primarily attributable to a 44% increase in the company’s revenue from the RV industry, which represented approximately 60% of its fourth quarter sales. The revenue improvements resulted from the contributions from business acquisitions completed in 2011, an 8% increase in quarterly wholesale unit shipments in the RV industry, additional RV market penetration, increased commodity prices, and improved retail fixture sales in the industrial market.
For the fourth quarter of 2011, Patrick reported net income of $1.5 million or $0.14 per diluted share, compared to a net loss of $0.9 million or $0.10 per diluted share in the fourth quarter of 2010. Fourth quarter 2011 net income included a non-cash charge of $0.8 million or $0.07 per diluted share related to mark-to-market accounting for common stock warrants. The fourth quarter 2010 net loss included a non-cash credit of $0.1 million or $0.01 per diluted share related to stock warrant accounting and a gain on the sale of fixed assets of $0.1 million or $0.01 per diluted share.
As previously announced, Patrick acquired Elkhart, Ind.-based Performance Graphics in December 2011. Performance Graphics, a designer, producer and installer of exterior graphics for the RV, marine, automotive, racing and enclosed trailer industries, was the company’s third acquisition of the year following the acquisition of Praxis Group in June 2011 and A.I.A. Countertops LLC in September 2011. Together, AIA and Praxis accounted for approximately $6.3 million of the sales increase in the fourth quarter of 2011. Performance Graphics did not contribute materially to Patrick’s fourth quarter 2011 operating results.
Net sales for full year 2011 were $307.8 million, an increase of $29.6 million or 11% over the $278.2 million reported in 2010. The year-over-year increase was primarily attributable to the acquisitions completed in 2011 as noted above, the acquisition of Blazon International Group in the third quarter of 2010, improved retail fixture business and improved market penetration in the RV market.
Patrick reported net income of $8.5 million or $0.83 per diluted share compared to $1.2 million or $0.12 per diluted share for the 2010 year, reflecting an increase of $7.3 million or $0.71 per diluted share. Net income for the 12 months of 2011 benefited from the impact of improved profitability at two of the company’s Midwest manufacturing divisions and the acquisitions.
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