Patrick Industries Inc. reported strong gains in sales and earnings for its second quarter, ended July 1, boosted by strong RV performance and the infusion of revenue from recent acquisitions.
According to the Elkhart, Ind.-based supplier, sales for the second quarter increased $33 million, or 39.9%, to $115.6 million from $82.6 million in the same quarter of 2011. The increase reflected a 61% increase in the company’s revenue from the RV industry and a 15% increase in revenue from the manufactured housing industry.
Approximately $16.2 million of the revenue increase was attributable to four acquisitions completed since mid-June 2011, with the remaining $16.8 million increase primarily attributable to increased RV market penetration and a 4% increase in quarterly wholesale unit shipments in the RV industry.
The company reported net income in the second quarter of $13.3 million, or $1.22 per diluted share, compared to net income of $3.7 million, or $0.36 per diluted share, in the second quarter of 2011. Earnings were positively impacted by a non-cash credit of $6.7 million related to the reversal of the deferred tax valuation allowance, which was partially offset by a non-cash charge of $0.1 million.
“We continue to focus on growing our market share in all three of our primary markets through new product introductions, line extensions, and innovative creativity and expertise from our sales team, product managers, and in-house design department that capitalize on our ‘Customer First’ culture and mission,” said Todd Cleveland, president and CEO. “In addition, we believe the acquisitions completed since June 2011 will continue to provide positive contributions to our operating profitability and allow us to gain additional penetration in the RV and industrial market sectors.”
Net sales for the first six months increased approximately $66.2 million, or 43.5%, to $218.3 million from $152.1 million in the same period in 2011. Approximately $27.8 million of the sales increase was attributable to the acquisitions completed since mid-June 2011.
For the first six months, Patrick reported net income of $18.3 million, or $1.70 per diluted share, compared to net income of $2.5 million, or $0.24 per diluted share, in the same period in 2011. Six months 2012 net income included the non-cash credit of $6.7 million or $0.62 per diluted share related to the reversal of the deferred tax valuation allowance and a non-cash charge of $1.8 million, or $0.17 per diluted share, related to mark-to-market accounting for common stock warrants.
“We are pleased with our operational and financial performance through the first half of 2012 and continue to execute on our organizational strategic agenda by making targeted capital investments and acquisitions, including our recently announced acquisition of Gustafson Lighting in Elkhart, which represents our fifth acquisition in thirteen months,” said Cleveland. “We remain focused on strategically leveraging our operating platform, resources, personnel, liquidity, and expertise to bring the highest level of quality products and service to our customers, which will in turn drive shareholder value.”
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