Patrick’s 3Q Boosted by RV Sales, Acquisitions
Elkhart, Ind.-based Patrick Industries Inc., a major supplier of building and component products for the recreational vehicle, manufactured housing and industrial markets, reported significant sales and earnings gains for its third quarter boosted by strong performance from RV operations. The company also announced the establishment of a new $80 million revolving credit facility.
Net sales for the third quarter, ended Sept. 30, increased $35.5 million or 45.9% to $112.9 million from $77.4 million in the same quarter of 2011. The sales increase reflected a 66% increase in the company’s revenue from the RV industry and a 13% increase in revenue from the MH industry, which represented approximately 68% and 20% of third-quarter sales, respectively.
Approximately $18.7 million of the revenue increase was attributable to acquisitions completed in 2011 and 2012, with the remaining $16.8 million increase primarily attributable to increased RV market penetration and a 19% increase in quarterly wholesale unit shipments in the RV industry.
Patrick reported net income in the third quarter of $6.6 million, or 60 cents per diluted share, compared to net income of $4.5 million, or 44 cents per diluted share in the third quarter of 2011. Third quarter 2012 net income was positively impacted by a net gain on the sale of fixed assets and on the acquisition of a business of $0.2 million. Earnings included a non-cash credit of $0.1 million, or 1 cent per diluted share, related to stock warrant accounting.
“We are pleased by our third quarter revenue and profitability growth as we continue to increase our market share in the primary markets we serve through new product introductions, line extensions and the realization of our strategic and operational initiatives that are an integral part of our ‘customer first’ culture and mission,” said Todd Cleveland, president and CEO. “In addition, we believe the newest members to our Patrick family, Gustafson Lighting and Creative Wood Designs, and the other acquisitions we have completed since August 2010 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 nine months increased approximately $101.7 million, or 44.3%, to $331.2 million from $229.5 million in the same period in 2011. Approximately $46.5 million of the sales increase was attributable to the acquisitions completed in 2011 and 2012. In addition, increased RV shipment levels over the prior year and improved retail fixture and residential furniture sales in the industrial market positively impacted revenue growth on a year-to-date basis.
For the first nine months, Patrick reported net income of $24.9 million, or $2.32 per diluted share, compared to net income of $7 million, or $0.68 per diluted share, in the same period in 2011. The period was positively impacted by a non-cash credit of $6.7 million or 62 cents per diluted share, related to the reversal of a deferred tax valuation allowance and a net gain on the sale of fixed assets and on the acquisition of a business of $0.2 million, which were partially offset by a non-cash charge of $1.7 million related to stock warrant accounting.
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