Patrick Posts Record Profit for ’12, Sales Surge
Patrick Industries Inc. reported record earnings on double-digit growth in sales for its full year, ended Dec. 31, boosted by strong performance in the fourth quarter.
Elkhart, Ind.-based Patrick, a major manufacturer and distributor of building and component products for the recreational vehicle, manufactured housing and industrial markets, said sales for the fourth quarter increased $27.8 million, or 35.6%, to $106.1 million from $78.3 million in the same quarter of 2011.
The increase was primarily attributable to a 54% increase in the company’s revenue from the RV industry, which represented approximately 68% of its fourth quarter 2012 sales. Approximately $21.1 million of the revenue increase was attributable to the incremental impact of acquisitions completed in 2011 and 2012, including related market share growth.
Net income in the fourth quarter totaled $3.2 million, or 30 cents per diluted share, compared to net income of $1.5 million, or 14 cents per diluted share, in the fourth quarter of 2011.
“We are pleased by our fourth quarter revenue and profitability growth compared to 2011 as we continue to realize the benefits of our strategic and operational initiatives executed in 2011 and 2012,” said Todd Cleveland, President and CEO. “We believe the newest member of our Patrick family, Middlebury Hardwoods, and the other acquisitions we have completed in the last two years will continue to bring new and innovative products to our customers, provide positive contributions to our operating profitability, and allow us to gain additional penetration in the RV, MH, and industrial market sectors.”
Patrick acquired Middlebury, Ind.-based Middlebury Hardwood Products in October 2012. It was the company’s fourth acquisition of the year following the acquisition of Decor Mfg. in March 2012, Gustafson Lighting in July 2012, and Creative Wood Designs in September 2012.
For the 12 months, sales increased approximately $129.6 million, or 42.1%, to $437.4 million from $307.8 million in the same period in 2011. The sales increase reflected a 59% increase in the company’s revenue from the RV industry, which represented approximately 69% of its 2012 sales. Approximately $66.6 million of the revenue improvement was attributable to the incremental impact of business acquisitions completed in 2011 and 2012, including related market share growth.
For the full year, Patrick reported net income and diluted earnings per share of $28.1 million and $2.64, respectively – the highest in the company’s history – compared to net income of $8.5 million, or 83 cents per diluted share, in the same period in 2011.
Looking ahead, Cleveland stated, “As we begin a new year in 2013, we believe the investments we made in our businesses in 2011 and 2012 will positively impact both our top and bottom line results. In conjunction with the support of our new credit facility, our organizational strategic agenda, and the dedication and creativity of our more than 1,700 team members, we will continue to focus our efforts on the addition of new product lines and strategic acquisitions that will bring value to our customers in terms of innovation, price, flexibility and creativity both in the short-term and on a long-term basis.”
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