Elkhart, Ind.-based Patrick Industries Inc., a key supplier to the RV, manufactured housing and industrial markets, reported a 38.4% increase in revenue for its first quarter, ended March 31, driven by strong performance in RV-related sales.
Sales for the first quarter increased $39.4 million to $142.1 million from $102.7 million in the first quarter of 2012. The increase was primarily attributable to a 51% increase in the company’s revenue from the RV industry, which represented approximately 75% of its first quarter sales. Manufactured housing revenue grew 6% while sales to the industrial industry were up 17%.
Patrick reported first quarter net income of $6 million, or 55 cents per diluted share, an increase of $1 million from net income of $5 million, or $0.47 per diluted share, in the first quarter of 2012. The company said that earnings include the impact of a tax provision of $3.8 million at the full estimated combined federal and state statutory rate of 39% compared to the first quarter of 2012 where the company carried a full valuation allowance against its deferred taxes and had an effective tax rate of 0%. The first quarter of 2012 includes the impact of a non-cash charge of $1.7 million related to mark-to-market accounting for common stock warrants. Exclusive of the non-cash charge for stock warrant accounting and assuming the same full estimated combined statutory tax rate of 39% in the first quarter of 2012, net income would have been $4.1 million or $0.38 per diluted share.
President and CEO Todd Cleveland noted, “We are pleased with our first quarter revenues which were bolstered by a strong start to the year in the RV industry and positive indicators in the industrial markets. Both the RV and industrial markets look to continue their growth into the second quarter which we believe will also include a seasonal pickup in MH shipments.”
He added, “We have continued to report solid profitability on a quarterly basis and we are excited about our first quarter results which were consistent with our expectations including exceeding our first quarter 2012 reported net income which had the benefit of a 0% effective tax rate.”
On Feb. 22, the company’s board authorized a stock repurchase program for purchasing up to $10 million of common stock. As of April 19, the company had repurchased 330,358 shares at an average price of $13.90 per share for a total cost of approximately $4.6 million.
“We continue to focus on leveraging our operating position to drive profitability with increased revenues and hold ourselves and our team members accountable to the high standards that we have set internally as an organization,” said Cleveland. “Additionally, central to our organization’s success is the continued attention to bringing value to our customer base through value added ingenuity, new and innovative product lines, and as always the highest quality customer service. Our team continues to perform with a dedication to our core values and executing our strategic initiatives with a goal of further increasing growth and profitability consistent with our expectations of continuously increasing shareholder value.”
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