Patrick Industries Inc., a manufacturer and distributor of building and component products for the recreational vehicle, manufactured housing and industrial markets, today (Oct. 24) reported a 29.8% increase in revenue for its third quarter, ended Sept. 29.
Net sales during the period increased $33.7 million to $146.6 million from $112.9 million in the same quarter of 2012. The increase was primarily attributable to a 35% increase in the company’s revenue from the RV industry, which represented approximately 70% of Patrick’s third-quarter sales. Sales to the MH industry increased 16%, while sales to the industrial markets increased 25%. The company noted that acquisitions of Frontline Mfg. Inc., Premier Concepts Inc. and West Side Furniture contributed to higher sales.
“We are pleased with our third-quarter revenue growth which was bolstered by growth in all three of the end markets we serve,” said Todd Cleveland, president and CEO of the Elkhart, Ind.-based supplier. “The positive sentiment exhibited by both dealers and OEMs during the recent RV manufacturer open houses supports the strong momentum in this industry as we head into the fourth quarter and into 2014.”
Patrick reported operating income of $9 million in the third quarter, an increase of $1.7 million, or 22.8%, from the $7.3 million reported in the prior year. Third-quarter net income was $5.5 million, or 51 cents per diluted share, compared to net income of $6.6 million, or 60 cents per diluted share, a year ago when the company had an effective tax rate of 0% due to a full valuation allowance against its deferred tax assets.
Net sales for the first nine months increased 35.3% to $448.3 million from $331.2 million in the same period in 2012. The company’s revenue from the RV industry, which represented approximately 73% of its sales, increased by 44%. Revenues from the MH industry, which represented 16% of the company’s sales rose 12% while industrial market sales increased 25%.
Net income for the nine months was $19 million, or $1.76 per diluted share, compared to $24.9 million, or $2.32 per diluted share, the year prior which included the positive impact of a non-cash income tax credit of $6.7 million related to the reversal of the tax valuation allowance against its deferred tax assets. Operating income for the nine months was $32.3 million, an increase of $9.9 million or 44.1% from the $22.4 million reported in the first nine months of 2012.
“The strong cash flows resulting from our revenue growth and operating performance thus far in 2013 have afforded us the opportunity to continue to strengthen our balance sheet, maintain an appropriate leverage position and reinvest in our business through capital expenditures, stock repurchases and acquisitions,” said Cleveland. “Our organization’s success is centered on bringing the highest level of quality products and services to our customers, and executing our strategic initiatives with the goal of further increasing growth and profitability consistent with our expectation of continuously increasing shareholder value. We intend to continue to pursue acquisitions and other avenues to increase our revenues and grow our operating income, net income, cash flows, and earnings per share through the remainder of 2013 and into 2014.”
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