Patrick Industries Inc., a major supplier to the recreational vehicle, manufactured housing and industrial markets, reported the best sales and earnings in its history for the fourth quarter, punctuated by record revenue for its full year.
Net sales for the fourth quarter, ended Dec. 31, increased $40.5 million, or 38.1%, to $146.6 million from $106.1 million in the same quarter of 2012. The increase was primarily attributable to a 43% increase in the company’s revenue from the RV industry, which represented approximately 71% of fourth-quarter sales.
Fourth-quarter net income was $5.0 million, or 47 cents per diluted share, which reflected an effective tax rate of 38%. This compares to net income of $3.2 million, or $0.30 cents per diluted share, in the fourth quarter of 2012, when the company reported an income tax credit of approximately $0.2 million, or 2 cents per diluted share, related to the reversal of the valuation allowance against its deferred tax assets.
Todd Cleveland, president and CEO of Elkhart, Ind.-based Patrick, said, “We are pleased with our fourth-quarter revenue and profitability growth compared to 2012 as we continue to realize the benefits of our strategic and operational initiatives executed in 2012 and 2013 as well as growth in all three of the end markets we serve. Our gross margin in the fourth quarter of 2013 improved over the prior year quarter reflecting the positive contribution of acquisitions, market share gains, and an increase in our RV industry unit content.”
For the 12 months, sales increased $157.5 million or 36.0%, to $594.9 million from $437.4 million in 2012. Revenue from the RV industry, which represented approximately 72% of its 2013 sales, increased by 44%. The company’s RV content per unit increased 28% to $1,338 from $1,048 for 2012.
Patrick reported net income of $28.1 million, or $2.64 per diluted share, including a non-cash income tax credit of $6.8 million, or $0.64 per diluted share. Earnings in 2012 were $24 million.
Patrick also noted that on Feb. 13, 2014, the its board authorized an increase in the amount of the company’s common stock that may be acquired under the stock buyback program over the next 12 months to $20.0 million, including approximately $3.9 million available under the previous authorization.
“We continue to be energized by our full year 2013 performance which is a reflection of our team’s efforts to execute on a number of strategic and operational initiatives,” said Cleveland. “In 2013, as part of our overall strategic plan, we invested approximately $16.5 million in the acquisitions of Frontline Mfg., Inc., Premier Concepts, Inc. and West Side Furniture, which expanded the depth and breadth of our product lines and capabilities, both in our core markets and in related markets. These three acquisitions had annualized revenues of approximately $42 million, of which approximately $12 million was included in our full year 2013 operating results.”
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