RV Revenue Boosts Patrick’s 2Q Performance
Net sales for the second quarter of 2014 increased $28.3 million, or 17.7%, to $187.9 million from $159.6 million in the same quarter of 2013. The increase was primarily attributable to a 19% increase in the company’s revenue from the RV industry, which represented 75% of the company’s second quarter 2014 sales.
Net income during the second quarter was $9.2 million, or 86 cents per diluted share, compared to net income of $7.6 million, or 70 cents per diluted share, a year ago. Second-quarter 2013 net income included an after-tax gain on sale of fixed assets of $0.3 million, or 02 cents per diluted share, related to the sale of an operating facility.
Excluding the revenue contributions of acquisitions completed in 2013 and 2014, the company estimates its organic growth in the second quarter of 2014 at approximately 10%, or $14.9 million of its total revenue increase. Patrick said $13.4 million of the revenue increase in the second quarter of 2014 reflects the incremental contribution of the 2013 and 2014 acquisitions, resulting in incremental growth of approximately 8%. In June 2014, the company acquired the business and certain assets of Precision Painting Inc., Carrera Custom Painting Inc., Millennium Paint Inc., and TDM Transport Inc – collectively known as Precision – and Foremost Fabricators LLC.
The company’s RV content per unit (on a trailing 12-month basis) for the second quarter of 2014 increased approximately 16% to $1,410 from $1,217 for the second quarter of 2013.
Todd Cleveland, president and CEO, said, “We are pleased with our continued RV content growth, and excited about the organic and strategic opportunities that currently exist to grow our revenue base and increase our market share, all of which we believe will provide us with the opportunity to bring additional value to our customer base and drive shareholder value. The revenue growth and strong operating income performance we experienced in the second quarter of 2014 is consistent with our expectations and is reflective of the general positive industry sentiment across all three of the primary markets that we serve. In addition, the newest members of the Patrick family, Precision and Foremost, are an excellent fit with our existing RV businesses, and we continue to focus on our goal of bringing the highest quality product offerings and service to our customers.”
For the first six months of 2014, revenue increased $56.3 million, or 18.7%, to $358 million from $301.7 million in the same period in 2013. The company’s revenue from the RV industry, which represented 75% of its six months 2014 sales, increased by 20%.
Six-month net income was $16.1 million, or $1.50 per diluted share, compared to net income of $13.6 million, or $1.25 per diluted share, in the first six months of 2013.
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