According to a press release, Charleston is a Bremen, Ind.-based manufacturer of fiberglass and plastic components primarily used in the recreational vehicle, marine and vehicle aftermarket industries. Patrick estimates Charleston’s 2014 annual revenues to be approximately $20 million and expects the acquisition to be accretive to 2015 net income per share.
“The acquisition of Charleston, which is recognized as a high quality manufacturer and designer of a wide array of both open and closed mold fiberglass components and plastic products for OEMs in the RV, marine, vehicle aftermarket and transit industries, is a natural fit with our Frontline Mfg. Inc. fiberglass operation,” said Todd Cleveland, president and CEO of Patrick. “Charleston brings many competitive advantages to our company, including high-quality product lines, custom mold and tooling capabilities and expertise, strategic sales, design and supplier relationships, industry experience, and breadth and depth of products.”
Cleveland said Patrick will continue to support Charleston with “a financial and operational foundation that will allow it to capitalize on its core competencies while preserving the entrepreneurial spirit that has been so important to its success.”
Dick Strefling, founder of Charleston, said, “After more than 30 years in business together, Charleston’s exceptional team and I are excited to partner with Patrick and team up with an organization whose strong focus on customer service coupled with our technology and manufacturing processes in the fiberglass market will help further grow the Charleston brand. Patrick is a natural fit for our operation as we are poised for growth and the additional manufacturing expertise and resources that Patrick brings can help propel Charleston to the next level.”
Cleveland added, “We look forward to carrying on the tradition and reputation that Dick and the team at Charleston have built during their 30-plus year history. Additionally, bringing our two companies together to expand our presence and footprint in the fiberglass and small component plastics market, particularly as a supplier to the RV and marine industries, is clearly aligned with our strategic growth and diversification plans.”
Patrick Industries Inc., a major manufacturer and distributor of building and component products for the RV, manufactured housing and industrial markets, expects to release its third-quarter 2014 financial results before the market opens on Oct. 30, the company said in a press release.
Elkhart, Ind.-based Patrick Industries also expects to conduct a conference call on Oct. 30 at 10 a.m. Eastern to discuss third-quarter results and other business matters. The call will feature remarks byTodd Cleveland, president and chief executive officer, and Andy Nemeth, chief financial officer.
Participation in the question-and-answer session of the call will be limited to institutional investors and analysts.
According to a news release, PolyDyn3 is a custom fabricator of simulated wood and stone products such as headboards, fireplaces, ceiling medallions, columns and trims, for the recreational vehicle market. Patrick projects PolyDyn3’s 2014 annual revenues to be approximately $2.5 million and expects the acquisition to be accretive to 2015 net income per share.
“PolyDyn3 and its custom-built simulated wood and stone products lines have numerous interior and exterior applications in the RV market and are a natural fit with Patrick’s existing RV businesses,” said Todd Cleveland, president and CEO of Elkhart-based Patrick. “The acquisition will afford us the opportunity to bring in-house new production capabilities and product lines that we previously represented through one of our distribution business units, and gain additional penetration in the RV market sector. Additionally, the acquisition of PolyDyn3 supports our strategic initiatives driven towards our goal of continually adding value to our customers in terms of innovation, price, flexibility and product offering.”
The net purchase price for PolyDyn3 of approximately $1.3 million was funded under the company’s existing credit facility. Patrick will continue to operate the business on a stand-alone basis under the PolyDyn3 brand name in its existing facility.
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.
For the full report click here.
Patrick Industries also expects to conduct a conference call on July 29 at 10 a.m. EDT to discuss second-quarter results and other business matters. The call will feature remarks by Todd Cleveland, president and CEO, and CFO Andy Nemeth.
The Elkhart, Ind.-based supplier said it is adjusting its pattern of scheduled earnings announcement dates in order to better align with the expected formal publication by the Recreation Vehicle Industry Association (RVIA) of final quarterly RV wholesale unit shipment data. Patrick uses this industry data in its assessment and disclosure of overall industry improvement, company market share changes, RV content per unit, and its industry outlook. If the formal RVIA figures have not been published by the earnings release date, the company will use management estimates of RV wholesale unit shipments as it has done in the past.
Participation in the question-and-answer session of the call will be limited to institutional investors and analysts. The dial-in number for the live conference call is (800) 708-4540. The access code is 37693470. Interested parties are invited to listen to a live webcast of the call on Patrick’s website at www.patrickind.com under “Investor Relations.” A replay of the conference call will also be available via the company’s investor relations website.
Patrick Industries Inc. announced today (June 9) the acquisition of the businesses and certain assets of Indiana-based Precision Painting Group, which includes, Precision Painting Inc., Carrera Custom Painting Inc., Millennium Pain, Inc. and TDM Transport Inc.
The Precision Painting Group is comprised of three full service exterior full-body painting operations that also offer interior refurbishing and painting for both OEMs and existing recreational vehicle and fleet owners, and a transportation operation that services their in-house customers. The Precision Painting Group, in the aggregate, has projected 2014 annual revenues of approximately $28 million.
“The acquisition of the Precision Painting Group, the industry leader in premium exterior full-body painting, adds to our stable of high quality innovative decorative product lines that will help to continue to bring added value to our customer base,” said Todd Cleveland, president and CEO of Elkhart-based Patrick. “Consistent with our acquisition model, we are excited to have the opportunity to allow the entrepreneurial spirit of these operations to continue to thrive while supporting the businesses with the financial and operational foundation that will enable them to align with our company mission of bringing the highest quality products, service and value to our customers.”
Todd Hundt, president and Founder of Precision, noted, “After partnering with Mike Leman, Dan Miller, and the exceptional team at Precision for more than 13 years, I am both excited and energized to join the Patrick organization whose core values, competencies, relationships and customer-first approach mirror those that we have worked hard to build and maintain on a consistent high quality basis. Mike, Dan and I look forward to becoming a part of the Patrick team, while still having the freedom and additional resources to continue to drive the growth of our brands. Patrick is a natural fit for our operation, and the additional manufacturing expertise and financial resources that they bring can help propel Precision to the next level.”
The purchase of Precision was funded under Patrick’s existing credit facility and includes the acquisition of accounts receivable, inventory, prepaid expenses, and machinery and equipment. Patrick will continue to operate the businesses on a stand-alone basis under the Precision, Carrera and Millennium brand names in their existing facilities. The company expects the acquisition to be immediately accretive to 2014 net income per share.
“Precision’s excellent reputation in the industry, which has been built upon years of providing high quality products and service and industry leading expertise to its customer base, will allow us to establish a strong presence in the painting market while providing opportunities to expand our array of products and services to the RV market through existing sales channels,” said Mr. Cleveland.
Editor’s Note: The following is a column by The Motley Fool analyzing the growth of Patrick Industries Inc. and its healthy return on investment.
Patrick Industries, a national manufacturer and distributor of a wide variety of building and component products for the recreational vehicle industry, has outshone its peers in the past few years.
A dollar invested in a customized group of eight listed peers in 2008, including companies like Thor Industries Inc. and Drew Industries Inc., would have made the investor $7.50 by the end of 2013. In contrast, the same dollar invested in Patrick industries would have returned $45 to that investor over the same period.
Following the 58% decline in RV wholesale unit shipments from about 391,000 in 2006 to 166,000 in 2009, the RV industry is now seeing clearer skies. RV wholesale unit shipments have recovered strongly to almost double to 321,000 units in 2013, with expectations of a 6% year-on-year growth in 2014.
More than 9 million Americans are currently RV owners, with RVs gaining acceptance as a mainstream option for vacation travel and other leisure activities. Looking ahead, with more aging baby boomers near retirement age, RV ownership should grow further, as most people buy their first RV at a later age.
However, this doesn’t fully explain Patrick Industries’ outperformance relative to its peers.
In addition to adding more customers, selling more items to each customer is another way to drive revenue growth. In 2013, Patrick Industries launched 60 new products. Examples include new styles of interior passage doors, an expanded range of cabinet door styles, and new variations with respect to colors, patterns, and wood types for panels and mouldings.
Apart from leveraging on acquisitions to expand its product range, Patrick Industries also worked on upgrading its manufacturing and distribution capabilities. Firstly, it bought over a previously leased distribution facility in 2013 to expand its inventory holding capacity. Secondly, Patrick Industries also upgraded some of its existing manufacturing equipment to enhance production efficiency last year.
For the full story click here.
Elkhart, Ind.-based Patrick Industries Inc., a leading manufacturer and distributor of building and component products for the recreational vehicle, manufactured housing and industrial markets, today reported its financial results for the first quarter ended March 30, 2014.
First quarter net income was $6.9 million, or 64 cents per diluted share, compared to net income of $6 million, or 55 cents per diluted share, in the first quarter of 2013.
Sales during the period increased $28 million, or 19.7%, to $170.1 million from $142.1 million in the same quarter last year. The increase was primarily attributable to a 21% increase in revenue from the RV industry, which represented approximately 76% of the company’s first quarter 2014 sales. Sales to the MH industry increased 12%, while sales to the industrial markets increased 24%.
“We are pleased with our revenues and our operating income performance in the first quarter of 2014. The severe winter weather we experienced in the Midwest in early 2014 did cause some additional costs related to production, scheduling, and delivery inefficiencies, but the impact was not significant to our overall operating results in the first quarter,” said Todd Cleveland, president and CEO. ”We did see a continuing seasonal sales pickup each month consistent with our expectations and general positive industry sentiment, and we continue to believe that all three of the primary markets we serve are well positioned for further growth in 2014.”
Patrick’s RV content per unit for the first quarter of 2014 increased approximately 20% to an estimated $1,373 from $1,142 a year ago. The MH content per unit for the first quarter of 2014 increased approximately 2% to an estimated $1,605 from $1,580 for the same period in 2013.
To view the full report click here.
Elkhart, Ind.-based Patrick Industries Inc., a major manufacturer and distributor of building and component products for the recreational vehicle, manufactured housing and industrial markets, expects to release its first quarter 2014 financial results before the market opens on April 24.
Patrick Industries also plans to conduct a conference call on April 24 at 10 a.m. EDT to discuss first quarter results and other business matters. The call will feature remarks by Todd Cleveland, president and CEO, and CFO Andy Nemeth.
Participation in the question-and-answer session of the call will be limited to institutional investors and analysts. The dial-in number for the live conference call is (800) 773-2954. The access code is 37065441.
Interested parties are invited to listen to a live webcast of the call on Patrick’s website at www.patrickind.com under “Investor Relations.” A replay of the conference call will also be available via the Company’s investor relations website.
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.”
To view the full report click here.