Elkhart, Ind.-based supplier Patrick Industries Inc. announced today (Sept. 14) the acquisition of the business and certain assets of Creative Wood Designs Inc., a manufacturer of hardwood furniture including interior hardwood tables, chairs, dinettes, trim, fascia and moldings for the recreational vehicle industry.
According to a news release, the purchase price for the assets was approximately $5.7 million, including a contingent payment based on future performance.
Creative, based in Ligonier, Ind., is expected to post 2012 annual revenues of approximately $18 million. The move marks Patrick’s sixth acquisition since June 2011 and the third this year.
“The acquisition of Creative Wood Designs, along with the other businesses we have acquired over the past 15 months, will allow Patrick to further expand its presence in the RV market and increase our product offerings, market share and per unit content,” stated Todd Cleveland, president and CEO. “In addition, we are excited to leverage our operational talent and expertise, particularly as it relates to our own custom hardwood manufacturing knowledge and processes, with those of Creative. Creative is a major supplier in the RV hardwood furniture market and will be an asset to our organization as we continue to focus on providing new and innovative products to our customer base.”
The business will continue to operate on a stand-alone basis under the Creative Wood Designs brand name in its existing 250,000 square foot facility in Ligonier.
Elkhart, Ind.-based Patrick Industries Inc., a key supplier to the recreational vehicle, manufactured housing and industrial markets, announced plans today (Aug. 23) to expand operations at its AIA Countertops division in Syracuse, creating up to 65 new jobs by 2014.
According to a press release from the Indiana Economic Development Corp., Patrick plans to invest up to $3 million to purchase, renovate and equip a 142,000-square-foot facility located in Syracuse. As part of the project, new manufacturing equipment will be installed to support additional product lines, including new granite and quartz countertop fabricating lines. Patrick acquired AIA last September.
“Patrick Industries’ growth in Indiana bolsters our state’s already well-established manufacturing industry and provides new opportunities for Hoosier job seekers,” said Dan Hasler, secretary of commerce and CEO of the Indiana Economic Development Corp.
The AIA Countertops division, which currently has approximately 175 full-time employees in Syracuse, has been and expects to continue hiring additional manufacturing and production associates in conjunction with its growth needs.
“The capital investment we plan to make to expand our operations through the purchase and renovation of an existing facility in Syracuse that is in close proximity to our current location will afford us the opportunity to accommodate the significant growth we have recently experienced and more importantly, create new full-time positions for Indiana residents,” said Julie Ann Kotowski, director of investor relations at Patrick Industries. “We eagerly look forward to partnering with the state of Indiana, Kosciusko County and the city of Syracuse to promote job growth as we move forward with our expansion project that will increase our capacity and product offerings to the industries we serve.”
Founded in 1959, Patrick now operates 27 production and distribution facilities in 12 states across the country. Ten of these facilities are located in the Hoosier state. Outside of the recreational vehicle and manufactured housing industries, the company serves customers in the kitchen cabinet, marine, home furniture and commercial furnishings and fixtures markets.
The Indiana Economic Development Corp. offered Patrick Industries up to $325,000 in conditional tax credits based on the company’s job creation plans. These tax credits are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim incentives. The town of Syracuse approved additional property tax abatement at the request of the Kosciusko Economic Development Corp.
“One of the key goals of the town’s economic development efforts is to keep our existing companies competitive, and we’re thrilled to partner with Patrick Industries and AIA Countertops to ensure its lasting success in Syracuse,” said Larry Siegel, Syracuse town council president. “We’re excited to see this expansion in a company that plays an important role in one of our key industries. Manufacturing in Syracuse continues to show strong signs of growth and is another example of our economy’s continued post-recession improvement.”
Patrick Industries Inc. reported strong gains in sales and earnings for its second quarter, ended July 1, boosted by strong RV performance and the infusion of revenue from recent acquisitions.
According to the Elkhart, Ind.-based supplier, sales for the second quarter increased $33 million, or 39.9%, to $115.6 million from $82.6 million in the same quarter of 2011. The increase reflected a 61% increase in the company’s revenue from the RV industry and a 15% increase in revenue from the manufactured housing industry.
Approximately $16.2 million of the revenue increase was attributable to four acquisitions completed since mid-June 2011, with the remaining $16.8 million increase primarily attributable to increased RV market penetration and a 4% increase in quarterly wholesale unit shipments in the RV industry.
The company reported net income in the second quarter of $13.3 million, or $1.22 per diluted share, compared to net income of $3.7 million, or $0.36 per diluted share, in the second quarter of 2011. Earnings were positively impacted by a non-cash credit of $6.7 million related to the reversal of the deferred tax valuation allowance, which was partially offset by a non-cash charge of $0.1 million.
“We continue to focus on growing our market share in all three of our primary markets through new product introductions, line extensions, and innovative creativity and expertise from our sales team, product managers, and in-house design department that capitalize on our ‘Customer First’ culture and mission,” said Todd Cleveland, president and CEO. “In addition, we believe the acquisitions completed since June 2011 will continue to provide positive contributions to our operating profitability and allow us to gain additional penetration in the RV and industrial market sectors.”
Net sales for the first six months increased approximately $66.2 million, or 43.5%, to $218.3 million from $152.1 million in the same period in 2011. Approximately $27.8 million of the sales increase was attributable to the acquisitions completed since mid-June 2011.
For the first six months, Patrick reported net income of $18.3 million, or $1.70 per diluted share, compared to net income of $2.5 million, or $0.24 per diluted share, in the same period in 2011. Six months 2012 net income included the non-cash credit of $6.7 million or $0.62 per diluted share related to the reversal of the deferred tax valuation allowance and a non-cash charge of $1.8 million, or $0.17 per diluted share, related to mark-to-market accounting for common stock warrants.
“We are pleased with our operational and financial performance through the first half of 2012 and continue to execute on our organizational strategic agenda by making targeted capital investments and acquisitions, including our recently announced acquisition of Gustafson Lighting in Elkhart, which represents our fifth acquisition in thirteen months,” said Cleveland. “We remain focused on strategically leveraging our operating platform, resources, personnel, liquidity, and expertise to bring the highest level of quality products and service to our customers, which will in turn drive shareholder value.”
To view the entire report click here.
Elkhart, Ind.-based supplier Patrick Industries Inc. announced today (July 24) the acquisition of the business and certain assets of Gustafson Lighting, a manufacturer and distributor of interior and exterior lighting products, ceiling fans and accessories including glass and glass pads, hardware and lampshades for the RV industry.
According to a press release, Patrick estimates Gustafson’s annualized 2012 revenues to be approximately $12 million. Gustafson, also based in Elkhart, represents Patrick’s fifth acquisition since June 2011.
“We are excited about partnering with the team at Gustafson, which has built long-standing trusted relationships with its customers and suppliers during its 50-year history,” stated Todd Cleveland, Patrick president and CEO. “Gustafson commands a large share of the RV interior and exterior lighting market and will be an asset to our organization, providing the opportunity to increase our market share and per unit content and bring value to our customers through new and innovative products.”
The business will continue to operate on a stand-alone basis under the Gustafson brand name in its current facility in Elkhart. The purchase price for the assets including the building approximates $2.8 million. The acquisition was funded under Patrick’s revolving credit facility and was completed pursuant to a foreclosure and private sale under the Uniform Commercial Code with Capital Source Finance LLC.
“Gustafson is a natural fit with Patrick’s existing RV and commercial businesses as it brings many competitive advantages to our company, including high quality product lines, strategic sales, design and supplier relationships, exceptional customer service, industry experience, and breadth and depth of products,” said Cleveland. “We plan to capitalize on certain synergies that our two companies can bring to each other.
“Patrick will cover certain existing trade payables in order to maintain the integrity of Gustafson’s quality relationships with its key supplier base and as a reflection of our commitment to the industry. We also intend to invest the capital needed for Gustafson to strengthen its position as the leader in the RV lighting industry.”
Two key RV suppliers, Patrick Industries Inc. and Flexsteel Industries Inc., have been added to the U.S. broad-market Russell 3000 Index.
According to a press release, Russell indexes are widely used by investment managers and institutional investors worldwide for index funds and as benchmarks for both passive and active investment strategies. An industry leading $3.9 trillion in institutional assets are currently benchmarked to them.
Todd Cleveland, president and CEO of Elkhart, Ind.-based Patrick, said the company was honored to have joined the Index. “The Russell designation represents a significant milestone in Patrick’s 53 year history that will bring additional visibility to our company and our strategic initiatives as we strive to continue to create long-term value for our shareholders,” he stated.
Ronald J. Klosterman, president and CEO of Dubuque, Iowa-based Flexsteel, noted, “Many investors and institutions rely on the Russell 3000 Index as part of their investment strategy. Flexsteel’s inclusion acknowledges our strong business fundamentals and potential for future growth.”
Patrick Industries Inc., a supplier of building and component products for the recreational vehicle manufactured housing and industrial markets, reported growth in sales and earnings for the Elkhart, Ind.-based company’s first quarter ended April 1.
Net sales for the first quarter of 2012 were $102.7 million compared to $69.5 million in the same quarter of 2011, an increase of $33.2 million or 47.8%. The sales increase reflected a 57% increase in the company’s revenue from the RV industry and a 36% increase in revenue from the MH industry, which represented approximately 69% and 18% of first quarter 2012 sales, respectively.
Approximately $11.6 million of the revenue improvement was attributable to acquisitions completed since June 2011, with the remaining $21.6 million increase primarily attributable to increased RV market penetration, improved residential cabinet and furniture business in the industrial market, and a 10% increase in quarterly wholesale unit shipments in the RV industry.
Patrick post net income of $5 million or 47 cents per diluted share, an increase of $6.2 million or 60 cents per diluted share, over the net loss of $1.2 million or $0.13 per diluted share in the first quarter of 2011. First quarter 2012 net income included a non-cash charge of $1.7 million or $0.16 per diluted share related to mark-to-market accounting for common stock warrants. The first quarter 2011 net loss was impacted by non-cash charges related to the refinancing of Patrick’s former credit facility.
“We are pleased and energized by our improved first quarter revenue growth and profitability as we are realizing many of the benefits of strategic and operational initiatives executed over the past three years as well as the sacrifices, commitment, and dedication of our team members,” said Todd Cleveland, president and CEO. “Our acquisition initiatives have contributed to our overall profitability and we believe the addition of key team members to the Patrick organization will continue to provide ongoing benefits as we continually focus on bringing value-added innovative products and services to our customers.”
To view the full report click here.
Elkhart, Ind.-based Patrick Industries Inc. announced today (March 5) that it has completed the acquisition of the business and certain assets of Decor Mfg. LLC, a premier laminating operation located in Tualatin, Ore., for a purchase price of approximately $4.4 million. According to a press release, Decor primarily produces laminated and wrapped products for the Oregon recreational vehicle market.
“The Oregon market is significant in terms of RV market potential as it relates to overall Northwestern United States RV production levels, and we estimate it to be the second largest RV producing geographic sector outside of the Midwest,” stated Todd Cleveland, president and CEO of Patrick, an RV and manufactured housing supplier. “We are excited about partnering with the extremely talented management team at Decor, who have built long-standing trusted relationships with customers in the Northwest.
“They will be an asset to Patrick as we look to continue to bring value to our customers in terms of price, flexibility, proximity, innovation, quality, and an overall ease of doing business. In addition to providing opportunities for the company to increase its market share and per unit content, we believe the acquisition will afford immediate potential to establish a significant RV presence in the Northwest.”
The acquisition was funded through borrowings under Patrick’s revolving credit facility and the issuance of 100,000 shares of Patrick common stock. The company estimates Decor’s annualized 2012 revenues to be approximately $17 million.
The business will continue to operate on a stand-alone basis under the Decor Mfg. name in its existing manufacturing facility in Tualatin. Patrick currently operates a high-pressure laminate manufacturing cell for the industrial market and a distribution center for the RV and manufactured housing markets in its existing nearby Woodburn, Ore., facility.
Patrick Industries Inc. reported an increase in sales and earnings for its fourth quarter and 12 months, boosted by acquisitions completed in 2011. The Elkhart, Ind.-based company is a leading manufacturer and distributor of building and component products for the recreational vehicle, manufactured housing and industrial markets,
Net sales for the quarter, ended Dec. 31, were $78.3 million compared to $58.1 million in the same quarter of 2010, an increase of $20.2 million or 35%. The increase was primarily attributable to a 44% increase in the company’s revenue from the RV industry, which represented approximately 60% of its fourth quarter sales. The revenue improvements resulted from the contributions from business acquisitions completed in 2011, an 8% increase in quarterly wholesale unit shipments in the RV industry, additional RV market penetration, increased commodity prices, and improved retail fixture sales in the industrial market.
For the fourth quarter of 2011, Patrick reported net income of $1.5 million or $0.14 per diluted share, compared to a net loss of $0.9 million or $0.10 per diluted share in the fourth quarter of 2010. Fourth quarter 2011 net income included a non-cash charge of $0.8 million or $0.07 per diluted share related to mark-to-market accounting for common stock warrants. The fourth quarter 2010 net loss included a non-cash credit of $0.1 million or $0.01 per diluted share related to stock warrant accounting and a gain on the sale of fixed assets of $0.1 million or $0.01 per diluted share.
As previously announced, Patrick acquired Elkhart, Ind.-based Performance Graphics in December 2011. Performance Graphics, a designer, producer and installer of exterior graphics for the RV, marine, automotive, racing and enclosed trailer industries, was the company’s third acquisition of the year following the acquisition of Praxis Group in June 2011 and A.I.A. Countertops LLC in September 2011. Together, AIA and Praxis accounted for approximately $6.3 million of the sales increase in the fourth quarter of 2011. Performance Graphics did not contribute materially to Patrick’s fourth quarter 2011 operating results.
Net sales for full year 2011 were $307.8 million, an increase of $29.6 million or 11% over the $278.2 million reported in 2010. The year-over-year increase was primarily attributable to the acquisitions completed in 2011 as noted above, the acquisition of Blazon International Group in the third quarter of 2010, improved retail fixture business and improved market penetration in the RV market.
Patrick reported net income of $8.5 million or $0.83 per diluted share compared to $1.2 million or $0.12 per diluted share for the 2010 year, reflecting an increase of $7.3 million or $0.71 per diluted share. Net income for the 12 months of 2011 benefited from the impact of improved profitability at two of the company’s Midwest manufacturing divisions and the acquisitions.
To view the entire release click here.
Elkhart, Ind.-based supplier Patrick Industries Inc. announced today (Dec. 20) that it has completed the acquisition of the business and certain assets of Performance Graphics, also of Elkhart.
According to a press release, Performance Graphics is a designer, producer and installer of exterior graphics for the recreational vehicle, marine, automotive, racing and enclosed trailer industries.
“The acquisition of Performance Graphics, along with the recent acquisitions of the Praxis Group and A.I.A. Countertops LLC, will allow the company to further expand its penetration into the RV and industrial market sectors and increase its market share and per unit content,” stated Todd Cleveland, Patrick president and CEO. “In addition, the acquisition presents synergistic opportunities not only for the company, but for our customers. We are excited to leverage our operational talent and expertise and financial resources to help Performance Graphics meet our customers’ graphics needs.”
Performance Graphics’ projected annualized 2011 revenues are approximately $1.7 million. The acquisition was primarily funded through borrowings under Patrick’s revolving credit facility. The business will continue to operate on a stand-alone basis under the “Performance Graphics” name in its existing manufacturing facility.
“Performance Graphics is a natural fit with Patrick’s existing RV and commercial businesses, as it affords us the opportunity to enter a new product market with significant potential as a primary local supplier that is not only complementary to our existing product lines, but will bring value to our customers in terms of innovation, price, flexibility and creativity,” said Cleveland. “Additionally, the synergies between our existing talented design department and the creative Performance Graphics team will be an asset to both our customers and our organization.”
Patrick Industries Inc. announced today (Sept. 19) that it has completed the acquisition of certain assets of Syracuse, Ind.-based AIA Countertops LLC, a premier fabricator of DuPont Corian countertops, backsplashes, tables, signs and other products for the RV and commercial markets, for a net purchase price of approximately $5.7 million. AIA’s projected annualized revenues are approximately $20 million.
“The acquisition of AIA is a natural fit with Patrick’s existing RV and commercial businesses as it will afford us the opportunity to gain additional penetration and foothold in the RV and industrial market sectors and bring added value to our customers in terms of innovation, price, flexibility and product offering,” said Todd Cleveland, president and CEO for Elkhart, Ind.-based Patrick Industries. “Additionally, the strength and dedication of AIA’s management team, with more than 27 years of industry and operational experience, and its solid reputation in the marketplace will be an asset to our organization as we continue to capitalize on our core competencies and execute on our strategic initiatives.”
Patrick Industries said that the acquisition was primarily funded through borrowings under the company’s revolving credit facility and subordinated financing provided by Northcreek Mezzanine Fund I L.P. and an affiliate of Northcreek, in the form of secured senior subordinated notes. Northcreek is an existing lender to and shareholder of Patrick.
In addition, certain former members of AIA’s ownership group will carry a note receivable from Patrick Industries. AIA’s current management team will continue to manage the operation under the AIA name in its existing manufacturing facility following the closing.