Patrick Industries Announces Third-Quarter Results
ELKHART — Patrick Industries Inc., a major manufacturer and distributor of building and component products for the recreational vehicle, manufactured housing and industrial markets, reported its financial results for the third quarter ended Sept. 27.
Net sales for the third quarter of 2015 increased $26.7 million or 14 percent, to $214.8 million from $188.1 million in the same quarter of 2014. The increase was primarily attributable to a 13 percent increase in the company’s revenue from the RV industry, which reflected the incremental contribution from acquisitions completed in 2014 and in the first nine months of 2015, as well as wholesale industry unit shipment growth of approximately 4 percent and market share gains.
Sales to the RV industry represented 72 percent of the company’s third quarter 2015 sales. Additionally, sales to the MH industry increased 14 percent and sales to the industrial markets increased 26 percent, quarter over quarter. The company estimates that wholesale unit shipments in the MH industry, which represented 16 percent of the company’s third-quarter 2015 sales, rose approximately 8 percent from the third quarter of 2014.
The industrial market sector, which is primarily tied to a combination of the residential housing and commercial and retail fixtures markets, accounted for 12 percent of the company’s third quarter, 2015, sales. According to industry sources, new housing starts in the third quarter of 2015 compared to the prior year increased approximately 13 percent.
For the third quarter of 2015, Patrick reported operating income of $15.2 million, an increase of 22 percent, or $2.7 million, from the $12.5 million reported in the third quarter of 2014. Net income in the third quarter of 2015 increased 24 percent to $9.0 million from $7.3 million in the third quarter of 2014, while net income per diluted share increased 29 percent to $0.58 from $0.45.
Todd Cleveland, president and CEO, said, “In the third quarter, which represents the start to the primary dealer show season in the RV industry, we witnessed the continuing trend of increased prototypes, pattern changes and new product innovation requests, in addition to an increase in the entrance of younger consumers into the buying channel. Our strong third-quarter financial performance reflected the contributions and commitment of our more than 3,800 team members in our ongoing efforts to better serve our customer base with new and innovative high-quality product lines and provide exceptional customer service. We continue to increase overall content per unit in both the RV and MH industries through acquisitions and market share gains and our industrial team continues to gain market penetration, particularly in the retail fixture and commercial furnishings segments.”
Cleveland further said, “In addition, the newest member of the Patrick family, North American Forest Products, Inc. and its wholly owned subsidiary, North American Moulding LLC, acquired in September, 2015, is an excellent fit with our existing core product lines for the RV industry and also represents a new market opportunity for Patrick in the softwoods lumber market, which bodes well for our goals of bringing the highest quality product offerings and service to our customers and driving shareholder value.”