Goshen News, Goshen, IN

February 21, 2014

Patrick Industries rides RV profit wave


Goshen News

---- — ELKHART — Patrick Industries Inc. had near-record revenue for 2013 and record revenue for its fourth quarter.

The company manufactures and distributes components for the recreational vehicle, manufactured housing and other industries.

The company also announced it would increase its share repurchase program to $20 million.

Full Year 2013 Financial Results

According to the company, net sales for 2013 increased $157.5 million or 36 percent to $594.9 million from $437.4 million in 2012. According to the company, 2013 revenue from the RV industry, which represented approximately 72 percent of yearly sales, increased by 44 percent. Wholesale unit shipments to the RV industry increased approximately 12 percent in 2013 compared to the prior year.

Revenues from the MH industry, which represented 16 percent of the company’s 2013 sales, rose 13 percent compared to the prior year as wholesale unit shipments increased by approximately 10 percent.

The industrial market, which accounted for 12 percent of the company’s 2013 sales, saw new housing starts increase by approximately 18 percent for 2013 compared to the prior year.

The company said net income and net income per diluted share for full year 2013 were exceeded only by 2012’s results due to a non-cash income tax credit recorded in that year.

Fourth quarter

The company reported net sales for the fourth quarter increased $40.5 million or 38.1 percent, to $146.6 million from $106.1 million in the same quarter of 2012. The increase was primarily attributable to a 43 percent increase in the company’s revenue from the RV industry, which represented approximately 71 percent of the company’s fourth quarter 2013 sales.

Todd Cleveland, president and chief executive officer, 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.”