Patrick Industries, Inc. Reports Fourth Quarter and
Full Year 2016 Financial Results
ELKHART, IN - February 16, 2017- Patrick Industries, Inc. (NASDAQ: PATK), a major manufacturer and distributor of building and component products for the recreational vehicle (“RV”), manufactured housing (“MH”) and industrial markets, today reported its financial results for the fourth quarter and full year ended December 31, 2016.
Fourth Quarter 2016 Financial Results
Net sales for the fourth quarter of 2016 increased $75.2 million or 30%, to $323.9 million from $248.7 million in the same quarter of 2015. The increase was primarily attributable to a 29% increase in the Company’s revenue from the RV industry, which reflected the incremental contribution from acquisitions completed in 2015 and 2016 and industry growth. According to industry sources, RV industry wholesale unit shipments increased approximately 19% in the fourth quarter of 2016 compared to the prior year. Sales to the RV industry represented 74% of the Company’s fourth quarter 2016 sales. Revenue from the MH industry, which represented 14% of the Company’s fourth quarter 2016 sales, increased 28%. According to industry sources, wholesale unit shipments in the MH industry rose approximately 15% from the fourth quarter of 2015. Additionally, sales to the industrial markets increased 40% compared to the prior year period. The industrial market sector, which is tied primarily to residential housing and non-residential construction spending, accounted for 12% of the Company’s fourth quarter 2016 sales. New housing starts in the fourth quarter of 2016 increased approximately 9% compared to the prior year.
For the fourth quarter of 2016, Patrick reported operating income of $22.1 million, an increase of 18% or $3.3 million, from the $18.8 million reported in the fourth quarter of 2015. Net income in the fourth quarter of 2016 increased 13% to $13.6 million from $12.0 million in the fourth quarter of 2015, while net income per diluted share increased 14% to $0.89 from $0.78.
Todd Cleveland, Chief Executive Officer, said, "Our fourth quarter revenues were in line with the strong seasonal demand patterns in the RV and MH industries as well as continued penetration into the industrial market. We were able to grow both our top and bottom line and successfully execute on our strategic and operational initiatives, which included the acquisitions of Sigma Wire International, LLC and KRA International, LLC in December 2016, investing in our strategic capital expenditure program, and our continued expansion plans in certain customer-concentrated regions of the country. Additionally, we increased our overall content per unit in both the RV and MH industries and remain optimistic about the long-term growth potential in these industries as well as the industrial market."
"In terms of wholesale unit shipments, the RV market experienced the best fourth quarter and the highest level of annual shipments in more than 40 years,” stated Andy Nemeth, President. "Retail sales of towable and motorized units, on a combined basis, grew 10% in 2016 based on industry data. Demand in this market continues to expand, supported by favorable demographic trends and we continued our focus on positioning ourselves to be able to fully support our customer base with resources and capacity.”
The following information was filed by Patrick Industries Inc (PATK) on Thursday, February 16, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.