Patrick Industries, Inc. Reports Fourth Quarter and
Full Year 2017 Financial Results
ELKHART, IN - February 15, 2018 - Patrick Industries, Inc. (NASDAQ: PATK), a major manufacturer and distributor of component and building products for the recreational vehicle (“RV”), manufactured housing (“MH”), marine and industrial markets, today reported its financial results for the fourth quarter and full year ended December 31, 2017.
Fourth Quarter 2017 Financial Results
Net sales for the fourth quarter of 2017 increased $151.7 million or 47%, to $475.6 million from $323.9 million in the same quarter of 2016. The increase was attributable to industry growth, acquisitions, geographic expansion efforts, and market share gains. The Company's revenues from the RV industry, which represented 68% of fourth quarter 2017 sales, increased 44%, while RV industry wholesale unit shipments increased approximately 19% in the fourth quarter of 2017 compared to the prior year. Revenues from the MH industry, which represented 13% of fourth quarter 2017 sales, increased 30% from the fourth quarter of 2016, while wholesale unit shipments in the MH industry rose approximately 15% for the same period. Revenues from the industrial market, which is tied primarily to residential housing, commercial construction, and institutional furniture spending, increased 37%. The industrial market accounted for 11% of the Company’s fourth quarter 2017 sales. Revenues from the marine industry represented 8% of the Company's fourth quarter 2017 sales and nearly tripled compared to the fourth quarter of 2016.
For the fourth quarter of 2017, Patrick reported operating income of $34.1 million, an increase of 54% or $12.0 million, from the $22.1 million reported in the fourth quarter of 2016. Net income in the fourth quarter of 2017 increased 114% to $29.0 million from $13.6 million in the fourth quarter of 2016, and net income per diluted share increased 97% to $1.16 from $0.59. For the fourth quarter of 2017, net income includes the impact of a one-time tax benefit of $7.4 million, or $0.29 per diluted share, due to the recently enacted Tax Cuts and Jobs Act.
Todd Cleveland, Chief Executive Officer, said, "We are pleased with our operating and financial performance in the fourth quarter, which was driven by the continued strength in all of our primary markets, the continued dedication and commitment of our team members, targeted geographic and product expansions, and the successful execution of strategic acquisitions, including our latest acquisitions of Indiana Transport, LMI, and Nickell Moulding in the fourth quarter of 2017."
"Momentum and discipline have remained strong in the RV industry, with double-digit quarterly wholesale unit shipment growth in each quarter of 2017 and full year shipments finishing the year at over 504,000 units," stated Andy Nemeth, President. "At the same time, the increase in wholesale production levels is aligned with RV retail traffic, sales increases, and seasonal demand patterns, supporting balanced retail inventories in anticipation of a solid 2018 selling season. Additionally, the marine powerboat retail market experienced gains over the prior year with unit sales up an estimated 6% in 2017. The ongoing strength in demographic trends and the allure of the outdoor, leisure family-oriented lifestyle continue to draw a strong influx of new buyers into both the RV and marine markets. Our housing and industrial business growth has continued as well, bolstered by similar demographic trends, low interest rates, improving consumer credit, and a strengthening economy and jobs environment."
Full Year 2017 Financial Results
Net sales for 2017 increased approximately $414 million or 34%, to $1.6 billion from $1.2 billion in 2016. The Company's revenues from the RV industry, which represented 69% of its 2017 sales, increased 28%, while RV industry wholesale unit shipments increased approximately 17% in 2017 from 2016. Additionally, revenues from the MH industry, which represented 13% of the Company's 2017 sales, rose 29% from 2016, while MH industry wholesale unit shipments increased approximately 14%. Revenues from the industrial market increased 27% and benefited primarily from acquisitions and market share gains, particularly related to the residential housing market. The industrial market, which accounted for 11% of the Company's 2017 sales, saw new housing starts increase by approximately 2% for 2017
The following information was filed by Patrick Industries Inc (PATK) on Friday, February 16, 2018 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.