Patrick Industries, Inc. Reports Third Quarter and Nine Months 2018 Financial Results and Announces Increased Share Repurchase Authorization
ELKHART, IN - October 25, 2018 - Patrick Industries, Inc. (NASDAQ: PATK), a major manufacturer and distributor of component and building products for the recreational vehicle (“RV”), marine, manufactured housing (“MH”), and industrial markets, today reported its financial results for the third quarter and nine months ended September 30, 2018.
Third Quarter 2018 Financial Results
Net sales for the third quarter of 2018 increased $167.6 million or 41%, to $575.1 million from $407.5 million in the same quarter of 2017. The increase was attributable to industry growth in the marine, MH and industrial markets, acquisitions, geographic and product expansion efforts, and market share gains. The Company's revenues from the RV industry, which represented 62% of third quarter 2018 sales, increased 30% despite a decrease in RV industry wholesale unit shipments, as estimated by the Company, of approximately 12% compared to the prior year. Revenues from the marine industry, which represented 14% of third quarter 2018 sales, increased 138% over the third quarter of 2017 off of an increase in marine powerboat retail shipments of approximately 4%. Revenues from the MH industry, which represented 12% of third quarter 2018 sales, increased 28% compared to the prior year period with an increase in MH wholesale unit shipments, as estimated by the Company, of approximately 9% from the third quarter of 2017. Revenues from the industrial market, which accounted for 12% of the Company's third quarter 2018 sales and is tied primarily to residential housing, commercial construction, hospitality, and institutional furniture markets, increased 53% compared to the prior year. New housing starts increased approximately 4% in the third quarter of 2018 compared to the prior year.
For the third quarter of 2018, Patrick reported operating income of $44.7 million, an increase of 48% or $14.5 million, from $30.2 million reported in the third quarter of 2017. Net income in the third quarter of 2018 increased 56% to $27.9 million from $17.9 million in the third quarter of 2017, and net income per diluted share increased 60% to $1.15 from $0.72.
Todd Cleveland, Chairman and Chief Executive Officer, said, "We are pleased with our overall operating and financial results in the third quarter which reflect strong operating execution within each of our end-markets and the continued realization of synergies related to acquired companies. During the third quarter, we completed the acquisition of Engineered Metals and Composites, another marine component supplier, marking our eighth acquisition overall this year. Our team remains focused on operational improvement, driving our disciplined strategic agenda, and re-investing in the business for long-term growth."
"Our strategic growth initiatives and balanced, diversified revenue mix amongst our core markets have helped to offset volatility in the third quarter RV wholesale unit shipments," stated Andy Nemeth, President. "This volatility reflected a combination of normal seasonal trends and RV OEMs tactically flexing their production levels to aggressively balance dealer inventory levels. While this resulted in wholesale unit shipment declines in the quarter, the OEMs continue to position themselves for the upcoming 2019 selling season. Both RV and marine retail demand continues to grow year-over-year with solid demographic trends supporting the attractiveness of the leisure family-oriented lifestyle. Our housing and industrial markets also continue to exhibit growth driven by pent-up demand, the need for high-quality affordable housing, low inventories, improving credit conditions, and solid economic fundamentals, including strong consumer confidence, new jobs growth and rising wages.”
The following information was filed by Patrick Industries Inc (PATK) on Thursday, October 25, 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.