Patrick Industries, Inc. Reports Fourth Quarter and Full Year 2018 Financial Results
ELKHART, IN - February 14, 2019 - 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 fourth quarter and full year ended December 31, 2018.
Fourth Quarter 2018 Financial Results
Net sales for the fourth quarter of 2018 increased $55.6 million or 12%, to $531.2 million from $475.6 million in the same quarter of 2017. The increase was primarily attributable to acquisitions, product expansions and market share gains. The Company's revenues from the RV industry, which represented 58% of fourth quarter 2018 sales, decreased 6% from the prior year period compared to RV industry wholesale unit shipments which decreased approximately 17% for the same period. Revenues from the marine industry, which represented 15% of fourth quarter 2018 sales, increased 121% over the fourth quarter of 2017, while marine powerboat retail shipments declined approximately 7%. Fourth quarter 2018 marine retail shipment declines were concentrated in the aluminum and fiberglass sectors, with strong growth in both the pontoon and ski and wake sectors, compared to the prior year period. Revenues from the MH industry, representing 14% of fourth quarter 2018 sales, increased 26% compared to the prior year, while MH wholesale unit shipments declined approximately 9% from the fourth quarter of 2017. The decline in MH wholesale shipments reflected the negative impact of disruptive weather-related events in the fourth quarter of 2018 in the southern and southeastern regions of the country. Revenues from the industrial market, which accounted for 13% of the Company's fourth quarter 2018 sales and is tied primarily to residential housing, commercial construction, hospitality, and institutional furniture markets, increased 26% compared to the prior year. New housing starts in the fourth quarter of 2018, as estimated by the Company, were relatively flat compared to the prior year.
For the fourth quarter of 2018, Patrick reported operating income of $38.9 million, an increase of 14% or $4.8 million, from $34.1 million reported in the fourth quarter of 2017. Net income in the fourth quarter of 2018 was $27.0 million compared to $29.0 million in the fourth quarter of 2017, and net income per diluted share was $1.15 and $1.16 for the fourth quarter of 2018 and 2017, respectively. For the fourth quarter of 2018, net income included tax benefits associated with share-based compensation of $4.5 million, or $0.19 per diluted share. For the fourth quarter of 2017, net income included tax benefits of $1.4 million associated with share-based compensation and $7.4 million resulting from U.S. tax reform, or $0.35 per diluted share, in the aggregate. Excluding these items, net income for the fourth quarter of 2018 was $22.5 million, an increase of 11% or $2.3 million, from $20.2 million in the fourth quarter of 2017, and net income per diluted share was $0.96 in the fourth quarter of 2018, an increase of 19% compared to net income per diluted share of $0.81 for the fourth quarter of 2017.
Todd Cleveland, Chairman and Chief Executive Officer, said, "Our fourth quarter and full year 2018 financial and operational performance is a reflection of a total team effort in which we continued to execute on our strategic and operational initiatives, including expanding our product portfolio, making targeted geographic and product expansions, and completing nine acquisitions during the year. Additionally, we continued to focus on managing and leveraging our cost structure, executing on synergies, and driving efficiencies across all functions and aspects of our organization."
"The diversification of our market presence over the past several years in alignment with our strategic plan has helped to further balance our revenue stream and offset volatility in the RV market,” stated Andy Nemeth, President. “The fourth quarter marked the third consecutive quarter where we saw year-over-year declines in RV wholesale shipments as RV OEMs continued to aggressively adjust their production levels in tandem with the rebalancing of dealer inventories. The revenue improvement in our non-RV markets was strong and more than offset revenue declines related to wholesale shipment volatility in our RV-related businesses in the quarter as we continued to drive both strategic and organic growth in all four of our primary markets.”
The following information was filed by Patrick Industries Inc (PATK) on Thursday, February 14, 2019 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.