Patrick Industries, Inc. Reports First Quarter 2019 Financial Results
ELKHART, IN - April 25, 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 first quarter ended March 31, 2019.
First Quarter 2019 Financial Results
Net sales for the first quarter of 2019 increased $56.4 million, or 10%, to $608.2 million from $551.8 million in the same quarter of 2018. The increase in the first quarter was primarily attributable to acquisitions and organic growth, which was partially offset by double-digit declines in RV and MH industry wholesale unit shipments. The Company's revenues from the RV industry, which represented 56% of first quarter 2019 sales, decreased 9% from the first quarter of 2018, compared to a 27% decrease in RV industry wholesale unit shipments, as estimated by the Company. Revenues from the marine industry, which represented 15% of first quarter 2019 sales, increased 99% over the first quarter of 2018, while estimated marine powerboat retail shipments decreased by approximately 7%. Revenues from the MH industry, representing 17% of first quarter 2019 sales, increased 70% compared to the prior year with a decrease in MH industry wholesale unit shipments, as estimated by the Company, of approximately 10% from the first quarter of 2018. Revenues from the industrial market, which accounted for 12% of first quarter 2019 sales and is tied primarily to residential housing, commercial construction, hospitality, and institutional furniture markets, increased 5% compared to the prior year. New housing starts in the first quarter of 2019 declined 10% compared to the prior year.
The Company's RV content per unit (on a trailing twelve-month basis) for the first quarter of 2019 increased approximately 30% to an estimated $3,131 from $2,414 for the first quarter of 2018. Marine powerboat content per retail unit (on a trailing twelve-month basis) for the first quarter of 2019 increased 118% to an estimated $1,490 from $683 for the first quarter of 2018. MH content per unit (on a trailing twelve-month basis) for the first quarter of 2019 increased approximately 42% to an estimated $3,389 from $2,382 for the first quarter of 2018.
For the first quarter of 2019, Patrick reported operating income of $35.8 million, a decrease of 14%, or $6.0 million, from $41.8 million reported in the first quarter of 2018. Net income in the first quarter of 2019 was $20.8 million compared to $30.1 million in the first quarter of 2018, and net income per diluted share was $0.90 and $1.20 for the first quarter of 2019 and 2018, respectively.
Todd Cleveland, Chief Executive Officer, said, "We are pleased with our first quarter performance as we continue to execute through significant wholesale unit shipment rebalancing in our primary RV market sector, and a housing sector that continues to be hampered by wet weather in the southeastern and certain western regions of the country, impacting both the MH and residential housing markets. In addition to the impact on our operating and net income in the first quarter of 2019 that resulted primarily from wholesale unit shipment declines in our RV and MH markets, our profitability was also negatively impacted in the quarter due to carrying higher priced inventory in a declining commodity pricing environment with softer than expected production levels. We anticipate continuing to work through the higher priced inventory through the second quarter of 2019.”
"RV and marine dealer sentiment remains positive and dealer shows and retail traffic are off to a solid start to the year," stated Andy Nemeth, President. "RV OEMs have continued to adjust their production levels through April as dealers have managed inventory weeks on hand over the past four quarters to better align with shorter delivery lead times resulting from OEM capacity increases. Based on the most recently available data, we anticipate that the industry is approaching a return to equilibrium in RV dealer inventories in the near term, which will position RV OEMs to be able to return to producing units more in tandem with expected retail demand, in particular as we head into the seasonally strong spring and summer selling seasons.”
The following information was filed by Patrick Industries Inc (PATK) on Thursday, April 25, 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.