Patrick Industries Inc. reported that net sales during its fourth quarter, ended Dec. 31, 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.
Net income in the fourth quarter of 2018 was $27 million, or $1.15 per diluted share, compared to $29 million, or $1.16 per share the previous year.
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.
Operating income during the quarter was $38.9 million, an increase of 14% or $4.8 million, from $34.1 million reported in 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.”
Net sales for 2018 increased $627.4 million or 38%, to $2.3 billion from $1.6 billion in 2017. The company’s revenues from the RV industry, which represented 63% of 2018 sales, increased 27%.
Net income in 2018 increased 40% to $119.8 million, or $4.93 per diluted share, from $85.7 million, or $3.48 per share in 2017.
The company’s RV content per unit for the full year 2018 increased 33% to $2,965 from $2,234 for 2017.
“For fiscal 2019, we expect to continue to execute on our disciplined capital allocation strategy in alignment with maintaining an appropriate leverage position supported by our extremely strong cash flows,” said President Andy Nemeth stated. “We further remain focused on driving synergies from our acquisitions completed in the last two years, effectively managing our cost structure, and driving organic growth and market share gains in all of the end markets we serve. Our brand and market platform is well positioned to flex with industry trends to support existing and future generations focused on affordable housing and vacations, spending quality time with family and friends, and lifestyle experiences.”
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