Elkhart, Ind.-based component supplier Patrick Industries Inc. today (April 25) reported that 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 sales, decreased 9% from the first quarter of 2018. Patrick’s RV content per unit (on a trailing 12-month basis) increased approximately 30% to an estimated $3,131 from $2,414 for the first quarter of 2018.
Patrick reported first-quarter operating income of $35.8 million, a decrease of 14%, or $6 million, from $41.8 million reported in the first quarter of 2018. Net income was $20.8 million compared to $30.1 million in the first quarter of 2018, and net income per diluted share was 90 cents and $1.20 for the first quarter of 2019 and 2018, respectively.
Chief Executive Officer Todd Cleveland 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 President Andy Nemeth. “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.”
To view the full report click here.