Elkhart, Ind.-based supplier Patrick Industries Inc. reported a 60% year-over-year increase in sales for its first quarter, ended April 1.
Net sales grew to $551.8 million from $345.4 million in the same quarter of 2017. The increase was attributable to industry growth, acquisitions, geographic expansion efforts, and market share gains.
The company’s revenues from the RV industry, which represented 69% of first quarter sales, increased 53% as industry wholesale unit shipments increased approximately 13% in the first quarter of 2018 compared to the prior year. RV content per unit (on a trailing 12-month basis) for the first quarter increased approximately 17% to $2,414 from $2,063 for the first quarter of 2017.
Patrick reported operating income of $41.8 million, an increase of 75% or $17.9 million, from $23.9 million reported in the first quarter of 2017. Net income in the first quarter increased 72% to $30.1 million from $17.5 million in the first quarter of 2017, and net income per diluted share increased 60% to $1.20 from 75 cents.
Chief Executive Officer Todd Cleveland noted, “Our first quarter results reflect the continued execution and traction of our strategic and operational initiatives, coupled with the ongoing momentum in our primary markets. The investments we have made in production efficiency improvements, targeted geographic and product expansions, employee talent and retention initiatives, and strategic acquisitions in our core markets, are all generating the expected returns based on our model. During the first quarter, we completed four acquisitions – Metal Moulding and Aluminum Metals in February, and Indiana Marine Products and Collins & Company in March.”
“Both our leisure family lifestyle markets and our housing and industrial markets are fundamentally strong with early indicators and demographic drivers pointing towards continued growth,” stated President Andy Nemeth. “Based on the most recently available data, RV and marine retail sales and new housing formations are off to a solid start for the year, and match up well with recent historical seasonal trends and demand patterns. Attendance levels and excitement generated at the early spring industry retail and trade shows support our optimism about the sustainable long-term potential in our key markets, and we are committed to putting capital to work in alignment with our disciplined capital allocation strategy to drive improved performance and shareholder value while continuing to position ourselves to be able to fully support our customers.”
As part of its allocation strategy, the company invested $117 million in the aggregate in the first quarter of 2018 for acquisitions, stock repurchases, and capital expenditures. In addition, as previously announced in January, the board of directors approved a new stock repurchase program that authorized the purchase of up to $50 million of the company’s common stock over a 24-month period. Year-to-date through April 24, Patrick repurchased 720,695 shares at an average price of $57.56 per share for a total cost of $41.5 million.
“In anticipation of continued growth in 2018 and beyond in all four of our end markets, we are optimistic about the opportunities to drive our business and execute on our strategic growth plan, gain market share, expand operations in targeted regional territories, and drive shareholder value,” Cleveland further stated. “We expect to continue to make targeted capital investments to support our new business initiatives and maintain our balanced approach to leveraging our operating platform, introduce new products and product line extensions, and execute on our organic and acquisition-related objectives.”