Net sales for the first quarter increased $53.3 million, or 31.3%, to $223.4 million from $170.1 million in the same quarter of 2014. The growth was primarily attributable to a 35% increase in the company’s revenue from the RV industry, which represented 78% of first-quarter sales. Sales to the manufactured housing industry grew 18% while sales to the industrial markets were up 23%.
Net income in the first quarter increased 32.7% to $9.2 million, or 89 cents per diluted share, from $6.9 million, or 64 cents per diluted share, in the first quarter of 2014.
“We are pleased with our first-quarter revenue and profitability growth that is attributable to a solid start to the year in all three market sectors,” said President and CEO Todd Cleveland. “The RV industry began the year strong as expected, continuing the strength in order rates experienced in the fourth quarter of 2014 that exceeded typical seasonal patterns. We believe that this changing seasonal pattern reflected the OEMs’ goal to mitigate potential weather and transportation delays in the first quarter of 2015 in anticipation of expected retail demand following the strong dealer show season in the third and fourth quarters of 2014, while also better balancing their production schedules in order to maintain efficiencies.
“Overall OEM and dealer sentiment in the RV industry remains positive as we head into the height of the selling season in anticipation of strong retail traffic on dealer lots and expected continued year over year growth. Additionally, the MH industry appears to be gaining modest strength as expected, and both our MH and industrial businesses continue to outperform the markets.”
The company estimates its organic growth in the first quarter at approximately 9%, or $15.5 million of its total revenue increase. The remaining $37.8 million of the revenue increase in the first quarter of 2015 reflects the contribution of the acquisition of Better Way Partners, LLC d/b/a Better Way Products completed in February 2015, as well as the contribution of the acquisitions completed in 2014: Precision Painting Inc., Carrera Custom Painting Inc., Millennium Paint Inc., and TDM Transport Inc. (collectively, “Precision”) in June 2014; Foremost Fabricators LLC in June 2014; PolyDyn3 LLC in September 2014; and Charleston Corp. in November 2014.
The company’s RV content per unit (on a trailing 12-month basis) for the first quarter of 2015 was up approximately 19% to $1,629 from $1,364 for the first quarter of 2014.
Patrick reported operating income of $15.6 million in the first quarter of 2015, an increase of $3.8 million or 32.3%, from the $11.8 million reported in the first quarter of 2014.
The company also announced that it has expanded its existing credit facility to $250 million, while extending its maturity to 2020, and declared a 3-for-2 common stock split.
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