Elkhart, Ind.-based supplier Patrick Industries Inc. reported a 13% increase in net income for its fourth quarter, ended Dec. 31, on a 30% revenue gain boosted by a 29% jump in RV sales.
Net sales for the fourth quarter increased $75.2 million to $323.9 million from $248.7 million in the same quarter of 2015, primarily attributable to the company’s revenue from the RV industry, which reflected the incremental contribution from acquisitions completed in 2015 and 2016 and industry growth. Sales to the RV industry represented 74% of the company’s fourth-quarter sales.
Net income in the fourth quarter was $13.6 million compared with $12 million the year prior, while net income per diluted share increased 14% to 89 cents from 78 cents. Patrick reported operating income of $22.1 million during the quarter, an increase of 18% or $3.3 million, from the $18.8 million reported in the fourth quarter of 2015.
Patrick CEO Todd Cleveland said, “Our fourth quarter revenues were in line with the strong seasonal demand patterns in the RV and MH industries as well as continued penetration into the industrial market. We were able to grow both our top and bottom line and successfully execute on our strategic and operational initiatives, which included the acquisitions of Sigma Wire International LLC and KRA International LLC in December 2016, investing in our strategic capital expenditure program, and our continued expansion plans in certain customer-concentrated regions of the country. Additionally, we increased our overall content per unit in both the RV and MH industries and remain optimistic about the long-term growth potential in these industries as well as the industrial market.”
Net sales for the full year increased $301.6 million, or 33%, to $1.2 billion from $920.3 million in 2015. The company’s revenue from the RV industry, which represented 75% of its 2016 sales, increased 32%. Patrick’s RV content per unit for the full year increased 15% to $2,126 from $1,845 in 2015.
Net income in 2016 increased 32% to $55.6 million from $42.2 million in 2015, while net income per diluted share increased 34% to $3.64 from $2.72. For the year, Patrick reported operating income of $90.8 million, an increase of $20.9 million or 30%, from the $69.9 million reported in 2015.
Patrick reported that the company invested approximately $159.5 million, in the aggregate, for acquisitions, capital expenditures and stock repurchases in 2016, while total debt, net of cash on hand, increased $62.3 million to $266.1 million at Dec. 31, 2016 from $203.8 million at Dec. 31, 2015. Patrick’s total assets increased $153.4 million to $535.0 million at December 31, 2016 from $381.6 million at December 31, 2015, primarily reflecting the addition of acquisition-related assets and overall growth.
“Overall, we are pleased with our full year 2016 performance as our net sales exceeded $1.2 billion,” stated President Nemeth. “We were able to successfully integrate the acquisition of eight companies during the year, make strategic investments into our manufacturing facilities, and expand our geographic footprint in line with key customer capacity expansions, all in alignment with our strategic plan. Consumer optimism and confidence are strong and are aligned with our expectations as we seek to position the Company to aggressively continue to execute on our initiatives and maximize the potential of the markets we serve.”
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