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Recreational vehicle and manufactured housing supplier Patrick Industries Inc. showed a profit for its second quarter, as revenue from American Hardwoods and Adorn Holdings Inc., both acquired last year, along with cost-cutting measures helped offset market weakness.
“Moving into the second half of the year, we plan to mitigate the slowness in the RV and MH industries through continued focus on cost containment, continuous improvement, and lean operating initiatives at all levels of the organization to maximize our improved market position gained from the Adorn acquisition,” said Todd Cleveland, president and COO of the Elkhart, Ind.-based firm.
Patrick reported net income of $1.8 million in the second quarter, ended June 29, compared with a net loss of $1.3 million in the year-ago period while sales dipped to $109.8 million from $113.1 million.
The company noted that results included pre-tax restructuring and other expenses of approximately $1.4 million related to the Adorn acquisition, a pre-tax gain on the sale of an idled California facility of approximately $4.2 million and pre-tax restructuring and other acquisition and financing related costs of approximately $2.1 million.
For the first six months, Patrick reported a net loss of approximately $12,000 compared to a net loss of $1.9 million a year ago and sales rose to $220.8 million from $191.3 million.
CEO Paul Hassler noted that the Adorn acquisition provided “significant synergies,” and that Patrick has been diligent in consolidating operations to improve efficiency.
“When we first purchased Adorn, we felt this was a transformational event for both companies, and the first important step in Patrick Industries becoming the premier manufacturer and distributor of building and component products to the RV and MH industries, and we are pleased with our progress so far,” he said. “Since the Adorn acquisition in May 2007, we have closed and consolidated ten operations and two operating cells and reduced our headcount by 640, including 70 salaried positions. We estimate our annualized cost savings in 2008 to be more than $3 million.”