Patrick Industries reports Q4, 2018 results

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Patrick Industries’ net sales in the fourth quarter increased $55.6 million, or 12 percent, to $531.2 million, from $475.6 million in the same quarter of 2017. The increase was primarily attributable to acquisitions, product expansions and market-share gains.

Revenues from the RV industry, which represented 58 percent of fourth quarter 2018 sales, decreased 6 percent from the prior year period, compared with RV industry wholesale unit shipments, which decreased approximately 17 percent for the same period.

Revenues from the marine industry, which represented 15 percent of fourth quarter sales, increased 121 percent over the fourth quarter of 2017, while powerboat retail shipments declined approximately 7 percent.

Fourth quarter 2018 marine retail shipment declines were concentrated in the aluminum and fiberglass sectors, with strong growth in the pontoon and the ski and wake sectors, compared to the prior year period.

Revenues from the MH industry, representing 14 percent of fourth quarter 2018 sales, increased 26 percent compared to the prior year; MH wholesale unit shipments declined approximately 9 percent from the fourth quarter of 2017.

The decline in MH wholesale shipments reflected the negative impact of disruptive weather events in the fourth quarter of 2018 in the southern and southeastern regions of the country.

Revenues from the industrial market, which accounted for 13 percent of the company's fourth-quarter sales, increased 26 percent compared to the prior year. New housing starts in the fourth quarter of 2018, as estimated by the company, were relatively flat compared to the prior year.

Patrick reported operating income of $38.9 million, an increase of 14 percent or $4.8 million, from $34.1 million reported in the fourth quarter of 2017. Net income was $27 million, compared with $29 million in the fourth quarter of 2017, and net income per diluted share was $1.15 and $1.16 for the fourth quarter of 2018 and 2017, respectively.

“Our fourth quarter and full year 2018 financial and operational performance is a reflection of a total team effort in which we continued to execute on our strategic and operational initiatives, including expanding our product portfolio, making targeted geographic and product expansions, and completing nine acquisitions during the year,” said chairman and CEO Todd Cleveland in a statement.

“Additionally, we continued to focus on managing and leveraging our cost structure, executing on synergies and driving efficiencies across all functions and aspects of our organization.”

Net sales for 2018 increased $627.4 million, or 38 percent, to $2.3 billion from $1.6 billion in 2017. The increase was primarily attributable to acquisitions, market share gains and industry growth in the marine, MH and industrial markets.

The company's revenues from the RV industry, which represented 63 percent of 2018 sales, increased 27 percent; RV industry wholesale unit shipments declined approximately 4 percent compared to the prior year.

Revenues from the marine industry, which represented 12 percent of 2018 sales, increased 143 percent compared with the prior year on industry powerboat retail shipments that increased approximately 2 percent.

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