Patrick Industries’ marine division has strong first quarter

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Patrick Industries reported sales of $56.4 million for its first quarter, a 10 percent increase over the same period a year ago. Net income was $20.8 million compared to $30.1 million in the first quarter of 2018.

The company said in a statement its marine sales, representing 15 percent of companywide sales for the first quarter, were up 99 percent compared to the same period a year ago. Patrick Industries made four acquisitions in the boating industry last year.

“Marine powerboat content per retail unit (on a trailing twelve-month basis) for the first quarter of 2019 increased 118% to an estimated $1,490 from $683 for the first quarter of 2018,” said the statement.

The companywide increase in sales was “primarily attributable to acquisitions and organic growth, which was partially offset by double-digit declines in RV and MH industry wholesale unit shipments,” said the statement. Sales for its recreational vehicle division, which represents 56 percent of companywide sales, fell 9 percent compared to the previous year, while sales in its manufacturing housing division were up 70 percent, largely due to acquisitions.

"RV and marine dealer sentiment remain positive and dealer shows and retail traffic are off to a solid start to the year," said Andy Nemeth, president of Patrick Industries, in the statement. "RV OEMs have continued to adjust their production levels through April as dealers have managed inventory weeks on hand over the past four quarters to better align with shorter delivery lead times resulting from OEM capacity increases. We anticipate that the industry is approaching a return to equilibrium in RV dealer inventories in the near term, which will position RV OEMs to be able to return to producing units more in tandem with expected retail demand."

Nemeth added that Patrick’s “diversified market presence in both marine and certain industrial sectors, where we outperformed the respective markets in the first quarter, has helped to offset the volatility in both the RV and housing markets.”