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Patrick Industries, Inc. Reports First Quarter 2016 Financial Results

ELKHART, Ind., April 28, 2016 /PRNewswire/ -- Patrick Industries, Inc. PATK, -1.97% a major manufacturer and distributor of building and component products for the recreational vehicle ("RV"), manufactured housing ("MH") and industrial markets, today reported its financial results for the first quarter ended March 27, 2016.

First Quarter 2016 Financial Results

Net sales for the first quarter of 2016 increased $55.2 million or 25%, to $278.6 million from $223.4 million in the same quarter of 2015. The increase was primarily attributable to a 25% increase in the Company's revenue from the RV industry, which reflected the incremental contribution from acquisitions completed in 2015 and in 2016, and industry growth. According to industry sources, RV industry wholesale unit shipments increased approximately 11% in the first quarter of 2016 compared to the prior year. Sales to the RV industry represented 78% of the Company's first quarter 2016 sales. Revenue from the MH industry, which represented 11% of the Company's first quarter 2016 sales, increased 23%. The Company estimates that wholesale unit shipments in the MH industry rose approximately 18% from the first quarter of 2015. Additionally, sales to the industrial markets increased 29% quarter over quarter. The industrial market sector, which is primarily tied to the residential housing and commercial and retail fixtures markets, accounted for 11% of the Company's first quarter 2016 sales. According to industry sources, new housing starts in the first quarter of 2016 increased approximately 14% compared to the prior year.

For the first quarter of 2016, Patrick reported operating income of $20.6 million, an increase of 32%, or $5.0 million, from the $15.6 million reported in the first quarter of 2015. Net income in the first quarter of 2016 increased 32% to $12.0 million from $9.2 million in the first quarter of 2015, while net income per diluted share increased 36% to $0.80 from $0.59.

The Company's RV content per unit (on a trailing twelve-month basis) for the first quarter of 2016 increased approximately 17% to $1,905 from $1,629 for the first quarter of 2015. The MH content per unit (on a trailing twelve-month basis) for the first quarter of 2016 increased approximately 5% to an estimated $1,808 from $1,718 for the first quarter of 2015.

Todd Cleveland, Chief Executive Officer, said, "Our first quarter results reflect the continued execution of our operating strategy to leverage our cost structure, coupled with growth in all three markets we serve. Overall, dealer and OEM sentiment in the RV industry remains positive, evidenced by a strong start to retail sales in the first two months of 2016 per industry sources. The MH industry is gaining strength as expected, and both our MH and industrial businesses continue to outperform their respective markets. In addition, our most recent acquisitions of Parkland Plastics, Inc. and The Progressive Group provide us the opportunity to enter into a new product space and to diversify our product offerings into new markets."

"Retail demand for towables and motorized units, on a combined basis, grew 7% in the first two months of 2016, reflecting the continued growth in popularity of the RV lifestyle, and the new and innovative RV designs and products that appeal to all buyer age groups that were brought to market," stated Andy Nemeth, President. "In addition, the MH industry had its strongest first quarter start since 2012, indicating continued positive momentum and increasing demand. Our industrial revenues increased significantly as we continue to position our industrial sales team with opportunities through acquisitions and innovative new products to penetrate the residential housing, retail, commercial, hospitality and institutional markets."

Operating cash flows in the first quarter of 2016 were approximately $14 million. While the Company invested approximately $42 million, in the aggregate, for acquisitions, stock repurchases and capital...


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