Patrick Industries has reported its financial results for the second quarter and six months ended June 30.
Net sales for the second quarter of 2019 increased $8.3 million, or 1 percent, to $613.2 million from $604.9 million in the same quarter of 2018. The increase in the second quarter was primarily attributable to acquisitions and market share gains, which was partially offset by quarter-over-quarter shipment declines in our primary markets.
Patrick’s revenues from the RV industry, which represented 56 percent of second quarter 2019 sales, decreased 13 percent from the second quarter of 2018, compared to a 14 percent decrease in RV industry wholesale unit shipments, as estimated by the company.
“The diversification of our market portfolio positively impacted our second quarter results and helped to partially offset RV market volatility,” said Andy Nemeth, president. “We remain optimistic about RV industry shipments in anticipation of the upcoming RV dealer show season, based on the combination of sustained retail demand and lower inventory levels resulting from continued dealer inventory recalibration.”
Revenues from the marine industry, which represented 14 percent of second quarter 2019 sales, increased 39 percent over the second quarter of 2018, while estimated marine powerboat retail unit shipments decreased by approximately 6 percent.
Revenues from the manufactured housing industry, representing 18 percent of second quarter 2019 sales, increased 56 percent compared to the prior year, with a 3 percent decrease in MH industry wholesale unit shipments, as estimated by the company, compared to the second quarter of 2018.
For the second quarter of 2019, Patrick reported operating income of $45.2 million, a decrease of 15 percent, or $7.9 million, from $53.1 million reported in the second quarter of 2018. Net income in the second quarter of 2019 was $27.4 million compared to $34.9 million in the second quarter of 2018.
“Our second quarter performance reflects our team’s ongoing efforts and discipline while we navigate continued aggressive dealer inventory rebalancing in the RV market sector and weather-related issues and conditions which hampered certain sectors of the marine and manufactured housing markets,” said Todd Cleveland, Chairman and CEO. “Our consolidated net sales and profitability were negatively impacted in the second quarter of 2019 by the double-digit decline in industry shipments, in the aggregate, in our four primary markets. … We continued to carry a higher operating overhead cost structure relative to revenues in certain distribution operating units, and manufacturing overhead in certain manufacturing units, in order to be in position to respond quickly to anticipated increased demand levels as the RV dealer inventories reach equilibrium and negative weather-related conditions improve.”
“Our market mix, which is now 56 percent RV and 44 percent non-RV, provides us with an attractive diversified platform to continue to execute on our operating model and invest in organic and strategic growth initiatives,” said Nemeth.
