Patrick Industries said a 45 percent jump in sales in the second quarter led to a 59 percent increase in net income, year-over-year.
In Q2 the company reported sales of $1.5 billion, compared with $1 billion during the same quarter last year. Net income in the recent quarter was $117 million, a 98 percent increase over the $59 million of a year ago.
The company said the sales jump was caused by a strong performance in what it calls its “leisure lifestyle” division and its sales into the housing market.
“We are pleased with our second quarter performance as our team continued to work closely with our customers across all end markets to support their production requirements and align with their schedules,” said Andy Nemeth, CEO. “We continued to leverage our investments in technology, automation and human capital to meet customer needs while maintaining a nimble posture that supports our ability to flex rapidly with changing customer demand. While we have seen subsiding pressures in the supply chain, our team continues to work tirelessly to ensure that we continue to be a priority option as a first-choice scalable solutions provider for our customers while maintaining our capacity and maneuverability.”
For the first half of the year Patrick Industries reported sales of $2.8 billion, an increase over the $1.9 billion last year, and its net income was $229 million, compared with $106.5 million.
Jeff Rodino, president, said, “In May, we welcomed Diamondback Towers into the Patrick family, which represents our continued strategic investment into the marine end market and related aftermarket and further solidifies our presence as the leading provider of ski and wake towers. Additionally, during the quarter, we saw the benefits of our investment of over $100 million in capital expenditures over the last 18 months, as our automation and technology initiatives are helping us leverage our labor resources to allow us to drive continued production efficiencies and strong returns.”
“Late in the second quarter we began to see a meaningful reduction in RV OEM wholesale unit production, signaling the start of a calibration of wholesale and retail RV unit shipments, which we believe reflects thoughtful discipline,” added Nemeth. “Our other markets, which represent 43% of our business, appear to have runway for continued strong results, supported by continued lean marine, MH and housing inventories. We believe Patrick’s diversified end markets, combined with our flexible and nimble operating model and highly variable cost structure, well position us to navigate through an uncertain macroeconomic environment. Additionally, our diligent focus on innovation, investments in infrastructure, and our disciplined capital allocation strategy are expected to continue to support our goal of delivering long-term value for our shareholders, team members, partners and communities.”