Patrick Industries has reported its financial results for the fourth quarter and full year ended Dec. 31. Net sales for the fourth quarter of 2019 increased $18.3 million, or 3 percent, to $549.5 million from $531.2 million in the same quarter of 2018. The increase in the fourth quarter was primarily attributable to industry growth in our housing and industrial markets, acquisitions, and market share gains, and was partially offset by wholesale unit shipment declines in the RV and marine markets.
RV industry revenues represented 54 percent of fourth quarter 2019 sales and decreased 4 percent from the fourth quarter of 2018, compared to an 8 percent decrease in RV industry wholesale unit shipments;
Manufactured home industry revenues represented 20 percent of fourth quarter 2019 sales and increased 50 percent compared to the previous year, with a 9 percent increase in manufactured home industry wholesale unit shipments.
“We are pleased with our fourth quarter and full year performance, especially in light of the volatility experienced in all of our primary markets,” said Andy Nemeth, president and CEO. “Our team’s efforts reflect tremendous focus on executing on strategic initiatives across all of our end markets, driving operational efficiencies and cost reductions to optimize and position our cost structure for 2020, leveraging synergies from new acquisitions and across our business units, and delivering market share gains. While our leisure lifestyle markets, comprised of RV and marine, continued to feel the impact of reductions in wholesale unit production levels to better align with retail demand, our housing and industrial markets exhibited positive momentum as we finished 2019.”
Net sales for 2019 increased $74 million, or 3 percent, to $2.34 billion from $2.26 billion in 2018. The increase in 2019 was primarily attributable to acquisitions and market share gains, which were partially offset by industry declines in three of the four primary markets served.
RV industry revenues represented 55 percent of 2019 sales and decreased 10 percent from 2018, compared to a 16 percent decrease in RV industry wholesale unit shipments. Our RV content per wholesale unit for 2019 increased 7 percent to $3,170 from $2,965 for 2018;
Manufactured home revenues represented 19 percent of 2019 sales and increased 59 percent compared to the prior year, with a 2 percent decrease in MH industry wholesale unit shipments. Our MH content per wholesale unit for 2019 increased 62 percent to $4,616 from $2,849 for 2018
Total assets increased $239.8 million to $1.47 billion at Dec. 31, from $1.23 billion at Dec. 31, 2018, primarily reflecting net cash proceeds from the company’s senior notes offering, after the pay down of existing debt, and the first quarter 2019 recognition of operating lease right-of-use assets related to the company’s adoption of the new lease accounting standard as of Jan. 1 (totaling $93.5 million as of Dec. 31).
“As we enter fiscal 2020 and beyond, we believe we are well-positioned to drive our business and strategic plan and execute off of our operational and financial platform,” said Nemeth. “The capital capacity and flexibility provided by both the senior note offering and the amendment and maturity extension of our credit facility that we completed in the third quarter of 2019 position us with the dry powder to continue to execute on our long-term strategic growth initiatives and disciplined capital allocation strategy, which in the fourth quarter also included the payment of a $0.25 per share cash dividend to our shareholders.”
