Patrick Industries reported its financial results for the first quarter ending April 1, showing that net sales increased $206.4 million or 60 percent, to $551.8 million from $345.4 million in the same quarter of 2017.
“The investments we have made in production efficiency improvements, targeted geographic and product expansions, employee talent and retention initiatives, and strategic acquisitions in our core markets, are all generating the expected returns based on our model,” said Todd Cleveland, CEO of Patrick. “During the first quarter, we completed four acquisitions – Metal Moulding and Aluminum Metals in February 2018, and Indiana Marine Products and Collins & Company in March 2018.”
The increase was attributable to industry growth, acquisitions, geographic expansion efforts, and market share gains. The company’s revenues from the RV industry, which represented 69 percent of first quarter 2018 sales, increased 53 percent as industry wholesale unit shipments increased approximately 13 percent in the first quarter of 2018 compared to the prior year.
Revenues from the marine industry represented 8 percent of Patrick’s first quarter 2018 sales and more than tripled over the first quarter of 2017.
Patrick’s RV content per unit (on a trailing twelve-month basis) for the first quarter of 2018 increased approximately 17 percent to $2,414 from $2,063 for the first quarter of 2017.
For the first quarter of 2018, Patrick reported operating income of $41.8 million, an increase of 75 percent or $17.9 million, from $23.9 million reported in the first quarter of 2017. Net income in the first quarter of 2018 increased 72 percent to $30.1 million from $17.5 million in the first quarter of 2017.
“Based on the most recently available data, RV and marine retail sales and new housing formations are off to a solid start for the year and match up well with recent historical seasonal trends and demand patterns,” said Andy Nemeth, president of Patrick.
As part of its allocation strategy, the company invested $117 million in the aggregate in the first quarter of 2018 for acquisitions, stock repurchases, and capital expenditures.
