Patrick Industries has reported its financial results for the fourth quarter and full year ended Dec. 31, 2018, showing net sales for the fourth quarter increased $55.6 million, or 12 percent, to $531.2 million from $475.6 million in the same quarter of 2017.
The increase was primarily attributable to acquisitions, product expansions and market share gains. The company’s revenues from the RV industry, which represented 58 percent of fourth quarter 2018 sales, decreased 6 percent from the prior year period compared to RV industry wholesale unit shipments which decreased approximately 17 percent for the same period.
“Our fourth quarter and full year 2018 financial and operational performance is a reflection of a total team effort in which we continued to execute on our strategic and operational initiatives, including expanding our product portfolio, making targeted geographic and product expansions, and completing nine acquisitions during the year,” said Todd Cleveland, chairman and CEO. “Additionally, we continued to focus on managing and leveraging our cost structure, executing on synergies, and driving efficiencies across all functions and aspects of our organization.”
Revenues from the manufactured housing industry, representing 14 percent of fourth quarter 2018 sales, increased 26 percent compared to the prior year, while MH wholesale unit shipments declined approximately 9 percent from the fourth quarter of 2017. The decline in MH wholesale shipments reflected the negative impact of disruptive weather-related events in the fourth quarter of 2018 in the southern and southeastern regions of the country.
For the fourth quarter of 2018, Patrick reported operating income of $38.9 million, an increase of 14 percent or $4.8 million, from $34.1 million reported in the fourth quarter of 2017. Net income in the fourth quarter of 2018 was $27 million compared to $29 million in the fourth quarter of 2017.
“The diversification of our market presence over the past several years in alignment with our strategic plan has helped to further balance our revenue stream and offset volatility in the RV market,” said Andy Nemeth, president. “The fourth quarter marked the third consecutive quarter where we saw year-over-year declines in RV wholesale shipments as RV OEMs continued to aggressively adjust their production levels in tandem with the rebalancing of dealer inventories.”
Net sales for 2018 increased $627.4 million, or 38 percent, to $2.3 billion from $1.6 billion in 2017. The increase was primarily attributable to acquisitions, market share gains, and industry growth in the marine, MH and industrial markets. The company’s revenues from the RV industry, which represented 63 percent of 2018 sales, increased 27 percent, while RV industry wholesale unit shipments declined approximately 4 percent compared to the prior year.
The company’s RV content per unit for the full year 2018 increased 33 percent to $2,965 from $2,234 for 2017. Marine content per retail unit for the full year 2018 increased 139 percent to an estimated $1,270 from $532 for 2017. The MH content per unit for the full year 2018 increased 24 percent to $2,849 from $2,289 for 2017.
For 2018, Patrick reported operating income of $178.4 million, an increase of $56.5 million, or 46 percent, from the $121.9 million reported in 2017. Net income in 2018 increased 40 percent to $119.8 million from $85.7 million in 2017.
Patrick’s total assets increased $364.6 million to $1.2 billion at Dec. 31, 2018, from $866.6 million at Dec. 31, 2017, primarily reflecting the addition of acquisition-related assets and overall growth.
“We remain optimistic about the long-term fundamental demographics in the leisure lifestyle markets, and we continue to increase market penetration in our housing and industrial sectors, most notably through our recent acquisition of LaSalle Bristol,” said Cleveland.