ELKHART, Ind. – Patrick Industries, Inc. (NASDAQ: PATK), a major manufacturer and distributor of building and component products for the recreational vehicle, manufactured housing and industrial markets, reported its financial results for the fourth quarter and for 2016.
Net sales for the fourth quarter of 2016 increased $75.2 million or 30 percent, to $323.9 million from $248.7 million in the same quarter of 2015. The increase was primarily attributable to a 29 percent increase in the company's revenue from the RV industry, which reflected the incremental contribution from acquisitions completed in 2015 and 2016 and industry growth. According to industry sources, RV industry wholesale unit shipments increased approximately 19 percent in the fourth quarter of 2016 compared to the prior year. Sales to the RV industry represented 74 percent of the company's fourth quarter 2016 sales.
Revenue from the MH industry, which represented 14 percent of the company's fourth quarter 2016 sales, increased 28 percent. According to industry sources, wholesale unit shipments in the MH industry rose approximately 15 percent from the fourth quarter of 2015.
Additionally, sales to the industrial markets increased 40 percent compared to the prior year period. The industrial market sector – primarily residential housing and non-residential construction spending – accounted for 12 percent of the company's fourth quarter 2016 sales. New housing starts in the fourth quarter of 2016 increased approximately 9 percent compared to the prior year.
"Our fourth quarter revenues were in line with the strong seasonal demand patterns in the RV and MH industries as well as continued penetration into the industrial market,” said Patrick CEO Todd Cleveland. “We were able to grow both our top and bottom line and successfully execute on our strategic and operational initiatives, which included the acquisitions of Sigma Wire International, LLC and KRA International, LLC in December 2016, investing in our strategic capital expenditure program, and our continued expansion plans in certain customer-concentrated regions of the country.”
"In terms of wholesale unit shipments, the RV market experienced the best fourth quarter and the highest level of annual shipments in more than 40 years," stated Andy Nemeth, president. "Retail sales of towable and motorized units, on a combined basis, grew 10% in 2016 based on industry data. Demand in this market continues to expand, supported by favorable demographic trends and we continued our focus on positioning ourselves to be able to fully support our customer base with resources and capacity."