ELKHART, IN - Wood component and cabinetry builder Patrick Industries, Inc. (NASDAQ: PATK), a major manufacturer and distributor of building products for recreational vehicled manufactured housing, saw earnings leap in its latest quarterly report.
Net sales for the fourth quarter of 2012 increased 35.6% to $106.1 million from the same quarter of 2011. Net income was $3.2 million. Net sales for the all of 2012 increased 42.1% to $437.4 million.
The increase came mostly from the RV industry sales, Patrick Industries said, with a 54% increase in that segment (59% for the year as a whole), which has been experiencing a recovery of its own.
In 2012, RV shipments rose 13.2% to 285,749 units, according to RVIA’s trade group figures.
This is the highest annual total for RV shipments since 2007.
Patrick says approximately $21.1 million of the revenue increase was from acquisitions in 2011 and 2012. RV industry sales represented approximately 68% of Patrick Industries fourth quarter sales.
In September 2011, Patrick Industries acquired A.I.A. Countertops manufactured products business. In December 2011 Patrick Industries acquired Performance Graphics in Elkhart, IN. In October 2012, Patrick Industries acquired Middlebury Hardwood Products, a Middlebury, a $33 million RV wood components firm. Earlier in the year, Patrick Industries acquired Decor Manufacturing of Tualatin, OR for $4.4 million, Gustafson Lighting in July 2012, and Creative Wood Designs in September 2012, spending $29 million on acquisitions in 2012, and $8 million on capital expenditures.
The growth in RV offset a decline in manufactured home component business, which represents 20% of Patrick's sales. That segment fell 10% in the fourth quarter,but rose 16% for the year as a whole.
Sales to the industrial market sector, which is mostly tied to the residential housing and commercial and retail fixture markets, accounted for 12% of Patrick's fourth quarter sales. The segment rose 36% as a result of new housing starts in the quarter. Patrick says sales in this segment lag new housing starts by six to nine months.
"We believe the newest member of our Patrick family, Middlebury Hardwoods, and the other acquisitions we have completed in the last two years will continue to bring new and innovative products to our customers," said Todd Cleveland, CEO.
Cleveland says Patrick spent $8 in capital expenditures last year, including replacement of its management information systems, the acquisition of a building in the Midwest to increase capacity and replacement and upgrade of existing production equipment at several plants.
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