ELKHART, IN - Components and building products manufacturer and distributor Patrick Industries Inc. reported a 35 percent net sales increase, to $78.3 million for the fourth quarter fiscal ending Dec. 31. Patrick attributed much of the jump revenue increases in the RV industry, which accounted for approximately 60 percent of its fourth quarter sales.
The industrial market sector, which is primarily tied to the residential housing and retail fixture markets and accounted for 14 percent of Patrick's fourth quarter sales, saw a 23 percent increase in new housing starts in the quarter compared to the prior year.
Net sales for 2011 were $307.8 million, an 11 percent increase over the $278.2 million reported in 2010. The year-over-year increase was primarily attributable to the acquisitions completed in 2011. Patrick acquired Performance Graphics in December, A.I.A. Countertops, LLC in September and Praxis Group in June.
The industrial market sector, which accounted for 15 percent of the annual sales, saw new housing starts increase by approximately 3 percent for 2011. Among the products manufactured for this segment are components for the kitchen cabinet and residential furniture markets.
"We are pleased with our improved fourth quarter and full year profitability compared to 2010 as we are realizing the benefits of strategic and operational initiatives executed in late 2010 and 2011," Patrick Industries President and CEO Todd Cleveland said in a statement. "Our improved performance reflects a total team effort by our team members and the continued support of our customers and suppliers as we strive to build quality relationships and bring value added products to our customers in conjunction with our Customer First performance oriented culture.
"In 2011, as part of our overall strategic plan, we were able to successfully integrate acquired businesses to utilize our manufacturing and distribution capabilities to both grow our sales base and net income, and increase our market share and per unit content within the RV industry. We also expanded our existing product lines, both in our core markets and in related markets. In addition, during 2011 we invested over $7 million to complete the three acquisitions, and an additional $2.4 million for capital expenditures, which included spending related to the replacement of our current management information systems and enhancements to production line equipment at several of our manufacturing operations," Cleveland added.
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