ELKHART, Ind. - Patrick Industries, Inc. (NASDAQ: PATK), a major manufacturer and distributor of building and component products for the recreational vehicle ("RV"), manufactured housing ("MH") and industrial markets, today reported its financial results for the first quarter ended April 1, 2012.

Net sales for the first quarter of 2012 were $102.7 million compared to $69.5 million in the same quarter of 2011, an increase of $33.2 million or 47.8%. The sales increase reflected a 57% increase in the Company's revenue from the RV industry and a 36% increase in revenue from the MH industry, which represented approximately 69% and 18% of first quarter 2012 sales, respectively. Approximately $11.6 million of the revenue improvement was attributable to acquisitions completed since June 2011, with the remaining $21.6 million increase primarily attributable to increased RV market penetration, improved residential cabinet and furniture business in the industrial market, and a 10% increase in quarterly wholesale unit shipments in the RV industry. Additionally, the Company estimates wholesale unit shipments in the MH industry increased approximately 25% from the first quarter of 2011. Sales to the industrial market sector, which is primarily tied to the residential housing and commercial and retail fixture markets and accounted for 13% of the Company's first quarter 2012 sales, increased 23% from the prior year period. The industrial market experienced a 19% increase in new housing starts in the quarter compared to the prior year period.

Patrick reported net income in the first quarter of 2012 of $5.0 million or $0.47 per diluted share, an increase of $6.2 million or $0.60 per diluted share, over the net loss of $1.2 million or $0.13 per diluted share in the first quarter of 2011. First quarter 2012 net income included a non-cash charge of $1.7 million or $0.16 per diluted share related to mark-to-market accounting for common stock warrants. The first quarter 2011 net loss was impacted by non-cash charges related to the refinancing of Patrick's former credit facility, including $0.6 million or $0.06 per diluted share for the write-off of the remaining unamortized loss on interest rate swaps that were terminated and paid off during the quarter and the write-off of $0.4 million or $0.04 per diluted share of financing costs, as well as a non-cash charge of $0.3 million or $0.03 per diluted share related to mark-to-market accounting for common stock warrants.

On March 30, 2012, the Company exercised its option to prepay 10%, or $770,000 in the aggregate, of the original principal amount of its secured senior subordinated notes due in 2016, at a price of 101% of the principal amount being prepaid plus accrued interest.

"We are pleased and energized by our improved first quarter revenue growth and profitability as we are realizing many of the benefits of strategic and operational initiatives executed over the past three years as well as the sacrifices, commitment, and dedication of our team members," said Todd Cleveland, President and Chief Executive Officer. "Our acquisition initiatives have contributed to our overall profitability and we believe the addition of key team members to the Patrick organization will continue to provide ongoing benefits as we continually focus on bringing value-added innovative products and services to our customers."

"As 2012 progresses, we anticipate the investments we made in our businesses in 2011, and the investments we plan to make during the year, will positively impact both our top and bottom line results. While we continue to face risks relating to the overall state of the economy and consumer confidence levels that could negatively impact our operating results, we believe that, with our leverage position at its lowest level since 1999 (as measured by our debt-to-EBITDA ratio), our strengthened balance sheet will aid us in withstanding any challenges that may arise. Our main focus in 2012 will be to execute on our organizational strategic agenda, which includes increasing market share and profitability by exploring targeted strategic acquisitions, driving deliverables in our 'Customer First' performance-oriented culture, and combining the value of high quality products with exceptional service to consistently meet and exceed the expectations of our customers. Additionally, we will continue to focus on leveraging our operating platform, balancing appropriate risks and opportunities, and maximizing efficiencies to support our long-term strategic growth goals," stated Mr. Cleveland.

 

(thousands except per share data)

 

FIRST QUARTER

ENDED

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

Apr. 1,

2012

Mar. 27,

2011

NET SALES

$ 102,688

$ 69,485

Cost of goods sold

86,254

61,595

Gross profit

16,434

7,890

Operating expenses:

Warehouse and delivery

3,674

3,113

Selling, general and administrative

4,918

3,857

Amortization of intangible assets

316

172

Gain on sale of fixed assets

-

(24)

Total operating expenses

8,908

7,118

OPERATING INCOME

7,526

772

Stock warrants revaluation

1,670

270

Interest expense, net

845

1,737

Income (loss) before income taxes

5,011

(1,235)

Income taxes

-

-

NET INCOME (LOSS)

$ 5,011

$ (1,235)

BASIC NET INCOME (LOSS) PER COMMON SHARE

$ 0.49

$ (0.13)

DILUTED NET INCOME (LOSS) PER COMMON SHARE

$ 0.47

$ (0.13)

Weighted average shares outstanding - Basic

10,219

9,452

- Diluted

10,707

9,452

(thousands)

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

Apr. 1,

2012

Dec. 31,

2011

(Unaudited)

CURRENT ASSETS

Cash and cash equivalents

$ 1,244

$ 550

Trade receivables, net

30,645

14,171

Inventories

29,562

27,503

Prepaid expenses and other

1,974

2,161

Total current assets

63,425

44,385

Property, plant and equipment, net

23,111

22,978

Goodwill and other intangible assets, net

18,621

15,834

Deferred financing costs, net

1,761

1,898

Other non-current assets

659

675

TOTAL ASSETS

$ 107,577

$ 85,770

CURRENT LIABILITIES

Current maturities of long-term debt

$ 1,000

$ 1,000

Accounts payable

23,491

10,915

Accrued liabilities

6,233

7,935

Total current liabilities

30,724

19,850

Long-term debt, less current maturities and discount

35,433

31,954

Deferred compensation and other

4,275

3,780

Deferred tax liabilities

1,344

1,344

TOTAL LIABILITIES

71,776

56,928

SHAREHOLDERS' EQUITY

35,801

28,842

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$ 107,577

$ 85,770

Source: Patrick Industries, Inc.

Have something to say? Share your thoughts with us in the comments below.