The Recreation Vehicle Industry Association commissioned an Economic Impact Study on the RV industry, released on June 7, 2016. The study found that the RV industry contributes about $49.7 billion in economic output or 0.28 percent of the Gross Domestic Product. Through its production and distribution linkages, the industry impacts firms in 426 of the 440 sectors of the United States economy.
Nationwide, the industry is responsible for 216,170 jobs, both directly and inderectly, creating an economic impact of $37.5 billion. The full study results, along with each individual state and congressional district's economic impact is available on the website by clicking here .
Thu Feb 16, 2017
ELKHART, Indiana - Patrick Industries, Inc. has reported a 30 percent increase for the fourth quarter and a 33 percent increase for the full year ended Dec. 31, 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 about 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 about 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, which is tied primarily to 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 about 9 percent compared to the prior year.
For the fourth quarter of 2016, Patrick reported operating income of $22.1 million, an increase of 18 percent or $3.3 million, from the $18.8 million reported in the fourth quarter of 2015. Net income in the fourth quarter of 2016 increased 13 percent to $13.6 million from $12 million in the fourth quarter of 2015, while net income per diluted share increased 14 percent to $0.89 from $0.78.
"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," Patrick CEO Todd Cleveland says. "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. Additionally, we increased our overall content per unit in both the RV and MH industries and remain optimistic about the long-term growth potential in these industries as well as the industrial market."
"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," Patrick President Andy Nemeth says. "Retail sales of towable and motorized units, on a combined basis, grew 10 percent 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."
Net sales for 2016 increased $301.6 million or 33 percent, to $1.2 billion from $920.3 million in 2015. The company's revenue from the RV industry, which represented 75 percent of its 2016 sales, increased 32 percent. According to industry sources, RV industry wholesale unit shipments increased about 15 percent in 2016 compared to the prior year. Additionally, revenue from the MH industry, which represented 13 percent of the company's full year 2016 sales, rose 26 percent compared to the prior year as MH wholesale unit shipments increased by about 15 percent. Revenue from the industrial market increased 44 percent and benefited primarily from acquisitions and market share gains. The industrial market, which accounted for 12 percent of the company's 2016 sales, saw new housing starts increase by about 5 percent for 2016 compared to the prior year. The company estimates that about 50 percent of its industrial market sales are linked to the residential housing sector and its sales to the industrial markets generally lag new housing starts by about six to nine months, according to a press release.
The company's RV content per unit for the full year 2016 increased 15 percent to $2,126 from $1,845 in 2015. The company's MH content per unit for the full year 2016 increased 8 percent to $1,966 from $1,825 in 2015.
For 2016, Patrick reported operating income of $90.8 million, an increase of $20.9 million or 30 percent, from the $69.9 million reported in 2015. Net income in 2016 increased 32 percent to $55.6 million from $42.2 million in 2015, while net income per diluted share increased 34 percent to $3.64 from $2.72.
In the fourth quarter of 2016, the company adopted a new accounting standard related to employee share-based payments that requires excess tax benefits and deficiencies resulting from the vesting or exercise of such payments be recognized in the company's income tax provision rather than in additional paid-in capital. Adoption of the new standard requires a retroactive adjustment to the company's income tax provision previously reported for the first nine months of 2016. As a result of this adjustment, the company's previously reported nine months 2016 net income and net income per diluted share were increased by $1.3 million and $0.06, respectively, and such increases are reflected in the full year 2016 reported net income and net income per diluted share amounts. The adoption of this standard had no impact on reported net income and net income per diluted share for the fourth quarter of 2016.
The company invested about $159.5 million, in the aggregate, for acquisitions, capital expenditures and stock repurchases in 2016, while total debt, net of cash on hand, increased $62.3 million to $266.1 million at Dec. 31, 2016 from $203.8 million at Dec. 31, 2015. Patrick's total assets increased $153.4 million to $535 million at Dec. 31, 2016 from $381.6 million at Dec. 31, 2015, primarily reflecting the addition of acquisition-related assets and overall growth.
In 2016, the company repurchased 120,738 shares, in the aggregate, of its common stock at an average price of $43.18 for a total cost of $5.2 million under its stock buyback programs.
"Overall, we are pleased with our full year 2016 performance as our net sales exceeded $1.2 billion," Nemeth says. "We were able to successfully integrate the acquisition of eight companies during the year, make strategic investments into our manufacturing facilities and expand our geographic footprint in line with key customer capacity expansions, all in alignment with our strategic plan. Consumer optimism and confidence are strong and are aligned with our expectations as we seek to position the company to aggressively continue to execute on our initiatives and maximize the potential of the markets we serve."
"Looking ahead, we are well-positioned to run parallel with our customers as they expand their operations in anticipation of continued expected growth into 2017," Cleveland says. "With the ongoing focus on our organizational strategic agenda, the dedication of our over 4,800 talented team members and the support of all of our business partners, we look forward to continuing to serve our customer base, bring new, innovative products to the marketplace in the primary industries we serve and further drive shareholder value in 2017."