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 Jul 27, 2017
ELKHART, Ind. - Patrick Industries, Inc. has reported a 29 percent increase to net sales for the second quarter, including a 23 percent increase in revenues from the RV industry.
Net sales for the second quarter of 2017 increased $92 million or 29 percent, to $407.2 million from $315.2 million in the same quarter of 2016. The increase was attributable to industry growth, acquisitions, geographic expansion efforts and market share gains. The company's revenues from the RV industry, which represented 69 percent of second quarter 2017 sales, increased 23 percent. According to industry sources, RV industry wholesale unit shipments increased about 15 percent in the second quarter of 2017 compared to the prior year.
For the second quarter of 2017, Patrick reported operating income of $33.7 million, an increase of 20 percent or $5.7 million, from the $28 million reported in the second quarter of 2016. Net income in the second quarter of 2017 increased 25 percent to $21.3 million from $17 million in the second quarter of 2016, and net income per diluted share increased 15 percent to $1.28 from $1.11.
The company's adoption of the new accounting standard for employee share-based payments in the fourth quarter of 2016 required a retroactive adjustment to the income tax provision previously reported for the second quarter of 2016. As a result of this adjustment, the company's second quarter 2016 net income and net income per diluted share were increased by $0.3 million and $0.01, respectively. In addition, adoption of this standard increased the company's second quarter 2017 net income and net income per diluted share by $0.9 million and $0.05, respectively. Second quarter 2017 net income per diluted share also reflects the increase in weighted average shares outstanding from the common stock offering completed in March 2017.
"We are pleased with our overall operating and financial results in the second quarter," Patrick Chief Executive Officer Todd Cleveland says. "Our performance reflects the continued successful execution of our strategic growth plans, coupled with the continued positive momentum in the industries we serve. Our innovative solutions, design capabilities, expansion efforts and the acquisition of Leisure Product Enterprises in April 2017 have afforded us the opportunity to continue to increase our product offerings in all of our primary markets, and to further expand our presence as a key component supplier to the marine industry."
"Our results are consistent with the continued strong demand in all of our markets," Patrick President Andy Nemeth says. "RV retail unit shipments through the first five months of 2017 experienced double-digit growth with the continued trend toward more modest travel trailers and motorhomes, as these categories are continuing to lead both retail and wholesale unit growth. In addition, wholesale unit shipment growth in the MH industry is outpacing new housing starts growth, and the marine powerboat retail market is experiencing gains over the prior year with unit sales up an estimated 3 percent in the first six months of 2017, indicating continued positive momentum in the overall leisure lifestyle."
Net sales for the first six months of 2017 increased $158.8 million or 27 percent, to $752.6 million from $593.8 million in the same period of 2016. For the first six months of 2017, the company's revenues from the RV industry, which represented 70 percent of its six months 2017 sales, increased 20 percent. According to industry sources, RV industry wholesale unit shipments increased about 13 percent in the first six months of 2017 compared to the prior year.
The company's RV content per unit (on a trailing 12-month basis excluding revenues from the marine market which were previously included with RV revenues) for the second quarter of 2017 increased about 9 percent to $2,103 from $1,930 for the second quarter of 2016.
For the first six months of 2017, Patrick reported operating income of $57.6 million, an increase of $9 million or 19 percent, from the $48.6 million reported in the first six months of 2016. Net income in the first six months of 2017 increased 29 percent to $38.7 million from $29.9 million in the first six months of 2016, while net income per diluted share increased 22 percent to $2.40 from $1.97.
The company's six months 2016 net income and net income per diluted share were retroactively increased by $1.2 million and $0.07, respectively, from the amounts previously reported, as a result of the adoption of the employee share-based payment accounting standard. For the comparable 2017 period, net income and net income per diluted share were increased by $4.6 million and $0.27, respectively. Six months 2017 net income per diluted share also reflects the increase in weighted average shares outstanding from the previously mentioned common stock offering.
The company invested about $92.4 million, in the aggregate, for acquisitions and capital expenditures in the first six months of 2017. Total debt, net of cash on hand, decreased $17.5 million to $248.6 million at June 25, from $266.1 million at Dec. 31, 2016, reflecting the net proceeds of about $93.6 million from the company's common stock offering in March of 2017, cash flows from operations and the investments in acquisitions and capital expenditures.
Patrick's total assets increased $154.3 million to $689.3 million at June 25 from $535 million at Dec. 31, 2016, primarily reflecting the addition of acquisition-related assets, seasonality and overall growth.
"We are pleased with our first half 2017 financial and operating performance," Nemeth says. "We will continue to make investments in our workforce and in capacity initiatives consistent with our capital allocation strategy in order to both add scale in alignment with our customers' demand patterns and to grow our businesses and brands as we continue to strive to meet and exceed our customers' expectations. In addition, we look forward to strengthening our position and increasing our product offerings for our customers as we further expand our presence into the marine and other primary markets, and our expansion initiatives are taking hold and delivering results in line with our strategic plan."
"As we look ahead to the second half of 2017, and the expected continued growth in all four of our primary end markets, we are focused on continuing to drive strong growth on both the top and bottom line, make strategic acquisitions in our existing businesses and similar markets, reinvest in our business through capital expenditures and workforce planning and maximize efficiencies to support our long-term strategic growth initiatives," Cleveland says. "The capital capacity and flexibility provided by our recent equity offering and credit facility expansion provide us with a strong financial foundation and, when combined with the exceptional commitment and dedication of our 6,000+ team members, position us to focus on the execution of our strategic plan and to further drive shareholder value."