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 Oct 26, 2017
ELKHART, Ind. – Patrick Industries Inc. has reported that net sales increased 34 percent in the third quarter ended Sept. 24.
Net sales for the third quarter of 2017 increased $103.3 million or 34 percent, to $407.5 million from $304.2 million in the same quarter of 2016. The increase was attributable to industry growth, acquisitions, geographic expansion efforts and market share gains. Patrick’s revenues from the RV industry, which represented 67 percent of third quarter 2017 sales, increased 29 percent. According to industry sources, RV industry wholesale unit shipments increased about 24 percent in the third quarter of 2017 compared to the prior year. Revenues from the MH industry, which represented 13 percent of third quarter 2017 sales, increased 24 percent compared to the prior year period. The company estimates that wholesale unit shipments in the MH industry rose about 11 percent from the third quarter of 2016.
For the third quarter of 2017, Patrick reported operating income of $30.2 million, an increase of 50 percent or $10.1 million, from the $20.1 million reported in the third quarter of 2016. Net income in the third quarter of 2017 increased 49 percent to $17.9 million from $12.1 million in the third quarter of 2016, and net income per diluted share increased 37 percent to $1.08 from $0.79. Third quarter 2017 net income per diluted share reflects the dilutive impact from the increase in weighted average shares outstanding from the 1.35 million share common stock offering completed in March 2017.
"We are pleased with our financial and operating performance in the third quarter, which reflects the continued strength in all of our primary markets, strategic acquisitions, targeted expansion opportunities and our focus on driving efficiency improvements, talent engagement and retention, and leveraging of our fixed costs,” Patrick CEO Todd Cleveland says. “Our team continues to work tirelessly as demand expectations continue to increase, and we remain poised to adapt and execute to serve and support the needs of our customers."
"We remain highly encouraged by the strong demographic trends and appeal of the convenience, affordability and recreational allure of the outdoor, leisure family-oriented lifestyle that continues to draw new consumers into the RV market," Patrick President Andy Nemeth says. “RV retail unit sales increases are aligned with increased wholesale production levels and support balanced retail inventories, and the positive momentum coming out of the recent RV manufacturers' annual open houses in September points towards continued growth. The marine powerboat retail market experienced gains over the prior year with unit sales up an estimated 3 percent in the first nine months of 2017, and the manufactured housing and industrial markets continue to be bolstered by low interest rates, improving consumer credit, and a strengthening economy and jobs environment. Additionally, the increasing attractiveness of the single-family manufactured housing option and the strength of multi-family urban living support these two building products-based markets."
Nine Months 2017 Financial Results
Net sales for the first nine months of 2017 increased $262.1 million or 29 percent to $1.2 billion from $898 million in the same period of 2016. For the first nine months of 2017, the company's revenues from the RV industry, which represented 69 percent of its nine months 2017 sales, increased 23 percent. According to industry sources, RV industry wholesale unit shipments increased about 17 percent in the first nine months of 2017 compared to the prior year.
Additionally, revenues from the MH industry, which represented 13 percent of the company's nine months 2017 sales, rose 29 percent compared to the prior year as wholesale unit shipments in this industry, as estimated by the company, increased about 15 percent.
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 third quarter of 2017 increased about 6 percent to $2,125 from $2,009 for the third quarter of 2016. The MH content per unit (on a trailing 12-month basis) for the third quarter of 2017 increased about 14 percent to an estimated $2,175 from $1,901 for the third quarter of 2016.
For the first nine months of 2017, Patrick reported operating income of $87.8 million, an increase of $19.1 million or 28 percent, from the $68.7 million reported in the first nine months of 2016. Net income in the first nine months of 2017 increased 35 percent to $56.7 million from $42 million in the first nine months of 2016, and net income per diluted share increased 26 percent to $3.47 from $2.76.
The company's nine months 2016 net income and net income per diluted share were retroactively increased by $1.3 million and $0.08, respectively, from the amounts previously reported, as a result of the adoption of the new accounting standard for employee share-based payments in the fourth quarter of 2016. For the first nine months of 2017, net income and net income per diluted share were increased by $4.6 million and $0.26, respectively, as a result of adopting this standard. Nine months 2017 net income per diluted share reflects the dilutive impact from the increase in weighted average shares outstanding from the previously mentioned common stock offering.
The company invested about $110.5 million, in the aggregate, for acquisitions and capital expenditures in the first nine months of 2017. Total debt, net of cash on hand, decreased $12.6 million to $253.5 million at Sept. 24, 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 2017, cash flows from operations and the investments in acquisitions and capital expenditures.
Patrick's total assets increased $191.3 million to $726.3 million at Sept. 24, 2017, from $535 million at Dec. 31, 2016, primarily reflecting the addition of acquisition-related assets, seasonality and overall growth.
"We intend to continue to put our strong cash flows and financing platform to work and invest in our overall business model and brands through acquisitions, capital expenditures, expansions and workforce planning, engagement and development initiatives to support our long-term strategic growth plan," Nemeth says.
"Our broad product offerings, innovative solutions and design and engineering capabilities, coupled with the recent acquisitions of Leisure Product Enterprises in April 2017, Wire Design in July 2017 and Baymont in September 2017 have afforded us the opportunity to continue to increase our value proposition to our customers, add capacity and content per unit, and further expand our presence as a key component supplier to the major industries we serve," Cleveland says. “As we look ahead to the remainder of 2017, and into 2018 and beyond, we believe that the strength of our servant leadership-based sales, operational and financial foundation, and customer first performance-oriented culture, when combined with the exceptional talent and passion of our more than 6,500 team members, will continue to position us to execute on our strategic plan to deliver strong growth on both the top and bottom line, drive shareholder value and exceed our customers' expectations.”