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 .
Tue Nov 6, 2018
Author: RV News Staff
Patrick Industries Inc. (PATK) reports net sales for the third quarter of 2018 increased $167.6 million or 41 percent, to $575.1 million from $407.5 million in the same quarter of 2017. In addition, the company’s board of directors has authorized a buyback of $50 million of its common stock. Year-to-date through Oct. 24, 2018, the company has repurchased 1,505,429 shares at an average price of $58.37 per share for a total cost of $87.9 million.
Patrick's revenues from the RV industry, which represented 62 percent of third quarter 2018 sales, increased 30 percent despite a decrease in RV industry wholesale unit shipments, as estimated by the company, of approximately 12 percent compared to the prior year.
The company’s report says the increase was attributable to industry growth in the marine, manufactured housing and industrial markets, acquisitions, geographic and product expansion efforts, and market share gains.
Net sales for the first nine months of 2018 increased $571.8 million or 49 percent to $1.7 billion from $1.2 billion in the same period of 2017. The company's revenues from the RV industry, which represented 65 percent of nine months 2018 sales, increased 41 percent on RV industry wholesale unit shipments that were flat, as estimated by the company, compared to the prior year.
For the third quarter of 2018, Patrick reports operating income of $44.7 million, an increase of 48 percent or $14.5 million, from $30.2 million reported in the third quarter of 2017. Net income in the third quarter of 2018 increased 56 percent to $27.9 million from $17.9 million in the third quarter of 2017, and net income per diluted share increased 60 percent to $1.15 from $0.72.
"We are pleased with our overall operating and financial results in the third quarter, which reflect strong operating execution within each of our end-markets and the continued realization of synergies related to acquired companies,” Chairman and CEO Todd Cleveland says. “During the third quarter, we completed the acquisition of Engineered Metals and Composites, another marine component supplier, marking our eighth acquisition overall this year. Our team remains focused on operational improvement, driving our disciplined strategic agenda and re-investing in the business for long-term growth."
"Our strategic growth initiatives and balanced, diversified revenue mix amongst our core markets have helped to offset volatility in the third quarter RV wholesale unit shipments," President Andy Nemeth says. "This volatility reflected a combination of normal seasonal trends and RV OEMs tactically flexing their production levels to aggressively balance dealer inventory levels. While this resulted in wholesale unit shipment declines in the quarter, the OEMs continue to position themselves for the upcoming 2019 selling season. Both RV and marine retail demand continues to grow year-over-year with solid demographic trends supporting the attractiveness of the leisure family-oriented lifestyle.”
Patrick's total assets increased $352.5 million to $1.2 billion at Sept. 30, 2018, from $866.6 million at Dec. 31, 2017, primarily reflecting the addition of acquisition-related assets and overall growth. The company invested $391.2 million, in the aggregate, in the first nine months of 2018 for acquisitions, stock repurchases and capital expenditures.
"We believe the discipline in the RV industry and benefits associated with the expected return to a more normalized seasonal pattern of RV wholesale production, in combination with the growth expectations in the marine, MH and industrial market sectors,” Nemeth says, “ will afford us the opportunity to continue to optimize our workforce and plant performance, and drive growth and value through the disciplined execution of our strategic growth plan and capital allocation strategy.”