WEB NEWS Comments & Business Outlook
Third Quarter 2012 Results
Net sales for the third quarter of 2012 increased $35.5 million or 45.9%, to $112.9 million from $77.4 million in the same quarter of 2011.
The Company reported net income in the third quarter of 2012 of $6.6 million or $0.60 per diluted share, compared to net income of $4.5 million or $0.44 per diluted share in the third quarter of 2011. Third quarter 2012 net income was positively impacted by a net gain on the sale of fixed assets and on the acquisition of a business of $0.2 million or $0.02 per diluted share and a non-cash credit of $0.1 million or $0.01 per diluted share related to mark-to-market accounting for common stock warrants. Third quarter 2011 net income included a non-cash credit of $0.1 million or $0.01 per diluted share related to stock warrant accounting.
"We are pleased by our third quarter revenue and profitability growth as we continue to increase our market share in the primary markets we serve through new product introductions, line extensions, and the realization of our strategic and operational initiatives that are an integral part of our 'Customer First' culture and mission," said Todd Cleveland , President and Chief Executive Officer. "In addition, we believe the newest members to our Patrick family, Gustafson Lighting and Creative Wood Designs, and the other acquisitions we have completed since August 2010 will continue to provide positive contributions to our operating profitability and allow us to gain additional penetration in the RV and industrial market sectors."
Acquisition Activity
ELKHART, Ind., Sept. 14, 2012 /PRNewswire / -- Patrick Industries, Inc. (NASDAQ: PATK) (the "Company") announced today the acquisition of the business and certain assets of Creative Wood Designs, Inc. ("Creative"), a manufacturer of hardwood furniture including interior hardwood tables, chairs, dinettes, trim, fascia, mouldings, and other miscellaneous products for the recreational vehicle ("RV") industry. Creative, based in Ligonier, Indiana and with 2012 annual revenues expected to be approximately $18 million, marks Patrick's sixth acquisition since June 2011 and the third this year.
"The acquisition of Creative Wood Designs, along with the other businesses we have acquired over the past 15 months, will allow Patrick to further expand its presence in the RV market and increase our product offerings, market share, and per unit content," stated Todd Cleveland, President and Chief Executive Officer. "In addition, we are excited to leverage our operational talent and expertise, particularly as it relates to our own custom hardwood manufacturing knowledge and processes, with those of Creative. Creative is a major supplier in the RV hardwood furniture market and will be an asset to our organization as we continue to focus on providing new and innovative products to our customer base."
The business will continue to operate on a stand-alone basis under the Creative Wood Designs brand name in its existing 250,000 square foot facility in Ligonier. The purchase price for the assets was approximately $5.7 million, including a contingent payment based on future performance, and was funded under the Company's revolving credit facility. The acquisition is expected to be immediately accretive to earnings per share.
"Creative is a natural fit with Patrick's existing RV and commercial businesses as it brings many competitive advantages to our Company, including high-quality custom-built product lines, strategic sales and supplier relationships, exceptional customer service, industry experience, and breadth and depth of products," said Mr. Cleveland. "The strength and dedication of Creative's management team, with more than 25 years of industry and operational experience, and its long-standing trusted customer relationships will be an asset to our organization as we continue to capitalize on our core competencies and execute on our strategic initiatives."
Comments & Business Outlook
Second Quarter 2012 Results
Net sales for the second quarter of 2012 increased $33.0 million or 39.9%, to $115.6 million from $82.6 million in the same quarter of 2011.
The Company reported net income in the second quarter of 2012 of $13.3 million or $1.22 per diluted share, compared to net income of $3.7 million or $0.36 per diluted share in the second quarter of 2011. Second quarter 2012 net income was positively impacted by a non-cash credit of $6.7 million or $0.61 per diluted share related to the reversal of the deferred tax valuation allowance discussed below, which was partially offset by a non-cash charge of $0.1 million or $0.01 per diluted share related to mark-to-market accounting for common stock warrants.
"We continue to focus on growing our market share in all three of our primary markets through new product introductions, line extensions, and innovative creativity and expertise from our sales team, product managers, and in-house design department that capitalize on our 'Customer First' culture and mission," said Todd Cleveland , President and Chief Executive Officer. "In addition, we believe the acquisitions completed since June 2011 will continue to provide positive contributions to our operating profitability and allow us to gain additional penetration in the RV and industrial market sectors."
"We are pleased with our operational and financial performance through the first half of 2012 and continue to execute on our organizational strategic agenda by making targeted capital investments and acquisitions, including our recently announced acquisition of Gustafson Lighting in Elkhart , which represents our fifth acquisition in thirteen months," said Mr. Cleveland. "We remain focused on strategically leveraging our operating platform, resources, personnel, liquidity, and expertise to bring the highest level of quality products and service to our customers, which will in turn drive shareholder value."
Comments & Business Outlook
First Quarter 2012 Results
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%
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.
"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.
