Patrick Industries, Inc. Reports First Quarter 2013 Financial Results

    Patrick Industries, Inc. Reports First Quarter 2013 Financial Results

PR Newswire

ELKHART, Ind., April 25, 2013

ELKHART, Ind., April 25, 2013 /PRNewswire/ --Patrick Industries, Inc.
(NASDAQ: PATK), a major manufacturer and distributor of building and component
products for the recreational vehicle ("RV"), manufactured housing ("MH") and
industrial markets, today reported its financial results for the first quarter
ended March 31, 2013. 

Net sales for the first quarter of 2013 increased $39.4 million or 38.4%, to
$142.1 million from $102.7 million in the first quarter of 2012. The increase
was primarily attributable to a 51% increase in the Company's revenue from the
RV industry, which represented approximately 75% of its first quarter 2013
sales, an increase of 6% in the Company's revenues from the MH industry, and a
17% increase in revenues from the industrial markets. The Company estimates
that RV industry wholesale unit shipments increased approximately 12% in the
first quarter of 2013 compared to the first quarter of 2012. Additionally,
the Company estimates that wholesale unit shipments in the MH industry, which
represented approximately 14% of first quarter 2013 sales, rose approximately
5% from the first quarter of 2012. The industrial market sector, which is
primarily tied to the residential housing and commercial and retail fixtures
markets, accounted for 11% of the Company's first quarter 2013 sales, and
reflected an approximate 36% increase in new housing starts in the first
quarter of 2013 compared to the first quarter of 2012. The Company estimates
that approximately 60% 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 approximately six to nine months.

Excluding the revenue contributions of the 2012 acquisitions, the Company
estimates its organic growth in the first quarter of 2013 at approximately
17%, or $17.4 million of the total revenue increase, comprised of growth
resulting from market share gains of approximately 6% and growth tied to
overall industry growth of approximately 11%. The remaining $22.0 million of
the revenue increase in the first quarter of 2013 was attributable to the
incremental contribution of acquisitions completed in 2012 (including related
market share and industry growth), resulting in incremental growth of
approximately 21%.

Todd Cleveland, President and Chief Executive Officer, said, "We are pleased
with our first quarter revenues which were bolstered by a strong start to the
year in the RV industry and positive indicators in the industrial markets.
Both the RV and industrial markets look to continue their growth into the
second quarter which we believe will also include a seasonal pickup in MH
shipments." Mr. Cleveland further noted, "Our team is highly motivated to
meet and exceed our customers' expectations as business conditions continue to
improve."

Patrick reported first quarter 2013 net income of $6.0 million or $0.55 per
diluted share, an increase of $1.0 million or $0.08 per diluted share, over
the net income of $5.0 million or $0.47 per diluted share in the first quarter
of 2012. The first quarter of 2013 includes the impact of a tax provision of
$3.8 million or $0.35 per diluted share at the full estimated combined federal
and state statutory rate of 39% compared to the first quarter of 2012 where
the Company carried a full valuation allowance against its deferred taxes and
had an effective tax rate of 0%. The first quarter of 2012 includes the
impact of a non-cash charge of $1.7 million or $0.16 per diluted share related
to mark-to-market accounting for common stock warrants. Exclusive of the
non-cash charge for stock warrant accounting and assuming the same full
estimated combined statutory tax rate of 39% in the first quarter of 2012, net
income would have been $4.1 million or $0.38 per diluted share.

"We have continued to report solid profitability on a quarterly basis and we
are excited about our first quarter results which were consistent with our
expectations including exceeding our first quarter 2012 reported net income
which had the benefit of a 0% effective tax rate," said Mr. Cleveland.

On February 22, 2013, the Company's Board of Directors authorized a stock
repurchase program for purchasing up to $10 million of the Company's common
stock from time to time through open market or private transactions over the
next 12 months. The timing and amount of purchases under the program will be
determined by management based upon market conditions and other factors. As
of April 19, 2013, the Company had repurchased 330,358 shares at an average
price of $13.90 per share for a total cost of approximately $4.6 million.

"We continue to focus on leveraging our operating position to drive
profitability with increased revenues and hold ourselves and our team members
accountable to the high standards that we have set internally as an
organization. Additionally, central to our organization's success is the
continued attention to bringing value to our customer base through value added
ingenuity, new and innovative product lines, and as always the highest quality
customer service. Our team continues to perform with a dedication to our core
values and executing our strategic initiatives with a goal of further
increasing growth and profitability consistent with our expectations of
continuously increasing shareholder value," stated Mr. Cleveland. 

About Patrick Industries
Patrick Industries, Inc. (www.patrickind.com) is a major manufacturer of
component products and distributor of building products serving the
recreational vehicle, manufactured housing, kitchen cabinet, household
furniture, fixtures and commercial furnishings, marine, and other industrial
markets and operates coast-to-coast through locations in 11 states. Patrick's
major manufactured products include decorative vinyl and paper laminated
panels, countertops, wrapped profile mouldings, slide out trim and fascia,
cabinet doors and components, hardwood furniture, interior passage doors,
exterior graphics, and slotwall panels and components. The Company also
distributes drywall and drywall finishing products, electronics, wiring,
electrical and plumbing products, cement siding, interior passage doors,
roofing products, laminate and ceramic flooring, shower doors, furniture,
fireplaces and surrounds, interior and exterior lighting products, and other
miscellaneous products.

Forward-Looking Statements
This press release contains certain statements related to future results, or
states our intentions, beliefs and expectations or predictions for the future,
which are forward-looking statements as that term is defined in the Private
Securities Litigation Reform Act of 1995. These forward-looking statements
involve a number of risks and uncertainties that could cause actual results to
differ materially from either historical or anticipated results depending on a
variety of factors. Potential factors that could impact results include: the
impact of any economic downturns especially in the residential housing market,
pricing pressures due to competition, costs and availability of raw materials,
availability of commercial credit, availability of retail and wholesale
financing for residential and manufactured homes, availability and costs of
labor, inventory levels of retailers and manufacturers, levels of repossessed
residential and manufactured homes, the financial condition of our customers,
retention and concentration of significant customers, the ability to generate
cash flow or obtain financing to fund growth, future growth rates in the
Company's core businesses, the ability to effectively manage the costs and the
implementation of the new enterprise resource management system, the
successful integration of acquisitions, stock price fluctuations, interest
rates, oil and gasoline prices, the outcome of litigation, adverse weather
conditions impacting retail sales, and our ability to remain in compliance
with our credit agreement covenants. In addition, national and regional
economic conditions and consumer confidence may affect the retail sale of
recreational vehicles and residential and manufactured homes. The Company
does not undertake to update forward-looking statements, except as required by
law. Further information regarding these and other risks, uncertainties and
factors is contained in the section entitled "Risk Factors" in the Company's
Annual Report on Form 10-K for the year ended December 31, 2012, and in the
Company's Form 10-Qs for subsequent quarterly periods, which are filed with
the Securities and Exchange Commission ("SEC") and are available on the SEC's
website at www.sec.gov.



                                                              FIRST QUARTER
(thousands except per share data)
                                                              ENDED
CONDENSED CONSOLIDATED STATEMENTS OF INCOME                   Mar.     Apr. 1,
                                                              31,
(Unaudited)                                                            2012
                                                              2013
NET SALES                                                     $        $
                                                              142,120  102,688
Cost of goods sold                                            119,684  86,254
 Gross profit                                           22,436   16,434
Operating expenses:
 Warehouse and delivery                                    4,536    3,674
 Selling, general and administrative                       6,969    4,918
 Amortization of intangible assets                         519      316
 Gain on sale of fixed assets                              (4)      -
 Total operating expenses                              12,020   8,908
OPERATING INCOME                                              10,416   7,526
 Stock warrants revaluation                                -        1,670
 Interest expense, net                                     552      845
Income before income taxes                                    9,864    5,011
 Income taxes                                          3,845    -
NET INCOME                                                   $      $  
                                                              6,019    5,011
BASIC NET INCOME PER COMMON SHARE                             $     $   
                                                              0.55     0.49
DILUTED NET INCOME PER COMMON SHARE                           $     $   
                                                              0.55     0.47
Weighted average shares outstanding - Basic                   10,904   10,219
 10,985   10,707
- Diluted



(thousands)
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL      Mar. 31,    Dec. 31,
POSITION
                                                    2013         2012
                                                    (Unaudited)
CURRENT ASSETS
 Cash and cash equivalents                         $   1,455  $    434
 Trade receivables, net                            32,955       17,858
 Inventories                                       52,355       46,992
 Deferred tax assets                              1,751        5,149
 Prepaid expenses and other                        2,091        3,237
 Total current assets                         90,607       73,670
Property, plant and equipment, net                  36,628       37,069
Goodwill and other intangible assets, net           29,062       29,581
Deferred tax assets                                 717          676
Deferred financing costs, net                       1,576        1,612
Other non-current assets                            844          861
 TOTAL ASSETS                                  $ 159,434    $ 143,469
CURRENT LIABILITIES
 Accounts payable                                  $  28,859   $  17,336
 Accrued liabilities                               9,244        11,816
 Total current liabilities                     38,103       29,152
Long-term debt                                      54,098       49,716
Deferred compensation and other                     3,110        3,193
 TOTAL LIABILITIES                             95,311       82,061
SHAREHOLDERS' EQUITY                                64,123       61,408
 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY    $ 159,434    $ 143,469





SOURCE Patrick Industries, Inc.

Website: http://www.patrickind.com
Contact: Julie Ann Kotowski, Patrick Industries, Inc., +1-574-294-7511,
kotowskj@patrickind.com
 
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