• Mon. Nov 23rd, 2020

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Key observer report: Patrick Industries, Inc. (NASDAQ: PATK)

On 13 March 2020, Patrick Industries, Inc. (NASDAQ: PATK) changed 10.98% to recent value of $33.56. The stock transacted 379068 shares during most recent day however it has an average volume of 199.95K shares. It spotted trading -47.87% off 52-week high price. On the other end, the stock has been noted 11.61% away from the low price over the last 52-weeks.

Patrick Industries, Inc. (PATK) recently stated its financial results for the fourth quarter and full year ended December 31, 2019.

Fourth Quarter 2019 Financial Results

Net sales for the fourth quarter of 2019 increased $18.3M, or 3%, to $549.5M from $531.2M in the same quarter of 2018. The increase in the fourth quarter was primarily attributable to industry growth in our housing and industrial markets, acquisitions, and market share gains, and was partially offset by wholesale unit shipment declines in the RV and marine markets.

RV industry revenues represented 54% of fourth quarter 2019 sales and reduced 4% from the fourth quarter of 2018, contrast to an 8% decrease in RV industry wholesale unit shipments;

Marine industry revenues represented 13% of fourth quarter 2019 sales and declined 13% from the fourth quarter of 2018, while marine powerboat industry wholesale unit shipments reduced between 18% and 20%, as estimated by the Company;

MH industry revenues represented 20% of fourth quarter 2019 sales and increased 50% contrast to the previous year, with a 9% increase in MH industry wholesale unit shipments; and

Industrial market revenues, which accounted for 13% of fourth quarter 2019 sales (and are tied primarily to residential housing, commercial construction, high-rise, hospitality, and institutional furniture markets), increased 6% contrast to the previous year, while new housing starts in the fourth quarter of 2019 increased 20% contrast to 2018.

For the fourth quarter of 2019, Patrick stated operating income of $36.0M, a decrease of 7%, or $2.9M, from $38.9M stated in the fourth quarter of 2018. Net income in the fourth quarter of 2019 was $20.0M contrast to $27.0M in the fourth quarter of 2018, and net income per diluted share was $0.86 and $1.15 for the fourth quarter of 2019 and 2018, respectively.  Fourth quarter 2018 net income included tax benefits associated with share-based compensation of $4.5M, or $0.19 per diluted share, with no comparable amount for the fourth quarter of 2019.

Andy Nemeth, President and Chief Executive Officer, stated, “We are happy with our fourth quarter and full year performance, especially in light of the volatility experienced in all of our primary markets. Our team’s efforts reflect tremendous focus on executing on planned initiatives across all of our end markets, driving operational efficiencies and cost reductions to optimize and position our cost structure for 2020, leveraging synergies from new acquisitions and across our business units, and delivering market share gains. While our leisure lifestyle markets, comprised of RV and marine, continued to feel the impact of reductions in wholesale unit production levels to better align with retail demand, our housing and industrial markets exhibited positive momentum as we finished 2019.”

2019 Financial Results

Net sales for 2019 increased $74.0M, or 3%, to $2.34B from $2.26B in 2018. The increase in 2019 was primarily attributable to acquisitions and market share gains, which were partially offset by industry declines in three of the four primary markets served.

RV industry revenues represented 55% of 2019 sales and reduced 10% from 2018, contrast to a 16% decrease in RV industry wholesale unit shipments. Our RV content per wholesale unit for 2019 increased 7% to $3,170 from $2,965 for 2018;

Marine industry revenues represented 14% of 2019 sales and increased 20% over 2018, while marine powerboat industry wholesale unit shipments reduced an estimated 12% to 14%, primarily within the aluminum fishing sector. Our Marine powerboat content per unit for 2019 increased 26% to an estimated $1,581 from $1,256 for 2018;

MH industry revenues represented 19% of 2019 sales and increased 59% contrast to the previous year, with a 2% decrease in MH industry wholesale unit shipments. Our MH content per wholesale unit for 2019 increased 62% to $4,616 from $2,849 for 2018; and

Industrial market revenues, which accounted for 12% of 2019 sales, increased 2% contrast to the previous year, while new housing starts in 2019 increased 3% contrast to 2018.

PATK has a gross margin of 18.10% and an operating margin of 6.60% while its profit margin remained 3.80% for the last 12 months. Its earnings per share (EPS) expected to touch remained -21.90% for this year while earning per share for the next 5-years is expected to reach at 6.10%.  The company has 29.23M of outstanding shares and 22.47M shares were floated in the market. According to the most recent quarter its current ratio was 2.8 that represents company’s ability to meet its current financial obligations. The price moved ahead of -36.52% from the mean of 20 days, -37.21% from mean of 50 days SMA and performed -28.93% from mean of 200 days price. Company’s performance for the week was -29.30%, -42.50% for month and YTD performance remained -35.99%.

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