Elkhart-based Patrick Industries Inc. (Nasdaq: PATK) is reporting second quarter net income of $700,000, compared to $27.4 million reported during the same period last year. Chief Executive Officer Andy Nemeth says production shutdowns, limited operations and disruptions in its end markets resulting from the coronavirus pandemic were the primary reasons for the sharp decrease.
Patrick says net sales for the second quarter decreased nearly 31% to $424 million compared to the same quarter in 2019.
Nemeth said, “We are pleased with our operating and financial performance during the second quarter and the tremendous flexibility and adaptability of our team as we navigated significant uncertainty and production shutdowns in both our leisure lifestyle and housing and industrial markets. In particular, the RV industry experienced a five-week production shutdown, while various marine OEMs had production shutdowns ranging from one to five weeks. Our team took quick, disciplined and focused actions to reduce our fixed cost structure to align with our revenue stream starting at the end of the first quarter and during the second quarter. This helped position us to mitigate significant headwinds caused by COVID-19 during the second quarter, while strengthening and solidifying our operating platform to address ongoing uncertainty related to the pandemic.”
Nemeth says the latter half of the second quarter saw rising demand in the RV, marine, and manufactured housing markets. Patrick says it benefited from increased interest from new consumers in addition to existing retail customers.
“We expect this momentum to continue into the second half of 2020. Additionally, we believe that the continued resilience and subsequent surge in retail demand in these markets have further reduced dealer inventories from what we believe were already at a low point heading into the 2020 selling season,” stated Nemeth.
You can view the full second quarter earnings report by clicking here.