PATRICK INDUSTRIES, INC. http://protraderdaily.com/register/
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The Announcement
Patrick Industries is a primary manufacturer of component products and is a distributor of buildings products serving different segments, through locations in 19 states. Wire Design is considered a specialized designer, engineer, and manufacturer of high-quality custom wire harnesses.
With this acquisition, the Company has the opportunity to meet demands of its customer base across different primary markets. The acquisition will be accretive to Patrick Industries' current portfolio of wire harness brands and the Companies and will enable it to continue capitalizing on its products and growth synergies.
Patrick Industries views this acquisition as a step to enhance its content per unit in both the RV and marine industries as it continues to add quality products to its portfolio. Following the previous acquisitions, the Company will deliver Wire Design with a financial and operational foundation that would enable it to capitalize on its core competencies. The acquisition of Wire Design included the acquisition of accounts receivable, inventory, prepaid expenses, and machinery and equipment, and was funded under the Company's existing credit facility. Patrick Industries will operate the business on a stand-alone basis under the original brand name, Wire Design.
Company Growth Prospects
In its Q1 FY17 results release on June 22, 2017, Patrick Industries reported revenues of $345.43 million and net earnings of $17.47 million. The Company's earnings in Q1 FY17 rose from Q1 FY16 where the Company reported net earnings of $12.03 million. Patrick Industries stated that a surge in earnings was observed despite a decline in operating and pretax margins, where the Company operating margin declined to 9.07% in Q1 FY17 from 9.28% in Q2 FY16.
On March 20, 2017, Patrick Industries announced that it has expanded the size and extended the maturity date of its existing credit facility. The Company announced that it has entered into a third amendment to its credit agreement, dated March 17, 2017, to expand its credit facility from $360 million to $450 million. Also, the maturity date for the credit facility was extended to March 17, 2022, from April 28, 2020
On May 01, 2017, Patrick Industries reported that it has completed the acquisition of Leisure Product Enterprises, LLC (LPE). LPE is a holding Company with three manufacturing subsidiaries, under its portfolio, namely, Marine Concepts/Design Concepts ("Marine Concepts"), Florida Marine Tanks ("FMT"), and Marine Electrical Products ("MEP"). Patrick Industries paid approximately $73.5 million for the acquisition and expected the transaction to be immediately accretive to its net income per share. LPE reported net earnings of $75 million for full-year FY16, where it primarily served the marine and industrial markets.
Last Close Stock Review
On Tuesday, July 18, 2017, the stock closed the trading session at $72.65, slipping 1.76% from its previous closing price of $73.95. A total volume of 50.87 thousand shares has exchanged hands. Patrick Industries' stock price rallied 16.05% in the last three months and 10.97% in the previous twelve months. The stock is trading at a PE ratio of 18.28. At Tuesday's closing price, the stock's net capitalization stands at $1.22 billion.
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