Profile: Patrick Industries Inc (PATK.O)

Patrick Industries, Inc. (Patrick), incorporated in 1961, is a manufacturer of component products and distributor of building products and materials to the recreational vehicle (RV) and manufactured housing (MH) industries. In addition, the Company is a supplier to certain other industrial markets, such as kitchen cabinet, household furniture, retail fixtures and commercial furnishings, marine, and other industrial markets. The Company manufactures a range of products, including decorative vinyl and paper panels, wrapped profiles moldings, cabinet doors and components, countertops, interior passage doors, exterior graphics and slotwall and slotwall components. The Company is also an independent wholesale distributor of pre-finished wall and ceiling panels, drywall and drywall finishing products, electronics, wiring, electrical and plumbing products, cement siding, interior passage doors, roofing products, laminate flooring, shower doors, furniture, fireplace and slide-out surrounds and fascia, and other miscellaneous products. It operates in two segments: manufacturing and distribution. In March 2012, it completed the acquisition of Decor Manufacturing, LLC. In July 2012, it acquired the business and certain assets of Elkhart. In September 2012, it acquired the business and certain assets of Creative Wood Designs, Inc. In October 2012, the Company acquired Middlebury Hardwood Products, Inc.

In June 2011, the Company acquired The Praxis Group. In September 2011, Patrick acquired A.I.A. Countertops, LLC. In December 2011, the Company acquired Performance Graphics. The Company has a nationwide network of manufacturing and distribution centers for its products. It maintains six manufacturing plants and four distribution facilities near its offices in Elkhart, Indiana, and operates nine other warehouse and distribution centers and eight other manufacturing plants in 11 other states. Through its manufacturing divisions, the Company manufactures a variety of products, including decorative vinyl and paper panels, wrapped moldings, stiles and battens, hardwood, foil and membrane pressed cabinet doors, drawer sides and bottoms, interior passage doors, slotwall and slotwall components, components for electronic desks, and countertops.

Patrick also provides value-added processes, including fabrication, edge-banding, drilling, boring and cut-to-size capabilities. The Company distributes pre-finished wall and ceiling panels, drywall and drywall finishing products, electronics, adhesives, cement siding, interior passage doors, roofing products, laminate flooring, and other miscellaneous products. During the year ended December 31, 2011, manufactured laminated panels contributed 55% of total sales. During 2011, the wiring, electrical and plumbing products division and the electronics division within the Company's Distribution segment contributed 26% and 20%, respectively, of total sales.

The Company’s primary manufacturing facilities utilize various materials, lauan, MDF, gypsum and particleboard, which are bonded by adhesives or a heating process to a number of products, including vinyl, paper, foil and high-pressure laminate. It also offers high-pressure laminate laminated to substrates, such as particleboard and lauan which has uses, including counter tops and cabinetry. The Company manufactures and fabricate solid surface, granite, and high-pressure laminates countertops for all of its primary markets, as well as slotwall and slotwall components for the retail store fixture markets. Roll-laminated products are used in the production of wall, cabinet, shelving, counter and fixture products with a range of finishes and textures.

Patrick manufactures three cabinet door product lines in both raised and flat panel designs, as well as square, shaker style, cathedral and arched panels. One product line is manufactured from raw lumber using solid oak, maple and other hardwood materials. Another line of doors is made of laminated fiberboard, and a third line uses membrane press technology to produce doors and components with vinyls. Several outside profiles are available on square, shaker style, cathedral, and arched raised panel doors and the components include rosettes, hardwood moulding, arched window trim, blocks and windowsills, among others. Its doors are sold mainly to the RV and MH industries. Patrick also markets to the cabinet manufacturers and ready-to-assemble furniture manufacturers. The Company’s vinyl printing facilities produces a range of decorative vinyls and is shipped in rolls ranging from 300-750 yards in length.