Patrick Industries (NASDAQ: PATK) reported Q3 EPS of $1.62, $0.34 better than the analyst estimate of $1.28. Revenue for the quarter came in at $700.7 million versus the consensus estimate of $671.76 million.

• Third Quarter 2020 Highlights (all metrics compared to Third Quarter 2019 unless otherwise noted)
• Net sales of $700.7 million increased 24% with strong demand in RV, marine and industrial markets
• Operating income of $59.8 million increased 60%
• Net income of $37.3 million increased 75%
• Diluted EPS of $1.62 increased 76%
• Strategic acquisitions of Inland Plywood, Synergy RV Transport and Front Range Stone

October 29, 2020 8:00 AM EDT

"Our leisure lifestyle markets continued to rebound in the third quarter with a continuation of positive secular trends and tailwinds in on-the-road domestic travel and outdoor activities," said Andy Nemeth, President and Chief Executive Officer. "Strong demand in our RV, marine and industrial markets resulted in improved profitability as we leveraged our fixed cost structure, despite direct labor inefficiencies due to the significant snap back in production levels which have exceeded pre-pandemic levels. The strategic acquisitions we completed in the third quarter of Inland Plywood, Synergy RV Transport and Front Range Stone capitalize on recent momentum, support customer growth and expand our product offerings in our end markets."

COVID-19 Business Impact

As previously disclosed, the Company suspended operations at certain of its facilities from late March 2020 through early May 2020 as a result of production shutdowns by certain OEM customers in response to the COVID-19 pandemic. The Company successfully implemented CDC, state and local safety best practices at its facilities as we began to increase production levels in early May, and we continue to provide a healthy and safe environment for our team members as they work to safely accommodate increased demand in our end markets.

Business Outlook

"Momentum in our RV and marine sectors is expected to remain strong, and our housing and industrial markets are experiencing tailwinds with low interest rates, an increase in home improvement activity, and urban to suburban and rural relocation trends," said Mr. Nemeth. "We have strategically and aggressively pulled forward certain capital expenditure initiatives to ensure that we are in the best position possible with continued available capacity to support and grow with our customers for the 2021 model season and beyond. Our strong cash flows and liquidity allow us to invest in our businesses, continue to deploy strategic capital, and capitalize on growth opportunities as they arise in support of expansion necessary to serve our primary end markets over the long-term."

For earnings history and earnings-related data on Patrick Industries (PATK) click here.