UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

( X )   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                  THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2000

                                       OR

(    )   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                  THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from .................. to ..................
Commission file number 0-3922

                            PATRICK INDUSTRIES, INC.
             (Exact name of registrant as specified in its charter)


          INDIANA                                       35-1057796
(State or other jurisdiction of                       (I.R.S.  Employer
 incorporation or organization)                       Identification No.)


                    1800 South 14th Street, Elkhart, IN 46516
                    (Address of principal executive offices)
                                   (ZIP Code)


                                 (219) 294-7511
              (Registrant's telephone number, including area code)


                                      NONE
              (Former name, former address and former fiscal year,
                          if changed since last report)

         Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. Yes X No

Shares of Common Stock Outstanding as of April 30, 2000:  5,273,266


                                       1



                            PATRICK INDUSTRIES, INC.


                                      INDEX


                                                                        Page No.

PART I:  Financial Information

  Unaudited Condensed Balance Sheets
    March 31, 2000 & December 31, 1999                                       3

  Unaudited Condensed Statements of Income
    Three Months Ended March 31, 2000 & 1999                                 4

  Unaudited Condensed Statements of Cash Flows
    Three Months Ended March 31, 2000 & 1999                                 5

  Notes to Unaudited Condensed Financial Statements                          6

  Management's Discussion and Analysis of Financial
    Condition and Results of Operations                                      8

PART II:  Other Information                                                 13

  Signatures                                                                14



                                       2



PART I:  FINANCIAL INFORMATION



                            PATRICK INDUSTRIES, INC.
                            CONDENSED BALANCE SHEETS


                                                         (Unaudited)
                                                          MARCH 31        DECEMBER 31
                                                           2000              1999
         ASSETS

                                                                 
CURRENT ASSETS
  Cash and cash equivalents                             $    380,722   $  6,686,182
  Trade receivables                                       25,833,400     18,498,685
  Inventories                                             45,700,435     42,039,348
  Prepaid expenses                                           765,055        663,189
                                                        ------------   ------------
         Total current assets                             72,679,612     67,887,404
                                                        ------------   ------------

PROPERTY AND EQUIPMENT, at cost                           91,887,941     90,450,403
  Less accumulated depreciation                           48,671,692     40,554,763
                                                        ------------   ------------
                                                          43,216,249     49,895,640
                                                                       ------------

DEFERRED TAX ASSETS                                          754,000          - - -
                                                        ------------   ------------

INTANGIBLE AND OTHER ASSETS                                6,724,023      8,420,056
                                                                       ------------

         Total assets                                   $123,373,884   $126,203,100
                                                        ============   ============


         LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
  Current maturities of long-term debt                  $  3,671,428   $  3,671,428
  Accounts payable, trade                                 19,969,236     11,155,999
  Accrued liabilities                                      4,073,581      5,506,326
                                                        ------------   ------------
Total current liabilities                                 27,714,245     20,333,753
                                                        ------------   ------------

LONG-TERM DEBT, less current maturities                   22,457,144     22,457,144
                                                        ------------   ------------

DEFERRED COMPENSATION OBLIGATIONS                          1,982,252      1,945,058
                                                        ------------   ------------

DEFERRED TAX LIABILITIES                                       - - -      1,900,000
                                                        ------------   ------------

SHAREHOLDERS' EQUITY
  Common stock                                            20,245,333     21,389,940
  Retained earnings                                       50,974,910     58,177,205
                                                        ------------   ------------
         Total shareholders' equity                       71,220,243     79,567,145
                                                        ------------   ------------

           Total liabilities and shareholders' equity   $123,373,884   $126,203,100
                                                        ============   ============

See accompanying notes to Unaudited Condensed Financial Statements.




                                       3





                            PATRICK INDUSTRIES, INC.
                    UNAUDITED CONDENSED STATEMENTS OF INCOME


                                                                          THREE MONTHS ENDED
                                                                                MARCH 31

                                                                          2000              1999

                                                                                 
NET SALES                                                             $  99,824,073    $ 107,352,034
                                                                      -------------    -------------

COST AND EXPENSES
  Cost of goods sold                                                     89,070,610       93,368,182
  Warehouse and delivery expenses                                         4,106,037        3,832,100
  Selling, general, and administrative expenses                           6,861,282        6,131,461
  Impairment charges                                                      6,937,163            - - -
  Interest expense, net                                                     313,633          366,335
                                                                      -------------    -------------
                                                                        107,288,725      103,698,078
                                                                      -------------    -------------


INCOME (LOSS) BEFORE INCOME TAXES                                        (7,464,652)       3,653,956

INCOME TAXES (CREDIT)                                                    (2,862,300)       1,443,300
                                                                      -------------    -------------

NET INCOME (LOSS) $ (4,602,352)                                       $   2,210,656
                                                                      =============    =============


BASIC AND DILUTED EARNINGS (LOSS)
         PER COMMON SHARE                                             $        (.86)   $         .38
                                                                      =============    =============

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING                                5,346,346        5,786,480


See accompanying notes to Unaudited Condensed Financial Statements



                                       4




                            PATRICK INDUSTRIES, INC.
                        UNAUDITED CONDENSED STATEMENTS OF
                                   CASH FLOWS


                                                                           THREE MONTHS ENDED
                                                                                MARCH 31
                                                                           2000         1999
                                                                               
CASH FLOWS FROM OPERATING ACTIVITIES
  Net income (loss)                                                   $(4,602,352)   $ 2,210,656
  Adjustments to reconcile net income to net cash
  provided by operating activities:
    Depreciation and amortization                                       2,464,823      2,061,724
    Impairment charges                                                  6,937,163          - - -
    (Gain) loss on sale of fixed assets                                     2,368       (642,876)
    Deferred income taxes                                              (2,654,000)         - - -
    Other                                                                 147,194         37,773

Change in assets and liabilities:
    Decrease (Increase) in:
          Trade receivables                                            (7,334,715)    (9,843,245)
          Inventories                                                  (3,661,087)     1,290,004
          Prepaid expenses                                               (101,866)        18,965
    Increase (Decrease) in:
          Accounts payable and accrued liabilities                      7,787,064      4,042,704
          Income taxes payable                                           (406,572)     1,518,088
                                                                      -----------    -----------
             Net cash provided by (used in) operating activities       (1,421,980)       693,793
                                                                      -----------    -----------

CASH FLOWS FROM INVESTING ACTIVITIES
  Capital expenditures                                                 (1,097,110)    (1,472,764)
   Proceeds from sale of fixed assets                                       2,000        852,676
   Other                                                                  (22,500)       (21,000)
                                                                      -----------    -----------
             Net cash (used in) investing activities                   (1,117,610)      (641,088)
                                                                      -----------    -----------

CASH FLOWS FROM FINANCING ACTIVITIES
  Reacquisition of common stock                                        (3,534,001)    (2,142,830)
  Proceeds from exercise of common stock options                            - - -          5,375
  Principal payments on long-term debt                                      - - -       (157,701)
  Cash dividends paid                                                    (210,549)      (234,321)
  Other                                                                   (21,320)       (36,992)
                                                                      -----------    -----------
             Net cash (used In) financing activities                   (3,765,870)    (2,566,469)
                                                                      -----------    -----------

             Decrease in cash and cash equivalents                     (6,305,460)    (2,513,764)

Cash and cash equivalents, beginning                                    6,686,182      3,704,693
                                                                      -----------    -----------

Cash and cash equivalents, ending                                     $   380,722    $ 1,190,929
                                                                      ===========    ===========

Cash Payments for:
  Interest                                                            $   638,240    $   111,140
  Income taxes                                                            176,611          7,711

See accompanying notes to Unaudited Condensed Financial Statements


                                       5



                            PATRICK INDUSTRIES, INC.
                NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

1.       In the opinion of the Company,  the  accompanying  unaudited  condensed
         financial statements contain all adjustments (consisting of only normal
         recurring  accruals and the  adjustment  for the  impairment of certain
         long-lived  assets as discussed in Note 5) necessary to present  fairly
         the financial position as of March 31, 2000, and December 31, 1999, and
         the results of  operations  and cash flows for the three  months  ended
         March 31, 2000 and 1999.

2.       Certain  information  and  footnote  disclosures  normally  included in
         financial  statements  prepared in accordance  with generally  accepted
         accounting  principles have been condensed or omitted.  It is suggested
         that these condensed  financial  statements be read in conjunction with
         the  financial  statements  and notes  thereto  included  in  Company's
         December  31,  1999  audited  financial  statements.   The  results  of
         operations  for the three month  periods  ended March 31, 2000 and 1999
         are not  necessarily  indicative  of the results to be expected for the
         full year.

3.       The inventories on March 31, 2000  and December 31, 1999 consist of the
         following classes:

                                                      March 31   December 31
                                                        2000       1999
           Raw materials                           $26,953,320   $23,286,250
           Work in process                           1,090,056     1,555,319
           Finished                                  5,066,072     4,668,813
                                                   -----------   -----------

              Total manufactured goods              33,109,448    29,510,382

           Distribution products                    12,590,987    12,528,966
                                                   -----------   -----------

              TOTAL INVENTORIES                    $45,700,435   $42,039,348
                                                   ===========   ===========

         The inventories are stated at the  lower of cost,  First-In,  First-Out
         (FIFO) method, or market.

4.       Stock options  outstanding are immaterial and had no effect on earnings
         per share.

         Earnings  per common  share for the  three  months ended March 31, 2000
         and 1999 have  been  computed  based on  the  weighted  average  common
         shares outstanding of 5,346,346 and 5,786,480 respectively.

5.       The  Company  recognized  a  non-cash  accounting  charge  in the first
         quarter of 2000 related to an impairment of certain  long-lived  assets
         as  required  by SFAS  121.  As a  result  of the  implications  of the
         downturn in the manufactured housing industry,  the competitive pricing
         adversely  affecting  margins  in certain  of the  Company's  operating
         units,  and  insufficient  efficiency  gains from  operational  changes
         implemented by management,  updated analyses were prepared to determine
         if there was  impairment  of any  long-lived  assets  primarily  in the
         Company's Wood and Other Segments.  The carrying values of these assets
         were calculated on the basis of discounted  estimated  future cash flow
         and resulted in a charge to operations of $6,937,163 or $.80 per share,
         net of tax.  This charge was  recognized  as an impairment of assets in
         the March 31,  2000  financial  statements.  The SFAS 121 charge had no
         impact on the Company's  2000 cash flow or its ability to generate cash
         flow in the future.  As a result of the SFAS 121  charge,  depreciation
         and  amortization  expense  related to these  assets  will  decrease in
         future periods.

6.       In April  2000 the  Company  decided to close one of its  cabinet  door
         manufacturing  facilities and  consolidate  its  operations  into other
         existing facilities. The Company expects to incur restructuring charges
         of approximately  $670,000, most of which is expected to be incurred in
         the second  quarter.  Accordingly,  no charges have been accrued in the
         March 31, 2000 financial statements.

7.       The Company's reportable segments are as follows:

         Laminating   -   Utilizes   various    materials    including   gypsum,
         particleboard,  plywood,  and fiberboard  which are bonded by adhesives
         or a heating  process to a number of products  including vinyl,  paper,
         foil, and high pressure laminate. These


                                       6



         laminated products are utilized to  produce furniture,  shelving, wall,
         counter,  and cabinet  products  with  a wide  variety of finishes  and
         textures.

         Distribution  - Distributes  primarily  pre-finished  wall  and ceiling
         panels, particleboard,  hardboard, and vinyl siding, roofing  products,
         passage doors, building hardware, insulation, and other products.

         Wood - Uses raw  lumber including solid oak, other hardwood  materials,
         and laminated  particleboard or plywood to produce cabinet door product
         lines.

         Other  -  Includes  aluminum  extrusion,  painting  and   distribution,
         manufacture   of   adhesive   products,    pleated   shades,    plastic
         thermoforming, and manufacturer of laminating equipment.

         The table below presents  unaudited  information about the revenue  and
         operating income of those segments:



                                                                     THREE MONTHS ENDED MARCH 31, 2000
                                                                     ---------------------------------
                                                                                                        SEGMENT
                              LAMINATING    DISTRIBUTION          WOOD                OTHER              TOTAL
                              ----------    ------------          ----                -----              -----

                                                                                        
Net outside sales         $  43,563,694     $  35,874,665     $    9,663,555        $10,722,159        $  99,824,073
Intersegment sales            1,827,626             8,810            271,253          4,938,076            7,045,765
                        -------------------------------------------------------------------------------------------------------
   Total sales            $  45,391,320     $  35,883,475     $    9,934,808        $15,660,235        $ 106,869,838*
                            -----------------------------------------------------------------------------------------

EBIT**                    $     494,138     $     397,038     $   (6,034,164)***    $(1,618,264)***    $  (6,761,252)

Total assets              $  43,481,458     $  23,603,629     $    8,073,637        $15,098,136         $ 90,256,860

                                                                      THREE MONTHS ENDED MARCH 31, 1999
                                                                      ---------------------------------

Net outside sales         $  45,102,806     $  41,205,691     $   10,686,970        $10,182,261         $107,177,728
Intersegment sales            1,617,431             - - -            217,161          5,193,930            7,028,522
                         ---------------------------------------------------------------------------------------------
   Total sales            $  46,720,237     $  41,205,691     $   10,904,131        $15,376,191         $114,206,250*
                             -----------------------------------------------------------------------------------------

EBIT**                    $   2,315,015     $   1,069,655     $     (781,477)       $   598,071         $  3,201,264

Total assets              $  44,248,320     $  24,860,380     $   13,752,313        $18,369,220         $101,230,233



Reconciliation of segment operating income to consolidated operating income

                                                 2000             1999
                                                 ----             ----

EBIT** for segments                          $(6,761,252)   $  3,201,264
Consolidation reclassifications                 (185,163)       (188,798)
Gain (loss) on sale of property
      and equipment                               (2,368)        638,672
Other                                           (202,234)        369,153
                                              -----------     ----------

   Consolidated EBIT**                       $(7,151,017)     $4,020,291
                                              ===========    ===========


    *Does not agree to Financial Statements due to consolidation eliminations.
  **Earnings before interest and taxes
***The  Company  recognized a charge in the first quarter 2000 of $5,371,295 and
$1,565,868  to  the  Wood  and  Other  Segments  respectively,  related  to  the
impairment  of  long-lived  assets as  discussed in Note 5 to the March 31, 2000
financial statements.
The identifiable asset values for each segment have been reduced  accordingly at
March 31, 2000.


MANAGEMENT'S  DISCUSSION  AND  ANALYSIS OF  FINANCIAL  CONDITION  AND RESULTS OF
OPERATIONS

                                       7


GENERAL

         The Company's business has shown significant revenue growth since 1991,
as net sales increased  annually from $143 million to over $457 million in eight
years.  The sales in 1999 were 0.8% ahead of the 1998 record year.  The increase
in sales  resulted  from the  continued  strength  of both the  economy  and the
manufactured housing and recreational vehicle industries. In the last quarter of
1999 it became  apparent  that the  manufactured  housing  industry had produced
units in excess of the  retail  demand  and  consumer  credit  availability  had
decreased,  resulting in  approximately  7.0% decline in  production  that year.
Retail sales lots were overstocked and unit production was reduced. In the first
quarter 2000 the industry is down nearly 21% in units shipped and this reduction
may  continue.  The Company's  sales were 67% to  manufactured  housing,  16% to
recreational  vehicle, and 17% to other industries in 1999. In the first quarter
of 2000, the sales are 54% to manufactured housing, 27% to recreational vehicle,
and 19% to other industries.

         The following table sets forth the percentage relationship to net sales
of certain items in the Company's Statements of Operations:

                                                      Quarterly Ended
                                                           March 31,
                                                      2000       1999

         Net sales                                  100.0%      100.0%
         Cost of sales                               89.2        87.0
         Gross profit                                10.8        13.0
         Warehouse and delivery                       4.1         3.6
         Selling, general & administrative            6.9         5.7
         Impairment charges                           6.9         - -
         Operating income (loss)                     (7.2)        3.7
         Net income (loss)                           (4.6)        2.1


RESULTS OF OPERATIONS

Quarter Ended March 31, 2000 Compared to Quarter Ended March 31, 1999

         Net Sales.  Net sales  decreased by $7.5 million,  or 7.0%, from $107.3
million in the  quarter  ended  March 31,  1999 to $99.8  million in the quarter
ended March 31,  2000.  This  decrease was a direct  result of an estimated  21%
decrease in units shipped and 22% decrease in units produced in the manufactured
housing industry in the first quarter 2000.

         Gross Profit.  Gross profit decreased by $3.2 million,  or 23.1%,  from
$14.0 million in the first quarter of 1999 compared to $10.8 million in the same
quarter in 2000. As a percentage of net sales, gross profit decreased 2.2%, from
13.0% in the first  quarter  of 1999 to 10.8% in the first  quarter  2000.  This
decrease was due to a 7.0% decrease in consolidated  net sales as well as highly
competitive market conditions affecting margins.  Several of our operations have
reduced  prices in order to  maintain  sales  which has  resulted in lower gross
profits.

         Warehouse  and  Delivery  Expenses.  Warehouse  and  delivery  expenses
increased  $0.3  million,  from $3.8  million in the first  quarter 1999 to $4.1
million in the first quarter  2000. As a percentage of net sales,  warehouse and
delivery  expenses  increased  from 3.6% in the first quarter of 1999 to 4.1% in
the first quarter 2000.  This increase is attributable to lower sales levels and
higher shipping costs specifically related to the increase in gasoline prices in
the first quarter 2000.

         Selling,  General,  and Administrative  Expenses.  For the period ended
March 31, 1999,  a $0.6 million gain on sale of assets has been  included in the
selling, general, and administrative expenses. Exclusive on the gain of the sale
of assets,  selling,  general, and administrative expenses increased 1.4% in the
quarter ended March 31, 2000 compared to the same period in 1999. These expenses
remained fairly  constant at $6.8 million for both quarters.  As a percentage of
net sales  however,  March 31, 2000  expenses were 6.9% compared to 6.3% for the
three-month period ended March 31, 1999.

         Impairment Charges. As discussed in Note 5 of the financial  statement,
the Company recognized an impairment charge of $6.9 million in the first quarter
of 2000.

                                       8


         Operating Income (Loss). The Company  experienced a quarterly operating
loss of $7.2 million  compared to operating  income in the first quarter of 1999
of $4.0 million.  The operating loss in the first quarter of 2000 was due to the
factors described above.

         Interest  Expense,  Net.  Interest  expense,  net of  interest  income,
decreased  14.4% from  $366,000 in the first  quarter of 1999 to $314,000 in the
same period in 2000. This decrease is attributable to more funds invested in the
first  quarter  2000 as well as lower  long-term  debt levels due to normal debt
service requirements.

         Net Income (Loss). The Company  experienced a net operating loss in the
first quarter of 2000 of $4.6 million  compared to net income of $2.2 million in
the period ended March 31, 1999.  This  decrease is due primarily to the factors
described above.


Quarter Ended March 31, 1999 Compared to Quarter Ended March 31, 1998

         Net Sales.  Net sales  increased by $2.4 million,  or 2.3%, from $105.0
million in the quarter  ended  March 31,  1998 to $107.4  million in the quarter
ended  March 31,  1999.  This sales  increase  was  attributable  to higher unit
production in the manufactured housing and recreational vehicle industries.  The
Company's sales are 60% to manufactured  housing, 20% to recreational  vehicles,
and 20% to other industrial industries.

         Gross Profit.  Gross profit increased by approximately $0.7 million, or
5.5%,  from $13.3  million in the first quarter of 1998, to $14.0 million in the
same quarter of 1999. As a percentage of net sales,  gross profit increased from
12.6% in the  first  quarter  of 1998 to 13.0% in 1999.  The  increase  in gross
profit  was due to certain  operations  showing  improvement  over the same 1998
quarter,  while  highly  competitive  market  pricing  of many of the  Company's
products continued in the first quarter of 1999.

         Warehouse  and  Delivery  Expenses.  Warehouse  and  delivery  expenses
increased approximately $0.1 million, or 3.0%, from $3.7 million in 1998 to $3.8
million in the 1999 first quarter.  As a percentage of net sales,  warehouse and
delivery  expenses  increased  from 3.5% in the first quarter of 1998 to 3.6% in
1999.

         Selling,  General,  and Administrative  Expenses.  For the period ended
March 31, 1999,  a $0.6 million gain on the sale of assets has been  included in
the selling, general, and administrative expenses.  Exclusive on the gain of the
sale of assets,  selling,  general,  and  administrative  expenses  increased by
approximately $0.5 million,  or 8.1%, from $6.3 million in 1998, to $6.8 million
in 1999.  As a percentage of net sales,  selling,  general,  and  administrative
expenses  increased  from 6.0% in 1998 to 6.3% in 1999.  Expense  increases were
partially  attributable  to the  Management  Information  System  implementation
expenses and additional personnel required as a result of the growth the Company
has experienced over the last several years.

         Operating  Income.  Operating income  increased by  approximately  $0.7
million  because  of the gain on the sale of real  estate  and  increased  gross
profits.  As a percentage of net sales,  operating  income  increased  from 3.1%
in1998 to 3.7% in the 1999 first quarter.

         Interest  Expense,  Net.  Interest  expense,  net of  interest  income,
increased  by  approximately  $0.1  million  in 1999  from  $254,000  in 1998 to
$366,000 in 1999.  The  Company's  borrowing  level  increased  because of a new
industrial  revenue bond issued in the third quarter of 1998 and the Company had
less invested funds in 1999.

         Net Income.  Net income  increased by  approximately  $0.4 million from
$1.8 million in the 1998 first quarter to $2.2 million in 1999. This increase is
primarily attributable to the factors described above.



                                       9



BUSINESS SEGMENTS

Three Months Ended March 31, 2000 Compared to Three Months Ended March 31, 1999

Laminating Segment Discussion

         Net sales  decreased in the first quarter of 2000 by $1.3  million,  or
2.8%,  from $46.7 million in the period ended March 31, 1999 to $45.4 million in
the  period  ended  March 31,  2000.  This  decline  in sales  volume was due to
approximately 21% less shipments nationwide in the manufactured housing industry
and declines over 30% in some of the Company's market areas.

         EBIT declined 78.6% in the laminating  segment from $2.3 million in the
period  ended March 31, 1999  compared to $0.5 million in the period ended March
31, 2000. As a percentage  of net sales,  EBIT  decreased  3.9% from 5.0% in the
first quarter 1999 to 1.1% in the first  quarter  2000.  The ability to increase
selling  prices in the first quarter of 1999 became more difficult in the second
half of that  year and in the  first  quarter  of 2000 the  Company  had to make
concessions  in pricing to  maintain  business as a result of the decline in the
overall industry.

Distribution Segment Discussion

         Net sales decreased  12.9%, or $5.3 million,  from $41.2 million in the
first quarter 1999 to $35.9 million in the first quarter 2000.  This decrease is
due to the decline in units  shipped in the  manufactured  housing  industry for
which this segment serves.

         EBIT  decreased  67.8%,  or $673,000,  due to the decrease in sales and
competitive pricing situations.

Wood Segment Discussion

         Net sales  decreased  8.9%, or $1.0 million,  from $10.9 million in the
period  ended March 31, 1999 to $9.9 million in the period ended March 31, 2000.
This  decline  is due to the  overall  decline in the  industry  as well as some
operating divisions choosing not to accept lower margin business.

         The EBIT for the first quarter includes a charge of approximately  $5.4
million  related to the  impairment of certain long lived assets in three of the
Company's six Wood segment operating units. Excluding these charges, the EBIT in
2000 of $663,000 is less than the loss  experienced in the first quarter of 1999
of $781,000 by $118,000,  or 15.2%. As mentioned in Note 6 to the March 31, 2000
consolidated  financial  statements  above,  one  of  the  operations  that  has
continued to experience operating losses, will be phased out by mid 2000.

Other Segment Discussion

         Net sales in the Other  segment  increased by 1.9%,  or $284,000,  from
$15.4  million in the three months ended March 31, 1999 to $15.7  million in the
three  month  period   ending  March  31,  2000.   This  increase  is  primarily
attributable to increased  sales in the Company's  aluminum  extrusion  division
which sells to areas mainly outside the manufactured housing industry.

         The EBIT for the first quarter includes a charge of approximately  $1.5
million  related to the  impairment of certain  long-lived  assets in one of the
Company's seven Other segment  operating  units.  Excluding  these charges,  the
Other  segment  experienced  an EBIT  for the  first  quarter  2000 of  $52,000,
compared  to EBIT in the  first  quarter  1999 of  $598,000.  This  decrease  in
operating income was due to one division, which was profitable in 1999, becoming
unprofitable in 2000 and another division continuing to lose market share due to
operational inefficiencies.


Three Months Ended March 31, 1999 Compared to Three Months Ended March 31, 1998

Laminating Segment Discussion

         Net Sales in the 1999  period were lower in this  segment by 8.3%.  One
operation was closed in June of 1998 that represented approximately $3.2 million
less sales in the March 31, 1999 quarter,  and another  operation was started in
March of 1998 that contributed approximately $1.0 million of additional sales to
the 1999  period.  The Company  also chose not to meet some  competitive  market
pricing situations with certain existing business.


                                       10



         EBIT in the laminating  segment  increased 14.0% in the 1999 period and
as a  percentage  of sales,  the  increase  was from 4.0% to 5.0%.  The  Company
reduced material costs in most operations by increasing  selling prices when raw
product costs increased and by reducing the sales of lower margin business.

Distribution Segment Discussion

         Net sales in the 1999 quarter  increased  by 18.4% in the  distribution
segment  primarily  because  of the  growth  in  the  manufactured  housing  and
recreational vehicle industries, which this segment serves.

         The EBIT from this  segment  increased by 82.7%.  Gross profit  margins
increased  and  distribution  expenses,   selling,  general  and  administrative
expenses all decreased as percentages of sales in the 1999 period. These factors
and the increased sales provided this positive income change.

Wood Segment Discussion

         Net  sales  in the wood  segment  increased  by 5.4% in the 1999  first
quarter.

         The overall operating results also showed no significant  change in the
1999 period,  with losses showing a slight reduction as percentages of sale from
7.8% in the 1998 first quarter to 7.2% in the current year.  Several  operations
in this segment had EBIT improvement in the 1999 period, while one operation had
EBIT gains offset by the relocation and consolidation of one of its facilities.

Other Segment Discussion

         Net  sales in this  segment  were  lower in 1999 by 14% from the  first
quarter of 1998 primarily because the Company's  aluminum extrusion division had
to shut down one press for major repairs.

         The EBIT in this segment was lower by 51.5%.  The reduced  sales in the
extrusion  operation and inventory cost increases in another division  accounted
for most of the income reduction.



LIQUIDITY AND CAPITAL RESOURCES

         The Company's primary capital  requirements are to meet working capital
needs,   support  its  capital   expenditure   plans,   and  meet  debt  service
requirements.

         The Company,  in September,  1995,  issued to an insurance company in a
private placement $18,000,000 of senior unsecured notes. The ten year notes bear
interest at 6.82%,  with  semi-annual  interest  payments that began in 1996 and
seven annual  principal  repayments that began  September 15, 1999.  These funds
were used to reduce existing bank debt and for working capital needs.

         The Company has an  unsecured  bank  Revolving  Credit  Agreement  that
provides loan availability of $10,000,000 with maturity in the year 2003.

         Pursuant to the private placement and the Credit Agreement, the Company
is required to maintain  certain  financial  ratios,  all of which are currently
complied with.

         The Company believes that cash generated from operations and borrowings
under its credit  agreements  will be  sufficient  to fund its  working  capital
requirements   and  normal   recurring   capital   expenditures   as   currently
contemplated.  The fluctuations in inventory and accounts  receivable  balances,
which affect the Company's cash flows, are part of normal business cycles.


SEASONALITY

         Manufacturing  operations in the manufactured  housing and recreational
vehicle  industries  historically  have been  seasonal and

                                       11


are generally at the highest  levels when the climate is moderate.  Accordingly,
the Company's  sales and profits are  generally  highest in the second and third
quarters.

YEAR 2000 ISSUE

         The Company began a new management  information  system  implementation
project in 1996, which was fully operational by November,  1999. The project was
started  because  of the need to  upgrade  all  hardware  and  software  to meet
capacity and information needs at that time and for the future, and to solve the
Year 2000  issue.  The new system did solve the Year 2000 issue and no  external
factors affected the Company.

         The  total  cost  of  Year  2000  activities   cannot  be  specifically
determined  because  the  internal  information  system  project was planned for
management and operation purposes and Year 2000 compliance was a benefit of that
system.  The  expenditures  of  implementing  the new  information  hardware and
software system was approximately $8.0 million.

INFLATION

         The Company does not believe that  inflation  had a material  effect on
results of operations for the periods presented.

SAFE HARBOR STATEMENT

         Statements   that   do   not   address   historical   performance   are
"forward-looking  statements"  within  the  meaning  of the  Private  Securities
Litigation  reform  Act of 1995  and  are  based  on a  number  of  assumptions,
including but not limited to; (1) continued  domestic economic growth and demand
for the Company's  products;  and (2) the  Company's  belief with respect to its
capital expenditures,  seasonality and inflation. Any developments significantly
deviating from these assumptions could cause actual results to differ materially
from those forecast or implied in the aforementioned forward-looking statements.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

         None


                                       12



         PART II.  OTHER INFORMATION

Item 1.  Legal Proceedings

             None

Item 2.  Changes in Securities

             None

Item 3.  Defaults upon Senior Securities

             None

Item 4.  Submission of Matters to a Vote of Security Holders

             None

Item 5.  Other Information

             None

Item 6.  Exhibits and Reports on Form 8-K

            (a)   Exhibits

                  10(q)  -  First Amendment to Credit  Agreement as  of  January
                            28, 2000  between the Company and Bank One, Indiana,
                            N.A., filed herewith

                    27    Financial Data Schedule

             (b) There were no reports filed on Form 8-K



                                       13




                                   SIGNATURES

            Pursuant to the requirements of the Securities Exchange Act of 1934,
the  Company  has duly  caused  this  report to be  signed on its  behalf by the
undersigned thereunto duly authorized.



                                                  PATRICK INDUSTRIES, INC.
                                                  (Company)





Date       May 11, 2000                            /S/Mervin D. Lung
           ------------                           ----------------------
                                                  Mervin D. Lung
                                                  (Chairman of the Board)





Date       May 11, 2000                           /S/David D. Lung
           ------------                           ----------------------
                                                  David D. Lung
                                                  (President)





Date       May 11, 2000                           /S/Keith V. Kankel
           ------------                           ----------------------
                                                  Keith V. Kankel
                                                  (Vice President Finance)
                                                  (Principal Accounting Officer)



                                       14