NEWS RELEASE
APRIL 24, 2003
FOR IMMEDIATE RELEASE
CONTACT: ANDY L. NEMETH
PATRICK INDUSTRIES, INC.
REPORTS FIRST QUARTER RESULTS
Elkhart, Indiana - - - - David D. Lung, President and Chief
Executive Officer of Patrick Industries, Inc., today announced sales and
operating results for the first quarter of 2003. Net sales for the three months
ended March 31, 2003 were $67,285,000, or 10.6% less than the $75,243,000 for
the same period in 2002. The Company incurred a net loss of $900,000, or $.20
per share, compared to net income of $270,000, or $.06 per share, in the 2002
quarter. The decline in sales comes at a time when shipments in the Manufactured
Housing Industry, which represents 39% of the Company's sales, are down more
than 26% from the previous year. Shipments to the Recreational Vehicle Industry,
which represents 33% of the Company's 2003 sales and have helped to offset the
declines in the Manufactured Housing Industry, are up more than 10%. Mr. Lung
said, "The continued uncertainties in the Manufactured Housing Industry related
to dealer and retail financing, high repossessed inventory levels, and continued
plant shutdowns, have been coupled with a lack of consumer confidence due to a
stagnant economy and a war in Iraq. Business conditions have gotten increasingly
more competitive and have forced the Company to reduce prices resulting in
decreased profitability."
Mr. Lung said "While we are disappointed with the first
quarter results, we are continuing to focus on strategic growth opportunities,
diversification efforts, and new product opportunities as well as keeping our
costs aligned with revenues in these difficult times. Our balance sheet remains
very strong and we have just completed the renewal of our credit facility with
our financial institutions which extends for the next three years. We feel that
we are ready to take advantage of any upturn in the market."
Patrick Industries is a major component products manufacturer
and supplier of building products serving the Manufactured Housing, Recreational
Vehicle, Furniture, Marine, Architectural, and Automotive markets and operates
coast to coast in thirteen states.
# # #
PATRICK INDUSTRIES, INC.
UNAUDITED FINANCIAL HIGHLIGHTS
INCOME STATEMENT
----------------
THREE MONTHS ENDED
MARCH 31
2003 2002
---- ----
Net sales $ 67,285,000 $ 75,243,000
Cost of goods sold 60,214,000 65,507,000
Warehouse and delivery expenses 3,194,000 3,425,000
Selling, general, and administrative expenses 5,171,000 5,630,000
Interest expense, net 194,000 231,000
------------ ------------
Income (loss) before income taxes (1,488,000) 450,000
Income taxes (credit) (588,000) 180,000
------------ ------------
NET INCOME (LOSS) $ (900,000) $ 270,000
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EARNINGS (LOSS) PER COMMON SHARE $ (.20) $ .06
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Weighted average shares outstanding 4,584,261 4,529,770
BALANCE SHEET
-------------
MARCH 31
2003 2002
---- ----
CURRENT ASSETS
Cash and cash equivalents $ 1,790,000 $ 5,147,000
Trade receivables, net 17,520,000 20,834,000
Inventories 31,906,000 28,813,000
Income taxes receivable 1,053,000 3,047,000
Prepaid expenses 1,324,000 789,000
Deferred tax assets 1,981,000 2,014,000
----------- -----------
Total current assets 55,574,000 60,644,000
----------- -----------
PROPERTY AND EQUIPMENT, NET 31,422,000 33,288,000
----------- -----------
INTANGIBLE AND OTHER ASSETS 2,751,000 3,066,000
----------- -----------
TOTAL ASSETS $89,747,000 $96,998,000
=========== ===========
CURRENT LIABILITIES
Current maturities of long-term debt $ 3,671,000 $ 3,671,000
Accounts payable and accrued liabilities 14,036,000 16,290,000
----------- -----------
Total current liabilities 17,707,000 19,961,000
----------- -----------
LONG-TERM DEBT, LESS CURRENT MATURITIES 11,443,000 15,114,000
----------- -----------
DEFERRED LIABILITIES 2,401,000 2,319,000
----------- -----------
SHAREHOLDERS' EQUITY 58,196,000 59,604,000
----------- -----------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $89,747,000 $96,998,000
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