NEWS RELEASE
JULY 17, 2003
FOR IMMEDIATE RELEASE
CONTACT: ANDY L. NEMETH
PATRICK INDUSTRIES, INC.
REPORTS SECOND QUARTER AND SIX-MONTHS RESULTS
Elkhart, Indiana - - - - - David D. Lung, President and Chief
Executive Officer, today announced that net sales for the 2003 second quarter
were $70,950,000, or 14% less than the $82,567,000 reported for the same period
in 2002. Year to date sales were $138,235,000, or 12% less than the 2002 year to
date sales of $157,810,000. The Company reported net income of $25,000 for the
2003 second quarter, or $.01 per share, compared to income of $636,000, or $.14
per share, in the second quarter of 2002. For the six months ended June 30,
2003, the Company had a net loss of $875,000, or $.19 per share, compared to net
income in 2002 of $906,000, or $.20 per share. The Manufactured Housing
Industry, which represents approximately 40% of the Company's 2003 sales,
continued to show negative results as shipments through May were approximately
27% less than the previous year. The Recreational Vehicle Industry, which
represents approximately 32% of the Company's 2003 sales, finished the month of
May, 2003 at shipment levels approximately 2% ahead of the levels attained in
2002. The Company continued to show increased sales to its Industrial and Other
customer market, which represents approximately 28% of the 2003 sales.
Mr. Lung said "the significant decline in shipment levels in
the Manufactured Housing Industry over the past four years have resulted in
extremely competitive market conditions. While our margins are down from the
2002 figures, we have seen margin improvement from where we were at in the first
quarter. We are continuing to focus on strategic growth opportunities both at
the sales and profitability levels as well as core business strategic planning,
diversification efforts, new product introductions, and keeping our costs
aligned with revenues. Our balance sheet remains very strong and we feel that
the Company is well positioned to take advantage of any upturn in the market as
well as capitalize on our strategic planning activities."
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 13 states.
# # #
PATRICK INDUSTRIES, INC.
UNAUDITED FINANCIAL HIGHLIGHTS
INCOME STATEMENT
----------------
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
2003 2002 2003 2002
---- ---- ---- ----
Net sales $ 70,950,000 $ 82,567,000 $ 138,235,000 $ 157,810,000
Cost of goods sold 62,388,000 71,712,000 122,602,000 137,219,000
Warehouse and delivery expenses 3,196,000 3,634,000 6,390,000 7,059,000
Selling, general, and
administrative expenses 5,134,000 5,612,000 10,305,000 11,242,000
Restructuring charges - - - 269,000 - - - 269,000
Interest expense, net 190,000 280,000 384,000 511,000
------------- ------------- ------------- -------------
Income (loss) before income taxes 42,000 1,060,000 (1,446,000) 1,510,000
Income taxes (credit) 17,000 424,000 (571,000) 604,000
------------- ------------- ------------- -------------
NET INCOME (LOSS) $ 25,000 $ 636,000 $ (875,000) $ 906,000
============= ============= ============= =============
EARNINGS (LOSS) PER COMMON SHARE $ .01 $ .14 $ (.19) $ .20
============= ============= ============= =============
Weighted average shares outstanding 4,590,327 4,544,015 4,587,311 4,536,932
BALANCE SHEET
-------------
JUNE 30
2003 2002
---- ----
CURRENT ASSETS
Cash and temporary investments $ 4,658,000 $ 5,295,000
Trade receivables, net 19,176,000 22,775,000
Inventories 30,390,000 31,601,000
Income taxes receivable 285,000 10,000
Prepaid expenses 763,000 419,000
Deferred tax assets 1,981,000 2,170,000
------------ ------------
Total current assets 57,253,000 62,270,000
------------ ------------
PROPERTY AND EQUIPMENT, NET 31,014,000 34,300,000
------------ ------------
DEFERRED ASSETS - - - 312,000
------------ ------------
INTANGIBLE AND OTHER ASSETS 2,675,000 3,129,000
------------ ------------
TOTAL ASSETS $ 90,942,000 $100,011,000
============ ============
CURRENT LIABILITIES
Current maturities of long-term debt $ 3,671,000 $ 3,671,000
Accounts payable and accrued liabilities 15,223,000 17,977,000
Income taxes payable - - - 641,000
------------ ------------
Total current liabilities 18,894,000 22,289,000
------------ ------------
LONG-TERM DEBT, LESS CURRENT MATURITIES 11,443,000 15,114,000
------------ ------------
DEFERRED LIABILITIES 2,305,000 2,331,000
------------ ------------
SHAREHOLDERS' EQUITY 58,300,000 60,277,000
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 90,942,000 $100,011,000
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