NEWS RELEASE
OCTOBER 21, 2003
FOR IMMEDIATE RELEASE
CONTACT: ANDY L. NEMETH
PATRICK INDUSTRIES, INC.
REPORTS THIRD QUARTER AND NINE-MONTHS RESULTS
Elkhart, Indiana - - - - - Keith V. Kankel, President and
Chief Executive Officer, announced increased earnings for the third quarter
2003. The Company reported net income for the three months ended September 30,
2003 of $228,000, or $.05 per share, compared to net income of $153,000, or $.03
per share, in the same period in 2002. Year to date for 2003 the net loss was
reduced to $647,000, or $.14 per share, compared to net income of $1,059,000, or
$.23 per share, in 2002. Net sales for the quarter ending September 30, 2003
were $70,267,000, or 13.1% less than the $80,848,000 reported in the same period
in 2002. For the nine months ended September 30, 2003, net sales were
$208,502,000, or 12.6% less than the $238,658,000 reported in the same period in
2002. Included in the 2003 operating results is a charge for restructuring of
$235,000, or $.03 per share net of tax, related to the closing of one of the
Company's underperforming cabinet door operating units, as well as a gain on
sale of fixed assets of approximately $158,000, or $.02 per share net of tax,
related to the sale of one of the Company's idle manufacturing facilities.
The Manufactured Housing Industry, which represents 41% of the
Company's sales through September, continued its decline as August shipments for
both the month and year to date were down almost 25% from the 2002 levels.
Alternatively, the Recreational Vehicle Industry, which represents another 32%
of the Company's sales through September, continued its robust pace as shipments
were up almost 2% from the previous year through August. The Company experienced
increased penetration into the industrial and other customer markets, which
represents approximately 27% of the 2003 sales.
Mr. Kankel said, "While shipment levels in the Manufacturing
Housing Industry continue their negative trend, we are pleased to report
improved operating results for the quarter. Our gross profit percentages have
continued to increase on a quarterly basis in 2003 and we have remained diligent
in our efforts to keep operating costs aligned with revenues. As we brace for
the anticipated seasonal decline in sales volume in the fourth quarter, we
continue to focus on strategic growth opportunities and diversification efforts,
as well as new product introductions and capital improvements. This Company is
well positioned to take advantage of any upturn in the markets to which we
serve."
Patrick Industries is a major component products manufacturer
and supplier of building products serving the Manufactured Housing, Recreational
Vehicle, Furniture, Marine, Architectural and Automotive aftermarkets, and
operates coast to coast in 13 states.
# # #
PATRICK INDUSTRIES, INC.
UNAUDITED FINANCIAL HIGHLIGHTS
INCOME STATEMENT
----------------
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
2003 2002 2003 2002
---- ---- ---- ----
Net sales $ 70,267,000 $ 80,848,000 $208,502,000 $238,658,000
Cost of goods sold 61,358,000 70,498,000 183,960,000 207,717,000
Warehouse and delivery expenses 3,203,000 3,842,000 9,593,000 10,901,000
Selling, general, and
administrative expenses 4,918,000 6,058,000 15,223,000 17,300,000
Restructuring charges 235,000 - - - 235,000 269,000
Interest expense, net 177,000 195,000 561,000 706,000
Income (loss) before income taxes 376,000 255,000 (1,070,000) 1,765,000
Income taxes (credit) 148,000 102,000 (423,000) 706,000
NET INCOME (LOSS) $ 228,000 $ 153,000 $ (647,000) $ 1,059,000
EARNINGS (LOSS) PER COMMON SHARE $ .05 $ .03 $ (.14) $ .23
Weighted average shares outstanding 4,611,037 4,556,136 4,595,306 4,543,404
BALANCE SHEET
-------------
SEPTEMBER 30
2003 2002
---- ----
CURRENT ASSETS
Cash and temporary investments $ 5,396,000 $ 982,000
Trade receivables, net 18,586,000 22,826,000
Inventories 28,959,000 36,194,000
Income taxes receivable 285,000 - - -
Prepaid expenses 1,137,000 630,000
Deferred tax assets 1,981,000 2,170,000
Total current assets 56,344,000 62,802,000
PROPERTY AND EQUIPMENT, NET 30,404,000 33,236,000
DEFERRED ASSETS - - - 231,000
INTANGIBLE AND OTHER ASSETS 2,619,000 2,959,000
TOTAL ASSETS $ 89,367,000 $ 99,228,000
CURRENT LIABILITIES
Current maturities of long-term debt $ 3,671,000 $ 3,671,000
Accounts payable and accrued liabilities 16,119,000 20,385,000
Income taxes payable - - - 529,000
Total current liabilities 19,790,000 24,585,000
LONG-TERM DEBT, LESS CURRENT MATURITIES 8,471,000 12,143,000
DEFERRED LIABILITIES 2,450,000 2,252,000
SHAREHOLDERS' EQUITY 58,656,000 60,248,000
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 89,367,000 $ 99,228,000