NEWS RELEASE
February 6, 2004
FOR IMMEDIATE RELEASE
CONTACT: Andy L. Nemeth
PATRICK INDUSTRIES, INC.
REPORTS FOURTH QUARTER AND YEAR-END RESULTS
Elkhart, Indiana - - - - - - - Keith V. Kankel, President and
Chief Executive Officer, today announced net sales and operating results for the
fourth quarter and year ended December 31, 2003. Net sales for the fourth
quarter of 2003 were $66,180,000, or 5.6% less than the $70,097,000 reported in
the fourth quarter of 2002. Net sales for the 2003 year were $274,682,000, or
11.0% less than the $308,755,000 reported in 2002. Net income for the fourth
quarter of 2003 was $592,000, or $.13 per share, compared to a loss of $964,000,
or $.21 per share, in the fourth quarter of 2002. The Company reported a net
loss for the 2003 year of $55,000, or $.01 per share, compared to net income in
2002 of $95,000, or $.02 per share.
The fourth quarter of 2003 includes pre-tax positive adjustments of
approximately $1.2 million, or $.16 per share, net of tax, related to gains on
disposal of a building, sale of equipment as a result of a plant closing, and
increases in cash surrender value of life insurance policies. Comparatively, the
fourth quarter of 2002 includes a pre-tax charge to operations of approximately
$1.6 million, or $.21 per share, net of tax, pertaining to the write-off of
receivables and certain other assets specifically related to the Oakwood Homes
Corporation bankruptcy filing in the fourth quarter of 2002.
The Manufactured Housing Industry, which represents 41% of the
Company's sales for 2003, continued to show shipment declines and finished the
year with shipment levels 22.3% less than they were in 2002. The Recreational
Vehicle Industry, which represents approximately 31% of the Company's sales for
2003, continued its positive trend as shipments for the year finished 3.2% ahead
of 2002 levels and represented the second highest level of shipments in the last
25 years. The Company continued its penetration and increased sales into the
industrial and other markets, which represents approximately 28% of 2003 sales.
Mr. Kankel said, "The overall restricted conditions in the Manufactured
Housing Industry continue to hinder the Company's performance with regard to
sales in this market segment. The Company's concerted efforts related to
strategic cost reduction and keeping costs aligned with revenues have allowed us
to maintain the integrity and strength of our balance sheet. Going forward, we
expect to take advantage of this strength through strategic investment and other
growth opportunities as well as diversification efforts and new product
introductions. The Company has the capacity and is well positioned to take
advantage of any upturn in the Manufactured Housing market as well as to
increase its penetration into the other markets that it serves."
Patrick Industries, Inc. 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 TWELVE MONTHS ENDED
DECEMBER 31 DECEMBER 31
2003 2002 2003 2002
---- ---- ---- ----
Net sales $ 66,180,000 $ 70,097,000 $274,682,000 $308,755,000
Cost of goods sold 58,539,000 61,845,000 242,499,000 269,562,000
Warehouse and delivery expenses 3,323,000 3,428,000 12,916,000 14,329,000
Selling, general, and
administrative expenses 3,219,000 6,246,000 18,442,000 23,546,000
Restructuring charges - - - - - - 235,000 269,000
Interest expense, net 119,000 185,000 680,000 891,000
------------ ------------ ------------ ------------
Income (loss) before income taxes 980,000 (1,607,000) (90,000) 158,000
Income taxes (credit) 388,000 (643,000) (35,000) 63,000
------------ ------------ ------------ ------------
NET INCOME (LOSS) $ 592,000 $ (964,000) $ (55,000) $ 95,000
============= ============= ============ =============
INCOME (LOSS) PER COMMON SHARE $ .13 $ (.21) $ (.01) $ .02
============= ============= ============ =============
Weighted average shares outstanding 4,616,886 4,557,970 4,600,746 4,547,075
BALANCE SHEET
-------------
DECEMBER 31
2003 2002
---- ----
CURRENT ASSETS
Cash and cash equivalents $ 7,077,000 $ 3,552,000
Trade receivables, net 14,241,000 11,545,000
Inventories 23,042,000 32,092,000
Income taxes receivable - - - 1,593,000
Prepaid expenses 914,000 849,000
Deferred tax assets 1,954,000 1,981,000
------------- -------------
Total current assets 47,228,000 51,612,000
------------- -------------
PROPERTY AND EQUIPMENT, NET 30,693,000 31,917,000
------------- -------------
INTANGIBLE AND OTHER ASSETS 3,221,000 2,937,000
------------- -------------
TOTAL ASSETS $ 81,142,000 $ 86,466,000
============= ============
CURRENT LIABILITIES
Current maturities of long-term debt $ 3,671,000 $ 3,671,000
Accounts payable and accrued liabilities 7,909,000 9,135,000
Income taxes payable 13,000 240,000
------------- -------------
Total current liabilities 11,593,000 13,046,000
------------- -------------
LONG-TERM DEBT, LESS CURRENT MATURITIES 7,771,000 11,443,000
------------- -------------
DEFERRED LIABILITIES 2,104,000 2,177,000
------------- -------------
DEFERRED INCOME TAXES 426,000 521,000
------------- -------------
SHAREHOLDERS' EQUITY 59,248,000 59,279,000
------------- -------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 81,142,000 $ 86,466,000
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