PATRICK INDUSTRIES, INC.
1800 S. 14TH STREET o P.O. BOX 638 o ELKHART, IN 46515
[PATRICK LOGO] PHONE: (574) 294-7511 o FAX (574) 522-5213
NEWS RELEASE
APRIL 23, 2004
FOR IMMEDIATE RELEASE
CONTACT: Andy L. Nemeth
PATRICK INDUSTRIES, INC.
REPORTS FIRST QUARTER RESULTS
ELKHART, Indiana - - - - Paul E. Hassler, President and Chief Executive
Officer, today announced net sales and operating results for the first quarter
of 2004. Net sales decreased $1,573,000, or 2.3%, from $67,285,000 in the first
three months of 2003 to $65,712,000 in the same period in 2004. Net losses
decreased by $378,000, or 42.1%, from a loss of $900,000, or $.20 per share in
the first quarter of 2003, to a loss of $522,000, or $.11 per share in the first
quarter of 2004. Mr. Hassler said, "The Company's sales levels continue to be
impacted by shipment levels in the Manufactured Housing and Recreational Vehicle
Industries, which account for 71% of total sales at March 31, 2004. While we saw
some margin improvement from 2003 as a result of our restructuring efforts, we
continue to be faced with extremely competitive market pricing that is affecting
profitability at these volume levels."
The Manufactured Housing Industry, which comprises 38% of first quarter
2004 sales, experienced shipment declines of more than 12% through February when
compared to 2003, and continue to be at more than 40 year lows. Shipment
increases of more than 12% in the Recreational Vehicle Industry, which accounts
for 33% of first quarter 2004 sales, partially offset the Manufactured Housing
declines as well as the Company gaining market share in the Industrial and other
markets.
Mr. Hassler said, "The Company is proceeding with its strategic
planning efforts and increased investment in capital equipment, facilities, and
personnel to help establish a stronger foundation for future growth. We recently
completed negotiations to increase our line of credit by $5 million to bring our
total availability to $15 million, none of which is borrowed on at March 31,
2004. We will continue to evaluate our cost structures at these low sales
levels, which are approximately close to break-even, and make adjustments where
necessary. We remain focused on providing exceptional customer service,
increasing our penetration into the Industrial and other markets, in addition to
the Manufactured Housing and Recreational Vehicle markets, and maximizing
shareholder value."
Patrick Industries is a major manufacturer of component products and
distributor of building products serving the Manufactured Housing, Recreational
Vehicle, Furniture, Marine, and Industrial markets and operates coast to coast
in thirteen states.
# # #
PATRICK INDUSTRIES, INC.
UNAUDITED FINANCIAL HIGHLIGHTS
INCOME STATEMENT
----------------
THREE MONTHS ENDED
MARCH 31
2004 2003
---- ----
Net sales $ 65,712,000 $ 67,285,000
Cost of goods sold 58,119,000 60,214,000
Warehouse and delivery expenses 3,161,000 3,194,000
Selling, general, and administrative expenses 5,156,000 5,171,000
Interest expense, net 138,000 194,000
------------ ------------
Income (loss) before income taxes (862,000) (1,488,000)
Income taxes (credit) (340,000) (588,000)
------------ ------------
NET INCOME (LOSS) $ (522,000) $ (900,000)
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EARNINGS (LOSS) PER COMMON SHARE $ (.11) $ (.20)
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Weighted average shares outstanding 4,640,741 4,584,261
BALANCE SHEET
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MARCH 31
2004 2003
---- ----
CURRENT ASSETS
Cash and cash equivalents $ 1,337,000 $ 1,790,000
Trade receivables, net 19,905,000 17,520,000
Inventories 27,634,000 31,906,000
Income taxes receivable - - - 1,053,000
Prepaid expenses 919,000 1,324,000
Deferred tax assets 1,954,000 1,981,000
------------ ------------
Total current assets 51,749,000 55,574,000
------------ ------------
PROPERTY AND EQUIPMENT, NET 33,406,000 31,422,000
------------ ------------
INTANGIBLE AND OTHER ASSETS 3,239,000 2,751,000
------------ ------------
TOTAL ASSETS $ 88,394,000 $ 89,747,000
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CURRENT LIABILITIES
Current maturities of long-term debt $ 3,671,000 $ 3,671,000
Accounts payable and accrued liabilities 15,615,000 14,036,000
------------ ------------
Total current liabilities 19,286,000 17,707,000
------------ ------------
LONG-TERM DEBT, LESS CURRENT MATURITIES 7,771,000 11,443,000
------------ ------------
DEFERRED LIABILITIES 2,209,000 2,401,000
------------ ------------
SHAREHOLDERS' EQUITY 59,128,000 58,196,000
------------ ------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $ 88,394,000 $ 89,747,000
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