NEWS RELEASE
JULY 23, 2004
FOR IMMEDIATE RELEASE
CONTACT: ANDY L. NEMETH
PATRICK INDUSTRIES, INC.
REPORTS SECOND QUARTER AND SIX MONTHS RESULTS
Elkhart, Indiana - - - - Paul E. Hassler, President and Chief Executive
Officer, today announced increased net sales and profitability for the three and
six month periods ending June 30, 2004. Second quarter 2004 net sales increased
10.8%, from $70,950,000 in 2003 to $78,621,000 in 2004. Year to date net sales
increased 4.4%, from $138,235,000 in 2003 to $144,333,000 in 2004. The Company
reported increased net income for the second quarter from $25,000, or $.01 per
share, in 2003 to $555,000, or $.12 per share, in 2004 and increased net income
year to date from a loss of $875,000, or $.19 per share, in 2003 to income of
$33,000, or $.01 per share, in 2004. Second quarter and year to date 2004
results include approximately $353,000, or $.05 per share, gain related to
proceeds on life insurance policies. Mr. Hassler said, "Strong Recreational
Vehicle industry shipments and product price increases have contributed to the
increased sales levels, and our restructuring efforts in 2003 have contributed
to increased profitability."
Shipment levels in the Manufactured Housing industry, which represent 39%
of the Company's sales, have continued their decline of almost 5% through May,
2004. Shipment levels in the Recreational Vehicle industry, which represent 32%
of the Company's sales, have remained strong increasing more than 20% over the
previous year, which was a near record year. The Company's sales to the
Industrial markets have continued to increase and represent 29% of the
consolidated sales at June 30, 2004.
Mr. Hassler said, "We are proud of the positive strides that we have made
in the first half of the year as we continue to establish our foundation for
future growth. We have remained focused on our capital plans which will allow us
to maximize efficiencies and increase our capabilities. We added an additional
$5 million to our available line of credit to help support our operating and
potential acquisition needs and we have filled several key management positions.
We remain focused on the Industrial market penetration to help diversify the
Company's customer base and have the capacity to support the strong Recreational
Vehicle industry and an upturn in the Manufactured Housing industry when it
occurs."
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 SIX MONTHS ENDED
JUNE 30 JUNE 30
2004 2003 2004 2003
---- ---- ---- ----
Net sales $ 78,621,000 $ 70,950,000 $ 144,333,000 $ 138,235,000
Cost of goods sold 69,083,000 62,388,000 127,202,000 122,602,000
Warehouse and delivery expenses 3,513,000 3,196,000 6,674,000 6,390,000
Selling, general, and
administrative expenses 4,970,000 5,134,000 10,126,000 10,305,000
Interest expense, net 138,000 190,000 276,000 384,000
------------- ------------- ------------- -------------
Income (loss) before income taxes 917,000 42,000 55,000 (1,446,000)
Income taxes (credit) 362,000 17,000 22,000 (571,000)
------------- ------------- ------------- -------------
NET INCOME (LOSS) $ 555,000 $ 25,000 $ 33,000 $ (875,000)
============= ============= ============= =============
EARNINGS (LOSS) PER COMMON SHARE $ .12 $ .01 $ .01 $ (.19)
============= ============= ============= =============
Weighted average shares outstanding 4,697,159 4,590,327 4,668,950 4,587,311
BALANCE SHEET
-------------
JUNE 30
2004 2003
---- ----
CURRENT ASSETS
Cash and cash equivalents $ 94,000 $ 4,658,000
Trade receivables, net 23,499,000 19,176,000
Inventories 34,305,000 30,390,000
Income taxes receivable - - - 285,000
Prepaid expenses 848,000 763,000
Deferred tax assets 1,954,000 1,981,000
----------- -----------
Total current assets 60,700,000 57,253,000
----------- -----------
PROPERTY AND EQUIPMENT, NET 33,710,000 31,014,000
----------- -----------
INTANGIBLE AND OTHER ASSETS 3,001,000 2,675,000
----------- -----------
TOTAL ASSETS $97,411,000 $90,942,000
=========== ===========
CURRENT LIABILITIES
Current maturities of long-term debt $ 3,671,000 $ 3,671,000
Short-term borrowings 2,000,000 - - -
Accounts payable and accrued liabilities 21,523,000 15,223,000
----------- -----------
Total current liabilities 27,194,000 18,894,000
----------- -----------
LONG-TERM DEBT, LESS CURRENT MATURITIES 7,771,000 11,443,000
----------- -----------
DEFERRED LIABILITIES 2,503,000 2,305,000
----------- -----------
SHAREHOLDERS' EQUITY 59,943,000 58,300,000
----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $97,411,000 $90,942,000
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