PRESS RELEASE Patrick Industries, Inc.
PATRICK INDUSTRIES, INC. REPORTS THIRD QUARTER AND NINE MONTHS RESULTS
Monday October 25, 12:44 pm ET
ELKHART, Ind., Oct. 25 /PRNewswire-FirstCall/ -- Paul E. Hassler, President and
Chief Executive Officer of Patrick Industries, Inc. (Nasdaq: PATK - News),
announced increased net sales and operating results for the third quarter and
nine months ended September 30, 2004. Net sales for the third quarter ending
September 30, 2004 increased approximately 14.2%, from $70,267,000 in the third
quarter of 2003 to $80,261,000 in the third quarter of 2004. Year to date, net
sales increased approximately 7.7%, from $208,502,000 for the nine month period
ending September 30, 2003 to $224,594,000 in the same period of 2004. The
Company reported net income of $667,000, or $.14 per share, in the third quarter
of 2004 compared to net income of $228,000, or $.05 per share, in the third
quarter of 2003 and year to date net income of $700,000, or $.15 per share,
compared to a net loss of $647,000, or $.14 per share, in the same period of
2003. The 2004 operating results include an increase in the allowance for
doubtful accounts related to one customer of approximately $450,000, or $.06 per
share, net of tax, and a gain on sale of a building of approximately $193,000,
or $.02 per share, net of tax. Comparatively, the 2003 operating results include
a gain on sale of a building of approximately $158,000, or $.02 per share, net
of tax, as well as 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.
The Manufactured Housing Industry, which represents approximately 40% of the
Company's 2004 sales, continued its decline through August with shipments
decreasing approximately 4% from the previous year. The Recreational Vehicle
Industry, which represents approximately 31% of the Company's 2004 sales,
continued to post strong results with shipments increasing approximately 18%
through August. The Company increased its penetration into the Industrial
markets which represent approximately 29% of 2004 sales. Mr. Hassler said, "We
are pleased with the improved operating performance in light of the difficult
conditions in the Manufactured Housing and Furniture industries. Our
restructuring efforts in 2003 have increased profitability and our capital
expenditure initiatives are proceeding according to plan. We have recently
completed modifications to the infrastructure of the Company to enable increased
focus and penetration into the three primary market segments that we serve. As
we head into the fourth quarter, we remain diligent in our efforts to control
costs, improve operating efficiencies, gain market share, and improve
shareholder value." Patrick Industries is a major manufacturer of component
products and a 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 NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
2004 2003 2004 2003
Net sales $80,261,000 $70,267,000 $224,594,000 $208,502,000
Cost of goods sold 69,848,000 61,358,000 197,050,000 183,960,000
Warehouse and delivery
expenses 3,544,000 3,203,000 10,218,000 9,593,000
Selling, general, and
administrative
expenses 5,537,000 4,918,000 15,663,000 15,223,000
Restructuring Charges - - - 235,000 - - - 235,000
Interest expense, net 211,000 177,000 487,000 561,000
Income (loss) before
income taxes 1,121,000 376,000 1,176,000 (1,070,000)
Income taxes (credit) 454,000 148,000 476,000 (423,000)
NET INCOME (LOSS) $667,000 $228,000 $700,000 $(647,000)
EARNINGS (LOSS) PER
COMMON SHARE $.14 $.05 $.15 $(.14)
Weighted average shares
outstanding 4,731,127 4,611,037 4,689,827 4,595,306
BALANCE SHEET
SEPTEMBER 30
2004 2003
CURRENT ASSETS
Cash and cash equivalents $40,000 $5,396,000
Trade receivables, net 24,467,000 18,586,000
Inventories 37,535,000 28,959,000
Income taxes receivable - - - 285,000
Prepaid expenses 998,000 1,137,000
Deferred tax assets 1,954,000 1,981,000
Total current assets 64,994,000 56,344,000
PROPERTY AND EQUIPMENT, NET 33,181,000 30,404,000
INTANGIBLE AND OTHER ASSETS 2,954,000 2,619,000
TOTAL ASSETS $101,129,000 $89,367,000
CURRENT LIABILITIES
Current maturities of long-term
debt $3,671,000 $3,671,000
Short-term borrowings 5,900,000 - - -
Accounts payable and accrued
liabilities 23,434,000 16,119,000
Total current liabilities 33,005,000 19,790,000
LONG-TERM DEBT, LESS CURRENT
MATURITIES 4,800,000 8,471,000
DEFERRED LIABILITIES 2,519,000 2,450,000
SHAREHOLDERS' EQUITY 60,805,000 58,656,000
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $101,129,000 $89,367,000