NEWS RELEASE
February 10, 2005
FOR IMMEDIATE RELEASE
CONTACT: Andy L. Nemeth
PATRICK INDUSTRIES, INC.
REPORTS FOURTH QUARTER AND YEAR-END RESULTS
Elkhart, Indiana - - - - - - - Paul E. Hassler, President and Chief
Executive Officer, today announced sales and operating results for the fourth
quarter and year ended December 31, 2004. Net sales increased $10,781,000, or
16.3%, from $66,180,000 in the fourth quarter of 2003 to $76,961,000 in the
fourth quarter of 2004. Year to date net sales increased $26,873,000, or 9.8%,
from $274,682,000 in the twelve months ending December 31, 2003 to $301,555,000
in the same period in 2004. The Company reported a net loss of $99,000, or $.02
per share, for the fourth quarter of 2004 compared to net income of $592,000, or
$.13 per share, in the same period in 2003. For the year ended December 31, 2004
the Company reported net income of $601,000, or $.13 per share, compared to a
net loss in 2003 of $55,000, or $.01 per share.
Year end results for 2004 include a $450,000, or $.06 net of tax, charge to
operations for bad debts related to one customer and gains of approximately
$546,000, or $.07 net of tax, related to life insurance proceeds and sale of
buildings. Comparatively, the fourth quarter and twelve month period ended
December 31, 2003 included 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 to
cash surrender value of life insurance policies.
The Manufactured Housing industry, which represents 41% of the Company's
sales for 2004, experienced its first quarterly increase in shipments since the
fourth quarter of 2001 with an approximate 9.1% increase in the fourth quarter
of 2004. Year to year shipments in this industry were comparable to those in
2003. The Recreational Vehicle industry, which represents approximately 31% of
the Company's sales in 2004, continued on its strong pace with shipment
increases of approximately 15% through November, 2004 compared to those posted
in 2003, which was a near record year. The Industrial and Other markets, which
represent 28% of the Company's sales in 2004, continued to show improvement with
sales increasing approximately 11% over the 2003 levels.
Mr. Hassler said, "We are encouraged by our twelve month operating results
especially in light of the difficult conditions in the Manufactured Housing and
Furniture industries. While the Company's restructuring efforts contributed to
increased profitability in 2004, significant competitive pricing pressures and
late shipments of imported materials resulted in decreased margins in the fourth
quarter. The Company has remained diligent in its efforts to intensify its focus
into the three primary markets that it serves through infrastructure
modifications which are nearly complete. Our capital expenditure projects are
proceeding according to plan and our overall costs have remained aligned with
revenues. Our efforts to increase operating efficiencies, gain market share, and
improve bottom line results remain the top priority."
Patrick Industries, Inc. 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 TWELVE MONTHS ENDED
DECEMBER 31 DECEMBER 31
2004 2003 2004 2003
---- ---- ---- ----
Net sales $ 76,961,000 $ 66,180,000 $ 301,555,000 $ 274,682,000
Cost of goods sold 68,625,000 58,539,000 265,675,000 242,499,000
Warehouse and delivery expenses 3,501,000 3,323,000 13,719,000 12,916,000
Selling, general, and
administrative expenses 4,826,000 3,219,000 20,489,000 18,442,000
Restructuring charges - - - - - - - - - 235,000
Interest expense, net 184,000 119,000 671,000 680,000
------------- ------------- ------------- -------------
Income (loss) before income taxes (175,000) 980,000 1,001,000 (90,000)
Income taxes (credit) (76,000) 388,000 400,000 (35,000)
------------- ------------- ------------- -------------
NET INCOME (LOSS) $ (99,000) $ 592,000 $ 601,000 $ (55,000)
============= ============= ============= =============
INCOME (LOSS) PER COMMON SHARE $ (.02) $ .13 $ .13 $ (.01)
============= ============= ============= =============
Weighted average shares outstanding 4,744,900 4,616,886 4,703,671 4,600,746
BALANCE SHEET
-------------
DECEMBER 31
2004 2003
---- ----
CURRENT ASSETS
Cash and cash equivalents $ 83,000 $ 7,077,000
Trade receivables, net 16,720,000 14,241,000
Inventories 34,344,000 23,042,000
Prepaid expenses 951,000 914,000
Deferred tax assets 1,658,000 1,954,000
----------- -----------
Total current assets 53,756,000 47,228,000
----------- -----------
PROPERTY AND EQUIPMENT, NET 35,643,000 30,693,000
----------- -----------
OTHER ASSETS 2,976,000 3,221,000
----------- -----------
TOTAL ASSETS $92,375,000 $81,142,000
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CURRENT LIABILITIES
Current maturities of long-term debt $ 3,671,000 $ 3,671,000
Short-term borrowings 7,300,000 - - -
Accounts payable and accrued liabilities 13,886,000 7,909,000
Income taxes payable 129,000 13,000
----------- -----------
Total current liabilities 24,986,000 11,593,000
----------- -----------
LONG-TERM DEBT, LESS CURRENT MATURITIES 4,100,000 7,771,000
----------- -----------
DEFERRED LIABILITIES 2,549,000 2,530,000
----------- -----------
SHAREHOLDERS' EQUITY 60,740,000 59,248,000
----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $92,375,000 $81,142,000
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