NEWS RELEASE
JULY 26, 2005
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 of Patrick Industries, Inc. (PATK), today announced net sales and
operating results for the three and six month periods ending June 30, 2005.
Second quarter 2005 net sales increased slightly from $78,621,000 in 2004 to
$78,645,000 in 2005. Year to date net sales increased $14,042,000, or 9.7%, from
$144,333,000 in 2004 to $158,375,000 in 2005. Net income for the second quarter
2005 decreased from $555,000, or $.12 per share, in 2004 to $238,000, or $.05
per share, in 2005. The second quarter of 2004 includes a pre-tax gain of
$353,000 related to proceeds on a life insurance policy. Year to date net income
increased from $33,000, or $.01 per share, in 2004 to $107,000, or $.02 per
share, in 2005. Mr. Hassler said, "While we have increased sales and market
penetration into the Manufactured Housing industry, overall sales levels
decreased from the robust first quarter trend due primarily to production
declines as a result of excess finished goods inventory levels at certain of our
recreational vehicle customers."
Shipment levels in the Manufactured Housing industry, which represent 42%
of the Company's sales, have increased approximately 3% through June over the
2004 levels. Shipment levels in the Recreational Vehicle industry, which
represent 29% of the Company's sales, have remained consistent with the 2004
figures increasing approximately 1% through May, 2005. The Company's sales to
the Industrial markets have continued to increase and represent 29% of the
consolidated sales at June 30, 2005.
Mr. Hassler said, "Certain of our sales initiatives have been met with
significant competitive pricing pressures as a result of market conditions in
the industries that we serve, however, we remain committed to the execution of
our strategic plan and the investments that we have made in personnel, property,
and equipment. While we are currently operating at approximate break-even sales
levels, the Company has the resources and infrastructure in place to support
significant future growth and profitability."
Patrick Industries is a major manufacturer of component products and
distributor of building products serving the Manufactured Housing, Recreational
Vehicle, Kitchen Cabinet, Furniture, Marine, and other 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
2005 2004 2005 2004
---- ---- ---- ----
Net sales $ 78,645,000 $ 78,621,000 $158,375,000 $144,333,000
Cost of goods sold 69,081,000 69,083,000 140,009,000 127,202,000
Warehouse and delivery expenses 3,442,000 3,513,000 6,982,000 6,674,000
Selling, general, and
administrative expenses 5,337,000 4,970,000 10,547,000 10,126,000
Interest expense, net 389,000 138,000 659,000 276,000
------------ ------------ ------------ ------------
Income before income taxes 396,000 917,000 178,000 55,000
Income taxes 158,000 362,000 71,000 22,000
------------ ------------ ------------ ------------
NET INCOME $ 238,000 $ 555,000 $ 107,000 33,000
============ ============ ============ ============
EARNINGS PER COMMON SHARE $ .05 $ .12 $ .02 $ .01
============ ============ ============ ============
Weighted average shares outstanding 4,761,121 4,697,159 4,754,190 4,668,950
BALANCE SHEET
-------------
JUNE 30
2005 2004
---- ----
CURRENT ASSETS
Cash and cash equivalents $ 53,000 $ 94,000
Trade receivables, net 22,438,000 23,499,000
Inventories 39,483,000 34,305,000
Prepaid expenses 1,131,000 848,000
Deferred tax assets 1,658,000 1,954,000
------------ ------------
Total current assets 64,763,000 60,700,000
------------ ------------
PROPERTY AND EQUIPMENT, NET 36,562,000 33,710,000
------------ ------------
OTHER ASSETS 2,907,000 3,001,000
------------ ------------
TOTAL ASSETS $104,232,000 $ 97,411,000
============ ============
CURRENT LIABILITIES
Current maturities of long-term debt $ 4,227,000 $ 3,671,000
Short-term borrowings - - - 2,000,000
Accounts payable and accrued liabilities 18,019,000 21,523,000
------------ ------------
Total current liabilities 22,246,000 27,194,000
------------ ------------
LONG-TERM DEBT, LESS CURRENT MATURITIES 18,545,000 7,771,000
------------ ------------
OTHER LONG-TERM LIABILITIES 2,996,000 2,503,000
------------ ------------
SHAREHOLDERS' EQUITY 60,445,000 59,943,000
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $104,232,000 $ 97,411,000
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