NEWS RELEASE APRIL 24, 2003 FOR IMMEDIATE RELEASE CONTACT: ANDY L. NEMETH PATRICK INDUSTRIES, INC. REPORTS FIRST QUARTER RESULTS Elkhart, Indiana - - - - David D. Lung, President and Chief Executive Officer of Patrick Industries, Inc., today announced sales and operating results for the first quarter of 2003. Net sales for the three months ended March 31, 2003 were $67,285,000, or 10.6% less than the $75,243,000 for the same period in 2002. The Company incurred a net loss of $900,000, or $.20 per share, compared to net income of $270,000, or $.06 per share, in the 2002 quarter. The decline in sales comes at a time when shipments in the Manufactured Housing Industry, which represents 39% of the Company's sales, are down more than 26% from the previous year. Shipments to the Recreational Vehicle Industry, which represents 33% of the Company's 2003 sales and have helped to offset the declines in the Manufactured Housing Industry, are up more than 10%. Mr. Lung said, "The continued uncertainties in the Manufactured Housing Industry related to dealer and retail financing, high repossessed inventory levels, and continued plant shutdowns, have been coupled with a lack of consumer confidence due to a stagnant economy and a war in Iraq. Business conditions have gotten increasingly more competitive and have forced the Company to reduce prices resulting in decreased profitability." Mr. Lung said "While we are disappointed with the first quarter results, we are continuing to focus on strategic growth opportunities, diversification efforts, and new product opportunities as well as keeping our costs aligned with revenues in these difficult times. Our balance sheet remains very strong and we have just completed the renewal of our credit facility with our financial institutions which extends for the next three years. We feel that we are ready to take advantage of any upturn in the market." Patrick Industries is a major component products manufacturer and supplier of building products serving the Manufactured Housing, Recreational Vehicle, Furniture, Marine, Architectural, and Automotive markets and operates coast to coast in thirteen states. # # # PATRICK INDUSTRIES, INC. UNAUDITED FINANCIAL HIGHLIGHTS INCOME STATEMENT ---------------- THREE MONTHS ENDED MARCH 31 2003 2002 ---- ---- Net sales $ 67,285,000 $ 75,243,000 Cost of goods sold 60,214,000 65,507,000 Warehouse and delivery expenses 3,194,000 3,425,000 Selling, general, and administrative expenses 5,171,000 5,630,000 Interest expense, net 194,000 231,000 ------------ ------------ Income (loss) before income taxes (1,488,000) 450,000 Income taxes (credit) (588,000) 180,000 ------------ ------------ NET INCOME (LOSS) $ (900,000) $ 270,000 ============ ============ EARNINGS (LOSS) PER COMMON SHARE $ (.20) $ .06 ============ ============ Weighted average shares outstanding 4,584,261 4,529,770 BALANCE SHEET ------------- MARCH 31 2003 2002 ---- ---- CURRENT ASSETS Cash and cash equivalents $ 1,790,000 $ 5,147,000 Trade receivables, net 17,520,000 20,834,000 Inventories 31,906,000 28,813,000 Income taxes receivable 1,053,000 3,047,000 Prepaid expenses 1,324,000 789,000 Deferred tax assets 1,981,000 2,014,000 ----------- ----------- Total current assets 55,574,000 60,644,000 ----------- ----------- PROPERTY AND EQUIPMENT, NET 31,422,000 33,288,000 ----------- ----------- INTANGIBLE AND OTHER ASSETS 2,751,000 3,066,000 ----------- ----------- TOTAL ASSETS $89,747,000 $96,998,000 =========== =========== CURRENT LIABILITIES Current maturities of long-term debt $ 3,671,000 $ 3,671,000 Accounts payable and accrued liabilities 14,036,000 16,290,000 ----------- ----------- Total current liabilities 17,707,000 19,961,000 ----------- ----------- LONG-TERM DEBT, LESS CURRENT MATURITIES 11,443,000 15,114,000 ----------- ----------- DEFERRED LIABILITIES 2,401,000 2,319,000 ----------- ----------- SHAREHOLDERS' EQUITY 58,196,000 59,604,000 ----------- ----------- TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $89,747,000 $96,998,000 =========== ===========