NEWS RELEASE JULY 17, 2003 FOR IMMEDIATE RELEASE CONTACT: ANDY L. NEMETH PATRICK INDUSTRIES, INC. REPORTS SECOND QUARTER AND SIX-MONTHS RESULTS Elkhart, Indiana - - - - - David D. Lung, President and Chief Executive Officer, today announced that net sales for the 2003 second quarter were $70,950,000, or 14% less than the $82,567,000 reported for the same period in 2002. Year to date sales were $138,235,000, or 12% less than the 2002 year to date sales of $157,810,000. The Company reported net income of $25,000 for the 2003 second quarter, or $.01 per share, compared to income of $636,000, or $.14 per share, in the second quarter of 2002. For the six months ended June 30, 2003, the Company had a net loss of $875,000, or $.19 per share, compared to net income in 2002 of $906,000, or $.20 per share. The Manufactured Housing Industry, which represents approximately 40% of the Company's 2003 sales, continued to show negative results as shipments through May were approximately 27% less than the previous year. The Recreational Vehicle Industry, which represents approximately 32% of the Company's 2003 sales, finished the month of May, 2003 at shipment levels approximately 2% ahead of the levels attained in 2002. The Company continued to show increased sales to its Industrial and Other customer market, which represents approximately 28% of the 2003 sales. Mr. Lung said "the significant decline in shipment levels in the Manufactured Housing Industry over the past four years have resulted in extremely competitive market conditions. While our margins are down from the 2002 figures, we have seen margin improvement from where we were at in the first quarter. We are continuing to focus on strategic growth opportunities both at the sales and profitability levels as well as core business strategic planning, diversification efforts, new product introductions, and keeping our costs aligned with revenues. Our balance sheet remains very strong and we feel that the Company is well positioned to take advantage of any upturn in the market as well as capitalize on our strategic planning activities." 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 13 states. # # # PATRICK INDUSTRIES, INC. UNAUDITED FINANCIAL HIGHLIGHTS
INCOME STATEMENT ---------------- THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30 JUNE 30 2003 2002 2003 2002 ---- ---- ---- ---- Net sales $ 70,950,000 $ 82,567,000 $ 138,235,000 $ 157,810,000 Cost of goods sold 62,388,000 71,712,000 122,602,000 137,219,000 Warehouse and delivery expenses 3,196,000 3,634,000 6,390,000 7,059,000 Selling, general, and administrative expenses 5,134,000 5,612,000 10,305,000 11,242,000 Restructuring charges - - - 269,000 - - - 269,000 Interest expense, net 190,000 280,000 384,000 511,000 ------------- ------------- ------------- ------------- Income (loss) before income taxes 42,000 1,060,000 (1,446,000) 1,510,000 Income taxes (credit) 17,000 424,000 (571,000) 604,000 ------------- ------------- ------------- ------------- NET INCOME (LOSS) $ 25,000 $ 636,000 $ (875,000) $ 906,000 ============= ============= ============= ============= EARNINGS (LOSS) PER COMMON SHARE $ .01 $ .14 $ (.19) $ .20 ============= ============= ============= ============= Weighted average shares outstanding 4,590,327 4,544,015 4,587,311 4,536,932
BALANCE SHEET ------------- JUNE 30 2003 2002 ---- ---- CURRENT ASSETS Cash and temporary investments $ 4,658,000 $ 5,295,000 Trade receivables, net 19,176,000 22,775,000 Inventories 30,390,000 31,601,000 Income taxes receivable 285,000 10,000 Prepaid expenses 763,000 419,000 Deferred tax assets 1,981,000 2,170,000 ------------ ------------ Total current assets 57,253,000 62,270,000 ------------ ------------ PROPERTY AND EQUIPMENT, NET 31,014,000 34,300,000 ------------ ------------ DEFERRED ASSETS - - - 312,000 ------------ ------------ INTANGIBLE AND OTHER ASSETS 2,675,000 3,129,000 ------------ ------------ TOTAL ASSETS $ 90,942,000 $100,011,000 ============ ============ CURRENT LIABILITIES Current maturities of long-term debt $ 3,671,000 $ 3,671,000 Accounts payable and accrued liabilities 15,223,000 17,977,000 Income taxes payable - - - 641,000 ------------ ------------ Total current liabilities 18,894,000 22,289,000 ------------ ------------ LONG-TERM DEBT, LESS CURRENT MATURITIES 11,443,000 15,114,000 ------------ ------------ DEFERRED LIABILITIES 2,305,000 2,331,000 ------------ ------------ SHAREHOLDERS' EQUITY 58,300,000 60,277,000 ------------ ------------ TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 90,942,000 $100,011,000 ============ ============