NEWS RELEASE OCTOBER 21, 2003 FOR IMMEDIATE RELEASE CONTACT: ANDY L. NEMETH PATRICK INDUSTRIES, INC. REPORTS THIRD QUARTER AND NINE-MONTHS RESULTS Elkhart, Indiana - - - - - Keith V. Kankel, President and Chief Executive Officer, announced increased earnings for the third quarter 2003. The Company reported net income for the three months ended September 30, 2003 of $228,000, or $.05 per share, compared to net income of $153,000, or $.03 per share, in the same period in 2002. Year to date for 2003 the net loss was reduced to $647,000, or $.14 per share, compared to net income of $1,059,000, or $.23 per share, in 2002. Net sales for the quarter ending September 30, 2003 were $70,267,000, or 13.1% less than the $80,848,000 reported in the same period in 2002. For the nine months ended September 30, 2003, net sales were $208,502,000, or 12.6% less than the $238,658,000 reported in the same period in 2002. Included in the 2003 operating results is 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, as well as a gain on sale of fixed assets of approximately $158,000, or $.02 per share net of tax, related to the sale of one of the Company's idle manufacturing facilities. The Manufactured Housing Industry, which represents 41% of the Company's sales through September, continued its decline as August shipments for both the month and year to date were down almost 25% from the 2002 levels. Alternatively, the Recreational Vehicle Industry, which represents another 32% of the Company's sales through September, continued its robust pace as shipments were up almost 2% from the previous year through August. The Company experienced increased penetration into the industrial and other customer markets, which represents approximately 27% of the 2003 sales. Mr. Kankel said, "While shipment levels in the Manufacturing Housing Industry continue their negative trend, we are pleased to report improved operating results for the quarter. Our gross profit percentages have continued to increase on a quarterly basis in 2003 and we have remained diligent in our efforts to keep operating costs aligned with revenues. As we brace for the anticipated seasonal decline in sales volume in the fourth quarter, we continue to focus on strategic growth opportunities and diversification efforts, as well as new product introductions and capital improvements. This Company is well positioned to take advantage of any upturn in the markets to which we serve." Patrick Industries is a major component products manufacturer and supplier of building products serving the Manufactured Housing, Recreational Vehicle, Furniture, Marine, Architectural and Automotive aftermarkets, and operates coast to coast in 13 states. # # # PATRICK INDUSTRIES, INC. UNAUDITED FINANCIAL HIGHLIGHTS
INCOME STATEMENT ---------------- THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 2003 2002 2003 2002 ---- ---- ---- ---- Net sales $ 70,267,000 $ 80,848,000 $208,502,000 $238,658,000 Cost of goods sold 61,358,000 70,498,000 183,960,000 207,717,000 Warehouse and delivery expenses 3,203,000 3,842,000 9,593,000 10,901,000 Selling, general, and administrative expenses 4,918,000 6,058,000 15,223,000 17,300,000 Restructuring charges 235,000 - - - 235,000 269,000 Interest expense, net 177,000 195,000 561,000 706,000 Income (loss) before income taxes 376,000 255,000 (1,070,000) 1,765,000 Income taxes (credit) 148,000 102,000 (423,000) 706,000 NET INCOME (LOSS) $ 228,000 $ 153,000 $ (647,000) $ 1,059,000 EARNINGS (LOSS) PER COMMON SHARE $ .05 $ .03 $ (.14) $ .23 Weighted average shares outstanding 4,611,037 4,556,136 4,595,306 4,543,404 BALANCE SHEET ------------- SEPTEMBER 30 2003 2002 ---- ---- CURRENT ASSETS Cash and temporary investments $ 5,396,000 $ 982,000 Trade receivables, net 18,586,000 22,826,000 Inventories 28,959,000 36,194,000 Income taxes receivable 285,000 - - - Prepaid expenses 1,137,000 630,000 Deferred tax assets 1,981,000 2,170,000 Total current assets 56,344,000 62,802,000 PROPERTY AND EQUIPMENT, NET 30,404,000 33,236,000 DEFERRED ASSETS - - - 231,000 INTANGIBLE AND OTHER ASSETS 2,619,000 2,959,000 TOTAL ASSETS $ 89,367,000 $ 99,228,000 CURRENT LIABILITIES Current maturities of long-term debt $ 3,671,000 $ 3,671,000 Accounts payable and accrued liabilities 16,119,000 20,385,000 Income taxes payable - - - 529,000 Total current liabilities 19,790,000 24,585,000 LONG-TERM DEBT, LESS CURRENT MATURITIES 8,471,000 12,143,000 DEFERRED LIABILITIES 2,450,000 2,252,000 SHAREHOLDERS' EQUITY 58,656,000 60,248,000 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 89,367,000 $ 99,228,000