NEWS RELEASE February 6, 2004 FOR IMMEDIATE RELEASE CONTACT: Andy L. Nemeth PATRICK INDUSTRIES, INC. REPORTS FOURTH QUARTER AND YEAR-END RESULTS Elkhart, Indiana - - - - - - - Keith V. Kankel, President and Chief Executive Officer, today announced net sales and operating results for the fourth quarter and year ended December 31, 2003. Net sales for the fourth quarter of 2003 were $66,180,000, or 5.6% less than the $70,097,000 reported in the fourth quarter of 2002. Net sales for the 2003 year were $274,682,000, or 11.0% less than the $308,755,000 reported in 2002. Net income for the fourth quarter of 2003 was $592,000, or $.13 per share, compared to a loss of $964,000, or $.21 per share, in the fourth quarter of 2002. The Company reported a net loss for the 2003 year of $55,000, or $.01 per share, compared to net income in 2002 of $95,000, or $.02 per share. The fourth quarter of 2003 includes 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 in cash surrender value of life insurance policies. Comparatively, the fourth quarter of 2002 includes a pre-tax charge to operations of approximately $1.6 million, or $.21 per share, net of tax, pertaining to the write-off of receivables and certain other assets specifically related to the Oakwood Homes Corporation bankruptcy filing in the fourth quarter of 2002. The Manufactured Housing Industry, which represents 41% of the Company's sales for 2003, continued to show shipment declines and finished the year with shipment levels 22.3% less than they were in 2002. The Recreational Vehicle Industry, which represents approximately 31% of the Company's sales for 2003, continued its positive trend as shipments for the year finished 3.2% ahead of 2002 levels and represented the second highest level of shipments in the last 25 years. The Company continued its penetration and increased sales into the industrial and other markets, which represents approximately 28% of 2003 sales. Mr. Kankel said, "The overall restricted conditions in the Manufactured Housing Industry continue to hinder the Company's performance with regard to sales in this market segment. The Company's concerted efforts related to strategic cost reduction and keeping costs aligned with revenues have allowed us to maintain the integrity and strength of our balance sheet. Going forward, we expect to take advantage of this strength through strategic investment and other growth opportunities as well as diversification efforts and new product introductions. The Company has the capacity and is well positioned to take advantage of any upturn in the Manufactured Housing market as well as to increase its penetration into the other markets that it serves." Patrick Industries, Inc. 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 TWELVE MONTHS ENDED DECEMBER 31 DECEMBER 31 2003 2002 2003 2002 ---- ---- ---- ---- Net sales $ 66,180,000 $ 70,097,000 $274,682,000 $308,755,000 Cost of goods sold 58,539,000 61,845,000 242,499,000 269,562,000 Warehouse and delivery expenses 3,323,000 3,428,000 12,916,000 14,329,000 Selling, general, and administrative expenses - - - - - - 235,000 269,000 Interest expense, net 119,000 185,000 680,000 891,000 ------------ ------------ ------------ ------------ Income (loss) before income taxes 980,000 (1,607,000) (90,000) 158,000 Income taxes (credit) 388,000 (643,000) (35,000) 63,000 ------------ ------------ ------------ ------------ NET INCOME (LOSS) $ 592,000 $ (964,000) $ (55,000) $ 95,000 ============= ============= ============ ============= INCOME (LOSS) PER COMMON SHARE $ .13 $ (.21) $ (.01) $ .02 ============= ============= ============ ============= Weighted average shares outstanding 4,616,886 4,557,970 4,600,746 4,547,075 BALANCE SHEET ------------- DECEMBER 31 2003 2002 ---- ---- CURRENT ASSETS Cash and cash equivalents $ 7,077,000 $ 3,552,000 Trade receivables, net 14,241,000 11,545,000 Inventories 23,042,000 32,092,000 Income taxes receivable - - - 1,593,000 Prepaid expenses 914,000 849,000 Deferred tax assets 1,954,000 1,981,000 ------------- ------------- Total current assets 47,228,000 51,612,000 ------------- ------------- PROPERTY AND EQUIPMENT, NET 30,693,000 31,917,000 ------------- ------------- INTANGIBLE AND OTHER ASSETS 3,221,000 2,937,000 ------------- ------------- TOTAL ASSETS $ 81,142,000 $ 86,466,000 ============= ============ CURRENT LIABILITIES Current maturities of long-term debt $ 3,671,000 $ 3,671,000 Accounts payable and accrued liabilities 7,909,000 9,135,000 Income taxes payable 13,000 240,000 ------------- ------------- Total current liabilities 11,593,000 13,046,000 ------------- ------------- LONG-TERM DEBT, LESS CURRENT MATURITIES 7,771,000 11,443,000 ------------- ------------- DEFERRED LIABILITIES 2,104,000 2,177,000 ------------- ------------- DEFERRED INCOME TAXES 426,000 521,000 ------------- ------------- SHAREHOLDERS' EQUITY 59,248,000 59,279,000 ------------- ------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 81,142,000 $ 86,466,000 ============= ============