PATRICK INDUSTRIES, INC. 1800 S. 14TH STREET o P.O. BOX 638 o ELKHART, IN 46515 [PATRICK LOGO] PHONE: (574) 294-7511 o FAX (574) 522-5213 NEWS RELEASE APRIL 23, 2004 FOR IMMEDIATE RELEASE CONTACT: Andy L. Nemeth PATRICK INDUSTRIES, INC. REPORTS FIRST QUARTER RESULTS ELKHART, Indiana - - - - Paul E. Hassler, President and Chief Executive Officer, today announced net sales and operating results for the first quarter of 2004. Net sales decreased $1,573,000, or 2.3%, from $67,285,000 in the first three months of 2003 to $65,712,000 in the same period in 2004. Net losses decreased by $378,000, or 42.1%, from a loss of $900,000, or $.20 per share in the first quarter of 2003, to a loss of $522,000, or $.11 per share in the first quarter of 2004. Mr. Hassler said, "The Company's sales levels continue to be impacted by shipment levels in the Manufactured Housing and Recreational Vehicle Industries, which account for 71% of total sales at March 31, 2004. While we saw some margin improvement from 2003 as a result of our restructuring efforts, we continue to be faced with extremely competitive market pricing that is affecting profitability at these volume levels." The Manufactured Housing Industry, which comprises 38% of first quarter 2004 sales, experienced shipment declines of more than 12% through February when compared to 2003, and continue to be at more than 40 year lows. Shipment increases of more than 12% in the Recreational Vehicle Industry, which accounts for 33% of first quarter 2004 sales, partially offset the Manufactured Housing declines as well as the Company gaining market share in the Industrial and other markets. Mr. Hassler said, "The Company is proceeding with its strategic planning efforts and increased investment in capital equipment, facilities, and personnel to help establish a stronger foundation for future growth. We recently completed negotiations to increase our line of credit by $5 million to bring our total availability to $15 million, none of which is borrowed on at March 31, 2004. We will continue to evaluate our cost structures at these low sales levels, which are approximately close to break-even, and make adjustments where necessary. We remain focused on providing exceptional customer service, increasing our penetration into the Industrial and other markets, in addition to the Manufactured Housing and Recreational Vehicle markets, and maximizing shareholder value." Patrick Industries is a major manufacturer of component products and distributor of building products serving the Manufactured Housing, Recreational Vehicle, Furniture, Marine, and Industrial markets and operates coast to coast in thirteen states. # # # PATRICK INDUSTRIES, INC. UNAUDITED FINANCIAL HIGHLIGHTS INCOME STATEMENT ---------------- THREE MONTHS ENDED MARCH 31 2004 2003 ---- ---- Net sales $ 65,712,000 $ 67,285,000 Cost of goods sold 58,119,000 60,214,000 Warehouse and delivery expenses 3,161,000 3,194,000 Selling, general, and administrative expenses 5,156,000 5,171,000 Interest expense, net 138,000 194,000 ------------ ------------ Income (loss) before income taxes (862,000) (1,488,000) Income taxes (credit) (340,000) (588,000) ------------ ------------ NET INCOME (LOSS) $ (522,000) $ (900,000) ============ ============ EARNINGS (LOSS) PER COMMON SHARE $ (.11) $ (.20) ============ ============ Weighted average shares outstanding 4,640,741 4,584,261 BALANCE SHEET ------------- MARCH 31 2004 2003 ---- ---- CURRENT ASSETS Cash and cash equivalents $ 1,337,000 $ 1,790,000 Trade receivables, net 19,905,000 17,520,000 Inventories 27,634,000 31,906,000 Income taxes receivable - - - 1,053,000 Prepaid expenses 919,000 1,324,000 Deferred tax assets 1,954,000 1,981,000 ------------ ------------ Total current assets 51,749,000 55,574,000 ------------ ------------ PROPERTY AND EQUIPMENT, NET 33,406,000 31,422,000 ------------ ------------ INTANGIBLE AND OTHER ASSETS 3,239,000 2,751,000 ------------ ------------ TOTAL ASSETS $ 88,394,000 $ 89,747,000 ============ ============ CURRENT LIABILITIES Current maturities of long-term debt $ 3,671,000 $ 3,671,000 Accounts payable and accrued liabilities 15,615,000 14,036,000 ------------ ------------ Total current liabilities 19,286,000 17,707,000 ------------ ------------ LONG-TERM DEBT, LESS CURRENT MATURITIES 7,771,000 11,443,000 ------------ ------------ DEFERRED LIABILITIES 2,209,000 2,401,000 ------------ ------------ SHAREHOLDERS' EQUITY 59,128,000 58,196,000 ------------ ------------ TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $ 88,394,000 $ 89,747,000 ============ ============