PRESS RELEASE Patrick Industries, Inc. PATRICK INDUSTRIES, INC. REPORTS THIRD QUARTER AND NINE MONTHS RESULTS Monday October 25, 12:44 pm ET ELKHART, Ind., Oct. 25 /PRNewswire-FirstCall/ -- Paul E. Hassler, President and Chief Executive Officer of Patrick Industries, Inc. (Nasdaq: PATK - News), announced increased net sales and operating results for the third quarter and nine months ended September 30, 2004. Net sales for the third quarter ending September 30, 2004 increased approximately 14.2%, from $70,267,000 in the third quarter of 2003 to $80,261,000 in the third quarter of 2004. Year to date, net sales increased approximately 7.7%, from $208,502,000 for the nine month period ending September 30, 2003 to $224,594,000 in the same period of 2004. The Company reported net income of $667,000, or $.14 per share, in the third quarter of 2004 compared to net income of $228,000, or $.05 per share, in the third quarter of 2003 and year to date net income of $700,000, or $.15 per share, compared to a net loss of $647,000, or $.14 per share, in the same period of 2003. The 2004 operating results include an increase in the allowance for doubtful accounts related to one customer of approximately $450,000, or $.06 per share, net of tax, and a gain on sale of a building of approximately $193,000, or $.02 per share, net of tax. Comparatively, the 2003 operating results include a gain on sale of a building of approximately $158,000, or $.02 per share, net of tax, as well as 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. The Manufactured Housing Industry, which represents approximately 40% of the Company's 2004 sales, continued its decline through August with shipments decreasing approximately 4% from the previous year. The Recreational Vehicle Industry, which represents approximately 31% of the Company's 2004 sales, continued to post strong results with shipments increasing approximately 18% through August. The Company increased its penetration into the Industrial markets which represent approximately 29% of 2004 sales. Mr. Hassler said, "We are pleased with the improved operating performance in light of the difficult conditions in the Manufactured Housing and Furniture industries. Our restructuring efforts in 2003 have increased profitability and our capital expenditure initiatives are proceeding according to plan. We have recently completed modifications to the infrastructure of the Company to enable increased focus and penetration into the three primary market segments that we serve. As we head into the fourth quarter, we remain diligent in our efforts to control costs, improve operating efficiencies, gain market share, and improve shareholder value." Patrick Industries is a major manufacturer of component products and a 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 NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 2004 2003 2004 2003 Net sales $80,261,000 $70,267,000 $224,594,000 $208,502,000 Cost of goods sold 69,848,000 61,358,000 197,050,000 183,960,000 Warehouse and delivery expenses 3,544,000 3,203,000 10,218,000 9,593,000 Selling, general, and administrative expenses 5,537,000 4,918,000 15,663,000 15,223,000 Restructuring Charges - - - 235,000 - - - 235,000 Interest expense, net 211,000 177,000 487,000 561,000 Income (loss) before income taxes 1,121,000 376,000 1,176,000 (1,070,000) Income taxes (credit) 454,000 148,000 476,000 (423,000) NET INCOME (LOSS) $667,000 $228,000 $700,000 $(647,000) EARNINGS (LOSS) PER COMMON SHARE $.14 $.05 $.15 $(.14) Weighted average shares outstanding 4,731,127 4,611,037 4,689,827 4,595,306 BALANCE SHEET SEPTEMBER 30 2004 2003 CURRENT ASSETS Cash and cash equivalents $40,000 $5,396,000 Trade receivables, net 24,467,000 18,586,000 Inventories 37,535,000 28,959,000 Income taxes receivable - - - 285,000 Prepaid expenses 998,000 1,137,000 Deferred tax assets 1,954,000 1,981,000 Total current assets 64,994,000 56,344,000 PROPERTY AND EQUIPMENT, NET 33,181,000 30,404,000 INTANGIBLE AND OTHER ASSETS 2,954,000 2,619,000 TOTAL ASSETS $101,129,000 $89,367,000 CURRENT LIABILITIES Current maturities of long-term debt $3,671,000 $3,671,000 Short-term borrowings 5,900,000 - - - Accounts payable and accrued liabilities 23,434,000 16,119,000 Total current liabilities 33,005,000 19,790,000 LONG-TERM DEBT, LESS CURRENT MATURITIES 4,800,000 8,471,000 DEFERRED LIABILITIES 2,519,000 2,450,000 SHAREHOLDERS' EQUITY 60,805,000 58,656,000 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $101,129,000 $89,367,000