NEWS RELEASE
February 7, 2006
FOR IMMEDIATE RELEASE
CONTACT: Andy L. Nemeth
PATRICK INDUSTRIES, INC.
REPORTS FOURTH QUARTER AND YEAR-END RESULTS
Elkhart, Indiana - - - - - - - Paul E. Hassler, President and Chief Executive Officer, today announced increased net sales and operating results for the fourth quarter and year ending December 31, 2005. Net sales for the fourth quarter of 2005 increased $6.9 million, or 9.0%, from $77.0 million in the fourth quarter of 2004 to $83.9 million in the fourth quarter of 2005. Year to date net sales increased $21.8 million, or 7.2%, from $301.6 million in 2004 to $323.4 million in 2005. Operating income increased $2.3 million, from a break-even in the fourth quarter of 2004 to $2.3 million in the fourth quarter of 2005 and increased $2.2 million year to date, from $1.6 million in 2004 to $3.8 million in 2005. Net income increased $1.3 million, or $.27 per share in the fourth quarter, from a loss of $0.1 million, or $.02 per share in 2004, to income of $1.2 million, or $.25 per share in 2005. Year to date net income increased $0.8 million, or $.17 per share, from $0.6 million, or $.13 per share in 2004, to $1.4 million, or $.30 per share in 2005. Receivables increased from period to period as a result of the increased activity and inventory levels held constant. Mr. Hassler said, “After several years of relatively flat financial performance, we are happy to report our strongest operating results since 1999. We are pleased with the increased contribution as a result of the increased revenues in the fourth quarter. The surge in demand in the Manufactured Housing and Recreational Vehicle industries for temporary housing related to damage from the hurricanes in the Southeast helped to propel the Company’s sales levels over the break-even point which we had been operating at most of this year.”
The Manufactured Housing and Recreational Vehicle industries, which represent approximately 74% of the Company’s sales, experienced a temporary increase in shipment levels in the fourth quarter due to the increased FEMA demand. While December 2005 data was not available at the time of this release, Manufactured Housing shipments increased approximately 35% and 46% for the months of October and November, respectively, and Recreational Vehicle shipments increased approximately 5% and 26%, respectively, for the same periods. The Company estimates additional sales volume related to the disaster relief of approximately $6.0 million. Mr. Hassler said, “The results in the fourth quarter are a reflection of a complete team effort. Our size, national presence, valued customer, supplier and employee relationships, available capacity, and our ability to be able to react very quickly to our customers changing needs proved invaluable as we met both our normal demand requirements and the incremental disaster relief business needs as well.”
Mr. Hassler further noted, “Our efforts to increase penetration into the Industrial and other markets continues and we are making progress on diversifying our customer base. The Company is structured to increase revenues in all market sectors that we serve without adding significant incremental fixed costs, and we remain diligent in our efforts to operate a lean organization. We are constantly looking for opportunities to improve efficiencies and reduce fixed overhead. As we head into 2006 and it is unclear whether or not there will be any more demand for FEMA related units, we are focused on hitting the targets set out in our strategic plan, growing market share, maximizing capacity utilization, identifying and pursuing quality acquisitions, and increasing shareholder value.”
Patrick Industries, Inc. is a major manufacturer of component products and a distributor of building products serving the Manufactured Housing, Recreational Vehicle, Kitchen Cabinet, Home and Office Furniture, Fixture and Commercial Furnishings, Marine, and other Industrial markets, and operates coast to coast in thirteen states.
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PATRICK INDUSTRIES, INC.
UNAUDITED FINANCIAL HIGHLIGHTS
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INCOME STATEMENT |
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|
THREE MONTHS ENDED |
TWELVE MONTHS ENDED |
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DECEMBER 31 |
DECEMBER 31 |
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|
2005 |
2004 |
2005 |
2004 | |||||||
|
Net sales |
$ 83,893,000 |
$ 76,961,000 |
$323,400,000 |
$301,555,000 |
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|
Cost of goods sold |
73,346,000 |
68,625,000 |
285,260,000 |
265,675,000 |
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|
Warehouse and delivery expenses |
3,571,000 |
3,501,000 |
13,904,000 |
13,719,000 | |||||||||||||||||||||||||
|
Selling, general, and administrative expenses |
4,645,000 |
4,826,000 |
20,400,000 |
20,489,000 | |||||||||||||||||||||||||
|
|
Operating income |
2,331,000 |
9,000 |
3,836,000 |
1,672,000 |
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Interest expense, net |
301,000 |
184,000 |
1,396,000 |
671,000 |
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|
Income (loss) before income taxes |
2,030,000 |
(175,000) |
2,440,000 |
1,001,000 |
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|
Income taxes (credit) |
852,000 |
(76,000) |
1,016,000 |
400,000 |
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|
NET INCOME (LOSS) |
$ |
1,178,000 |
$ |
(99,000) |
$ |
1,424,000 |
$ |
601,000 |
|
INCOME (LOSS) PER COMMON SHARE |
$ |
.25 |
$ |
(.02) |
$ |
.30 |
$ |
.13 |
|
Weighted average shares outstanding |
4,806,945 |
4,744,900 |
4,773,882 |
4,703,671 |
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BALANCE SHEET |
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|
DECEMBER 31 |
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|
2005 |
2004 | |||
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CURRENT ASSETS |
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|
Cash and cash equivalents |
$ |
1,077,000 |
$ |
83,000 | ||||||||||||
|
|
Trade receivables, net |
20,339,000 |
16,720,000 |
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|
Inventories |
33,936,000 |
34,344,000 |
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|
|
Prepaid expenses |
498,000 |
951,000 |
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|
Deferred tax assets |
1,141,000 |
1,658,000 |
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|
|
Total current assets |
56,991,000 |
53,756,000 |
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|
PROPERTY AND EQUIPMENT, NET |
39,674,000 |
35,643,000 |
|
OTHER ASSETS |
3,065,000 |
2,976,000 |
|
TOTAL ASSETS |
$99,730,000 |
$ 92,375,000 |
|
CURRENT LIABILITIES |
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|
|
Current maturities of long-term debt |
$ |
2,628,000 |
$ |
3,671,000 | |||||||||||
|
|
Short-term borrowings |
- - - |
7,300,000 |
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|
|
Accounts payable and accrued liabilities |
14,876,000 |
13,886,000 |
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|
|
Income taxes payable |
40,000 |
129,000 |
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|
|
Total current liabilities |
17,544,000 |
24,986,000 |
| ||||||||||||
|
LONG-TERM DEBT, LESS CURRENT MATURITIES |
16,472,000 |
4,100,000 |
|
DEFERRED LIABILITIES |
3,034,000 |
2,549,000 |
|
SHAREHOLDERS' EQUITY |
62,680,000 |
60,740,000 |
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$99,730,000 |
$ 92,375,000 |