For
Immediate Release
Patrick
Industries, Inc. Completes New Amendment of Its Credit Agreement
ELKHART,
IN – December 16, 2009 – Patrick Industries, Inc. (NASDAQ: PATK) announced
today that it has entered into a fourth amendment (the “Fourth Amendment”) to
its senior secured credit agreement dated May 18, 2007 (the “Credit
Agreement”). The Fourth Amendment includes the modification of
certain definitions, terms and reporting requirements to better align with the
Company’s updated operating and cash flow projections for fiscal year
2010.
Pursuant
to the Fourth Amendment entered into on December 11, 2009, the financial
covenants were modified to establish new quarterly minimum consolidated earnings
before interest, taxes, depreciation and amortization (“EBITDA”) requirements
that will replace the existing minimum one-month and two-month requirements
beginning with the fiscal quarter ended March 28, 2010. Additionally,
monthly borrowing limits under the revolving commitments were reset in
conjunction with updated projected monthly cash flows for
2010. Borrowings under the revolving line of credit are subject to a
borrowing base, up to a maximum borrowing limit of $28.0 million for fiscal year
2010. The interest rates for borrowings under the revolving line of
credit and the term loan, and the expiration date of the Credit Agreement
remained unchanged.
"We are
pleased to have entered into this amendment of our credit agreement that
reflects the modifications made to our operating plan for the 2010 fiscal year
in anticipation of improving market conditions in the RV industry and
stabilization in the manufactured housing industry and industrial
markets. The amendment further reflects the Company’s forward
operating momentum and the strong relationship we have with our senior lenders
who have been extremely supportive as we continue to reduce our leverage
position. The progress we have made has taken a total team effort and
we are extremely appreciative of the continued support of our banking group,
customers, suppliers, shareholders, and team members as we are cautiously
optimistic about what 2010 will bring from a market perspective," stated Todd
Cleveland, President and Chief Executive Officer.
About
Patrick Industries
Patrick
Industries, Inc. (www.patrickind.com)
is a major manufacturer of component products and 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 through locations in 13
states. Patrick’s major manufactured products include decorative
vinyl and paper panels, wrapped moldings, cabinet doors and components, slotwall
and slotwall components, and countertops. The Company also
distributes drywall and drywall finishing products, interior passage doors,
roofing products, vinyl and cement siding, electronic products, and other
miscellaneous products.
Forward-Looking
Statements
This
press release contains certain statements related to future results, or states
our intentions, beliefs and expectations or predictions for the future, which
are forward-looking statements as that term is defined in the Private Securities
Litigation Reform Act of 1995. These forward-looking statements
involve a number of risks and uncertainties that could cause actual results to
differ materially from either historical or anticipated results depending on a
variety of factors. Potential factors that could impact results
include: pricing pressures due to competition, costs and availability
of raw materials, availability of retail and wholesale financing for
manufactured homes, availability and costs of labor, inventory levels of
retailers and manufacturers, levels of repossessed manufactured homes, the
financial condition of our customers, the ability to generate cash flow or
obtain financing to fund growth, future growth rates in the Company’s core
businesses, interest rates, oil and gasoline prices, the outcome of litigation,
adverse weather conditions impacting retail sales, and our ability to remain in
compliance with our credit agreement covenants. In addition, national
and regional economic conditions and consumer confidence may affect the retail
sale of recreational vehicles and manufactured homes. The Company
does not undertake to update forward-looking statements to reflect circumstances
or events that occur after the date the forward-looking statements are
made. Further information regarding these and other risks,
uncertainties and factors is contained in the section entitled “Risk Factors” in
the Company’s Annual Report on Form 10-K for the year ended December 31,
2008, and in the Company's Form 10-Qs for subsequent quarterly periods,
which are filed with the Securities and Exchange Commission (“SEC”) and are
available on the SEC’s website at www.sec.gov.
###
Contact:
Julie Ann
Kotowski
Patrick
Industries, Inc.
574-294-7511
/ kotowskj@patrickind.com