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Patrick Industries, Inc. Reports Fourth Quarter And Twelve Months 2009 Financial Results

ELKHART, Ind., March 17 /PRNewswire-FirstCall/ -- Patrick Industries, Inc. (Nasdaq: PATK), a major manufacturer and distributor of building and component products for the recreational vehicle (RV), manufactured housing (MH) and industrial markets, today reported financial results for the fourth quarter and twelve months ended December 31, 2009.  

For the fourth quarter of 2009, Patrick reported net income of $0.9 million or $0.09 per diluted share, compared to a net loss of $69.2 million or $7.59 per diluted share for 2008.  The net loss for 2008 included a non-cash after-tax charge to establish a deferred tax asset valuation allowance of approximately $18.0 million or $1.97 per diluted share.

Fourth quarter 2009 pretax income from continuing operations of $1.0 million included a non-cash credit of approximately $0.5 million related to mark-to-market accounting for common stock warrants issued to the Company's senior lenders in December 2008, and a net gain on the sale of fixed assets, including the sale of the Company's Florida facility, of approximately $1.2 million.  The fourth quarter 2008 pretax loss from continuing operations of $72.6 million included non-cash impairment charges related to goodwill, other intangible assets, and certain other long-lived assets of approximately $60.2 million, and the write-down and disposal of slow-moving inventory of approximately $3.8 million.

Income from continuing operations, net of tax, was $1.5 million or $0.15 per diluted share in the fourth quarter of 2009 compared to a loss of $64.1 million or $7.04 per diluted share in 2008.  Fourth quarter 2009 results also included an after-tax loss from discontinued operations of $0.6 million or $0.06 per diluted share associated with an intraperiod tax allocation between continuing and discontinued operations as discussed below.  Fourth quarter 2008 results included an after-tax loss from discontinued operations associated with the divestitures of certain assets and business of the aluminum extrusion operation and American Hardwoods, Inc. ("American Hardwoods") of approximately $5.0 million or $0.55 per diluted share.    

"The RV industry showed signs of recovery in the fourth quarter of 2009 as wholesale unit shipments increased approximately 76% over the fourth quarter of 2008.  This quarter-over-quarter increase in unit shipment levels represents the first quarter-over-quarter increase since 2006.  The MH industry, on the other hand, continues to be negatively impacted by a lack of financing and depressed economic conditions in the residential housing market as evidenced by its fifteenth consecutive quarter-over-quarter decline in unit shipments.  Our sales performance in the RV industry in the fourth quarter coupled with a reduced overall cost structure put the Company in a position to increase operating income over the prior year even before recognition of the gain on the building sale ," said Todd Cleveland, President and Chief Executive Officer.

For the full year 2009, Patrick reported a net loss of $4.5 million or $0.49 per diluted share, compared to a net loss of $71.5 million or $8.93 per diluted share for 2008.  The net loss for 2008 included an after-tax charge of approximately $18.0 million or $2.24 per diluted share related to the tax valuation allowance mentioned above.  

The twelve months 2009 pretax loss from continuing operations of $5.9 million included the impact of a net gain on the sale of fixed assets of approximately $1.2 million, which was partially offset by a non-cash charge of approximately $0.8 million related to accounting for stock warrants as described above.  The twelve months 2008 pretax loss from continuing operations of $76.6 million included non-cash impairment charges related to goodwill, other intangible assets, and certain other long-lived assets of approximately $60.2 million; the write-down and disposal of slow-moving inventory of approximately $4.5 million; restructuring and other acquisition and financing related costs of approximately $1.7 million; and the positive impact of a net gain on the sale of fixed assets, including the sale of one of the Company's California facilities, of approximately $4.6 million.    

The loss from continuing operations, net of tax, was $5.4 million or $0.59 per diluted share in 2009 and $66.7 million or $8.32 per diluted share in 2008.  Twelve months results also included, on an after-tax basis, income from discontinued operations of approximately $0.9 million or $0.10 per diluted share in 2009, and a loss from discontinued operations in 2008 of approximately $4.9 million or $0.61 per diluted share associated with the divestitures of the aluminum extrusion operation and American Hardwoods.

Consolidated Results

General

In the fourth quarter of 2008, the Company made the decision to divest certain non-core operations, which included American Hardwoods and the aluminum extrusion operation.  These operations were classified as held for sale and prior period results were reclassified to discontinued operations to conform to this presentation.  The following discussions of fourth quarter and twelve months operating results compared to the prior year are based on continuing operations.

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