This excerpt taken from the PATK 8-K filed Aug 15, 2008.
Six Month Results
For the first six months of 2008, Patrick reported a net loss of approximately $12,000, or $0.00 per diluted share, compared to a net loss of $1.9 million, or $0.37 per diluted share in the same period of 2007. The 2008 results include the net impact of pre-tax gains on sale of property and equipment including the sale of the Companys idle California facility mentioned above of approximately $4.5 million, or $0.41 per diluted share, offset by pre-tax costs associated with restructuring and other integration activities and acquisition related amortization of approximately $2.8 million, or $0.26 per diluted share after tax. Results for the first half of 2007 include the impact of approximately $3.1 million in pre-tax expenses, or $0.36 per diluted share after tax, related to restructuring and other integration related activities, litigation and settlement costs, and pre-tax acquisition related amortization.
For the first six months of 2008, Patrick reported net sales of $220.8 million compared to net sales of $191.3 million in the same period of 2007. The year over year increase in net sales is attributable to the full year impact of the Adorn and American Hardwoods acquisitions, partially offset by further weakening in 2008 versus 2007 in all three of the major market sectors that the Company serves.
The MH and RV market sectors represent approximately 75 percent of Patricks sales in the six-month period ended June 29, 2008. Industrial and other sales, which include sales to the kitchen cabinet, office furniture, store fixtures and other industries, represented approximately 25 percent of the Companys sales in the same period.
For the six months ended June 29, 2008 and June 30, 2007, Patrick reported gross profit of approximately $24.2 million, or 11.0 percent of net sales, compared to $20.8 million, or 10.9 percent of net sales, respectively. Year to date gross profit includes the impact of approximately $0.7 million and $0.9 million of restructuring charges related to the acquisition of Adorn for the six-month periods ending June 29, 2008 and June 30, 2007, respectively.
Patrick reported operating income of $3.4 million in the 2008 year to date period compared to an operating loss of $1.1 million in the same period in 2007. In addition to the $0.7 million in restructuring charges mentioned above, 2008 operating income includes the impact of pre-tax charges of approximately $1.8 million, including $0.6 million in restructuring charges and stock compensation related to the Adorn acquisition, $0.3 million related to vesting of certain retirement obligations in conjunction with completion of the second quarter rights offering, and $0.9 million in intangible asset amortization. The year-to-date period ended June 29, 2008 also includes the impact of $4.5 million in pre-tax gains on sale of property and equipment, primarily related to the sale of the Companys idle California facility. In addition to the $0.9 million in restructuring charges mentioned above, the 2007 year to date operating loss includes the impact of pre-tax charges of approximately $2.0 million including $1.0 million in charges related to vesting of certain retirement obligations associated with the Adorn acquisition, $0.4 million in restructuring charges and stock compensation, $0.5 million in severance and litigation settlement costs, and $0.1 million in acquisition related amortization.
Patrick Industries, Inc. / Page 3 of 3
In June 2008, Patrick completed its previously announced rights offering. The Company sold a total of 1,850,000 shares of its common stock to Tontine Capital Partners, L.P. and Tontine Capital Overseas Master Fund, L.P., and other existing shareholders through the exercise of rights at a subscription price of $7.00 per share, for an aggregate purchase price of $12.9 million. The Company used a portion of the net proceeds to prepay approximately $7.1 million in principal plus $0.3 million in accrued interest that remained outstanding on the Companys Senior Subordinated Promissory Notes owed to Tontine. The Company used the remaining $5.5 million in rights offering proceeds plus approximately $5.6 million in net proceeds from the sale of the previously mentioned idle California facility to pay down its term loan under the Companys senior secured credit facility in the third quarter of 2008. In total from December 31, 2007 through June 30, 2008, the Company has paid down more than $34 million in senior subordinated debt and term debt under its senior secured credit facility.
When we first purchased Adorn LLC, we felt this was a transformational event for both companies, and the first important step in Patrick Industries, Inc. becoming the premier manufacturer and distributor of building and component products to the RV and MH industries, and we are pleased with our progress so far, said Paul Hassler, Chief Executive Officer. Since the acquisition in May 2007, we have closed and consolidated ten operations and two operating cells and reduced our headcount by 640, including 70 salaried positions. We continue to see significant synergies from the acquisition, and estimate our annualized cost savings in 2008 to be more than $3 million. During the first half of 2008, we estimate we have already realized approximately $1.5 million in combined annualized cost savings from the integration.
In May 2008, Patrick announced the appointment of Paul E. Hassler as Chairman of the Board of Directors. Hassler continues in his role as Chief Executive Officer. In addition, the Company announced the promotion of Todd M. Cleveland, previously Patricks Executive Vice President of Operations and Sales and Chief Operating Officer, to the position of President and Chief Operating Officer as well as his appointment to the Companys board of directors.
With our leaner combined operations, stronger management team and improving balance sheet, we have repositioned Patrick over the first six months of 2008 to compete in the currently difficult RV and MH markets. We are also in a better position to execute our long-term strategic plan based on market penetration, enhanced capacity utilization, improving operating efficiencies, product development and strategic and accretive acquisition opportunities, Hassler concluded.
This excerpt taken from the PATK 8-K filed Feb 13, 2008.
Fourth Quarter Results
Patrick, a leading manufacturer and distributor of building and component products for the Recreational Vehicle (RV), Manufactured Housing (MH) and Industrial markets, reported a net loss of $4.1 million , or $0.68 per diluted share, on net sales of $107.4 million in the fourth quarter of 2007, compared with net earnings of $0.2 million, or $0.04 per diluted share, on net sales of $72.8 million for the same quarter of 2006. The fourth quarter 2007 results included pre-tax expenses of $2.2 million, or $0.26 per diluted share after tax including restructuring and other costs related to the acquisition and integration of Adorn. Also included in the fourth quarter of 2007 was pre-tax acquisition-related amortization of $0.5 million, or $0.06 per diluted share after tax.
Patrick attributed the increase in quarterly sales primarily to the recently acquired Adorn and American Hardwoods operations, which was partially offset by softness in Patricks core markets. According to the industry associations, RV shipments in 2007 were down 3 percent for the quarter and approximately 10 percent for the year. MH shipments were down approximately 3 percent for the quarter and 19 percent for the year.
In the 2007 fourth quarter, Patrick reported gross profit of approximately $10.4 million, or 9.7 percent, compared with gross profit of $8.8 million, or 12.1 percent in the same quarter of 2006. The 2007 fourth quarter gross profit included the impact of restructuring charges of approximately $0.7 million, or 0.7 percent of net sales, related to the integration of the Adorn acquisition.
Patrick reported an operating loss of $3.6 million for the fourth quarter of 2007, compared to operating income of approximately $1.0 million in the prior years fourth quarter. The year-over-year decrease in operating income in the fourth quarter was due to softness in Patricks core markets, an unfavorable change in product mix from period to period, and restructuring and other charges incurred in connection with the Adorn acquisition. In addition to the restructuring charges described above, the 2007 fourth quarter operating loss included approximately $1.9 million of other acquisition-related or integration-related expenses in connection with the Adorn acquisition. These costs include acquisition related incentive bonuses paid to key members of management of $1.1 million, stock compensation of $0.4 million, and intangible asset amortization of approximately $0.4 million.
Patrick Industries, Inc. / Page 2 of 3
This excerpt taken from the PATK 8-K filed Nov 14, 2006.
Third Quarter 2006 Results
Net sales of $90.8 million, 12% increase compared to last years 3Q
EPS of $0.08 per share compared with $0.03 per share in 3Q 2005
Increased sales led to increased profitability, as management continues
Operating income increased 66% compared to 3Q 2005
3Q 2006 included approximately $500,000 of incremental acquisition
EPS of $0.50 for 9 months exceeded EPS of $0.30 for whole of 2005