Patrick Industries Inc. today (Aug. 12) reported financial results for the second quarter and six months ended June 28.
For the second quarter of 2009, Patrick reported a net loss of $700,000, compared to net income of $1.9 million for the 2008 period. Second quarter 2009 includes the positive impact on income from discontinued operations of approximately $800,000, which was partially offset by non-cash charges of approximately $500,000, related to mark-to-market accounting for common stock warrants issued to certain of the company’s lenders in December 2008.
The 2008 results include the net after-tax impact of net gains on the sale of fixed assets of approximately $2.6 million, income from discontinued operations of approximately $100,000 and restructuring and other acquisition and financing related costs of approximately $400,000.
“The second quarter reflected both operating and financial progress against difficult economic and industry conditions,” said Todd Cleveland, president and CEO. “While uncertainty surrounding the future course of the global economy continues to fuel the decline in RV and MH sales compared to prior periods, production levels in the RV industry experienced some seasonal increases during the quarter. Improvements in sales to the MH industry, however, have not yet been seen, especially given the current state of the residential housing market.”
For the first six months of 2009, Patrick reported a net loss of $4.8 million, compared to a net loss of $12,000 for 2008. Results for the first six months of 2009 include the positive impact of income from discontinued operations of approximately $1.3 million, which was partially offset by non-cash charges of approximately $400,000, related to accounting for stock warrants as described above.
A net gain on the sale of certain assets and business of American Hardwoods Inc. of $500,000 is included in the discontinued operations results. The 2008 results include the after-tax impact of net gains on the sale of fixed assets of approximately $2.8 million, income from discontinued operations of approximately m$200,000, and restructuring and other acquisition and financing related costs and inventory write-downs of approximately $1.2 million.
Net sales were $55.9 million in second quarter compared to $95.6 million in the 2008 period. Net sales were negatively impacted during the quarter primarily reflecting the continuation of overall lower end market demand due to the economic recession. In addition, RV and MH retailers and manufacturers were forced to further reduce inventory levels in response to restricted credit conditions.
Net sales for the first six months of 2009 were $100.8 million compared to $192.6 million in 2008. Net sales were negatively impacted by reductions in end market demand and RV and MH retailer and manufacturer inventory levels as discussed above. According to industry associations, RV wholesale unit shipments were down approximately 55% for six months 2009, while MH wholesale unit shipments were down approximately 45% for the same period.