Patrick Industries Inc., a major manufacturer and distributor of building and component products for the recreational vehicle, manufactured housing and industrial markets, Wednesday (Nov. 11) reported financial results for the third quarter and nine months ended Sept. 27.
For the third quarter, Patrick reported a net loss of $600,000, a decrease of $1.7 million from the net loss of $2.3 million for the same 2008 period. Third-quarter 2009 includes non-cash charges of approximately $900,000 after-tax related to mark-to-market accounting for common stock warrants issued to the company’s senior lenders in December 2008, according to a news release.
These non-cash charges were partially offset by the positive impact of a net gain on the sale of certain assets and business of American Hardwoods Inc. and the sale of Patrick’s aluminum extrusion operation of approximately $200,000 after-tax in the third quarter. The 2008 results include restructuring and other acquisition and financing related costs of approximately $200,000 after-tax.
“During the third quarter, our overall sales levels were consistent with our current operating plan reflecting the better than expected performance in the RV industry which offset continued soft market conditions in the MH industry,” said Todd Cleveland, president and CEO. “This revenue performance coupled with a reduced overall cost structure put the company in a position to increase operating income by $4.1 million over the prior year.”
For the first nine months of 2009, Patrick reported a net loss of $5.4 million compared to a net loss of $2.3 million for 2008. This year’s results includes the positive impact of income from discontinued operations of approximately $1.5 million after-tax, which was partially offset by non-cash charges of approximately $1.3 million after-tax related to accounting for stock warrants as described above.
The 2008 results include the after-tax impact of a net gain on the sale of fixed assets of approximately $2.9 million, income from discontinued operations of approximately $200,000 and restructuring and other acquisition and financing related costs and inventory write-downs of approximately $1.5 million.
Net sales were $58.3 million in third quarter 2009 compared to $76.7 million in the same 2008 period. Net sales were negatively impacted during the quarter primarily as a result of the continuation of overall lower end market demand due to the residual effects of the economic recession.
Net sales for the first nine months were $159.1 million compared to $269.3 million in 2008.