FORM 10-Q
(Amendment No. 1)
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended June 30, 1998 Commission File Number 0-3922
PATRICK INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
INDIANA 35-1057796
(State or other jurisdiction of (I.R.S. Employer
incorporated or organization) Identification No.)
1800 South 14th Street, Elkhart, IN 46516
(Address of principal executive offices) (ZIP Code)
Registrant's telephone number, including area code (219) 294-7511
NONE
Former name, former address and former fiscal year, if changed since last
report.
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No
Shares of Common Stock Outstanding as of July 31, 1998: 5,933,266
PATRICK INDUSTRIES, INC.
This amendment corrects the Unaudited Condensed Statements of Cash Flows
for the six months ended June 30, 1998 and 1997.
PART I: FINANCIAL INFORMATION
<TABLE>
PATRICK INDUSTRIES, INC.
UNAUDITED CONDENSED BALANCE SHEETS
<CAPTION>
(Unaudited) (Note)
JUNE 30 DECEMBER 31
1998 1997
ASSETS
<S> <C> <C>
CURRENT ASSETS
Cash and cash equivalents $ 526,488 $ 3,765,171
Trade receivables 31,868,681 17,127,797
Inventories 38,933,334 34,602,154
Prepaid expenses 359,579 608,611
Total current assets $ 71,688,082 $ 56,103,733
PROPERTY AND EQUIPMENT, at cost $ 81,071,409 $ 78,052,343
Less accumulated depreciation 31,094,303 29,830,987
$ 49,977,106 $ 48,221,356
INTANGIBLE AND OTHER ASSETS $ 8,653,748 $ 7,862,419
Total assets $ 130,318,936 $ 112,187,508
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Current maturities of long-term debt $ 1,138,517 $ 1,138,517
Accounts payable, trade 23,257,374 10,329,507
Accrued liabilities 5,325,129 4,455,005
Total current liabilities $ 29,721,020 $ 15,923,029
LONG-TERM DEBT, less current maturities $ 24,785,067 $ 25,015,218
DEFERRED COMPENSATION OBLIGATIONS $ 1,602,002 $ 1,416,002
DEFERRED TAX LIABILITIES $ 1,107,000 $ 1,107,000
SHAREHOLDERS' EQUITY
Common stock $ 22,439,197 $ 21,896,822
Retained earnings 50,664,650 46,829,437
$ 73,103,847 $ 68,726,259
Total liabilities and shareholders' equity $ 130,318,936 $ 112,187,508
NOTE: The balance sheet at December 31, 1997 has been taken from the audited
financial statements at that date and condensed.
See accompanying notes to Unaudited Condensed Financial Statements.
</TABLE>
<TABLE>
PATRICK INDUSTRIES, INC.
UNAUDITED CONDENSED STATEMENTS OF INCOME
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
1998 1997 1998 1997
<S> <C> <C> <C> <C>
NET SALES $117,731,176 $106,599,506 $222,718,348 $203,535,216
COST AND EXPENSES
Cost of goods sold $102,268,713 $ 93,271,870 $194,002,496 $178,251,038
Warehouse and delivery expenses 4,059,689 3,913,889 7,776,937 7,309,451
Selling, general, and administrative expenses 6,976,003 5,415,413 13,239,516 10,268,640
Interest expense, net 264,905 307,901 518,875 595,810
$113,569,310 $102,909,073 $215,537,824 $196,424,939
INCOME BEFORE INCOME TAXES $ 4,161,866 $ 3,690,433 $ 7,180,524 $ 7,110,277
INCOME TAXES 1,664,700 1,448,500 2,872,200 2,782,200
NET INCOME $ 2,497,166 $ 2,241,933 $ 4,308,324 $ 4,328,077
EARNINGS PER COMMON SHARE $ .42 $ .38 $ .73 $ .73
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING 5,915,206 5,929,140 5,905,890 5,946,769
See accompanying notes to Unaudited Condensed Financial Statements.
</TABLE>
<TABLE>
PATRICK INDUSTRIES, INC.
UNAUDITED CONDENSED STATEMENTS OF
CASH FLOWS
<CAPTION>
SIX MONTHS ENDED
JUNE 30
1998 1997
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 4,308,324 $ 4,328,077
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 3,524,364 2,725,881
Other 204,183 53,403
Change in assets and liabilities:
Decrease (Increase) in:
Trade receivables (13,978,204) (12,228,928)
Inventories (3,712,782) 1,407,842
Prepaid expenses 271,408 (38,620)
Increase in:
Accounts payable and accrued liabilities 12,979,587 9,321,841
Income taxes payable 494,919 496,829
Net cash provided by operating activities 4,091,799 6,066,325
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (4,174,394) (5,750,567)
Investment in marketable securities - - - (500,000)
Acquisition of business (2,581,490) (286,840)
Other 57,270 297,385
Net cash (used in) investing activities 6,698,614 (6,240,022)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of common stock options 69,875 16,125
Principal payments on long-term debt (230,151) (217,050)
Reacquisition of common stock - - - (935,750)
Cash dividends paid (471,592) (473,129)
Net cash (used in) financing activities (631,868) (1,609,804)
(Decrease) in cash and cash equivalents (3,238,683) (1,783,501)
Cash and cash equivalents, beginning 3,765,171 2,041,482
Cash and cash equivalents, ending $ 526,488 $ 257,981
See accompanying notes to Unaudited Condensed Financial Statements.
</TABLE>
PATRICK INDUSTRIES, INC.
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
1. In the opinion of the Registrant, the accompanying unaudited condensed
financial statements contain all adjustments (consisting of only normal
recurring accruals) necessary to present fairly financial position as of June
30, 1998, and December 31, 1997, and the results of operations and cash flows
for the three months and the six months ended June 30, 1998 and 1997.
2. Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted. It is suggested that
these condensed financial statements be read in conjunction with the
financial statements and notes thereto included in Registrant's December 31,
1997 audited financial statements. The results of operations for the three
months and six months periods ended June 30, 1998 and 1997 are not
necessarily indicative of the results to be expected for the full year.
3. The inventories on June 30, 1998 and December 31, 1997 consist of the
following classes:
<TABLE>
<CAPTION>
June 30 December 31
1998 1997
<S> <C> <C>
Raw materials $23,207,598 $19,710,068
Work in process 835,425 1,170,054
Finished 4,121,492 5,089,861
Total manufactured goods $28,164,515 $25,969,983
Distribution products 10,768,819 8,632,171
TOTAL INVENTORIES $38,933,334 $34,602,154
</TABLE>
The inventories are stated at the lower of cost, First-In First-Out (FIFO)
method, or market.
4. Stock options outstanding are immaterial and had no effect on earnings per
share. Application of Financial Standards Accounting Board Statement No.
128 had no effect on previously reported earnings per share.
Earnings per common share for the six months ended June 30, 1998 and 1997
have been computed based on the weighted average common shares
outstanding of 5,905,890 and 5,946,769 respectively.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
PATRICK INDUSTRIES, INC.
(Registrant)
Date August 31, 1998 /S/ Keith V. Kankel
Keith V. Kankel
(Vice President Finance)
(Principal Accounting Officer)
