Patrick Industries, Inc. Provides Additional Business Update Regarding COVID-19

Patrick Industries, Inc. (“Patrick” or the “Company”), a major manufacturer and distributor of component and building products for the recreational vehicle, marine, manufactured housing, and industrial markets, today provided an update related to its business and operations during the coronavirus (“COVID-19”) pandemic.

“As we continue to navigate through the uncertainty related to the impact of COVID-19, and prioritize the safety and well-being of our team members, we have extended our recently announced one- to two-week suspension of certain operations for an additional one to three weeks,” said Andy Nemeth, President and Chief Executive Officer.  “The estimated length of the suspensions is determined on a plant-by-plant basis, depending upon customer operating schedules or government requirements.  In addition, we proactively enacted measures related to cost reductions in order to align our cost structure with ongoing expectations and fluctuations in industry demand.  Certain of our plants in various parts of the country have remained active and operational.”

The Company implemented cost containment and financial management measures prior to the initial suspension of certain operations including wage reductions for the entire Executive Management team and other salaried employees across the organization, furlough of certain team members at operations that have been shut down due to the stay at home orders, a reduction in quarterly fees paid to our Board of Directors, and a reduction in non-essential spending.

“We will continue to evaluate the environment surrounding the COVID-19 pandemic and have a playbook with detailed tiered plans to enact further disciplined measures as the situation dictates,” Mr. Nemeth further stated. “Our capital structure and financial position remains strong with ample liquidity and availability to manage this crisis for the foreseeable future, and we remain poised to quickly pivot and execute on our strategic plan and initiatives once stability returns to our markets.  We believe we are well-positioned to drive our business and execute off of our operational and financial platforms and high variable cost business model to continue to support the needs of our customers and be able to take advantage of opportunities in our markets as they present themselves.”

About Patrick Industries, Inc.

Patrick Industries, Inc. is a major manufacturer and distributor of component products and building products serving the recreational vehicle, marine, manufactured housing, residential housing, high-rise, hospitality, kitchen cabinet, office and household furniture, fixtures and commercial furnishings, and other industrial markets and operates coast-to-coast in various locations throughout the United States and in Canada, China and the Netherlands. Patrick’s major manufactured products include decorative vinyl and paper laminated panels, countertops, fabricated aluminum products, wrapped profile mouldings, slide-out trim and fascia, cabinet doors and components, hardwood furniture, fiberglass bath fixtures and tile systems, thermoformed shower surrounds, specialty bath and closet building products, fiberglass and plastic helm systems and component products, wiring and wire harnesses, boat covers, towers, tops and frames, electrical systems components including instrument and dash panels, softwoods lumber, interior passage doors, air handling products, RV painting, slotwall panels and components, aluminum fuel tanks, and CNC molds and composite parts and other products. The Company also distributes drywall and drywall finishing products, electronics and audio systems components, wiring, electrical and plumbing products, appliances, cement siding, raw and processed lumber, FRP products, interior passage doors, roofing products, tile, laminate and ceramic flooring, shower doors, furniture, fireplaces and surrounds, interior and exterior lighting products, and other miscellaneous products, in addition to providing transportation and logistics services.

Contact:

Julie Ann Kotowski – Investor Relations – kotowskj@patrickind.com – (574) 294-7511

Source: Patrick Industries, Inc.