Patrick Industries has provided an update related to its business and operations during the 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 CEO. “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 Patrick’s 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,” said Nemeth. “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.”