Palm Harbor Homes, Inc. Reports First Quarter Results for Fiscal 2006
- BusinessWire

DALLAS, Jul 19, 2005 (BUSINESS WIRE) -- Palm Harbor Homes, Inc. (Nasdaq/NM:PHHM) today reported financial results for the first quarter ended June 24, 2005.
Net sales for the first quarter totaled $166.2 million compared with $157.8 million in the year-earlier period. Net income for the first quarter of 2006 totaled $2.6 million, or $0.12 per share, compared with net income of $1.1 million, or $0.05 per share, a year ago.

Larry Keener, chairman and chief executive officer of Palm Harbor Homes, Inc., remarked, "Palm Harbor is off to a very promising start for fiscal 2006. We are very pleased to show solid top-line growth and improved profitability as the key steps we have taken over the past year to streamline our operations and reduce our costs are producing positive results. While the recovery in the industry continues to be sporadic across the country, we are encouraged by the trends in our business indicating stronger consumer demand and higher average sales prices. The momentum gained from expanding our modular business has enabled us to reach more buyers at much higher average selling prices. In particular, our unique Discovery series of modular homes has been extremely popular with dealers and builders. By offering considerable advantages over competing housing alternatives, Discovery homes are attracting higher quality customers and opening additional distribution channels for our products. We believe we are well positioned to continue to build market share in fiscal 2006 with a diverse and innovative product line, backed by our operating expertise and steadfast commitment to the highest levels of customer satisfaction in the industry.

"Financing continues to be a critical issue in today's marketplace," added Keener. "As announced on July 12, 2005, we completed a $141 million asset-backed securities transaction for CountryPlace Mortgage, our 80-percent-owned, full-service chattel lending subsidiary. This transaction was an important milestone for Palm Harbor, marking the first new issue by a manufactured housing company in this decade. We believe the positive market response reflects the strength of our business model and confirms our leadership position as a fully integrated provider of factory-built housing and related financial services. By providing viable financing alternatives for our creditworthy customers, we believe we have further distinguished ourselves in the marketplace."

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Greg Harmon - President
Commonwealth Real Estate Services
E-mail: greg@cwres.com
Telephone 503.244.2300 Ext. 101