Palm Harbor Homes Reports Fourth Quarter and Fiscal 2006 Year-End Earnings

DALLAS, Texas (May 23, 2006) - Palm Harbor Homes, Inc. (Nasdaq/NM:PHHM) today reported financial results for the fourth quarter and fiscal year ended March 31, 2006.

Net sales for the fourth quarter totaled $180.3 million compared with $147.7 million in the year-earlier period. Operating income improved to $7.6 million for the fourth quarter compared with $3.0 million in the same period last year. Net income for the fourth quarter of 2006 totaled $3.2 million, or $0.14 per share, compared with net income of $2.0 million, or $0.09 per share, a year ago. Fourth quarter of fiscal 2005 includes $1.8 million, or $0.08 per share, net of tax, for income earned on a real estate investment.

Net sales for fiscal 2006 were $710.6 million compared with $610.5 million a year ago. For fiscal 2006, operating income was $24.5 million compared with an operating loss of $353,000 in fiscal 2005. Net income for fiscal 2006 totaled $11.1 million, or $0.49 per share, compared with a net loss of $3.8 million, or $0.17 per share, for fiscal 2005. The financial results for fiscal 2005 include $2.8 million, or $0.12 per share, net of tax, for charges related to closing sales centers, streamlining retail operations and idling a production line.

Larry Keener, chairman and chief executive officer of Palm Harbor Homes, Inc., said, "The fourth quarter of fiscal 2006 capped off a year of significant growth and progress for Palm Harbor. Our improved top line performance and sustained profitability reflect increased market share, a shift in product mix to modular homes and higher average sales prices. Palm Harbor has continued to outpace the industry in fiscal 2006 and we are pleased with our solid execution.  read more