PGT Reports 2012 Fourth Quarter Results

PGT Reports 2012 Fourth Quarter Results

VENICE, Fla., Feb. 20, 2013 (GLOBE NEWSWIRE) -- PGT, Inc. (Nasdaq:PGTI), the
leading U.S. manufacturer and supplier of residential impact-resistant windows
and doors, announces financial results for the fourth quarter and year ended
December 29, 2012.

"During the fourth quarter, we focused our efforts on driving sales by running
promotions and capitalizing on our value proposition. These activities,
combined with the improving housing market, drove a sales increase of $9.5
million, or 26.6%. WinGuard sales grew 38.2% over the prior year, and
represented 71% of total sales compared to 65% a year ago. The targeted
promotional activity helped drive our mix improvement and gain share in
certain markets. We also showed growth in our non-impact and Eze-Breeze
lines," said PGT's President and Chief Executive Officer, Rod Hershberger.

Mr. Hershberger continued, "Thanks to a great fourth quarter, our 2012 sales
of $174.5 million grew 4.3% compared to 2011. Also, we posted net income of
$9.0 million, an increase of $25.9 million when compared to 2011. This
improvement in net income resulted from increasing sales in more profitable
categories, improving manufacturing efficiencies, reducing scrap, and
increasing efficiency within our transportation team."

Our financial highlights for the fourth quarter ended December 29, 2012
compared to the results for the same period last year include:

  *Net sales of $45.2 million, an increase of $9.5 million, or 26.6%;
    
  *Gross margin of 35.4%, an increase of 10.3% of sales;
    
  *Net income of $3.2 million compared to a net loss of $6.3 million;
    
  *Net income per diluted share of $0.06 compared to an adjusted net loss per
    diluted share of $0.07; and
    
  *EBITDA of $6.9 million, compared to $0.6 million in the fourth quarter of
    2011, after adjusting 2011 for non-cash impairment charges and gain on
    equipment sales related to the consolidation.

Commenting on the fourth quarter, Jeff Jackson, PGT's Executive Vice President
of Operations and Chief Financial Officer, stated, "In addition to our focus
on sales, we also focused on gross margin which increased to 35.4% from 25.1%
in 2011. This improvement is a result of the leverage on increased sales and
improved product mix as well as reduced scrap. During the quarter, we
repurchased 922,694 shares of our stock for approximately $3.9 million and
prepaid an additional $3.0 million of outstanding bank debt, bringing our
gross debt to $37.5 million. We finished the year with a cash balance of $18.7
million."

Our financial highlights for the twelve months ended December 29, 2012
compared to the results for the prior year include:

  *Net sales of $174.5 million, an increase of $7.3 million, or 4.3%;
    
  *Gross margin of 34.2%, an increase of 6.4% of sales, after adding back
    2011 consolidation charges;
    
  *Net income of $9.0 million compared to a net loss of $16.9 million for the
    prior year;
    
  *Net income per diluted share of $0.16 compared to an adjusted net loss per
    diluted share of $0.10; and
    
  *EBITDA of $24.7 million, compared to $12.7 million for 2011, after
    adjusting 2011 for consolidation charges, related manufacturing
    inefficiencies, non-cash impairment charges, gain on equipment sales, and
    the write-off of deferred financing costs.

Mr. Jackson continued, "During the quarter and year ended December 29, 2012,
we generated $6.8 million and $23.2 million in cash from operations,
respectively. Additionally, in January 2013, we sold our Salisbury, NC,
facility for approximately $8.0 million ($7.5 million net of selling costs)
which provides us additional momentum for 2013. The net proceeds were used to
voluntarily pay debt on January 31, 2013, bringing our gross debt to $30.0
million at that time. We believe that we are poised in 2013 to continue sales
growth and improve overall efficiencies. We continue to maintain our name
recognition through our value proposition and are determined to enhance value
for our stockholders, employees and other stakeholders."

                               Conference Call

As previously announced, PGT will hold a conference call Thursday, February
21, 2013, at 10:30 a.m. Eastern time and will simultaneously broadcast it live
over the Internet. To participate in the teleconference, please dial into the
call a few minutes before the start time: 877-769-6798 (U.S. and Canada) and
678-894-3060 (international). A replay of the call will be available beginning
February 21, 2013 at 1:30 p.m. Eastern Time through February 28, 2013. To
access the replay, dial 855-859-2056 (U.S. and Canada) and 404-537-3406
(international) and refer to pass code 92340223. The webcast will also be
available through the Investor Relations section of the PGT, Inc. website,
http://www.pgtinc.com.

                                  About PGT

PGT(R) pioneered the U.S. impact-resistant window and door industry and today
is the nation's leading manufacturer and supplier of residential
impact-resistant windows and doors. Founded in 1980, the company employs
approximately 1,000 at its manufacturing, glass laminating and tempering
plants in Florida. Utilizing the latest designs and technology, PGT products
are ideal for new construction and replacement projects serving the
residential, commercial, high-rise and institutional markets. PGT's product
line includes a variety of aluminum and vinyl windows and doors. Product
brands include WinGuard (R); SpectraGuard (TM); PremierVue (R); PGT
Architectural Systems; and Eze-Breeze (R). PGT Industries is a wholly owned
subsidiary of PGT, Inc. (Nasdaq:PGTI).

The PGT, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=4199

                          Forward-Looking Statements

From time to time, we have made or will make forward-looking statements within
the meaning of Section 21E of the Exchange Act. These statements do not relate
strictly to historical or current facts.Forward-looking statements usually
can be identified by the use of words such as "goal", "objective", "plan",
"expect", "anticipate", "intend", "project", "believe", "estimate", "may",
"could", or other words of similar meaning. Forward-looking statements provide
our current expectations or forecasts of future events, results, circumstances
or aspirations. Our disclosures in this report contain forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995.We may also make forward-looking statements in our other documents
filed or furnished with the Securities and Exchange Commission and in oral
presentations. Forward-looking statements are based on assumptions and by
their nature are subject to risks and uncertainties, many of which are outside
of our control. Our actual results may differ materially from those set forth
in our forward-looking statements. There is no assurance that any list of
risks and uncertainties or risk factors is complete. Factors that could cause
actual results to differ materially from those described in our
forward-looking statements include, but are not limited to:

  *Changes in new home starts and home remodeling trends
  *The economy in the U.S. generally or in Florida where the substantial
    portion of our sales are generated
  *Raw material prices, especially aluminum
  *Transportation costs
  *Level of indebtedness
  *Dependence on our WinGuard branded product lines
  *Product liability and warranty claims
  *Federal and state regulations
  *Dependence on our manufacturing facilities
  *The controlling interest of JLL Partners Fund IV, L.P.

Any forward-looking statements made by us or on our behalf speak only as of
the date they are made and we do not undertake any obligation to update any
forward-looking statement to reflect the impact of subsequent events or
circumstances. Before making any investment decision, you should carefully
consider all risks and uncertainties disclosed in all our SEC filings,
including our reports on Forms 8-K, 10-Q and 10-K and our registration
statements under the Securities Act of 1933, as amended, all of which are
accessible on the SEC's website at www.sec.gov and
athttp://ir.pgtindustries.com/sec.cfm.

                      Use of Non-GAAP Financial Measures

This Press Release and the financial schedules include financial measures and
terms not calculated in accordance with generally accepted accounting
principles in the United States (GAAP).We believe that presentation of
non-GAAP measures such as adjusted net income (loss), adjusted net income
(loss) per share, EBITDA and adjusted EBITDA provides investors and analysts
with an alternative method for assessing our operating results in a manner
that enables investors and analysts to more thoroughly evaluate our current
performance compared to past performance.We also believe these non-GAAP
measures provide investors with a better baseline for assessing our future
earnings potential.The non-GAAP measures included in this release are
provided to give investors access to types of measures that we use in
analyzing our results.

Adjusted net income (loss) consists of GAAP net income (loss) adjusted for the
items included in the accompanying reconciliation.Adjusted net income (loss)
per share consists of GAAP net income (loss) per share adjusted for the items
included in the accompanying reconciliation.We believe these measures enable
investors and analysts to more thoroughly evaluate our current performance as
compared to the past performance and provide a better baseline for assessing
the company's future earnings potential.However, these measures do not
provide a complete picture of our operations.

EBITDA consists of GAAP net income (loss) adjusted for the items included on
the accompanying reconciliation.Adjusted EBITDA consists of EBITDA adjusted
for the items included in the accompanying reconciliation.We believe that
EBITDA and adjusted EBITDA provide useful information to investors and
analysts about the company's performance because they eliminate the effects of
period to period changes in taxes, costs associated with capital investments
and interest expense.EBITDA and adjusted EBITDA do not give effect to the
cash the company must use to service its debt or pay its income taxes and thus
do not reflect the funds generated from operations or actually available for
capital investments.

Our calculations of adjusted net income (loss), adjusted net income (loss) per
share, EBITDA and adjusted EBITDA are not necessarily comparable to
calculations performed by other companies and reported as similarly titled
measures.These non-GAAP measures should be considered in addition to results
prepared in accordance with GAAP, but should not be considered a substitute
for or superior to GAAP measures.Schedules that reconcile adjusted net income
(loss), adjusted net income (loss) per share, EBITDA and adjusted EBITDA to
GAAP net income (loss) are included in the financial schedules accompanying
this release.

PGT, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
                                                              
                          Three Months Ended        Year Ended
                          December 29, December 31, December 29, December 31,
                          2012         2011         2012         2011
                          (unaudited)              (unaudited)  
Net sales                  $45,211    $35,709    $174,540   $167,276
Cost of sales              29,203      26,753      114,872     128,171
Gross margin               16,008      8,956       59,668      39,105
Impairment charges         --          5,959       --          5,959
Selling, general and       11,888      11,627      47,094      48,619
administrative expenses
Income (loss) from         4,120       (8,630)     12,574      (15,473)
operations
Interest expense           762         881         3,437       4,168
Other expense (income),    182         (874)       72          (419)
net
Income (loss) before       3,176       (8,637)     9,065       (19,222)
income taxes
Income tax (benefit)       (18)        (2,324)     110         (2,324)
expense
Net income (loss)         $3,194     $(6,313)   $8,955     $(16,898)
                                                              
Basic net income           $0.06      $(0.12)    $0.17      $(0.31)
(loss)per common share
                                                              
Diluted net income         $0.06      $(0.12)    $0.16      $(0.31)
(loss)per common share
                                                              
Weighted average common                            
shares outstanding:
                                                               
Basic                     53,458      53,659      53,620      53,659
                                                              
Diluted                    56,764      53,659      55,262      53,659


PGT, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
                                                                
                                                                
                                                    December 29, December 31,
                                                    2012         2011
ASSETS                                               (unaudited)  
Current assets:                                                  
Cash and cash equivalents                            $18,743    $10,940
Accounts receivable, net                             13,997      13,830
Inventories                                          11,529      11,602
Asset held for sale                                  5,259       --
Other current assets                                 3,802       3,741
Total current assets                                 53,330      40,113
                                                                
Property, plant and equipment, net                   41,220      48,606
Other intangible assets, net                         45,327      51,830
Other assets, net                                    1,440       2,286
Total assets                                         $141,317   $142,835
                                                                
LIABILITIES AND SHAREHOLDERS' EQUITY                             
Current liabilities:                                             
Accounts payable and accrued expenses                $13,279    $12,706
Deferred income taxes                                46          --
Current portion of long-term debt and capital lease  --          50
obligations
Total current liabilities                            13,325      12,756
                                                                
Long-term debt and capital lease obligations         37,500      45,500
Deferred income taxes                                14,858      15,041
Other liabilities                                    1,424       2,176
Total liabilities                                    67,107      75,473
                                                                
Total shareholders' equity                           74,210      67,362
Total liabilities and shareholders' equity           $141,317   $142,835


PGT, INC. AND SUBSIDIARY
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO THEIR GAAP EQUIVALENTS
(unaudited - in thousands, except per share amounts)
                                                              
                       Three Months Ended           Year Ended
                       December 29,   December 31,  December 29, December 31,
                       2012           2011          2012         2011
Reconciliation to
Adjusted net income
(loss) and Adjusted net                                        
income (loss) per share
(1):
Net income (loss)       $3,194       $(6,313)    $8,955     $(16,898)
Reconciling item:                                              
Intangible impairment   --            5,959        --          5,959
charges (2)
Consolidation charges   --            --           --          4,106
(3)
Gain on equipment sales --            (875)        --          (875)
(4)
Manufacturing           --            --           --          4,005
inefficiencies (5)
Write off deferred      --            --           --          420
financing costs (6)
Tax effect of           --            (2,324)      --          (2,324)
reconciling items
Adjusted net income     $3,194       $(3,553)    $8,955     $(5,607)
(loss)
                                                              
Weighted average shares                                        
outstanding:
Diluted (7)             56,764        53,659       55,262      53,659
Adjusted net income
(loss) per share -      $0.06        $(0.07)     $0.16      $(0.10)
diluted
                                                              
Reconciliation to
EBITDA and Adjusted                                            
EBITDA:
Net income (loss)       $3,194       $(6,313)    $8,955     $(16,898)
Reconciling items:                                             
Depreciation and        2,973         3,303        12,233      14,092
amortization expense
Interest expense        762           881          3,437       4,168
Income tax (benefit)    (18)          (2,324)      110         (2,324)
expense
EBITDA                  6,911         (4,453)      24,735      (962)
Intangible impairment   --            5,959        --          5,959
charges (2)
Consolidation charge    --            --           --          4,106
(3)
Gain on Equipment Sales --            (875)        --          (875)
(4)
Manufacturing           --            --           --          4,005
inefficiencies (5)
Write off deferred      --            --           --          420
financing costs (6)
Adjusted EBITDA         $6,911       $631        $24,735    $12,653
Adjusted EBITDA as      15.3%          1.8%          14.2%        7.6%
percentage of net sales
                                                              
(1) The Company's non-GAAP financial measures were explained in its Form 8-K
filed February 23, 2012.
(2) The Company completed its annual impairment tests in the fourth quarter of
2011, which resulted in additional impairment charges totaling $6.0 million
related to trade names.
(3) Represents charges and credits related to consolidation actions taken in
2011. These charges relate primarily to employee separation costs and move
related expenses. Of the $4.1 million in consolidation charges in the year
ended December 31, 2011, $3.4 million is included in cost of goods sold and
$0.7 million is included in selling, general and administrative expenses.
(4) Represents gains related to the sale of equipment previously used in North
Carolina operations.These gains are included in other income for the fourth
quarter and year ended December 31, 2011.
(5) Represents temporary excess labor and scrap expense incurred as a result
of the consolidation actions taken in 2011.The amounts were determined by
comparing the manufacturing results with normalized pre-consolidation
results.These charges are included in cost of goods sold for the year ended
December 31, 2011.
(6) Represents the write offof the remaining unamortized fees associated with
our previous financing agreement.These charges are included in other expense
for the year ended December 31, 2011.
(7) Due to the net losses in the fourth quarter and fiscal year 2011, the
effect of equity compensation plans for these periods is anti-dilutive.

CONTACT: PGT, Inc.
         Jeff Jackson, Executive Vice President of Operations and CFO
         941-480-1600
         jjackson@pgtindustries.com

company logo