PGT Reports 2013 Second Quarter Results

PGT Reports 2013 Second Quarter Results

VENICE, Fla., July 31, 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 its second quarter and six months
ended June 29, 2013.

"Sales in the second quarter of 2013, totaling $62.8 million, represented the
highest quarterly sales since the first quarter of 2007. Sales grew 35.2% over
prior year, primarily driven by improved market conditions in the Southeast
and Southwest Florida markets, as well as sales and marketing programs which
focused on our WinGuard products," said PGT's President and Chief Executive
Officer, Rod Hershberger.

Mr. Hershberger continued, "During the quarter, impact sales grew 38% over
prior year and represented 76% of total sales, compared to 74% a year ago. In
addition, sales of non-impact products grew 28%. Our second quarter sales
included growth in both the new construction and repair and remodel markets
over prior year. In May of 2013, we successfully completed a secondary
offering of 12.65 million shares of common stock owned by JLL Partners. We did
not receive any proceeds from the sale of shares of common stock. In addition,
we repurchased 6.8 million shares from JLL funded by refinancing our long term
debt, bringing our total debt balance to $80 million. Net income was $9.9
million and adjusted net income was $7.7 million compared to net income of
$3.7 million a year ago. The improvement in financial performance is the
result of the continued dedication of our employees, who worked hard to keep
pace with the growing demand for our products and consistently deliver on our
value proposition."

Our financial highlights for the second quarter ended June 29, 2013, compared
to the same period last year, include:

  *Net sales of $62.8 million, an increase of $16.4 million, or 35.2%;
    
  *Gross margin of 33.5%, a decrease of 2.0%;
    
  *Selling, general and administrative costs, adjusted for fees related to
    the offering and refinancing were 20.3% of sales, a decrease of 5.3%;
    
  *Net income of $9.9 million compared to $3.7 million;
    
  *Net income per diluted share of $0.19 compared to $0.07;
    
  *EBITDA of $9.0 million compared to $7.8 million; and
    
  *Net Income, Net Income per diluted share, and EBITDA, after adjusting for
    our discrete tax item and the costs associated with the offering and
    refinancing executed in May of 2013, were $7.7 million, $0.14 per share,
    and $10.9 million, respectively.

Our financial highlights for the six months ended June 29, 2013, compared to
the same period last year, include:

  *Net sales of $112.4 million, an increase of $27.8 million, or 32.9%;
    
  *Gross margin of 34.3%, an increase of 0.7%;
    
  *Selling, general and administrative costs, adjusted for fees related to
    the offering, refinancing and gain on the sale of the Salisbury facility
    was 23.0% of sales, a decrease of 5.0%;
    
  *Net income of $15.2 million compared to $3.0 million;
    
  *Net income per diluted share of $0.28 compared to $0.06;
    
  *EBITDA of $18.4 million compared to $11.1 million; and
    
  *Net Income, Net Income per diluted share, and EBITDA, after adjusting for
    our discrete tax item, the costs associated with the offering and
    refinancing executed in May of 2013 and for the gain on the sale of the
    Salisbury facility, and related tax impact, were $10.9 million, $0.20 per
    share, and $18.0 million, respectively.

Commenting on the second quarter and six months ended June 29, 2013, Jeff
Jackson, PGT's Executive Vice President and Chief Financial Officer, stated,
"Gross margin dollars increased 27.6%, or $4.5 million, to $21.0 million
compared to the second quarter of 2012, driven by strong revenue growth and
operating leverage. As a percent, however, gross margin decreased by 2.0% due
to an increase in labor costs and scrap, resulting from the hiring and
training of 274 new employees to meet the demand for our products. Margin was
also impacted by the purchase of finished glass units to support our strong
sales growth. We have now achieved three consecutive quarters of 26% plus
growth in sales." 

Mr. Jackson continued, "During the second quarter, we reversed the valuation
allowance recorded against our deferred tax assets.The reversal results in
recognizing a discrete tax benefit of $3.9 million.The reversal was based
upon consideration of a number of factors, including recent earnings history
and forecasts of future earnings which enabled us to conclude it is more
likely than not that the deferred tax assets will be realized."

Mr. Jackson concluded, "We were able to leverage revenue growth during the
second quarter, by reducing selling, general and administrative expenses as a
percent of sales to 22.7%, compared to 25.6% in the second quarter of
2012.This strong leverage of our growth allowed us to report our best second
quarter EBITDA since 2007, and report our highest quarterly earnings per
diluted share since 2006."

                               Conference Call

As previously announced, PGT will hold a conference call Thursday, August 1,
2013, at 10:30 a.m. eastern time and will simultaneously broadcast it live
over the Internet. To participate in the teleconference, kindly 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
August 1, 2013, at 1:30 p.m. eastern time through August 7, 2013. To access
the replay, dial 855-859-2056 (U.S. and Canada) and 404-537-3406
(international) and refer to pass code 87620950.

The webcast will also be available through the Investor Relations section of
the PGT, Inc. website, http://www.pgtindustries.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 1,150 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).

                          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 substantial 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 INCOME
(unaudited - in thousands, except per share amounts)
                                                                 
                                     Three Months Ended  Six Months Ended
                                     June 29,  June 30,  June 29,   June 30,
                                     2013      2012      2013       2012
                                                                 
Net sales                             $62,847 $46,486 $ 112,410 $84,586
Cost of sales                         41,817   30,005   73,821    56,170
Gross margin                          21,030   16,481   38,589    28,416
Selling, general and administrative   14,285   11,906   25,115    23,613
expenses
Income from operations                6,745    4,575    13,474    4,803
Interest expense                      697      939      1,509     1,797
Other expense (income)                461      (122)    677       (100)
Income before income taxes            5,587    3,758    11,288    3,106
Income tax (benefit) expense          (4,335)  68       (3,898)   68
Net income                            $9,922  $3,690  $15,186  $3,038
                                                                 
Basic net income per common share     $0.20   $0.07   $0.30    $0.06
                                                                 
Diluted net income per common share   $0.19   $0.07   $0.28    $0.06
                                                                 
Weighted average common shares                                    
outstanding:
Basic                                 49,947   53,670   51,232    53,667
                                                                 
Diluted                               53,142   54,574   55,018    54,069




PGT, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited - in thousands)
                                                    
                                                    
                                          June 30,   December 29,
                                          2013       2012
ASSETS                                               
Current assets:                                      
Cash and cash equivalents                  $15,575  $18,743
Accounts receivable, net                   22,030    13,997
Inventories                                14,081    11,529
Prepaid expenses                           694       916
Assets held for sale                       --        5,259
Deferred income taxes                      1,547     --
Other current assets                       2,920     2,886
Total current assets                       56,847    53,330
                                                    
Property, plant and equipment, net         40,967    41,220
Intangible assets, net                     42,076    45,327
Other assets, net                          2,285     1,440
Total assets                               $142,175 $141,317
                                                    
LIABILITIES AND SHAREHOLDERS' EQUITY                 
Current liabilities:                                 
Accounts payable and accrued expenses      $16,145  $13,325
Current Portion of long-term debt          2,926     --
Total current liabilities                  19,071    13,325
                                                    
Long-term debt                             75,104    37,500
Deferred income taxes                      12,267    14,858
Other liabilities                          1,028     1,424
Total liabilities                          107,470   67,107
                                                    
Total shareholders' equity                 34,705    74,210
Total liabilities and shareholders' equity $142,175 $141,317




PGT, INC. AND SUBSIDIARY
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO THEIR GAAP EQUIVALENTS
(unaudited - in thousands, except per share amounts)
                                                              
                          Three Months Ended        Six Months Ended
                          June 29,      June 30,    June 29,     June 30,
                          2013          2012        2013         2012
Reconciliation to Adjusted
Net Income and Adjusted                                        
Net Income per share (1):
                                                  
Net income/                $9,922      $3,690    $15,186    $3,038
Reconciling item:                                              
Gain on sale of Salisbury  --           --         (2,195)     --
Facility (2)
Expenses related to
offering of common stock   1,831        --         1,831       --
and debt refinancing (3)
Discrete tax items (4)     (3,898)      --         (3,898)     --
Tax effect of reconciling  (168)        --         --          --
items
Adjusted net income        $7,687      $3,690    $10,924    $3,038
                                                              
Weighted average shares                                        
outstanding:
Basic                      49,947       53,670     51,232      53,667
Diluted                    53,142       54,574     55,018      54,069
                                                              
Adjusted net income per    $0.15       $0.07     $0.21      $0.06
share - basic
Adjusted net income per    $0.14       $0.07     $0.20      $0.06
share - diluted
                                                              
Reconciliation to EBITDA                                       
and Adjusted EBITDA:
Net income                 $9,922      $3,690    $15,186    $3,038
Reconciling items:                                             
Depreciation and           2,742        3,091      5,603       6,227
amortization expense
Interest expense           697          939        1,509       1,797
Income tax expense         (4,335)      68         (3,898)     68
EBITDA                     9,026        7,788      18,400      11,130
Add:                                                           
Gain on sale of Salisbury  --           --         (2,195)     --
Facility (2)
Expenses related to
offering of common stock   1,831        --         1,831       --
(3)
Adjusted EBITDA            $10,857     $7,788    $18,036    $11,130
Adjusted EBITDA as         17.3%         16.8%       16.0%        13.2%
percentage of net sales
                                                              
                                                              
(1) The Company's non-GAAP financial measures were explained in its Form 8-K
filed July 31, 2013.
                                                              
(2)Gain on sale of Salisbury, NC facility of $2.2 million represents the net
selling price of approximately $7.5 million less the asset's carrying value at
the time of the sale of approximately $5.3 million.
                                                              
(3) The expenses relate to the offering of 12.65 million shares of common
stock of PGT by JLL Partners, and the unamortized costs that were written off
as a result of the debt refinancing. Approximately $1.5 million of these
charges are included in Selling, general, and administrative expenses, while
the remaining $330K are included in Other Expense (income) for the three
months ended June 29, 2013.
                                                              
(4) During the second quarter, we reversed the deferred tax asset ("DTA")
valuation allowance of approximately $3.9 million.

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

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