Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,516.27 98.74 0.68%
TOPIX 1,173.37 6.78 0.58%
HANG SENG 22,760.24 64.23 0.28%

PGT Reports 2013 Third Quarter Results



PGT Reports 2013 Third Quarter Results

VENICE, Fla., Oct. 30, 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 third quarter and nine months
ended September 28, 2013.

"We delivered our highest quarterly sales since the first quarter of 2007
coming in at $64.9 million, up 45.0% over the third quarter of 2012. A
combination of improving market conditions and marketing programs focused on
both consumers and dealers targeting our WinGuard products continues to drive
both sales growth and share gains," said PGT's President and Chief Executive
Officer, Rod Hershberger.

Mr. Hershberger continued, "During the quarter, impact sales grew 47% over
prior year and represented 78% of total sales, compared to 77% a year ago. In
addition, sales of non-impact products grew 38%. Sales increased in both our
repair and remodel and new construction markets, up 40% and 58%, respectively.
Net income was $6.3 million, and adjusted net income was $6.4 million compared
to net income of $2.7 million a year ago. I am thankful for the hard work of
our employees, both new and tenured, who delivered on our value proposition
and drove the positive financial results in our third quarter. I also know we
have the talent and drive to improve our operational performance as we drive
top line sales."

Our financial highlights for the third quarter ended September 28, 2013,
compared to the same period last year, include:

  * Net sales of $64.9 million, an increase of $20.1 million, or 45.0%;
  * Gross margin increased $5.7 million to $20.9 million;
  * Selling, general and administrative costs were 20.8% of sales, a decrease
    of 5.1%;
  * Net income of $6.3 million compared to $2.7 million;
  * Net income per diluted share of $0.13 compared to $0.05;
  * EBITDA of $10.1 million compared to $6.7 million; and
  * Net Income, Net Income per diluted share, and EBITDA, after adjusting for
    the final costs associated with the secondary offering, were $6.4 million,
    $0.13 per share, and $10.2 million, respectively.

Our financial highlights for the nine months ended September 28, 2013,
compared to the same period last year, include:

  * Net sales of $177.3 million, an increase of $47.9 million, or 37.1%;
  * Gross margin increased $15.9 million to $59.5 million;
  * Selling, general and administrative costs, adjusted for fees related to
    the secondary offering, related debt refinancing and gain on the sale of
    the Salisbury facility were 22.1% of sales, a decrease of 5.1%;
  * Net income of $21.5 million compared to $5.8 million;
  * Net income per diluted share of $0.40 compared to $0.11;
  * EBITDA of $28.5 million compared to $17.8 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 $17.3 million, $0.33 per
    share, and $28.3 million, respectively.

Commenting on the third quarter and nine months ended September 28, 2013, Jeff
Jackson, PGT's Executive Vice President and Chief Financial Officer, stated,
"The 45.0% sales growth during the quarter generated a 37.3% increase in gross
margin dollars. As a percent, however, gross margin decreased by 1.8% due to a
temporary increase in labor and material costs in connection with the training
of our new employees, including the 301 hired during the quarter. Margin was
also impacted by the purchase of finished glass units to support sales in
excess of our current glass capacities. These two factors negatively impacted
margin during the quarter by 4.8%, which more than offset the 3.0% improvement
in other factors including strong leverage of fixed costs."

Mr. Jackson continued, "We continue to focus our efforts on both training and
retaining newly hired employees to improve our production efficiency. We are
also expanding our current glass fabrication capabilities by constructing a
new facility. During August, we purchased land neighboring our existing campus
for $1.7 million and expect operations to commence in our new glass facility
in the third quarter of 2014. This action alone should improve our margins by
approximately 2%."

Mr. Jackson concluded, "Cash flow generated from operations was $8.9 million
during the quarter. Lastly, selling, general and administrative expenses as a
percent of sales decreased to 20.8%, compared to 25.9% in the third quarter of
2012 due to strong leverage in this category."

                               Conference Call

As previously announced, PGT will hold a conference call Thursday, October 31,
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
October 31, 2013, at 1:30 p.m. eastern time through November 6, 2013. To
access the replay, dial 855-859-2056 (U.S. and Canada) and 404-537-3406
(international) and refer to pass code 35447082.

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 1,400 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 at
http://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          Nine Months Ended
                       September 28, September 29, September 28, September 29,
                       2013          2012          2013          2012
                                                                  
Net sales               $ 64,858      $ 44,743      $ 177,268     $ 129,329
Cost of sales           43,938        29,501        117,759       85,670
 Gross margin           20,920        15,242        59,509        43,659
Selling, general and
administrative          13,507        11,592        38,622        35,206
expenses
 Income from            7,413         3,650         20,887        8,453
operations
Interest expense        1,055         878           2,564         2,675
Other expense           64            (10)          741           (110)
(income), net
 Income before income   6,294         2,782         17,582        5,888
taxes
Income tax (benefit)    5             60            (3,893)       128
expense
 Net income             $ 6,289       $ 2,722       $ 21,475      $ 5,760
                                                                  
Basic net income per    $ 0.14        $ 0.05        $ 0.43        $ 0.11
common share
                                                                  
Diluted net income per  $ 0.13        $ 0.05        $ 0.40        $ 0.11
common share 
                                                                  
 Weighted average
common shares                                                     
outstanding:
Basic                   46,238        53,686        49,567        53,674
                                                                  
Diluted                 49,257        56,054        53,097        54,475
                                                                  

 
PGT, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited - in thousands)
                                                          
                                           September 28, December 29,
                                           2013          2012
ASSETS                                                    
Current assets:                                           
Cash and cash equivalents                   $ 23,745      $ 18,743
Accounts receivable, net                    21,671        13,997
Inventories                                 15,266        11,529
Prepaid expenses                            1,122         916
Assets held for sale                        --            5,259
Deferred income taxes                       1,547         --
Other current assets                        3,072         2,886
Total current assets                        66,423        53,330
                                                          
Property, plant and equipment, net          42,786        41,220
Intangible assets, net                      40,450        45,327
Other assets, net                           2,428         1,440
 Total assets                               $ 152,087     $ 141,317
                                                          
LIABILITIES AND SHAREHOLDERS' EQUITY                      
Current liabilities:                                      
Accounts payable and accrued expenses       $ 17,084      $ 13,325
Current portion of long-term debt           3,907         --
Total current liabilities                   20,991        13,325
                                                          
Long-term debt                              74,236        37,500
Deferred income taxes                       12,076        14,858
Other liabilities                           1,638         1,424
 Total liabilities                          108,941       67,107
                                                          
Total shareholders' equity                  43,146        74,210
Total liabilities and shareholders' equity  $ 152,087     $ 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          Nine Months Ended
                               September 28, September 29, September September
                                                           28,       29,
                               2013          2012          2013      2012
Reconciliation to Adjusted Net
Income and Adjusted Net Income                                        
per share (1):
                                                                      
Net income                      $ 6,289       $ 2,722       $ 21,475  $ 5,760
Reconciling item:                                                     
Gain on sale of Salisbury       --            --            (2,195)   --
Facility (2)
Expenses related to offering
of common stock and debt        87            --            1,917     --
refinancing (3) 
Discrete tax items (4)          --            --            (3,898)   --
Tax effect of reconciling       --            --            --        --
items
Adjusted net income             $ 6,376       $ 2,722       $ 17,299  $ 5,760
                                                                      
Weighted average shares                                               
outstanding:
Basic                           46,238        53,686        49,567    53,674
Diluted                         49,257        56,054        53,097    54,475
                                                                      
Adjusted net income per share   $ 0.14        $ 0.05        $ 0.35    $ 0.11
- basic
Adjusted net income per share   $ 0.13        $ 0.05        $ 0.33    $ 0.11
- diluted
                                                                      
Reconciliation to EBITDA and                                          
Adjusted EBITDA:
Net income                      $ 6,289       $ 2,722       $ 21,475  $ 5,760
Reconciling items:                                                    
Depreciation and amortization   2,783         3,034         8,386     9,261
expense
Interest expense                1,055         878           2,564     2,675
Income tax expense              5             60            (3,893)   128
EBITDA                          10,132        6,694         28,532    17,824
Add:                                                                  
Gain on sale of Salisbury       --            --            (2,195)   --
Facility (2)
Expenses related to debt        87            --            1,917     --
refinancing (3) 
Adjusted EBITDA                 $ 10,219      $ 6,694       $ 28,254  $ 17,824
Adjusted EBITDA as percentage  15.8%         15.0%         15.9%     13.8%
of net sales

(1) The Company's non-GAAP financial measures were explained in its Form 8-K
filed October 30, 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 final costs associated with the secondary offering $87K are included
in Selling, general and administrative expenses for the three months ended
September 28, 2013.The expenses related 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 $1.6
million of these charges are included in Selling, general and administrative
expenses, while the remaining $0.3 million are included in Other Expense
(income) for the nine months ended September 28, 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

company logo
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement