PGT Reports 2010 Second Quarter Results
VENICE, Fla., Aug. 4, 2010 (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 second quarter ended July 3, 2010. In our second quarter:
- Net sales were $49.0 million, an increase of $2.1 million, or 4.6%, over prior year second quarter;
- Gross margin was 31.1%, a slight decrease from the prior year second quarter gross margin of 31.2%;
- Net income was $1 thousand compared to net income of $342 thousand in the prior year second quarter;
- EBITDA was $5.3 million, compared to $6.0 million in the prior year second quarter.
"For the first time since 2006 we are reporting year over year sales growth. This increase of 4.6% was due mainly to our expansion outside of Florida. During this downturn, we have demonstrated our ability to establish a stronger foothold in new markets, including states outside Florida where sales increased 28.3%," said Rod Hershberger, PGT's President and Chief Executive Officer. "Sales in Florida were essentially flat over the same period, due to continued economic pressures including high unemployment and high home inventories, though the latter is decreasing. There are some positive trends including continued low mortgage rates and certain areas showing signs of price stabilization. Housing starts in Florida increased 41% compared to the second quarter of 2009, driven mainly by a 47% increase in single family starts. This was due in part to the tax incentives which expired on April 30, 2010."
Commenting further on the second quarter of 2010, Jeff Jackson, PGT's Executive Vice President and Chief Financial Officer, stated, "The majority of the increase came in sales of our non-impact products, which have lower margins. This was offset somewhat by a decrease in sales of our aluminum WinGuard impact products of $2.5 million. As a result, gross margin as a percent of sales decreased slightly versus a year ago, despite savings generated from cost reduction initiatives taken in the back half of 2009. We also recorded an additional $0.7 million in non-cash stock compensation expense during the quarter, and an additional expense of $0.4 million related to a partial return of salary reduction each salaried employee took beginning in the second quarter of 2009. Second quarter's EBITDA was $5.3 million, or 10.7% of sales, compared to prior year's second quarter EBITDA of $6.0 million, or 12.8% of sales."
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