Ply Gem Holdings, Inc. (“Ply Gem” or the “Company”) (NYSE: PGEM), a leading manufacturer of exterior building products in North America, today announced financial results for the second quarter and six months ended June 29, 2013.
Highlights of Ply Gem's 2013 second quarter financial results included:
- On May 23, 2013, Ply Gem issued 18,157,895 shares of common stock and received proceeds of $353.4 million, net of underwriting discounts and offering expenses.
- Net sales for the second quarter were $368.1 million, higher than 2012 second quarter net sales of $307.3 million by $60.9 million, or 19.8%.
- The Company's second quarter acquisitions (Gienow-April 9, 2013 and Mitten-May 31, 2013) provided net sales of $37.5 million from the acquisition dates through June 29, 2013.
- Excluding $23.5 million of one-time initial public offering costs incurred during the second quarter, our 2013 second quarter operating earnings decreased $6.7 million to $24.2 million compared to operating earnings of $30.9 million for 2012, reflecting more adverse weather conditions experienced in 2013 relative to 2012, labor inefficiencies, and operating ramp-up costs related to significant unit volume increases in our U.S. Window business.
- Our second quarter 2013 Adjusted EBITDA was $41.1 million compared to Adjusted EBITDA of $45.1 million for the second quarter of 2012.
“Ply Gem's sales continue to benefit from the recovery in new construction markets; however, demand for big ticket repair and remodeling items has been sluggish and further compressed by unfavorable weather conditions during the first quarter that drove higher inventory levels within distribution channels, which resulted in lower demand for our products during April and May,” said Gary E. Robinette, Ply Gem's President and CEO.
Mr. Robinette went on to say “The expected recovery in the U.S. housing market represents significant growth opportunity for Ply Gem, however it also brings near-term challenges primarily in the form of labor resource requirements to meet increasing market demand. Recognizing this challenge, earlier this year we launched our enterprise lean initiative that when completed will provide greater manufacturing flexibility.”