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."

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