Ply Gem Reports Third Quarter 2016 Results

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 quarter ended October 1, 2016.

Third Quarter 2016 Results:
  • Net sales for the third quarter were $530.4 million.
  • Operating earnings improved $6.0 million to $68.0 million compared to the third quarter of 2015.
  • Basic and diluted earnings per share was $0.80 for the third quarter of 2016 compared to $0.61 for the third quarter of 2015.
  • Adjusted earnings per share was $0.75 for the third quarter of 2016 compared to $0.60 for the third quarter of 2015.
  • Tax valuation allowance released for $50.1 million and tax receivable adjustment of $42.2 million during the third quarter of 2016.
  • Leverage ratio reflects continued improvement to 4.2x.

Nine Month 2016 Results:
  • Total net sales for the nine months ended October 1, 2016 increased 2.9% to $1.5 billion.
  • Operating earnings improved $46.2 million or 49.3% from the comparable 2015 period.
  • Net income increased to $68.8 million for the nine month 2016 period from $23.2 million for the 2015 period.
  • Adjusted EBITDA increased to $184.1 million or 30.2%.
  • Basic and diluted earnings per share was $1.01 for the 2016 nine month period compared to $0.34 for the 2015 nine month period.
  • Adjusted basic earnings per share was $1.17 for the 2016 nine month period compared to $0.52 for the 2015 nine month period.

"I am pleased by the solid operating and free cash flow performance of the Company during the third quarter. Both segments continued to make substantial contributions to adjusted EBITDA and allowed us to deliver the tenth consecutive quarterly year-over-year growth of adjusted EBITDA," said Gary E. Robinette, Ply Gem's Chairman and CEO. "Our third quarter overall sales were somewhat dampened due to a soft-patch of demand for external building products in July and August partially related to the pull forward effect of demand in the first half of 2016 as well as wet weather in the South-Central United States, however, the fundamental demand drivers of our end markets remain robust as the U.S. housing market continues to recover. During the third quarter, our teams delivered strong profitable growth through improved product pricing and operating performance initiatives while maintaining our cost discipline. As a result, Ply Gem achieved record quarterly net income of $54.8 million and adjusted EBITDA of $82.5 million."

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