PGT Reports 2010 Fourth Quarter Results
February 24 2011 - 4:39PM
PGT, Inc. (Nasdaq:PGTI), the leading U.S. manufacturer and supplier
of residential impact-resistant windows and doors, announces
financial results for the fourth quarter ended January 1, 2011. In
the fourth quarter:
- Net sales were $39.0 million, an increase of $3.0 million, or
8.4%, over prior year fourth quarter;
- Net loss was $12.2 million compared to prior year net income of
$301 thousand in the fourth quarter of 2009;
- Non-cash impairment charges totaled $5.6 million compared to
the prior year fourth quarter amount of $0.7 million. The current
year impairment relates to the scheduled closing of our North
Carolina plant. Consolidation charges totaled $2.1 million in the
fourth quarter of 2010. Restructuring charges totaled $1.5 million
in the prior year fourth quarter.
- Adjusted net loss was $4.6 million compared to an adjusted net
income of $2.5 million in the prior year fourth quarter. Adjusted
net loss per diluted share of $0.09 compared to an adjusted net
income per diluted share of $0.07 per share in 2009; and
- Adjusted EBITDA was $228 thousand, compared to adjusted EBITDA
of $2.9 million in the prior year fourth quarter.
Rod Hershberger, President and Chief Executive Officer of PGT,
said, "Sales increased 8.4% in the fourth quarter of 2010 compared
to the same quarter a year ago due mainly to increased sales in our
core market, Florida, where sales were up 14.4%. The main drivers
for this increase came from increases in our vinyl product
categories, in both impact and non-impact products. Housing starts
in Florida decreased 2.2% compared to the fourth quarter of 2009,
driven by a decrease in single family starts. However, multi-family
starts were up slightly from a year ago."
Mr. Hershberger continued, "We are currently on schedule to
complete our plant consolidation by the end of the second quarter
of 2011. In addition, we continue to move forward with new product
offerings and line expansions, including our recently launched
vinyl sliding glass door which was well received at the
International Builders' Show."
Jeff Jackson, PGT's Executive Vice President and Chief Financial
Officer, stated, "WinGuard sales increased $1.7 million due in part
to an increase in vinyl WinGuard sales in Florida, where many
customers took advantage of available tax credits. Vinyl non-impact
sales also continued to expand, up $2.4 million, including $1.1
million in sales of the new replacement window designed for the
Florida market. This shift in mix toward lower margin non-impact
products offset contribution margin earned on additional sales.
Additionally, during the fourth quarter of 2010, we recorded an
additional $1.0 million in bonus, $0.5 million in increased
salaries resulting from returning employees to their 2009 base,
$0.3 million in health care cost increases, and a $0.6 million
increase in non-cash stock compensation expense."
Mr. Jackson continued, "During the quarter, we generated $3.3
million in cash from operations. Our cash balance decreased $3.2
million during the quarter to $22.0 million, primarily due to the
repayment of $3.0 million in debt and the purchase of the
intellectual property assets of Hurricane Window and Door
Technologies of Fort Myers, Florida. Our net debt decreased
to $28.0 million and our corresponding leverage ratio is 1.7X."
Conference Call
As previously announced, PGT will hold a conference call Friday,
February 25, 2011, at 10:30 a.m. Eastern Time and will
simultaneously broadcast it live over the Internet. To participate
in the teleconference, please 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 February 25, 2011 at 1:30 p.m. Eastern Time
through March 18, 2011. To access the replay, dial 800-642-1687
(U.S. and Canada) and 706-645-9291 (international) and refer to
pass code 38570363. The webcast will also be available through the
Investor Relations section of the PGT, Inc. website,
http://www.pgtinc.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 1,200 at its
manufacturing, glass laminating and tempering plants in Florida and
North Carolina, although PGT is currently consolidating all North
Carolina operations into 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(TM); PGT Architectural
Systems; and Eze-Breeze(R). PGT Industries is a wholly owned
subsidiary of PGT, Inc. (Nasdaq:PGTI).
The PGT, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=4199.
Forward-Looking
Statements
Statements in this news release and the schedules hereto which
are not purely historical facts or which necessarily depend upon
future events, including statements about forecasted financial
performance or other statements about anticipations, beliefs,
expectations, hopes, intentions or strategies for the future, may
be forward-looking statements within the meaning of Section 21E of
the Securities Exchange Act of 1934, as amended. Readers are
cautioned not to place undue reliance on forward-looking
statements. All forward-looking statements are based upon
information available to PGT, Inc. on the date this release was
submitted. PGT, Inc. undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise. Any forward-looking
statements involve risks and uncertainties that could cause actual
events or results to differ materially from the events or results
described in the forward-looking statements, including risks or
uncertainties related to the Company's revenues and operating
results being highly dependent on, among other things, the
homebuilding industry, aluminum prices, and the economy. PGT, Inc.
may not succeed in addressing these and other risks. Further
information regarding factors that could affect our financial and
other results can be found in the risk factors section of PGT,
Inc.'s most recent annual report on Form 10-K filed with the
Securities and Exchange Commission. Consequently, all
forward-looking statements in this release are qualified by the
factors, risks and uncertainties contained therein.
|
PGT, INC. AND
SUBSIDIARY |
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS |
(in thousands, except
per share amounts) |
|
|
|
|
|
|
Three Months
Ended |
Year
Ended |
|
January 1, 2011 |
January 2, 2010 |
January 1, 2011 |
January 2, 2010 |
|
(unaudited) |
(unaudited) (unaudited) |
|
|
Net sales |
$ 39,041 |
$ 36,004 |
$ 175,741 |
$ 166,000 |
Cost of sales |
29,856 |
27,004 |
125,403 |
121,622 |
Gross margin |
9,185 |
9,000 |
50,338 |
44,378 |
Impairment Charges |
5,561 |
742 |
5,561 |
742 |
Selling, general and administrative
expenses |
14,680 |
11,707 |
54,091 |
51,902 |
Loss from operations |
(11,056) |
(3,449) |
(9,314) |
(8,266) |
Interest expense |
1,173 |
1,648 |
5,123 |
6,698 |
Other expense (income), net |
-- |
5 |
(19) |
37 |
Loss before income taxes |
(12,229) |
(5,102) |
(14,418) |
(15,001) |
Income tax (benefit) expense |
-- |
(5,403) |
77 |
(5,584) |
Net (loss) income |
$ (12,229) |
$ 301 |
$ (14,495) |
$ (9,417) |
|
|
|
|
|
Basic net (loss) income per common share |
$ (0.23) |
$ 0.01 |
$ (0.29) |
$ (0.26) |
|
|
|
|
|
Diluted net (loss) income per common
share |
$ (0.23) |
$ 0.01 |
$ (0.29) |
$ (0.26) |
|
|
|
|
|
Weighted average common shares
outstanding: |
|
|
|
Basic |
53,654 |
36,284 |
50,174 |
36,241 |
|
|
|
|
|
Diluted |
53,654 |
37,021 |
50,174 |
36,241 |
|
|
PGT, INC. AND
SUBSIDIARY |
CONDENSED CONSOLIDATED
BALANCE SHEETS |
(in
thousands) |
|
|
|
|
|
|
|
January 1, 2011 |
January 2, 2010 |
ASSETS |
(unaudited) |
|
Current assets: |
|
|
Cash and cash equivalents |
$ 22,012 |
$ 7,417 |
Accounts receivable, net |
13,687 |
14,213 |
Inventories |
10,535 |
9,874 |
Deferred income taxes |
-- |
622 |
Other current assets |
5,127 |
7,860 |
Total current assets |
51,361 |
39,986 |
|
|
|
Property, plant and equipment, net |
52,863 |
65,104 |
Other intangible assets, net |
64,291 |
67,522 |
Other assets, net |
604 |
1,018 |
Total assets |
$ 169,119 |
$ 173,630 |
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
Current liabilities: |
|
|
Accounts payable and accrued expenses |
$ 16,696 |
$ 16,607 |
Deferred income taxes |
185 |
-- |
Current portion of long-term debt and capital
lease obligations |
245 |
105 |
Total current liabilities |
17,126 |
16,712 |
Long-term debt and capital lease
obligations |
49,918 |
68,163 |
Deferred income taxes |
17,130 |
17,937 |
Other liabilities |
1,903 |
2,609 |
Total liabilities |
86,077 |
105,421 |
|
|
|
Total shareholders' equity |
83,042 |
68,209 |
Total liabilities and shareholders'
equity |
$ 169,119 |
$ 173,630 |
|
|
PGT, INC. AND
SUBSIDIARY |
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES TO THEIR GAAP EQUIVALENTS |
(unaudited - in
thousands, except per share amounts) |
|
|
|
|
|
|
Three Months
Ended |
Year
Ended |
|
January 1, 2011 |
January 2, 2010 |
January 1, 2011 |
January 2, 2010 |
Reconciliation to Adjusted net (loss)
income and Adjusted net (loss) income per share (1): |
|
|
|
|
Net (loss) income |
$ (12,229) |
$ 301 |
$ (14,495) |
$ (9,417) |
Reconciling item: |
|
|
|
|
Asset impairment charges (2) |
5,561 |
742 |
5,561 |
742 |
Consolidation/Restructuring charge
(3) |
2,053 |
1,490 |
2,053 |
5,395 |
Adjusted net (loss) income |
$ (4,615) |
$ 2,533 |
$ (6,881) |
$ (3,280) |
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding: |
|
|
|
|
Diluted (4) |
53,654 |
37,021 |
50,174 |
36,241 |
|
|
|
|
|
Adjusted net (loss) income per share -
diluted |
$ (0.09) |
$ 0.07 |
$ (0.14) |
$ (0.09) |
|
|
|
|
|
Reconciliation to EBITDA and Adjusted
EBITDA: |
|
|
|
|
Net (loss) income |
$ (12,229) |
$ 301 |
$ (14,495) |
$ (9,417) |
Reconciling items: |
|
|
|
|
Depreciation and amortization
expense |
3,670 |
4,074 |
15,208 |
16,166 |
Interest expense |
1,173 |
1,648 |
5,123 |
6,698 |
Income tax expense (benefit) |
-- |
(5,403) |
77 |
(5,584) |
EBITDA |
(7,386) |
620 |
5,913 |
7,863 |
Asset impairment charges (2) |
5,561 |
742 |
5,561 |
742 |
Consolidation/Restructuring charge (3) |
2,053 |
1,490 |
2,053 |
5,395 |
Adjusted EBITDA |
$ 228 |
$ 2,852 |
$ 13,527 |
$ 14,000 |
Adjusted EBITDA as percentage of net
sales |
0.6% |
7.9% |
7.7% |
8.4% |
|
|
|
|
|
(1) The Company's non-GAAP
financial measures were explained in its Form 8-K filed on February
24, 2011. |
|
|
|
|
|
(2) Represents the write-down of
the value of certain fixed assets of the Company. |
|
(3) Represents charges related to
consolidation actions taken in 2010 and restructuring actions taken
in 2009. These charges relate primarily to employee separation
costs. Of the consolidation charges taken in 2010, $0.9
million was recorded in costs of goods sold and $1.2 million was
recorded in selling, general and administrative expenses. Of
the restructuring charges taken in the fourth quarter of 2009, $1.1
million was recorded in cost of goods sold, and $0.4 million was
recorded in selling, general and administrative expenses. Of the
restructuring charges taken in fiscal year 2009, $3.1 million
was recorded in cost of goods sold, and $2.3 million was recorded
in selling, general and administrative expenses. |
|
|
|
|
|
(4) Due to the net losses in
fiscal years 2010 and 2009 and in the fourth quarter of 2010, the
effect of equity compensation plans for these periods is
anti-dilutive. |
CONTACT: PGT, Inc.
Jeffrey T. Jackson
Executive Vice President and CFO
941-480-2714
jjackson@pgtindustries.com
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