PGT Reports 2011 First Quarter Results
May 05 2011 - 4:18PM
PGT, Inc. (Nasdaq:PGTI), the leading U.S. manufacturer and supplier
of residential impact-resistant windows and doors, announces
financial results for the first quarter ended April 2, 2011. In our
first quarter:
- Net sales were $40.6 million, an increase of $0.1 million, or
0.3%, over prior year first quarter.
- Adjusted gross margin of 25.8% decreased from the first quarter
of 2010 gross margin of 27.9%.
- Net loss was $5.8 million compared to a net loss of $2.1
million in the first quarter of 2010. Consolidation charges
totaled $2.6 million in the first quarter of 2011.
- Adjusted net loss per diluted share was $0.06 compared to a net
loss per diluted share of $0.05 in the first quarter of 2010.
- Adjusted EBITDA was $1.5 million compared to EBITDA of $3.4
million in the first quarter of 2010.
Rod Hershberger, President and Chief Executive Officer of PGT
said, "Sales in our first quarter were flat year over year,
reflecting our shift in market focus with Florida sales up 7.9% and
out-of-state sales down 32.3%. January and February brought
another low in housing starts and permits, however, that trend
changed in March. Our monthly sales in January and February
were also lower than prior year, but our March sales increased over
prior year. Overall housing starts decreased 8% compared to
the first quarter of 2010, driven by a decrease in single family
starts."
Mr. Hershberger continued, "During the first quarter we
completed approximately 60% of our plant consolidation, including
filling over 250 new positions in Florida. We recorded
approximately $2.6 million in plant consolidation expenses and are
currently on schedule to complete our plant consolidation by the
end of the second quarter."
Jeff Jackson, PGT's Executive Vice President and Chief Financial
Officer, stated, "Our vinyl products continue to gain traction,
evidenced by a $1.0 million increase in vinyl WinGuard sales and a
$0.5 million increase in PremierVue sales. Our decrease in
adjusted EBITDA is due mainly to an increase in material prices,
and operating inefficiencies related to our plant
consolidation. Additionally, during the first quarter of 2011,
we had approximately $0.6 million in additional selling and
marketing expenses and a $0.5 million increase in non-cash stock
compensation expense."
Mr. Jackson continued, "During the quarter, we used $5.5 million
of cash in operations. Our cash balance decreased $6.5 million
during the quarter to $15.5 million, primarily due to $3.1 million
of cash used for plant consolidation expenses and the payment of
$2.8 million in employee bonuses earned in 2010. Our net debt was
$34.5 million and our corresponding leverage ratio is 2.2X at the
end of the first quarter of 2011."
Conference Call
As previously announced, PGT will hold a conference call Friday,
May 6, 2011, at 1:00 p.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
May 6, 2011, at 4:00 p.m. Eastern Time through May 26, 2011. To
access the replay, dial 800-642-1687 (U.S. and Canada) and
706-645-9291 (international) and refer to pass code 61008233.
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 |
(unaudited - in
thousands, except per share amounts) |
|
|
|
|
Three Months
Ended |
|
April 2, |
April 3, |
|
2011 |
2010 |
|
|
|
Net sales |
$ 40,644 |
$ 40,515 |
Cost of sales |
32,319 |
29,193 |
Gross margin |
8,325 |
11,322 |
Selling, general and administrative
expenses |
13,034 |
11,928 |
Loss from operations |
(4,709) |
(606) |
Interest expense |
1,122 |
1,474 |
Other income |
(42) |
(20) |
Loss before income taxes |
(5,789) |
(2,060) |
Income tax benefit |
- |
- |
Net loss |
$ (5,789) |
$ (2,060) |
|
|
|
Basic net loss per common share |
$ (0.11) |
$ (0.05) |
|
|
|
Diluted net loss per common share |
$ (0.11) |
$ (0.05) |
|
|
|
Weighted average common shares
outstanding: |
|
|
Basic |
53,654 |
39,738 |
|
|
|
Diluted |
53,654 |
39,738 |
|
|
PGT, INC. AND
SUBSIDIARY |
CONDENSED CONSOLIDATED
BALANCE SHEETS |
(in
thousands) |
|
|
|
|
|
|
|
April 2, |
January 1, |
|
2011 |
2011 |
ASSETS |
(unaudited) |
|
Current assets: |
|
|
Cash and cash equivalents |
$ 15,492 |
$ 22,012 |
Accounts receivable, net |
15,184 |
13,687 |
Inventories |
11,403 |
10,535 |
Prepaid expenses |
1,082 |
881 |
Other current assets |
4,468 |
4,246 |
Total current assets |
47,629 |
51,361 |
|
|
|
Property, plant and equipment, net |
51,683 |
52,863 |
Other intangible assets, net |
62,665 |
64,291 |
Other assets, net |
267 |
604 |
Total assets |
$ 162,244 |
$ 169,119 |
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
Current liabilities: |
|
|
Accounts payable and accrued expenses |
$ 14,498 |
$ 16,696 |
Deferred income taxes |
185 |
185 |
Current portion of long-term debt and capital
lease obligations |
50,115 |
245 |
Total current liabilities |
64,798 |
17,126 |
Long-term debt and capital lease
obligations |
20 |
49,918 |
Deferred income taxes |
17,130 |
17,130 |
Other liabilities |
2,291 |
1,903 |
Total liabilities |
84,239 |
86,077 |
|
|
|
Total shareholders' equity |
78,005 |
83,042 |
Total liabilities and shareholders'
equity |
$ 162,244 |
$ 169,119 |
|
PGT, INC. AND
SUBSIDIARY |
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES TO THEIR GAAP EQUIVALENTS |
(unaudited - in
thousands, except per share amounts) |
|
|
|
|
Three Months
Ended |
|
April 2, |
April 3, |
|
2011 |
2010 |
Reconciliation to Adjusted Net Loss
and Adjusted Net Loss per share (1): |
|
|
|
|
Net loss |
$ (5,789) |
$ (2,060) |
Reconciling item: |
|
|
Consolidation (2) |
2,632 |
- |
Adjusted net loss |
$ (3,157) |
$ (2,060) |
|
|
|
Weighted average shares outstanding: |
|
|
Diluted (3) |
53,654 |
39,738 |
|
|
|
Adjusted net loss per share - diluted |
$ (0.06) |
$ (0.05) |
|
|
|
Reconciliation to EBITDA and Adjusted
EBITDA: |
|
|
Net loss |
$ (5,789) |
$ (2,060) |
Reconciling items: |
|
|
Depreciation and amortization
expense |
3,549 |
3,965 |
Interest expense |
1,122 |
1,474 |
EBITDA |
(1,118) |
3,379 |
Add: |
|
|
Consolidation (2) |
2,632 |
- |
Adjusted EBITDA |
$ 1,514 |
$ 3,379 |
Adjusted EBITDA as percentage of net
sales |
3.7% |
8.3% |
|
|
|
(1) The Company's non-GAAP
financial measures were explained in its Form 8-K filed May 5,
2011. |
|
|
|
(2) Represents charges related to
consolidation actions taken in the first quarter 2011. These
charges relate primarily to employee separation costs and move
related expenses. Of the consolidation charges taken in the
first quarter of 2011, $2.1 million was recorded in costs of goods
sold and $0.5 million was recorded in selling, general and
administrative expenses. |
|
|
|
(3) Due to the net losses in the
first quarters of 2011 and 2010 , the effect of equity compensation
plans is anti-dilutive. |
CONTACT: PGT, Inc.
Jeffrey T. Jackson
Executive Vice President and CFO
941-480-2714
jjackson@pgtindustries.com
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