Associated Materials LLC Reports Third Quarter Results; Posts Slight Increase in Net SalesNovember 22nd, 2010 by DWM Magazine
Associated Materials announced results for its third quarter ended October 2, 2010. Net sales for the third quarter ended October 2, 2010 were $329.5 million, a 1.5 percent increase from net sales of $324.8 million for the same period in 2009.
Subsequent to the end of the third quarter, investment funds affiliated with Hellman & Friedman LLC completed their purchase of the company on October 13, 2010. In connection with the consummation of the purchase, the company and its then indirect parent entities, AMH Holdings LLC and AMH Holdings II Inc., satisfied and discharged their obligations under the indentures governing the 9.875 percent notes, the 11.25 percent notes and the 20 percent notes. In addition, the company repaid and terminated the ABL Facility and the outstanding principal amount of the borrowings and accrued interest thereon under the intercompany loan agreement with its then indirect parent was deemed repaid.
“We are pleased that, despite a 13.5 percent decrease in single-family housing starts during the third quarter, we have reported an increase in sales of 1.5 percent from a year ago and an increase of 11.7 percent for the nine months ended as compared to the prior year,” says Tom Chieffe, president and chief executive officer. “Although we have seen improvement within operations as a result of the cost reduction and efficiency improvement initiatives previously implemented, we continue to seek other manufacturing and procurement cost savings opportunities to generate additional growth within the Company’s EBITDA margins. We continue to believe the long-term fundamentals of the building products industry remain strong and the company is well-positioned to benefit as the housing market continues to recover.”