PGT Announces Third-Quarter Financial Results; Increase Over Previous QuarterNovember 8th, 2010 by DWM Magazine
PGT Inc. announced last week that it achieved net sales of $47.2 million for the third quarter, which ended October 2—an increase of $5.6 million, or 13.4 percent, over the prior year’s third quarter. The company’s gross margin was 30.9 percent, an improvement from the prior year third quarter gross margin adjusted for restructuring costs of 27.4 percent. Net loss was $207,000 compared to an adjusted net loss of $2.5 million in the prior year third quarter.
“For the second straight quarter we are very pleased to report year over year sales growth,” says Rod Hershberger, president and chief executive officer. “The increase of 13.4 percent was due mainly to the increase of sales in our core market, Florida, where sales were up 18.5 percent compared to the third quarter of 2009. We saw increases in Florida for both our aluminum and vinyl product categories, and in both impact and non-impact products. Housing starts in Florida increased 15 percent compared to the third quarter of 2009, driven by an increase in multi-family starts.”
Jeff Jackson, PGT’s executive vice president and chief financial officer, adds that the company’s strategic initiatives fueled third-quarter sales growth.
“As a result of the leverage gained from increased sales and the cost reduction initiatives taken in the back half of 2009, gross margin percentage improved to 30.9 percent, which is an increase of 3.5 percent over last year, after adjusting for 2009 restructuring costs. Third quarter’s EBITDA was $4.7 million, or 9.9 percent of sales, compared to prior year’s third quarter adjusted EBITDA of $3.2 million, or 7.6 percent of sales,” he says.