PGT Reports Net Sales Decrease for 2011 Fourth Quarter

February 27th, 2012 by DWM Magazine

PGT Inc. announced that its net sales for the fourth quarter ended December 31, 2011 decreased $3.3 million (8.5 percent) compared to the prior year, to be $35.7 million. The company’s gross margin percentage in the fourth quarter of 2011 was 25.1 percent, compared to 25.7 percent for the fourth quarter 2010, when adjusted for 2010 consolidation charges.

In addition, the company reported a net loss in the fourth quarter of 2011 of $6.3 million, compared to a net loss of $12.2 million for the fourth quarter of 2010. Adjusted net loss was $3.6 million in the fourth quarter compared to an adjusted net loss of $4.6 million in the fourth quarter 2010. Adjusted net loss per diluted share was $0.07 compared to an adjusted net loss per diluted share of $0.09 in 2010. Non-cash impairment charges totaled $6.0 million, compared to the prior year fourth quarter amount of $5.6 million. According to the company, its current year impairment relates to its trade names, while prior year impairment related to the closing of its North Carolina plant. Consolidation charges totaled $2.1 million in the fourth quarter of 2010.

“During 2011, we completed our consolidation in the midst of a market mired in high unemployment, depressed housing prices, and economic uncertainty. Housing starts did improve 22 percent over the fourth quarter of 2010, but remain well below historical averages. Although the housing starts increase is a positive sign, the other factors mentioned suggest growth will be slow in the near future,” says Rod Hershberger, president and CEO of PGT. “Sales decreased $3.3 million, or 8.5 percent, in the fourth quarter of 2011 compared to the same quarter a year ago, due mainly to decreased sales in our out of state markets, where sales were down $2.2 million, or 37.9 percent. This decrease is due mainly to our decision to reduce our efforts out of state. Also contributing to our sales decrease are the Architectural System products which decreased $900 thousand, or 60.0 percent.”

Jeff Jackson, PGT’s executive vice president and chief financial officer, further adds, “Our results for the quarter include savings of approximately $1.5 million from the consolidation, which more than offset an additional $400 thousand in advertising investment and the negative impact of lost contribution from lower sales. Adjusted EBITDA improved $400,000 to $631,000 or 1.8 percent of sales, compared to 0.6 percent a year ago. We also generated $2.9 million of cash from operations, and finished the quarter with net debt of $34.6 million.”

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