PGT Reports Sales Increase for 2012 Second QuarterAugust 3rd, 2012 by DWM Magazine
PGT Inc. reported that for the second quarter ended June 30, 2012 net sales were $46.5 million, an increase of $1.3 million, or 2.9 percent compared to the second quarter of 2011. Gross margin was 35.5 percent, an increase from the second quarter of 2011 gross margin of 19.9 percent, though the company noted that after adding back consolidation charges would have been 29.9. Net income was $3.7 million compared to a net loss of $5.0 million in the second quarter of 2011. The 2011 second quarter also included consolidation charges totaling $1.4 million and additional expenses relating to manufacturing inefficiencies caused by the consolidation totaling $3.4 million. Net income per diluted share was $0.07 compared to a net loss per diluted share of $0.09 in the second quarter of 2011; and EBITDA was $7.8 million, compared to ($0.5) million in the second quarter of 2011. According to the company the 2011 EBITDA would have been $4.6 million, after adding back consolidation charges and manufacturing inefficiencies.
“Our second quarter WinGuard sales included growth in both the new construction and repair and remodeling markets over prior year,” says Rod Hershberger, president and CEO of PGT. “These areas of growth reflect improving market conditions, mainly in the Southwest region of Florida, and targeted efforts to increase share throughout Florida. We did experience lower sales of $0.6 million in non-impact products and $0.9 million in our Architectural Systems products.”
According to the announcement, financial highlights for the six months ended June 30, 2012 included net sales of $84.6 million, a decrease of $1.2 million, or 1.4 percent, compared to the first six months of 2011; gross margin was 33.6 percent, an increase from the first six months of 2011 gross margin of 20.1 percent (which, after adding back consolidation charges would have been 27.8 percent); net income was $3.0 million compared to a net loss of $10.8 million for the first six months of 2011; net income per diluted share was $0.06 compared to a net loss per diluted share of $0.20 for the first six months of 2011; and EBITDA was $11.1 million, compared to ($1.6) million for the first six months of 2011.
“An increase in sales, coupled with better mix and continued focus on operational efficiencies from our consolidation, favorably impacted our gross margin percentage which was the highest since 2008,” adds Jeff Jackson, PGT’s executive vice president and chief financial officer. “Our quarter ending cash balance was $15.7 million, and we prepaid $2.0 million of outstanding bank debt during the quarter, bringing our net debt to $27.8 million.”