PGT Reports Substantial Improvement in Third QuarterNovember 1st, 2012 | Category: Industry News
PGT Inc., based in Venice, Fla., announced financial results for its third quarter and bright spots included a “substantial improvement” in net income and 4 percent growth in sales of the company’s WinGuard line.
“In the third quarter of 2012, we posted net income of $2.7 million, which was a substantial improvement compared to a year ago. This was achieved, despite lower sales of 2.2 percent, as a result of improved product mix, continued improvement in operational efficiencies, and the hard work and dedication of our employees to consistently perform above expectations,” says PGT’s president and CEO Rod Hershberger. “Some of our markets, while still below normal, are showing signs of growth, and we are well positioned to capitalize and gain share.”
He adds that targeted promotional activity helped drive and gain share in certain markets.
“We did experience lower sales of $1.1 million in PremierVue products, primarily driven by a reduction in low margin sales to a particular customer, and a $0.6 million decline in our architectural systems products due to the completion of a large condo retrofit project in 2011,” he adds.
Financial highlights include:
Net sales of $44.7 million, a decrease of $1.0 million, or 2.2 percent, compared to the third quarter of 2011;
Gross margin of 34.1 percent, an increase from the third quarter of 2011 gross margin of 28.2 percent (which, after adding back consolidation charges would have been 29.8 percent in 2011);
Net income of $2.7 million compared to a net income of $0.2 million in the third quarter of 2011. The 2011 third quarter included consolidation charges totaling $0.1 million and additional expenses relating to manufacturing inefficiencies caused by the consolidation totaling $0.6 million;
EBITDA of $6.7 million, compared to $5.1 million in the third quarter of 2011. The 2011 EBITDA would have been $5.9 million, after adding back consolidation charges and related manufacturing inefficiencies.