PGT Sales Decrease Slightly in Third Quarter; Attributed to ConsolidationNovember 8th, 2011 by DWM Magazine
Net sales were $45.8 million for PGT Industries in the third quarter–a decrease of $1.4 million, or 3 percent, from the prior year’s third quarter; according to its financial results for the third quarter ended October 1, 2011.
Net income was $241,000 compared to a net loss of $207,000 in the third quarter of 2010. Adjusted net income was $982,000 after adjusting for $741, 000 of consolidation related charges; EBITDA was $5.1 million, compared to EBITDA of $4.7 million in the prior year third quarter.
“Compared to prior year, third quarter sales decreased 3 percent due mainly to our decision to reduce efforts out of state and continued issues within the economy, specifically, within the housing industry,” said Rod Hershberger, president and chief executive officer. “We expect these issues to continue affecting our top line into the fourth quarter, where demand typically softens in the repair and remodeling market.”
Hershberger added that the consolidation is complete, and the Florida location is now operating at the capacity both plants were achieving prior to the consolidation.
“Our results confirm that we are benefiting from the savings generated by the consolidation,” said Jeff Jackson, PGT’s executive vice president and chief financial officer. “Adjusted EBITDA improved $1.2 million despite lower sales, to $5.9 million or 12.8 percent of sales, compared to 9.9 percent a year ago. Also, our adjusted net income of $982,000 was the highest in any quarter since the second quarter of 2008. During the quarter, we generated $4.0 million of cash from operations and repaid $2.5 million of long term debt. At the end of the quarter, our net debt was $37.6 million.”