PGT’s Net Income More Than Doubles From a Year AgoAugust 1st, 2013 | Category: Industry News
PGT Inc. enjoyed a banner second-quarter, reporting a profit more than double that from a year ago and sales that rose to their highest levels since the first quarter of 2007, thanks in small part to two new commercial window systems introduced this year.
The Venice, Fla.-based maker of hurricane-resistant doors and windows netted an overall profit of $9.9 million, according to financial figures released by the company on Wednesday. That’s well above the $3.7 million it earned during the same period last year. Overall sales increased to $62.8 million.
“Sales grew 35.2 percent over prior year, primarily driven by improved market conditions in the Southeast and Southwest Florida markets, as well as sales and marketing programs which focused on our WinGuard products,” says Rod Hershberger, PGT’s president and chief executive.
Hershberger said the company’s second-quarter sales included growth in both the new construction and repair and remodel markets over the prior year.
Known mostly for its work on the residential side, PGT also benefitted from the strong performance of its new architectural and storefront window systems the company introduced earlier this year, says vice president of sale and marketing Todd Antonelli.
Both product series are designed for high performance in commercial high-rise buildings, as much as residential ones, Antonelli says.
“We’ve been pushing these pretty hard and, in the first and second quarters, they really began gaining some traction,” Antonelli says.
PGT’s strong storefront windows have likewise proven a big hit, especially in South Florida where meeting stringent codes is a necessity when installing new doors or windows.
Hershberger attributed part of the company’s success to more favorable economic conditions, including better employment numbers, a rebounding housing market and overall improved consumer confidence. Company executives were quick to also credit Florida building and insurance codes for helping to drive up demand.
PGT has now recorded three consecutive quarters of sales growth of 26 percent or better, with sales improving 42 percent in July alone, says Jeff Jackson, the company’s executive vice president and chief financial officer.
The boon in company fortunes means that PGT will soon undergo a major growth as it begins adding its own glass cutting and tempering lines. The expansion, which could cost as much as $14 million over a little more than a year, will include the purchase of a new building that will allow PGT to centrally store all of its equipment and supplies, Hershberger says.
“The results demonstrate that the strategies we put in place over the last few lean years are working,” Hershberger says.