PGT Net Sales Decrease in First QuarterMay 3rd, 2012 by DWM Magazine
First quarter 2012 net sales for PGT Inc. were $38.1 million, a decrease of $2.5 million, or 6.3 compared to the first quarter of 2011. In its financial statement, the company’s gross margin was 31.3 percent, an increase from the first quarter of 2011 adjusted gross margin of 25.6 percent. The company reported a net loss was $0.7 million compared to a net loss of $5.8 million in the first quarter of 2011, which includes $2.6 million in consolidation charges, according to the statement. Also, PGT had a net loss per diluted share was $0.01 compared to an adjusted net loss per diluted share of $0.06 in the first quarter of 2011. EBITDA was $3.3 million compared to adjusted EBITDA of $1.5 million in the first quarter of 2011.
“After completing the consolidation in 2011, this was our most successful first quarter EBITDA as a percent of sales since the first quarter of 2008,” says Rod Hershberger, PGT’s president and CEO. “This is the direct result of the incredible efforts of all of our employees and our dealers. Our sales were down $2.5 million due in part to our decision to withdraw from certain out-of-state markets and challenging market conditions in Southeast Florida; however, gross margin increased by $1.5 million.”
Hershberger continues, “Though housing starts increased 29 percent over the first quarter of 2011, the majority of this increase represents homes at a price point where impact products are not generally installed. However, increased housing starts, even if they are not houses which have traditionally utilized our products, is a very good sign. We are confident that, as the employment market and general economic conditions stabilize, housing starts of homes at various price points will increase and drive demand for our products. In the interim, we will continue to focus on taking market share within the R&R market, improve operationally to drive bottom line success as we have recently and focus our efforts on driving top line sales at various price points to leverage our cost structure.”
Jeff Jackson, PGT’s executive vice president and CFO, adds, “With the 2011 consolidation behind us, our first quarter results reflect the anticipated savings. We recognized savings of $1.6 million, which is on track to reach our initial estimate of $6.0 – $7.0 million annually. Also, our EBITDA increased $1.8 million despite lower sales. Along with the savings from consolidation, this improvement was driven by operational improvements and improved product mix.”
Jackson continues, “During the quarter, we generated $4.0 million of cash from operations. Our cash balance increased $3.1 million during the quarter to $14.0 million, and our net debt as of the end of the first quarter was $31.5 million. Our working capital expressed as a percentage of sales was 9.4 percent, driven by our improvement in our accounts receivable days outstanding of seven days.”