PGT Innovations Inc. (PGTI) recently announced its third quarter results, boasting strong numbers following its first out-of-state acquisition. In July 2018, the company announced it would acquire Phoenix-based Western Window Systems in a move that’s plotted to not only diversify the company’s geographic footprint and customer base, but also create a higher margin profile, according to company officials. The $360 M deal was expected to bring with it a backlog of demand from the first half of 2018, and so far it looks like that move is panning out among third quarter findings. PGTI increased its net sales by 57 percent, jumping from $72 million to $199 million.

“The third quarter was the start of an exciting new chapter for PGT Innovations,” says Jeff Jackson, the company’s president and CEO. “We completed our first major out-of-state acquisition, Western Windows Systems, positioning PGTI as a national leader in the premium window and door space. Also, to finance the acquisition, we successfully entered the bond market for the first time, achieving access to capital at an attractive fixed rate.”

Following the acquisition, Jackson says PGTI executed an equity offering, which allowed the company to more quickly de-lever its balance sheet. That move, he says, provides additional flexibility going forward, for other operational and strategic initiatives.

“We believe our execution of these transactions in the third quarter has put PGT Innovations in a strong position, and well-poised for continued growth,” Jackson says.

Year-over-year third quarter highlights include:

  • Net sales of $199 million, at an increase of $72 million, or 57 percent;
  • Gross margin of 36.7 percent, compared to 31.3 percent, previously;
  • Net income increase to $13.6 million, from $6.3 million;
  • Adjusted net income of $20.1 million, compared to $8.1 million;
  • Net income per diluted share of $0.26, compared to $0.12, previously; and
  • Adjusted net income per diluted share of $0.38, compared to $0.16.

Based on recent results, the company has increased its 2018 financial guidance, including the sales of Western Window Systems following the August 13, 2018, acquisition. Improvements going forward are expected to follow a similar trajectory, according to company filings.

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