Three prominent door and window companies released their financial results for third-quarter 2019—all revealing a flat return or decrease in net sales. Jeld-Wen, PGT Innovations (PGTI) and Masonite all saw low performances, but officials remain optimistic due to some factors.

Jeld-Wen’s third-quarter results were in line with its preliminary results announced on October 10, predicting a drop in net revenues on a year-over-year basis. Seeing a 3.9% decrease to $1.092 billion, the company says this dip is driven primarily by a 5% headwind from volume/mix. Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) for the third quarter decreased by $23.7 million year-over-year to $108.9 million. Cash flow from operations for the nine months improved $76.9 million year-over-year to $164.9 million. Company officials say they are confident in the plan they call the Jeld-Wen Excellence Model (JEM) to improve results for the remainder of the year.

“Despite the impact from volume headwinds, our associates have utilized JEM tools to deliver positive productivity in our core operations and have developed an extensive backlog of projects to drive future cost savings,” says Jeld-Wen president and CEO Gary S. Michel. “The initial phase of our facility modernization and rationalization plan remains on track and we are now actively reducing latent capacity. I am confident in our strategy and believe that our ongoing deployment of JEM will improve our operations, allow us to better serve our customers, and drive long-term value creation for our shareholders.”

For PGTI, net sales remained nearly flat, decreasing by 1% to $198 million compared to the same quarter in 2018, including a net increase of $17 million from Western Window Systems, which the company acquired in August 2018. Gross profit decreased 4% to $70 million and net income increased 11% to $15 million compared to third-quarter 2018.

“While I’m disappointed in our overall performance, I am encouraged by Western Window Systems’ 11% sales growth year-over-year,” says PGT president and CEO Jeff Jackson.

The company also plans to lower full-year guidance and cut costs to reduce annual operating costs by $4 million.

“We are revising our full-year guidance lower due to the unfavorable sales impact from a decrease in orders and shipments caused by Hurricane Dorian, a continued heavy custom product mix for the Western business and increased investments in the Southeastern business expected to drive awareness of the benefits of our impact-resistant products, following the recent storm activity,” said Jackson.

Also experiencing a flat third quarter, Masonite released its financial results on November 5, revealing a 1% decrease in total net sales compared to the third quarter of 2018, but a 2% increase for the North American residential market. The company saw a net income decrease of $10 million from $25 million in 2018 which it attributes to debt extinguishment costs, higher selling, general and administrative expenses, and costs related to previously announced restructuring activities.

Adjusted EBITDA for Masonite increased 7% from $71 million and, excluding $0.49 related to debt extinguishment costs and previously announced restructuring, earnings per share increased to $1.08 in third-quarter 2019, from $1.03 in the same quarter 2018.

“I am pleased that we delivered our third consecutive quarter of year-on-year adjusted EBITDA growth and margin expansion, despite continued soft end markets,” said Howard Heckes, Masonite’s president and CEO. “Higher average unit price, along with continued factory productivity improvements, has helped offset higher operational expenses, including those related to our ongoing footprint rationalization.”

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