PGT Inc. 2014 Fourth Quarter and Fiscal Year Sales Are Up

February 26th, 2015 by Editor

For North Venice, Fla.-based PGT Inc., sales are up and income is down, according to its recently released 2014 fourth-quarter and fiscal year results.

Highlights for the fourth quarter include:

  • Net sales of $84.7 million, an increase of $22.7 million, or 36.6 percent, including $12.7 million of CGI net sales, and representing organic growth of $10.0 million, or 16.1 percent;
  • Net income of $2.9 million, compared to $5.3 million in 2013;
  • Net income, adjusted for the costs related to the start-up of its new glass facility, new product launches and ERP implementation costs, and ineffective hedges of $4.2 million, compared to $5.9 million (reflecting tax expense of $2.3 million in 2014, compared to none in 2013);
  • Adjusted net income per diluted share of $0.08, compared to $0.12 in 2013; and
  • Earnings before interest, tax, depreciation and amortization (EBITDA), adjusted for the costs related to the start-up of its new glass facility, certain new product launches and ERP implementation costs, and ineffective hedges of $12.1 million, including $2.9 million (or 22.8 percent of sales) of EBITDA from CGI, compared to $9.5 million.

“For the fourth quarter of 2014, gross margin adjusted for costs related to the startup of our new glass facility and the new product launch was 29.6 percent, representing a decrease of 3.6 percent,” says Brad West, chief financial officer. “The decrease in gross margin was caused by several factors, including a 1.2 percent negative impact of an extra week of fixed costs as a result of 2014’s fiscal calendar containing 53 weeks, and other items including an increase in scrap and labor costs, increased healthcare costs, higher cost of aluminum and a shift in mix towards new construction and vinyl sales.”

As for the entire fiscal year, highlights include:

  • Net sales of $306.4 million, an increase of $67.1 million, or 28.0 percent; including $13.3 million of CGI net sales, and representing organic growth of $53.8 million, or 22.5 percent;
  • Net income of $16.4 million, compared to $26.8 million;
  • Net income, adjusted for costs related to the acquisition of CGI, debt refinancing and common stock offering costs, costs related to the start-up of the new glass facility, new product launches and ERP implementation costs, and ineffective hedges of $21.6 million, compared to $23.2 million (reflecting tax expense of $12.7 million in 2014, compared to nil in 2013);
  • Adjusted net income per diluted share of $0.43, compared to $0.44; and
  • EBITDA, adjusted for costs related to the acquisition of CGI, debt refinancing and common stock offering costs, costs related to the start-up of its new glass facility, new product launches and ERP implementation costs, and ineffective hedges of $46.3 million, including $3 million (or 22.8 percent of sales) of EBITDA from CGI, compared to $37.8 million.

“2014 was a great year for PGT,” says PGT’s chairman of the board and CEO Rod Hershberger. “We opened our new glass processing facility to reduce dependence on outsourced finished glass units and we acquired CGI, expanding our impact product offering and adding another market-leading brand to our portfolio.”

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