PGT Innovations Posts Increases Across the Board in Second QuarterAugust 16th, 2021 by Tara Taffera
A 41% increase in net sales and a 30% increase in net profit are some of the high points from the second-quarter financial results released last week from PGT Innovations.
“PGT Innovations achieved sales growth of 41% in the second quarter as we continue to see economic growth across our key markets,” said Jeff Jackson, president and CEO. “Organic growth was 29% in addition to $24 million of sales contribution from Eco, which we acquired in January of this year. In our Southeast Business Unit, sales were up 40%, and in our Western Business Unit, sales were up 44%, as the recoveries we’ve seen in Arizona and California continue.”
Some of the financial highlights for the second quarter of 2021 compared to the second quarter of 2020 include:
• Net sales increased 41%, to $286 million, which includes $24 million from consolidation of Eco Enterprises (f/k/a Eco Windows Systems);
• Gross profit increased 30%, to $97 million;
• Net income attributable to common shareholders was $0.11 per diluted share;
• Adjusted net income was $0.18 per diluted share; and
• Adjusted EBITDA was $36 million.
As homeowners continue to renovate, Jackson said order entries increased 35% over the prior year quarter. With all that growth it’s no surprise that the company has been on a hiring frenzy.
“We remain focused on increasing capacity by adding new equipment and the needed headcount to support the growing demand,” said Jackson. “I am excited that we successfully added nearly 600 employees.”
Those new hires accounted for one of the few decreases, the company reported. “As we focused on hiring and training new employees to maintain our high standards for safety and quality, these efforts generated higher costs and inefficiencies resulting in a gross margin decline of 270 basis points compared to the second quarter of 2020. Gross margin did not get the full benefit of the price increases as products being shipped in the quarter were from backlog generated prior to the price increases taking effect,” Jackson said.
“Looking toward the second half of the year, we expect that price increases and the benefits from increased efficiencies will enable us to improve margins in both the third and fourth quarters,” he added.