PGT 2014 4Q and fiscal year sales up

PGT has released its 4Q and fiscal year results with sales up and income down, with, for example, net sales of USD 84.7 million, an increase of USD 22.7 million, or 36.6%, including USD 12.7 million of CGI net sales.

PGT Inc. has reported sales are up and income is down, according to its recently released 2014 fourth-quarter and fiscal year results. These include:
•    net sales of USD 84.7 million, an increase of USD 22.7 million, or 36.6%, including USD 12.7 million of CGI net sales, and representing organic growth of USD 10.0 million, or 16.1%;
•    net income of USD 2.9 million, compared to USD 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 USD 4.2 million, compared to USD 5.9 million (reflecting tax expense of USD 2.3 million in 2014, compared to none in 2013);
•    adjusted net income per diluted share of USD 0.08, compared to USD 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 USD 12.1 million, including USD 2.9 million (or 22.8% of sales) of EBITDA from CGI, compared to USD 9.5 million.
“For the fourth quarter of 2014, gross margin adjusted for costs related to the start-up of our new glass facility and the new product launch was 29.6%, representing a decrease of 3.6%,” says Brad West, chief financial officer. “The decrease in gross margin was caused by several factors, including a 1.2% 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 labour costs, increased healthcare costs, higher cost of aluminium and a shift in mix towards new construction and vinyl sales.”
As for the entire fiscal year, highlights include:
•    net sales of USD 306.4 million, an increase of USD 67.1 million, or 28.0%; including USD 13.3 million of CGI net sales, and representing organic growth of USD 53.8 million, or 22.5%;
•    net income of USD 16.4 million, compared to USD 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 USD 21.6 million, compared to USD 23.2 million (reflecting tax expense of USD 12.7 million in 2014, compared to nil in 2013);
•    adjusted net income per diluted share of USD 0.43, compared to USD 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 USD 46.3 million, including USD 3 million (or 22.8% of sales) of EBITDA from CGI, compared to USD 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.”