Leading US manufacturer and supplier of residential impact-resistant windows and doors, PGT, Inc., has announced its financial results for the fourth quarter of 2009 ended 2 January 2010.
During the …
Leading US manufacturer and supplier of residential impact-resistant windows and doors, PGT, Inc., has announced its financial results for the fourth quarter of 2009 ended 2 January 2010. During the quarter, net sales were USD 36.0 million, a decrease of USD 5.6 million, or 13.5%, compared to the third quarter of 2009. Sales dropped USD 13.3 million, or 27.0% when compared to the same quarter of the prior year. A decrease was seen in gross margin at 25.0%, compared to 26.1% in the third quarter of 2009 gross margin and 29.5% gross margin in the fourth quarter of 2008. During the fourth quarter of 2009, gross margin adjusted for restructuring costs was 28.2% compared to 27.4% in the third quarter of 2009. Net income totalled USD 301 thousand due to a tax benefit of USD 5.4 million recorded during the quarter. Adjusted net income came to USD 2.5 million compared to USD 2.5 million adjusted net loss in the third quarter of 2009, and USD 2.3 million adjusted net loss in the fourth quarter of 2008. Adjusted net income per diluted share was USD 0.07, compared to an adjusted net loss per diluted share of USD 0.07 in the third quarter of 2009, and compared to an adjusted net loss per diluted share of USD 0.06 in the fourth quarter of 2008. Adjusted EBITDA totalled USD 2.9 million, compared to adjusted EBITDA of USD 3.2 million in the third quarter of 2009 and USD 3.0 million adjusted EBITDA in the fourth quarter of 2008. Moreover, additional cost reduction actions have been taken and are expected to produce annualized savings of USD 3.4 million. Housing starts in Florida declined 28% compared to the fourth quarter of 2008, driven mainly by a 75% decline in multi-family starts, said Rod Hershberger, president and CEO of PGT. Our operating performance continued to be negatively impacted by these industry conditions as our sales decreased 27%. Single-family housing starts were up 3% compared to the fourth quarter of 2008 and down 34% compared to the third quarter of 2009. There have been positive signs for the housing industry in Florida such as the reported increase in home sales and reduced inventory levels; however, sustained growth is expected to be slow and uncertain for the near future. We continue to move forward with new product offerings and line expansions as we pursue growth opportunities both inside and outside of Florida, including our new 770 aluminum impact sliding glass door and our new PremierVue vinyl impact line. Both of these were well received and continue to gain traction. With the success of our recent new products, and the strategic focus we continue to have on our customers, we remain quite optimistic about our long-term growth opportunities. Jeff Jackson, PGT“s executive vice president and chief financial officer, also commented on the fourth quarter of 2009, and stated, Our sales continued to be negatively impacted by the most difficult market conditions we have ever encountered, declining USD 13.3 million, or 27.0%, from the fourth quarter of 2008. Sales decreased USD 5.6 million, or 13.5%, from the third quarter mainly driven by repair and remodelling“s seasonal decrease. Despite the decline in sales, we generated positive cash flow driven by our 2009 cost savings, efficiency initiatives, and working capital improvements from which we expect to benefit well into the future. In December, we repaid the USD 12 million of our revolving credit facility that was drawn down in October, and utilizing internally generated cash, prepaid USD 2 million of our outstanding term loan. We were also successful in amending our Second Amended and Restated Credit Agreement. The amendment requires a minimum of USD 15 million in equity to be raised and used to pay-down our term loan. This amount is currently being raised with our rights offering which was declared effective on February 10, 2010. With this recapitalization, our company will benefit from increased operational flexibility to drive growth as the housing industry begins to rebound, Jackson continued. PGT will hold a conference call Friday, 19 February 2010, at 10:30 a.m. Eastern Time, which will be broadcast simultaneously over the Internet. Those who wish to participate in the teleconference, must dial into the call a few minutes before the start time at: 888-428-9507 (US and Canada) and 719-457-2692 (international). A replay of the call will be available as of 12:30 p.m. eastern time from 19 February to 12 March 2010. The replay can be accessed by dialling 888-203-1112 (US and Canada) and 719-457-0820 (international) and referring to pass code 4739428. The webcast will also be available at the Investor Relations section of PGT“s website, http://www.pgtinc.com.