DWM Companies Continue to Report Strong Third Quarter EarningsNovember 29th, 2022 by Editor
Much like Jeld-Wen and Masonite PGT Innovations and Builders FirstSource issued third-quarter earnings earlier this month that show both companies are performing fairly well financially.
Florida-based PGT Innovations Inc. (PGTI), net third quarter sales totaled $386 million, an increase of 28% (including organic growth of 17%) compared to the third quarter of 2021. In that same time frame, net income was $30 million compared to a net loss of $5 million, and adjusted net income was $33 million, an increase of 111%.
Adjusted EBITDA in the third quarter was $68 million, an increase of 58% over last year’s third quarter, and adjusted net income per diluted share in the third quarter was $0.55, compared to last year’s figure of $0.26. Net income attributable to common shareholders per diluted share in the third quarter was $0.50 compared to a net loss of $0.11.
“PGT Innovations delivered a strong third quarter. Net sales increased 28% to $386 million, year-over-year despite the impact of Hurricane Ian, which made landfall on September 28 near our headquarters in Venice, Fla.,” said Jeff Jackson, president and CEO. “While our facilities were not damaged, storm-related disruptions caused approximately $12 million of third-quarter sales to be deferred. Despite the hurricane and other economic headwinds, including rising interest rates and rising inflation total organic revenue growth of 17% year-over-year was comprised of a 38% increase in our Western region and 13% improvement in our Southeast region.”
Jackson also says that Anlin Windows & Doors, acquired in the fourth quarter of 2021, contributed $35 million in revenue.
“Our previous fiscal year 2022 guidance did not contemplate the impacts of Hurricane Ian, the previously disclosed cybersecurity incident, or our acquisition of Martin Door,” says John Kunz, senior vice president and CFO. “Our facilities did not sustain damage from the storm, but our employees could not safely travel to work, limiting our ability to produce in October. Additionally, the cybersecurity incident we experienced on November 5 impacted our ability to process orders and produce in November. As such, we are updating fiscal year 2022 guidance for net sales in the range of $1.460 billion to $1.490 billion and for Adjusted EBITDA in the range of $245 million to $255 million.”
Builders FirstSource also released results from its third quarter, which ended September 30. Revenue was reported at $5.8 billion, up 4.6% from the third quarter of 2021. The company also saw a 20.1% increase over last year with respect to adjusted EBITDA, and net income was reported at $738 million, up 20% from third quarter 2021 as well.
The company’s profit margin was tallied at 13%, up from 11% in 3Q 2021, an increase Builders FirstSource attributes to higher revenue. The single-family market dominated the company’s sales, making up 74% of total net sales, a 1.8% increase “with growth slowing during the quarter and a tough comparison against a strong prior year,” the company reports. The repair and remodeling market made up 19% of total net sales, an increase “against low prior year comp and increased demand due to favorable pricing environment,” Builders FirstSource said. The company also noted that the multi-family sector, 7% of its total net sales, increased “due to strong market and timing of projects,” and that it had 6.9% core organic growth in the third quarter.
Breaking out its offerings by category, Builders FirstSource reported that doors, windows, and millwork increased 46% from third quarter 2021, from $883 million to $1,294 million and made up 22% of the company’s net sales. Lumber and lumber sheet goods dropped 25% over the same time period, from $2,406 million to $1,816 million, though it still makes up 32% of the company’s total net sales.