PGT Reports 2009 Fourth Quarter Results

February 15th, 2010 by Editor

PGT Inc., manufacturer and supplier of residential impact-resistant doors and windows, announced its financial results for the fourth quarter ended January 2, 2010. Net sales were $36.0 million, a decrease of $5.6 million, or 13.5 percent, compared to the third quarter of 2009. Sales decreased when compared to the prior year fourth quarter by $13.3 million, or 27.0 percent.

Net income was $301 thousand driven by a tax benefit of $5.4 million recorded during the quarter. Adjusted net income was $2.5 million compared to an adjusted net loss of $2.5 million in the third quarter of 2009, and an adjusted net loss of $2.3 million in the fourth quarter of 2008.

Adjusted net income per diluted share was $0.07, compared to an adjusted net loss per diluted share of $0.07 in the third quarter of 2009, and an adjusted net loss per diluted share of $0.06 in the fourth quarter of 2008.

Adjusted EBITDA was $2.9 million, compared to adjusted EBITDA of $3.2 million in the third quarter of 2009 and adjusted EBITDA of $3.0 million in the fourth quarter of 2008.

Additional cost reduction actions were taken that are expected to produce annualized savings of $3.4 million, according to the company.

“Housing starts in Florida declined 28 percent compared to the fourth quarter of 2008, driven mainly by a 75 percent decline in multi-family starts,” says Rod Hershberger, PGT’s president and chief executive officer. “Our operating performance continued to be negatively impacted by these industry conditions as our sales decreased 27 percent.”

“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,” adds Jeff Jackson, PGT’s executive vice president and chief financial officer. “In December, we repaid the $12 million of our revolving credit facility that was drawn down in October, and utilizing internally generated cash, prepaid $2 million of our outstanding term loan.”

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