PGT Reports 22 Percent Decline for Second Quarter

August 11th, 2009 by Editor

PGT Industries has announced financial results that its sales declined $13

2 million, or 22 percent, for the second quarter, compared with the second quarter of 2008

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“Our sales continued to be negatively impacted by the most difficult market conditions we have ever encountered ,” says Jeff Jackson, PGT’s executive vice president and chief financial officer

However, he points to some encouraging signs in the second quarter, including an increase in sequential quarter sales, and efficiency initiatives that positively impacted the company’s ability to generate cash

“This internally generated cash, coupled with effective management of working capital, enabled us to prepay $8

0 million of outstanding bank debt in June, while cash on hand decreased only $17 million during the quarter,” Jackson adds

While this is positive news the company is prepared to face further challenges in 2009

“While we are pleased with the results of our second quarter, we expect the challenges of this unprecedented market downturn to continue through the rest of 2009, and possibly further

However, we remain committed to investing in our future, controlling costs and strengthening our balance sheet by further reducing debt”

Net sales were $46

9 million, an increase of $54 million, compared to the first quarter of 2009 Sales decreased when compared to the prior year second quarter by $132 million

Gross margin of 31

2 percent improved compared to the 2009 first quarter gross margin of 238 percent, but declined when compared to gross margin of 358 percent in the second quarter of 2008

Net income was $342 thousand, compared to an adjusted net loss of $3

7 million in the first quarter of 2009, and adjusted net income of $19 million in the second quarter of 2008

“We delivered solid operating performance in an environment of new housing starts down 44 percent compared to the second quarter of 2008, as the challenges faced by the home building industry continue

Although our sales decreased 22 percent in the second quarter of 2009 compared to 2008, we were able to generate $50 million of cash from our operations,” adds Rod Hershberger, PGT’s president and chief executive officer

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