Ply Gem’s Second Quarter Results Show GrowthAugust 11th, 2014 by Editor
Ply Gem Holdings Inc. released its financial results for the second quarter, which showed the company performing stronger than last year’s second-quarter.
According to the press release, net sales increased by 11.2 percent from $41.1 million to $409.2 million compared to $368.1 million for the second quarter of 2013. “Our acquisitions of Gienow and Mitten, which were completed during the second quarter of 2013, favorably impacted net sales by approximately $24.0 million during [this year’s second quarter over last year’s],” the press release says. Specifically, windows and doors’ net sales totaled $181.3 million, up $12.3 million, or 7.3 percent, compared to $168.9 million in the second quarter of 2013. The net sales increase was primarily caused by higher selling prices for the window products derived from price increases that have been implemented and higher proportion of vinyl window sales, which typically carry a higher selling price than aluminum windows.
Gross profit margin was 21.4 percent which is an increase of 120 basis points from the second quarter of 2013. According to the press release, the increase in gross profit margin was driven by improved pricing and an increase in average selling prices as well as the minimization of certain operating inefficiencies for the Windows and Doors segment.
Operating earnings were $31.2 million, an increase of $30.6 million from the second quarter of 2013 reflecting the absence of the $23.5 million in initial public offering costs incurred during 2013 along with improved operating performance across our manufacturing facilities partially offset by increased integration and customer transition expenses for its Western Canadian businesses related to the consolidation of two separate manufacturing facilities into a single facility.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was $44.3 million compared to $41.1 million in the second quarter of 2013.
Gary E. Robinette, Ply Gem’s president and CEO s is encouraged by the company’s 2014 upswing.
“During the second quarter, we were able to recover from the unusually severe winter weather conditions during the first quarter and experienced net sales growth of 11 percent and a gross profit increase of 18 percent from the prior year. This operating performance improvement was primarily attributed to our US Windows businesses partially offset by near-term integration and restructuring costs associated with combining our Western Canadian businesses. Despite the choppiness in U.S. single-family housing starts, we continue to demonstrate improvement in our operating performance and remain focused on our strategic priorities to drive further gross profit improvements and increases in adjusted EBITDA,” Robinette says. “We continue to remain positive about the long-term recovery for the housing industry and our ability to take advantage of the market as it improves,” he adds.