VENICE, Fla.--(BUSINESS WIRE)--PGT Innovations, Inc. (NYSE: PGTI), a national leader in premium windows and doors, including impact-resistant products and products designed to unify indoor/outdoor living spaces, today announced financial results for its third quarter ended October 3, 2020.
Financial Highlights for Third Quarter 2020 compared to Third Quarter 2019
- Net sales increased 20 percent, to $238 million, including $27 million from our NewSouth acquisition
- Gross profit increased 24 percent, to $87 million
- Net income increased 15 percent, to $17 million
- Net income per diluted share increased 12 percent, to $0.29, and Adjusted net income per diluted share increased 19 percent, to $0.31
- Adjusted EBITDA increased 24 percent, to $43 million
“PGT Innovations’ third quarter sales reflect strong demand in our key markets, including 7 percent organic growth and $27 million of sales from NewSouth Window Solutions,” said Jeff Jackson, President and Chief Executive Officer. “Looking ahead to the fourth quarter of 2020 and into 2021, we expect sales growth based upon the strength of new orders, and our growing backlog. Our legacy Southeast and Western business units together saw order entries grow 26 percent over the prior-year quarter, while NewSouth increased orders by 48 percent. Execution of strategic selling and marketing initiatives has been a key driver of sales in addition to recovering market demand for our portfolio of products, aided by an active hurricane season.”
“Adjusted EBITDA increased 24 percent, to $43 million, while Adjusted EBITDA margins grew 50 basis points to 18 percent, driven by robust sales, improved operational efficiencies in our Western business and continued emphasis on controlling costs,” added Mr. Jackson.
“At the end of the quarter, total liquidity was $175 million, including cash on hand of $99 million and undrawn revolver capacity of $76 million, bringing our net debt-to-trailing-twelve-month Adjusted EBITDA ratio to 2.2 times. With strong recurring cash flow and overall liquidity, we also made voluntary prepayments of borrowings under the term loan totaling $10 million during the third quarter,” said Sherri Baker, Senior Vice President and Chief Financial Officer. “As we think about capital allocation, we continue to prioritize internal investment in projects that we expect to drive margin growth or further improve our operational efficiency.”
“In the fourth quarter of 2020, we expect consolidated net sales, inclusive of NewSouth to be in the range of $200 million to $210 million, an increase of 14 to 20 percent compared to fourth quarter of 2019, reflecting current market strength and order entries booked through October,” concluded Baker.
About PGT Innovations, Inc.
PGT Innovations manufactures and supplies premium windows and doors. Its highly-engineered and technically-advanced products can withstand some of the toughest weather conditions on earth and unify indoor/outdoor living spaces. PGT Innovations creates value through deep customer relationships, understanding the unstated needs of the markets it serves and a drive to develop category-defining products. PGT Innovations is also the nation’s largest manufacturer of impact-resistant windows and doors, holds the leadership position in its primary markets, and is part of the S&P SmallCap 400 Index.
The PGT Innovations’ family of brands include CGI®, PGT® Custom Windows & Doors, WinDoor®, Western Window Systems®, CGI Commercial®, Eze-Breeze® and NewSouth Window Solutions®. The Company’s brands, in their respective markets, are a preferred choice of architects, builders, and homeowners throughout North America and the Caribbean. The Company’s high-quality products are available in custom and standard sizes with multiple dimensions that allow for greater design possibilities in residential, multi-family, and commercial projects. For additional information, visit www.pgtinnovations.com.
