PGTI Reports Third Quarter 2022 Results and Updates Full-Year 2022 Guidance
PGT Innovations, Inc., a national leader in premium windows and doors, including impact-resistant products, garage doors, and products designed to unify indoor/outdoor living spaces, today announced financial results for its third quarter ended October 1, 2022.
Financial Highlights for Third Quarter 2022
(All results reflect comparison to prior-year period; Cash on hand is compared to prior-year end)
- Net sales in the third quarter totaled $386 million, an increase of 28 percent (includes organic growth of 17 percent).
- Net income in the third quarter was $30 million, compared to a net loss of $5 million.
- Adjusted net income* in the third quarter was $33 million, an increase of 111 percent.
- Adjusted EBITDA* in the third quarter was $68 million, an increase of 58 percent.
- Net income attributable to common shareholders per diluted share in the third quarter was $0.50, compared to a net loss of $0.11.
- Adjusted net income per diluted share* in the third quarter was $0.55, compared to $0.26.
- Cash at the end of the third quarter was $219 million, an increase of 128 percent.
Updated Fiscal Year 2022 Guidance
- Net sales in the range of $1.460 billion to $1.490 billion.
- Adjusted EBITDA* in the range of $245 million to $255 million.
* Adjusted net income, Adjusted net income per diluted share and Adjusted EBITDA are non-GAAP measures. Please see “Use of Non-GAAP Financial Measures” below for more information.
“PGT Innovations delivered a strong third quarter. Net sales increased 28 percent to $386 million, year-over-year despite the impact of Hurricane Ian, which made landfall on September 28 near our headquarters in Venice, Florida,” said Jeff Jackson, President and Chief Executive Officer. “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,” continued Jackson, “total organic revenue growth of 17 percent year-over-year was comprised of a 38 percent increase in our Western region and 13 percent improvement in our Southeast region. Additionally, Anlin Windows & Doors, which we acquired in the fourth quarter of last year, contributed $35 million of revenue. Our ongoing focus on operational improvements, along with pricing actions to offset rising costs, helped expand gross margin by 410 basis points to 39 percent.”
“Subsequent to the end of the quarter, we acquired Martin Door, which expanded our product lines in the adjacent garage door market category,” added Jackson. “Martin enables us to leverage our extensive knowledge of protecting the envelope of homes and buildings as we look to expand geographically and into desirable adjacent markets. Martin is strategically positioned to capitalize on opportunities within our dealer, distributor, builder, and direct-to-consumer channels across the country, and its customized products and efficient cost structure generate strong margins and cash flow conversion. Just as important, Martin is a perfect cultural fit with our PGT Innovations team because of its focus on exceptional quality, safety and innovation.”
“I am extremely proud of our team for assisting communities affected by Hurricane Ian and for delivering high-quality products and services to our customers during these challenging circumstances,” added Jackson. “PGT Innovations’ impact-resistant products are specifically designed to protect life and property against powerful storms, such as the Category 4 Hurricane Ian. Our industry-leading products are designed and tested to meet some of the most stringent standards in the nation,” concluded Jackson.
“In the third quarter of 2022, we generated strong cash flow, ending the period with a cash balance of $219 million,” said John Kunz, Senior Vice President and Chief Financial Officer. “After the quarter’s end, PGT Innovations entered into a new five-year $250 million revolving credit facility, which was used to fund the Martin transaction along with cash on hand. We also extended maturities to create more liquidity to support PGT Innovations’ continued growth.”
“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. 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 5th 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,” concluded Kunz.
For the complete press release, click here.
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 are revolutionizing the way people live by unifying indoor and 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. The company is also the nation’s largest manufacturer of impact-resistant windows and doors and holds the leadership position in its primary market. The PGT Innovations’ family of brands include CGI®, PGT® Custom Windows and Doors, WinDoor®, Western Window Systems, Anlin Windows & Doors, Eze-Breeze®, CGI Commercial, NewSouth Window Solutions, and a 75 percent ownership stake in Eco Window Systems. The company’s brands, in their respective markets, are a preferred choice of architects, builders, and homeowners throughout North America and the Caribbean. Their high-quality products are available in custom and standard sizes with massive dimensions that allow for unlimited design possibilities in residential, multi-family, and commercial projects. For additional information, visit www.pgtinnovations.com.
Stephanie Cz – Corporate Communications Manager – (941) 480-1600
Source: PGT Innovations, Inc.