PGTI Reports Fourth Quarter and Fiscal Year 2022 Results, Provides First Quarter 2023 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 fourth quarter and fiscal year ended December 31, 2022.
Financial Highlights for Fourth Quarter 2022
(All results reflect comparison to prior-year period; Cash on hand is compared to prior-year end)
- Net sales totaled $341 million, an increase of 12 percent (includes organic growth of 5 percent).
- Net income was $8 million, a decrease of 54 percent.
- Adjusted net income* was $16 million, a decrease of 14 percent.
- Adjusted EBITDA* was $48 million, on par with last year.
- Net income per common share attributable to common shareholders, diluted, was $0.18, a decrease of 25 percent.
- Adjusted net income per diluted share* was $0.27, a decrease of 13 percent.
- Total liquidity at the end of the fourth quarter was $235 million, including cash of $67 million and revolver availability of $168 million.
Financial Highlights for Fiscal Year 2022
(All results reflect comparison to prior-year period)
- Net sales totaled $1.49 billion, an increase of 28 percent (includes organic growth of 16 percent).
- Net income was $98 million, an increase of 180 percent.
- Adjusted net income* was $116 million, an increase of 88 percent
- Adjusted EBITDA* was $254 million, an increase of 50 percent.
- Net income per common share attributable to common shareholders, diluted, was $1.64, an increase of 264 percent.
- Adjusted net income per diluted share* was $1.92, an increase of 86 percent.
- Cash flow from operations was $196 million, an increase of 208 percent.
First Quarter 2023 Guidance
- Net sales in the range of $370 million to $390 million.
- Adjusted EBITDA* in the range of $60 million to $64 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.
“We finished our fiscal year with another strong quarter. Our fourth quarter financial results, with year-over-year net sales growth of 12 percent, showed recovery from impacts of Hurricane Ian and the ransomware incident, and was driven by continued operational improvement across our portfolio of brands. We were able to offset new construction demand weakness from macro-economic headwinds, including higher inflation and interest rates through solid execution across the enterprise,” said Jeff Jackson, President and Chief Executive Officer.
“Organic sales growth in the fourth quarter was 5 percent year-over-year, with our Western region growing 15 percent, and our Southeast region growing 2 percent. Our fourth quarter revenues were impacted by approximately $15 million due to the effects of Hurricane Ian and the ransomware incident. The suddenness of the two events impacted our ability to expand gross margin during the quarter, and we realized a year-over-year flat gross margin. In spite of the challenges during the fourth quarter, our team showed resilience and ended the quarter with some of the strongest performances for the year across our core businesses,” added Jackson.
“We completed our acquisition of Martin Door during the fourth quarter, as noted on our third quarter call. We are making progress in integrating Martin across our dealer, distributor and direct-to-consumer channels and look forward to its contributions in the coming year,” added Jackson.
“Over the past five years, we have expanded our geographic footprint and product lines to meet consumer demand with our acquisitions of Western Window Systems, New South, Eco, Anlin, and Martin. We believe our national footprint and depth of product offering provide a strong basis for future profitable growth. Going forward, we will be looking to maximize shareholder value through the return of capital with our recently announced share repurchase program. Our primary priority will continue to invest in our enterprise through high-return capital projects,” concluded Jackson.
“In the fourth quarter of 2022, we generated $44 million of operating cash flow, ending the fiscal year with a cash balance $67 million,” said John Kunz, Senior Vice President and Chief Financial Officer. “For the full year, we generated over $151 million in free cash flow, a great source to fund our capital priorities,” added Kunz.
“The strong 28 percent full-year sales growth for 2022 was driven by operational improvements and the impact of price increases, offsetting a reduction in unit demand and backlog. Our organic backlog declined $126 million during the year. With the uncertainty in macro-economic conditions, higher interest rates and an inflationary environment, we are issuing first quarter 2023 guidance for net sales in the range of $370 million to $390 million, and Adjusted EBITDA in the range of $60 million to $64 million,” concluded Kunz.
For the complete press release, click here.
About PGT Innovations, Inc.
PGT Innovations (NYSE: PGTI) 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.