PGTI Reports Second Quarter and First Half 2018 Results
Second Quarter Net Income Per Diluted Share increased 115 Percent Year-over-Year | Strong Second Quarter Net Sales of $169 million Driven Primarily by Repair and Remodeling Sector Growth
VENICE, Fla.-- PGT Innovations, Inc. (NYSE: PGTI), the leading U.S. manufacturer and supplier of impact-resistant windows and doors, today announced financial results for its second quarter and first half ended June 30, 2018.
Financial Highlights for Second Quarter 2018 versus Second Quarter 2017
- Net sales of $169 million, an increase of $32 million, or 23 percent
- Gross margin of 35.4 percent, compared to 32.4 percent
- Net income of $22.5 million, compared to $10.3 million
- Adjusted net income of $21.4 million, compared to $10.3 million
- Net income per diluted share of $0.43, compared to $0.20
- Adjusted net income per diluted share of $0.41, compared to $0.20
Financial Highlights for First Half 2018 versus First Half 2017
- Net sales of $310 million, an increase of $59 million, or 24 percent
- Gross margin of 33.8 percent, compared to 30.5 percent
- Net income of $29.9 million, compared to $13.3 million
- Adjusted net income of $31.3 million, compared to $14.1 million
- Net income per diluted share of $0.57, compared to $0.26
- Adjusted net income per diluted share of $0.60, compared to $0.27
“We continue to build on our momentum and are pleased to report a 23 percent increase in year over year sales,” stated Jeff Jackson, President and Chief Executive Officer of PGT Innovations. “Significant growth in our repair and remodel sector along with solid operating performance across the portfolio resulted in another quarter of strong sales and free cash flow.”
“Demand for our products continues to grow based on our deep customer relationships and increased awareness of the benefits of our impact-resistant products following last year’s hurricane season. I am proud of our team’s response to this increased demand and ability to deliver exceptional operating performance that resulted in gross margin improvement of three percentage points in the second quarter compared to last year. The positive impacts of increased demand for our products, and our strong operating performance and solid free cash flow underlie our decision to increase the ranges for all metrics in our guidance for the full year of 2018,” continued Jackson.
“As we move through 2018, we continue to successfully execute on our strategy of investing in advertising and marketing to drive strong sales and expect to further enhance value going forward. We are excited about the opportunities ahead and look forward to completing our acquisition of Western Window Systems to position PGT Innovations as a national leader in the premium window and door space. As we enter the second half of the year, we are well positioned and focused to deliver on our strategic plan and deliver exceptional full year results,” Jackson concluded.
Fiscal Year 2018 Outlook
As previously announced, given the increased demand for our products and our solid execution, the Company is increasing its guidance for its 2018 fiscal year. The revised guidance is for legacy PGT Innovations and does not include Western Window Systems.
PGT Innovations now expects to finish toward the high end of the following ranges, with all comparisons to fiscal year 2017:
- Net sales of $580 million to $600 million, increasing 13 percent to 17 percent;
- Adjusted EBITDA of $100 million to $110 million, increasing 19 percent to 31 percent;
- Net income per diluted share of $0.95 to $1.10; and
- Free cash flow of $62 million to $72 million
Acquisition of Western Window Systems
On July 24, 2018, the Company announced it entered into a definitive agreement under which PGT Innovations will acquire Western Window Systems for $360 million in cash, subject to customary adjustments. The transaction is expected to be immediately accretive to cash EPS and gross and adjusted EBITDA margins and accretive to GAAP EPS in the first half of 2019. The transaction is expected to be completed in the third quarter of 2018.
About PGT Innovations, Inc.
PGT Innovations, headquartered in North Venice, Florida, with approximately 2,700 employees, creates value through customer relationships, understanding the needs of the industries it serves, a drive to create the strongest, safest impact-resistant products on the market, and a commitment to always moving our business and products forward. The company's trusted brands include CGI® and CGI® Commercial, PGT® Custom Windows & Doors, and WinDoor®. PGT Innovations is the nation’s largest manufacturer of impact-resistant windows and doors, holds the leadership position in its primary market, and is part of the S&P SmallCap 400 Index. For additional information, visit www.pgtinnovations.com.