ex99-1.htm

August 13, 2007, Ply Gem Holdings, Inc. (“Ply Gem” or the “Company”), a leading manufacturer of residential exterior building products in North America, today announced second quarter 2007 net sales of $390.7 million, a 35.6% increase over the $288.1 million for the same period in 2006. For the first half of 2007, net sales were $676.0 million or 34.0% higher than the $504.4 million net sales for the first half of 2006. The results for 2007 include the operations of the Company’s subsidiaries, AWC Holding Company (“Alenco”), which was acquired by Ply Gem on February 24, 2006 and Alcoa Home Exteriors, Inc. (“AHE”), which was acquired by Ply Gem on October 31, 2006. The results for the first half of 2006 include the operations of Alenco from February 24, 2006 through the end of the second quarter but do not include the results of AHE, which we acquired on October 31, 2006. Alenco contributed $35.9 million and $66.6 million of net sales for the second quarter and first half of 2007, respectively, and $39.7 million and $53.7 million for the second quarter and first half of 2006, respectively. AHE contributed $140.3 million and $236.0 million of net sales for the second quarter and first half of 2007, respectively.

Operating earnings for the second quarter of 2007 were $51.6 million compared to $34.1 million for the second quarter of 2006. For the first half of 2007, operating earnings were $56.8 million compared to $48.3 million for the first half of 2006. Alenco contributed $2.5 million and $3.9 million of operating earnings for the second quarter and first half of 2007, respectively, and $3.8 million and $4.8 million for the second quarter and first half of 2006, respectively. AHE contributed $13.9 million and $9.3 million of operating earnings for the second quarter and first half of 2007, respectively.

Net income for the second quarter of 2007 was $17.3 million compared to net income of $10.9 million for the second quarter of 2006. For the first half of 2007, net income was $6.4 compared to $9.0 million for the first half of 2006. Ply Gem’s net income for the second quarter and first half of 2007 included $1.2 million and $1.4 million, respectively, of after tax impact of a foreign currency gain. Net income for the second quarter and first half of 2006 included $0.7 million of an after tax impact of a foreign currency gain. Alenco contributed $1.5 million and $2.5 million to net income for the second quarter and first half of 2007, respectively, and $2.4 million and $2.9 million to net income for the second quarter and first half of 2006, respectively. AHE contributed $8.6 million and $5.8 of net income for the second quarter and first half of 2007, respectively.

Adjusted EBITDA for the second quarter of 2007 was $65.6 million compared to $41.6 million for the second quarter of 2006. For the first half of 2007, Adjusted EBITDA was $84.4 compared to $63.1 million for the first half of 2006. Alenco contributed $3.4 million and $5.8 million of Adjusted EBITDA for the second quarter and first half of 2007, respectively, and $4.7 million and $6.2 million for the second quarter and first half of 2006, respectively. AHE contributed $22.8 million and $21.3 million of Adjusted EBITDA for the second quarter and first half of 2007, respectively. Adjusted EBITDA for all periods presented excludes currency translation gains or losses.

Gary E. Robinette, President and CEO, stated “We are pleased with Ply Gem’s second quarter and first half EBITDA performance in light of the challenging market conditions that existed in the single family housing and remodeling market during the first half of 2007. Our stronger than expected financial performance during the second quarter and first half of 2007 is the result of cost savings that are being realized as a result of our AHE and Alenco acquisitions integration and our expense reduction efforts that have been undertaken in all areas of our business in response to what is expected to be a prolonged downturn in the housing market.”

Mr. Robinette continued, “Given the uncertainty in the housing market in the next 12 to 24 months, Ply Gem will continue to focus on improving upon our overall cost structure and gaining profitable market share. Given our highly variable cost structure, I believe Ply Gem is distinctively positioned to take advantage of our markets as they improve.”

On February 24, 2006, Ply Gem Industries, Inc. acquired all of the outstanding shares of AWC Holding Company (the “Alenco Acquisition”) in accordance with a stock purchase agreement entered into among Ply Gem Industries, Inc. and Linsalata Capital Partners for aggregate consideration of approximately $120.0 million, subject to a working capital adjustment and the aggregate value of certain stock options cancelled or forfeited in connection with the Alenco Acquisition.

On October 31, 2006, Ply Gem Industries, Inc. acquired all of the outstanding shares of Alcoa Home Exteriors, Inc. (AHE) in accordance with a stock purchase agreement entered into among Ply Gem Industries, Inc. and Alcoa Securities Corporation and Alcoa Inc. for aggregate consideration of approximately $305.0 million, subject to a working capital adjustment.

Ply Gem Industries, Inc. is a leading manufacturer of residential exterior building products. The company sells a broad range of vinyl siding, vinyl, aluminum and wood windows, aluminum trim coil, aluminum siding and accessories, and vinyl and composite fence, railing and decking products. Ply Gem is a wholly-owned subsidiary of Ply Gem Holdings, Inc., which is controlled by affiliates of Caxton-Iseman Capital. For more information, please visit the Company’s website at www.plygem.com.

This document and oral statements made from time to time by our representatives may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the Company’s current plans and expectations and involve risks and uncertainties that could cause actual future activities and results of operations to be materially different from those set forth in the forward-looking statements. Important factors impacting such forward-looking statements include the availability and cost of raw materials and purchased components, the level of construction and remodeling activity, changes in general economic conditions, the rate of sales growth, and product liability claims. The Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise. For further information, please refer to the reports and filings of the Company with the Securities and Exchange Commission.

1. The accompanying unaudited condensed consolidated statements of operations of PlyGem Holdings, Inc. (the “Company”) do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the period from January 1, 2007 through June 30, 2007 are not necessarily indicative of the results that may be expected for the year ended December 31, 2007.

The selected balance sheet data for the periods presented in Note 4 has been derived from the December 31, 2006 audited consolidated financial statements of Ply Gem Holdings, Inc. and the unaudited condensed consolidated financial statements of Ply Gem Holdings, Inc. as of June 30, 2007, and does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.

2. Adjusted EBITDA means net income (loss) plus interest expense (net of investment income), provision (benefit) for income taxes, depreciation and amortization, non-cash foreign currency gain/(loss), amortization of non-cash write-off of the portion of excess purchase price from acquisitions allocated to inventories, third-party charges associated with business combination financing costs (“other expense”), restructuring and integration costs associated with acquisitions, and cumulative effect of accounting changes. Other companies may define Adjusted EBITDA differently and, as a result, our measure of Adjusted EBITDA may not be directly comparable to Adjusted EBITDA of other companies. Management believes that the presentation of Adjusted EBITDA included in this press release provides useful information to investors regarding our results of operations because it assists both investors and management in analyzing and benchmarking the performance and value of our business. Although we use Adjusted EBITDA as a financial measure to assess the performance of our business, the use of Adjusted EBITDA is limited because it does not include certain material costs, such as interest and taxes, necessary to operate our business. Adjusted EBITDA included in this press release should be considered in addition to, and not as a substitute for, net earningsin accordance with GAAP as a measure of performance in accordance with GAAP. You are cautioned not to place undue reliance on Adjusted EBITDA.

	Ply Gem Holdings, Inc.						Ply Gem Holdings, Inc.
Summary of Net Sales	(Amounts in thousands)						(Amounts in thousands)
	For the three months ended						For the six months ended
	June 30, 2007			July 1, 2006			June 30, 2007			July 1, 2006

Ply Gem Holdings, Inc.:	$	390,695		$	288,111		$	675,969		$	504,422
Less:
Alenco ¹		(35,865	)		(39,749	)		(66,581	)		(53,659	)
AHE ²		(140,287	)		-			(236,027	)		-
Ply Gem Holdings, Inc. Pre-Acquisitions	$	214,543		$	248,362		$	373,361		$	450,763

Summary of Adjusted EBITDA	(Amounts in thousands)						(Amounts in thousands)
	For the three months ended						For the six months ended
	June 30, 2007			July 1, 2006			June 30, 2007			July 1, 2006
Ply Gem Holdings, Inc.:	$	65,561		$	41,598		$	84,403		$	63,131
Less:
Alenco ¹		(3,399	)		(4,725	)		(5,762	)		(6,187	)
AHE ²		(22,842	)		-			(21,276	)		-
Ply Gem Holdings, Inc. Pre-Acquisitions	$	39,320		$	36,873		$	57,365		$	56,944

1) Results of Alenco are included in Ply Gem's results following Ply Gem's February 24, 2006 acquisition of Alenco.
2) Results of AHE are included in Ply Gem's results following Ply Gem's October 31, 2006 acquisition of AHE.

	Ply Gem Holdings, Inc.
	(Amounts in thousands)
	For the three months ended
	June 30, 2007			July 1, 2006
Net income	$	17,270		$	10,878
Interest expense, net		24,435			16,941
Provision for income taxes		10,744			6,958
Depreciation and amortization		12,314			7,544
Non Cash gain on currency transaction		(1,992	)		(1,164	)
Restructuring/Integration Expense - AHE		1,647			-
Other expense		1,143			441

Adjusted EBITDA	$	65,561		$	41,598

	Alenco			AHE		Alenco			AHE
	(Amounts in thousands)					(Amounts in thousands)
	For the three months ended					For the three months ended
	June 30, 2007					July 1, 2006
Net income	$	1,549		$	8,604	$	2,404		$	-
Interest expense, net		(20	)		-		(28	)		-
Provision for income taxes		950			5,274		1,473			-
Depreciation and amortization		920			7,317		876			-
Non Cash charge of purchase price
allocated to inventories		-			-		-			-
Restructuring/Integration Expense - AHE		-			1,647					-
Adjusted EBITDA	$	3,399		$	22,842	$	4,725		$	-

	Ply Gem Holdings, Inc.
	(Amounts in thousands)
	For the six months ended
	June 30, 2007			July 1, 2006
Net income	$	6,406		$	8,962
Interest expense, net		49,124			32,111
Provision for income taxes		2,294			5,720
Depreciation and amortization		25,552			14,544
Non Cash gain on currency transaction		(2,208	)		(1,093	)
Non Cash charge of purchase price
allocated to inventories		-			304
Restructuring/Integration Expense - AHE		2,092			-
Other expense		1,143			2,497
Cumulative effect of accounting change		-			86
Adjusted EBITDA	$	84,403		$	63,131

	Alenco			AHE		Alenco			AHE
	(Amounts in thousands)					(Amounts in thousands)
	For the six months ended					For the six months ended
	June 30, 2007					July 1, 2006
Net income	$	2,451		$	5,774	$	2,930		$	-
Interest expense, net		(31	)		-		(43	)		-
Provision for income taxes		1,502			3,539		1,874			-
Depreciation and amortization		1,840			9,871		1,122			-
Non Cash charge of purchase price
allocated to inventories		-			-		304			-
Restructuring/Integration Expense - AHE		-			2,092					-
Adjusted EBITDA	$	5,762		$	21,276	$	6,187		$	-

	June 30, 2007		December 31, 2006
	(Amounts in thousands)
Unrestricted cash and cash equivalents	$	44,265	$	53,274
Accounts receivable, less allowances		180,764		130,795
Inventories		120,272		128,156
Prepaid expenses and other current assets		13,955		20,873
Property and equipment, net		195,689		206,837
Goodwill		821,475		811,285
Intangible assets, net		220,836		232,833
Accounts payable		98,439		95,568
Current maturities of long-term debt		6,873		5,870
Long-term debt, less current maturities		1,058,681		1,042,894
Stockholder's Equity		235,446		227,716

	For the three months ended
	June 30,			July 1,
	2007			2006
	(Amounts in thousands)

Net Sales	$	390,695		$	288,111
Costs and Expenses:
Cost of products sold		292,896			219,251
Selling, general and administrative expense		41,897			31,835
Amortization of intangible assets		4,302			2,971
Total Costs and Expenses		339,095			254,057
Operating earnings		51,600			34,054
Foreign currency gain		1,992			1,164
Interest expense		(24,680	)		(17,198	)
Investment income		245			257
Other expense		(1,143	)		(441	)
Income before provision for income taxes		28,014			17,836
Provision for income taxes		10,744			6,958
Net Income	$	17,270		$	10,878

	For the six months ended
	June 30,			July 1,
	2007			2006
	(Amounts in thousands)

Net Sales	$	675,969		$	504,422
Costs and Expenses:
Cost of products sold		530,980			392,299
Selling, general and administrative expense		79,294			58,316
Amortization of intangible assets		8,936			5,524
Total Costs and Expenses		619,210			456,139
Operating earnings		56,759			48,283
Foreign currency gain		2,208			1,093
Interest expense		(49,946	)		(32,524	)
Investment income		822			413
Other expense		(1,143	)		(2,497	)
Income before income taxes and
cumulative effect of accounting change		8,700			14,768
Provision for income taxes		2,294			5,720
Income before cumulative effect
of accounting change		6,406			9,048
Cumulative effect of accounting change,
net of income tax benefit of $57		-			(86	)
Net income	$	6,406		$	8,962

	June 30, 2007		December 31, 2006
	(Amounts in thousands)

Senior term loan facility	$	685,346	$	688,533
Senior revolving credit facility		20,000		-
Senior subordinated notes		360,208		360,231
		1,065,554		1,048,764
Less current maturities		6,873		5,870
	$	1,058,681	$	1,042,894