CURRENT REPORT
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Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934
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Date of Report (date of earliest event reported): October 31, 2012
PGT, Inc.
(Exact Name of Registrant as Specified in its Charter)
Delaware
(State or Other Jurisdiction of Incorporation)
000-52059 20-0634715
(Commission File Number) (IRS Employer Identification No.)
1070 Technology Drive, North Venice, Florida 34275
(Address of Principal Executive Offices, Including Zip Code)
(941) 480-1600
(Registrant's Telephone Number, Including Area Code)
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[ ]
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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[ ]
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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[ ]
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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[ ]
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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ITEM 9.01.
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FINANCIAL STATEMENTS AND EXHIBITS
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(d)
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Exhibits
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·
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Changes in new home starts and home remodeling trends
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·
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The economy in the U.S. generally or in Florida where the substantial portion of our sales are generated
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·
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Raw material prices, especially aluminum
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·
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Transportation costs
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·
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Level of indebtedness
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·
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Dependence on our WinGuard branded product lines
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·
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Product liability and warranty claims
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·
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Federal and state regulations
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·
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Dependence on our manufacturing facilities
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·
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The controlling interest of JLL Partners Fund IV, L.P.
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Exhibit No.
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Description
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99
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Press release of PGT, Inc., dated October 31, 2012.
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§
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Net sales of $44.7 million, a decrease of $1.0 million, or 2.2%, compared to the third quarter of 2011;
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§
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Gross margin of 34.1%, an increase from the third quarter of 2011 gross margin of 28.2% (which, after adding back consolidation charges would have been 29.8% in 2011);
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§
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Net income of $2.7 million compared to a net income of $0.2 million in the third quarter of 2011. The 2011 third quarter included consolidation charges totaling $0.1 million and additional expenses relating to manufacturing inefficiencies caused by the consolidation totaling $0.6 million;
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§
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Net income per diluted share of $0.05 compared to a net income per diluted share of $0.00 in the third quarter of 2011; and
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§
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EBITDA of $6.7 million, compared to $5.1 million in the third quarter of 2011. The 2011 EBITDA would have been $5.9 million, after adding back consolidation charges and related manufacturing inefficiencies (please see the table entitled "Reconciliation of Non-GAAP financial measures to their GAAP equivalents").
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§
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Net sales of $129.3 million, a decrease of $2.2 million, or 1.7%, compared to the first nine months of 2011;
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§
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Gross margin of 33.8%, an increase from the first nine months of 2011 gross margin of 22.9% (which, after adding back consolidation charges would have been 28.5% in 2011);
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§
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Net income of $5.8 million compared to a net loss of $10.6 million for the first nine months of the prior year. 2011 results included consolidation charges totaling $4.1 million and additional expenses relating to manufacturing inefficiencies caused by the consolidation totaling $4.0 million;
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§
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Net income per diluted share of $0.11 compared to a net loss per diluted share of $0.20 for the first nine months of 2011; and
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§
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EBITDA of $17.8 million, compared to $3.5 million for the first nine months of 2011. The 2011 EBITDA would have been $12.0 million, after adding back consolidation charges and related manufacturing inefficiencies (please see the table entitled "Reconciliation of Non-GAAP financial measures to their GAAP equivalents").
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·
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Changes in new home starts and home remodeling trends
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·
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The economy in the U.S. generally or in Florida where the substantial portion of our sales are generated
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·
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Raw material prices, especially aluminum
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·
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Transportation costs
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·
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Level of indebtedness
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·
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Dependence on our WinGuard branded product lines
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·
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Product liability and warranty claims
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·
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Federal and state regulations
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·
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Dependence on our manufacturing facilities
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·
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The controlling interest of JLL Partners Fund IV, L.P.
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PGT, INC. AND SUBSIDIARY
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||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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||||||||||||||||
(unaudited - in thousands, except per share amounts)
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||||||||||||||||
Three Months Ended
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Nine Months Ended
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|||||||||||||||
September 29,
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October 1,
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September 29,
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October 1,
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|||||||||||||
2012
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2011
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2012
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2011
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|||||||||||||
Net sales
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$ | 44,743 | $ | 45,751 | $ | 129,329 | $ | 131,567 | ||||||||
Cost of sales
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29,501 | 32,836 | 85,670 | 101,418 | ||||||||||||
Gross margin
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15,242 | 12,915 | 43,659 | 30,149 | ||||||||||||
Selling, general and administrative expenses
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11,592 | 11,524 | 35,206 | 36,992 | ||||||||||||
Income (loss) from operations
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3,650 | 1,391 | 8,453 | (6,843 | ) | |||||||||||
Interest expense
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878 | 1,114 | 2,675 | 3,287 | ||||||||||||
Other (income) expense
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(10 | ) | 36 | (110 | ) | 455 | ||||||||||
Income (loss) before income taxes
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2,782 | 241 | 5,888 | (10,585 | ) | |||||||||||
Income tax expense
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60 | - | 128 | - | ||||||||||||
Net income (loss)
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$ | 2,722 | $ | 241 | $ | 5,760 | $ | (10,585 | ) | |||||||
Basic net income (loss) per common share
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$ | 0.05 | $ | 0.00 | $ | 0.11 | $ | (0.20 | ) | |||||||
Diluted net income (loss) per common share
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$ | 0.05 | $ | 0.00 | $ | 0.11 | $ | (0.20 | ) | |||||||
Weighted average common shares outstanding:
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||||||||||||||||
Basic
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53,686 | 53,659 | 53,674 | 53,658 | ||||||||||||
Diluted
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56,054 | 53,962 | 54,475 | 53,658 |
PGT, INC. AND SUBSIDIARY
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||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
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||||||||
(in thousands)
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||||||||
September 29,
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December 31,
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|||||||
2012
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2011
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|||||||
ASSETS
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(unaudited)
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|||||||
Current assets:
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Cash and cash equivalents
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$ | 19,672 | $ | 10,940 | ||||
Accounts receivable, net
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16,439 | 13,830 | ||||||
Inventories
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11,686 | 11,602 | ||||||
Prepaid expenses
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963 | 871 | ||||||
Asset held for sale
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5,259 | - | ||||||
Other current assets
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3,099 | 2,871 | ||||||
Total current assets
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57,118 | 40,114 | ||||||
Property, plant and equipment, net
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41,945 | 48,606 | ||||||
Other intangible assets, net
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46,953 | 51,830 | ||||||
Other assets, net
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1,518 | 2,285 | ||||||
Total assets
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$ | 147,534 | $ | 142,835 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY
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||||||||
Current liabilities:
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||||||||
Accounts payable and accrued expenses
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$ | 15,822 | $ | 12,706 | ||||
Current portion of long-term debt and capital lease obligations
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- | 50 | ||||||
Total current liabilities
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15,822 | 12,756 | ||||||
Long-term debt
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40,500 | 45,500 | ||||||
Deferred income taxes
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15,041 | 15,041 | ||||||
Other liabilities
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1,581 | 2,176 | ||||||
Total liabilities
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72,944 | 75,473 | ||||||
Total shareholders' equity
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74,590 | 67,362 | ||||||
Total liabilities and shareholders' equity
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$ | 147,534 | $ | 142,835 |
PGT, INC. AND SUBSIDIARY
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||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO THEIR GAAP EQUIVALENTS
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||||||||
(unaudited - in thousands, except per share amounts)
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||||||||
Three Months Ended
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Nine Months Ended
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September 29,
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October 1,
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September 29,
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October 1,
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|||||
2012
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2011
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2012
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2011
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Reconciliation to Adjusted Net Income/(Loss) and Adjusted Net Income/(Loss) per share:
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Net income/(loss)
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$2,722
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$241
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$ |
5,760
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$(10,585)
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Reconciling item:
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Consolidation (1)
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-
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107
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-
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4,106
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Manufacturing inefficiencies (2)
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-
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634
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-
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4,005
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Write off deferred financing costs (3)
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-
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-
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-
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420
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Tax effect of reconciling items
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-
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-
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-
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-
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Adjusted net income/(loss)
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$2,722
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$982
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$ |
5,760
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$(2,054)
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Weighted average shares outstanding:
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Basic
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53,686
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53,659
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53,674
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53,658
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Diluted (4)
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56,054
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53,962
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54,475
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53,658
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Adjusted net income/(loss) per share - basic
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$0.05
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$0.02
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$ |
0.11
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$(0.04)
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Adjusted net income/(loss) per share - diluted
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$0.05
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$0.02
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$ |
0.11
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$(0.04)
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Reconciliation to EBITDA and Adjusted EBITDA:
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||||||||
Net income/(loss)
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$2,722
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$241
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$ |
5,760
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$(10,585)
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Reconciling items:
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||||||||
Depreciation and amortization expense
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3,034
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3,764
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9,261
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10,788
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Interest expense
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878
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1,114
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2,675
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3,287
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Income tax expense
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60
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-
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128
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-
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EBITDA
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6,694
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5,119
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17,824
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3,490
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Add:
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||||||||
Consolidation (1)
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-
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107
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-
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4,106
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Manufacturing inefficiencies (2)
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-
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634
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-
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4,005
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Write off deferred financing costs (3)
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-
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-
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-
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420
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Adjusted EBITDA
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$6,694
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$5,860
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$ |
17,824
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$12,021
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Adjusted EBITDA as percentage of net sales
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15.0%
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12.8%
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13.8%
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9.1%
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(1) Represents charges related to consolidation actions taken in 2011. These charges relate primarily to employee separation costs and move related expenses. The $0.1 million in consolidation charges in the three months ended October 1, 2011, is included in cost of goods sold. Of the $4.1 million in consolidation charges in the nine months ended October 1, 2011, $3.4 million is included in cost of goods sold and $0.7 million is included in selling, general and administrative expenses.
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(2) Represents temporary excess labor and scrap expense incurred as a result of the consolidation actions taken in 2011. The amounts were determined by comparing the July and August manufacturing results with normalized pre-consolidation quarter results. These charges are included in cost of goods sold for the three and nine months ended October 1, 2011.
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(3) Represents the write off of the remaining unamortized fees associated with our previous financing agreement. These charges are included in other expense for the nine months ended October 1, 2011.
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(4) Due to the actual net losses in the first nine months of 2011, the effect of equity compensation plans is anti-dilutive.
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