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): February 20, 2013
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 February 20, 2013.
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§
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Net sales of $45.2 million, an increase of $9.5 million, or 26.6%;
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§
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Gross margin of 35.4%, an increase of 10.3% of sales;
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§
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Net income of $3.2 million compared to a net loss of $6.3 million;
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§
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Net income per diluted share of $0.06 compared to an adjusted net loss per diluted share of $0.07; and
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§
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EBITDA of $6.9 million, compared to $0.6 million in the fourth quarter of 2011, after adjusting 2011 for non-cash impairment charges and gain on equipment sales related to the consolidation.
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§
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Net sales of $174.5 million, an increase of $7.3 million, or 4.3%;
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§
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Gross margin of 34.2%, an increase of 6.4% of sales, after adding back 2011 consolidation charges;
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§
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Net income of $9.0 million compared to a net loss of $16.9 million for the prior year;
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§
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Net income per diluted share of $0.16 compared to an adjusted net loss per diluted share of $0.10; and
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§
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EBITDA of $24.7 million, compared to $12.7 million for 2011, after adjusting 2011 for consolidation charges, related manufacturing inefficiencies, non-cash impairment charges, gain on equipment sales, and the write-off of deferred financing costs.
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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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(in thousands, except per share amounts)
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Three Months Ended
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Year Ended
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December 29,
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December 31,
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December 29,
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December 31,
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|||||||||||||
2012
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2011
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2012
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2011
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(unaudited)
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(unaudited)
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Net sales
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$ | 45,211 | $ | 35,709 | $ | 174,540 | $ | 167,276 | ||||||||
Cost of sales
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29,203 | 26,753 | 114,872 | 128,171 | ||||||||||||
Gross margin
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16,008 | 8,956 | 59,668 | 39,105 | ||||||||||||
Impairment charges
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- | 5,959 | - | 5,959 | ||||||||||||
Selling, general and administrative expenses
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11,888 | 11,627 | 47,094 | 48,619 | ||||||||||||
Income (loss) from operations
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4,120 | (8,630 | ) | 12,574 | (15,473 | ) | ||||||||||
Interest expense
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762 | 881 | 3,437 | 4,168 | ||||||||||||
Other expense (income), net
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182 | (874 | ) | 72 | (419 | ) | ||||||||||
Income (loss) before income taxes
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3,176 | (8,637 | ) | 9,065 | (19,222 | ) | ||||||||||
Income tax (benefit) expense
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(18 | ) | (2,324 | ) | 110 | (2,324 | ) | |||||||||
Net income (loss)
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$ | 3,194 | $ | (6,313 | ) | $ | 8,955 | $ | (16,898 | ) | ||||||
Basic net income (loss) per common share
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$ | 0.06 | $ | (0.12 | ) | $ | 0.17 | $ | (0.31 | ) | ||||||
Diluted net income (loss) per common share
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$ | 0.06 | $ | (0.12 | ) | $ | 0.16 | $ | (0.31 | ) | ||||||
Weighted average common shares outstanding:
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Basic
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53,458 | 53,659 | 53,620 | 53,659 | ||||||||||||
Diluted
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56,764 | 53,659 | 55,262 | 53,659 |
PGT, INC. AND SUBSIDIARY
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CONDENSED CONSOLIDATED BALANCE SHEETS
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(in thousands)
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December 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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$ | 18,743 | $ | 10,940 | ||||
Accounts receivable, net
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13,997 | 13,830 | ||||||
Inventories
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11,529 | 11,602 | ||||||
Asset held for sale
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5,259 | - | ||||||
Other current assets
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3,802 | 3,741 | ||||||
Total current assets
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53,330 | 40,113 | ||||||
Property, plant and equipment, net
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41,220 | 48,606 | ||||||
Other intangible assets, net
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45,327 | 51,830 | ||||||
Other assets, net
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1,440 | 2,286 | ||||||
Total assets
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$ | 141,317 | $ | 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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$ | 13,279 | $ | 12,706 | ||||
Deferred income taxes
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46 | - | ||||||
Current portion of long-term debt and capital lease obligations
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- | 50 | ||||||
Total current liabilities
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13,325 | 12,756 | ||||||
Long-term debt and capital lease obligations
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37,500 | 45,500 | ||||||
Deferred income taxes
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14,858 | 15,041 | ||||||
Other liabilities
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1,424 | 2,176 | ||||||
Total liabilities
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67,107 | 75,473 | ||||||
Total shareholders' equity
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74,210 | 67,362 | ||||||
Total liabilities and shareholders' equity
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$ | 141,317 | $ | 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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Year Ended
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December 29,
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December 31,
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December 29,
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December 31,
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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 (1):
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Net income (loss)
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$ | 3,194 | $ | (6,313 | ) | $ | 8,955 | $ | (16,898 | ) | ||||||
Reconciling item:
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Intangible impairment charges (2)
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- | 5,959 | - | 5,959 | ||||||||||||
Consolidation charges (3)
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- | - | - | 4,106 | ||||||||||||
Gain on equipment sales (4)
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- | (875 | ) | - | (875 | ) | ||||||||||
Manufacturing inefficiencies (5)
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- | - | - | 4,005 | ||||||||||||
Write off deferred financing costs (6)
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- | - | - | 420 | ||||||||||||
Tax effect of reconciling items
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- | (2,324 | ) | - | (2,324 | ) | ||||||||||
Adjusted net income (loss)
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$ | 3,194 | $ | (3,553 | ) | $ | 8,955 | $ | (5,607 | ) | ||||||
Weighted average shares outstanding:
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Diluted (7)
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56,764 | 53,659 | 55,262 | 53,659 | ||||||||||||
Adjusted net income (loss) per share - diluted
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$ | 0.06 | $ | (0.07 | ) | $ | 0.16 | $ | (0.10 | ) | ||||||
Reconciliation to EBITDA and Adjusted EBITDA:
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Net income (loss)
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$ | 3,194 | $ | (6,313 | ) | $ | 8,955 | $ | (16,898 | ) | ||||||
Reconciling items:
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Depreciation and amortization expense
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2,973 | 3,303 | 12,233 | 14,092 | ||||||||||||
Interest expense
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762 | 881 | 3,437 | 4,168 | ||||||||||||
Income tax (benefit) expense
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(18 | ) | (2,324 | ) | 110 | (2,324 | ) | |||||||||
EBITDA
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6,911 | (4,453 | ) | 24,735 | (962 | ) | ||||||||||
Intangible impairment charges (2)
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- | 5,959 | - | 5,959 | ||||||||||||
Consolidation charge (3)
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- | - | - | 4,106 | ||||||||||||
Gain on Equipment Sales (4)
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- | (875 | ) | - | (875 | ) | ||||||||||
Manufacturing inefficiencies (5)
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- | - | - | 4,005 | ||||||||||||
Write off deferred financing costs (6)
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- | - | - | 420 | ||||||||||||
Adjusted EBITDA
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$ | 6,911 | $ | 631 | $ | 24,735 | $ | 12,653 | ||||||||
Adjusted EBITDA as percentage of net sales
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15.3 | % | 1.8 | % | 14.2 | % | 7.6 | % | ||||||||
(1) The Company's non-GAAP financial measures were explained in its Form 8-K filed February 23, 2012.
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(2) The Company completed its annual impairment tests in the fourth quarter of 2011, which resulted in additional impairment charges totaling $6.0 million related to trade names.
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(3) Represents charges and credits related to consolidation actions taken in 2011. These charges relate primarily to employee separation costs and move related expenses. Of the $4.1 million in consolidation charges in the year ended December 31, 2011, $3.4 million is included in cost of goods sold and $0.7 million is included in selling, general and administrative expenses. | ||||||||||||||||
(4) Represents gains related to the sale of equipment previously used in North Carolina operations. These gains are included in other income for the fourth quarter and year ended December 31, 2011. | ||||||||||||||||
(5) 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 manufacturing results with normalized pre-consolidation results. These charges are included in cost of goods sold for the year ended December 31, 2011.
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(6) Represents the write off of the remaining unamortized fees associated with our previous financing agreement. These charges are included in other expense for the year ended December 31, 2011.
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(7) Due to the net losses in the fourth quarter and fiscal year 2011, the effect of equity compensation plans for these periods is anti-dilutive.
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