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): May 5, 2016
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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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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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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Exhibit No.
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Description
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99.1
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Press release of PGT, Inc., dated May 5, 2016
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99.2
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Earnings presentation dated May 5, 2016
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Exhibit No.
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Description
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99.1
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Press release of PGT, Inc., dated May 5, 2016
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99.2
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Earnings presentation dated May 5, 2016
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Net sales of $100.2 million, an increase of $4.9 million, or 5 percent;
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Gross margin of 29.9 percent, compared to 32.6 percent;
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Net income of $1.5 million, compared to $6.7 million;
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Net income, as adjusted, of $4.5 million, compared to $7.0 million;
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Net income per diluted share of $0.03, compared to $0.13;
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Adjusted net income per diluted share of $0.09, compared to $0.14;
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EBITDA, as adjusted, of $14.6 million, compared to $16.2 million.
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·
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Changes in new home starts and home remodeling trends
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·
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The economy in the U.S. generally or in Florida where the substantial portion of our sales are generated
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Raw material prices, especially aluminum
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Transportation costs
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Level of indebtedness
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Dependence on our impact-resistant product lines
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Integration of acquisition(s), including WinDoor, Incorporated
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Product liability and warranty claims
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Federal and state regulations, and
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·
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Dependence on our manufacturing facilities
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PGT, INC.
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||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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(unaudited - in thousands, except per share amounts)
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Three Months Ended
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April 2,
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April 4,
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2016
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2015
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Net sales
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$ | 100,206 | $ | 95,301 | ||||
Cost of sales
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70,223 | 64,254 | ||||||
Gross profit
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29,983 | 31,047 | ||||||
Selling, general and administrative expenses
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20,061 | 17,664 | ||||||
Income from operations
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9,922 | 13,383 | ||||||
Interest expense, net
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4,158 | 2,913 | ||||||
Debt extinguishment costs
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3,431 | - | ||||||
Other expenses, net
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- | 99 | ||||||
Income before income taxes
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2,333 | 10,371 | ||||||
Income tax expense
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854 | 3,719 | ||||||
Net income
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$ | 1,479 | $ | 6,652 | ||||
Basic net income per common share
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$ | 0.03 | $ | 0.14 | ||||
Diluted net income per common share
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$ | 0.03 | $ | 0.13 | ||||
Weighted average common shares outstanding:
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Basic
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48,694 | 47,721 | ||||||
Diluted
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50,474 | 50,032 |
PGT, INC.
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CONDENSED CONSOLIDATED BALANCE SHEETS
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(unaudited - in thousands)
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April 2,
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January 2,
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|||||||
2016
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2016
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ASSETS
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Current assets:
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Cash and cash equivalents
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$ | 16,704 | $ | 61,493 | ||||
Accounts receivable, net
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39,660 | 31,783 | ||||||
Inventories
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29,252 | 23,053 | ||||||
Prepaid expenses and other current assets
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11,669 | 10,643 | ||||||
Total current assets
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97,285 | 126,972 | ||||||
Property, plant and equipment, net
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77,903 | 71,503 | ||||||
Intangible assets, net
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125,144 | 79,311 | ||||||
Goodwill
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108,179 | 65,635 | ||||||
Other assets, net
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639 | 607 | ||||||
Total assets
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$ | 409,150 | $ | 344,028 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY
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Current liabilities:
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Accounts payable and accrued expenses
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$ | 24,731 | $ | 19,578 | ||||
Current portion of long-term debt
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2,612 | 1,949 | ||||||
Total current liabilities
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27,343 | 21,527 | ||||||
Long-term debt
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248,362 | 188,818 | ||||||
Deferred income taxes, net
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25,894 | 25,894 | ||||||
Other liabilities
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1,015 | 828 | ||||||
Total liabilities
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302,614 | 237,067 | ||||||
Total shareholders' equity
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106,536 | 106,961 | ||||||
Total liabilities and shareholders' equity
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$ | 409,150 | $ | 344,028 |
PGT, INC.
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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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April 2,
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April 4,
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2016
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2015
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Reconciliation to Adjusted Net Income and
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Adjusted Net Income per share (1):
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Net income
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$ | 1,479 | $ | 6,652 | ||||
Reconciling items:
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Acquisition and refinancing costs (2)
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4,333 | - | ||||||
Product line termination costs (3)
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275 | - | ||||||
New product launch and insulated glass line start-up costs (4)
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- | 565 | ||||||
Tax effect of reconciling items
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(1,626 | ) | (219 | ) | ||||
Adjusted net income
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$ | 4,461 | $ | 6,998 | ||||
Weighted average shares outstanding:
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Diluted
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50,474 | 50,032 | ||||||
Adjusted net income per share - diluted
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$ | 0.09 | $ | 0.14 | ||||
Reconciliation to EBITDA and Adjusted EBITDA:
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Net income
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$ | 1,479 | $ | 6,652 | ||||
Reconciling items:
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Depreciation and amortization expense
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3,452 | 2,368 | ||||||
Interest expense, net
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4,158 | 2,913 | ||||||
Income tax expense
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854 | 3,719 | ||||||
EBITDA
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9,943 | 15,652 | ||||||
Add-backs:
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Acquisition and refinancing costs (2)
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4,333 | - | ||||||
Product line termination costs (3)
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275 | - | ||||||
New product launch and insulated glass line start-up costs (4)
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- | 565 | ||||||
Adjusted EBITDA
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$ | 14,551 | $ | 16,217 | ||||
Adjusted EBITDA as percentage of net sales
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14.5% | 17.0% |
(1) The Company's non-GAAP financial measures were explained in its Form 8-K filed May 5, 2016.
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(2) Represents costs and expenses relating to our February 16, 2016 acquisition of WinDoor, Inc., and simultaneous refinancing of our then existing credit facility into the 2016 Credit Agreement. Of the $4.3 million, $3.4 million represents and is classified as debt extinguishment costs for the three months ended April 2, 2016. The remaining $0.9 million represents transaction- and refinancing-related costs and expenses classified within selling, general and administrative expenses.
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(3) Represents estimated charge relating to the wind-down of our PremierVue product category, classified within selling, general and administrative costs in the three months ended April 2, 2016.
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(4) Costs associated with new product launch and start-up of the insulated glass line, of which $380 thousand is included in cost of goods sold, and $185 thousand is included in selling, general and administrative expenses in the three months ended April 4, 2015.
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