PGT, Inc. (PGTI) Tops Q2 EPS by 10c, Revenues Beat; Offers FY18 EPS/Revenue Mid-Point Outlook Above Consensus

PGT, Inc. (NYSE: PGTI) reported Q2 EPS of $0.41, $0.10 better than the analyst estimate of $0.31. Revenue for the quarter came in at $169 million versus the consensus estimate of $162.68 million.

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

“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

GUIDANCE:

PGT, Inc. sees FY2018 EPS of $0.95-$1.10, versus the consensus of $0.98. PGT, Inc. sees FY2018 revenue of $580-600 million, versus the consensus of $587.66 million.

For earnings history and earnings-related data on PGT, Inc. (PGTI) click here.

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