PGT, Inc. (PGTI) Tops Q3 EPS by 11c, Revenues Beat; Raises FY18 EPS/Revenue Outlooks Above Consensus

PGT, Inc. (NYSE: PGTI) reported Q3 EPS of $0.38, $0.11 better than the analyst estimate of $0.27. Revenue for the quarter came in at $199 million versus the consensus estimate of $163.61 million.

• Net sales of $199 million, an increase of $72 million, or 57 percent
• Gross margin of 36.7 percent, compared to 31.3 percent
• Net income of $13.6 million, compared to $6.3 million
• Adjusted net income of $20.1 million, compared to $8.1 million
• Net income per diluted share of $0.26, compared to $0.12
• Adjusted net income per diluted share of $0.38, compared to $0.16

“The third quarter was the start of an exciting new chapter for PGT Innovations. We completed our first major out-of-state acquisition, Western Windows Systems, positioning PGTI as a national leader in the premium window and door space. Also, to finance the acquisition, we successfully entered the bond market for the first time, achieving access to capital at an attractive fixed rate. Following the acquisition, we successfully executed an equity offering which allowed us to more quickly de-lever our balance sheet following the acquisition, providing us with more flexibility for other operational and strategic initiatives in the future. We believe our execution of these transactions in the third quarter has put PGT Innovations in a strong position, and well-poised for continued growth,” stated Jeff Jackson, President and Chief Executive Officer of PGT Innovations.

“PGT Innovations delivered another strong quarter with net sales of $199 million, up $72 million, or 57 percent, driven by continued growth in our repair and remodel sector and inclusion of the post-acquisition sales of Western Windows Systems, which were $18.7 million,” continued Jackson. “Organically, sales increased 42 percent, driven by continued strong demand for our flagship WinGuard impact-resistant products.”

“Consistent with the second quarter of 2018, we achieved meaningful gross margin improvement versus prior year. The gross margin improvement of 5.4 percentage-points, as compared to the third quarter of 2017, is the result of our ability to leverage fixed costs, generate manufacturing and operating efficiencies, and implement price increases to offset cost inflation. The improvement was also due to gross margin accretion from the Western Windows Systems acquisition. Additionally, for the second straight quarter, we achieved at least a 20 percent-of-sales adjusted EBITDA,” continued Jackson.

GUIDANCE:

PGT, Inc. sees FY2018 EPS of $1.13-$1.19, versus the consensus of $1.09. PGT, Inc. sees FY2018 revenue of $675-685 million, versus the consensus of $643.8 million.

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

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