PGT, Inc. (PGTI) Tops Q4 EPS by 1c, Revenues Beat; Offer FY19 EPS/Revenue Guidance Below Consensus

PGT, Inc. (NYSE: PGTI) reported Q4 EPS of $0.21, $0.01 better than the analyst estimate of $0.20. Revenue for the quarter came in at $190 million versus the consensus estimate of $173.89 million.

• Net sales of $190 million, an increase of $56 million, or 42 percent
• Gross margin of 34.6 percent, compared to 32.0 percent
• Net income of $10.5 million, compared to $20.3 million (2017 includes $12.4 million tax benefit relating to Tax Cuts and Jobs Act)
• Adjusted net income of $12.4 million, compared to $9.4 million
• Net income per diluted share of $0.18, compared to $0.39
• Adjusted net income per diluted share of $0.21, compared to $0.18

“We executed on a series of transactions in 2018, finishing a transformational year with a strong balance sheet and poised for continued growth,” stated Jeff Jackson, President and CEO of PGT Innovations. “The acquisition of Western Window Systems positions us as a national leader in the premium window and door market. We financed the acquisition by successfully entering the bond markets, achieving an attractive rate, and subsequently executing an equity offering, allowing us to quickly de-lever.”

“PGT Innovations finished the year by delivering another strong quarter with net sales of $190 million, an increase of 42 percent, compared to the prior-year quarter, driven by the inclusion of $31 million of sales from Western Window Systems. We also saw continuing growth in our legacy businesses’ Repair & Remodel and New Construction channels, for which sales grew by 18 and 19 percent, respectively,” continued Jackson.

“For the full year 2018, PGT Innovations increased sales by 37 percent to $698 million. Adjusted EBITDA rose 48 percent, to $127 million for 2018, and 2018 adjusted EPS rose to $1.18 from $0.61, an increase of 93 percent,” stated Brad West, Senior Vice President and CFO. “Additionally, we finished 2018 with a strong balance sheet, which we believe provides flexibility for future operational and strategic initiatives,” continued West.

“I am incredibly proud of PGT Innovations\' accomplishments in addition to the strategic transactions in 2018. We achieved organic growth of 27 percent, which was made possible by operational execution as well as several product and facility relocations including opening our new CGI facility in Hialeah, Florida,” said Jackson.

“In addition, our employees provided extensive assistance with relief efforts for both Hurricanes Florence and Michael. I am thankful for our team’s efforts in 2018 and excited about the future of PGT Innovations,” concluded Jackson.

“Looking ahead into 2019, we anticipate a more normalized growth in sales following our transformational year in 2018,” added West. “While recent national trends in housing have softened, we continue to believe that our legacy impact-resistant products and our Western Window Systems products that unify indoor/outdoor living spaces will continue to gain market share and that many of our core markets, including Florida, should continue to enjoy a growing economy.”

GUIDANCE:

PGT, Inc. sees FY2019 EPS of $0.93-$1.05, versus the consensus of $1.29. PGT, Inc. sees FY2019 revenue of $775-800 million, versus the consensus of $810.64 million.

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

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• Algorhythm Holdings (RIME) Tops Q2 EPS by 54c
• Evogene chairman to address dissident shareholders on results call