PGT, Inc. (PGTI) Tops Q4 EPS by 1c, Revenues Beat; Offers FY20 Revenue Guidance Above Consensus, Affirms FY20 EPS Views

PGT, Inc. (NYSE: PGTI) reported Q4 EPS of $0.10, $0.01 better than the analyst estimate of $0.09. Revenue for the quarter came in at $175 million versus the consensus estimate of $165.47 million.

Financial Highlights for 2019 Compared to 2018

• Fourth quarter 2019 net sales were $175 million, compared to $190 million; Full year 2019 net sales were $745 million, compared to $698 million, including a net increase of $89 million from Western Window Systems
• Fourth quarter 2019 net income was $3 million, compared to $10 million; Fourth quarter 2019 adjusted net income was $6 million, compared to $12 million
• Fourth quarter 2019 net income per diluted share was $0.06, compared to $0.18; Fourth quarter 2019 adjusted net income per diluted share was $0.10, compared to $0.21
• Fourth quarter 2019 Adjusted EBITDA was $24 million, compared to $32 million; Full year 2019 Adjusted EBITDA was $128 million, compared to $127 million

“Sales in the quarter were down by 8 percent compared to the prior-year quarter, in which we experienced record-setting growth, partially driven by the demand and overall consumer brand awareness generated by two major hurricanes.” said Jeff Jackson, President and Chief Executive Officer. “We are focused on driving growth and delivered better-than-expected sales in the fourth quarter of 2019 across our legacy repair and remodel business. We are seeing strong new order entries for our legacy business in the first quarter of 2020 compared to the prior-year quarter and expect this positive momentum to continue in 2020.”

“Completion of the acquisition of NewSouth Window Solutions was another step toward fulfilling our strategy to become a national leader of premium windows and doors,” said Jackson. “Last year we completed the acquisition of Western Window Systems, which extended our footprint to include growing markets outside of Florida. NewSouth further increases our diversification by adding a direct-to-consumer distribution channel. We will continue to pursue our strategy that we believe will drive long-term organic growth and expand our sales through the addition of incremental channels.”

“In our Western business unit, sales increased 8 percent compared to the prior-year quarter, reflecting continued expansion in its core and emerging markets,” added Jackson.

“We ended the year with a cash balance of $97 million and a trailing-twelve-month net debt-to-adjusted EBITDA ratio of 2.2 times,” said Sherri Baker, Senior Vice President and Chief Financial Officer of PGT Innovations. “Consistent with our priority of maintaining a strong and flexible balance sheet, we anticipate that reducing leverage after acquisitions will remain a capital allocation priority.”

“Today we are announcing full-year guidance for 2020, including net sales in the range of $850 million to $880 million, adjusted EBITDA in the range of $145 million to $155 million, and EPS in the range of $0.86 to $0.99. These estimates include the expected contribution from NewSouth Window Solutions. We remain focused on driving sales outside of our core markets and expanding our product portfolio in addition to continuing our execution on controlling costs,” concluded Baker.

GUIDANCE:

PGT, Inc. sees FY2020 EPS of $0.86-$0.99, versus the consensus of $0.92. PGT, Inc. sees FY2020 revenue of $850-880 million, versus the consensus of $762.64 million.

• Net sales of $850 million to $880 million
• Adjusted EBITDA of $145 million to $155 million
• Net income per diluted share of $0.86 to $0.99

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

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