Form 8-K PLY GEM HOLDINGS INC For: Aug 08
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of report (Date of earliest event reported) August 8, 2016
PLY GEM HOLDINGS, INC.
(Exact Name of Registrant as Specified in Its Charter)
Delaware | 001-35930 | 20-0645710 |
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
5020 WESTON PARKWAY, SUITE 400 CARY, NORTH CAROLINA | 27513 |
(Address of principal executive offices) | (Zip Code) |
(919) 677-3900
(Registrant’s Telephone Number, Including Area Code)
NOT APPLICABLE
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17CFR 240.13e-4(c))
FORWARD-LOOKING INFORMATION
Certain statements made in this Form 8-K, including any statements as to future results of operations and financial projections, may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are based on management's expectations, estimates, projections and assumptions. These statements are not guarantees of future performance and involve certain risks and uncertainties which are difficult to predict. Therefore, actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors. Additional information regarding these factors is contained in Ply Gem Holdings, Inc.'s filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K.
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On August 8, 2016, Ply Gem Holdings, Inc. (the "Company") reported its results of operations for its fiscal quarter ended July 2, 2016. A copy of the press release issued by the Company concerning the foregoing results is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
The information under Item 2.02 of this Form 8-K and the accompanying exhibit are being furnished under Item 2.02 and shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act"), or otherwise subject to the liability of such section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, regardless of the general incorporation language of such filing, except as shall be expressly set forth by specific reference in such filing.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
99.1 Press Release, dated August 8, 2016
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report on Form 8-K to be signed on its behalf by the undersigned, thereunto duly authorized.
Dated: August 8, 2016
PLY GEM HOLDINGS, INC. | |
By: /s/ Shawn K. Poe | |
Name: Shawn K. Poe | |
Title: Executive Vice President, Chief Financial Officer, and Secretary | |
EXHIBIT LIST
Exhibit | Description |
99.1 | Press Release, dated August 8, 2016. |
Ply Gem Reports Second Quarter 2016 Results
•Net income increased 37.1% to $41.6 million for the second quarter.
• | Adjusted EBITDA increased to $76.9 million or 23.0% for the second quarter achieving a record LTM Adjusted EBITDA of $221.4 million. |
Cary, NC (BUSINESS WIRE) August 8, 2016 - Ply Gem Holdings, Inc. (“Ply Gem” or the “Company”) (NYSE: PGEM), a leading manufacturer of exterior building products in North America, today announced financial results for the quarter ended July 2, 2016.
Second Quarter 2016 Results:
• | Total net sales for the second quarter increased 1.6% to $510.5 million. |
• | Operating earnings improved $16.5 million to $62.2 million compared to the second quarter of 2015. |
• | Basic and diluted earnings per share was $0.61 for the second quarter of 2016 compared to $0.45 for the second quarter of 2015. |
• | Adjusted basic earnings per share was $0.62 for the second quarter of 2016 compared to $0.45 for the second quarter of 2015. |
• | Leverage ratio improved to 4.4x. |
Six Month 2016 Results:
• | Total net sales for the six months ended increased 4.6% to $919.2 million. |
• | Operating earnings improved $40.1 million or 127.0% from the comparable 2015 period. |
• | Net income increased to $14.1 million for the six month 2016 period from a net loss of $18.5 million for the 2015 period. |
• | Adjusted EBITDA increased to $101.7 million or 56.8%. |
• | Basic and diluted earnings per share was $0.21 for the 2016 six month period compared to $(0.27) for the 2015 six month period. |
• | Adjusted earnings per share was $0.41 for the 2016 six month period compared to $(0.08) for the 2015 six month period. |
“I am very pleased by the continued strength in our operating and cash generating performance that was achieved during the second quarter. Both businesses continued to make substantial contributions to adjusted EBITDA and allowed us to deliver the ninth consecutive quarterly year-over-year growth of adjusted EBITDA,” said Gary E. Robinette, Ply Gem’s Chairman and CEO. “As expected, our overall sales were somewhat dampened due to the pull forward effect of favorable winter weather within our key market footprint during the first quarter. However, the fundamental demand drivers of our end markets remain robust as the U.S. housing market continues to recover. During the second quarter, our teams delivered outstanding profitable growth through improved product pricing, operating performance initiatives and maintaining our cost discipline. As a result, Ply Gem achieved a trailing twelve month annual adjusted EBITDA in excess of $221 million.”
Commenting on the Company’s results, Shawn K. Poe, Ply Gem’s Chief Financial Officer added, “In the second quarter, we continued to drive financial improvements and profitability within our business segments. We achieved a 170 basis point improvement in our gross profit margin and realized the highest overall quarterly gross profit margin by Ply Gem. As a result of our strong operational performance and profitability during the second quarter of 2016, we have strengthened our balance sheet by generating in excess of $160 million in operating cash flow and achieved a Company record $221.4 million of adjusted EBITDA on a trailing twelve month basis. We continue to focus on our debt leverage and on August 4, 2016 made a second $30 million voluntary payment on our long-term debt under our Term Loan which when combined with our March 10th payment, means we have made a $60 million voluntary reduction in our long-term debt since year-end. The strength of our operating performance, cash flow generation and meaningful debt reduction have allowed us to improve our leverage ratio 0.8 times since year end, including a 0.5 times improvement in the second quarter alone to a net leverage of 4.4 times.”
Second Quarter 2016 Financial Results
Net sales increased $8.2 million or 1.6% to $510.5 million compared to $502.3 million for the second quarter of 2015. Our acquisition of Canyon Stone, which was completed during the second quarter of 2015, drove a net sales increase of $5.2 million during the quarter ended July 2, 2016 relative to the quarter ended July 4, 2015. The remaining net sales increase resulted primarily from improved U.S. market conditions favorably impacting both our new construction business as well as our repair and remodeling business partially offset by our Canadian businesses which, due to declining energy prices experienced a net sales decrease of 25.0% during the second quarter.
Gross profit margin was 26.5% which represented an increase of 170 basis points from the second quarter of 2015. The increase in gross profit margin can be attributed to the continued improvement in our new construction and repair and remodeling businesses and favorable material cost pricing partially offset by our Canadian operations due to the depressed market conditions for Western Canada.
Operating earnings were $62.2 million, an improvement of $16.5 million from the second quarter of 2015 from improved gross profit margins and lower SG&A expense as a percentage of net sales.
Net income was $41.6 million compared to $30.4 million for the second quarter of 2015. Adjusted EBITDA was $76.9 million compared to $62.6 million in the second quarter of 2015. Our EPS was $0.61 as compared to $0.45 for the comparable period in 2015,and adjusted EPS for the second quarter of 2016 was $0.62 as compared to $0.45 for the comparable period in 2015. A reconciliation of non-GAAP (adjusted) financial measures to comparable GAAP financial measures is provided as notes to this release.
Siding, Fencing and Stone
Siding, Fencing and Stone's net sales totaled $244.4 million, up $5.8 million, or 2.4%, compared to $238.6 million in the second quarter of 2015. The 2.4% net sales increase was driven by a $9.5 million net sales increase or 4.6% in the U.S. market due to market demand and new business wins, partially offset by a net sales decrease of $3.7 million or 10.8% in Canada. Gross profit margin for the quarter ended July 2, 2016 was 31.8%, an increase of 220 basis points from the 29.6% for the quarter ended July 4, 2015. The margin improvement resulted from the 2.4% net sales increase and included approximately $1.6 million of gross profit from our Canyon Stone acquisition, which was completed on May 29, 2015.
Windows and Doors
Windows and Doors' net sales totaled $266.1 million, up $2.4 million, or 0.9%, compared to $263.8 million in the second quarter of 2015. The net sales increase for the quarter ended July 2, 2016 can be attributed to the improved U.S. market conditions favorably impacting both our new construction business as well as our repair and remodeling business. Gross profit margin was 21.6% for the quarter ended July 2, 2016, increasing from 20.5% for the quarter ended July 4, 2015. Our gross profit increase of 110 basis points can be attributed to the continued improvement in our new construction and repair and remodeling businesses partially offset by our Canadian operations which experienced a 190 basis point decrease during the second quarter of 2016 as compared to the second quarter of 2015.
Outlook
“As we enter into the seasonally important third quarter, we look forward to capitalizing on the momentum we’ve built during the first half of 2016,” said Mr. Robinette. “As the housing market in the U.S. continues to recover, we are well positioned to drive profitable growth and generate meaningful operating leverage, earnings and cash flow. In addition, we remain committed to driving shareholder value and continuing to improve our balance sheet. In looking to the third quarter of 2016, we expect our quarterly adjusted EBITDA to be in the range of $80 to $85 million, which represents another meaningful year-over-year improvement to our adjusted EBITDA.”
Webcast
Ply Gem management will host a webcast today, Monday, August 8, 2016 at 10:00 a.m. Eastern to discuss second quarter results. To access the webcast, visit www.plygem.com and click on Investor Relations. The webcast link will be available under “Upcoming Events” as well as "Events & Presentations". If internet access is not available, please dial 877-201-0168, participant passcode 45505284. International participants, please dial 647-788-4901, participant passcode 45505284. A replay of the call will be available on our website through September 8th.
About Ply Gem
Ply Gem is a leading manufacturer of exterior building products in North America. Ply Gem produces a comprehensive product line of windows and patio doors, vinyl and aluminum siding and accessories, designer accents, cellular PVC trim and mouldings, vinyl fencing and railing, stone veneer, engineered slate and shake roofing and gutterware, used in both new construction and home repair and remodeling in the United States and Canada. Ply Gem siding brands include Mastic Home Exteriors®, Variform®, NAPCO®, Mitten®, Cellwood®, Georgia-Pacific Vinyl Siding and Accessories, Durabuilt®, Ply Gem® Stone, Canyon Stone, Ply Gem® Trim and Mouldings, Ply Gem® Fence and Railing, Ply Gem® Shutters and Accents, Leaf Relief®, Leaf Logic®, and Monticello® Columns. Ply Gem windows and patio door brands include Ply Gem® Windows, Simonton® Windows, Mastic® Replacement Windows, Ply Gem® Canada, and Great Lakes® Window. The Company’s brands are sold through short-line and two-step distributors, pro dealers, home improvement dealers and big box retailers. Additionally, Ply Gem distributes a wide-variety of exterior building products including stone veneer, fencing, railing, windows, doors and architectural accents via export globally and offers installation services in western Canada under the Gienow® Renovations by Ply Gem brand. Ply Gem employs approximately 9,000 associates across North America. Visit www.plygem.com for more information.
Note: As used herein, the term “Ply Gem” refers to Ply Gem Holdings, Inc. and all its subsidiaries, including Ply Gem Industries, Inc., unless the context indicates otherwise. This term is used for convenience only and is not intended as a precise description of any of the separate corporations.
Forward-Looking Statements
This press release and oral statements made from time to time by our representatives may contain certain statements that are not historical facts, including information concerning possible or assumed future results of our operations. Those statements constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that could cause our actual results to differ materially from the results expressed in or implied by our forward-looking statements, including the availability and cost of raw materials and purchased components, the level of construction and remodeling activity, changes in general economic and business conditions, conditions affecting the industries we serve and our customers, the rate of sales growth, availability of labor force and efficiencies, product liability claims, our high degree of leverage and other factors discussed in our news releases, public statements and/or filings with the Securities and Exchange Commission, including our most recent Annual and Quarterly Reports on Form 10-K and Form 10-Q. Many of these factors are outside of our control and all of these factors are difficult or impossible to predict accurately. We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
###
PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the three months ended | ||||||||
(Amounts in thousands, except share and per share data) | July 2, 2016 | July 4, 2015 | ||||||
Net sales | $ | 510,545 | $ | 502,334 | ||||
Cost of products sold | 375,256 | 377,591 | ||||||
Gross profit | 135,289 | 124,743 | ||||||
Operating expenses: | ||||||||
Selling, general and administrative expenses | 66,648 | 72,796 | ||||||
Amortization of intangible assets | 6,459 | 6,283 | ||||||
Total operating expenses | 73,107 | 79,079 | ||||||
Operating earnings | 62,182 | 45,664 | ||||||
Foreign currency gain (loss) | 255 | (98 | ) | |||||
Interest expense | (18,534 | ) | (18,699 | ) | ||||
Interest income | 9 | 17 | ||||||
Tax receivable agreement liability adjustment | (241 | ) | 2,006 | |||||
Income before provision (benefit) for income taxes | 43,671 | 28,890 | ||||||
Provision (benefit) for income taxes | 2,025 | (1,482 | ) | |||||
Net income | $ | 41,646 | $ | 30,372 | ||||
Net income attributable to common shareholders per share: | ||||||||
Basic | $ | 0.61 | $ | 0.45 | ||||
Diluted | $ | 0.61 | $ | 0.45 | ||||
Weighted average shares outstanding: | ||||||||
Basic | 68,159,907 | 67,946,895 | ||||||
Diluted | 68,370,548 | 68,056,591 | ||||||
For the six months ended | ||||||||
(Amounts in thousands, except share and per share data) | July 2, 2016 | July 4, 2015 | ||||||
Net sales | $ | 919,159 | $ | 878,382 | ||||
Cost of products sold | 697,169 | 693,358 | ||||||
Gross profit | 221,990 | 185,024 | ||||||
Operating expenses: | ||||||||
Selling, general and administrative expenses | 137,383 | 140,928 | ||||||
Amortization of intangible assets | 12,849 | 12,482 | ||||||
Total operating expenses | 150,232 | 153,410 | ||||||
Operating earnings | 71,758 | 31,614 | ||||||
Foreign currency gain (loss) | 839 | (1,032 | ) | |||||
Interest expense | (37,226 | ) | (37,792 | ) | ||||
Interest income | 19 | 26 | ||||||
Loss on modification or extinguishment of debt | (2,399 | ) | — | |||||
Tax receivable agreement liability adjustment | (18,391 | ) | (15,179 | ) | ||||
Income (loss) before provision (benefit) for income taxes | 14,600 | (22,363 | ) | |||||
Provision (benefit) for income taxes | 531 | (3,876 | ) | |||||
Net income (loss) | $ | 14,069 | $ | (18,487 | ) | |||
Net income (loss) attributable to common shareholders per share: | ||||||||
Basic | $ | 0.21 | $ | (0.27 | ) | |||
Diluted | $ | 0.21 | $ | (0.27 | ) | |||
Weighted average shares outstanding: | ||||||||
Basic | 68,143,523 | 67,935,114 | ||||||
Diluted | 68,219,762 | 67,935,114 | ||||||
The accompanying notes are an integral part of these unaudited condensed consolidated statements of operations.
1. The accompanying unaudited condensed consolidated statements of operations of Ply Gem Holdings, Inc. (the “Company”) do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.
The selected balance sheet data for the periods presented in Note 5 has been derived from the December 31, 2015 audited consolidated financial statements of the Company and the unaudited condensed consolidated financial statements of the Company as of July 2, 2016, and does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.
The Company’s fiscal quarters are based on periods ending on the Saturday of the last week in the quarter. Therefore the financial results of certain fiscal quarters will not be exactly comparable to the prior and subsequent fiscal quarters.
2. We define adjusted EBITDA as net income (loss) plus interest expense (net of interest income), provision (benefit) for income taxes, depreciation and amortization, non-cash foreign currency gain/(loss), non-cash loss (gain) on modification or extinguishment of debt, restructuring and integration expenses, acquisition costs, customer inventory buybacks, and tax receivable liability adjustments. Other companies may define adjusted EBITDA differently and, as a result, our measure of adjusted EBITDA may not be directly comparable to adjusted EBITDA of other companies. Management believes that the presentation of adjusted EBITDA included in this press release provides useful information to investors regarding our results of operations because it assists both investors and management in analyzing and benchmarking the performance and value of our business. The Company has included adjusted EBITDA because it is a key financial measure used by management to (i) internally measure our operating performance and (ii) determine our incentive compensation programs. In addition, the Company's senior secured asset-based revolving credit facility has certain covenants that apply ratios utilizing this measure of adjusted EBITDA.
Adjusted EPS represents basic and diluted net loss per share attributed to common shareholders adjusted to exclude the estimated per share impact of the specifically identified items used to calculate adjusted EBITDA described above, adjusted at the statutory tax rate of 35%.
Although we use adjusted EBITDA and adjusted EPS as financial measures to assess the performance of our business, the use of adjusted EBITDA and adjusted EPS is limited because it does not include certain material costs, such as interest and taxes, necessary to operate our business. Adjusted EBITDA and adjusted EPS included in this press release should be considered in addition to, and not as a substitute for, net earnings and earnings per share in accordance with GAAP as a performance measure. You are cautioned not to place undue reliance on adjusted EBITDA or adjusted EPS.
Certain amounts in this release have been subject to rounding adjustments. Accordingly, amounts shown as totals may not be the arithmetic aggregation of the individual amounts that comprise or precede them.
Ply Gem Holdings, Inc. | ||||||||
(Amounts in thousands) | For the three months ended | |||||||
July 2, 2016 | July 4, 2015 | |||||||
Net income | $ | 41,646 | $ | 30,372 | ||||
Interest expense, net | 18,525 | 18,682 | ||||||
Provision (benefit) for income taxes | 2,025 | (1,482 | ) | |||||
Depreciation and amortization | 14,313 | 14,576 | ||||||
EBITDA | 76,509 | 62,148 | ||||||
Non cash gain (loss) on foreign currency transactions | (255 | ) | 98 | |||||
Acquisition costs | — | 339 | ||||||
Customer inventory buybacks | 596 | 80 | ||||||
Restructuring/integration expense | (156 | ) | 1,857 | |||||
Non cash charge of purchase price allocated to inventories | — | 54 | ||||||
Tax receivable agreement liability adjustment | 241 | (2,006 | ) | |||||
Adjusted EBITDA | $ | 76,935 | $ | 62,570 | ||||
Ply Gem Holdings, Inc. | ||||||||
For the three months ended | ||||||||
July 2, 2016 | July 4, 2015 | |||||||
Basic net income per share attributable to common shareholders | $ | 0.61 | $ | 0.45 | ||||
Non cash gain (loss) on foreign currency transactions | — | — | ||||||
Acquisition costs | — | — | ||||||
Customer inventory buybacks | 0.01 | — | ||||||
Restructuring/integration expense | — | 0.02 | ||||||
Non cash charge of purchase price allocated to inventories | — | — | ||||||
Tax receivable agreement liability adjustment | — | (0.02 | ) | |||||
Adjusted Basic EPS | $ | 0.62 | $ | 0.45 | ||||
Basic weighted average shares outstanding | 68,159,907 | 67,946,895 | ||||||
Diluted net income per share attributable to common shareholders | $ | 0.61 | $ | 0.45 | ||||
Non cash gain (loss) on foreign currency transactions | — | — | ||||||
Acquisition costs | — | — | ||||||
Customer inventory buybacks | 0.01 | — | ||||||
Restructuring/integration expense | — | 0.02 | ||||||
Non cash charge of purchase price allocated to inventories | — | — | ||||||
Tax receivable agreement liability adjustment | — | (0.02 | ) | |||||
Adjusted Diluted EPS | $ | 0.61 | $ | 0.45 | ||||
Diluted weighted average shares outstanding | 68,370,548 | 68,056,591 | ||||||
Ply Gem Holdings, Inc. | ||||||||
(Amounts in thousands) | For the six months ended | |||||||
July 2, 2016 | July 4, 2015 | |||||||
Net income (loss) | $ | 14,069 | $ | (18,487 | ) | |||
Interest expense, net | 37,207 | 37,766 | ||||||
Provision (benefit) for income taxes | 531 | (3,876 | ) | |||||
Depreciation and amortization | 28,343 | 29,397 | ||||||
EBITDA | 80,150 | 44,800 | ||||||
Non cash gain (loss) on foreign currency transactions | (839 | ) | 1,032 | |||||
Acquisition costs | — | 625 | ||||||
Customer inventory buybacks | 1,067 | 132 | ||||||
Restructuring/integration expense | 497 | 3,020 | ||||||
Non cash charge of purchase price allocated to inventories | — | 54 | ||||||
Tax receivable agreement liability adjustment | 18,391 | 15,179 | ||||||
Loss on modification or extinguishment of debt | 2,399 | — | ||||||
Adjusted EBITDA | $ | 101,665 | $ | 64,842 | ||||
Ply Gem Holdings, Inc. | ||||||||
For the six months ended | ||||||||
July 2, 2016 | July 4, 2015 | |||||||
Basic net income (loss) per share attributable to common shareholders | $ | 0.21 | $ | (0.27 | ) | |||
Non cash gain (loss) on foreign currency transactions | (0.01 | ) | 0.01 | |||||
Acquisition costs | — | 0.01 | ||||||
Customer inventory buybacks | 0.01 | — | ||||||
Restructuring/integration expense | — | 0.03 | ||||||
Non cash charge of purchase price allocated to inventories | — | — | ||||||
Tax receivable agreement liability adjustment | 0.18 | 0.15 | ||||||
Loss on modification or extinguishment of debt | 0.02 | — | ||||||
Adjusted Basic EPS | $ | 0.41 | $ | (0.08 | ) | |||
Basic weighted average shares outstanding | 68,143,523 | 67,935,114 | ||||||
Diluted net income (loss) per share attributable to common shareholders | $ | 0.21 | $ | (0.27 | ) | |||
Non cash gain (loss) on foreign currency transactions | (0.01 | ) | 0.01 | |||||
Acquisition costs | — | 0.01 | ||||||
Customer inventory buybacks | 0.01 | — | ||||||
Restructuring/integration expense | — | 0.03 | ||||||
Non cash charge of purchase price allocated to inventories | — | — | ||||||
Tax receivable agreement liability adjustment | 0.18 | 0.15 | ||||||
Loss on modification or extinguishment of debt | 0.02 | — | ||||||
Adjusted Diluted EPS | $ | 0.41 | $ | (0.08 | ) | |||
Diluted weighted average shares outstanding | 68,219,762 | 67,935,114 | ||||||
3. | Operating segment results for the three and six months ended July 2, 2016 and July 4, 2015 are as follows: |
For the three months ended | ||||||||||||
(Amounts in thousands) | July 2, 2016 | July 4, 2015 | ||||||||||
Net sales | ||||||||||||
Siding, Fencing and Stone | $ | 244,411 | 48 | % | $ | 238,573 | 47 | % | ||||
Windows and Doors | 266,134 | 52 | % | 263,761 | 53 | % | ||||||
$ | 510,545 | 100 | % | $ | 502,334 | 100 | % | |||||
Gross profit | ||||||||||||
Siding, Fencing and Stone | $ | 77,747 | 32 | % | $ | 70,700 | 30 | % | ||||
Windows and Doors | 57,542 | 22 | % | 54,043 | 20 | % | ||||||
$ | 135,289 | 26 | % | $ | 124,743 | 25 | % | |||||
Operating earnings (loss) | ||||||||||||
Siding, Fencing and Stone | $ | 51,305 | 21 | % | $ | 44,687 | 19 | % | ||||
Windows and Doors | 18,001 | 7 | % | 9,580 | 4 | % | ||||||
Unallocated | (7,124 | ) | (1 | )% | (8,603 | ) | (2 | )% | ||||
$ | 62,182 | 12 | % | $ | 45,664 | 9 | % | |||||
For the six months ended | ||||||||||||
(Amounts in thousands) | July 2, 2016 | July 4, 2015 | ||||||||||
Net sales | ||||||||||||
Siding, Fencing and Stone | $ | 420,787 | 46 | % | $ | 395,015 | 45 | % | ||||
Windows and Doors | 498,372 | 54 | % | 483,367 | 55 | % | ||||||
$ | 919,159 | 100 | % | $ | 878,382 | 100 | % | |||||
Gross profit | ||||||||||||
Siding, Fencing and Stone | $ | 124,011 | 29 | % | $ | 105,471 | 27 | % | ||||
Windows and Doors | 97,979 | 20 | % | 79,553 | 16 | % | ||||||
$ | 221,990 | 24 | % | $ | 185,024 | 21 | % | |||||
Operating earnings (loss) | ||||||||||||
Siding, Fencing and Stone | $ | 71,678 | 17 | % | $ | 55,008 | 14 | % | ||||
Windows and Doors | 16,751 | 3 | % | (6,826 | ) | (1 | )% | |||||
Unallocated | (16,671 | ) | (2 | )% | (16,568 | ) | (2 | )% | ||||
$ | 71,758 | 8 | % | $ | 31,614 | 4 | % | |||||
4. | Long-term debt amounts in the selected balance sheets at July 2, 2016 and December 31, 2015 consisted of the following: |
July 2, 2016 | December 31, 2015 | |||||||
(Amounts in thousands) | ||||||||
Senior secured asset based revolving credit facility | $ | — | $ | — | ||||
6.50% Senior notes due 2022, net of | ||||||||
unamortized early tender premium, discount and | ||||||||
debt issuance costs of $53,813 and $57,538, respectively | 596,187 | 592,462 | ||||||
Term Loan Facility due 2021, net of | ||||||||
unamortized early tender premium, discount and | ||||||||
debt issuance costs of $29,773 and $35,106, respectively | 360,552 | 387,369 | ||||||
$ | 956,739 | $ | 979,831 | |||||
Less current portion of long-term debt | (4,300 | ) | (4,300 | ) | ||||
$ | 952,439 | $ | 975,531 | |||||
5. The following is a summary of selected balance sheet amounts at July 2, 2016 and December 31, 2015:
July 2, 2016 | December 31, 2015 | |||||||
(Amounts in thousands) | ||||||||
Cash and cash equivalents | $ | 64,451 | $ | 109,425 | ||||
Accounts receivable, less allowances | 261,170 | 195,165 | ||||||
Inventories | 160,706 | 150,403 | ||||||
Prepaid expenses and other current assets | 23,879 | 24,647 | ||||||
Property and equipment, net | 163,686 | 161,003 | ||||||
Intangible assets, net | 116,810 | 128,384 | ||||||
Goodwill | 479,778 | 477,739 | ||||||
Accounts payable | 82,929 | 74,496 | ||||||
Payable to related parties pursuant to tax receivable agreement- non-current | 39,202 | 20,811 | ||||||
Long-term debt | 952,439 | 975,531 | ||||||
Stockholders' deficit | (57,570 | ) | (76,813 | ) | ||||
Ply Gem Holdings, Inc.
Investor Relations Contact:
919-677-3901