PGT Innovations
Aug 5, 2009

PGT Reports 2009 Second Quarter Results

VENICE, Fla., Aug 5, 2009 (GlobeNewswire via COMTEX News Network) -- PGT, Inc. (Nasdaq:PGTI), the leading U.S. manufacturer and supplier of residential impact-resistant windows and doors, announces financial results for the second quarter ended July 4, 2009. In our second quarter:



  * Net sales were $46.9 million, an increase of $5.4 million, or
    12.9%, compared to the first quarter of 2009. Sales decreased
    when compared to the prior year second quarter by $13.2 million,
    or 22.0%.

  * Gross margin of 31.2% improved compared to the 2009 first
    quarter gross margin of 23.8%, but declined when compared to
    gross margin of 35.8% in the second quarter of 2008.

  * Net income was $342 thousand, compared to an adjusted net loss
    of $3.7 million in the first quarter of 2009, and adjusted net
    income of $1.9 million in the second quarter of 2008.

  * Net income per diluted share was $0.01, compared to an adjusted
    net loss per diluted share of $0.11 in the first quarter of 2009,
    and adjusted net income per diluted share of $0.06 in the second
    quarter of 2008.

  * EBITDA was $6.0 million, compared to adjusted EBITDA of $2.0
    million in the first quarter of 2009 and $9.5 million in the
    second quarter of 2008.

  * Solid cash generation was used to make additional debt payments
    totaling $8.0 million in June.

  * Cost reductions from initiatives taken in the first quarter of
    2009 were fully realized and are on track to produce savings
    for the rest of the year and beyond.

"We delivered solid operating performance in an environment of new housing starts down 44% compared to the second quarter of 2008, as the challenges faced by the home building industry continue. Although our sales decreased 22% in the second quarter of 2009 compared to 2008, we were able to generate $5.0 million of cash from our operations," said Rod Hershberger, PGT's President and Chief Executive Officer. "Additionally, the homebuilding industry began to show some positive signs as several of the nation's largest home builders reported increases in new home orders and decreases in cancellation rates. However, credit availability continues to be of concern and the rate of unemployment in some areas is now in the double-digits. These mixed economic signals make predicting a turn-around in the home building industry difficult, but they may be an indicator of increased stability. Actions in 2009 to better align costs with the continued decline in our sales levels benefited us in our second quarter results and will benefit us into the future. We continue to move forward with new product offerings and line expansions and to pursue growth opportunities both inside and outside of Florida. We are optimistic about our long-term growth opportunities. In the near-term, we will continue to focus on controlling costs and generating cash."

Commenting further on the second quarter of 2009, Jeff Jackson, PGT's Executive Vice President and Chief Financial Officer, stated, "Our sales continued to be negatively impacted by the most difficult market conditions we have ever encountered, declining $13.2 million, or 22.0%, from the second quarter of 2008. However, we saw some encouraging signs in the second quarter, including an increase in sequential quarter sales, and our efficiency initiatives positively impacted our ability to generate cash. This internally generated cash, coupled with effective management of working capital, enabled us to prepay $8.0 million of outstanding bank debt in June, while cash on hand decreased only $1.7 million during the quarter."

Mr. Jackson continued, "While we are pleased with the results of our second quarter, we expect the challenges of this unprecedented market downturn to continue through the rest of 2009, and possibly further. However, we remain committed to investing in our future, controlling costs and strengthening our balance sheet by further reducing debt."

Conference Call

As previously announced, PGT will hold a conference call Thursday, August 6, 2009, at 10:30 a.m. Eastern Time and will simultaneously broadcast it live over the Internet. To participate in the teleconference, please dial into the call a few minutes before the start time: 800-310-8725 (U.S. and Canada) and 719-325-2198 (international). A replay of the call will be available beginning August 6, 2009, at 1:30 p.m. Eastern Time through August 27, 2009. To access the replay, dial 888-203-1112 (U.S. and Canada) or 719-457-0820 (international) and refer to passcode 8444495. The webcast will also be available through the Investor Relations section of the PGT, Inc. website, http://www.pgtinc.com.

About PGT

PGT(R) pioneered the U.S. impact-resistant window and door industry and today is the nation's leading manufacturer and supplier of residential impact-resistant windows and doors. PGT is also one of the largest window and door manufacturers in the United States. Founded in 1980, the Company employs approximately 1,240 at its manufacturing, glass laminating and tempering plants, and delivery fleet facilities in Florida and North Carolina. Sold through a network of over 1,300 independent distributors, the Company's line of custom windows and doors is now available throughout the eastern United States, the Gulf Coast and in a growing international market, which includes the Caribbean, South America and Australia. PGT's product line includes PGT(R) Aluminum and Vinyl Windows and Doors; WinGuard(R) Impact-Resistant Windows and Doors; PGT(R) Architectural Systems; and Eze-Breeze(R) Sliding Panels. PGT Industries, Inc. is a wholly owned subsidiary of PGT, Inc. (Nasdaq:PGTI).

The PGT, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4199

Forward-Looking Statements

Statements in this news release and the schedules hereto which are not purely historical facts or which necessarily depend upon future events, including statements about forecasted financial performance or other statements about anticipations, beliefs, expectations, hopes, intentions or strategies for the future, may be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Readers are cautioned not to place undue reliance on forward-looking statements. All forward-looking statements are based upon information available to PGT, Inc. on the date this release was submitted. PGT, Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Any forward-looking statements involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements, including risks or uncertainties related to the Company's revenues and operating results being highly dependent on, among other things, the homebuilding industry, aluminum prices, and the economy. PGT, Inc. may not succeed in addressing these and other risks. Further information regarding factors that could affect our financial and other results can be found in the risk factors section of PGT, Inc.'s most recent annual report on Form 10-K filed with the Securities and Exchange Commission. Consequently, all forward-looking statements in this release are qualified by the factors, risks and uncertainties contained therein.



                       PGT, INC. AND SUBSIDIARY
             CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
          (unaudited - in thousands, except per share amounts)

                             Three Months Ended     Six Months Ended
                            -------------------   -------------------
                             July 4,   June 28,    July 4,   June 28,
                              2009       2008       2009       2008
                            --------   --------   --------   --------

 Net sales                  $ 46,867   $ 60,100   $ 88,381   $114,936
 Cost of sales                32,247     38,609     63,866     77,374
                            --------   --------   --------   --------
   Gross margin               14,620     21,491     24,515     37,562
 Goodwill impairment charge       --     92,000         --     92,000
 Selling, general and
  administrative expenses     12,541     16,165     27,552     32,434
                            --------   --------   --------   --------
   Income (loss) from
    operations                 2,079    (86,674)    (3,037)   (86,872)
 Interest expense              1,737      2,190      3,315      4,917
 Other expense (income),
  net                             --         51          6        (56)
                            --------   --------   --------   --------
   Income (loss) before
    income taxes                 342    (88,915)    (6,358)   (91,733)
 Income tax benefit               --    (12,266)        --    (13,297)
                            --------   --------   --------   --------
   Net income (loss)        $    342   $(76,649)  $ (6,358)  $(78,436)
                            ========   ========   ========   ========

 Basic net income (loss)
  per common share          $   0.01   $  (2.65)  $  (0.18)  $  (2.72)
                            ========   ========   ========   ========

 Diluted net income (loss)
  per common share          $   0.01   $  (2.65)  $  (0.18)  $  (2.72)
                            ========   ========   ========   ========

   Weighted average common
    shares outstanding:
 Basic                        35,240     28,934     35,220     28,832
                            ========   ========   ========   ========

 Diluted                      35,622     28,934     35,220     28,832
                            ========   ========   ========   ========


                        PGT, INC. AND SUBSIDIARY
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                             (in thousands)

                                                 July 4,    January 3,
                                                  2009         2009
                                              -----------  -----------
 ASSETS                                       (unaudited)
 Current assets:
 Cash and cash equivalents                     $  14,609    $  19,628
 Accounts receivable, net                         18,001       17,321
 Inventories                                       9,199        9,441
 Deferred income taxes                               529        1,158
 Other current assets                              4,325        5,569
                                              -----------  -----------
   Total current assets                           46,663       53,117

 Property, plant and equipment, net               69,540       73,505
 Other intangible assets, net                     69,893       72,678
 Other assets, net                                 1,119        1,317
                                              -----------  -----------
   Total assets                                $ 187,215    $ 200,617
                                              ===========  ===========

 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current liabilities:
 Accounts payable and accrued expenses         $  14,055    $  14,582
 Current portion of long-term debt and
  capital lease obligations                          102          330
                                              -----------  -----------
 Total current liabilities                        14,157       14,912
 Long-term debt and capital lease
  obligations                                     82,216       90,036
 Deferred income taxes                            17,844       18,473
 Other liabilities                                 2,901        3,011
                                              -----------  -----------
   Total liabilities                             117,118      126,432

   Total shareholders' equity                     70,097       74,185
                                              -----------  -----------
   Total liabilities and shareholders' equity  $ 187,215    $ 200,617
                                              ===========  ===========


                      PGT, INC. AND SUBSIDIARY
            RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
                     TO THEIR GAAP EQUIVALENTS
         (unaudited - in thousands, except per share amounts)

                             Three Months Ended     Six Months Ended
                            -------------------   -------------------
                             July 4,   June 28,    July 4,   June 28,
                              2009       2008       2009       2008
                            --------   --------   --------   --------
 Reconciliation to Adjusted
  Net Income (Loss) and
  Adjusted Net Income
  (Loss) per share (1):
 Net income (loss)          $    342   $(76,649)  $ (6,358)  $(78,436)
 Reconciling items:
  Goodwill impairment
   charge (2)                     --     92,000         --     92,000
  Restructuring charges (3)       --         --      3,002      1,752
  Tax effect of reconciling
   items (4)                      --    (13,495)        --    (14,178)
                            --------   --------   --------   --------
  Adjusted net income
   (loss)                   $    342   $  1,856   $ (3,356)  $  1,138
                            ========   ========   ========   ========

 Weighted average shares
  outstanding:
 Diluted (5)                  35,622     28,934     35,220     28,832
                            ========   ========   ========   ========

 Adjusted net income (loss)
  per share - diluted       $   0.01   $   0.06   $  (0.10)  $   0.04
                            ========   ========   ========   ========

 Reconciliation to EBITDA
  and Adjusted EBITDA:
 Net income (loss)          $    342   $(76,649)  $ (6,358)  $(78,436)
 Reconciling items:
  Depreciation and
   amortization expense        3,936      4,266      8,032      8,451
  Interest expense             1,737      2,190      3,315      4,917
  Income tax benefit              --    (12,266)        --    (13,297)
                            --------   --------   --------   --------
 EBITDA                        6,015    (82,459)     4,989    (78,365)
 Add-backs:
  Goodwill impairment
   charge (2)                     --     92,000         --     92,000
  Restructuring charges (3)       --         --      3,002      1,752
                            --------   --------   --------   --------
 Adjusted EBITDA            $  6,015   $  9,541   $  7,991   $ 15,387
                            ========   ========   ========   ========
 Adjusted EBITDA as
  percentage of net sales      12.8%      15.9%       9.0%      13.4%
                            ========   ========   ========   ========

 (1) The Company's non-GAAP financial measures were explained in its
 Form 8-K filed August 5, 2009.

 (2) Represents the write-down of the carrying value of goodwill. The
 $92.0 million non-cash impairment charge was an estimate based on the
 results of preliminary impairment tests that the Company completed in
 the 2008 third quarter, which resulted in an additional non-cash
 goodwill impairment charge of $1.3 million.

 (3) Represents charges related to restructuring actions taken in the
 first quarters of 2009 and 2008. These charges relate primarily to
 employee separation costs. Of the $3.0 million restructuring charge
 in 2009, $1.4 million is included in cost of goods sold and $1.6
 million is included in selling, general and administrative expenses.
 Of the $1.8 million restructuring charge in 2008, $1.1 million was
 included in cost of goods sold and $0.7 million was included in
 selling, general and administrative expenses.

 (4) In 2009, the tax benefit of the reconciling item is offset by an
 increase in the valuation allowance for deferred taxes.

 (5) Due to the net losses in the first six months of 2009 and in the
 second quarter and first six months of 2008, the effect of equity
 compensation plans is anti-dilutive. Weighted average common shares
 outstanding for 2008 has been restated to give effect to the market
 value premium contained in the rights offering at the time of the
 offering.

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: PGT, Inc.

PGT, Inc.
Jeffrey T. Jackson, Executive Vice President and C.F.O.
941-480-2714
jjackson@pgtindustries.com

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