PGT Innovations
Nov 4, 2009

PGT Reports 2009 Third Quarter Results

VENICE, Fla., Nov 4, 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 third quarter ended October 3, 2009. In our third quarter:



 * Net sales were $41.6 million, a decrease of $5.3 million, or
   11.2%, compared to the second quarter of 2009. Sales decreased
   when compared to the prior year third quarter by $12.7 million,
   or 23.4%.

 * Gross margin of 26.1% decreased compared to both the 2009 second
   quarter gross margin of 31.2% and the third quarter of 2008 gross
   margin of 29.8%. Gross margin adjusted for restructuring costs in
   the 2009 third quarter was 27.4%.

 * Adjusted net loss was $2.5 million, compared to net income of
   $342 thousand in the second quarter of 2009, and adjusted net
   loss of $337 thousand in the third quarter of 2008.

 * Adjusted net loss per diluted share was $0.07, compared to a net
   income per diluted share of $0.01 in the second quarter of 2009,
   and adjusted net loss per diluted share of $0.01 in the third
   quarter of 2008.

 * Adjusted EBITDA was $3.2 million, compared to EBITDA of $6.0
   million in the second quarter of 2009 and adjusted EBITDA of $6.0
   million in the third quarter of 2008.

 * Additional cost reduction actions were taken that are expected to
   produce annualized savings of $2.0 million.

"Housing starts in Florida declined 42% compared to the third quarter of 2008 as the prolonged downturn in the homebuilding industry continued," said Rod Hershberger, PGT's President and Chief Executive Officer. "Our operating performance continued to be negatively impacted by these industry conditions as our sales decreased 23%, yet we were still able to generate nearly $1.0 million of cash from operations. Recently there have been signs that there is a recovery in the homebuilding industry taking place but the recovery continues to be hampered by other economic factors. In Florida, home sales increased 34% in September compared to the prior month as a more confident home buyer moved to take advantage of sales incentives, improved affordability and tax breaks. However, the ongoing impact of increased foreclosures and mortgage delinquencies, higher unemployment and tight credit standards make predicting the timing and extent of a turn-around or even stability difficult. Several of the nation's largest home builders continued to report increases in new home orders and decreases in cancellation rates during the third quarter, but these improvements have not yet reversed the trend of steadily declining sales in the homebuilding industry. We again took actions in the third quarter to better align costs with the continued decline in our sales levels that, coupled with actions taken earlier this year, have and will continue to benefit us into the future. We recently announced and completed an acquisition that broadens our capabilities in the vinyl and impact-resistant markets and we continue to move forward with new product offerings and line expansions as we 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 conserving cash."

Commenting further on the third 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 $12.7 million, or 23.4%, from the third quarter of 2008. Sales decreased $5.3 million, or 11.2%, from the second quarter as repair and remodeling activity decreased as it does each year at this time. At $41.6 million for the third quarter of 2009, sales have decreased to levels we have not seen since 2002. Despite the decline in sales, we generated positive cash from operations during the quarter, driven by our 2009 cost savings and efficiency initiatives, which we expect to deliver savings well into the future. We primarily used cash on hand to prepay $12 million of outstanding bank debt in September in order to reduce the leverage ratio our credit agreement requires us to calculate at the end of each quarter. However, after the end of the quarter in early October, we drew down $12 million in cash under our revolving credit facility to provide liquidity for near-term growth initiatives including new product offerings and our expanding presence in the vinyl and impact-resistant markets through our recently announced acquisition."

Mr. Jackson continued, "We expect the challenges of this unprecedented market downturn to continue well into 2010, and possibly further. However, we remain committed to investing in our future and controlling costs."

Conference Call

As previously announced, PGT will hold a conference call Thursday, November 5, 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: 800-441-0022 (U.S. and Canada) and 719-325-2106 (international). A replay of the call will be available beginning November 5, 2009, at 1:30 p.m. Eastern Time through November 26, 2009. To access the replay, dial 888-203-1112 (U.S. and Canada) or 719-457-0820 (international) and refer to passcode 6624889. 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. Utilizing the latest designs and technology, PGT products are ideal for new construction and replacement projects serving the residential, high-rise and institutional markets. 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).

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   Nine Months Ended
                             ------------------- -------------------
                              Oct. 3,  Sept. 27,  Oct. 3,  Sept. 27,
                               2009      2008      2009      2008
                             --------- --------- --------- ---------

 Net sales                   $ 41,616  $ 54,330  $129,997  $169,266
 Cost of sales                 30,752    38,132    94,618   115,506
                             --------- --------- --------- ---------
   Gross margin                10,864    16,198    35,379    53,760
 Goodwill and intangible
  impairment charges               --     1,600        --    93,600
 Selling, general and
  administrative expenses      12,642    14,475    40,194    46,909
                             --------- --------- --------- ---------
   (Loss) income from
    operations                 (1,778)      123    (4,815)  (86,749)
 Interest expense               1,735     2,236     5,050     7,153
 Other expense (income),
  net                              27        18        33       (38)
                             --------- --------- --------- ---------
   Loss before income taxes    (3,540)   (2,131)   (9,898)  (93,864)
 Income tax benefit              (181)     (502)     (181)  (13,799)
                             --------- --------- --------- ---------
   Net loss                  $ (3,359) $ (1,629) $ (9,717) $(80,065)
                             ========= ========= ========= =========

 Basic net loss per
  common share               $  (0.10) $  (0.05) $  (0.28) $  (2.74)
                             ========= ========= ========= =========

 Diluted net loss per
  common share               $  (0.10) $  (0.05) $  (0.28) $  (2.74)
                             ========= ========= ========= =========

   Weighted average common
    shares outstanding:
 Basic                         35,300    32,082    35,247    29,183
                             ========= ========= ========= =========

 Diluted                       35,300    32,082    35,247    29,183
                             ========= ========= ========= =========



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

                                                  Oct. 3,
                                                   2009       Jan. 3,
                                                (unaudited)    2009
                                                -----------  ---------
ASSETS

 Current assets:
 Cash and cash equivalents                      $    3,094   $ 19,628
 Accounts receivable, net                           17,044     17,321
 Inventories                                        11,236      9,441
 Deferred income taxes                                 360      1,158
 Other current assets                                4,212      5,569
                                                -----------  ---------
   Total current assets                             35,946     53,117

 Property, plant and equipment, net                 67,952     73,505
 Other intangible assets, net                       69,012     72,678
 Other assets, net                                   1,430      1,317
                                                -----------  ---------
   Total assets                                 $  174,340   $200,617
                                                ===========  =========

 LIABILITIES AND SHAREHOLDERS' EQUITY

 Current liabilities:
 Accounts payable and accrued expenses          $   15,441   $ 14,582
 Current portion of long-term debt and
  capital lease obligations                            103        330
                                                -----------  ---------
   Total current liabilities                        15,544     14,912
 Long-term debt and capital lease obligations       70,190     90,036
 Deferred income taxes                              17,675     18,473
 Other liabilities                                   2,658      3,011
                                                -----------  ---------
   Total liabilities                               106,067    126,432

   Total shareholders' equity                       68,273     74,185
                                                -----------  ---------
   Total liabilities and shareholders' equity   $  174,340   $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   Nine Months Ended
                             ------------------- -------------------
                              Oct. 3,  Sept. 27,  Oct. 3,  Sept. 27,
                               2009      2008      2009      2008
                             --------- --------- --------- ---------
 Reconciliation to Adjusted
  Net (Loss) Income and
   Adjusted Net (Loss)
    Income per share (1):
 Net loss                    $ (3,359) $ (1,629) $ (9,717) $(80,065)
 Reconciling items:
   Goodwill and intangible
    impairment charges (2)         --     1,600        --    93,600
   Restructuring charges (3)      903        --     3,905     1,752
   Tax effect of
    reconciling items (4)          --      (308)       --   (14,486)
                             --------- --------- --------- ---------
   Adjusted net (loss)
    income                   $ (2,456) $   (337) $ (5,812) $    801
                             ========= ========= ========= =========

 Weighted average shares
  outstanding:
   Diluted (5)                 35,300    32,082    35,247    29,183
   Incremental shares for
    stock awards (6)               --        --        --       396
                             --------- --------- --------- ---------
   Diluted - adjusted          35,300    32,082    35,247    29,579
                             ========= ========= ========= =========

 Adjusted net loss (income)
  per share - diluted        $  (0.07) $  (0.01) $  (0.16) $   0.03
                             ========= ========= ========= =========

 Reconciliation to EBITDA
  and Adjusted EBITDA:
 Net loss                    $ (3,359) $ (1,629) $ (9,717) $(80,065)
 Reconciling items:
   Depreciation and
    amortization expense        4,060     4,302    12,092    12,753
   Interest expense             1,735     2,236     5,050     7,153
   Income tax benefit            (181)     (502)     (181)  (13,799)
                             --------- --------- --------- ---------
 EBITDA                         2,255     4,407     7,244   (73,958)
 Add-backs:
   Goodwill and intangible
    impairment charges (2)         --     1,600        --    93,600
   Restructuring charges (3)      903        --     3,905     1,752
                             --------- --------- --------- ---------
 Adjusted EBITDA             $  3,158  $  6,007  $ 11,149  $ 21,394
                             ========= ========= ========= =========
 Adjusted EBITDA as
  percentage of net sales         7.6%     11.1%      8.6%     12.6%
                             ========= ========= ========= =========



 (1) The Company's non-GAAP financial measures were explained in its
     Form 8-K filed November 4, 2009.

 (2) Represents the write-down of the carrying value of goodwill and a
     trademark. The Company recorded an estimated $92.0 million
     non-cash goodwill impairment charge in the second quarter of 2008
     based on the results of preliminary impairment tests at that
     time. The Company completed its updated impairment tests in the
     2008 third quarter which resulted in additional non-cash
     impairment charges totaling $1.6 million, of which $1.3 million
     related to goodwill and $0.3 million related to a trademark.

 (3) Represents charges related to restructuring actions taken in the
     first and third quarters of 2009 and the first quarter of 2008.
     These charges relate primarily to employee separation costs. Of
     the $0.9 million restructuring charge in the third quarter of
     2009, $0.5 million is included in cost of goods sold and $0.4
     million is included in selling, general and administrative
     expenses. Of the $3.9 million restructuring charge in 2009, $1.9
     million is included in cost of goods sold and $2.0 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, the effect of equity compensation plans is
     anti-dilutive.

 (6) Represents dilutive stock options included in the calculation of
     adjusted net income per diluted share for the nine months ended
     September 27, 2008.

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

SOURCE: PGT, Inc.

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

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