PGT Innovations
Aug 4, 2010

PGT Reports 2010 Second Quarter Results

VENICE, Fla., Aug 4, 2010 (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 3, 2010. In our second quarter:

  --  Net sales were $49.0 million, an increase of $2.1 million, or 4.6%, over
      prior year second quarter;
  --  Gross margin was 31.1%, a slight decrease from the prior year second
      quarter gross margin of 31.2%;
  --  Net income was $1 thousand compared to net income of $342 thousand in
      the prior year second quarter;
  --  EBITDA was $5.3 million, compared to $6.0 million in the prior year
      second quarter.


"For the first time since 2006 we are reporting year over year sales growth. This increase of 4.6% was due mainly to our expansion outside of Florida. During this downturn, we have demonstrated our ability to establish a stronger foothold in new markets, including states outside Florida where sales increased 28.3%," said Rod Hershberger, PGT's President and Chief Executive Officer. "Sales in Florida were essentially flat over the same period, due to continued economic pressures including high unemployment and high home inventories, though the latter is decreasing. There are some positive trends including continued low mortgage rates and certain areas showing signs of price stabilization. Housing starts in Florida increased 41% compared to the second quarter of 2009, driven mainly by a 47% increase in single family starts. This was due in part to the tax incentives which expired on April 30, 2010."

Commenting further on the second quarter of 2010, Jeff Jackson, PGT's Executive Vice President and Chief Financial Officer, stated, "The majority of the increase came in sales of our non-impact products, which have lower margins. This was offset somewhat by a decrease in sales of our aluminum WinGuard impact products of $2.5 million. As a result, gross margin as a percent of sales decreased slightly versus a year ago, despite savings generated from cost reduction initiatives taken in the back half of 2009. We also recorded an additional $0.7 million in non-cash stock compensation expense during the quarter, and an additional expense of $0.4 million related to a partial return of salary reduction each salaried employee took beginning in the second quarter of 2009. Second quarter's EBITDA was $5.3 million, or 10.7% of sales, compared to prior year's second quarter EBITDA of $6.0 million, or 12.8% of sales."

Mr. Jackson continued, "During the quarter, we generated $8.0 million in cash from operations, due in part to a $3.7 million tax refund. Our cash balance increased $6.8 million during the quarter to $22.0 million, and our net debt and corresponding leverage ratio, decreased to $31 million and 2.2X, respectively."

Conference Call

As previously announced, PGT will hold a conference call Thursday, August 5, 2010, 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: 877-654-5157 (U.S. and Canada) and 914-495-8568 (international). A replay of the call will be available beginning August 5, 2010, at 1:30 p.m. eastern time through August 26, 2010. To access the replay, dial 800-642-1687 (U.S. and Canada) and 706-645-9291 (international) and refer to pass code 88730193. 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. Founded in 1980, the company employs approximately 1,200 at its manufacturing, glass laminating and tempering plants in Florida and North Carolina. Utilizing the latest designs and technology, PGT products are ideal for new construction and replacement projects serving the residential, commercial, high-rise and institutional markets. PGT's product line includes a variety of aluminum and vinyl windows and doors. Product brands include WinGuard (R); SpectraGuard (TM); PremierVue (TM); PGT Architectural Systems; and Eze-Breeze(R). PGT Industries 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 3,    July 4,    July 3,     July 4,

                                       2010       2009       2010        2009
                                    ---------  ---------  ----------  ----------

  Net sales                          $ 49,006   $ 46,867    $ 89,522    $ 88,381

  Cost of sales                        33,760     32,247      62,953      63,866
                                    ---------  ---------  ----------  ----------
  Gross margin                         15,246     14,620      26,569      24,515
  Selling, general and
   administrative expenses             13,904     12,541      25,833      27,552
                                    ---------  ---------  ----------  ----------
  Income/(loss) from operations         1,342      2,079         736     (3,037)
  Interest expense                      1,264      1,737       2,738       3,315

  Other (income) expense, net              --         --        (20)           6
                                    ---------  ---------  ----------  ----------
  Income/(loss) before income
   taxes                                   78        342     (1,982)     (6,358)

  Income tax expense                       77         --          77          --
                                    ---------  ---------  ----------  ----------

  Net income/(loss)                       $ 1      $ 342   $ (2,059)   $ (6,358)
                                    =========  =========  ==========  ==========

  Basic net income/(loss) per
   common share                        $ 0.00     $ 0.01    $ (0.04)    $ (0.18)
                                    =========  =========  ==========  ==========

  Diluted net income/(loss) per
   common share                        $ 0.00     $ 0.01    $ (0.04)    $ (0.18)
                                    =========  =========  ==========  ==========

  Weighted average common shares
   outstanding:

  Basic                                53,649     36,220      46,694      36,199
                                    =========  =========  ==========  ==========


  Diluted                              54,334     36,601      46,694      36,199
                                    =========  =========  ==========  ==========


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


                                   July 3,    January 2,

                                    2010         2010
                                 -----------  ----------
  ASSETS                         (unaudited)
  Current assets:
  Cash and cash equivalents         $ 22,018     $ 7,417
  Accounts receivable, net            17,882      14,213
  Inventories                         11,513       9,874
  Deferred income taxes                  622         622

  Other current assets                 5,866       7,860
                                 -----------  ----------
    Total current assets              57,901      39,986

  Property, plant and
   equipment, net                     60,552      65,104
  Other intangible assets, net        64,530      67,522

  Other assets, net                      971       1,018
                                 -----------  ----------

    Total assets                   $ 183,954   $ 173,630
                                 ===========  ==========

  LIABILITIES AND SHAREHOLDERS'
   EQUITY
  Current liabilities:
  Accounts payable and accrued
   expenses                         $ 16,773    $ 16,607
  Current portion of long-term
   debt and capital lease
   obligations                           247         105
                                 -----------  ----------
    Total current liabilities         17,020      16,712
  Long-term debt and capital
   lease obligations                  52,969      68,163
  Deferred income taxes               17,937      17,937

  Other liabilities                    2,367       2,609
                                 -----------  ----------
    Total liabilities                 90,293     105,421


  Total shareholders' equity          93,661      68,209
                                 -----------  ----------
  Total liabilities and
   shareholders' equity            $ 183,954   $ 173,630
                                 ===========  ==========

                              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 3,   July 4,   July 3,     July 4,

                                          2010      2009       2010        2009
                                        --------  --------  ----------  ----------
  Reconciliation to Adjusted Net
   Income/(Loss) and Adjusted
  Net Income/(Loss) per share (1):

  Net Income/(loss)                          $ 1     $ 342   $ (2,059)   $ (6,358)
  Reconciling item:
   Restructuring charge (2)                   --        --          --       3,002

   Tax effect of reconciling item             --        --          --          --
                                        --------  --------  ----------  ----------

   Adjusted net income/(loss)                $ 1     $ 342   $ (2,059)   $ (3,356)
                                        ========  ========  ==========  ==========

  Weighted average shares outstanding:

  Diluted (3)                             54,334    36,601      46,694      36,199
                                        ========  ========  ==========  ==========

  Adjusted net income/(loss) per share
   - diluted                              $ 0.00    $ 0.01    $ (0.04)    $ (0.09)
                                        ========  ========  ==========  ==========

  Reconciliation to EBITDA and
   Adjusted EBITDA:
  Net Income/(loss)                          $ 1     $ 342   $ (2,059)   $ (6,358)
  Reconciling items:
   Depreciation and amortization
    expense                                3,921     3,936       7,887       8,032
   Interest expense                        1,264     1,737       2,738       3,315

   Income tax expense                         77        --          77          --
                                        --------  --------  ----------  ----------
  EBITDA                                   5,263     6,015       8,643       4,989

  Restructuring charge (2)                    --        --          --       3,002
                                        --------  --------  ----------  ----------

  Adjusted EBITDA                        $ 5,263   $ 6,015     $ 8,643     $ 7,991
                                        ========  ========  ==========  ==========
  Adjusted EBITDA as percentage of net
   sales                                   10.7%     12.8%        9.7%        9.0%
                                        ========  ========  ==========  ==========

  (1) The Company's non-GAAP financial measures were explained in its Form 8-K
   filed August 4, 2010.

  (2) Represents charges related to restructuring actions taken in the first
   quarter of 2009. 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.

  (3) Due to the net losses in the first six month of 2010 and 2009 , the effect
   of equity compensation plans is anti-dilutive. Weighted average common shares
   outstanding for 2009 have been restated to give effect to the bonus element
   contained in the 2010 rights offering.

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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