- Net sales increased 11.8% to $516.9
million for the fourth quarter.
- Net income increased 118.7% to $14.6
million for the fourth quarter.
- Adjusted EBITDA increased 13.7% to
$51.0 million for the fourth quarter.
- Leverage ratio improved to 3.4x for
the year ended December 31, 2017 compared to 3.7x for the
comparable 2016 period reflecting $40.0 million in voluntary Term
Loan Facility payments made during the fourth quarter of
2017.
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 December 31, 2017.
Fourth Quarter 2017 Highlights:
- Total net sales for the fourth quarter
increased 11.8% to $516.9 million.
- Operating earnings increased $5.7
million to $34.4 million compared to the fourth quarter of
2016.
- Net income for the fourth quarter
increased $7.9 million to $14.6 million from the fourth quarter of
2016.
- Adjusted EBITDA increased $6.1 million
to $51.0 million compared to $44.9 million for the fourth quarter
of 2016.
- Basic earnings per share was $0.21 for
the fourth quarter of 2017 compared to $0.10 for the 2016
period.
- Adjusted basic earnings per share was
$0.16 for the fourth quarter of 2017 compared to $0.14 for the
fourth quarter of 2016.
Year End 2017 Highlights:
- Total net sales for the year ended
December 31, 2017 increased 7.6% to $2,056.3 million.
- Operating earnings increased $5.8
million to $174.3 million compared to the year ended December 31,
2016.
- Net income decreased $7.2 million to
$68.3 million for 2017 from $75.5 million for 2016 due to higher
income tax expense partially offset by a lower tax receivable
agreement adjustment.
- Adjusted EBITDA increased to $236.3
million or 3.2% compared to the year ended December 31, 2016.
- Basic earnings per share was $1.00 for
2017 compared to $1.11 for 2016.
- Adjusted basic earnings per share was
$0.99 for 2017 compared to $1.31 for 2016.
“On January 31, 2018, Ply Gem entered into a definitive
agreement under which Clayton, Dubilier & Rice (“CD&R”)
will acquire Ply Gem for $21.64 per share in cash, representing a
go-private transaction valued at approximately $2.4 billion,” said
Gary E. Robinette, Ply Gem’s Chairman and CEO. “CD&R also
entered into a definitive agreement to acquire Atrium Windows &
Doors (Atrium) with the intent of combining Atrium with Ply Gem.
The expectation is these two acquisitions will close during the
second quarter of 2018, and we believe the new Ply Gem will
continue to provide our customers with exceptional value and
service while generating long-term growth and value creation for
the shareholders of the new combined company.” Robinette continued,
“In light of the CD&R transaction, Ply Gem will not be holding
a quarterly earnings call in conjunction with today’s release.”
Commenting on the Company’s results, Shawn K. Poe, Ply Gem’s
Chief Financial Officer stated, “In the fourth quarter, we
continued to drive financial improvements within our business
segments despite the product demand and input cost headwinds
related to the residual impact of Hurricanes Harvey and Irma. We
achieved incremental year-over-year quarterly adjusted EBITDA
growth of 13.7% and a record fourth quarter adjusted EBITDA of
$51.0 million.” Poe, continued, “As a result of our strong
performance during 2017, we strengthened our balance sheet by
generating in excess of $100 million in operating cash flow and
achieving an adjusted EBITDA of $236.3 million. We continue to
focus on our debt leverage, and on November 3, 2017 made a $40
million voluntary payment on our long-term debt under our Term Loan
Facility, which when combined with our previous 2016 payments total
a cumulative $200 million voluntary reduction in our long-term debt
which demonstrates Ply Gem’s ability to generate meaningful cash
flow.”
Fourth Quarter 2017 Financial Results
Net sales increased $54.6 million or 11.8% to $516.9 million
compared to $462.3 million for the fourth quarter of 2016. The net
sales increase was primarily driven by improved U.S. market demand,
higher Canadian net sales, new business wins and higher average
selling prices.
Gross profit margin was 21.3%, which represented a decrease of
110 basis points from the fourth quarter of 2016. The decrease in
gross profit margin resulted from higher freight and raw material
input costs for aluminum, PVC resin, and glass that were not fully
offset with higher selling prices.
Operating earnings were $34.4 million, an increase of $5.7
million from the fourth quarter of 2016 reflecting higher net sales
partially offset by higher material costs and SG&A expense.
Siding, Fencing and Stone
Siding, Fencing and Stone’s net sales totaled $237.6 million, an
increase of $30.4 million, or 14.7%, compared to $207.1 million for
the fourth quarter of 2016. The net sales increase resulted
primarily from improved U.S. market conditions, new business wins,
increased market share in the U.S. and Canada, and higher average
selling prices. Gross profit margin for the quarter ended December
31, 2017 was 24.2%, a decrease of 220 basis points from 26.4% for
the quarter ended December 31, 2016. The decrease in gross margin
percentage resulted from higher raw material input costs,
specifically PVC resin and aluminum and higher freight costs that
fully offset the 14.7% net sales increase. The unfavorable
commodity and freight costs were primarily attributed to Hurricanes
Harvey and Irma.
Windows and Doors
Windows and Doors’ net sales totaled $279.3 million, an increase
of $24.1 million, or 9.5%, compared to $255.2 million for the
fourth quarter of 2016. The net sales increase for the quarter
ended December 31, 2017 can be attributed to improved U.S. and
Canadian market demand conditions which favorably impacted our new
construction and repair and remodeling business and higher average
selling prices.
Gross profit margin was 18.9% for the quarter ended December 31,
2017 decreasing from 19.1% for the quarter ended December 31, 2016.
The gross profit decrease of 20 basis points resulted from
increased commodity costs, mainly PVC resin, aluminum and glass,
partially offset by higher average selling prices from the
continued improvement in our new construction business.
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 9,500 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 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
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
For the three months ended (Amounts in thousands,
except share and per share data) December 31, 2017
December 31, 2016 Net sales $ 516,858 $ 462,293 Cost of
products sold 406,724 358,809 Gross
profit 110,134 103,484 Operating expenses: Selling, general and
administrative expenses 70,374 68,969 Amortization of intangible
assets 5,328 5,786 Total operating
expenses 75,702 74,755 Operating
earnings 34,432 28,729 Foreign currency loss (219 ) (429 ) Interest
expense (17,531 ) (17,677 ) Interest income 18 7 Loss on
modification or extinguishment of debt (2,106 ) (7,097 ) Tax
receivable agreement liability adjustment 10,749
(268 ) Income before provision (benefit) for income taxes
25,343 3,265 Provision (benefit) for income taxes 10,772
(3,398 ) Net income $ 14,571 $ 6,663
Net income attributable to common shareholders per share: Basic $
0.21 $ 0.10 Diluted $ 0.21 $ 0.10 Weighted average shares
outstanding: Basic 68,478,838 68,224,354 Diluted 69,124,302
68,450,467 For the year ended (Amounts in
thousands, except share and per share data) December 31, 2017
December 31, 2016 Net sales $ 2,056,303 $ 1,911,844 Cost of
products sold 1,587,790 1,449,570 Gross
profit 468,513 462,274 Operating expenses: Selling, general and
administrative expenses 272,984 268,714 Amortization of intangible
assets 21,271 25,064 Total operating
expenses 294,255 293,778 Operating
earnings 174,258 168,496 Foreign currency gain 1,363 299 Interest
expense
(69,361
)
(72,718
)
Interest income 78 36 Loss on modification or extinguishment of
debt
(2,106
)
(11,747
)
Tax receivable agreement liability adjustment 10,749
(60,874 ) Income before provision (benefit) for income taxes
114,981 23,492 Provision (benefit) for income taxes 46,654
(51,995 ) Net income $ 68,327 $ 75,487
Net income attributable to common shareholders per share: Basic $
1.00 $ 1.11 Diluted $ 0.99 $ 1.10 Weighted average shares
outstanding: Basic 68,443,480 68,176,801 Diluted 69,006,968
68,324,146
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, 2017 and 2016 audited
consolidated financial statements of the Company 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 plus interest expense
(net of interest income), provision (benefit) for income taxes,
depreciation and amortization, non-cash foreign currency loss
(gain), non-cash loss on modification or extinguishment of debt,
restructuring and integration expenses, customer inventory
buybacks, litigation class action charges, 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 income 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 December 31, 2017
December 31, 2016
Net income $ 14,571 $ 6,663
Interest expense, net 17,513 17,670 Provision (benefit) for income
taxes 10,772 (3,398 ) Depreciation and amortization 13,455
13,937
EBITDA 56,311 34,872 Non cash
loss on foreign currency transactions 219 429 Customer inventory
buybacks 2,809 410 Restructuring/integration expense 123 (80 )
Litigation - class action charges, net 188 1,875 Tax receivable
agreement liability adjustment
(10,749
)
268 Loss on modification or extinguishment of debt 2,106
7,097
Adjusted EBITDA $ 51,007 $
44,871
Ply Gem Holdings,
Inc. For the three months ended December 31, 2017 December 31,
2016
Basic net income per share attributable to common
shareholders $ 0.21 $ 0.10 Release
of deferred income tax valuation allowance (1) — (0.05 ) Non cash
loss on foreign currency transactions — — Customer inventory
buybacks 0.03 — Restructuring/integration expense — — Litigation -
class action charges, net — 0.02 Tax receivable agreement liability
adjustment (0.10 ) — Loss on modification or extinguishment of debt
0.02 0.07
Adjusted Basic EPS
$ 0.16 $ 0.14
Basic weighted average shares outstanding
68,478,838 68,224,354
Diluted net income per share attributable to common
shareholders $ 0.21 $ 0.10 Release
of deferred income tax valuation allowance (1) — (0.05 ) Non cash
loss on foreign currency transactions — — Customer inventory
buybacks 0.03 — Restructuring/integration expense — — Litigation -
class action charges, net — 0.02 Tax receivable agreement liability
adjustment (0.10 ) — Loss on modification or extinguishment of debt
0.02 0.07
Adjusted Diluted EPS
$ 0.16 $ 0.14
Diluted weighted average shares outstanding
69,124,302 68,450,467
Ply Gem Holdings, Inc. (Amounts in
thousands) For the year ended December 31, 2017 December 31, 2016
Net income $ 68,327 $ 75,487 Interest expense, net 69,283
72,682 Provision (benefit) for income taxes 46,654 (51,995 )
Depreciation and amortization 53,247 56,403
EBITDA 237,511 152,577 Non cash gain on foreign
currency transactions (1,363 ) (299 ) Customer inventory buybacks
5,096 1,811 Restructuring/integration expense 1,669 433 Litigation
- class action charges, net 2,058 1,875 Tax receivable agreement
liability adjustment (10,749 ) 60,874 Loss on modification or
extinguishment of debt 2,106 11,747
Adjusted EBITDA $ 236,328 $ 229,018
Ply Gem Holdings, Inc. For the year
ended December 31, 2017 December 31, 2016
Basic net income per
share attributable to common shareholders $ 1.00
$ 1.11 Release of deferred income tax valuation
allowance (1) — (0.53 ) Non cash gain on foreign currency
transactions (0.01 ) — Customer inventory buybacks 0.05 0.02
Restructuring/integration expense 0.02 — Litigation - class action
charges, net 0.02 0.02 Tax receivable agreement liability
adjustment (0.10 ) 0.58 Loss on modification or extinguishment of
debt 0.02 0.11
Adjusted Basic
EPS $ 0.99 $ 1.31
Basic weighted average shares outstanding
68,443,480 68,176,801
Diluted net income per share attributable to common
shareholders $ 0.99 $ 1.10 Release
of deferred income tax valuation allowance (1) — (0.53 ) Non cash
gain on foreign currency transactions (0.01 ) — Customer inventory
buybacks 0.05 0.02 Restructuring/integration expense 0.02 —
Litigation - class action charges, net 0.02 0.02 Tax receivable
agreement liability adjustment (0.10 ) 0.58 Loss on modification or
extinguishment of debt 0.02 0.11
Adjusted Diluted EPS $ 0.98 $
1.31 Diluted weighted average shares
outstanding 69,006,968
68,324,146
(1) During the three months and year ended December 31, 2016,
the Company recognized a $5.1 million and $55.2 million discrete
release on our deferred income tax valuation allowance,
respectively. We released the valuation allowance for federal and
certain state jurisdictions as positive factors outweighed negative
evidence, specifically the Company was no longer in a cumulative
loss position as of December 31, 2016. However, as of December 31,
2017 and 2016, the Company still remains in a full valuation
allowance position for certain state and provinces.
3. Operating segment results for the three months and year ended
December 31, 2017 and 2016 are as follows:
For the three months ended (Amounts in
thousands) December 31, 2017 December
31, 2016
Net sales Siding, Fencing and Stone $
237,589 46 % $ 207,140 45 % Windows and Doors 279,269
54 % 255,153 55 % $ 516,858 100 % $ 462,293
100 %
Gross profit Siding, Fencing and Stone $ 57,476
24 % $ 54,714 26 % Windows and Doors 52,658 19 %
48,770 19 % $ 110,134 21 % $ 103,484 22
%
Operating earnings (loss) Siding, Fencing and Stone
$ 31,224 13 % $ 30,527 15 % Windows and Doors 10,030 4 % 7,917 3 %
Unallocated (6,822 ) (1 )% (9,715 ) (2 )% $ 34,432
7 % $ 28,729 6 % For the year
ended (Amounts in thousands) December 31, 2017 December 31, 2016
Net sales Siding, Fencing and Stone $ 970,198 47 % $ 886,851
46 % Windows and Doors 1,086,105 53 %
1,024,993 54 % $ 2,056,303 100 % $ 1,911,844
100 %
Gross profit Siding, Fencing and Stone $ 248,249 26 %
$ 259,485 29 % Windows and Doors 220,264 20 %
202,789 20 % $ 468,513 23 % $ 462,274 24 %
Operating earnings (loss) Siding, Fencing and Stone $
146,753 15 % $ 157,058 18 % Windows and Doors 56,435 5 % 43,579 4 %
Unallocated (28,930 ) (1 )%
(32,141
)
(2
)%
$ 174,258 8 % $ 168,496 9 %
4. Long-term debt amounts in the selected balance sheets at
December 31, 2017 and 2016 consisted of the following:
(Amounts in thousands)
December 31, 2017 December 31, 2016
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 $41,681 and $49,935, respectively
608,319 600,065
Term Loan Facility due 2021, net of
unamortized early tender premium, discount and debt issuance costs
of $10,560 and $17,854, respectively
203,315 240,321 $ 811,634 $ 840,386 Less current
portion of long-term debt (4,300 ) (4,300 ) $ 807,334 $
836,086
5. The following is a summary of selected balance sheet amounts
at December 31, 2017 and 2016:
(Amounts in thousands)
December
31, 2017 December 31, 2016 Cash and cash
equivalents $ 71,416 $ 51,597 Accounts receivable, less allowances
249,533 209,919 Inventories 196,491 161,956 Prepaid expenses and
other current assets 45,900 26,850 Property and equipment, net
174,532 165,556 Intangible assets, net 83,675 104,159 Goodwill
480,563 478,514 Accounts payable 85,720 75,398 Payable to related
parties pursuant to tax receivable agreement-current 51,356 25,383
Payable to related parties pursuant to tax receivable
agreement-non-current 18,125 54,336 Long-term debt 807,334 836,086
Stockholders' equity 81,921 4,106
View source
version on businesswire.com: http://www.businesswire.com/news/home/20180305005252/en/
Ply Gem Holdings, Inc.Shawn K. Poe,
919-677-3901investors@plygem.com
PLY GEM HOLDINGS INC (NYSE:PGEM)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
PLY GEM HOLDINGS INC (NYSE:PGEM)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024