Ply Gem swings to Q1 net income of US$54.1M from year-ago loss of US$55.5M, helped by US$98.2M gain on debt reduction; sales increased 11.7% to US$204.2M
CARY, North Carolina
May 17, 2010
– Ply Gem Holdings, Inc. (“Ply Gem” or the “Company”), a leading manufacturer of residential exterior building products in North America, today announced financial results for the first quarter ended April 3, 2010. Our first quarter highlights included:
* Net sales were $204.2 million, an increase of $21.5 million, or 11.7%, compared to the prior year first quarter of $182.8 million.
* Gross margin percentage increased to 18.1% compared to the prior year first quarter of 7.1%.
* Net income was $54.1 million, including a $98.2 million gain on extinguishment of debt, compared to a net loss of $55.5 million for the prior year first quarter.
* Adjusted EBITDA was $12.1 million compared to Adjusted EBITDA of $(13.2) million for the first quarter of 2009.
Gary E. Robinette, President and CEO, said “I am pleased with Ply Gem’s first quarter 2010 sales and Adjusted EBITDA results as they demonstrate significant improvement over the same period in 2009 and reflect our continued trend of positive year over year earnings performance which began in the second and third quarter of last year. While there are some signs of improvement in the U.S. housing market, Ply Gem will continue its focus on maintaining a lean overall cost structure while maximizing cash flow and striving to outperform the marketplace in all business units, which will ensure that Ply Gem emerges stronger as the housing market recovers.”
Mr. Robinette continued, “In addition to Ply Gem’s strong operating performance, I am pleased to report that during the first quarter of 2010, Ply Gem successfully completed a major de-levering transaction which reduced our long-term debt by approximately $210.0 million. As I have previously commented, this de-levering transaction is significant, reducing our annual cash interest expense by approximately $13.0 million, providing Ply Gem with additional operating liquidity and demonstrating our financial sponsor’s continued confidence and support of our business and management team.”
Ply Gem, headquartered in Cary, N.C., is committed to helping North America’s homebuilders, remodelers, architects, distributors, dealers and retailers do more than build homes. Ply Gem wants to help them build their business. The Company offers an unmatched solution to exterior building product needs with a portfolio that includes leading window, door, siding and accessories, stone veneer, fence and rail brands so there is something for every project. Ply Gem siding brands include Mastic® Home Exteriors, Variform®, NAPCO®, Ply Gem® Stone, Kroy®, Cellwood®, Georgia Pacific, DuraBuilt®, Richwood®, Leaf Relief® and Monticello® Columns. Ply Gem windows manufactures and markets vinyl, vinyl-clad, wood-clad, aluminum-clad, and aluminum window and patio door brands including Ply Gem® Windows, Ply Gem® Canada Windows and Doors 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. Ply Gem employs more than 4,200 people across North America. Visit www.plygem.com for more information.
Ply Gem management will host a conference call on May 17, 2010 at 10:00 a.m. EDT to report first quarter results. To participate please call 866-804-6928 and use call confirmation number 46734179.
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.
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