PGT Innovations Inc (PGTI) Reports Mixed Fiscal Year 2023 Results Amidst Market Challenges
Net Sales: Slight increase to $343 million in Q4; $1.50 billion for the fiscal year.
Net Income: Decreased by 38% to $5 million in Q4; annual net income down 12% to $110 million.
Adjusted EBITDA: Q4 saw a decrease of 5% to $46 million; however, annual Adjusted EBITDA rose by 6% to $268 million.
Earnings Per Share (EPS): Diluted EPS dropped by 56% to $0.08 in Q4; annual diluted EPS increased by 12% to $1.83.
Liquidity: Total liquidity at the end of Q4 stood at $229 million.
Cash Flow: Operating cash flow for the fiscal year slightly increased to $197 million.
On February 20, 2024, PGT Innovations Inc (NYSE:PGTI), a leader in the premium windows and doors industry, released its 8-K filing, detailing the financial outcomes for the fourth quarter and the fiscal year ended December 30, 2023. The company, known for its impact-resistant products and indoor/outdoor living space solutions, experienced a mixed financial performance with record annual results contrasted by a decline in fourth-quarter earnings.
PGT Innovations Inc (NYSE:PGTI) reported a marginal increase in net sales for the fourth quarter, reaching $343 million, while the fiscal year sales rose to $1.50 billion, marking a 1% increase. Despite the annual growth, the company faced a significant 38% decrease in net income for the fourth quarter, totaling $5 million. Adjusted net income for the quarter also fell by 17% to $14 million. However, for the fiscal year, adjusted net income saw a 4% increase, reaching $120 million.
The company's Adjusted EBITDA for the fourth quarter decreased by 5% to $46 million, but the fiscal year Adjusted EBITDA grew by 6% to $268 million. This growth reflects PGTI's ability to maintain operational execution and cost discipline in a challenging macroeconomic environment. The diluted net income per common share attributable to common shareholders decreased by 56% to $0.08 in the fourth quarter, while the annual figure rose by 12% to $1.83, indicating a mixed performance in profitability.
PGT Innovations Inc (NYSE:PGTI) also reported a total liquidity of $229 million at the end of the fourth quarter, including cash of $33 million and revolver availability of $196 million. The company's cash flow from operations for the fiscal year increased marginally by $1 million to $197 million.
President and CEO Jeff Jackson attributed the record financial results to the company's strong product lines, geographic footprint, and team. He noted the positive signs of recovery in the Western region demand trends and continued demand growth in the Southeast region. Meanwhile, Senior Vice President and CFO Craig Henderson highlighted the improved gross margins and investments in growth initiatives.
During the fourth quarter, PGT Innovations Inc (NYSE:PGTI) generated $57 million of operating cash flow, which enabled a reduction in revolver borrowings by $20 million. The company also returned $7 million to shareholders through share repurchases.
PGT Innovations Inc (NYSE:PGTI) did not hold a conference call or provide guidance for 2024 due to the transaction with MITER Brands announced on January 17, 2024. For more details, the company referred to its proxy statement.
Overall, PGT Innovations Inc (NYSE:PGTI) demonstrated resilience in a year marked by economic headwinds, delivering record annual results despite a challenging fourth quarter. The company's strategic focus on operational efficiency and market leadership in impact-resistant windows and doors positions it for potential future growth.
For a detailed breakdown of PGT Innovations Inc (NYSE:PGTI)'s financial performance and further insights, investors and interested parties are encouraged to visit the company's website and review the full 8-K filing.
Explore the complete 8-K earnings release (here) from PGT Innovations Inc for further details.
This article first appeared on GuruFocus.
