PGT, Inc. (PGTI) posted first-quarter 2013 adjusted earnings of 6 cents per share compared with the prior-year loss of a penny per share. The results were ahead of the Zacks Consensus Estimate of 3 cents.
On a reported basis, earnings from continuing operations were 9 cents a share compared with the prior year loss of a penny. First-quarter reported earnings include the gain on sale of Salisbury facility and a related tax impact.
Net sales in the first quarter improved 30% year over year to $50 million, beating the Zacks Consensus Estimate of $46 million. The top-line increase was due to improved market conditions, driven by macroeconomic factors such as lower unemployment, better access to credit and improved housing prices as well as focus on promotional programs targeting the WinGuard products of the company.
Cost of sales went up 22% year over year to $32 million in the reported quarter. Gross profit went up 47% to $17.6 million from the year-ago quarter, driven by a strong revenue growth, improved product mix and improved operating leverage. Gross margin expanded 400 basis points (bps) year over year to 35.4% in the quarter.
Selling, general and administrative expenses increased 11% to $13 million in the quarter. The company posted income from operations of $4.5 million compared to $0.23 million in the year-ago quarter.
Cash and cash equivalents were $14 million as of Mar 30, 2013 compared with $18.7 million as of Dec 29, 2012. Long-term debt amounted to $30 million as of Mar 30, 2013, compared with $37.5 million as of Dec 29, 2012. The debt-to-capitalization ratio was 28.8% as of Mar 30, 2013 compared with 33.5% as of Dec 29, 2012. PGT repurchased around 1.1 million shares in the reported quarter for approximately $6.1 million.
PGT is optimistic about the opportunities to leverage sales and advertising campaigns, which will drive brand awareness in the growing market. The company also expects solid year-over-year sales growth of 37% in the second quarter of 2013, driven by improved marketing conditions and investments in promotions, television and radio advertising.
North Venice, FL-based PGT is the leading U.S. manufacturer and supplier of residential impact-resistant windows and doors. PGT's product line includes a variety of aluminum and vinyl windows and doors, which are ideal for new construction and replacement projects serving the residential, commercial, high-rise and institutional markets.
PGT currently retains a short-term Zacks Rank #2 (Buy). Other companies in the building and construction industry are James Hardie Industries plc (JHX), Armstrong World Industries, Inc. (AWI) and CaesarStone Sdot-Yam Ltd. (CSTE).
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