Volume 13, Issue 9 - November/December2012

Financial News

earnings report
Third Quarter Financial Results Show Promise

Several door and window companies posted their financial results for the third quarter and the data seems to show that the numbers are headed in the right direction.

PGT Inc., based in Venice, Fla., posted a “substantial improvement” in net income and 4 percent growth in sales of the company’s WinGuard line.

“In the third quarter of 2012, we posted net income of $2.7 million, which was a substantial improvement compared to a year ago. This was achieved, despite lower sales of 2.2 percent, as a result of improved product mix, continued improvement in operational efficiencies, and the hard work and dedication of our employees to consistently perform above expectations,” says PGT’s president and CEO Rod Hershberger. “Some of our markets, while still below normal, are showing signs of growth, and we are well positioned to capitalize and gain share.”

Fortune Brands Home & Security reported growth in its door and window segment as net sales for advanced material doors and widows were up 7 percent in the 2012 third quarter, compared to the previous year’s quarter, according to the company. The segment’s operating income displayed positive growth as well with $9.2 million, up from a loss of $0.3 million. Primarily on door sales growth in the wholesale channel, operating income before charges/gains rose to $6.2 million, an increase from $1.9 million from 2011.

“We had another very good quarter,” says Chris Klein, CEO, Fortune Brands Home & Security Inc. “We achieved this success as the market for our products continued to improve, with double-digit growth in new housing construction and moderate improvement in spending for home repairs and remodeling.”

Builders FirstSource posted a 34.3-percent increase in sales. Sales for the third quarter of 2012 were $291.8 million when compared to the third quarter of 2011.

“For the second consecutive quarter, we reported positive Adjusted EBITDA, finishing with $3.0 million for the current quarter as compared to an Adjusted EBITDA loss of $0.7 million in the third quarter of 2011, and on a year-to-date basis, our Adjusted EBITDA has improved from a loss of $11.7 million in 2011 to positive $3.0 million in 2012,” says CEO Floyd Sherman.

Customer Loss to Have Big Financial Effect on Masonite Masonite
International Corp. was notified in early November by its second largest retail customer that they will reduce their interior door business with the company, primarily in the northeastern and southwestern United States, starting early in 2013. The affected business, which consists principally of molded doors, is expected to amount to approximately $70 million of sales on an annualized basis.

“Although we are clearly disappointed with this decision, we remain committed to our balanced growth strategy which focuses on providing customers with a broad range of high quality doors and a value-added service proposition,” says Fred Lynch, president and CEO. “We continue to actively pursue additional opportunities to accelerate growth with new and existing customers and will quickly take the appropriate actions to balance supply and demand in the affected regions.”


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