NORTH VENICE — The parent company of PGT announced its first quarter financial results ending April 4.
PGT Innovations, Inc. had a net sales increased 27 percent, to $220 million, it said in a news release.
“We started the year by achieving significant sales growth, reflecting the overall strength of our brands in the housing market going into 2020,” said Jeff Jackson, president and chief executive officer.
He said it saw “strong organic growth” including up 18% at its Southeast business unit; 14% at its Western business unit and its NewSouth Window Solutions acquisition “started off strong, growing orders more than 50 percent compared to the prior year quarter.”
Jackson said there was strong momentum during most of the first quarter — prior to COVID-19.
Its impact-resistant windows are “considered essential” in its markets — especially as hurricane season gets underway.
“Similar to the industry, we began to see a slowdown in orders entering the second quarter. In our Florida markets, we have seen order entry declines of approximately 10 percent for the month of April, as compared to the prior year, but sequentially down over 30 percent versus the first quarter growth rate,” he said. “We quickly adjusted our operations to meet the changes in demand, but because we are seeing a building pipeline of orders in our Florida markets in May, we are beginning to build back our capacity to meet that recovering demand.”
Areas with “stringent building restrictions” due to coronavirus are areas where the company is “seeing softer order patterns, down 20-30 percent for April as compared to the prior year, but sequentially down over 40 percent versus the first quarter growth rate.”
Because of that, he notes “the uncertainty of the duration and extent of the pandemic and the unfavorable economic environment it has created has limited our ability to forecast the remainder of the year, and as a result, last month we withdrew our 2020 guidance.”
But the company believes if there are not “significant increases” in COVID-10 cases in its markets, he said the company expect “to see a modest recovery in order trends and related sales as we move throughout the year, with our Florida markets expected to achieve year-over-year growth by year-end.”
It closed an Orlando facility, Senior Vice President/CFO Sherri Baker said in the news release.
“Additionally, we continue to focus on maintaining ample liquidity, finishing the quarter with total liquidity of $144 million, including a cash balance of $68 million and undrawn revolver capacity of $76 million,” she said.
As of May 1, it has a $69 million cash ballance and “undrawn revolver capacity” of $76 million, she noted.
“Given the potentially challenging economic outlook, we have taken several actions intended to preserve cash by reducing discretionary costs and carefully prioritizing capital expenditures, while continuing to deliver the products needed by our customers,” Baker said.
She said it is expecting a decline of between 7-10% as compared to 2019 in terms of second quarter predictions.
Jackson said he is “extremely proud” of its workers “for continuing to deliver the high-quality products and service our customers expect, while maintaining as a top priority the safety and health of our team members, customers and communities.”
“We believe we are well positioned to manage through the current economic challenges and remain positive about our competitive position in our industry over the longer term,” he added.
For more information, visit www.pgtinnovations.com.