PGT Reports Fourth Quarter, FY06 Results

PGT, Inc. (Nasdaq:PGTI), the leading U.S. manufacturer and supplier of residential impact-resistant windows and doors, today announced financial results for its fourth quarter and fiscal year ended December 30, 2006.

"The building industry continues to see significant deterioration in new construction as evidenced by a decline in new housing permits of 48% in the fourth quarter of 2006 versus the same period in the prior year. Comparatively, our revenues declined 22.6% in the fourth quarter of 2006 versus the same period in the prior year," said Rod Hershberger, PGT's President and Chief Executive Officer. "We have been able to offset some of this decline by gaining market share due to our superior product offering and increasing our repair and replacement business.

For the fiscal year ended 2006, we reported sales of $371.6 million, which represents an increase of 11.7% over the prior year. Excluding the $26.9 million cash payment made in connection with the repayment of a dividend to our shareholders and other non-recurring items, adjusted net income was $26.3 million, an increase of 41.4% year-over-year."

Fourth Quarter 2006 Financial Results

(See accompanying financial schedules for full financial details and reconciliations of non-GAAP financial measures to their GAAP equivalents.)

Year-to-Date 2006 Financial Results

(See accompanying financial schedules for full financial details and reconciliations of non-GAAP financial measures to their GAAP equivalents.)

Commenting on the fourth quarter results, Jeff Jackson, PGT's Chief Financial Officer, said, "Our overall lower sales volume resulted in declining operating leverage for the fourth quarter. We decreased our operating expenses, and we have slowed the production output of our plants to reflect the current sales level. We will continue to implement improvements in our manufacturing operations and reduce our selling, general and administrative expenses to help offset the reduced volume. We believe we are making the right decisions to position our business to emerge even stronger when the housing cycle rebounds."

Mr. Hershberger further commented, "We believe the current conditions in the building products market will prove to be challenging for everyone. We also believe we have the strategies in place to navigate through this near-term correction and will continue to manage our costs during this period and adjust accordingly. We remain confident that our core business model and operating strategy will continue to allow us to grow our business over the long-term and maintain our strong market position regardless of cyclical declines in housing demand."

Conference Call

As previously announced, PGT will hold a conference call Thursday, February 22, 2007, at 10:30 a.m. Eastern Time and will simultaneously broadcast it live over the Internet. To participate in the teleconference, please dial into the call a few minutes before the start time: 866-700-0133 (U.S. and Canada) and 617-213-8831 (international). Refer to passcode 55197649. A replay of the call will be available beginning February 22, 2007 at 3:00 pm Eastern time through March 8, 2007. To access the replay, dial 888-286-8010 (U.S. and Canada) and 617-801-6888 (international) and refer to passcode 64496678. To access the webcast, go to and click on "Investors". The online archive of the webcast will be available for approximately 14 days.

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