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.

About PGT

PGT® pioneered the U.S. impact-resistant window and door industry and today is the nation's leading manufacturer and supplier of residential impact-resistant windows and doors. PGT is also one of the largest window and door manufacturers in the United States. In its 26th year, the company employs approximately 2,300 at its manufacturing, glass laminating and tempering plants, and delivery fleet facilities in Venice, Fla. and Salisbury, N.C. Sold through a network of over 1,300 independent distributors, the company's total line of custom windows and doors is now available throughout the eastern United States, the Gulf Coast and in a growing international market, which includes the Caribbean, South America and Australia. PGT's product line includes PGT® Aluminum and Vinyl Windows and Doors; WinGuard® Impact-Resistant Windows and Doors; PGT® Architectural Systems; and Eze-Breeze® Sliding Panels. PGT Industries is a wholly owned subsidiary of PGT, Inc. (NASDAQ:PGTI).

Forward-looking Statements

Statements in this news release and the schedules hereto which are not purely historical facts or which necessarily depend upon future events, including statements about forecasted financial performance or other statements about anticipations, beliefs, expectations, hopes, intentions or strategies for the future, may be forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended. Readers are cautioned not to place undue reliance on forward-looking statements. All forward-looking statements are based upon information available to PGT, Inc. on the date this release was submitted. PGT, Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Any forward-looking statements involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements, including risks or uncertainties related to the Company's revenues and operating results being highly dependent on, among other things, the homebuilding industry, aluminum prices, and the economy. PGT, Inc. may not succeed in addressing these and other risks. Further information regarding factors that could affect our financial and other results can be found in the risk factors section of PGT, Inc.'s Form S-1 (File No. 333-132365) filed with the Securities and Exchange Commission. Consequently, all forward-looking statements in this release are qualified by the factors, risks and uncertainties contained therein.

PGT, INC. AND SUBSIDIARYCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(unaudited - dollars in thousands, except per share amounts)Three Months EndedYear EndedDecember 30,December 31,December 30,December 31,2006200520062005Net sales$68,230$88,143$371,598$332,813Cost of sales48,56554,348229,867209,475Gross margin19,66533,795141,731123,338Stock compensation expense related to dividend-54126,8987,146Write-off of trademark-7,200 -7,200Selling, general and administrative expenses19,01524,11687,37083,634Income from operations6501,93827,46325,358 Other expense (income), net149(276)(178)(286)Interest expense3,0773,50328,50913,871(Loss) income before income taxes(2,576)(1,289)(868)11,773Income tax (benefit) expense(585)(428)1013,910Net (loss) income$(1,991)$(861)$(969)$7,863Basic net (loss) income per common share$(0.07)$(0.05)$(0.05)$0.50Diluted net (loss) income per common and common equivalent share$(0.07)$(0.05)$(0.05)$0.45 Weighted average common shares outstanding:Basic26,99515,73021,20415,723Diluted26,99515,73021,20417,299 PGT, INC. AND SUBSIDIARYCONDENSED CONSOLIDATED BALANCE SHEET(dollars in thousands)December 30,December 31,20062005ASSETS(unaudited)Current assets:Cash and cash equivalents$36,981$3,270Accounts receivable, net25,24445,193Inventories11,16113,981Deferred income taxes5,2313,133Other current assets13,04111,360Total current assets 91,65876,937Property, plant and equipment, net78,80265,508Goodwill169,648169,648Other intangible assets, net101,918107,760Other assets, net1,9685,700Total assets$443,994$425,553LIABILITIES AND SHAREHOLDERS' EQUITYCurrent liabilities:Accounts payable and accrued expenses $20,883$31,137Current portion of long-term debt 420-Total current liabilities21,30331,137Long-term debt165,068183,525Deferred income taxes52,41754,320Total liabilities238,788268,982Total shareholders' equity205,206156,571Total liabilities and shareholders' equity$443,994$425,553 PGT, INC. AND SUBSIDIARYRECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO THEIR GAAP EQUIVALENTS(unaudited - dollars and shares in thousands, except per share amounts)Three Months EndedYear EndedDec. 30,Dec. 31,Dec. 30,Dec. 31,2006200520062005Reconciliation to Adjusted Net (Loss) Income and Adjusted Net (Loss) Income per pro forma share (1):Net (loss) income$(1,991)$(861)$(969)$7,863Reconciling items:Cash payment to stock option holders (2)-54126,8987,146Write-off of NatureScape trademark (3)-7,200-7,200NatureScape exit costs (3)-629-629Impairment of property held for sale (4)1,151-1,151-Write-off of unamortized debt issuance costs in connection with the February 2006 refinancing and prepayment of debt in Q3 2006 (5)--6,626-Refinancing fees incurred in connection with September 2005 refinancing (6)---404Prepayment penalty resulting from debt repayment in July 2006 and September 2005 (5)--2,300450Reduction in interest expense assuming February 2006 debt refinancing and repayment of debt with IPO proceeds were completed at the beginning of each period (5)-1876,355(22)Management fee (7)-4601,4341,840Tax effect of reconciling items at 39%(449)(3,517)(17,458)(6,882) Adjusted net (loss) income$(1,289)$4,639$26,337$18,627Weighted average shares outstanding:Diluted shares26,99515,73021,20417,299Incremental shares for IPO (8)-10,1475,089 10,147Incremental shares for stock incentive awards (9)-1,8001,799-Pro forma diluted shares26,99527,67728,09227,446Adjusted net (loss) income per pro forma share - diluted$(0.05)$0.17$0.94$0.68Reconciliation to EBITDA and Adjusted EBITDA:Net (loss) income$(1,991)$(861)$(969)$7,863Reconciling items:Depreciation and amortization expense4,1334,14715,61315,524Interest expense 3,0773,50328,50913,871Income tax (benefit) expense(585)(428)1013,910EBITDA4,6346,36143,25441,168Add:Cash payment to stock option holders (2)-54126,8987,146Write-off of NatureScape trademark (3)-7,200-7,200NatureScape exit costs (3)-629-629Impairment of Property held for sale (4)1,1511,151Refinancing fees incurred in connection with September 2005 refinancing (6)--- 404Management fee (7)-4601,4341,840Adjusted EBITDA$5,785$15,191$72,737$58,387Adjusted EBITDA as percentage of sales8.5%17.2%19.6%17.5% (1)The company has provided detailed explanations of its non-GAAP financial measures in its Form 8-K filed February 21, 2006.(2)Represents cash payments made to stock option holders (including applicable payroll taxes) in lieu of adjusting exercise prices in conjunction with the payment of dividends to our shareholders. This amount is included as a separate line item in the consolidated statement of operations of which $5,069 and $21,829 related to cost of sales and selling, general and administrative expenses, respectively, for 2006, and $1,292 and $5,854 related to cost of sales and selling, general and administrative expenses, respectively, for 2005.(3)Represents a write-down of our NatureScape trademark in connection with the sale of this business and associated exit costs. The exit costs are included in selling, general and administrative expenses.(4)Represents a write-down of the value of the Lexington, North Carolina property which has been classified as an asset held for sale due to the relocation of our plant to Salisbury, North Carolina and related exit costs. These expenses are included in selling, general and administrative expenses.(5)This amount is included in interest expense.(6)This amount is included in selling, general and administrative expenses.(7)Represents management fees paid to our majority stockholder. Since consummating the initial public offering, these fees are no longer paid. The fees are included in selling, general and administrative expenses.(8)Represents incremental shares related to the company's IPO assuming 10,147 shares sold by the company (including the over-allotment option of 1,324 shares) were issued at the beginning of the respective periods.(9)Represents incremental shares for stock options that were excluded from the calculation of earnings per share for the fourth quarter of 2005 and for the year ended December 30, 2006 because their effect would have been anti-dilutive. CONTACT: PGT, Inc., Venice Jeffrey T. Jackson, 941-486-0100, ext. 22786 or Lynda Williams, 941-486-0100, ext. 22334

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