) posted second-quarter 2013 adjusted earnings of 14 cents per
share, up 50% year over year. The results were way ahead of the
Zacks Consensus Estimate of 8 cents.
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On a reported basis, earnings from continuing operations were 15
cents a share compared with 7 cents in the year-ago quarter.
Reported earnings include costs associated with common stock
offering and debt refinancing, discrete tax items and the tax
impact of reconciling items.
Net sales in the second quarter improved 35% year over year to
$63 million, surpassing the Zacks Consensus Estimate of $58
million. The increase was backed by improved market conditions in
Florida markets as well as execution of innovative sales and
marketing programs. Macroeconomic factors such as lower
unemployment, better access to credit and lower interest rates
were the other driving factors.
New construction sales were $19.1 million, up 57.8% year over
year. Repaid and remodel sales were $43.7 million, reflecting an
increase of 27.2% year over year. Improved consumer confidence
and higher housing prices led to the expansion.
Cost of sales went up 39% year over year to $41 million. Gross
profit went up 27.6% to $21 million from the year-ago quarter,
driven by strong revenue growth and improved operating leverage.
However, gross margin contracted 200 basis points (bps) year over
year to 33.5% due to increased labor costs and scrap resulting
from the hiring and training of new employees.
Selling, general and administrative expenses increased 20% to $14
million from $11.9 million in the prior-year quarter. The company
posted adjusted net income of $7.7 million compared with $3.7
million in the year-ago quarter.
Cash and cash equivalents were $15.5 million as of Jun 30, 2013
compared with $18.7 million as of Dec 29, 2012. Long-term debt
amounted to $75 million as of Jun 30, 2013 compared with $37.5
million as of Dec 29, 2012. The debt-to-capitalization ratio was
31.6% as of Jun 30, 2013 compared with 33.5% as of Dec 29, 2012.
PGT completed a secondary offering of 12.65 million shares from
JLL Partners in the quarter. The company also repurchased 6.8
million shares for approximately $50 million.
PGT is optimistic about the opportunities to leverage sales and
advertising campaigns, which will drive brand awareness in a
growing market. The company also expects to sustain its momentum
in the third quarter. PGT expects strong growth in both new
construction and repair and remodeling markets to result in
incremental sales growth.
North Venice, Fla.-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
PGT currently retains a Zacks Rank #3 (Hold).
Other companies in the building and construction industry with
favorable Zacks Rank are
James Hardie Industries plc
) carrying a Zacks Rank #2 (Buy).
), one of the peers of PGT' reported second-quarter adjusted
earnings of 47 cents per share, up 57% from 30 cents in the
year-earlier quarter. The results surpassed the Zacks Consensus
Estimate of 38 cents.