PGT Inc. (PGTI, Financial) filed Quarterly Report for the period ended 2010-07-03.
Pgt Inc. has a market cap of $111 million; its shares were traded at around $2.07 with and P/S ratio of 0.8. PGTI is in the portfolios of Michael Price of MFP Investors LLC, Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates.
As we entered into 2010 we announced another rights offering which closed on March 12, 2010. This rights offering was 90% subscribed and generated $26.4 million of additional capital for our Company after fees and financing costs. We used $15.0 million of the proceeds to further pay down our term debt and make our third amendment to our credit facility, which we entered into on December 24, 2009, effective. This amendment further secures our position and provides more flexibility to focus on long-term strategic goals. As of July 3, 2010, our net debt was $31 million.
On September 24, 2009 and November 12, 2009, we announced restructurings and recorded charges totaling $2.4 million, of which $0.1 million and $0.9 million was unpaid as of July 3, 2010, and January 2, 2010, respectively. The remaining unpaid $0.1 million is classified within accounts payable and accrued liabilities in the accompanying condensed consolidated balance sheet as of July 3, 2010 and is expected to be disbursed in 2010.
Net sales of WinGuard branded products were $30.5 million for the second quarter of 2010, a decrease of $1.7 million, or 5.3%, from $32.2 million in net sales for the 2009 second quarter. The decrease in sales of our WinGuard products was driven mainly by a 5% decline in sales into both the new home and repair and remodeling markets. WinGuard sales have also been affected, to some extent, by the lack of storm activity during the three most recent hurricane seasons in the coastal markets of Florida served by the Company.
Net sales of Other Window and Door Products were $18.5 million for the second quarter of 2010, an increase of $3.8 million, or 25.9%, from $14.7 million in net sales for the 2009 second quarter. This increase was due mainly to the success of new products. Sales of our new non-impact vinyl products launched over the past two years, including SpectraGuard, are up $1.4 million. Also, sales of our new PremierVue products introduced in the third quarter of 2009, were $1.1 million. Lastly, sales of our Architectural Systems products, sold into commercial and high rise buildings, increased $1.1 million over prior year.
Selling, general and administrative expenses were $13.9 million for the second quarter of 2010, an increase of $1.4 million, from $12.5 million for the 2009 second quarter. The $1.4 million increase in SG&A was mainly due to a $0.7 million increase in non-cash stock compensation expense, $0.4 million related to a partial return of salary reduction each salaried employee took beginning in the second quarter of 2009, $0.2 million in increased fuel costs, and $0.1 million of overall higher spending in other categories. As a percentage of sales, SG&A expenses were 28.4% for the second quarter of 2010, compared to 26.8% for the second quarter of 2009.
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Pgt Inc. has a market cap of $111 million; its shares were traded at around $2.07 with and P/S ratio of 0.8. PGTI is in the portfolios of Michael Price of MFP Investors LLC, Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates.
Highlight of Business Operations:
With regard to new products, our SpectraGuard lines, with sales growing $0.8 million, lead our out of state growth. Additionally, two new products had a positive impact on our Florida sales. First, our new PremierVue line of high end vinyl impact products, contributed $1.1 million in additional sales. Second, our new vinyl non-impact replacement product specifically designed for the Florida market contributed $600 thousand in additional sales for the quarter. These new product increases were offset somewhat by lower WinGuard sales, which were down in all territories by $1.7 million.As we entered into 2010 we announced another rights offering which closed on March 12, 2010. This rights offering was 90% subscribed and generated $26.4 million of additional capital for our Company after fees and financing costs. We used $15.0 million of the proceeds to further pay down our term debt and make our third amendment to our credit facility, which we entered into on December 24, 2009, effective. This amendment further secures our position and provides more flexibility to focus on long-term strategic goals. As of July 3, 2010, our net debt was $31 million.
On September 24, 2009 and November 12, 2009, we announced restructurings and recorded charges totaling $2.4 million, of which $0.1 million and $0.9 million was unpaid as of July 3, 2010, and January 2, 2010, respectively. The remaining unpaid $0.1 million is classified within accounts payable and accrued liabilities in the accompanying condensed consolidated balance sheet as of July 3, 2010 and is expected to be disbursed in 2010.
Net sales of WinGuard branded products were $30.5 million for the second quarter of 2010, a decrease of $1.7 million, or 5.3%, from $32.2 million in net sales for the 2009 second quarter. The decrease in sales of our WinGuard products was driven mainly by a 5% decline in sales into both the new home and repair and remodeling markets. WinGuard sales have also been affected, to some extent, by the lack of storm activity during the three most recent hurricane seasons in the coastal markets of Florida served by the Company.
Net sales of Other Window and Door Products were $18.5 million for the second quarter of 2010, an increase of $3.8 million, or 25.9%, from $14.7 million in net sales for the 2009 second quarter. This increase was due mainly to the success of new products. Sales of our new non-impact vinyl products launched over the past two years, including SpectraGuard, are up $1.4 million. Also, sales of our new PremierVue products introduced in the third quarter of 2009, were $1.1 million. Lastly, sales of our Architectural Systems products, sold into commercial and high rise buildings, increased $1.1 million over prior year.
Selling, general and administrative expenses were $13.9 million for the second quarter of 2010, an increase of $1.4 million, from $12.5 million for the 2009 second quarter. The $1.4 million increase in SG&A was mainly due to a $0.7 million increase in non-cash stock compensation expense, $0.4 million related to a partial return of salary reduction each salaried employee took beginning in the second quarter of 2009, $0.2 million in increased fuel costs, and $0.1 million of overall higher spending in other categories. As a percentage of sales, SG&A expenses were 28.4% for the second quarter of 2010, compared to 26.8% for the second quarter of 2009.
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