Cary, N.C.-based Ply Gem saw adjusted earnings before interest, taxes, depreciation, and amortization nudge upward during the third quarter to $40.7 million from $39.4 million a year earlier on a 2.8% net sales increase to $306.2 million for the same period, the company announced Friday. Its operating gain of $27.3 million—compared to $25.1 million a year earlier—includes a $9.3 million buyback expense associated with a new client in 2011. The quarter also saw Ply Gem refinance its current debt at a lower interest rate to cut annual cash interest expense by $4.7 million. The buyback expenses and other refinancing costs drove the company's bottom line into the red, deepening its net loss to $3.6 million from $458,000 a year earlier.
The numbers reflect a strengthening U.S. residential construction market, offset in part by a slowdown in repair and remodeling projects during the summer following a stronger first and second quarter. "Even though the market environment was better off during the first nine months of the year, we believe the recovery will continue to be slow and choppy for some time," Ply Gem president and CEO Gary E. Robinette said in a statement. View the full results.