Ply Gem Holdings fell deeper into the red with a $19.6 million net loss during the fourth quarter, compared to a $17.6 million during the year earlier period, despite an increase in sales to $220.5 million from $214.6 million during the year earlier period, the company reported on Monday. Even with the fourth quarter results, the company posted an annual net income of $27.7 million, a huge jump from the $76.7 million net loss the company suffered during 2009.
For the quarter, the Cary, N.C.-based exterior building products manufacturer posted operating earnings of $5.7 million, a 53% decrease from the $12.1 million in operating earnings the company had during fourth quarter 2009. Total costs and expenses for the quarter were $214.8 million, a more than $12.3 million increase over the year earlier period. The company also reported the cost of products sold during the quarter as $174.6 million, an $8.4 million increase over fourth quarter 2009. Interest expense for the quarter was a $29 million loss for the company, an improvement over the $36 million interest expense loss the company had during the year prior period.
For the year, Ply Gem posted net sales of $995.9 million, a 4.7% improvement over 2009. The company also announced a gain on extinguishment of debt of $98.2 million after not posting any gain during the year prior. Operating earnings also improved during 2010 to $56.8 million, a 42% improvement over 2009's results. Total costs and expenses for the year were $939.1 million, an increase over the $911.3 million posted during the year earlier. Total costs and expenses included a $779.9 million cost of products sold, again an increase over the $749.8 million cost of products sold reported for 2009. The company also announced an interest expense loss of $123 million for the year, an improvement over the $135.5 million interest expense hit the company took during the year earlier.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was $120.6 million for the year, an increase over the $113.7 million in adjusted EBITDA announced for 2009. The company defines adjusted EBITDA as the calculation of net income or loss plus interest expense, provision for income taxes, depreciation and amortization, non-cash foreign currency gain or loss, customer inventory buybacks, restructuring and integration costs, write-off of previously capitalized offering costs, and gain on extinguishment of debt.
"Ply Gem's fourth quarter and full year results continue to reflect the challenging conditions that exist in the housing market today," said president and CEO Gary Robinette. "Despite these challenging market conditions, Ply Gem's operating performance improved in 2010 with demonstrated sales growth, improved operating earning and increased adjusted EBITDA."
The company also announced that during the first quarter of 2011, it completed a refinancing of its 11.75% Senior Secured Notes as well as its asset-based revolving credit facility. The refinancing extended the maturity of the company's indebtedness with new 8.25% Senior Secured Notes maturing in 2018 and a new revolving credit facility maturing in 2016.Robinette said that with the new refinancing the company expects to make annual cash interest savings of over $21 million.