Ply Gem propelled itself into the black during the second quarter, reporting $2.1 million in net income compared with a $409,000 net loss during the same period a year ago, the company announced today. The gain occurred even though net sales fell 2.3% to $294.5 million. The net income was bolstered by a $959,000 benefit from income taxes compared to a $664,000 expense last year, as well as a $5.2 million decrease in interest expense.
The Cary, N.C.-based residential exterior building products manufacturer reported a 14.8% drop in operating earnings to $25.8 million, which includes a $2.7 million buyback expense associated with a significant new customer win. Gross profit also fell 5% to $67 million.
Adjusted EBITDA, which the company defines as net income (or loss) plus interest expense, provision for income taxes, depreciation and amortization, non-cash foreign currency gain, customer inventory buybacks, restructuring and integration costs, and gain or loss on modification or extinguishment of debt, was down 7.8% to $42.6 million during the quarter.
"I am satisfied with Ply Gem's second quarter and first half 2011 sales and adjusted EBITDA results in light of the challenging conditions that continue to exist in the housing market today," said Ply Gem president and CEO Gary Robinette. "Given that market conditions for 2011 are expected to remain challenging, Ply Gem will continue to focus on maintaining a lean overall cost structure while maximizing cash flow and striving to outperform the marketplace in all business units..."
Ply Gem manufactures residential exterior building products such as vinyl siding and fencing, composite railing, stone veneer and vinyl windows and doors. The company's brands include Mastic Home Exteriors, DuraBuilt, Georgia Pacific and Gutter Warrior.