Company Quick10K Filing
Quick10K
PGT Innovations
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$15.49 58 $904
10-Q 2019-06-29 Quarter: 2019-06-29
10-Q 2019-03-30 Quarter: 2019-03-30
10-K 2018-12-29 Annual: 2018-12-29
10-Q 2018-09-29 Quarter: 2018-09-29
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-K 2017-12-30 Annual: 2017-12-30
10-Q 2017-09-30 Quarter: 2017-09-30
10-Q 2017-07-01 Quarter: 2017-07-01
10-Q 2017-04-01 Quarter: 2017-04-01
10-K 2016-12-31 Annual: 2016-12-31
10-Q 2016-10-01 Quarter: 2016-10-01
10-Q 2016-07-02 Quarter: 2016-07-02
10-Q 2016-04-02 Quarter: 2016-04-02
10-K 2016-01-02 Annual: 2016-01-02
10-Q 2015-10-03 Quarter: 2015-10-03
10-Q 2015-07-04 Quarter: 2015-07-04
10-Q 2015-04-04 Quarter: 2015-04-04
10-K 2015-01-03 Annual: 2015-01-03
10-Q 2014-09-27 Quarter: 2014-09-27
10-Q 2014-06-28 Quarter: 2014-06-28
10-Q 2014-03-29 Quarter: 2014-03-29
10-K 2013-12-28 Annual: 2013-12-28
8-K 2019-08-01 Earnings, Regulation FD, Exhibits
8-K 2019-05-22 Officers, Shareholder Vote, Other Events, Exhibits
8-K 2019-05-02 Earnings, Regulation FD, Exhibits
8-K 2019-03-26 Officers, Exhibits
8-K 2018-12-28 Officers, Exhibits
8-K 2018-12-20 Enter Agreement, Exhibits
8-K 2018-11-01 Earnings, Regulation FD, Exhibits
8-K 2018-09-18 Other Events
8-K 2018-09-13 Other Events, Exhibits
8-K 2018-09-11 Regulation FD, Exhibits
8-K 2018-08-10 Enter Agreement, M&A, Off-BS Arrangement, Other Events, Exhibits
8-K 2018-08-02 Other Events, Exhibits
8-K 2018-07-31 Regulation FD, Other Events, Exhibits
8-K 2018-07-30 Earnings, Regulation FD, Exhibits
8-K 2018-07-24 Enter Agreement, Earnings, Regulation FD, Exhibits
8-K 2018-05-24 Officers
8-K 2018-05-21 Shareholder Vote
8-K 2018-04-30 Earnings, Regulation FD, Exhibits
8-K 2018-03-16 Enter Agreement, Exhibits
8-K 2018-02-20 Earnings, Regulation FD, Exhibits
AZN AstraZeneca 100,930
NWS News Corp 6,820
MORN Morningstar 5,650
FEYE Fireeye 3,180
LAD Lithia Motors 2,640
NGD New Gold 465
CTSO Cytosorbents 213
IMAC IMAC Holdings 29
NXMD Nexeon Medsystems 0
BBLS Petrolia Energy 0
PGTI 2019-06-29
Part I - Financial Information
Item 1. Condensed Consolidated Financial Statements (Unaudited)
Note 1. Basis of Presentation
Note 2. Revenue Recognition and Contracts with Customers
Note 3. Warranty
Note 4. Inventories
Note 5. Stock Based-Compensation
Note 6. Acquisition
Note 7. Net Income per Common Share
Note 8. Goodwill and Other Intangible Assets
Note 9. Long-Term Debt
Note 10. Leases
Note 11. Commitments and Contingencies
Note 12. Income Taxes
Note 13. Fair Value
Note 14. Derivatives
Note 15. Accumulated Other Comprehensive Loss
Note 16. Segments
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosure
Item 5. Other Information
Item 6. Exhibits
EX-31.1 pgti-ex311_9.htm
EX-31.2 pgti-ex312_8.htm
EX-32.1 pgti-ex321_6.htm
EX-32.2 pgti-ex322_7.htm

PGT Innovations Earnings 2019-06-29

PGTI 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

pgti-10q_20190629.htm
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 29, 2019

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from                    to                  

Commission file number 001-37971

PGT Innovations, Inc.

 

1070 Technology Drive

North Venice, FL 34275

Registrant’s telephone number: 941-480-1600

 

State of Incorporation

 

IRS Employer Identification No.

Delaware

 

20-0634715

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes No

 

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section13(a) of the Exchange Act.

Yes No

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes No

Common Stock, $0.01 par value, outstanding was 58,585,669 shares, as of July 31, 2019.

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common stock, par value $0.01 per share

 

PGTI

 

New York Stock Exchange, Inc.

 


PGT INNOVATIONS, INC.

TABLE OF CONTENTS

 

Form 10-Q for the Three and Six Months Ended June 29, 2019

 

 

 

 

 

 

 

Page

 

 

 

 

 

 

Number

Part I.

 

Financial Information

 

3

 

 

Item 1.

 

Condensed Consolidated Financial Statements (unaudited):

 

3

 

 

 

 

Condensed Consolidated Statements of Operations

 

3

 

 

 

 

Condensed Consolidated Statements of Comprehensive Income

 

4

 

 

 

 

Condensed Consolidated Balance Sheets

 

5

 

 

 

 

Condensed Consolidated Statements of Cash Flows

 

6

 

 

 

 

Condensed Consolidated Statements of Shareholders’ Equity

 

7

 

 

 

 

Notes to Condensed Consolidated Financial Statements

 

8

 

 

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

26

 

 

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

 

38

 

 

Item 4.

 

Controls and Procedures

 

38

 

 

 

 

 

 

 

Part II.

 

Other Information

 

39

 

 

Item 1.

 

Legal Proceedings

 

39

 

 

Item 1A.

 

Risk Factors

 

39

 

 

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

39

 

 

Item 3.

 

Defaults Upon Senior Securities

 

39

 

 

Item 4.

 

Mine Safety Disclosure

 

39

 

 

Item 5.

 

Other Information

 

39

 

 

Item 6.

 

Exhibits

 

40

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 


PART I — FINANCIAL INFORMATION

ITEM 1.  CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

PGT INNOVATIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

 

 

Three Months Ended

 

 

Six Months Ended

 

 

June 29,

 

 

June 30,

 

 

June 29,

 

 

June 30,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

(unaudited)

 

 

(unaudited)

 

Net sales

$

198,570

 

 

$

169,269

 

 

$

372,307

 

 

$

309,522

 

Cost of sales

 

125,630

 

 

 

109,322

 

 

 

238,097

 

 

 

204,802

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

72,940

 

 

 

59,947

 

 

 

134,210

 

 

 

104,720

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

44,026

 

 

 

32,581

 

 

 

88,040

 

 

 

61,238

 

Gains on sales of assets under APA

 

 

 

 

(2,551

)

 

 

 

 

 

(2,551

)

Income from operations

 

28,914

 

 

 

29,917

 

 

 

46,170

 

 

 

46,033

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

6,756

 

 

 

3,609

 

 

 

13,470

 

 

 

7,652

 

Debt extinguishment costs

 

 

 

 

 

 

 

 

 

 

3,079

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

22,158

 

 

 

26,308

 

 

 

32,700

 

 

 

35,302

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

5,113

 

 

 

3,760

 

 

 

7,398

 

 

 

5,414

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

17,045

 

 

$

22,548

 

 

$

25,302

 

 

$

29,888

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.29

 

 

$

0.45

 

 

$

0.43

 

 

$

0.60

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted

$

0.29

 

 

$

0.43

 

 

$

0.43

 

 

$

0.57

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

58,394

 

 

 

50,317

 

 

 

58,264

 

 

 

50,087

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

59,291

 

 

 

52,056

 

 

 

59,248

 

 

 

52,023

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

2


PGT INNOVATIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

 

 

Three Months Ended

 

 

Six Months Ended

 

 

June 29,

 

 

June 30,

 

 

June 29,

 

 

June 30,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

(unaudited)

 

 

(unaudited)

 

Net income

$

17,045

 

 

$

22,548

 

 

$

25,302

 

 

$

29,888

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss) before tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in fair value of derivatives

 

(1,542

)

 

 

(390

)

 

 

(947

)

 

 

(473

)

Reclassification to earnings

 

1,223

 

 

 

(43

)

 

 

2,138

 

 

 

(43

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss) before tax

 

(319

)

 

 

(433

)

 

 

1,191

 

 

 

(516

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax benefit (expense) related to components of

   other comprehensive income (loss)

 

82

 

 

 

111

 

 

 

(304

)

 

 

132

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss), net of tax

 

(237

)

 

 

(322

)

 

 

887

 

 

 

(384

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income

$

16,808

 

 

$

22,226

 

 

$

26,189

 

 

$

29,504

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

3


PGT INNOVATIONS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts)

(unaudited)

 

 

 

June 29,

 

 

December 29,

 

 

 

2019

 

 

2018

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

84,501

 

 

$

52,650

 

Accounts receivable, net

 

 

76,667

 

 

 

80,717

 

Inventories

 

 

45,726

 

 

 

44,666

 

Contract assets, net

 

 

9,605

 

 

 

6,757

 

Prepaid expenses

 

 

3,931

 

 

 

2,863

 

Other current assets

 

 

9,923

 

 

 

7,908

 

Total current assets

 

 

230,353

 

 

 

195,561

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

 

119,757

 

 

 

115,707

 

Operating lease right-of-use asset, net

 

 

28,706

 

 

 

 

Intangible assets, net

 

 

263,788

 

 

 

271,818

 

Goodwill

 

 

277,773

 

 

 

277,827

 

Other assets, net

 

 

1,158

 

 

 

1,240

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

921,535

 

 

$

862,153

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

70,477

 

 

$

68,557

 

Current portion of long-term debt

 

 

9

 

 

 

163

 

Current portion of operating lease liability

 

 

6,429

 

 

 

 

Total current liabilities

 

 

76,915

 

 

 

68,720

 

 

 

 

 

 

 

 

 

 

Long-term debt, less current portion

 

 

367,475

 

 

 

366,614

 

Operating lease liability, less current portion

 

 

25,298

 

 

 

 

Deferred income taxes

 

 

23,062

 

 

 

22,758

 

Other liabilities

 

 

14,410

 

 

 

18,517

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

507,160

 

 

 

476,609

 

 

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

 

 

Preferred stock; par value $.01 per share; 10,000 shares

   authorized; none outstanding

 

 

 

 

 

 

Common stock; par value $.01 per share; 200,000 shares authorized; 61,501 and

   60,729 shares issued and 58,536 and 58,082 shares outstanding at

 

 

 

 

 

 

 

 

   June 29, 2019 and December 29, 2018, respectively

 

 

615

 

 

 

607

 

Additional paid-in-capital

 

 

412,295

 

 

 

409,661

 

Accumulated other comprehensive loss

 

 

(2,178

)

 

 

(3,065

)

Retained earnings (accumulated deficit)

 

 

16,402

 

 

 

(8,900

)

Shareholders' equity

 

 

427,134

 

 

 

398,303

 

Less:  Treasury stock at cost

 

 

(12,759

)

 

 

(12,759

)

Total shareholders' equity

 

 

414,375

 

 

 

385,544

 

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

 

$

921,535

 

 

$

862,153

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

4


PGT INNOVATIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

 

 

Six Months Ended

 

 

 

June 29,

 

 

June 30,

 

 

 

2019

 

 

2018

 

 

 

(unaudited)

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income

 

$

25,302

 

 

$

29,888

 

Adjustments to reconcile net income to net cash

 

 

 

 

 

 

 

 

provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation

 

 

9,143

 

 

 

6,131

 

Amortization

 

 

8,030

 

 

 

3,318

 

Amortization of operating lease right-of-use asset

 

 

2,527

 

 

 

 

Provision for allowance for doubtful accounts

 

 

967

 

 

 

412

 

Stock-based compensation

 

 

2,276

 

 

 

1,198

 

Amortization of deferred financing costs and debt discount

 

 

861

 

 

 

1,165

 

Debt extinguishment costs

 

 

 

 

 

3,079

 

Gains on sales of assets

 

 

(19

)

 

 

(2,609

)

Change in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(2,079

)

 

 

(16,826

)

Inventories

 

 

(1,060

)

 

 

(3,152

)

Contract assets, net, prepaid expenses, other current and other assets

 

 

(2,758

)

 

 

(2,092

)

Change in operating lease liability

 

 

1,002

 

 

 

-

 

Accounts payable, accrued and other liabilities

 

 

391

 

 

 

19,362

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

 

44,583

 

 

 

39,874

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

(12,963

)

 

 

(14,892

)

Proceeds from sales of assets

 

 

19

 

 

 

5,820

 

 

 

 

 

 

 

 

 

 

Net cash used in investing activities

 

 

(12,944

)

 

 

(9,072

)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Payments of long-term debt

 

 

(154

)

 

 

(146

)

Payments of financing costs

 

 

 

 

 

(1,687

)

Purchases of treasury stock relating to tax withholdings on employee equity awards

 

 

(505

)

 

 

(638

)

Proceeds from exercise of stock options

 

 

840

 

 

 

1,561

 

Proceeds from issuance of common stock under employee

 

 

 

 

 

 

 

 

stock purchase plan (ESPP)

 

 

31

 

 

 

11

 

Other

 

 

 

 

 

(9

)

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) financing activities

 

 

212

 

 

 

(908

)

 

 

 

 

 

 

 

 

 

Net increase in cash and cash equivalents

 

 

31,851

 

 

 

29,894

 

Cash and cash equivalents at beginning of period

 

 

52,650

 

 

 

34,029

 

Cash and cash equivalents at end of period

 

$

84,501

 

 

$

63,923

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

5


PGT INNOVATIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

Retained

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Other

 

 

Earnings/

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

Paid-in

 

 

Comprehensive

 

 

(Accumulated

 

 

Treasury

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Loss

 

 

Deficit)

 

 

Stock

 

 

Total

 

THREE MONTHS ENDED JUNE 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at March 31, 2018

 

 

49,976,296

 

 

$

526

 

 

$

252,329

 

 

$

(62

)

 

$

(55,493

)

 

$

(12,759

)

 

$

184,541

 

Vesting of restricted stock

 

 

34,699

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grants of restricted stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

684

 

 

 

 

 

 

 

 

 

 

 

 

684

 

Exercise of stock options