PGT, Inc. (NASDAQ:PGTI) Q4 2017 Earnings Conference Call - Final Transcript

Feb 20, 2018 • 08:30 am ET


PGT, Inc. (NASDAQ:PGTI) Q4 2017 Earnings Conference Call - Final Transcript


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Good day and welcome to the PGT Innovations, Inc. Fourth Quarter 2017 Earnings Conference Call. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]

I'd now like to turn the conference over to Brad West, Chief Financial Officer. Please go ahead.

Brad West

Thank you, Nichole, and good morning everyone. Welcome to PGT Innovations' 2017 fourth quarter and fiscal year conference call. I am Brad West, the company's CFO, and I'm joined today by Jeff Jackson, our CEO and President. This morning, we are pleased to provide our 2017 fourth quarter and fiscal year results, as well as an outlook for 2018. We also have posted a presentation on the quarterly results to the Investor Relations portion of our website.

Before we begin our formal comments, I'd like to remind you that today's remarks contain forward-looking statements that fall within the meaning of the Private Securities Litigation Reform Act of 1995, including our 2018 financial performance outlook. These remarks involve risks, uncertainties and other factors that could cause actual results to differ materially. These factors are detailed in the company's earnings press release and in the Risk Factors section of our 2016 annual report on Form 10-K.

We undertake no obligation to publicly update or revise any forward-looking statements. You should also note that we'll report our results using non-GAAP measures, which we believe provide additional information for investors to help facilitate the comparison of past and present performance. A reconciliation of these non-GAAP measures to the GAAP counterparts is available in the Investor Relations section of our website.

Now, I'll turn the call over to our CEO, Jeff Jackson. Jeff?

Jeff Jackson

Thank you, Brad, and good morning everyone. Thanks for joining us for today's call. PGT Innovations delivered another solid year of growth and execution as we finished 2017 with a strong fourth quarter. I'm incredibly proud of our team's accomplishments. We achieved impressive results, captured increased demand and grew our market share gaining momentum each month after hurricane Irma hit in September.

Irma was a massive hurricane hitting our home state of Florida causing damage and disruption across our entire core market. Reports we have received from homeowners and customers confirm that our industry-leading products performed as promised, protecting life and property against this powerful storm. This is a testament to our commitment for over 37 years to produce high-quality products that are tested to meet some of the most stringent standards in the nation.

For the full year of 2017, we delivered sales of $511 million, adjusted EBITDA of $84.1 million and adjusted earnings per diluted share of $0.61. This reflects sales and adjusted EBITDA growth of more than 11% and EPS growth of more than 15%. Our adjusted EBITDA margin fell in line with prior year as gains from strong sales and improved operations were partially offset by normalized incentive compensation, brand mix and increased marketing investment of over $1 million made to capture heightened awareness post Irma.

Over the course of the year,