- The document summarizes third quarter and nine month 2017 results for Ply Gem Holdings, Inc.
- In Q3 2017, net sales increased 6.5% to $564.7 million while adjusted EBITDA decreased to $77.1 million. Gross margin contracted 240 basis points to 23.4% due to higher commodity and freight costs.
- For the first nine months of 2017, net sales increased 6.2% to $1,539.4 million. Adjusted EBITDA increased slightly to $185.3 million as higher sales were offset by higher commodity and material costs.
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Pgem q3 2017 earnings slides final
1. Third Quarter & 2017
Nine Month Results
Gary E. Robinette
Chairman & Chief Executive Officer
Shawn K. Poe
Chief Financial Officer
2. PlyGem.com2
• Third Quarter Review & Nine Month Results Gary Robinette
• Financial Results by Segment Shawn Poe
• Margin and Growth Initiatives Gary Robinette
• Economic Outlook Gary Robinette
• Questions and Answers Gary Robinette & Shawn Poe
• Closing Remarks Gary Robinette
Agenda
3. PlyGem.com3
These slides and the accompanying oral discussion may contain “forward-looking statements” within the meaning of the Private Securities
Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that could cause the
actual results of Ply Gem Holdings, Inc. (the “Company”) to differ materially from the results expressed or implied, including: downturns or
negative trends in the home repair and remodeling or the new construction end markets, or the U.S. and Canadian economies or the
availability of consumer credit; competition from other building products manufacturers and alternative building materials; inability to
successfully develop new products or improve existing products; changes in the costs and availability of raw materials; consolidation and
further growth of our customers; loss of, or a reduction in orders from, any of our significant customers; inclement weather conditions;
increases in union organizing activity and work stoppages at our facilities or the facilities of our suppliers; our ability to employ, train and
retain qualified personnel at a competitive cost; claims arising from the operations of our various businesses prior to our acquisitions;
product liability claims, including class action claims and warranties, relating to the products we manufacture; litigation outside of product
liability claims; loss of certain key personnel; interruptions in deliveries of raw materials or finished goods; changes in building codes and
standards could increase the cost of our products, lower the demand for our products, or otherwise adversely affect our business;
environmental costs and liabilities; manufacturing or assembly realignments; threats to, or impairments of, our intellectual property rights;
increases in transportation, freight and fuel costs; changes in foreign currency exchange and interest rates; material non-cash impairment
charges; our significant amount of indebtedness; covenants in the ABL Facility, the credit agreement governing our Senior Secured Term
Loan Facility and the indenture governing the 6.50% Senior Notes; limitations on our net operating losses and payments under the tax
receivable agreement to our stockholders; failure to successfully consummate and integrate acquisitions; actual or perceived security
vulnerabilities or cyberattacks on our networks; failure to effectively manage labor inefficiencies associated with increased production and
new employees added to the Company; failure to generate sufficient cash to service all of our indebtedness and make capital
expenditures; control by the CI Partnerships; and the risks set forth in the Company’s filings with the Securities and Exchange
Commission. Consequently such forward-looking statements should be regarded as the Company’s current plans, estimates and beliefs.
Except as required by law, the Company does not undertake and specifically declines any obligation to publicly release the results of any
revisions to these forward-looking statements that may be made to reflect any future events or circumstances after the date of such
statements or to reflect the occurrence of anticipated or unanticipated events.
In addition, these slides and the accompanying oral discussion reference financial information determined by methods other than in
accordance with accounting principles generally accepted in the United States of America (“GAAP”), such as adjusted EBITDA. The
Company’s management uses these non-GAAP measures in its analysis of the Company’s performance. The Company believes that the
presentation of certain non-GAAP measures provides useful supplemental information that is essential to a proper understanding of the
operating results of the Company’s core business. These non-GAAP measures should not be viewed as a substitute for operating results
determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented
by other companies. A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure is
provided in the appendix to the slides and is included in our press release issued on November 6, 2017 and posted on www.plygem.com.
Legal Disclaimer
4. PlyGem.com4
Ply Gem Overview
• Leading Manufacturer of Exterior Building Products
• Comprehensive Product Portfolio with Strong Brand Recognition
• Multi-Channel Distribution Network Servicing a Broad Customer Base
• Balanced End Market Exposure Driven by Diversified Product Mix
• Highly Efficient, Low Cost Operating Platform
• Proven Track Record of Acquisition Integration & Cost Savings
Realization
• Strong Management Team with Significant Ownership
Platform Built for Growth and Operating Leverage
Repair and
Remodel
Leverage to New
Housing Starts
New Products and
Innovation Drive
Share Gains
M&A Opportunities
US
89%
Canada
11%
Siding
47%Windows
53%
(*) LTM September 30, 2017
(*)
(*)
5. PlyGem.com5
Third Quarter 2017 Highlights
($ in Millions) Q3 2017 Q3 2016
Net Sales
Y-O-Y Change
$564.7
6.5%
$530.4
Gross Profit
Gross Profit %
$132.0
23.4%
$136.8
25.8%
Operating Earnings
Y-O-Y Change
$61.9
(9.0%)
$68.0
Adj. EBITDA
As % of Net Sales
$77.1
13.7%
$82.5
15.6%
End Market Exposure – Q3 2017
New
Construction
54%
Home
Repair &
Remodel
46%
Key Highlights
• Sales increased $34.3M during the quarter. Our U.S.
businesses experienced an organic growth rate of 4.7%
which was primarily driven by increased demand for our
products within our Siding, Fencing and Stone segment
and our new construction windows and doors. Favorable
price and product mix provided a sales increase of $11.4M
within our segments. Including the impact of $2.1M in
favorable currency exchange rates and favorable pricing
product mix, Canadian sales increased $11.5M during the
quarter.
• Gross margin contracted 240 basis points primarily driven
by unfavorable commodity costs, mainly PVC resin and
aluminum, relative to Q3 2016 in our Siding, Fencing &
Stone segment, and unfavorable freight costs, partially
offset by higher average selling prices in our Siding,
Fencing & Stone and Windows and Doors segments. The
unfavorable commodity and freight costs were partially
attributed to Hurricanes Harvey and Irma.
• Adjusted EBITDA margin decreased by 190 basis points
due to unfavorable commodity and material costs and the
unfavorable impact from Hurricanes Harvey and Irma which
contributed to 40 basis points of the decrease, partially
offset by higher average selling prices in both of our
business segments.
• Q3 2017 LTM adjusted EBITDA of $230.2M.
Note: Certain amounts in this presentation have been subject to rounding adjustments. Accordingly, amounts shown as total may not be the arithmetic aggregation of the individual amounts that comprise or precede them.
6. PlyGem.com6
Third Quarter 2017 Highlights
Third Quarter Net Sales Performance Bridge ($ in Millions)
$564.7
4.2
$530.4
11.4
17.8 9.3
$400.0
$450.0
$500.0
$550.0
$600.0
3Q 2016 Net Sales Price/Mix U.S. Volume CAD Volume
& FX Impact
Hurricanes
Impact
3Q 2017 Net Sales
NetSales
Third Quarter Adjusted EBITDA Performance Bridge ($ in Millions)
$77.119.2 3.5
2.4
$82.5
11.4
8.3
$40.0
$60.0
$80.0
$100.0
$120.0
3Q 2016 Adj EBITDA Price/Mix Volume Material Costs /
Freight
Hurricanes
Impact / Other
Conversion / Fixed
Costs
3Q 2017 Adj EBITDA
Adj.EBITDA
7. PlyGem.com7
2017 Nine Month Highlights
($ in Millions) 9M 2017 9M 2016
Net Sales
Y-O-Y Change
$1,539.4
6.2%
$1,449.6
Gross Profit
Gross Profit %
$358.4
23.3%
$358.8
24.8%
Operating Earnings
Y-O-Y Change
$139.8
0.0%
$139.8
Adj. EBITDA
As % of Net Sales
$185.3
12.0%
$184.1
12.7%
End Market Exposure – 9M 2017
New
Construction
56%
Home
Repair &
Remodel
44%
Key Highlights
• Sales increase of $89.9M during the first nine months of
2017 was primarily due to organic growth in our U.S. and
Canadian businesses. Our U.S. and Canadian
businesses experienced organic growth rates of 6.0% and
14.4%, respectively, which was primarily driven by
increased demand for our products within our Siding,
Fencing and Stone segment and our new construction
windows and doors. Favorable price and product mix
provided a sales increase of $36.0M within our segments.
Including the impact of favorable currency exchange rates
and favorable price and product mix, Canadian sales
during the first nine-months increased $18.1M. These
sales drivers were partially offset by $6.2M resulting from
1 less shipping day in the first quarter compared to 2016
due to the Company’s fiscal calendar.
• Gross margin contracted 150 basis points primarily driven
by unfavorable commodity costs, mainly PVC resin and
aluminum, in our Siding, Fencing & Stone segment,
partially offset by higher average selling prices in our
Siding, Fencing & Stone and Windows and Doors
segments.
• Adjusted EBITDA increased $1.2M or 0.6% due to higher
sales levels within both of our segments partially offset by
unfavorable commodity and material costs, and the
unfavorable impact from Hurricanes Harvey and Irma.
8. PlyGem.com8
2017 Nine Month Highlights
2017 Nine Month Net Sales Performance Bridge ($ in Millions)
$1,539.4
6.2 4.2
$1,449.6
52.5
36.0 11.7
$1,200.0
$1,300.0
$1,400.0
$1,500.0
$1,600.0
9M 2016 Net Sales U.S. Volume Price/Mix CAD Volume
& FX Impact
Impact of
Shipping Days
Hurricanes
Impact
9M 2017 Net Sales
NetSales
2017 Nine Month Adjusted EBITDA Performance Bridge ($ in Millions)
$185.342.7
8.3 3.0 1.7
$184.1
36.0
20.9
$100.0
$140.0
$180.0
$220.0
$260.0
9M 2016 Adj EBITDA Price/Mix Volume Material Costs /
Freight
Conversion /
Fixed Costs
Hurricanes
Impact / Other
Impact of
Shipping Days
9M 2017 Adj EBITDA
Adj.EBITDA
9. PlyGem.com9
Window & Doors (W&D) Segment – Third Quarter
Third Quarter Results ($ in Millions)
$252.8 $245.5
$33.7
$26.0
Q3 2017 Q3 2016
Net Sales
U.S. Canada
$271.5
$286.5
Q3 2017 Q3 2016
U.S. 20.3% 20.3%
Canada 26.2% 24.2%
W&D Segment 21.0% 20.6%
Gross Margin %
Key Highlights
• Sales were favorable by $15.0M or 5.5% primarily driven by organic
growth of our U.S. new construction products and Canadian business and
favorable price and product mix. Our U.S. new construction business
increased $6.6M or 3.8%, while our U.S. repair & remodeling products
increased modestly $0.8M or 1.1%. Our Canadian business increased
$7.6M or 29.3% which included a favorable foreign currency exchange of
$1.0M. As a result of Hurricanes Harvey and Irma, our U.S. new
construction and repair & remodeling products incurred lost sales of
approximately $4.2M in the third quarter of 2017.
• Gross margin expanded by 40 basis points primarily driven by improved
pricing and product mix for our U.S. new construction products and
Canadian business, partially offset by increased commodity costs, mainly
PVC resin, aluminum and glass, increased freight costs and a deterioration
of gross margins in our U.S. repair and remodel products.
• SG&A expense increased $2.8M during the quarter primarily due to higher
sales. As a percent of sales, SG&A expense increased modestly 40 basis
points from 12.5% to 12.9%.
End Market Exposure – Q3 2017
New
construction
70%
Home repair
& remodel
30%
10. PlyGem.com10
W&D Segment Gross Margin – Third Quarter
20.6%
21.0%
1.7% 0.3%
2.2% 0.2%
15.0%
17.0%
19.0%
21.0%
23.0%
25.0%
3Q16
Gross Margin
Selling Price /
Product Mix
Conversion Costs
& Other
Commodity Costs /
Freight
Hurricane Impact 3Q17
Gross Margin
Quarterly Gross Margin Performance
• Selling price/product mix reflect
favorable product mix and impact
of selling price increases
implemented in 2017 for the U.S.
and Canada.
• Commodity costs unfavorable due
mainly to increasing PVC resin,
aluminum and glass costs.
• Hurricane impact relates to $4.2M
in lost sales, unfavorable
commodity and freight costs
attributed to Hurricanes Harvey and
Irma.
20.9%
15.4% 14.0% 15.4% 13.1% 13.8%
9.7%
12.9%
18.1% 19.8% 20.4%
1,046
622
445 471 431
535
618 648
715
782 836
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 3Q17 LTM
Historical Gross Margin Performance
Annual Gross Profit % U.S. SFHS - in thousands (*)
11. PlyGem.com11
Window & Doors (W&D) Segment – 2017 Nine Month
2017 Nine Month Results ($ in Millions)
$725.6 $700.8
$81.2
$69.0
9M 2017 9M 2016
Net Sales
U.S. Canada
$769.8
$806.8
9M 2017 9M 2016
U.S. 20.6% 20.1%
Canada 22.1% 19.0%
W&D Segment 20.8% 20.0%
Gross Margin %
Key Highlights
• Sales were favorable by $37.0M or 4.8% primarily driven by organic growth
of our U.S. new construction products and Canadian business, and favorable
price and product mix, partially offset by $3.6M resulting from 1 less shipping
day in the first nine months of 2017 compared to 2016 due to the Company’s
fiscal calendar. Our U.S. new construction business increased $31.1M, or
6.4%, which was partially offset by a $6.3M, or 3.0%, decrease in our repair
& remodeling products. Our Canadian business increased $12.2M, or 17.7%,
which included a favorable foreign currency exchange of $0.8M. As a result
of Hurricanes Harvey and Irma, our U.S. new construction and repair &
remodeling products incurred lost sales of approximately $4.2M in 2017.
• Gross margin expanded by 80 basis points primarily driven by improved
pricing and product mix for our U.S. new construction products and Canadian
business, partially offset by increased commodity costs, mainly PVC resin,
aluminum and glass, increased freight costs, and a deterioration of gross
margins in our U.S. repair and remodel products.
• SG&A expense increased $2.9M, however as a percent of sales, SG&A
expense decreased 30 basis points from 14.2% to 13.9% as a result of
improved leverage on the fixed component of SG&A expense.
End Market Exposure – 9M 2017
New
construction
72%
Home repair
& remodel
28%
12. PlyGem.com12
W&D Segment Gross Margin – 2017 Nine Month
20.0%
20.8%
1.8% 0.1%
2.7%
15.0%
17.0%
19.0%
21.0%
23.0%
25.0%
9M16
Gross Margin
Selling Price /
Product Mix
Material Costs /
Freight
Hurricane Impact 9M17
Gross Margin
2017 Nine Month Gross Margin Performance • Selling price/product mix reflect
favorable product mix and impact
of selling price increases
implemented in 2017 for the U.S.
and Canada.
• Commodity costs unfavorable due
mainly to increasing PVC resin,
aluminum and glass costs.
• Hurricane impact relates to $4.2M
in lost sales, unfavorable
commodity and freight costs
attributed to Hurricanes Harvey
and Irma.
13. PlyGem.com13
Siding, Fencing & Stone (SFS) Segment – Third Quarter
Third Quarter Results ($ in Millions)
$251.7 $236.3
$26.5
$22.6
Q3 2017 Q3 2016
Net Sales
U.S. Canada
$258.9
$278.2
Gross Margin %
Q3 2017 Q3 2016
U.S. 25.5% 31.5%
Canada 28.3% 28.9%
SFS Segment 25.8% 31.2%
Key Highlights
• Sales increase of $19.3M or 7.4% primarily driven by organic unit
growth of 6.2% and 4.9% in the U.S. and Canadian businesses,
respectively, and $3.7M of price and product mix, including
favorable foreign currency which impacted sales by $1.1M.
• Gross margin contracted by 540 basis points, primarily driven by
unfavorable commodity costs due mainly from PVC resin,
unfavorable by 7.7%, and aluminum, unfavorable by 24.0%, and
freight costs partially offset by realized selling price increases.
The unfavorable commodity and freight costs were partially
attributed to Hurricanes Harvey and Irma.
• SG&A expense decreased by $1.2M during the quarter due to
lower management incentive compensation expense. As a
percent of sales, SG&A expense decreased 100 basis points from
8.7% to 7.7%.
End Market Exposure – Q3 2017
New
construction
39%
Home repair
& remodel
61%
14. PlyGem.com14
SFS Segment Gross Margin – Third Quarter
31.2%
25.8%4.7%
1.3% 0.4%
1.0%
15.0%
20.0%
25.0%
30.0%
35.0%
3Q16
Gross Margin
Selling Price /
Product Mix
Commodity Costs /
Freight
Conversion Costs
& Other
Hurricane Impact 3Q17
Gross Margin
Quarterly Gross Margin Performance
• Selling price/product mix reflects
selling price increases announced
during 1Q17 and 2Q17.
• Commodity costs unfavorable due
mainly to increasing PVC resin,
unfavorable by 7.7%, and
aluminum costs, unfavorable by
24.0%.
• Hurricane impact relates to
unfavorable commodity and
freight costs attributed to
Hurricanes Harvey and Irma.
20.4% 18.4% 25.9% 25.7% 24.8% 27.4% 26.8% 26.1% 28.4% 29.3% 26.1%
.5208
.6200
.5288
.6458
.6971 .6975 .7134 .7534
.7250
.7617
.8200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 3Q17 LTM
Historical Gross Margin Performance
Annual Gross Profit % PVC Resin Price/lbs (*)
15. PlyGem.com15
Siding, Fencing & Stone (SFS) Segment – 2017 Nine Month
2017 Nine Month Results ($ in Millions)
$671.0
$623.4
$61.6
$56.3
9M 2017 9M 2016
Net Sales
U.S. Canada
$679.7
$732.6
Gross Margin %
9M 2017 9M 2016
U.S. 25.8% 30.6%
Canada 27.7% 26.9%
SFS Segment 26.0% 30.1%
Key Highlights
• Sales increase of $52.9M or 7.8% primarily driven by organic unit growth
of 5.6% and 4.7% in the U.S. and Canadian businesses, respectively, and
$9.4M of price and product mix, including the impact of favorable
foreign currency which impacted sales by $0.9M, partially offset by
$2.6M resulting from 1 less shipping day in the first half of 2017
compared to 2016 due to the Company’s fiscal calendar.
• Gross margin contracted by 410 basis points, primarily driven by
unfavorable commodity costs due mainly from PVC resin, unfavorable
by 10.3%, and aluminum, unfavorable by 21.9%, partially offset by
realized selling price increases. A portion of the unfavorable commodity
and freight costs were attributed to Hurricanes Harvey and Irma.
• SG&A expense increased slightly by $0.3M during the first nine months
of 2017 due to increased sales and marketing from the 7.8% sales
increase partially offset by lower management incentive compensation.
As a percent of sales, SG&A expense decreased 60 basis points from
10.0% to 9.4%.
End Market Exposure – 9M 2017
New
construction
40%
Home repair
& remodel
60%
16. PlyGem.com16
SFS Segment Gross Margin – 2017 Nine Month
30.1%
26.0%3.4%
1.4% 0.2%
0.9%
15.0%
20.0%
25.0%
30.0%
35.0%
9M16
Gross Margin
Selling Price /
Product Mix
Commodity Costs /
Freight
Conversion Costs
& Other
Hurricane Impact 9M17
Gross Margin
2017 Nine Month Gross Margin Performance • Selling price/product mix reflects
selling price increases announced
during 1Q17 and 2Q17.
• Commodity costs unfavorable
due mainly to increasing PVC
resin, unfavorable by 10.3%, and
aluminum costs, unfavorable by
21.9%.
• Hurricane impact relates to
unfavorable commodity and
freight costs attributed to
Hurricanes Harvey and Irma.
17. PlyGem.com17
($ in Millions) 2011 2012 2013 2014 2015 2016 3Q16 LTM 3Q17 LTM
Senior Notes $950.0 $1,000.0 $852.0 $650.0 $650.0 $650.0 $650.0 $650.0
Term Loan Facility - - - 426.8 422.5 258.2 359.3 255.0
ABL 55.0 15.0 - - - - - -
Total Debt $1,005.0 $1,015.0 $852.0 $1,076.8 $1,072.5 $908.2 $1,009.3 $905.0
Cash 11.7 27.2 69.8 33.2 109.4 52.0 62.7 28.4
Net Debt $993.3 $987.8 $782.2 $1,043.6 $963.1 $856.2 $946.6 $876.6
Adj. EBITDA $112.2 $126.8 $117.5 $124.2 $184.6 $229.0 $227.4 $230.2
Interest Coverage 1.2 1.3 1.4 1.9 3.1 3.9 3.8 4.1
Leverage Ratio 8.9 7.8 6.7 8.4 5.2 3.7 4.2 3.8
Historical Leverage Ratio
4.2
3.8
8.9
7.8
6.7
8.4
5.2
3.7
-
2.0
4.0
6.0
8.0
10.0
2011 2012 2013 2014 2015 2016 3Q16 LTM 3Q17 LTM
LeverageRatio
Note: On November 3, 2017, the Company made a $40.0M voluntary payment on the Term Loan Facility bringing
our cumulative payments on the Term Loan Facility to $200.0M since 2016.
18. PlyGem.com18
Margin Enhancements & Growth Initiatives
Selling Price Increases
✓ W&D Q1 2018 price increases were announced in October 2017. Selling price increases range
from 5% to 8%
✓ SFS Q1 2018 price increases for all vinyl products were announced in November 2017. Selling
price increases range from 8% to 10%
✓ SFS Q1 2018 price increases for all metal and metal accessory products were announced in
November 2017. Selling price increases range from 6% to 8%
Growth Initiatives
✓ Cross Selling Opportunities – Continue to integrate our extensive product categories across
our legacy customer base and acquired Simonton customer base
✓ Expand market penetration of Ply Gem’s adjacent products such as PVC trim, engineered
roofing and engineered stone
✓ Implementation of our 2x20 initiatives which is to produce a 2% incremental improvement of
our adjusted EBITDA margin by 2020
✓ Continued new product innovation through the Ply Gem Insight Center and Foundation Labs
19. PlyGem.com19
Economic Outlook & Guidance
Expect Continued Steady Growth in U.S. Housing Starts
✓ Expect a 2017 U.S. housing recovery growth of 6% to 8% in our markets
✓ Expect an overall moderate growth rate for big ticket R&R spend of approximately 3% in
2017
✓ Overall 2017 Canadian housing starts expected to be relatively flat compared to 2016
2017 EBITDA Guidance and Debt Leverage
✓ On November 3, 2017, the Company made a $40.0M voluntary payment on the Term
Loan Facility bringing our cumulative payments on the Term Loan Facility to $200.0M
since 2016
✓ Based on the forecasted growth of the U.S. housing market and R&R spend for the
remainder of 2017, the short-term headwinds associated with Hurricanes Harvey and
Irma, the impact of our enacted selling price increases and other margin enhancing
initiatives, we expect our Q4 2017 adjusted EBITDA to be in the range of $50M to $55M
which would equate to a full year 2017 adjusted EBITDA of $235M to $240M
21. PlyGem.com21
Third Quarter Adjusted EBITDA Reconciliation
(amounts in thousands)
For the three months ended
September 30, 2017
For the three months
ended October 1, 2016
Net income $27,534 $54,755
Interest expense, net 17,518 17,805
Provision (benefit) for income taxes 17,659 (49,128)
Depreciation and amortization 13,237 14,123
EBITDA $75,948 $37,555
Non cash loss (gain) on foreign currency transactions (810) 111
Customer inventory buybacks 1,089 334
Restructuring/integration expense 134 16
Litigation – class action charges, net 757 -
Loss on modification or extinguishment of debt - 2,251
Tax receivable agreement liability adjustment - 42,215
Adjusted EBITDA $77,118 $82,482
22. PlyGem.com22
Third Quarter EBITDA Adjustments By Segment (*)
(amounts in thousands)
For the three months ended
September 30, 2017
For the three months ended
October 1, 2016
SFS
Segment
W&D
Segment
Total
SFS
Segment
W&D
Segment
Total
Non cash loss (gain) on foreign currency
transactions
($75) ($735) ($810) ($58) $169 $111
Customer inventory buybacks 600 489 1,089 334 - 334
Restructuring/integration expense - 134 134 11 5 16
Litigation – class action charges, net - 82 82 - - -
$525 ($30) $495 $287 $174 $461
(*) Does not reflect unallocated and corporate EBITDA adjustments
23. PlyGem.com23
Nine Months Adjusted EBITDA Reconciliation
(amounts in thousands)
For the nine months ended
September 30, 2017
For the nine months
ended October 1, 2016
Net income $53,756 $68,824
Interest expense, net 51,770 55,012
Provision (benefit) for income taxes 35,882 (48,597)
Depreciation and amortization 39,792 42,466
EBITDA $181,200 $117,705
Non cash gain on foreign currency transactions (1,582) (728)
Customer inventory buybacks 2,287 1,401
Restructuring/integration expense 1,546 513
Litigation – class action charges, net 1,870 -
Tax receivable agreement liability adjustment - 60,606
Loss on modification or extinguishment of debt - 4,650
Adjusted EBITDA $185,321 $184,147
24. PlyGem.com24
Nine Months EBITDA Adjustments By Segment (*)
(amounts in thousands)
For the nine months ended
September 30, 2017
For the nine months ended
October 1, 2016
SFS
Segment
W&D
Segment
Total
SFS
Segment
W&D
Segment
Total
Non cash gain on foreign currency
transactions
($318) ($1,264) ($1,582) ($261) ($467) ($728)
Customer inventory buybacks 1,798 489 2,287 1,414 (13) 1,401
Restructuring/integration expense 348 134 482 190 323 513
Litigation – class action charges, net - 122 122 - - -
$1,828 ($519) $1,309 $1,343 ($157) $1,186
(*) Does not reflect unallocated and corporate EBITDA adjustments