# EDGAR Filing Document

**Accession Number:** 0001354327
**File Stem:** 0000950170-23-003596
**Filing Date:** 2023-2
**Character Count:** 149277
**Document Hash:** 827311622bd9f34aa2ac9409c1c7a08b
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000950170-23-003596.hdr.sgml**: 20230222

**ACCESSION NUMBER**: 0000950170-23-003596

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 34

**CONFORMED PERIOD OF REPORT**: 20230222

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230222

**DATE AS OF CHANGE**: 20230222

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** PGT Innovations, Inc.
- **CENTRAL INDEX KEY:** 0001354327
- **STANDARD INDUSTRIAL CLASSIFICATION:** METAL DOORS, SASH, FRAMES, MOLDING & TRIM [3442]
- **IRS NUMBER:** 200634715
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-37971
- **FILM NUMBER:** 23650843

**BUSINESS ADDRESS:**
- **STREET 1:** 1070 TECHNOLOGY DRIVE
- **CITY:** NORTH VENICE
- **STATE:** FL
- **ZIP:** 34275
- **BUSINESS PHONE:** 941-480-1600

**MAIL ADDRESS:**
- **STREET 1:** 1070 TECHNOLOGY DRIVE
- **CITY:** NORTH VENICE
- **STATE:** FL
- **ZIP:** 34275

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PGT, Inc.
- **DATE OF NAME CHANGE:** 20060223

?xml version="1.0" encoding="ASCII"? 8-K

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549**

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**FORM** 8-K

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**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported):** February 22, 2023<br>

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PGT Innovations, Inc.

**(Exact name of Registrant as Specified in Its Charter)**

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| | | |
|:---|:---|:---|
| Delaware | 001-37971 | 20-0634715 |
| **(State or Other Jurisdiction<br>of Incorporation)** | **(Commission File Number)** | **(IRS Employer<br>Identification No.)** |
| 1070 Technology Drive |  |  |
| North Venice**,** Florida |  | 34275 |
| **(Address of Principal Executive Offices)** |  | **(Zip Code)** |

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**Registrant's Telephone Number, Including Area Code:** 941 480-1600<br>

**(Former Name or Former Address, if Changed Since Last Report)**

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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

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| | | |
|:---|:---|:---|
| **<br>Title of each class** | **Trading<br>Symbol(s)** | **<br>Name of each exchange on which registered** |
| Common stock, par value $0.01 per share | PGTI | The New York Stock Exchange |

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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

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 Section 13(a) of the Exchange Act. ☐

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**ITEM 2.02. Results of Operations and Financial Condition**

On February 22, 2023, PGT Innovations, Inc. (the "Company") issued a press release announcing its financial results for its fourth quarter and year ended December 31, 2022. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

**ITEM 7.01. Regulation FD Disclosure**

Also, on February 22, 2023, the Company posted an earnings presentation on its investor relations website at http://ir.pgtinnovations.com. The earnings presentation is being made available in connection with the Company's earnings conference call and audio webcast on February 22, 2023 at 10:30 a.m. E.T. The earnings presentation is furnished as Exhibit 99.2 to this Current Report on Form 8-K. The information on the Company's investor relations website is not incorporated by reference into this Form 8-K.

The information furnished in this Form 8-K, as well as Exhibit 99.1 and Exhibit 99.2 referenced herein, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act"), nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, or the Exchange Act, except as expressly set forth in such a filing.

**ITEM 9.01. Financial Statements and Exhibits**

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) | Exhibits | Exhibits |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibit No. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibit No. | Description |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>99.1</u>](pgti-ex99_1.htm) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>99.1</u>](pgti-ex99_1.htm) | [<u>Press release of PGT Innovations, Inc., dated February 22, 2023</u>](pgti-ex99_1.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>99.2</u>](pgti-ex99_2.htm) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>99.2</u>](pgti-ex99_2.htm) | [<u>Earnings presentation dated February 22, 2023</u>](pgti-ex99_2.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;104 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;104 | Cover Page Interactive Date File - the cover page XBRL tags are embedded within the Inline XBRL document |

---

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

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| | | | |
|:---|:---|:---|:---|
|  |  |  | PGT INNOVATIONS, INC. |
| Date: | February 22, 2023 | By:  | /s/ John Kunz |
|  |  |  | Name: John Kunz<br>Title: Senior Vice President and Chief Financial Officer |

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## Ex-99

**EXHIBIT 99.1**

![img100861753_0.jpg](img100861753_0.jpg)

**PGTI Reports Fourth Quarter and Fiscal Year 2022 Results,** 

**Provides First Quarter 2023 Guidance**

VENICE, Fla., February 22, 2023 – PGT Innovations, Inc. (NYSE: PGTI), a national leader in premium windows and doors, including impact-resistant products, garage doors, and products designed to unify indoor/outdoor living spaces, today announced financial results for its fourth quarter and fiscal year ended December 31, 2022.

**Financial Highlights for Fourth Quarter 2022** 

(All results reflect comparison to prior-year period; Cash on hand is compared to prior-year end)

• Net sales totaled $341 million, an increase of 12 percent (includes organic growth of 5 percent).

• Net income was $8 million, a decrease of 54 percent.

• Adjusted net income\* was $16 million, a decrease of 14 percent.

• Adjusted EBITDA\* was $48 million, on par with last year.

• Net income per common share attributable to common shareholders, diluted, was $0.18, a decrease of 25 percent.

• Adjusted net income per diluted share\* was $0.27, a decrease of 13 percent.

• Total liquidity at the end of the fourth quarter was $235 million, including cash of $67 million and revolver availability of $168 million.

**Financial Highlights for Fiscal Year 2022** 

(All results reflect comparison to prior-year period)

• Net sales totaled $1.49 billion, an increase of 28 percent (includes organic growth of 16 percent).

• Net income was $98 million, an increase of 180 percent.

• Adjusted net income\* was $116 million, an increase of 88 percent

• Adjusted EBITDA\* was $254 million, an increase of 50 percent.

• Net income per common share attributable to common shareholders, diluted, was $1.64, an increase of 264 percent.

• Adjusted net income per diluted share\* was $1.92, an increase of 86 percent.

• Cash flow from operations was $196 million, an increase of 208 percent.

**First Quarter 2023 Guidance**

• Net sales in the range of $370 million to $390 million.

• Adjusted EBITDA\* in the range of $60 million to $64 million.

\* Adjusted net income, Adjusted net income per diluted share and Adjusted EBITDA are non-GAAP measures. Please see "Use of Non-GAAP Financial Measures" below for more information.

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"We finished our fiscal year with another strong quarter. Our fourth quarter financial results, with year-over-year net sales growth of 12 percent, showed recovery from impacts of Hurricane Ian and the ransomware incident, and was driven by continued operational improvement across our portfolio of brands. We were able to offset new construction demand weakness from macro-economic headwinds, including higher inflation and interest rates through solid execution across the enterprise." said Jeff Jackson, President and Chief Executive Officer.

"Organic sales growth in the fourth quarter was 5 percent year-over-year, with our Western region growing 15 percent, and our Southeast region growing 2 percent. Our fourth quarter revenues were impacted by approximately $15 million due to the effects of Hurricane Ian and the ransomware incident. The suddenness of the two events impacted our ability to expand gross margin during the quarter, and we realized a year over year flat gross margin. In spite of the challenges during the fourth quarter, our team showed resilience and ended the quarter with some of the strongest performances for the year across our core businesses," added Jackson.

"We completed our acquisition of Martin Door during the fourth quarter, as noted on our third quarter call. We are making progress in integrating Martin across our dealer, distributor and direct-to-consumer channels and look forward to its contributions in the coming year," added Jackson.

"Over the past five years, we have expanded our geographic footprint and product lines to meet consumer demand with our acquisitions of Western Window Systems, New South, Eco, Anlin, and Martin. We believe our national footprint and depth of product offering provide a strong basis for future profitable growth. Going forward, we will be looking to maximize shareholder value through the return of capital with our recently announced share repurchase program. Our primary priority will continue to invest in our enterprise through high-return capital projects," concluded Jackson.

"In the fourth quarter of 2022, we generated $44 million of operating cash flow, ending the fiscal year with a cash balance $67 million," said John Kunz, Senior Vice President and Chief Financial Officer. "For the full year, we generated over $151 million in free cash flow, a great source to fund our capital priorities," added Kunz.

"The strong 28 percent full-year sales growth for 2022 was driven by operational improvements and the impact of price increases, offsetting a reduction in unit demand and backlog. Our organic backlog declined $126 million during the year. With the uncertainty in macro-economic conditions, higher interest rates and an inflationary environment, we are issuing first quarter 2023 guidance for net sales in the range of $370 million to $390 million, and Adjusted EBITDA in the range of $60 million to $64 million," concluded Kunz.

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| | | |
|:---|:---|:---|
| ($ in millions) | **Q1 2023 Guidance\*<br>(as of 02/22/2023)** | **Q1 2023 Guidance\*<br>(as of 02/22/2023)** |
| Net sales | $370 | $390 |
| Adj. EBITDA\*\* | $60 | $64 |
| \* Q1 2023 guidance includes Eco at 100% contribution.<br> \*\* Adjusted EBITDA is a non-GAAP measure. Please see "Use of Non-GAAP Measures" below. | \* Q1 2023 guidance includes Eco at 100% contribution.<br> \*\* Adjusted EBITDA is a non-GAAP measure. Please see "Use of Non-GAAP Measures" below. | \* Q1 2023 guidance includes Eco at 100% contribution.<br> \*\* Adjusted EBITDA is a non-GAAP measure. Please see "Use of Non-GAAP Measures" below. |

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**Conference Call**

PGT Innovations will host a conference call today at 10:30 a.m. The conference call will be available at the same time through the Investor Relations section of the PGT Innovations, Inc. website, http://ir.pgtinnovations.com/events.cfm.

To participate in the teleconference, kindly dial into the call about 10 minutes before the start time: 833-316-0547 (U.S. toll-free) and 412-317-5728 (International). A replay of the call will be available within approximately one hour after the scheduled end of the call on February 22, 2023, through approximately 12:30 p.m. on March 1, 2023. To access the replay, dial 877-344-7529 (U.S. Only toll-free), 855-669-9658 (Canada Only toll-free) and 412-317-0088 (International) and refer to pass code 3471776. Other international replay dial-in numbers can be obtained at: https://services.choruscall.com/ccforms/replay.html

You may join the conference online by using the following link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=6voKyZcY

**About PGT Innovations, Inc.**

PGT Innovations manufactures and supplies premium windows, doors, and garage doors. Its highly engineered and technically advanced products can withstand some of the toughest weather conditions on Earth and are revolutionizing the way people live by unifying indoor and outdoor living spaces. PGT Innovations creates value through deep customer relationships, understanding the unstated needs of the markets it serves, and a drive to develop category-defining products. PGT Innovations is also the nation's largest manufacturer of impact-resistant windows and doors and holds the leadership position in its primary market.

The PGT Innovations' family of brands include CGI®, PGT® Custom Windows and Doors, WinDoor®, Western Window Systems, Anlin Windows & Doors, Eze-Breeze®, NewSouth Window Solutions, Martin Door, and a 75 percent ownership stake in Eco Window Systems®. The company's brands, in their respective markets, are a preferred choice of architects, builders, and homeowners throughout North America and the Caribbean. Their high-quality products are available in custom and standard sizes with massive dimensions that allow for unlimited design possibilities in residential, multi-family, and commercial projects. For additional information, visit https://pgtinnovations.com/.

**Forward-Looking Statements**

This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "assume," "believe," "could," "estimate," "expect," "guidance," "intend," "many," "positioned," "potential," "project," "think," "should," "target," "will," "would" and similar references to future periods. Examples of forward-looking statements include, among others, statements we make regarding our acquisition of Martin Door Holdings, Inc. ("Martin"); our national footprint and depth of product offering providing a strong basis for growth; our share-repurchase program; and our net sales and Adjusted EBITDA guidance.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the

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future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following:

• the impact of the COVID-19 pandemic (the "COVID-19 pandemic" or "Pandemic") and related measures taken by governmental or regulatory authorities to combat the Pandemic, including the impact of the Pandemic and these measures on the economies and demand for our products in the states where we sell them, and on our customers, suppliers, labor force, business, operations and financial performance;

• unpredictable weather and macroeconomic factors that may negatively impact the repair and remodel and new construction markets and the construction industry generally, especially in the state of Florida and the western United States, where the substantial portion of our sales are currently generated, and in the U.S. generally;

• changes in raw material prices, especially for aluminum, glass, vinyl, and steel, including, price increases due to the implementation of tariffs and other trade-related restrictions, Pandemic-related supply chain interruptions, or interruptions from the conflict in Ukraine;

• our dependence on a limited number of suppliers for certain of our key materials;

• our dependence on our impact-resistant product lines, which increased with the acquisition of Eco Enterprises, LLC ("Eco"), and contemporary indoor/outdoor window and door systems, and on consumer preferences for those types and styles of products;

• the effects of increased expenses or unanticipated liabilities incurred as a result of, or due to activities related to, our recent acquisitions, including our acquisitions of Martin and Anlin Windows & Doors ("Anlin");

• our level of indebtedness, which increased in connection with our recent acquisitions, including our acquisitions of Martin and Anlin;

• increases in credit losses from obligations owed to us by our customers in the event of a downturn in the home repair and remodel or new home construction channels in our core markets and our inability to collect such obligations from such customers;

• the risks that the anticipated cost savings, synergies, revenue enhancement strategies and other benefits expected from our acquisitions of Martin and Anlin may not be fully realized or may take longer to realize than expected or that our actual integration costs may exceed our estimates;

• increases in transportation costs, including increases in fuel prices;

• our dependence on our limited number of geographically concentrated manufacturing facilities, which increased further due to our acquisition of Eco;

• sales fluctuations to and changes in our relationships with key customers;

• federal, state and local laws and regulations, including unfavorable changes in local building codes and environmental and energy code regulations;

• risks associated with our information technology systems, including cybersecurity-related risks, such as unauthorized intrusions into our systems by "hackers" and theft of data and

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information from our systems, and the risks that our information technology systems do not function as intended or experience temporary or long-term failures to perform as intended;

• product liability and warranty claims brought against us;

• in addition to our acquisitions of Martin and Anlin, our ability to successfully integrate businesses we may acquire in the future, or that any business we acquire may not perform as we expected when we acquired it; and

• the other risks and uncertainties discussed under "Risk Factors" in Part I, Item 1A of our Annual Report on Form 10-K/A for the year ended January 1, 2022, and our other filings with the Securities and Exchange Commission.

Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

**Use of Non-GAAP Financial Measures**

This press release and the financial schedules include financial measures and terms not calculated in accordance with U.S. generally accepted accounting principles (GAAP). Management believes that presentation of non-GAAP measures such as Adjusted net income, Adjusted net income per share, and Adjusted EBITDA provides investors and analysts with an alternative method for assessing our operating results in a manner that enables investors and analysts to more thoroughly evaluate our current performance compared to past performance. However, these measures do not provide a complete picture of our operations. Management also believes these non-GAAP measures provide investors with a better baseline for assessing our future earnings potential. The non-GAAP measures included in this press release are provided to give investors access to types of measures that we use in analyzing our results, and for internal planning and forecasting purposes.

Adjusted net income consists of GAAP net income adjusted for the items included in the accompanying reconciliation. Adjusted net income per share consists of GAAP net income per share adjusted for the items included in the accompanying reconciliation.

Adjusted EBITDA consists of net income, adjusted for the items included in the accompanying reconciliation. We believe that Adjusted EBITDA provides useful information to investors and analysts about the Company's performance because they eliminate the effects of period-to-period changes in taxes, costs associated with capital investments and interest expense. Adjusted EBITDA does not give effect to the cash the Company must use to service its debt or pay its income taxes and thus does not reflect the actual funds generated from operations or available for capital investments.

Our calculations of Adjusted net income and Adjusted net income per share, and Adjusted EBITDA are not necessarily comparable to calculations performed by other companies and reported as similarly titled measures. These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP but should not be considered a substitute for or superior to GAAP measures. Schedules that reconcile Adjusted net income, Adjusted net income per share, and Adjusted EBITDA to GAAP net income are included in the financial schedules accompanying this release.

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We are not able to provide a reconciliation of projected Adjusted EBITDA to the most directly comparable expected GAAP results due to the unknown effect, timing and potential significance of the effects of legal matters, tax considerations, and income and expense from changes in fair value of contingent consideration from acquisitions. Expenses associated with legal matters, tax consequences, and income and expense from changes in fair value of contingent consideration from acquisitions have in the past, and may in the future, significantly affect GAAP results in a particular period.

SOURCE: PGT Innovations, Inc.

**PGT Innovations Contacts:**

**Investor Relations**: **Media Relations**:

John Kunz, 941-480-1600 Stephanie Cz, 941-480-1600

Senior Vice President and CFO Corporate Communications Manager

JKunz@PGTInnovations.com

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| | | | | |
|:---|:---|:---|:---|:---|
| **PGT INNOVATIONS, INC.** | **PGT INNOVATIONS, INC.** | **PGT INNOVATIONS, INC.** | **PGT INNOVATIONS, INC.** | **PGT INNOVATIONS, INC.** |
| **CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS** | **CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS** | **CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS** | **CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS** | **CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS** |
| **(unaudited - in thousands, except per share amounts)** | **(unaudited - in thousands, except per share amounts)** | **(unaudited - in thousands, except per share amounts)** | **(unaudited - in thousands, except per share amounts)** | **(unaudited - in thousands, except per share amounts)** |
|  | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** |
|  | **Dec. 31,** | **Jan. 1,** | **Dec. 31,** | **Jan. 1,** |
|  | **2022** | **2022** | **2022** | **2022** |
| Net sales | $340934 | $304441 | $1491954 | $1161464 |
| Cost of sales | 219790 | 196116 | 921285 | 757965 |
| &nbsp;&nbsp;Gross profit | 121144 | 108325 | 570669 | 403499 |
| Selling, general and administrative expenses | 95100 | 78937 | 402886 | 303043 |
| Impairment of trade name | 7423 |  | 7423 |  |
| &nbsp;&nbsp;Income from operations | 18621 | 29388 | 160360 | 100456 |
| Interest expense, net | 7755 | 7061 | 28879 | 30029 |
| Debt extinguishment costs | 410 |  | 410 | 25472 |
| &nbsp;&nbsp;Income before income taxes | 10456 | 22327 | 131071 | 44955 |
| Income tax expense | 2756 | 5499 | 32666 | 9759 |
| &nbsp;&nbsp;Net income | 7700 | 16828 | 98405 | 35196 |
| Less: Net income attributable to redeemable <br> non-controlling interest | (189) | (662) | (1523) | (2318) |
| &nbsp;&nbsp;Net income attributable to the Company | $7511 | $16166 | $96882 | $32878 |
| Calculation of net income per common share <br> attributable to PGT Innovations, Inc. <br> common shareholders: |  |  |  |  |
| &nbsp;&nbsp;Net income attributable to the Company | $7511 | $16166 | $96882 | $32878 |
| Change in redemption value of redeemable <br> non-controlling interest | 3514 | (1553) | 2000 | (6081) |
| &nbsp;&nbsp;Net income attributable to PGT Innovations, <br> Inc. common shareholders | $11025 | $14613 | $98882 | $26797 |
| Net income per common share attributable to <br> PGT Innovations, Inc. common shareholders: |  |  |  |  |
| &nbsp;&nbsp;Basic | $0.18 | $0.24 | $1.65 | $0.45 |
| &nbsp;&nbsp;Diluted | $0.18 | $0.24 | $1.64 | $0.45 |
| Weighted average number of common shares outstanding: |  |  |  |  |
| &nbsp;&nbsp;Basic | 59980 | 59646 | 59926 | 59518 |
| &nbsp;&nbsp;Diluted | 60441 | 60172 | 60319 | 60058 |

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| | | |
|:---|:---|:---|
| **PGT INNOVATIONS, INC.** | **PGT INNOVATIONS, INC.** | **PGT INNOVATIONS, INC.** |
| **CONDENSED CONSOLIDATED BALANCE SHEETS** | **CONDENSED CONSOLIDATED BALANCE SHEETS** | **CONDENSED CONSOLIDATED BALANCE SHEETS** |
| **(unaudited - in thousands)** | **(unaudited - in thousands)** | **(unaudited - in thousands)** |
|  | **December 31,** | **January 1,** |
|  | **2022** | **2022** |
| **ASSETS** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;Cash and cash equivalents | $66548 | $96146 |
| &nbsp;&nbsp;Accounts receivable, net | 160107 | 141221 |
| &nbsp;&nbsp;Inventories | 112672 | 91440 |
| &nbsp;&nbsp;Contract assets, net | 47919 | 55239 |
| &nbsp;&nbsp;Prepaid expenses and other current assets | 28295 | 37712 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 415541 | 421758 |
| Property, plant and equipment, net | 208354 | 185266 |
| Operating lease right-of-use asset, net | 104121 | 91162 |
| Intangible assets, net | 447052 | 394525 |
| Goodwill | 460415 | 364598 |
| Other assets, net | 4766 | 3301 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total assets | $1640249 | $1460610 |
| **LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST,** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**AND SHAREHOLDERS' EQUITY** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;Accounts payable and accrued expenses | $168961 | $122681 |
| &nbsp;&nbsp;Current portion of operating lease liability | 16393 | 13180 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 185354 | 135861 |
| Long-term debt | 642134 | 625655 |
| Operating lease liability, less current portion | 95159 | 83903 |
| Deferred income taxes, net | 47407 | 37489 |
| Other liabilities | 7459 | 11742 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 977513 | 894650 |
| Commitments and contingencies |  |  |
| Redeemable non-controlling interest | 34721 | 36863 |
| Total shareholders' equity | 628015 | 529097 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities, redeemable non-controlling interest <br> and shareholders' equity | $1640249 | $1460610 |

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| | | |
|:---|:---|:---|
| **PGT INNOVATIONS, INC.** | **PGT INNOVATIONS, INC.** | **PGT INNOVATIONS, INC.** |
| **CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS** | **CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS** | **CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS** |
| **(unaudited - in thousands)** | **(unaudited - in thousands)** | **(unaudited - in thousands)** |
|  | **Year Ended** | **Year Ended** |
|  | **December 31,** | **January 1,** |
|  | **2022** | **2022** |
|  | (unaudited) | (unaudited) |
| **Cash flows from operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | $98405 | $35196 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 34048 | 30487 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization | 26150 | 21082 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment of trade name | 7423 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other asset impairments | 2131 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for allowance for credit losses | 10979 | 3834 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 9670 | 7819 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred financing costs, debt discount and premium | 1242 | 978 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt extinguishment costs | 410 | 25472 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | (11340) | 7632 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on sales of assets | (240) | 261 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in operating assets and liabilities (net of effects of acquisitions): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (20622) | (34390) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | (12017) | (15984) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contract assets, net, prepaid expenses, other current and other assets | 12826 | (5958) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable, accrued and other liabilities | 37309 | (12750) |
| Net cash provided by operating activities | 196374 | 63679 |
| **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of property, plant and equipment | (45377) | (33424) |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment in and acquisition of business | (188580) | (220676) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sales of assets | 37 | 187 |
| Net cash used in investing activities | (233920) | (253913) |
| **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Payment of fair value of contingent consideration in Anlin Acquisition | (2362) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds of amounts drawn from revolving credit facility | 160000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments of borrowing under revolving credit facility | (83648) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of senior notes |  | 638300 |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments of senior notes |  | (425000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Payment of call-premium on redemption of senior notes |  | (21518) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of term loan debt |  | 60000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments of term loan debt | (60000) | (54000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments of financing costs | (1526) | (10675) |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of treasury stock under repurchase program | (1565) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of treasury stock relating to tax withholdings <br> on employee equity awards | (1888) | (1648) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from exercise of stock options |  | 138 |
| &nbsp;&nbsp;&nbsp;&nbsp;Distribution to redeemable non-controlling interest | (1665) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of common stock under ESPP | 602 | 463 |
| Net cash provided by financing activities | 7948 | 186060 |
| Net decrease in cash and cash equivalents | (29598) | (4174) |
| Cash and cash equivalents at beginning of period | 96146 | 100320 |
| Cash and cash equivalents at end of period | $66548 | $96146 |

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **PGT INNOVATIONS, INC.** | **PGT INNOVATIONS, INC.** | **PGT INNOVATIONS, INC.** | **PGT INNOVATIONS, INC.** | **PGT INNOVATIONS, INC.** | **PGT INNOVATIONS, INC.** | **PGT INNOVATIONS, INC.** | **PGT INNOVATIONS, INC.** | **PGT INNOVATIONS, INC.** |
| **RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO THEIR** | **RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO THEIR** | **RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO THEIR** | **RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO THEIR** | **RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO THEIR** | **RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO THEIR** | **RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO THEIR** | **RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO THEIR** | **RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO THEIR** |
| **MOST DIRECTLY COMPARABLE GAAP EQUIVALENTS** | **MOST DIRECTLY COMPARABLE GAAP EQUIVALENTS** | **MOST DIRECTLY COMPARABLE GAAP EQUIVALENTS** | **MOST DIRECTLY COMPARABLE GAAP EQUIVALENTS** | **MOST DIRECTLY COMPARABLE GAAP EQUIVALENTS** | **MOST DIRECTLY COMPARABLE GAAP EQUIVALENTS** | **MOST DIRECTLY COMPARABLE GAAP EQUIVALENTS** | **MOST DIRECTLY COMPARABLE GAAP EQUIVALENTS** | **MOST DIRECTLY COMPARABLE GAAP EQUIVALENTS** |
| **(unaudited - in thousands, except per share amounts and percentages)** | **(unaudited - in thousands, except per share amounts and percentages)** | **(unaudited - in thousands, except per share amounts and percentages)** | **(unaudited - in thousands, except per share amounts and percentages)** | **(unaudited - in thousands, except per share amounts and percentages)** | **(unaudited - in thousands, except per share amounts and percentages)** | **(unaudited - in thousands, except per share amounts and percentages)** | **(unaudited - in thousands, except per share amounts and percentages)** | **(unaudited - in thousands, except per share amounts and percentages)** |
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** | **Year Ended** | **Year Ended** |
|  | **Dec. 31,** | **Dec. 31,** | **Jan. 1,** | **Jan. 1,** | **Dec. 31,** | **Dec. 31,** | **Jan. 1,** | **Jan. 1,** |
|  | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** | **2022** |
| **Reconciliation to Adjusted Net Income and** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Adjusted Net Income per share - diluted:** |  |  |  |  |  |  |  |  |
| Net income | $| 7700 | $| 16828 | $| 98405 | $| 35196 |
| Reconciling items: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset impairment charges (1) |  | - |  | - |  | 2131 |  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;WinDoor trade name impairment charge (2) |  | 7423 |  | - |  | 7423 |  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Cyberattack recovery costs (3) |  | 415 |  | - |  | 415 |  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to contingent consideration (4) |  | 381 |  | - |  | 5432 |  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Hurricane Ian-related costs (5) |  | 20 |  | - |  | 1868 |  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax gross-up payment (6) |  | (59) |  | - |  | 368 |  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;CGI Commercial relocation costs (7) |  | - |  | 602 |  | 277 |  | 602 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition-related costs (8) |  | 3523 |  | 736 |  | 4773 |  | 2443 |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt extinguishment costs (9) |  | 410 |  | - |  | 410 |  | 25472 |
| &nbsp;&nbsp;&nbsp;&nbsp;Business wind-down costs (10) |  | - |  | - |  | - |  | 4197 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pandemic-related costs (11) |  | - |  | - |  | - |  | 1041 |
| &nbsp;&nbsp;&nbsp;&nbsp;Product line rationalization and transition costs (12) |  | 682 |  | 1300 |  | 682 |  | 1300 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax effect of reconciling items |  | (4351) |  | (650) |  | (6194) |  | (8482) |
| Adjusted net income | $| 16144 | $| 18816 | $| 115990 | $| 61769 |
| Weighted-average diluted shares |  | 60441 |  | 60172 |  | 60319 |  | 60058 |
| Adjusted net income per share - diluted | $| 0.27 | $| 0.31 | $| 1.92 | $| 1.03 |
| **Reconciliation to Adjusted EBITDA:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization expense | $| 15114 | $| 14105 | $| 60198 | $| 51569 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense, net |  | 7755 |  | 7061 |  | 28879 |  | 30029 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense |  | 2756 |  | 5499 |  | 32666 |  | 9759 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reversal of tax effect of reconciling items for <br> adjusted net income above |  | 4351 |  | 650 |  | 6194 |  | 8482 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense |  | 2032 |  | 2071 |  | 9670 |  | 7819 |
| Adjusted EBITDA | $| 48152 | $| 48202 | $| 253597 | $| 169427 |
| Adjusted EBITDA as percentage of net sales | 14.1% | 14.1% | 15.8% | 15.8% | 17.0% | 17.0% | 14.6% | 14.6% |

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(1) Represents write-offs of property, equipment and other impaired assets, classified as selling, general and administrative expense in the accompanying condensed statement of operations for the three-months and year ended December 31, 2022.

(2) Represents impairment charge relating to our WinDoor trade name classified as impairment of trade name in the accompanying condensed statement of operations for the three-months and year ended December 31, 2022.

(3) Represents cyberattack recovery costs, classified as selling, general and administrative expense in the accompanying condensed statement of operations for the three-months and year ended December 31, 2022. We previously disclosed this event by Current Report on Form 8-K, filed with the SEC on November 7, 2022.<br>

(4) Represents adjustments to contingent consideration associated with our Anlin Acquisition, classified as selling, general and administrative expenses in the accompanying consolidated statement of operations for the three-months and year ended December 31, 2022.

(5) Represents disruption and recovery costs caused by Hurricane Ian in late-September 2022, of which $1.1 million is classified within cost of sales, and $747 thousand is classified within selling, general and administrative expenses in the year ended December 31, 2022.<br>

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(6) Represents tax gross-up payment required to be made to the non-controlling interest relating to our acquisition of Eco, which we initially estimated to be $1.5 million, but which was ultimately determined to be $1.8 million, a difference of $368 thousand, which is classified within selling, general and administrative expenses in the year ended December 31, 2022.<br>

(7) Represents additional costs relating to the relocation of our CGI Commercial business to a new location in the Miami, FL area, being shared with our Eco Enterprises entity, classified as cost of sales in the accompanying consolidated statement of operations for the year ended December 31, 2022.

(8) In 2022, represents costs relating to the Martin acquisition. In 2021, represents costs relating to our acquisitions of Eco and Anlin. These costs are classified within selling, general and administrative expenses in the years ended December 31, 2022, and January 1, 2022, respectively.

(9) In 2022, represents debt extinguishment costs relating to the refinancing of our 2016 Credit Agreement and repayment, in full, of the then existing term loan. In 2021, represents debt extinguishment costs relating to the prepayment of our $425 million of 6.750% senior notes due 2026, and the prepayment of our $54 million term loan A facility, which was due in 2022. Of the $25.5 million of debt extinguishment costs, $21.5 million represents a 5.063% call premium paid for prepaying the $425 million of 6.750% senior notes, and $4.0 million represents the net write-offs of deferred financing premiums, costs, fees and original issue discounts that existed at the time of these events. These costs are classified as debt extinguishment costs in the accompanying statement of operations for the years ended December 31, 2022, and January 1, 2022, respectively.<br>

(10) Represents incremental costs related to the wind-down of our commercial business acquired in the New South acquisition. Of the $4.2 million of these costs, $2.7 million are classified as cost of sales, and $1.5 million are classified as selling, general and administrative expenses in the accompanying condensed consolidated statement of operations for the year ended January 1, 2022. A portion of these costs are being recovered through insurance.<br>

(11) Represents incremental costs incurred relating to the coronavirus pandemic and resurgence of its Delta and Omicron variants in 2021, including cleaning and sanitizing costs for the protection of the health of our employees and safety of our facilities, as well as costs of lost productivity from employee quarantines and testing, classified within selling, general and administrative expenses for the year ended January 1, 2022.<br>

(12) Represents costs relating to product line rationalizations and transitions, classified within cost of sales for the years ended December 31, 2022, and January 1, 2022, respectively.

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## Ex-99

![Slide 1](pgti-ex99_2s1.jpg)

FOURTH quarter 2022 Financial results DECEMBER 31, 2022 EXHIBIT 99.2

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![Slide 2](pgti-ex99_2s2.jpg)

FORWARD LOOKING STATEMENTS This presentation contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "assume," "believe," "could," "estimate," "expect," "guidance," "intend," "many," "positioned," "potential," "project," "think," "should," "target," "will," "would" and similar references to future periods. Examples of forward-looking statements include, among others, statements we make regarding our acquisition or Martin Door Holdings, Inc. ("Martin"); our national footprint and depth of product offering providing a strong basis for growth; our share-repurchase program; and our net sales and Adjusted EBITDA guidance. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: the impact of the COVID-19 pandemic (the "COVID-19 pandemic" or "Pandemic") and related measures taken by governmental or regulatory authorities to combat the Pandemic, including the impact of the Pandemic and these measures on the economies and demand for our products in the states where we sell them, and on our customers, suppliers, labor force, business, operations and financial performance; unpredictable weather and macroeconomic factors that may negatively impact the repair and remodel and new construction markets and the construction industry generally, especially in the state of Florida and the western United States, where the substantial portion of our sales are currently generated, and in the U.S. generally; changes in raw material prices, especially for aluminum, glass, vinyl, and steel, including, price increases due to the implementation of tariffs and other trade-related restrictions, Pandemic-related supply chain interruptions, or interruptions from the conflict in Ukraine; our dependence on a limited number of suppliers for certain of our key materials; our dependence on our impact-resistant product lines, which increased with the acquisition of Eco Enterprises, LLC ("Eco"), and contemporary indoor/outdoor window and door systems, and on consumer preferences for those types and styles of products; the effects of increased expenses or unanticipated liabilities incurred as a result of, or due to activities related to, our recent acquisitions, including our acquisitions of Martin and Anlin Windows & Doors ("Anlin"); our level of indebtedness, which increased in connection with our recent acquisitions, including our acquisitions of Martin and Anlin; increases in credit losses from obligations owed to us by our customers in the event of a downturn in the home repair and remodel or new home construction channels in our core markets and our inability to collect such obligations from such customers; the risks that the anticipated cost savings, synergies, revenue enhancement strategies and other benefits expected from our acquisitions of Martin and Anlin may not be fully realized or may take longer to realize than expected or that our actual integration costs may exceed our estimates; increases in transportation costs, including increases in fuel prices; our dependence on our limited number of geographically concentrated manufacturing facilities, which increased further due to our acquisition of Eco; sales fluctuations to and changes in our relationships with key customers; federal, state and local laws and regulations, including unfavorable changes in local building codes and environmental and energy code regulations; risks associated with our information technology systems, including cybersecurity-related risks, such as unauthorized intrusions into our systems by "hackers" and theft of data and information from our systems, and the risks that our information technology systems do not function as intended or experience temporary or long-term failures to perform as intended; product liability and warranty claims brought against us; in addition to our acquisitions of Martin and Anlin, our ability to successfully integrate businesses we may acquire in the future, or that any business we acquire may not perform as we expected when we acquired it; and the other risks and uncertainties discussed under "Risk Factors" in Part I, Item 1A of our Annual Report on Form 10-K/A for the year ended January 1, 2022, and our other filings with the Securities and Exchange Commission. Any forward-looking statement made by us in this presentation is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

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![Slide 3](pgti-ex99_2s3.jpg)

Use of Non-GAAP Financial Measures This earnings presentation and related financial schedules include financial measures and terms not calculated in accordance with U.S. generally accepted accounting principles (GAAP). Management believes that presentation of non-GAAP measures such as Adjusted net income, Adjusted net income per share, Adjusted EBITDA, and free cash flow provides investors and analysts with an alternative method for assessing our operating results in a manner that enables investors and analysts to more thoroughly evaluate our current performance compared to past performance. However, these measures do not provide a complete picture of our operations. Management also believes these non-GAAP measures provide investors with a better baseline for assessing our future earnings potential. The non-GAAP measures included in this earnings presentation are provided to give investors access to types of measures that we use in analyzing our results, and for internal planning and forecasting purposes. Adjusted net income consists of GAAP net income adjusted for the items included in the accompanying reconciliation. Adjusted net income per share consists of GAAP net income per share adjusted for the items included in the accompanying reconciliation. Adjusted EBITDA consists of net income, adjusted for the items included in the accompanying reconciliation. We believe that adjusted EBITDA provides useful information to investors and analysts about the Company's performance because they eliminate the effects of period-to-period changes in taxes, costs associated with capital investments and interest expense. Adjusted EBITDA does not give effect to the cash the Company must use to service its debt or pay its income taxes and thus does not reflect the actual funds generated from operations or available for capital investments. Adjusted EBIDA margin consists of EBITDA divided by net sales. Bank-covenant adjusted EBITDA consists of adjusted EBITDA, as previously described, plus adjustments to reflect management's estimates of the inclusion of the adjusted EBITDA of acquisitions. Bank-covenant adjusted EBITDA is included for the purpose of enabling investors to understand the calculation of, and compliance with, the financial maintenance covenant in our credit documents. See Note (12) on slide 19. Free cash flow consists of Operating cash flow less purchases of property, plant and equipment as presented on condensed consolidated statement of cash flow. Our calculations of adjusted net income and adjusted net income per share, adjusted EBITDA and bank-covenant adjusted EBITDA are not necessarily comparable to calculations performed by other companies and reported as similarly titled measures. These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, such as net income, but should not be considered a substitute for or superior to GAAP measures. Schedules that reconcile adjusted net income, adjusted net income per share, adjusted EBITDA, and bank-covenant adjusted EBITDA to GAAP net income are included in the financial schedules accompanying this release. We are not able to provide a reconciliation of projected Q1 2023 Adjusted EBITDA to the most directly comparable expected GAAP results due to the unknown effect, timing and potential significance of the effects of legal matters, tax considerations, and income and expense from changes in fair value of contingent consideration from acquisitions. Expenses associated with legal matters, tax consequences, and income and expense from changes in fair value of contingent consideration from acquisitions have in the past, and may in the future, significantly affect GAAP results in a particular period.

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![Slide 4](pgti-ex99_2s4.jpg)

Key messages 1 Q4 2022 net sales increased 12% vs prior-year quarter to $341M, total organic growth of 5%; full-year net sales of $1.49B 2 Adjusted EBITDA1 margin versus the prior-year quarter impacted by Hurricane Ian and ransomware incident 3 Diligent supply chain and raw materials management 4 Generated strong cash flow, ending the quarter with a cash balance of $67M and total liquidity of $235M; liquidity influenced by new credit facility 5 In October, acquired Martin Door, a leading custom manufacturing of premium overhead garage doors 1. Refer to reconciliation to GAAP on slide 15.

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![Slide 5](pgti-ex99_2s5.jpg)

Sales Trends Southeast Region Highlights Western Region Highlights Looking Ahead Q4'22 organic sales up 2% YoY Sales growth impacted by disruptions from Hurricane Ian and ransomware incident Sequential increase in orders from Q3'22 Strong operations recovery resulting in further reduction in lead-times Q4'22 organic sales up 15% YoY WWS production capacity up 30% Anlin growing in R&R vinyl market Integration of Martin in early stages, with sales synergies identified New product offerings with narrow site lines in both regions Innovative glass offerings – Diamond Glass and Thin Triple Insulated Glass Unit Total Open Order Backlog1 at $235M down versus Q4 2021 at $356M due to shortened lead times and improved operational performance 1 Open Order Backlog in all periods includes orders in which revenue has been recognized in accordance with ASC 606.

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![Slide 6](pgti-ex99_2s6.jpg)

Q4 2022 results Recognized leader in premium windows and doors that can withstand some of the toughest weather conditions on earth and unify indoor/outdoor living spaces Q4 2022 vs. Q4 2021 Net Sales $340.9M 12.0% ↑ Gross Profit $121.1M 11.8% ↑ Gross Margin 35.5% Flat ↔ Adjusted EBITDA1 $48.2M Flat ↔ Adj. EBITDA Margin1 14.1% 170bps ↓ Adj. Net Income per Share - Diluted1 $0.27 12.9% ↓ Highlights Total revenue growth of 12%, including 5% organic growth Western up 15% organically, Southeast up 2% Pricing offsetting raw material and wage inflation EBITDA margin impacted by inefficiencies from Hurricane Ian and ransomware incident EPS includes impact of $8M in expense related to WinDoor trade name impairment and product rationalization Refer to reconciliation to GAAP. Open-Order Backlog in all periods includes orders in which revenue has been recognized in accordance with ASC 606.

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![Slide 7](pgti-ex99_2s7.jpg)

Balance sheet and Liquidity Update NET LEVERAGE Total Debt Outstanding $651.4M Less: Cash $66.6M Net Debt $584.8M Bank-Covenant LTM Adj EBITDA1 $270.5M Net Debt to Bank-Covenant Adj EBITDA1 2.2x LIQUIDITY PROFILE Cash $66.6M Unused Credit Capacity $167.9M Total Available Liquidity $234.5M Senior Notes (Oct 2029) $575.0M Revolver (Oct 2027)2 $76.4M Total Debt Outstanding $651.4M Debt Maturity Schedule ($M) as of 12/31/2022 Revolver2 Senior Notes COMMENTARY Strong and flexible balance sheet provides ability to fund capital priorities Generated $151M of free cash flow1, an increase of $121M from prior year Expense mitigation resulting in elevated free cash flow profile 1. Refer to reconciliation to GAAP on slide 14 for calculations of the ratio of net debt to bank-covenant adjusted EBITDA, net debt to adjusted EBITDA and free cash flow.; 2. Borrowings under our new $250.0M revolving credit facility are due October 2027. We drew $160.0M to repay $60.0M of borrowings under our then existing term loan, with the remaining proceeds used to fund the Martin Acquisition. Since borrowing $160.0M, we repaid $83.6M through the end of 2022, and an additional $12.4M in 2023. Borrowings currently outstanding under the revolving credit facility total $64.0M.

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![Slide 8](pgti-ex99_2s8.jpg)

INTERNAL INVESTMENT SHARE REPURCHASES STRATEGIC ACQUISITIONS Long-Term Capital Allocation priorities Investment in continuous improvement expected to drive margin growth Strategic selling initiatives and marketing enhancements driving sales Capex target: 3-4% of sales $250M over three years; funded with cash flow from operations Long-term target Leverage Ratio of 2x – 3x Aligned with growth priorities and expected to grow shareholder value over the long-term Expansion into new regions, channels or products Addition of technologies, enhanced manufacturing or supply chain capabilities

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![Slide 9](pgti-ex99_2s9.jpg)

Modeling Assumptions, Q1 2022 actual and Q1 2023 Guidance Q1 2023 Modeling Assumptions Depreciation and Amortization2 ~$15M Interest Expense $8 - 9M Non-cash Stock Compensation ~$3M Capex as % of Net Sales 3% – 4% Tax Rate 25-26% Q1 2022 Results Q1 2023 Guidance Updated 2/22/23 Net Sales $359M Net Sales $370M - $390M Adjusted EBITDA1 $59M Adjusted EBITDA $60M – $64M Refer to reconciliation to GAAP.

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![Slide 10](pgti-ex99_2s10.jpg)

Why Invest in PGT Innovations 01. National leader in growing premium impact-resistant and indoor / outdoor window and door category 02. Well positioned with diversified product portfolio to capture profitable growth in new construction and R&R channels 03. Continued focus on operational efficiencies expected to drive additional margin expansion 04. Expect to continue investing in R&D and talent to remain an industry leader in innovation and product development 05. Increasing shareholder value through return of capital and strategic investments

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![Slide 11](pgti-ex99_2s11.jpg)

Q&A

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![Slide 12](pgti-ex99_2s12.jpg)

Appendix Reconciliation to Pro Forma Net Debt Leverage Ratio, Adjusted Net Income, Adjusted Net Income per Share-diluted, Adjusted EBITDA, Bank-Covenant Adjusted EBITDA, and Free Cash Flow

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![Slide 13](pgti-ex99_2s13.jpg)

Reconciliation of GAAP to NON-gaap MEASURES(unaudited - in thousands)

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![Slide 14](pgti-ex99_2s14.jpg)

Reconciliation of GAAP to NON-gaap MEASURES(unaudited - in thousands, except RATIO)

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![Slide 15](pgti-ex99_2s15.jpg)

Reconciliation of GAAP to NON-gaap MEASURES(unaudited - in thousands, except per share amounts and PERCENTAGES) THREE MONTHS ENDED APRIL 1, 2022, DECEMBER 31, 2022, AND JANUARY 1, 2022

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![Slide 16](pgti-ex99_2s16.jpg)

Reconciliation of GAAP to NON-gaap MEASURES Represents write-offs of property and equipment and other impaired assets, classified as selling, general and administrative expense. Represents impairment charge relating to our WinDoor trade name classified as impairment of trade name. Represents cyberattack recovery costs, classified as selling, general and administrative expense. We previously disclosed this event by Current Report on Form 8-K, filed with the SEC on November 7, 2022. Represents adjustments to contingent consideration associated with our Anlin Acquisition, classified as selling, general and administrative expenses. Represents disruption and recovery costs caused by Hurricane Ian in late-September 2022, of which $1.1 million is classified as cost of sales, and $747 thousand is classified as selling, general and administrative expenses. Represents tax gross-up payment required to be made to the non-controlling interest relating to our acquisition of Eco, classified within selling, general and administrative expenses. Represents additional costs relating to the relocation of our CGI Commercial business to a new location in the Miami, FL area, being shared with our Eco Enterprises entity, classified as cost of sales. In 2022, represents costs relating to our Martin acquisition. In 2021, represents costs relating to our Eco and Anlin acquisitions. All acquisition costs were classified as selling, general and administrative expenses. In 2022, represents debt extinguishment costs relating to the refinancing of our 2016 Credit Agreement and repayment, in full, of the then existing term loan. In 2021, represents debt extinguishment costs relating to the issuance of our $575 million of 4.375% senior notes due 2029 and contemporaneous prepayment of our $425 million of 6.750% senior notes due 2026, Of the $25.5 million of debt extinguishment costs, $21.5 million represents a 5.063% call premium paid for prepaying the $425 million of 6.750% senior notes, and $4.0 million represents the net write-offs of deferred financing premiums, costs, fees and original issue discounts that existed at the time of these events, classified as debt extinguishment costs. Represents incremental costs related to the wind-down in the first quarter of 2021 of our commercial business acquired in the New South acquisition. Of the $4.2 million of these costs, $2.7 million are classified as cost of sales, and $1.5 million are classified as selling, general and administrative expenses. A portion of these costs may be recoverable through insurance. Represents incremental costs incurred relating to the coronavirus pandemic and resurgence of its Delta and Omicron variants in 2021, including cleaning and sanitizing costs for the protection of the health of our employees and safety of our facilities, as well as costs of lost productivity from employee quarantines and testing, classified as selling, general and administrative expenses. Represents costs relating to product line rationalizations and transitions, classified as cost of sales. Adjusted EBITDA of Anlin and Eco (2021), and Martin (2022) represents, for the applicable periods, management's estimates of Adjusted EBITDA of the acquired business, based on its historical financial information at the time of acquisition, as adjusted to give effect to (a) the elimination of expenses related to the prior owners and certain other costs and expenses that are not indicative of the underlying business performance, if any, as if such business had been acquired on the first day of such period ("Acquisition EBITDA Adjustments"), and (b) contract and acquisition annualization for contracts entered into and acquisitions completed by such acquired business prior to our acquisition. Further adjustments are made to such Adjusted EBITDA to reflect estimated operating cost savings and synergies, if any, anticipated to be realized upon acquisition and integration of the business into our operations. We use Adjusted EBITDA for the acquired businesses to adjust our Adjusted EBITDA to include a proportional amount of the Adjusted EBITDA of the acquired businesses based upon the respective number of months of operation for such period prior to the date of our acquisition of each such business. Bank-Covenant Adjusted EBITDA represents Adjusted EBITDA for the applicable period as adjusted to give effect to management's estimates of Adjusted EBITDA of Anlin and Eco (2021), and Martin (2022). These adjustments reflect monthly allocations of Adjusted EBITDA for the acquired businesses based on straight-line proration. As a result, these estimates do not take into account the seasonality of a particular acquired business. While we do not believe the seasonality of any-one acquired business is material when aggregated with other acquired businesses, the estimates may result in a higher or lower adjustment to our Bank-Covenant Adjusted EBITDA than would have resulted had we adjusted for the actual results of each of the acquired businesses for the period prior to our acquisition. We believe that Bank-Covenant Adjusted EBITDA is useful to investors and creditors to monitor and evaluate our borrowing capacity and compliance with certain of our debt covenants. Bank-Covenant Adjusted EBITDA as presented herein is calculated in accordance with the terms of our existing term loan credit agreement. Bank-Covenant net debt leverage ratio represents Net debt divided by Bank-Covenant Adjusted EBITDA.

### Attached PDF Documents

**Attachment 1:** `pgti-pgti-q4_2022_earnings_r.pdf`

![img-0.jpeg](img-0.jpeg)

# **PGTI Reports Fourth Quarter and Fiscal Year 2022 Results,  
Provides First Quarter 2023 Guidance**

VENICE, Fla., February 22, 2023 - PGT Innovations, Inc. (NYSE: PGTI), a national leader in premium windows and doors, including impact-resistant products, garage doors, and products designed to unify indoor/outdoor living spaces, today announced financial results for its fourth quarter and fiscal year ended December 31, 2022.

# **Financial Highlights for Fourth Quarter 2022**

*(All results reflect comparison to prior-year period; Cash on hand is compared to prior-year end)*

- Net sales totaled $341 million, an increase of 12 percent (includes organic growth of 5 percent).
- Net income was $8 million, a decrease of 54 percent.
- Adjusted net income* was $16 million, a decrease of 14 percent.
- Adjusted EBITDA* was $48 million, on par with last year.
- Net income per common share attributable to common shareholders, diluted, was $0.18, a decrease of 25 percent.
- Adjusted net income per diluted share* was $0.27, a decrease of 13 percent.
- Total liquidity at the end of the fourth quarter was $235 million, including cash of $67 million and revolver availability of $168 million.

# **Financial Highlights for Fiscal Year 2022**

*(All results reflect comparison to prior-year period)*

- Net sales totaled $1.49 billion, an increase of 28 percent (includes organic growth of 16 percent).
- Net income was $98 million, an increase of 180 percent.
- Adjusted net income* was $116 million, an increase of 88 percent
- Adjusted EBITDA* was $254 million, an increase of 50 percent.
- Net income per common share attributable to common shareholders, diluted, was $1.64, an increase of 264 percent.
- Adjusted net income per diluted share* was $1.92, an increase of 86 percent.
- Cash flow from operations was $196 million, an increase of 208 percent.

# **First Quarter 2023 Guidance**

- Net sales in the range of $370 million to $390 million.
- Adjusted EBITDA* in the range of $60 million to $64 million.

* Adjusted net income, Adjusted net income per diluted share and Adjusted EBITDA are non-GAAP measures. Please see “Use of Non-GAAP Financial Measures” below for more information.

'We finished our fiscal year with another strong quarter. Our fourth quarter financial results, with year-over-year net sales growth of 12 percent, showed recovery from impacts of Hurricane Ian and the ransomware incident, and was driven by continued operational improvement across our portfolio of brands. We were able to offset new construction demand weakness from macro-economic headwinds, including higher inflation and interest rates through solid execution across the enterprise.' said Jeff Jackson, President and Chief Executive Officer.

'Organic sales growth in the fourth quarter was 5 percent year-over-year, with our Western region growing 15 percent, and our Southeast region growing 2 percent. Our fourth quarter revenues were impacted by approximately $15 million due to the effects of Hurricane Ian and the ransomware incident. The suddenness of the two events impacted our ability to expand gross margin during the quarter, and we realized a year over year flat gross margin. In spite of the challenges during the fourth quarter, our team showed resilience and ended the quarter with some of the strongest performances for the year across our core businesses,' added Jackson.

'We completed our acquisition of Martin Door during the fourth quarter, as noted on our third quarter call. We are making progress in integrating Martin across our dealer, distributor and direct-to-consumer channels and look forward to its contributions in the coming year,' added Jackson.

'Over the past five years, we have expanded our geographic footprint and product lines to meet consumer demand with our acquisitions of Western Window Systems, New South, Eco, Anlin, and Martin. We believe our national footprint and depth of product offering provide a strong basis for future profitable growth. Going forward, we will be looking to maximize shareholder value through the return of capital with our recently announced share repurchase program. Our primary priority will continue to invest in our enterprise through high-return capital projects,' concluded Jackson.

'In the fourth quarter of 2022, we generated $44 million of operating cash flow, ending the fiscal year with a cash balance $67 million,' said John Kunz, Senior Vice President and Chief Financial Officer. 'For the full year, we generated over $151 million in free cash flow, a great source to fund our capital priorities,' added Kunz.

'The strong 28 percent full-year sales growth for 2022 was driven by operational improvements and the impact of price increases, offsetting a reduction in unit demand and backlog. Our organic backlog declined $126 million during the year. With the uncertainty in macro-economic conditions, higher interest rates and an inflationary environment, we are issuing first quarter 2023 guidance for net sales in the range of $370 million to $390 million, and Adjusted EBITDA in the range of $60 million to $64 million,' concluded Kunz.

| ($ in millions) | Q1 2023 Guidance* (as of 02/22/2023) |  |
| --- | --- | --- |
| Net sales | $370 | $390 |
| Adj. EBITDA** | $60 | $64 |
| * Q1 2023 guidance includes Eco at 100% contribution. |  |  |
| ** Adjusted EBITDA is a non-GAAP measure. Please see 'Use of Non-GAAP Measures' below. |  |  |

## Conference Call

PGT Innovations will host a conference call today at 10:30 a.m. The conference call will be available at the same time through the Investor Relations section of the PGT Innovations, Inc. website, http://ir.pgtinnovations.com/events.cfm.

To participate in the teleconference, kindly dial into the call about 10 minutes before the start time: 833-316-0547 (U.S. toll-free) and 412-317-5728 (International). A replay of the call will be available within approximately one hour after the scheduled end of the call on February 22, 2023, through approximately 12:30 p.m. on March 1, 2023. To access the replay, dial 877-344-7529 (U.S. Only toll-free), 855-669-9658 (Canada Only toll-free) and 412-317-0088 (International) and refer to pass code 3471776. Other international replay dial-in numbers can be obtained at: https://services.choruscall.com/ccforms/replay.html

You may join the conference online by using the following link:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=6voKyZcY

## About PGT Innovations, Inc.

PGT Innovations manufactures and supplies premium windows, doors, and garage doors. Its highly engineered and technically advanced products can withstand some of the toughest weather conditions on Earth and are revolutionizing the way people live by unifying indoor and outdoor living spaces. PGT Innovations creates value through deep customer relationships, understanding the unstated needs of the markets it serves, and a drive to develop category-defining products. PGT Innovations is also the nation's largest manufacturer of impact-resistant windows and doors and holds the leadership position in its primary market.

The PGT Innovations' family of brands include CGI®, PGT® Custom Windows and Doors, WinDoor®, Western Window Systems, Anlin Windows & Doors, Eze-Breeze®, NewSouth Window Solutions, Martin Door, and a 75 percent ownership stake in Eco Window Systems®. The company's brands, in their respective markets, are a preferred choice of architects, builders, and homeowners throughout North America and the Caribbean. Their high-quality products are available in custom and standard sizes with massive dimensions that allow for unlimited design possibilities in residential, multi-family, and commercial projects. For additional information, visit https://pgtinnovations.com/.

## Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "assume," "believe," "could," "estimate," "expect," "guidance," "intend," "many," "positioned," "potential," "project," "think," "should," "target," "will," "would" and similar references to future periods. Examples of forward-looking statements include, among others, statements we make regarding our acquisition of Martin Door Holdings, Inc. ("Martin"); our national footprint and depth of product offering providing a strong basis for growth; our share-repurchase program; and our net sales and Adjusted EBITDA guidance.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the

future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following:

- • the impact of the COVID-19 pandemic (the 'COVID-19 pandemic' or 'Pandemic') and related measures taken by governmental or regulatory authorities to combat the Pandemic, including the impact of the Pandemic and these measures on the economies and demand for our products in the states where we sell them, and on our customers, suppliers, labor force, business, operations and financial performance;
- • unpredictable weather and macroeconomic factors that may negatively impact the repair and remodel and new construction markets and the construction industry generally, especially in the state of Florida and the western United States, where the substantial portion of our sales are currently generated, and in the U.S. generally;
- • changes in raw material prices, especially for aluminum, glass, vinyl, and steel, including, price increases due to the implementation of tariffs and other trade-related restrictions, Pandemic-related supply chain interruptions, or interruptions from the conflict in Ukraine;
- • our dependence on a limited number of suppliers for certain of our key materials;
- • our dependence on our impact-resistant product lines, which increased with the acquisition of Eco Enterprises, LLC ('Eco'), and contemporary indoor/outdoor window and door systems, and on consumer preferences for those types and styles of products;
- • the effects of increased expenses or unanticipated liabilities incurred as a result of, or due to activities related to, our recent acquisitions, including our acquisitions of Martin and Anlin Windows & Doors ('Anlin');
- • our level of indebtedness, which increased in connection with our recent acquisitions, including our acquisitions of Martin and Anlin;
- • increases in credit losses from obligations owed to us by our customers in the event of a downturn in the home repair and remodel or new home construction channels in our core markets and our inability to collect such obligations from such customers;
- • the risks that the anticipated cost savings, synergies, revenue enhancement strategies and other benefits expected from our acquisitions of Martin and Anlin may not be fully realized or may take longer to realize than expected or that our actual integration costs may exceed our estimates;
- • increases in transportation costs, including increases in fuel prices;
- • our dependence on our limited number of geographically concentrated manufacturing facilities, which increased further due to our acquisition of Eco;
- • sales fluctuations to and changes in our relationships with key customers;
- • federal, state and local laws and regulations, including unfavorable changes in local building codes and environmental and energy code regulations;
- • risks associated with our information technology systems, including cybersecurity-related risks, such as unauthorized intrusions into our systems by 'hackers' and theft of data and

information from our systems, and the risks that our information technology systems do not function as intended or experience temporary or long-term failures to perform as intended;

- product liability and warranty claims brought against us;
- in addition to our acquisitions of Martin and Anlin, our ability to successfully integrate businesses we may acquire in the future, or that any business we acquire may not perform as we expected when we acquired it; and
- the other risks and uncertainties discussed under “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K/A for the year ended January 1, 2022, and our other filings with the Securities and Exchange Commission.

Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

### **Use of Non-GAAP Financial Measures**

This press release and the financial schedules include financial measures and terms not calculated in accordance with U.S. generally accepted accounting principles (GAAP). Management believes that presentation of non-GAAP measures such as Adjusted net income, Adjusted net income per share, and Adjusted EBITDA provides investors and analysts with an alternative method for assessing our operating results in a manner that enables investors and analysts to more thoroughly evaluate our current performance compared to past performance. However, these measures do not provide a complete picture of our operations. Management also believes these non-GAAP measures provide investors with a better baseline for assessing our future earnings potential. The non-GAAP measures included in this press release are provided to give investors access to types of measures that we use in analyzing our results, and for internal planning and forecasting purposes.

Adjusted net income consists of GAAP net income adjusted for the items included in the accompanying reconciliation. Adjusted net income per share consists of GAAP net income per share adjusted for the items included in the accompanying reconciliation.

Adjusted EBITDA consists of net income, adjusted for the items included in the accompanying reconciliation. We believe that Adjusted EBITDA provides useful information to investors and analysts about the Company’s performance because they eliminate the effects of period-to-period changes in taxes, costs associated with capital investments and interest expense. Adjusted EBITDA does not give effect to the cash the Company must use to service its debt or pay its income taxes and thus does not reflect the actual funds generated from operations or available for capital investments.

Our calculations of Adjusted net income and Adjusted net income per share, and Adjusted EBITDA are not necessarily comparable to calculations performed by other companies and reported as similarly titled measures. These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP but should not be considered a substitute for or superior to GAAP measures. Schedules that reconcile Adjusted net income, Adjusted net income per share, and Adjusted EBITDA to GAAP net income are included in the financial schedules accompanying this release.

We are not able to provide a reconciliation of projected Adjusted EBITDA to the most directly comparable expected GAAP results due to the unknown effect, timing and potential significance of the effects of legal matters, tax considerations, and income and expense from changes in fair value of contingent consideration from acquisitions. Expenses associated with legal matters, tax consequences, and income and expense from changes in fair value of contingent consideration from acquisitions have in the past, and may in the future, significantly affect GAAP results in a particular period.

SOURCE: PGT Innovations, Inc.

**PGT Innovations Contacts:**

**Investor Relations:**

John Kunz, 941-480-1600
Senior Vice President and CFO
JKunz@PGTInnovations.com

**Media Relations:**

Stephanie Cz, 941-480-1600
Corporate Communications Manager

# **PGT INNOVATIONS, INC.**  
 **CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**  
 (unaudited - in thousands, except per share amounts)

|  | Three Months Ended |  | Year Ended |  |
| --- | --- | --- | --- | --- |
|  | Dec. 31, 2022 | Jan. 1, 2022 | Dec. 31, 2022 | Jan. 1, 2022 |
| Net sales | $340,934 | $304,441 | $1,491,954 | $1,161,464 |
| Cost of sales | 219,790 | 196,116 | 921,285 | 757,965 |
| Gross profit | 121,144 | 108,325 | 570,669 | 403,499 |
| Selling, general and administrative expenses | 95,100 | 78,937 | 402,886 | 303,043 |
| Impairment of trade name | 7,423 | - | 7,423 | - |
| Income from operations | 18,621 | 29,388 | 160,360 | 100,456 |
| Interest expense, net | 7,755 | 7,061 | 28,879 | 30,029 |
| Debt extinguishment costs | 410 | - | 410 | 25,472 |
| Income before income taxes | 10,456 | 22,327 | 131,071 | 44,955 |
| Income tax expense | 2,756 | 5,499 | 32,666 | 9,759 |
| Net income | 7,700 | 16,828 | 98,405 | 35,196 |
| Less: Net income attributable to redeemable non-controlling interest | (189) | (662) | (1,523) | (2,318) |
| Net income attributable to the Company | $7,511 | $16,166 | $96,882 | $32,878 |
| Calculation of net income per common share attributable to PGT Innovations, Inc. common shareholders: |  |  |  |  |
| Net income attributable to the Company | $7,511 | $16,166 | $96,882 | $32,878 |
| Change in redemption value of redeemable non-controlling interest | 3,514 | (1,553) | 2,000 | (6,081) |
| Net income attributable to PGT Innovations, Inc. common shareholders | $11,025 | $14,613 | $98,882 | $26,797 |
| Net income per common share attributable to PGT Innovations, Inc. common shareholders: |  |  |  |  |
| Basic | $0.18 | $0.24 | $1.65 | $0.45 |
| Diluted | $0.18 | $0.24 | $1.64 | $0.45 |
| Weighted average number of common shares outstanding: |  |  |  |  |
| Basic | 59,980 | 59,646 | 59,926 | 59,518 |
| Diluted | 60,441 | 60,172 | 60,319 | 60,058 |

# **PGT INNOVATIONS, INC.**  
 **CONDENSED CONSOLIDATED BALANCE SHEETS**  
 (unaudited - in thousands)

|  | December 31, 2022 | January 1, 2022 |
| --- | --- | --- |
| ASSETS |  |  |
| Current assets: |  |  |
| Cash and cash equivalents | $66,548 | $96,146 |
| Accounts receivable, net | 160,107 | 141,221 |
| Inventories | 112,672 | 91,440 |
| Contract assets, net | 47,919 | 55,239 |
| Prepaid expenses and other current assets | 28,295 | 37,712 |
| Total current assets | 415,541 | 421,758 |
| Property, plant and equipment, net | 208,354 | 185,266 |
| Operating lease right-of-use asset, net | 104,121 | 91,162 |
| Intangible assets, net | 447,052 | 394,525 |
| Goodwill | 460,415 | 364,598 |
| Other assets, net | 4,766 | 3,301 |
| Total assets | $1,640,249 | $1,460,610 |
| LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST, AND SHAREHOLDERS' EQUITY |  |  |
| Current liabilities: |  |  |
| Accounts payable and accrued expenses | $168,961 | $122,681 |
| Current portion of operating lease liability | 16,393 | 13,180 |
| Total current liabilities | 185,354 | 135,861 |
| Long-term debt | 642,134 | 625,655 |
| Operating lease liability, less current portion | 95,159 | 83,903 |
| Deferred income taxes, net | 47,407 | 37,489 |
| Other liabilities | 7,459 | 11,742 |
| Total liabilities | 977,513 | 894,650 |
| Commitments and contingencies |  |  |
| Redeemable non-controlling interest | 34,721 | 36,863 |
| Total shareholders' equity | 628,015 | 529,097 |
| Total liabilities, redeemable non-controlling interest and shareholders' equity | $1,640,249 | $1,460,610 |

# **PGT INNOVATIONS, INC.**  
 **CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS**  
 (unaudited - in thousands)

|  | Year Ended |  |
| --- | --- | --- |
|  | December 31, 2022 | January 1, 2022 |
|  | (unaudited) |  |
| Cash flows from operating activities: |  |  |
| Net income | $98,405 | $35,196 |
| Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| Depreciation | 34,048 | 30,487 |
| Amortization | 26,150 | 21,082 |
| Impairment of trade name | 7,423 | - |
| Other asset impairments | 2,131 | - |
| Provision for allowance for credit losses | 10,979 | 3,834 |
| Stock-based compensation | 9,670 | 7,819 |
| Amortization of deferred financing costs, debt discount and premium | 1,242 | 978 |
| Debt extinguishment costs | 410 | 25,472 |
| Deferred income taxes | (11,340) | 7,632 |
| (Gain) loss on sales of assets | (240) | 261 |
| Change in operating assets and liabilities (net of effects of acquisitions): |  |  |
| Accounts receivable | (20,622) | (34,390) |
| Inventories | (12,017) | (15,984) |
| Contract assets, net, prepaid expenses, other current and other assets | 12,826 | (5,958) |
| Accounts payable, accrued and other liabilities | 37,309 | (12,750) |
| Net cash provided by operating activities | 196,374 | 63,679 |
| Cash flows from investing activities: |  |  |
| Purchases of property, plant and equipment | (45,377) | (33,424) |
| Investment in and acquisition of business | (188,580) | (220,676) |
| Proceeds from sales of assets | 37 | 187 |
| Net cash used in investing activities | (233,920) | (253,913) |
| Cash flows from financing activities: |  |  |
| Payment of fair value of contingent consideration in Anlin Acquisition | (2,362) | - |
| Proceeds of amounts drawn from revolving credit facility | 160,000 | - |
| Payments of borrowing under revolving credit facility | (83,648) | - |
| Proceeds from issuance of senior notes | - | 638,300 |
| Payments of senior notes | - | (425,000) |
| Payment of call-premium on redemption of senior notes | - | (21,518) |
| Proceeds from issuance of term loan debt | - | 60,000 |
| Payments of term loan debt | (60,000) | (54,000) |
| Payments of financing costs | (1,526) | (10,675) |
| Purchases of treasury stock under repurchase program | (1,565) | - |
| Purchases of treasury stock relating to tax withholdings on employee equity awards | (1,888) | (1,648) |
| Proceeds from exercise of stock options | - | 138 |
| Distribution to redeemable non-controlling interest | (1,665) | - |
| Proceeds from issuance of common stock under ESPP | 602 | 463 |
| Net cash provided by financing activities | 7,948 | 186,060 |
| Net decrease in cash and cash equivalents | (29,598) | (4,174) |
| Cash and cash equivalents at beginning of period | 96,146 | 100,320 |
| Cash and cash equivalents at end of period | $66,548 | $96,146 |

# **PGT INNOVATIONS, INC.**  
 **RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO THEIR**  
 **MOST DIRECTLY COMPARABLE GAAP EQUIVALENTS**  
 (unaudited - in thousands, except per share amounts and percentages)

|  | Three Months Ended |  | Year Ended |  |
| --- | --- | --- | --- | --- |
|  | Dec. 31, 2022 | Jan. 1, 2022 | Dec. 31, 2022 | Jan. 1, 2022 |
| Reconciliation to Adjusted Net Income and Adjusted Net Income per share - diluted: |  |  |  |  |
| Net income | $7,700 | $16,828 | $98,405 | $35,196 |
| Reconciling items: |  |  |  |  |
| Asset impairment charges (1) | - | - | 2,131 | - |
| WinDoor trade name impairment charge (2) | 7,423 | - | 7,423 | - |
| Cyberattack recovery costs (3) | 415 | - | 415 | - |
| Adjustments to contingent consideration (4) | 381 | - | 5,432 | - |
| Hurricane Ian-related costs (5) | 20 | - | 1,868 | - |
| Tax gross-up payment (6) | (59) | - | 368 | - |
| CGI Commercial relocation costs (7) | - | 602 | 277 | 602 |
| Acquisition-related costs (8) | 3,523 | 736 | 4,773 | 2,443 |
| Debt extinguishment costs (9) | 410 | - | 410 | 25,472 |
| Business wind-down costs (10) | - | - | - | 4,197 |
| Pandemic-related costs (11) | - | - | - | 1,041 |
| Product line rationalization and transition costs (12) | 682 | 1,300 | 682 | 1,300 |
| Tax effect of reconciling items | (4,351) | (650) | (6,194) | (8,482) |
| Adjusted net income | $16,144 | $18,816 | $115,990 | $61,769 |
| Weighted-average diluted shares | 60,441 | 60,172 | 60,319 | 60,058 |
| Adjusted net income per share - diluted | $0.27 | $0.31 | $1.92 | $1.03 |
| Reconciliation to Adjusted EBITDA: |  |  |  |  |
| Depreciation and amortization expense | $15,114 | $14,105 | $60,198 | $51,569 |
| Interest expense, net | 7,755 | 7,061 | 28,879 | 30,029 |
| Income tax expense | 2,756 | 5,499 | 32,666 | 9,759 |
| Reversal of tax effect of reconciling items for adjusted net income above | 4,351 | 650 | 6,194 | 8,482 |
| Stock-based compensation expense | 2,032 | 2,071 | 9,670 | 7,819 |
| Adjusted EBITDA | $48,152 | $48,202 | $253,597 | $169,427 |
| Adjusted EBITDA as percentage of net sales | 14.1% | 15.8% | 17.0% | 14.6% |

(1) Represents write-offs of property, equipment and other impaired assets, classified as selling, general and administrative expense in the accompanying condensed statement of operations for the three-months and year ended December 31, 2022.

(2) Represents impairment charge relating to our WinDoor trade name classified as impairment of trade name in the accompanying condensed statement of operations for the three-months and year ended December 31, 2022.

(3) Represents cyberattack recovery costs, classified as selling, general and administrative expense in the accompanying condensed statement of operations for the three-months and year ended December 31, 2022. We previously disclosed this event by Current Report on Form 8-K, filed with the SEC on November 7, 2022.

(4) Represents adjustments to contingent consideration associated with our Anlin Acquisition, classified as selling, general and administrative expenses in the accompanying consolidated statement of operations for the three-months and year ended December 31, 2022.

(5) Represents disruption and recovery costs caused by Hurricane Ian in late-September 2022, of which $1.1 million is classified within cost of sales, and $747 thousand is classified within selling, general and administrative expenses in the year ended December 31, 2022.

(6) Represents tax gross-up payment required to be made to the non-controlling interest relating to our acquisition of Eco, which we initially estimated to be $1.5 million, but which was ultimately determined to be $1.8 million, a difference of $368 thousand, which is classified within selling, general and administrative expenses in the year ended December 31, 2022.

(7) Represents additional costs relating to the relocation of our CGI Commercial business to a new location in the Miami, FL area, being shared with our Eco Enterprises entity, classified as cost of sales in the accompanying consolidated statement of operations for the year ended December 31, 2022.

(8) In 2022, represents costs relating to the Martin acquisition. In 2021, represents costs relating to our acquisitions of Eco and Anlin. These costs are classified within selling, general and administrative expenses in the years ended December 31, 2022, and January 1, 2022, respectively.

(9) In 2022, represents debt extinguishment costs relating to the refinancing of our 2016 Credit Agreement and repayment, in full, of the then existing term loan. In 2021, represents debt extinguishment costs relating to the prepayment of our $425 million of 6.750% senior notes due 2026, and the prepayment of our $54 million term loan A facility, which was due in 2022. Of the $25.5 million of debt extinguishment costs, $21.5 million represents a 5.063% call premium paid for prepaying the $425 million of 6.750% senior notes, and $4.0 million represents the net write-offs of deferred financing premiums, costs, fees and original issue discounts that existed at the time of these events. These costs are classified as debt extinguishment costs in the accompanying statement of operations for the years ended December 31, 2022, and January 1, 2022, respectively.

(10) Represents incremental costs related to the wind-down of our commercial business acquired in the New South acquisition. Of the $4.2 million of these costs, $2.7 million are classified as cost of sales, and $1.5 million are classified as selling, general and administrative expenses in the accompanying condensed consolidated statement of operations for the year ended January 1, 2022. A portion of these costs are being recovered through insurance.

(11) Represents incremental costs incurred relating to the coronavirus pandemic and resurgence of its Delta and Omicron variants in 2021, including cleaning and sanitizing costs for the protection of the health of our employees and safety of our facilities, as well as costs of lost productivity from employee quarantines and testing, classified within selling, general and administrative expenses for the year ended January 1, 2022.

(12) Represents costs relating to product line rationalizations and transitions, classified within cost of sales for the years ended December 31, 2022, and January 1, 2022, respectively.

**Attachment 2:** `pgti-ex99_1.pdf`

![img-0.jpeg](img-0.jpeg)

# **PGTI Reports Fourth Quarter and Fiscal Year 2022 Results,  
Provides First Quarter 2023 Guidance**

VENICE, Fla., February 22, 2023 - PGT Innovations, Inc. (NYSE: PGTI), a national leader in premium windows and doors, including impact-resistant products, garage doors, and products designed to unify indoor/outdoor living spaces, today announced financial results for its fourth quarter and fiscal year ended December 31, 2022.

# **Financial Highlights for Fourth Quarter 2022**

*(All results reflect comparison to prior-year period; Cash on hand is compared to prior-year end)*

- Net sales totaled $341 million, an increase of 12 percent (includes organic growth of 5 percent).
- Net income was $8 million, a decrease of 54 percent.
- Adjusted net income* was $16 million, a decrease of 14 percent.
- Adjusted EBITDA* was $48 million, on par with last year.
- Net income per common share attributable to common shareholders, diluted, was $0.18, a decrease of 25 percent.
- Adjusted net income per diluted share* was $0.27, a decrease of 13 percent.
- Total liquidity at the end of the fourth quarter was $235 million, including cash of $67 million and revolver availability of $168 million.

# **Financial Highlights for Fiscal Year 2022**

*(All results reflect comparison to prior-year period)*

- Net sales totaled $1.49 billion, an increase of 28 percent (includes organic growth of 16 percent).
- Net income was $98 million, an increase of 180 percent.
- Adjusted net income* was $116 million, an increase of 88 percent
- Adjusted EBITDA* was $254 million, an increase of 50 percent.
- Net income per common share attributable to common shareholders, diluted, was $1.64, an increase of 264 percent.
- Adjusted net income per diluted share* was $1.92, an increase of 86 percent.
- Cash flow from operations was $196 million, an increase of 208 percent.

# **First Quarter 2023 Guidance**

- Net sales in the range of $370 million to $390 million.
- Adjusted EBITDA* in the range of $60 million to $64 million.

* Adjusted net income, Adjusted net income per diluted share and Adjusted EBITDA are non-GAAP measures. Please see “Use of Non-GAAP Financial Measures” below for more information.

'We finished our fiscal year with another strong quarter. Our fourth quarter financial results, with year-over-year net sales growth of 12 percent, showed recovery from impacts of Hurricane Ian and the ransomware incident, and was driven by continued operational improvement across our portfolio of brands. We were able to offset new construction demand weakness from macro-economic headwinds, including higher inflation and interest rates through solid execution across the enterprise.' said Jeff Jackson, President and Chief Executive Officer.

'Organic sales growth in the fourth quarter was 5 percent year-over-year, with our Western region growing 15 percent, and our Southeast region growing 2 percent. Our fourth quarter revenues were impacted by approximately $15 million due to the effects of Hurricane Ian and the ransomware incident. The suddenness of the two events impacted our ability to expand gross margin during the quarter, and we realized a year over year flat gross margin. In spite of the challenges during the fourth quarter, our team showed resilience and ended the quarter with some of the strongest performances for the year across our core businesses,' added Jackson.

'We completed our acquisition of Martin Door during the fourth quarter, as noted on our third quarter call. We are making progress in integrating Martin across our dealer, distributor and direct-to-consumer channels and look forward to its contributions in the coming year,' added Jackson.

'Over the past five years, we have expanded our geographic footprint and product lines to meet consumer demand with our acquisitions of Western Window Systems, New South, Eco, Anlin, and Martin. We believe our national footprint and depth of product offering provide a strong basis for future profitable growth. Going forward, we will be looking to maximize shareholder value through the return of capital with our recently announced share repurchase program. Our primary priority will continue to invest in our enterprise through high-return capital projects,' concluded Jackson.

'In the fourth quarter of 2022, we generated $44 million of operating cash flow, ending the fiscal year with a cash balance $67 million,' said John Kunz, Senior Vice President and Chief Financial Officer. 'For the full year, we generated over $151 million in free cash flow, a great source to fund our capital priorities,' added Kunz.

'The strong 28 percent full-year sales growth for 2022 was driven by operational improvements and the impact of price increases, offsetting a reduction in unit demand and backlog. Our organic backlog declined $126 million during the year. With the uncertainty in macro-economic conditions, higher interest rates and an inflationary environment, we are issuing first quarter 2023 guidance for net sales in the range of $370 million to $390 million, and Adjusted EBITDA in the range of $60 million to $64 million,' concluded Kunz.

| ($ in millions) | Q1 2023 Guidance* (as of 02/22/2023) |  |
| --- | --- | --- |
| Net sales | $370 | $390 |
| Adj. EBITDA** | $60 | $64 |
| * Q1 2023 guidance includes Eco at 100% contribution. |  |  |
| ** Adjusted EBITDA is a non-GAAP measure. Please see 'Use of Non-GAAP Measures' below. |  |  |

## Conference Call

PGT Innovations will host a conference call today at 10:30 a.m. The conference call will be available at the same time through the Investor Relations section of the PGT Innovations, Inc. website, http://ir.pgtinnovations.com/events.cfm.

To participate in the teleconference, kindly dial into the call about 10 minutes before the start time: 833-316-0547 (U.S. toll-free) and 412-317-5728 (International). A replay of the call will be available within approximately one hour after the scheduled end of the call on February 22, 2023, through approximately 12:30 p.m. on March 1, 2023. To access the replay, dial 877-344-7529 (U.S. Only toll-free), 855-669-9658 (Canada Only toll-free) and 412-317-0088 (International) and refer to pass code 3471776. Other international replay dial-in numbers can be obtained at: https://services.choruscall.com/ccforms/replay.html

You may join the conference online by using the following link:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=6voKyZcY

## About PGT Innovations, Inc.

PGT Innovations manufactures and supplies premium windows, doors, and garage doors. Its highly engineered and technically advanced products can withstand some of the toughest weather conditions on Earth and are revolutionizing the way people live by unifying indoor and outdoor living spaces. PGT Innovations creates value through deep customer relationships, understanding the unstated needs of the markets it serves, and a drive to develop category-defining products. PGT Innovations is also the nation's largest manufacturer of impact-resistant windows and doors and holds the leadership position in its primary market.

The PGT Innovations' family of brands include CGI®, PGT® Custom Windows and Doors, WinDoor®, Western Window Systems, Anlin Windows & Doors, Eze-Breeze®, NewSouth Window Solutions, Martin Door, and a 75 percent ownership stake in Eco Window Systems®. The company's brands, in their respective markets, are a preferred choice of architects, builders, and homeowners throughout North America and the Caribbean. Their high-quality products are available in custom and standard sizes with massive dimensions that allow for unlimited design possibilities in residential, multi-family, and commercial projects. For additional information, visit https://pgtinnovations.com/.

## Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "assume," "believe," "could," "estimate," "expect," "guidance," "intend," "many," "positioned," "potential," "project," "think," "should," "target," "will," "would" and similar references to future periods. Examples of forward-looking statements include, among others, statements we make regarding our acquisition of Martin Door Holdings, Inc. ("Martin"); our national footprint and depth of product offering providing a strong basis for growth; our share-repurchase program; and our net sales and Adjusted EBITDA guidance.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the

future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following:

- • the impact of the COVID-19 pandemic (the 'COVID-19 pandemic' or 'Pandemic') and related measures taken by governmental or regulatory authorities to combat the Pandemic, including the impact of the Pandemic and these measures on the economies and demand for our products in the states where we sell them, and on our customers, suppliers, labor force, business, operations and financial performance;
- • unpredictable weather and macroeconomic factors that may negatively impact the repair and remodel and new construction markets and the construction industry generally, especially in the state of Florida and the western United States, where the substantial portion of our sales are currently generated, and in the U.S. generally;
- • changes in raw material prices, especially for aluminum, glass, vinyl, and steel, including, price increases due to the implementation of tariffs and other trade-related restrictions, Pandemic-related supply chain interruptions, or interruptions from the conflict in Ukraine;
- • our dependence on a limited number of suppliers for certain of our key materials;
- • our dependence on our impact-resistant product lines, which increased with the acquisition of Eco Enterprises, LLC ('Eco'), and contemporary indoor/outdoor window and door systems, and on consumer preferences for those types and styles of products;
- • the effects of increased expenses or unanticipated liabilities incurred as a result of, or due to activities related to, our recent acquisitions, including our acquisitions of Martin and Anlin Windows & Doors ('Anlin');
- • our level of indebtedness, which increased in connection with our recent acquisitions, including our acquisitions of Martin and Anlin;
- • increases in credit losses from obligations owed to us by our customers in the event of a downturn in the home repair and remodel or new home construction channels in our core markets and our inability to collect such obligations from such customers;
- • the risks that the anticipated cost savings, synergies, revenue enhancement strategies and other benefits expected from our acquisitions of Martin and Anlin may not be fully realized or may take longer to realize than expected or that our actual integration costs may exceed our estimates;
- • increases in transportation costs, including increases in fuel prices;
- • our dependence on our limited number of geographically concentrated manufacturing facilities, which increased further due to our acquisition of Eco;
- • sales fluctuations to and changes in our relationships with key customers;
- • federal, state and local laws and regulations, including unfavorable changes in local building codes and environmental and energy code regulations;
- • risks associated with our information technology systems, including cybersecurity-related risks, such as unauthorized intrusions into our systems by 'hackers' and theft of data and

information from our systems, and the risks that our information technology systems do not function as intended or experience temporary or long-term failures to perform as intended;

- product liability and warranty claims brought against us;
- in addition to our acquisitions of Martin and Anlin, our ability to successfully integrate businesses we may acquire in the future, or that any business we acquire may not perform as we expected when we acquired it; and
- the other risks and uncertainties discussed under “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K/A for the year ended January 1, 2022, and our other filings with the Securities and Exchange Commission.

Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

### **Use of Non-GAAP Financial Measures**

This press release and the financial schedules include financial measures and terms not calculated in accordance with U.S. generally accepted accounting principles (GAAP). Management believes that presentation of non-GAAP measures such as Adjusted net income, Adjusted net income per share, and Adjusted EBITDA provides investors and analysts with an alternative method for assessing our operating results in a manner that enables investors and analysts to more thoroughly evaluate our current performance compared to past performance. However, these measures do not provide a complete picture of our operations. Management also believes these non-GAAP measures provide investors with a better baseline for assessing our future earnings potential. The non-GAAP measures included in this press release are provided to give investors access to types of measures that we use in analyzing our results, and for internal planning and forecasting purposes.

Adjusted net income consists of GAAP net income adjusted for the items included in the accompanying reconciliation. Adjusted net income per share consists of GAAP net income per share adjusted for the items included in the accompanying reconciliation.

Adjusted EBITDA consists of net income, adjusted for the items included in the accompanying reconciliation. We believe that Adjusted EBITDA provides useful information to investors and analysts about the Company’s performance because they eliminate the effects of period-to-period changes in taxes, costs associated with capital investments and interest expense. Adjusted EBITDA does not give effect to the cash the Company must use to service its debt or pay its income taxes and thus does not reflect the actual funds generated from operations or available for capital investments.

Our calculations of Adjusted net income and Adjusted net income per share, and Adjusted EBITDA are not necessarily comparable to calculations performed by other companies and reported as similarly titled measures. These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP but should not be considered a substitute for or superior to GAAP measures. Schedules that reconcile Adjusted net income, Adjusted net income per share, and Adjusted EBITDA to GAAP net income are included in the financial schedules accompanying this release.

We are not able to provide a reconciliation of projected Adjusted EBITDA to the most directly comparable expected GAAP results due to the unknown effect, timing and potential significance of the effects of legal matters, tax considerations, and income and expense from changes in fair value of contingent consideration from acquisitions. Expenses associated with legal matters, tax consequences, and income and expense from changes in fair value of contingent consideration from acquisitions have in the past, and may in the future, significantly affect GAAP results in a particular period.

SOURCE: PGT Innovations, Inc.

**PGT Innovations Contacts:**

**Investor Relations:**

John Kunz, 941-480-1600
Senior Vice President and CFO
JKunz@PGTInnovations.com

**Media Relations:**

Stephanie Cz, 941-480-1600
Corporate Communications Manager

# **PGT INNOVATIONS, INC.**  
 **CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**  
 (unaudited - in thousands, except per share amounts)

|  | Three Months Ended |  | Year Ended |  |
| --- | --- | --- | --- | --- |
|  | Dec. 31, 2022 | Jan. 1, 2022 | Dec. 31, 2022 | Jan. 1, 2022 |
| Net sales | $340,934 | $304,441 | $1,491,954 | $1,161,464 |
| Cost of sales | 219,790 | 196,116 | 921,285 | 757,965 |
| Gross profit | 121,144 | 108,325 | 570,669 | 403,499 |
| Selling, general and administrative expenses | 95,100 | 78,937 | 402,886 | 303,043 |
| Impairment of trade name | 7,423 | - | 7,423 | - |
| Income from operations | 18,621 | 29,388 | 160,360 | 100,456 |
| Interest expense, net | 7,755 | 7,061 | 28,879 | 30,029 |
| Debt extinguishment costs | 410 | - | 410 | 25,472 |
| Income before income taxes | 10,456 | 22,327 | 131,071 | 44,955 |
| Income tax expense | 2,756 | 5,499 | 32,666 | 9,759 |
| Net income | 7,700 | 16,828 | 98,405 | 35,196 |
| Less: Net income attributable to redeemable non-controlling interest | (189) | (662) | (1,523) | (2,318) |
| Net income attributable to the Company | $7,511 | $16,166 | $96,882 | $32,878 |
| Calculation of net income per common share attributable to PGT Innovations, Inc. common shareholders: |  |  |  |  |
| Net income attributable to the Company | $7,511 | $16,166 | $96,882 | $32,878 |
| Change in redemption value of redeemable non-controlling interest | 3,514 | (1,553) | 2,000 | (6,081) |
| Net income attributable to PGT Innovations, Inc. common shareholders | $11,025 | $14,613 | $98,882 | $26,797 |
| Net income per common share attributable to PGT Innovations, Inc. common shareholders: |  |  |  |  |
| Basic | $0.18 | $0.24 | $1.65 | $0.45 |
| Diluted | $0.18 | $0.24 | $1.64 | $0.45 |
| Weighted average number of common shares outstanding: |  |  |  |  |
| Basic | 59,980 | 59,646 | 59,926 | 59,518 |
| Diluted | 60,441 | 60,172 | 60,319 | 60,058 |

# **PGT INNOVATIONS, INC.**  
 **CONDENSED CONSOLIDATED BALANCE SHEETS**  
 (unaudited - in thousands)

|  | December 31, 2022 | January 1, 2022 |
| --- | --- | --- |
| ASSETS |  |  |
| Current assets: |  |  |
| Cash and cash equivalents | $66,548 | $96,146 |
| Accounts receivable, net | 160,107 | 141,221 |
| Inventories | 112,672 | 91,440 |
| Contract assets, net | 47,919 | 55,239 |
| Prepaid expenses and other current assets | 28,295 | 37,712 |
| Total current assets | 415,541 | 421,758 |
| Property, plant and equipment, net | 208,354 | 185,266 |
| Operating lease right-of-use asset, net | 104,121 | 91,162 |
| Intangible assets, net | 447,052 | 394,525 |
| Goodwill | 460,415 | 364,598 |
| Other assets, net | 4,766 | 3,301 |
| Total assets | $1,640,249 | $1,460,610 |
| LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST, AND SHAREHOLDERS' EQUITY |  |  |
| Current liabilities: |  |  |
| Accounts payable and accrued expenses | $168,961 | $122,681 |
| Current portion of operating lease liability | 16,393 | 13,180 |
| Total current liabilities | 185,354 | 135,861 |
| Long-term debt | 642,134 | 625,655 |
| Operating lease liability, less current portion | 95,159 | 83,903 |
| Deferred income taxes, net | 47,407 | 37,489 |
| Other liabilities | 7,459 | 11,742 |
| Total liabilities | 977,513 | 894,650 |
| Commitments and contingencies |  |  |
| Redeemable non-controlling interest | 34,721 | 36,863 |
| Total shareholders' equity | 628,015 | 529,097 |
| Total liabilities, redeemable non-controlling interest and shareholders' equity | $1,640,249 | $1,460,610 |

# **PGT INNOVATIONS, INC.**  
 **CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS**  
 (unaudited - in thousands)

|  | Year Ended |  |
| --- | --- | --- |
|  | December 31, 2022 | January 1, 2022 |
|  | (unaudited) |  |
| Cash flows from operating activities: |  |  |
| Net income | $98,405 | $35,196 |
| Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| Depreciation | 34,048 | 30,487 |
| Amortization | 26,150 | 21,082 |
| Impairment of trade name | 7,423 | - |
| Other asset impairments | 2,131 | - |
| Provision for allowance for credit losses | 10,979 | 3,834 |
| Stock-based compensation | 9,670 | 7,819 |
| Amortization of deferred financing costs, debt discount and premium | 1,242 | 978 |
| Debt extinguishment costs | 410 | 25,472 |
| Deferred income taxes | (11,340) | 7,632 |
| (Gain) loss on sales of assets | (240) | 261 |
| Change in operating assets and liabilities (net of effects of acquisitions): |  |  |
| Accounts receivable | (20,622) | (34,390) |
| Inventories | (12,017) | (15,984) |
| Contract assets, net, prepaid expenses, other current and other assets | 12,826 | (5,958) |
| Accounts payable, accrued and other liabilities | 37,309 | (12,750) |
| Net cash provided by operating activities | 196,374 | 63,679 |
| Cash flows from investing activities: |  |  |
| Purchases of property, plant and equipment | (45,377) | (33,424) |
| Investment in and acquisition of business | (188,580) | (220,676) |
| Proceeds from sales of assets | 37 | 187 |
| Net cash used in investing activities | (233,920) | (253,913) |
| Cash flows from financing activities: |  |  |
| Payment of fair value of contingent consideration in Anlin Acquisition | (2,362) | - |
| Proceeds of amounts drawn from revolving credit facility | 160,000 | - |
| Payments of borrowing under revolving credit facility | (83,648) | - |
| Proceeds from issuance of senior notes | - | 638,300 |
| Payments of senior notes | - | (425,000) |
| Payment of call-premium on redemption of senior notes | - | (21,518) |
| Proceeds from issuance of term loan debt | - | 60,000 |
| Payments of term loan debt | (60,000) | (54,000) |
| Payments of financing costs | (1,526) | (10,675) |
| Purchases of treasury stock under repurchase program | (1,565) | - |
| Purchases of treasury stock relating to tax withholdings on employee equity awards | (1,888) | (1,648) |
| Proceeds from exercise of stock options | - | 138 |
| Distribution to redeemable non-controlling interest | (1,665) | - |
| Proceeds from issuance of common stock under ESPP | 602 | 463 |
| Net cash provided by financing activities | 7,948 | 186,060 |
| Net decrease in cash and cash equivalents | (29,598) | (4,174) |
| Cash and cash equivalents at beginning of period | 96,146 | 100,320 |
| Cash and cash equivalents at end of period | $66,548 | $96,146 |

# **PGT INNOVATIONS, INC.**  
 **RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO THEIR**  
 **MOST DIRECTLY COMPARABLE GAAP EQUIVALENTS**  
 (unaudited - in thousands, except per share amounts and percentages)

|  | Three Months Ended |  | Year Ended |  |
| --- | --- | --- | --- | --- |
|  | Dec. 31, 2022 | Jan. 1, 2022 | Dec. 31, 2022 | Jan. 1, 2022 |
| Reconciliation to Adjusted Net Income and Adjusted Net Income per share - diluted: |  |  |  |  |
| Net income | $7,700 | $16,828 | $98,405 | $35,196 |
| Reconciling items: |  |  |  |  |
| Asset impairment charges (1) | - | - | 2,131 | - |
| WinDoor trade name impairment charge (2) | 7,423 | - | 7,423 | - |
| Cyberattack recovery costs (3) | 415 | - | 415 | - |
| Adjustments to contingent consideration (4) | 381 | - | 5,432 | - |
| Hurricane Ian-related costs (5) | 20 | - | 1,868 | - |
| Tax gross-up payment (6) | (59) | - | 368 | - |
| CGI Commercial relocation costs (7) | - | 602 | 277 | 602 |
| Acquisition-related costs (8) | 3,523 | 736 | 4,773 | 2,443 |
| Debt extinguishment costs (9) | 410 | - | 410 | 25,472 |
| Business wind-down costs (10) | - | - | - | 4,197 |
| Pandemic-related costs (11) | - | - | - | 1,041 |
| Product line rationalization and transition costs (12) | 682 | 1,300 | 682 | 1,300 |
| Tax effect of reconciling items | (4,351) | (650) | (6,194) | (8,482) |
| Adjusted net income | $16,144 | $18,816 | $115,990 | $61,769 |
| Weighted-average diluted shares | 60,441 | 60,172 | 60,319 | 60,058 |
| Adjusted net income per share - diluted | $0.27 | $0.31 | $1.92 | $1.03 |
| Reconciliation to Adjusted EBITDA: |  |  |  |  |
| Depreciation and amortization expense | $15,114 | $14,105 | $60,198 | $51,569 |
| Interest expense, net | 7,755 | 7,061 | 28,879 | 30,029 |
| Income tax expense | 2,756 | 5,499 | 32,666 | 9,759 |
| Reversal of tax effect of reconciling items for adjusted net income above | 4,351 | 650 | 6,194 | 8,482 |
| Stock-based compensation expense | 2,032 | 2,071 | 9,670 | 7,819 |
| Adjusted EBITDA | $48,152 | $48,202 | $253,597 | $169,427 |
| Adjusted EBITDA as percentage of net sales | 14.1% | 15.8% | 17.0% | 14.6% |

(1) Represents write-offs of property, equipment and other impaired assets, classified as selling, general and administrative expense in the accompanying condensed statement of operations for the three-months and year ended December 31, 2022.

(2) Represents impairment charge relating to our WinDoor trade name classified as impairment of trade name in the accompanying condensed statement of operations for the three-months and year ended December 31, 2022.

(3) Represents cyberattack recovery costs, classified as selling, general and administrative expense in the accompanying condensed statement of operations for the three-months and year ended December 31, 2022. We previously disclosed this event by Current Report on Form 8-K, filed with the SEC on November 7, 2022.

(4) Represents adjustments to contingent consideration associated with our Anlin Acquisition, classified as selling, general and administrative expenses in the accompanying consolidated statement of operations for the three-months and year ended December 31, 2022.

(5) Represents disruption and recovery costs caused by Hurricane Ian in late-September 2022, of which $1.1 million is classified within cost of sales, and $747 thousand is classified within selling, general and administrative expenses in the year ended December 31, 2022.

(6) Represents tax gross-up payment required to be made to the non-controlling interest relating to our acquisition of Eco, which we initially estimated to be $1.5 million, but which was ultimately determined to be $1.8 million, a difference of $368 thousand, which is classified within selling, general and administrative expenses in the year ended December 31, 2022.

(7) Represents additional costs relating to the relocation of our CGI Commercial business to a new location in the Miami, FL area, being shared with our Eco Enterprises entity, classified as cost of sales in the accompanying consolidated statement of operations for the year ended December 31, 2022.

(8) In 2022, represents costs relating to the Martin acquisition. In 2021, represents costs relating to our acquisitions of Eco and Anlin. These costs are classified within selling, general and administrative expenses in the years ended December 31, 2022, and January 1, 2022, respectively.

(9) In 2022, represents debt extinguishment costs relating to the refinancing of our 2016 Credit Agreement and repayment, in full, of the then existing term loan. In 2021, represents debt extinguishment costs relating to the prepayment of our $425 million of 6.750% senior notes due 2026, and the prepayment of our $54 million term loan A facility, which was due in 2022. Of the $25.5 million of debt extinguishment costs, $21.5 million represents a 5.063% call premium paid for prepaying the $425 million of 6.750% senior notes, and $4.0 million represents the net write-offs of deferred financing premiums, costs, fees and original issue discounts that existed at the time of these events. These costs are classified as debt extinguishment costs in the accompanying statement of operations for the years ended December 31, 2022, and January 1, 2022, respectively.

(10) Represents incremental costs related to the wind-down of our commercial business acquired in the New South acquisition. Of the $4.2 million of these costs, $2.7 million are classified as cost of sales, and $1.5 million are classified as selling, general and administrative expenses in the accompanying condensed consolidated statement of operations for the year ended January 1, 2022. A portion of these costs are being recovered through insurance.

(11) Represents incremental costs incurred relating to the coronavirus pandemic and resurgence of its Delta and Omicron variants in 2021, including cleaning and sanitizing costs for the protection of the health of our employees and safety of our facilities, as well as costs of lost productivity from employee quarantines and testing, classified within selling, general and administrative expenses for the year ended January 1, 2022.

(12) Represents costs relating to product line rationalizations and transitions, classified within cost of sales for the years ended December 31, 2022, and January 1, 2022, respectively.

**Attachment 3:** `pgti-ex99_2.pdf`

# FOURTH QUARTER 2022 FINANCIAL RESULTS

DECEMBER 31, 2022

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# FORWARD LOOKING STATEMENTS

This presentation contains 'forward-looking statements' within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: 'assume,' 'believe,' 'could,' 'estimate,' 'expect,' 'guidance,' 'intend,' 'many,' 'positioned,' 'potential,' 'project,' 'think,' 'should,' 'target,' 'will,' 'would' and similar references to future periods. Examples of forward-looking statements include, among others, statements we make regarding our acquisition or Martin Door Holdings, Inc. ('Martin'); our national footprint and depth of product offering providing a strong basis for growth; our share-repurchase program; and our net sales and Adjusted EBITDA guidance.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following:

- • the impact of the COVID-19 pandemic (the 'COVID-19 pandemic' or 'Pandemic') and related measures taken by governmental or regulatory authorities to combat the Pandemic, including the impact of the Pandemic and these measures on the economies and demand for our products in the states where we sell them, and on our customers, suppliers, labor force, business, operations and financial performance;
- • unpredictable weather and macroeconomic factors that may negatively impact the repair and remodel and new construction markets and the construction industry generally, especially in the state of Florida and the western United States, where the substantial portion of our sales are currently generated, and in the U.S. generally;
- • changes in raw material prices, especially for aluminum, glass, vinyl, and steel, including, price increases due to the implementation of tariffs and other trade-related restrictions, Pandemic-related supply chain interruptions, or interruptions from the conflict in Ukraine;
- • our dependence on a limited number of suppliers for certain of our key materials;
- • our dependence on our impact-resistant product lines, which increased with the acquisition of Eco Enterprises, LLC ('Eco'), and contemporary indoor/outdoor window and door systems, and on consumer preferences for those types and styles of products;
- • the effects of increased expenses or unanticipated liabilities incurred as a result of, or due to activities related to, our recent acquisitions, including our acquisitions of Martin and Anlin Windows & Doors ('Anlin');
- • our level of indebtedness, which increased in connection with our recent acquisitions, including our acquisitions of Martin and Anlin;
- • increases in credit losses from obligations owed to us by our customers in the event of a downturn in the home repair and remodel or new home construction channels in our core markets and our inability to collect such obligations from such customers;
- • the risks that the anticipated cost savings, synergies, revenue enhancement strategies and other benefits expected from our acquisitions of Martin and Anlin may not be fully realized or may take longer to realize than expected or that our actual integration costs may exceed our estimates;
- • increases in transportation costs, including increases in fuel prices;
- • our dependence on our limited number of geographically concentrated manufacturing facilities, which increased further due to our acquisition of Eco;
- • sales fluctuations to and changes in our relationships with key customers;
- • federal, state and local laws and regulations, including unfavorable changes in local building codes and environmental and energy code regulations;
- • risks associated with our information technology systems, including cybersecurity-related risks, such as unauthorized intrusions into our systems by 'hackers' and theft of data and information from our systems, and the risks that our information technology systems do not function as intended or experience temporary or long-term failures to perform as intended;
- • product liability and warranty claims brought against us;
- • in addition to our acquisitions of Martin and Anlin, our ability to successfully integrate businesses we may acquire in the future, or that any business we acquire may not perform as we expected when we acquired it; and
- • the other risks and uncertainties discussed under 'Risk Factors' in Part I, Item 1A of our Annual Report on Form 10-K/A for the year ended January 1, 2022, and our other filings with the Securities and Exchange Commission.

Any forward-looking statement made by us in this presentation is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

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# USE OF NON-GAAP FINANCIAL MEASURES

This earnings presentation and related financial schedules include financial measures and terms not calculated in accordance with U.S. generally accepted accounting principles (GAAP). Management believes that presentation of non-GAAP measures such as Adjusted net income, Adjusted net income per share, Adjusted EBITDA, and free cash flow provides investors and analysts with an alternative method for assessing our operating results in a manner that enables investors and analysts to more thoroughly evaluate our current performance compared to past performance. However, these measures do not provide a complete picture of our operations. Management also believes these non-GAAP measures provide investors with a better baseline for assessing our future earnings potential. The non-GAAP measures included in this earnings presentation are provided to give investors access to types of measures that we use in analyzing our results, and for internal planning and forecasting purposes.

Adjusted net income consists of GAAP net income adjusted for the items included in the accompanying reconciliation. Adjusted net income per share consists of GAAP net income per share adjusted for the items included in the accompanying reconciliation.

Adjusted EBITDA consists of net income, adjusted for the items included in the accompanying reconciliation. We believe that adjusted EBITDA provides useful information to investors and analysts about the Company's performance because they eliminate the effects of period-to-period changes in taxes, costs associated with capital investments and interest expense. Adjusted EBITDA does not give effect to the cash the Company must use to service its debt or pay its income taxes and thus does not reflect the actual funds generated from operations or available for capital investments. Adjusted EBITDA margin consists of EBITDA divided by net sales.

Bank-covenant adjusted EBITDA consists of adjusted EBITDA, as previously described, plus adjustments to reflect management's estimates of the inclusion of the adjusted EBITDA of acquisitions. Bank-covenant adjusted EBITDA is included for the purpose of enabling investors to understand the calculation of, and compliance with, the financial maintenance covenant in our credit documents. See Note (12) on slide 19.

Free cash flow consists of Operating cash flow less purchases of property, plant and equipment as presented on condensed consolidated statement of cash flow.

Our calculations of adjusted net income and adjusted net income per share, adjusted EBITDA and bank-covenant adjusted EBITDA are not necessarily comparable to calculations performed by other companies and reported as similarly titled measures. These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, such as net income, but should not be considered a substitute for or superior to GAAP measures. Schedules that reconcile adjusted net income, adjusted net income per share, adjusted EBITDA, and bank-covenant adjusted EBITDA to GAAP net income are included in the financial schedules accompanying this release.

We are not able to provide a reconciliation of projected Q1 2023 Adjusted EBITDA to the most directly comparable expected GAAP results due to the unknown effect, timing and potential significance of the effects of legal matters, tax considerations, and income and expense from changes in fair value of contingent consideration from acquisitions. Expenses associated with legal matters, tax consequences, and income and expense from changes in fair value of contingent consideration from acquisitions have in the past, and may in the future, significantly affect GAAP results in a particular period.

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## KEY MESSAGES

- ▶ 1 Q4 2022 net sales increased 12% vs prior-year quarter to $341M, total organic growth of 5%; full-year net sales of $1.49B
- ▶ 2 Adjusted EBITDA1 margin versus the prior-year quarter impacted by Hurricane Ian and ransomware incident
- ▶ 3 Diligent supply chain and raw materials management
- ▶ 4 Generated strong cash flow, ending the quarter with a cash balance of $67M and total liquidity of $235M; liquidity influenced by new credit facility
- ▶ 5 In October, acquired Martin Door, a leading custom manufacturing of premium overhead garage doors

1. Refer to reconciliation to GAAP on slide 15.

BGI
BANK OF THE
INVESTMENT

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# SALES TRENDS

## Southeast Region Highlights

- Q4'22 organic sales up 2% YoY
- Sales growth impacted by disruptions from Hurricane Ian and ransomware incident
- Sequential increase in orders from Q3'22
- Strong operations recovery resulting in further reduction in lead-times

## Western Region Highlights

- Q4'22 organic sales up 15% YoY
- WWS production capacity up 30%
- Anlin growing in R&R vinyl market
- Integration of Martin in early stages, with sales synergies identified

## Looking Ahead

- New product offerings with narrow site lines in both regions
- Innovative glass offerings - Diamond Glass and Thin Triple Insulated Glass Unit
- Total Open Order Backlog1 at $235M down versus Q4 2021 at $356M due to shortened lead times and improved operational performance

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1 Open Order Backlog in all periods includes orders in which revenue has been recognized in accordance with ASC 606.

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# Q4 2022 RESULTS

Recognized leader in premium windows and doors that can withstand some of the toughest weather conditions on earth and unify indoor/outdoor living spaces

|  | Q4 2022 | vs. Q4 2021 |  |
| --- | --- | --- | --- |
| Net Sales | $340.9M | 12.0% | ↑ |
| Gross Profit | $121.1M | 11.8% | ↑ |
| Gross Margin | 35.5% | Flat | ↔ |
| Adjusted EBITDA 1 | $48.2M | Flat | ↔ |
| Adj. EBITDA Margin 1 | 14.1% | 170bps | ↓ |
| Adj. Net Income per Share - Diluted 1 | $0.27 | 12.9% | ↓ |

## Highlights

- Total revenue growth of 12%, including 5% organic growth
- Western up 15% organically, Southeast up 2%
- Pricing offsetting raw material and wage inflation
- EBITDA margin impacted by inefficiencies from Hurricane Ian and ransomware incident
- EPS includes impact of $8M in expense related to WinDoor trade name impairment and product rationalization

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1. Refer to reconciliation to GAAP.
2. Open-Order Backlog in all periods includes orders in which revenue has been recognized in accordance with ASC 606.

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# BALANCE SHEET AND LIQUIDITY UPDATE

NET LEVERAGE

| Total Debt Outstanding | $651.4M |
| --- | --- |
| Less: Cash | $66.6M |
| Net Debt | $584.8M |
| Bank-Covenant LTM Adj EBITDA 1 | $270.5M |
| Net Debt to Bank-Covenant Adj EBITDA 1 | 2.2x |

LIQUIDITY PROFILE

| Cash | $66.6M |
| --- | --- |
| Unused Credit Capacity | $167.9M |
| Total Available Liquidity | $234.5M |
| Senior Notes (Oct 2029) | $575.0M |
| Revolver (Oct 2027) 2 | $76.4M |
| Total Debt Outstanding | $651.4M |

Debt Maturity Schedule ($M)

as of 12/31/2022

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COMMENTARY

- Strong and flexible balance sheet provides ability to fund capital priorities
- Generated $151M of free cash flow$^{1}$, an increase of $121M from prior year
- Expense mitigation resulting in elevated free cash flow profile

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1. Refer to reconciliation to GAAP on slide 14 for calculations of the ratio of net debt to bank-covenant adjusted EBITDA, net debt to adjusted EBITDA and free cash flow.; 2. Borrowings under our new $250.0M revolving credit facility are due October 2027. We drew $160.0M to repay $60.0M of borrowings under our then existing term loan, with the remaining proceeds used to fund the Martin Acquisition. Since borrowing $160.0M, we repaid $83.6M through the end of 2022, and an additional $12.4M in 2023. Borrowings currently outstanding under the revolving credit facility total $64.0M.

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# LONG-TERM CAPITAL ALLOCATION PRIORITIES

## INTERNAL INVESTMENT

- Investment in continuous improvement expected to drive margin growth
- Strategic selling initiatives and marketing enhancements driving sales
- Capex target: 3-4% of sales

## SHARE REPURCHASES

- $250M over three years; funded with cash flow from operations
- Long-term target Leverage Ratio of 2x - 3x

## STRATEGIC ACQUISITIONS

- Aligned with growth priorities and expected to grow shareholder value over the long-term
- Expansion into new regions, channels or products
- Addition of technologies, enhanced manufacturing or supply chain capabilities

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# MODELING ASSUMPTIONS, Q1 2022 ACTUAL AND Q1 2023 GUIDANCE

Q1 2023 Modeling Assumptions

Depreciation and Amortization2
~$15M

Interest Expense
$8 - 9M

Non-cash Stock Compensation
~$3M

Capex as % of Net Sales
3% - 4%

Tax Rate
25-26%

Q1 2022 Results

Net Sales
$359M

Adjusted EBITDA1
$59M

Q1 2023 Guidance Updated
2/22/23

Net Sales
$370M - $390M

Adjusted EBITDA
$60M - $64M

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1. Refer to reconciliation to GAAP.

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## WHY INVEST IN PGT INNOVATIONS

01.

National leader in growing premium impact-resistant and indoor / outdoor window and door category

02.

Well positioned with diversified product portfolio to capture profitable growth in new construction and R&R channels

03.

Continued focus on operational efficiencies expected to drive additional margin expansion

04.

Expect to continue investing in R&D and talent to remain an industry leader in innovation and product development

05.

Increasing shareholder value through return of capital and strategic investments

RCH
INVESTMENT

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**Q&A**

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# APPENDIX

Reconciliation to Pro Forma Net Debt Leverage Ratio, Adjusted Net Income, Adjusted Net Income per Share-diluted, Adjusted EBITDA, Bank-Covenant Adjusted EBITDA, and Free Cash Flow

# RECONCILIATION OF GAAP TO NON-GAAP MEASURES

(UNAUDITED - IN THOUSANDS)

|  | At January 1, 2022 | At Dec. 31, 2022 |
| --- | --- | --- |
| 4.375% Senior Notes due 2029 | $575,000 | $575,000 |
| Term loan borrowings | 60,000 | - |
| Revolving credit facility borrowings | - | 76,352 |
| Total debt at January 1, 2022 and December 31, 2022 | $635,000 | $651,352 |

|  | At January 1, 2022 | At Dec. 31, 2022 |
| --- | --- | --- |
| Cash and cash equivalents at January 1, 2022 and December 31, 2022 | $96,146 | $66,548 |

|  | At January 1, 2022 | At Dec. 31, 2022 |
| --- | --- | --- |
| Debt outstanding at January 1, 2022 and December 31, 2022 | $635,000 | $651,352 |
| Less: Cash and cash equivalents at January 1, 2022 and December 31, 2022 | (96,146) | (66,548) |
| Net debt at January 1, 2022 and December 31, 2022 | $538,854 | $584,804 |

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# RECONCILIATION OF GAAP TO NON-GAAP MEASURES

(UNAUDITED - IN THOUSANDS, EXCEPT RATIO)

|  | Twelve Mos. Ended January 1, 2022 | Twelve Mos. Ended December 31, 2022 |
| --- | --- | --- |
| Net income | $35,196 | $98,405 |
| Depreciation and amortization | 51,569 | 60,198 |
| Interest expense, net | 30,029 | 28,879 |
| Income tax expense | 9,759 | 32,666 |
| EBITDA | 126,553 | 220,148 |
| Asset impairment charges (1) | - | 2,131 |
| WinDoor trade name impairment charge (2) | - | 7,423 |
| Cyberattack recovery costs (3) | - | 415 |
| Adjustments to contingent consideration (4) | - | 5,432 |
| Hurricane Ian-related costs (5) | - | 1,868 |
| Tax gross-up payment (6) | - | 368 |
| CGI Commercial relocation costs (7) | 602 | 277 |
| Acquisition-related costs (8) | 2,443 | 4,773 |
| Debt extinguishment costs (9) | 25,472 | 410 |
| Business wind-down costs (10) | 4,197 | - |
| Pandemic-related costs (11) | 1,041 | - |
| Product line rationalization costs (12) | 1,300 | 682 |
| Stock-based compensation expense | 7,819 | 9,670 |
| Adjusted EBITDA | 169,427 | 253,597 |
| Add: Pre-acquisition bank-covenant Adj. EBITDA relating Eco and Anlin (2021), and Martin (2022) (13) | 14,335 | 16,863 |
| Bank-covenant adjusted EBITDA for the TTM periods ended January 1, 2022 and December 31, 2022 (14) | $183,762 | $270,460 |
| Net debt at January 1, 2022 and December 31, 2022 | $538,854 | $584,804 |
| Adjusted EBITDA for the TTM periods ended January 1, 2022 and December 31, 2022 | $169,427 | $253,597 |
| Net debt leverage ratio at January 1, 2022 and December 31, 2022 based on adjusted EBITDA | 3.2x | 2.3x |
| Net debt at January 1, 2022 and December 31, 2022 | $538,854 | $584,804 |
| Bank-covenant adjusted EBITDA for the TTM periods ended January 1, 2022 and December 31, 2022 (14) | $183,762 | $270,460 |
|  | 2.9x | 2.2x |
|  | Free Cash Flow | Free Cash Flow |
|  | Twelve Mos. Ended January 1, 2022 | Twelve Mos. Ended December 31, 2022 |
| Net cash provided by operating activities | $196,374 | $63,679 |
| Purchases of property, plant and equipment | (45,377) | (33,424) |
| Free cash flow for the TTM periods ended January 1, 2022 and December 31, 2022 | $150,997 | $30,255 |

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# RECONCILIATION OF GAAP TO NON-GAAP MEASURES

(UNAUDITED - IN THOUSANDS, EXCEPT PER SHARE AMOUNTS AND PERCENTAGES)

THREE MONTHS ENDED APRIL 1, 2022, DECEMBER 31, 2022, AND JANUARY 1, 2022

|  | Three Months Ended |  |  |
| --- | --- | --- | --- |
|  | Apr. 2, 2022 | Dec. 31, 2022 | Jan. 1, 2022 |
| Reconciliation to Adjusted Net Income and Adjusted Net Income per share - diluted: |  |  |  |
| Net income | $23,826 | $7,700 | $16,828 |
| Reconciling items: |  |  |  |
| Asset impairment charges (1) | 723 | - | - |
| WinDoor trade name impairment charge (2) | - | 7,423 | - |
| Cyberattack recovery costs (3) | - | 415 | - |
| Adjustments to contingent consideration (4) | 961 | 381 | - |
| Hurricane tan-related costs (5) | - | 20 | - |
| Tax gross-up payment (6) | - | (59) | - |
| CGI Commercial relocation costs (7) | - | - | 602 |
| Acquisition-related costs (8) | - | 3,523 | 736 |
| Debt extinguishment costs (9) | - | 410 | - |
| Product line rationalization and transition costs (12) | - | 682 | 1,300 |
| Tax effect of reconciling items | (432) | (4,351) | (650) |
| Adjusted net income | $25,078 | $16,144 | $18,816 |
| Weighted-average diluted shares | 60,219 | 60,441 | 60,172 |
| Adjusted net income per share - diluted | $0.42 | $0.27 | $0.31 |
| Reconciliation to Adjusted EBITDA: |  |  |  |
| Depreciation and amortization expense | $16,513 | $15,114 | $14,105 |
| Interest expense, net | 7,080 | 7,755 | 7,061 |
| Income tax expense | 7,805 | 2,756 | 5,499 |
| Reversal of tax effect of reconciling items for adjusted net income above | 432 | 4,351 | 650 |
| Stock-based compensation expense | 2,205 | 2,032 | 2,071 |
| Adjusted EBITDA | $59,113 | $48,152 | $48,202 |
| Adjusted EBITDA as percentage of net sales | 16.5% | 14.1% | 15.8% |

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# RECONCILIATION OF GAAP TO NON-GAAP MEASURES

1. (1) Represents write-offs of property and equipment and other impaired assets, classified as selling, general and administrative expense.
2. (2) Represents impairment charge relating to our WinDoor trade name classified as impairment of trade name.
3. (3) Represents cyberattack recovery costs, classified as selling, general and administrative expense. We previously disclosed this event by Current Report on Form 8-K, filed with the SEC on November 7, 2022.
4. (4) Represents adjustments to contingent consideration associated with our Anlin Acquisition, classified as selling, general and administrative expenses.
5. (5) Represents disruption and recovery costs caused by Hurricane Ian in late-September 2022, of which \$1.1 million is classified as cost of sales, and \$747 thousand is classified as selling, general and administrative expenses.
6. (6) Represents tax gross-up payment required to be made to the non-controlling interest relating to our acquisition of Eco, classified within selling, general and administrative expenses.
7. (7) Represents additional costs relating to the relocation of our CGI Commercial business to a new location in the Miami, FL area, being shared with our Eco Enterprises entity, classified as cost of sales.
8. (8) In 2022, represents costs relating to our Martin acquisition. In 2021, represents costs relating to our Eco and Anlin acquisitions. All acquisition costs were classified as selling, general and administrative expenses.
9. (9) In 2022, represents debt extinguishment costs relating to the refinancing of our 2016 Credit Agreement and repayment, in full, of the then existing term loan. In 2021, represents debt extinguishment costs relating to the issuance of our \$575 million of 4.375% senior notes due 2020 and contemporaneous prepayment of our \$425 million of 6.750% senior notes due 2026. Of the \$25.5 million of debt extinguishment costs, \$21.5 million represents a 5.063% call premium paid for prepaying the \$425 million of 6.750% senior notes, and \$4.0 million represents the net write-offs of deferred financing premiums, costs, fees and original issue discounts that existed at the time of these events, classified as debt extinguishment costs.
10. (10) Represents incremental costs related to the wind-down in the first quarter of 2021 of our commercial business acquired in the New South acquisition. Of the \$4.2 million of these costs, \$2.7 million are classified as cost of sales, and \$1.5 million are classified as selling, general and administrative expenses. A portion of these costs may be recoverable through insurance.
11. (11) Represents incremental costs incurred relating to the coronavirus pandemic and resurgence of its Delta and Omicron variants in 2021, including cleaning and sanitizing costs for the protection of the health of our employees and safety of our facilities, as well as costs of lost productivity from employee quarantines and testing, classified as selling, general and administrative expenses.
12. (12) Represents costs relating to product line rationalizations and transitions, classified as cost of sales.
13. (13) Adjusted EBITDA of Anlin and Eco (2021), and Martin (2022) represents, for the applicable periods, management's estimates of Adjusted EBITDA of the acquired business, based on its historical financial information at the time of acquisition, as adjusted to give effect to (a) the elimination of expenses related to the prior owners and certain other costs and expenses that are not indicative of the underlying business performance, if any, as if such business had been acquired on the first day of such period ('Acquisition EBITDA Adjustments'), and (b) contract and acquisition annualization for contracts entered into and acquisitions completed by such acquired business prior to our acquisition. Further adjustments are made to such Adjusted EBITDA to reflect estimated operating cost savings and synergies, if any, anticipated to be realized upon acquisition and integration of the business into our operations. We use Adjusted EBITDA for the acquired businesses to adjust our Adjusted EBITDA to include a proportional amount of the Adjusted EBITDA of the acquired businesses based upon the respective number of months of operation for such period prior to the date of our acquisition of each such business.
14. (14) Bank-Covenant Adjusted EBITDA represents Adjusted EBITDA for the applicable period as adjusted to give effect to management's estimates of Adjusted EBITDA of Anlin and Eco (2021), and Martin (2022). These adjustments reflect monthly allocations of Adjusted EBITDA for the acquired businesses based on straight-line proration. As a result, these estimates do not take into account the seasonality of a particular acquired business. While we do not believe the seasonality of any-one acquired business is material when aggregated with other acquired businesses, the estimates may result in a higher or lower adjustment to our Bank-Covenant Adjusted EBITDA than would have resulted had we adjusted for the actual results of each of the acquired businesses for the period prior to our acquisition. We believe that Bank-Covenant Adjusted EBITDA is useful to investors and creditors to monitor and evaluate our borrowing capacity and compliance with certain of our debt covenants. Bank-Covenant Adjusted EBITDA as presented herein is calculated in accordance with the terms of our existing term loan credit agreement.
15. (15) Bank-Covenant net debt leverage ratio represents Net debt divided by Bank-Covenant Adjusted EBITDA.

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