Delaware
|
|
3089
|
|
20-0645710
|
(State or other jurisdiction of incorporation or organization)
|
|
(Primary Standard Industrial Classification Code Number)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
|
|
|
|
|
5020 Weston Parkway, Suite 400
Cary, North Carolina 27513 |
|
|
|
||
|
||
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
||
|
|
|
|
|
|
(Amounts in thousands, except shares and per share data)
|
|
For the three months ended
|
||||||
|
|
March 29, 2014
|
|
March 30, 2013
|
||||
Net sales
|
|
$
|
269,465
|
|
|
$
|
257,097
|
|
Cost of products sold
|
|
229,652
|
|
|
215,251
|
|
||
Gross profit
|
|
39,813
|
|
|
41,846
|
|
||
Operating expenses:
|
|
|
|
|
|
|
||
Selling, general and administrative expenses
|
|
54,080
|
|
|
38,216
|
|
||
Amortization of intangible assets
|
|
5,322
|
|
|
4,202
|
|
||
Total operating expenses
|
|
59,402
|
|
|
42,418
|
|
||
Operating loss
|
|
(19,589
|
)
|
|
(572
|
)
|
||
Foreign currency loss
|
|
(228
|
)
|
|
(33
|
)
|
||
Interest expense
|
|
(18,518
|
)
|
|
(23,668
|
)
|
||
Interest income
|
|
24
|
|
|
15
|
|
||
Tax receivable agreement liability adjustment
|
|
(4,373
|
)
|
|
—
|
|
||
Loss on modification or extinguishment of debt
|
|
(21,364
|
)
|
|
—
|
|
||
Loss before provision (benefit) for income taxes
|
|
(64,048
|
)
|
|
(24,258
|
)
|
||
Provision (benefit) for income taxes
|
|
(12,470
|
)
|
|
3,849
|
|
||
Net loss
|
|
$
|
(51,578
|
)
|
|
$
|
(28,107
|
)
|
Comprehensive loss
|
|
$
|
(56,595
|
)
|
|
$
|
(28,875
|
)
|
|
|
|
|
|
||||
Basic and diluted net loss per share attributable to common shareholders
|
|
$
|
(0.76
|
)
|
|
$
|
(0.57
|
)
|
|
|
|
|
|
||||
Basic and diluted weighted average shares outstanding
|
|
67,745,331
|
|
|
48,962,494
|
|
(Amounts in thousands, except share amounts)
|
|
March 29, 2014
|
|
December 31, 2013
|
||||
ASSETS
|
|
|
|
|
||||
Current Assets:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
15,495
|
|
|
$
|
69,801
|
|
Accounts receivable, less allowances of $4,331 and $4,453, respectively
|
|
163,579
|
|
|
140,062
|
|
||
Inventories:
|
|
|
|
|
|
|
||
Raw materials
|
|
55,281
|
|
|
51,313
|
|
||
Work in process
|
|
25,419
|
|
|
23,817
|
|
||
Finished goods
|
|
72,352
|
|
|
60,340
|
|
||
Total inventory
|
|
153,052
|
|
|
135,470
|
|
||
Prepaid expenses and other current assets
|
|
27,475
|
|
|
23,214
|
|
||
Deferred income taxes
|
|
7,591
|
|
|
3,178
|
|
||
Total current assets
|
|
367,192
|
|
|
371,725
|
|
||
Property and Equipment, at cost:
|
|
|
|
|
|
|
||
Land
|
|
4,490
|
|
|
4,528
|
|
||
Buildings and improvements
|
|
43,386
|
|
|
43,691
|
|
||
Machinery and equipment
|
|
324,556
|
|
|
321,614
|
|
||
Total property and equipment
|
|
372,432
|
|
|
369,833
|
|
||
Less accumulated depreciation
|
|
(262,199
|
)
|
|
(258,186
|
)
|
||
Total property and equipment, net
|
|
110,233
|
|
|
111,647
|
|
||
Other Assets:
|
|
|
|
|
|
|
||
Intangible assets, net
|
|
103,546
|
|
|
110,012
|
|
||
Goodwill
|
|
418,487
|
|
|
420,228
|
|
||
Deferred income taxes
|
|
5,027
|
|
|
5,406
|
|
||
Other
|
|
29,200
|
|
|
23,233
|
|
||
Total other assets
|
|
556,260
|
|
|
558,879
|
|
||
|
|
$
|
1,033,685
|
|
|
$
|
1,042,251
|
|
LIABILITIES AND STOCKHOLDERS' DEFICIT
|
|
|
|
|
|
|
||
Current Liabilities:
|
|
|
|
|
|
|
||
Accounts payable
|
|
$
|
77,231
|
|
|
$
|
82,981
|
|
Accrued expenses
|
|
90,581
|
|
|
112,940
|
|
||
Total current liabilities
|
|
167,812
|
|
|
195,921
|
|
||
Deferred income taxes
|
|
16,573
|
|
|
17,115
|
|
||
Payable to related parties pursuant to tax receivable agreement
|
|
15,996
|
|
|
11,623
|
|
||
Other long-term liabilities
|
|
52,082
|
|
|
52,560
|
|
||
Long-term debt
|
|
888,393
|
|
|
817,028
|
|
||
|
|
|
|
|
||||
Commitments and contingencies
|
|
|
|
|
|
|
||
|
|
|
|
|
||||
Stockholders' Deficit:
|
|
|
|
|
|
|
||
Preferred stock $0.01 par, 50,000,000 shares authorized, none issued and outstanding
|
|
—
|
|
|
—
|
|
||
Common stock $0.01 par, 250,000,000 shares authorized, 67,810,280 and 67,223,233 issued and outstanding, respectively
|
|
678
|
|
|
672
|
|
||
Additional paid-in-capital
|
|
743,209
|
|
|
741,789
|
|
||
Accumulated deficit
|
|
(842,821
|
)
|
|
(791,243
|
)
|
||
Accumulated other comprehensive loss
|
|
(8,237
|
)
|
|
(3,214
|
)
|
||
Total stockholders' deficit
|
|
(107,171
|
)
|
|
(51,996
|
)
|
||
|
|
$
|
1,033,685
|
|
|
$
|
1,042,251
|
|
(Amounts in thousands)
|
|
For the three months ended
|
||||||
|
|
March 29, 2014
|
|
March 30, 2013
|
||||
Cash flows from operating activities:
|
|
|
|
|
||||
Net loss
|
|
$
|
(51,578
|
)
|
|
$
|
(28,107
|
)
|
Adjustments to reconcile net loss to cash
|
|
|
|
|
|
|
||
used in operating activities:
|
|
|
|
|
|
|
||
Depreciation and amortization expense
|
|
11,284
|
|
|
9,715
|
|
||
Non-cash restructuring costs
|
|
1,259
|
|
|
—
|
|
||
Non-cash interest expense, net
|
|
4,172
|
|
|
2,833
|
|
||
Loss on foreign currency transactions
|
|
228
|
|
|
33
|
|
||
Non-cash litigation expense
|
|
5,000
|
|
|
—
|
|
||
Loss on modification or extinguishment of debt
|
|
21,364
|
|
|
—
|
|
||
Stock based compensation
|
|
398
|
|
|
456
|
|
||
Deferred income taxes
|
|
(4,867
|
)
|
|
3,048
|
|
||
Tax receivable agreement liability adjustment
|
|
4,373
|
|
|
—
|
|
||
Increase (decrease) in tax uncertainty, net of valuation allowance
|
|
117
|
|
|
(206
|
)
|
||
Other
|
|
(157
|
)
|
|
(8
|
)
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
||
Accounts receivable, net
|
|
(24,792
|
)
|
|
(21,329
|
)
|
||
Inventories
|
|
(18,811
|
)
|
|
(22,229
|
)
|
||
Prepaid expenses and other assets
|
|
(5,517
|
)
|
|
(511
|
)
|
||
Accounts payable
|
|
(6,433
|
)
|
|
11,697
|
|
||
Accrued expenses
|
|
(27,064
|
)
|
|
(13,235
|
)
|
||
Cash payments on restructuring liabilities
|
|
(2,075
|
)
|
|
(539
|
)
|
||
Other
|
|
2,811
|
|
|
(1,032
|
)
|
||
Net cash used in operating activities
|
|
(90,288
|
)
|
|
(59,414
|
)
|
||
Cash flows from investing activities:
|
|
|
|
|
|
|
||
Capital expenditures
|
|
(5,677
|
)
|
|
(6,665
|
)
|
||
Proceeds from sale of assets
|
|
617
|
|
|
11
|
|
||
Net cash used in investing activities
|
|
(5,060
|
)
|
|
(6,654
|
)
|
||
Cash flows from financing activities:
|
|
|
|
|
|
|
||
Proceeds from long-term debt
|
|
927,850
|
|
|
—
|
|
||
Net revolver borrowings
|
|
40,000
|
|
|
50,000
|
|
||
Payments on long-term debt
|
|
(852,000
|
)
|
|
—
|
|
||
Payment of tender and early call premiums
|
|
(61,142
|
)
|
|
—
|
|
||
Proceeds from exercises of employee stock options
|
|
1,026
|
|
|
—
|
|
||
Debt issuance costs paid
|
|
(14,321
|
)
|
|
(62
|
)
|
||
Net cash provided by financing activities
|
|
41,413
|
|
|
49,938
|
|
||
Impact of exchange rate movements on cash
|
|
(371
|
)
|
|
98
|
|
||
Net decrease in cash and cash equivalents
|
|
(54,306
|
)
|
|
(16,032
|
)
|
||
Cash and cash equivalents at the beginning of the period
|
|
69,801
|
|
|
27,194
|
|
||
Cash and cash equivalents at the end of the period
|
|
$
|
15,495
|
|
|
$
|
11,162
|
|
Buildings and improvements
|
10-37 years
|
Machinery and equipment, including leases
|
3-15 years
|
Leasehold improvements
|
Term of lease or useful life, whichever is shorter
|
•
|
Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.
|
•
|
Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.
|
•
|
Level 3: Inputs that reflect the reporting entity’s own assumptions.
|
|
|
|
|
|
|
Quoted Prices
in Active Markets |
|
Significant
Other |
|
Significant
|
||||||||||
(Amounts in thousands)
|
|
|
|
Fair
|
|
for Identical
|
|
Observable
|
|
Unobservable
|
||||||||||
|
|
Carrying
|
|
Value
|
|
Assets
|
|
Inputs
|
|
Inputs
|
||||||||||
Description
|
|
Value
|
|
Total
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Senior Notes-6.50%
|
|
$
|
500,000
|
|
|
$
|
500,625
|
|
|
$
|
500,625
|
|
|
$
|
—
|
|
|
$
|
—
|
|
As of March 29, 2014
|
|
$
|
500,000
|
|
|
$
|
500,625
|
|
|
$
|
500,625
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Senior Notes-9.375%
|
|
$
|
96,000
|
|
|
$
|
103,440
|
|
|
$
|
103,440
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Senior Secured Notes-8.25%
|
|
756,000
|
|
|
805,140
|
|
|
805,140
|
|
|
—
|
|
|
—
|
|
|||||
As of December 31, 2013
|
|
$
|
852,000
|
|
|
$
|
908,580
|
|
|
$
|
908,580
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(Amounts in thousands)
|
|
Average
Amortization Period |
|
|
|
Accumulated
|
|
Net Carrying
|
||||||
|
|
(in Years)
|
|
Cost
|
|
Amortization
|
|
Value
|
||||||
As of March 29, 2014
|
|
|
|
|
|
|
|
|
||||||
Patents
|
|
14
|
|
$
|
12,770
|
|
|
$
|
(9,486
|
)
|
|
$
|
3,284
|
|
Trademarks/Tradenames
|
|
10
|
|
91,860
|
|
|
(66,968
|
)
|
|
24,892
|
|
|||
Customer relationships
|
|
12
|
|
187,055
|
|
|
(112,321
|
)
|
|
74,734
|
|
|||
Other
|
|
5
|
|
3,540
|
|
|
(2,904
|
)
|
|
636
|
|
|||
Total intangible assets
|
|
12
|
|
$
|
295,225
|
|
|
$
|
(191,679
|
)
|
|
$
|
103,546
|
|
|
|
|
|
|
|
|
|
|
||||||
As of December 31, 2013:
|
|
|
|
|
|
|
|
|
|
|
|
|||
Patents
|
|
14
|
|
$
|
12,770
|
|
|
$
|
(9,250
|
)
|
|
$
|
3,520
|
|
Trademarks/Tradenames
|
|
10
|
|
91,884
|
|
|
(65,801
|
)
|
|
26,083
|
|
|||
Customer relationships
|
|
12
|
|
187,055
|
|
|
(107,721
|
)
|
|
79,334
|
|
|||
Other
|
|
5
|
|
3,427
|
|
|
(2,352
|
)
|
|
1,075
|
|
|||
Total intangible assets
|
|
12
|
|
$
|
295,136
|
|
|
$
|
(185,124
|
)
|
|
$
|
110,012
|
|
|
Amortization
|
||
(Amounts in thousands)
|
expense
|
||
|
|
||
2014 (remainder of year)
|
$
|
15,084
|
|
2015
|
20,339
|
|
|
2016
|
19,661
|
|
|
2017
|
15,826
|
|
|
2018
|
15,045
|
|
(Amounts in thousands)
|
|
For the three months ended
|
||||||
|
|
March 29, 2014
|
|
March 30, 2013
|
||||
Net loss
|
|
$
|
(51,578
|
)
|
|
$
|
(28,107
|
)
|
Foreign currency translation adjustment
|
|
(4,660
|
)
|
|
(768
|
)
|
||
Unrealized loss on derivative instrument
|
|
(357
|
)
|
|
—
|
|
||
Comprehensive loss
|
|
$
|
(56,595
|
)
|
|
$
|
(28,875
|
)
|
(Amounts in thousands)
|
|
|
|
|
||||
|
|
March 29, 2014
|
|
December 31, 2013
|
||||
Senior secured asset based revolving credit facility
|
|
$
|
40,000
|
|
|
$
|
—
|
|
Term Loan due 2021, net of unamortized early tender premium
|
|
|
|
|
||||
and discount of $37,132 and $0, respectively
|
|
392,868
|
|
|
—
|
|
||
6.50% Senior notes due 2022, net of unamortized early tender premium
|
|
|
|
|
||||
and discount of $44,475 and $0, respectively
|
|
455,525
|
|
|
—
|
|
||
8.25% Senior secured notes due 2018, net of unamortized early
|
|
|
|
|
|
|
||
tender premium and discount of $0 and $30,426, respectively
|
|
—
|
|
|
725,574
|
|
||
9.375% Senior notes due 2017, net of
|
|
|
|
|
||||
unamortized discount of $0 and $4,546, respectively
|
|
—
|
|
|
91,454
|
|
||
|
|
$
|
888,393
|
|
|
$
|
817,028
|
|
(Amounts in thousands)
|
|
For the three months ended
|
||||||
|
|
March 29, 2014
|
|
March 30, 2013
|
||||
Loss on extinguishment of debt:
|
|
|
|
|
|
|
||
Tender premium
|
|
$
|
8,493
|
|
|
$
|
—
|
|
8.25% Senior Secured Notes and 9.375% Senior Notes unamortized discount
|
|
4,773
|
|
|
—
|
|
||
8.25% Senior Secured Notes and 9.375% Senior Notes unamortized debt issuance costs
|
|
2,067
|
|
|
—
|
|
||
Term Loan Facility unamortized discount
|
|
255
|
|
|
—
|
|
||
|
|
15,588
|
|
|
—
|
|
||
Loss on modification of debt:
|
|
|
|
|
||||
Third party fees for 8.25% Senior Secured Notes and 9.375% Senior Notes
|
|
302
|
|
|
—
|
|
||
Third party fees for 6.50% Senior Notes and Term Loan Facility
|
|
5,474
|
|
|
—
|
|
||
|
|
5,776
|
|
|
—
|
|
||
|
|
|
|
|
||||
Total loss on modification or extinguishment of debt
|
|
$
|
21,364
|
|
|
$
|
—
|
|
(Amounts in thousands)
|
|
For the three months ended
|
||||||
|
|
March 29, 2014
|
|
March 30, 2013
|
||||
Service cost
|
|
$
|
—
|
|
|
$
|
29
|
|
Interest cost
|
|
476
|
|
|
440
|
|
||
Expected return on plan assets
|
|
(567
|
)
|
|
(513
|
)
|
||
Amortization of loss
|
|
116
|
|
|
234
|
|
||
Net periodic benefit expense
|
|
$
|
25
|
|
|
$
|
190
|
|
(Amounts in thousands)
|
|
March 29, 2014
|
|
December 31, 2013
|
||||
Product claim liabilities
|
|
$
|
140
|
|
|
$
|
140
|
|
Multiemployer pension plan withdrawal liability
|
|
2,385
|
|
|
2,362
|
|
||
Other
|
|
655
|
|
|
576
|
|
||
|
|
$
|
3,180
|
|
|
$
|
3,078
|
|
|
|
For the three months ended
|
||||||
(Amounts in thousands)
|
|
March 29, 2014
|
|
March 30, 2013
|
||||
Balance, beginning of period
|
|
$
|
42,466
|
|
|
$
|
37,870
|
|
Warranty expense during period
|
|
1,970
|
|
|
2,519
|
|
||
Settlements made during period
|
|
(3,516
|
)
|
|
(2,681
|
)
|
||
Balance, end of period
|
|
$
|
40,920
|
|
|
$
|
37,708
|
|
(Amounts in thousands)
|
|
March 29, 2014
|
|
December 31, 2013
|
||||
Insurance
|
|
$
|
4,129
|
|
|
$
|
3,926
|
|
Employee compensation and benefits
|
|
9,851
|
|
|
8,916
|
|
||
Sales and marketing
|
|
24,626
|
|
|
34,215
|
|
||
Product warranty
|
|
10,536
|
|
|
10,861
|
|
||
Accrued freight
|
|
1,589
|
|
|
1,350
|
|
||
Accrued interest
|
|
8,234
|
|
|
25,477
|
|
||
Accrued environmental liability
|
|
458
|
|
|
463
|
|
||
Accrued pension
|
|
2,258
|
|
|
2,258
|
|
||
Accrued sales returns and discounts
|
|
3,037
|
|
|
3,263
|
|
||
Accrued taxes
|
|
3,388
|
|
|
3,433
|
|
||
Litigation accrual
|
|
3,000
|
|
|
—
|
|
||
Other
|
|
19,475
|
|
|
18,778
|
|
||
|
|
$
|
90,581
|
|
|
$
|
112,940
|
|
(Amounts in thousands)
|
|
March 29, 2014
|
|
December 31, 2013
|
||||
Insurance
|
|
$
|
2,398
|
|
|
$
|
2,213
|
|
Pension liabilities
|
|
6,271
|
|
|
6,622
|
|
||
Multi-employer pension withdrawal liability
|
|
2,385
|
|
|
2,362
|
|
||
Product warranty
|
|
30,384
|
|
|
31,605
|
|
||
Long-term product claim liability
|
|
140
|
|
|
140
|
|
||
Long-term environmental liability
|
|
1,247
|
|
|
1,247
|
|
||
Liabilities for tax uncertainties
|
|
3,051
|
|
|
2,934
|
|
||
Litigation accrual
|
|
2,000
|
|
|
—
|
|
||
Other
|
|
4,206
|
|
|
5,437
|
|
||
|
|
$
|
52,082
|
|
|
$
|
52,560
|
|
|
|
Stock Options
|
|
Weighted-
Average Exercise Price |
|
Weighted-
Average Remaining Contractual Term (Years) |
||||
Balance at January 1, 2014
|
|
3,285,750
|
|
|
$
|
11.04
|
|
|
5.24
|
|
Granted
|
|
151,147
|
|
|
15.11
|
|
|
—
|
|
|
Exercised
|
|
(587,047
|
)
|
|
1.76
|
|
|
—
|
|
|
Forfeited or expired
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Balance at March 29, 2014
|
|
2,849,850
|
|
|
$
|
13.17
|
|
|
6.19
|
|
|
|
For the three months ended
|
||||||
(Amounts in thousands)
|
|
March 29, 2014
|
|
March 30, 2013
|
||||
Net sales
|
|
|
|
|
||||
Siding, Fencing and Stone
|
|
$
|
137,055
|
|
|
$
|
137,725
|
|
Windows and Doors
|
|
132,410
|
|
|
119,372
|
|
||
|
|
$
|
269,465
|
|
|
$
|
257,097
|
|
Operating earnings (loss)
|
|
|
|
|
|
|
||
Siding, Fencing and Stone
|
|
$
|
6,868
|
|
|
$
|
17,114
|
|
Windows and Doors
|
|
(20,497
|
)
|
|
(12,096
|
)
|
||
Unallocated
|
|
(5,960
|
)
|
|
(5,590
|
)
|
||
|
|
$
|
(19,589
|
)
|
|
$
|
(572
|
)
|
|
|
|
|
|
||||
|
|
Total assets as of
|
||||||
|
|
March 29,
2014 |
|
December 31,
2013 |
||||
Total assets
|
|
|
|
|
|
|
||
Siding, Fencing and Stone
|
|
$
|
674,959
|
|
|
$
|
655,252
|
|
Windows and Doors
|
|
311,236
|
|
|
305,789
|
|
||
Unallocated
|
|
47,490
|
|
|
81,210
|
|
||
|
|
$
|
1,033,685
|
|
|
$
|
1,042,251
|
|
(Amounts in thousands)
|
|
Accrued as of
|
|
Adjustments
|
|
Expensed
|
|
Cash payments
|
|
Accrued as of
|
||||||||||
|
|
December 31, 2013
|
|
during 2014
|
|
during 2014
|
|
during 2014
|
|
March 29, 2014
|
||||||||||
Western Canada
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Severance costs
|
|
$
|
603
|
|
|
$
|
(83
|
)
|
|
$
|
40
|
|
|
$
|
(318
|
)
|
|
$
|
242
|
|
Contract terminations
|
|
157
|
|
|
(23
|
)
|
|
—
|
|
|
—
|
|
|
134
|
|
|||||
Equipment removal and other
|
|
533
|
|
|
(72
|
)
|
|
1,219
|
|
|
(1,590
|
)
|
|
90
|
|
|||||
|
|
$
|
1,293
|
|
|
$
|
(178
|
)
|
|
$
|
1,259
|
|
|
$
|
(1,908
|
)
|
|
$
|
466
|
|
|
|
For the three months ended
|
||||||
(Amounts in thousands)
|
|
March 29, 2014
|
|
March 30, 2013
|
||||
Siding, Fencing and Stone
|
|
$
|
—
|
|
|
$
|
—
|
|
Windows and Doors
|
|
1,259
|
|
|
—
|
|
||
|
|
$
|
1,259
|
|
|
$
|
—
|
|
PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
|
||||||||||||||||||||||||
For the three months ended March 29, 2014
|
||||||||||||||||||||||||
|
|
Guarantor
|
|
Issuer
|
|
|
|
Non-
|
|
|
|
|
||||||||||||
|
|
Ply Gem
|
|
Ply Gem
|
|
Guarantor
|
|
Guarantor
|
|
Consolidating
|
|
|
||||||||||||
(Amounts in thousands)
|
|
Holdings, Inc.
|
|
Industries, Inc.
|
|
Subsidiaries
|
|
Subsidiaries
|
|
Adjustments
|
|
Consolidated
|
||||||||||||
Net sales
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
222,068
|
|
|
$
|
47,397
|
|
|
$
|
—
|
|
|
$
|
269,465
|
|
Cost of products sold
|
|
—
|
|
|
—
|
|
|
191,320
|
|
|
38,332
|
|
|
—
|
|
|
229,652
|
|
||||||
Gross profit
|
|
—
|
|
|
—
|
|
|
30,748
|
|
|
9,065
|
|
|
—
|
|
|
39,813
|
|
||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Selling, general and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
administrative expenses
|
|
—
|
|
|
5,960
|
|
|
32,763
|
|
|
15,357
|
|
|
—
|
|
|
54,080
|
|
||||||
Intercompany administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
charges
|
|
—
|
|
|
—
|
|
|
4,189
|
|
|
1,831
|
|
|
(6,020
|
)
|
|
—
|
|
||||||
Amortization of intangible assets
|
|
—
|
|
|
—
|
|
|
4,041
|
|
|
1,281
|
|
|
—
|
|
|
5,322
|
|
||||||
Total operating expenses
|
|
—
|
|
|
5,960
|
|
|
40,993
|
|
|
18,469
|
|
|
(6,020
|
)
|
|
59,402
|
|
||||||
Operating loss
|
|
—
|
|
|
(5,960
|
)
|
|
(10,245
|
)
|
|
(9,404
|
)
|
|
6,020
|
|
|
(19,589
|
)
|
||||||
Foreign currency loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(228
|
)
|
|
—
|
|
|
(228
|
)
|
||||||
Intercompany interest
|
|
—
|
|
|
18,676
|
|
|
(17,571
|
)
|
|
(1,105
|
)
|
|
—
|
|
|
—
|
|
||||||
Interest expense
|
|
—
|
|
|
(18,506
|
)
|
|
(11
|
)
|
|
(1
|
)
|
|
—
|
|
|
(18,518
|
)
|
||||||
Interest income
|
|
—
|
|
|
1
|
|
|
8
|
|
|
15
|
|
|
—
|
|
|
24
|
|
||||||
Tax receivable agreement liability adjustment
|
|
—
|
|
|
(4,373
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,373
|
)
|
||||||
Loss on modification or
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
extinguishment of debt
|
|
—
|
|
|
(21,364
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(21,364
|
)
|
||||||
Intercompany administrative income
|
|
—
|
|
|
6,020
|
|
|
—
|
|
|
—
|
|
|
(6,020
|
)
|
|
—
|
|
||||||
Loss before equity in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
subsidiaries' loss
|
|
—
|
|
|
(25,506
|
)
|
|
(27,819
|
)
|
|
(10,723
|
)
|
|
—
|
|
|
(64,048
|
)
|
||||||
Equity in subsidiaries' loss
|
|
(51,578
|
)
|
|
(26,072
|
)
|
|
—
|
|
|
—
|
|
|
77,650
|
|
|
—
|
|
||||||
Loss before benefit for income taxes
|
|
(51,578
|
)
|
|
(51,578
|
)
|
|
(27,819
|
)
|
|
(10,723
|
)
|
|
77,650
|
|
|
(64,048
|
)
|
||||||
Benefit for income taxes
|
|
—
|
|
|
—
|
|
|
(8,629
|
)
|
|
(3,841
|
)
|
|
—
|
|
|
(12,470
|
)
|
||||||
Net loss
|
|
$
|
(51,578
|
)
|
|
$
|
(51,578
|
)
|
|
$
|
(19,190
|
)
|
|
$
|
(6,882
|
)
|
|
$
|
77,650
|
|
|
$
|
(51,578
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign currency translation adjustments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,660
|
)
|
|
—
|
|
|
(4,660
|
)
|
||||||
Unrealized loss on derivative instrument
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(357
|
)
|
|
—
|
|
|
(357
|
)
|
||||||
Total comprehensive loss
|
|
$
|
(51,578
|
)
|
|
$
|
(51,578
|
)
|
|
$
|
(19,190
|
)
|
|
$
|
(11,899
|
)
|
|
$
|
77,650
|
|
|
$
|
(56,595
|
)
|
PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
|
||||||||||||||||||||||||
For the three months ended March 30, 2013
|
||||||||||||||||||||||||
|
|
Guarantor
|
|
Issuer
|
|
|
|
Non-
|
|
|
|
|
||||||||||||
|
|
Ply Gem
|
|
Ply Gem
|
|
Guarantor
|
|
Guarantor
|
|
Consolidating
|
|
|
||||||||||||
(Amounts in thousands)
|
|
Holdings, Inc.
|
|
Industries, Inc.
|
|
Subsidiaries
|
|
Subsidiary
|
|
Adjustments
|
|
Consolidated
|
||||||||||||
Net sales
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
242,683
|
|
|
$
|
14,414
|
|
|
$
|
—
|
|
|
$
|
257,097
|
|
Cost of products sold
|
|
—
|
|
|
—
|
|
|
203,890
|
|
|
11,361
|
|
|
—
|
|
|
215,251
|
|
||||||
Gross profit
|
|
—
|
|
|
—
|
|
|
38,793
|
|
|
3,053
|
|
|
—
|
|
|
41,846
|
|
||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Selling, general and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
administrative expenses
|
|
—
|
|
|
5,590
|
|
|
28,727
|
|
|
3,899
|
|
|
—
|
|
|
38,216
|
|
||||||
Intercompany administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
charges
|
|
—
|
|
|
—
|
|
|
5,969
|
|
|
2,069
|
|
|
(8,038
|
)
|
|
—
|
|
||||||
Amortization of intangible assets
|
|
—
|
|
|
—
|
|
|
4,202
|
|
|
—
|
|
|
—
|
|
|
4,202
|
|
||||||
Total operating expenses
|
|
—
|
|
|
5,590
|
|
|
38,898
|
|
|
5,968
|
|
|
(8,038
|
)
|
|
42,418
|
|
||||||
Operating loss
|
|
—
|
|
|
(5,590
|
)
|
|
(105
|
)
|
|
(2,915
|
)
|
|
8,038
|
|
|
(572
|
)
|
||||||
Foreign currency loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(33
|
)
|
|
—
|
|
|
(33
|
)
|
||||||
Intercompany interest
|
|
—
|
|
|
21,075
|
|
|
(21,075
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Interest expense
|
|
—
|
|
|
(23,657
|
)
|
|
(11
|
)
|
|
—
|
|
|
—
|
|
|
(23,668
|
)
|
||||||
Interest income
|
|
—
|
|
|
1
|
|
|
3
|
|
|
11
|
|
|
—
|
|
|
15
|
|
||||||
Intercompany administrative income
|
|
—
|
|
|
8,038
|
|
|
—
|
|
|
—
|
|
|
(8,038
|
)
|
|
—
|
|
||||||
Loss before equity in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
subsidiaries' loss
|
|
—
|
|
|
(133
|
)
|
|
(21,188
|
)
|
|
(2,937
|
)
|
|
—
|
|
|
(24,258
|
)
|
||||||
Equity in subsidiaries' loss
|
|
(28,107
|
)
|
|
(27,974
|
)
|
|
—
|
|
|
—
|
|
|
56,081
|
|
|
—
|
|
||||||
Loss before provision
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(benefit) for income taxes
|
|
(28,107
|
)
|
|
(28,107
|
)
|
|
(21,188
|
)
|
|
(2,937
|
)
|
|
56,081
|
|
|
(24,258
|
)
|
||||||
Provision (benefit) for income taxes
|
|
—
|
|
|
—
|
|
|
4,644
|
|
|
(795
|
)
|
|
—
|
|
|
3,849
|
|
||||||
Net loss
|
|
$
|
(28,107
|
)
|
|
$
|
(28,107
|
)
|
|
$
|
(25,832
|
)
|
|
$
|
(2,142
|
)
|
|
$
|
56,081
|
|
|
$
|
(28,107
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign currency translation adjustments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(768
|
)
|
|
—
|
|
|
(768
|
)
|
||||||
Total comprehensive loss
|
|
$
|
(28,107
|
)
|
|
$
|
(28,107
|
)
|
|
$
|
(25,832
|
)
|
|
$
|
(2,910
|
)
|
|
$
|
56,081
|
|
|
$
|
(28,875
|
)
|
PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET
|
||||||||||||||||||||||||
As of March 29, 2014
|
||||||||||||||||||||||||
(Amounts in thousands)
|
|
Guarantor
|
|
Issuer
|
|
|
|
Non-
|
|
|
|
|
||||||||||||
|
|
Ply Gem
|
|
Ply Gem
|
|
Guarantor
|
|
Guarantor
|
|
Consolidating
|
|
|
||||||||||||
ASSETS
|
|
Holdings, Inc.
|
|
Industries, Inc.
|
|
Subsidiaries
|
|
Subsidiaries
|
|
Adjustments
|
|
Consolidated
|
||||||||||||
Current Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
|
$
|
—
|
|
|
$
|
17,719
|
|
|
$
|
(7,345
|
)
|
|
$
|
5,121
|
|
|
$
|
—
|
|
|
$
|
15,495
|
|
Accounts receivable, net
|
|
—
|
|
|
—
|
|
|
131,685
|
|
|
31,894
|
|
|
—
|
|
|
163,579
|
|
||||||
Inventories:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Raw materials
|
|
—
|
|
|
—
|
|
|
42,883
|
|
|
12,398
|
|
|
—
|
|
|
55,281
|
|
||||||
Work in process
|
|
—
|
|
|
—
|
|
|
24,231
|
|
|
1,188
|
|
|
—
|
|
|
25,419
|
|
||||||
Finished goods
|
|
—
|
|
|
—
|
|
|
52,910
|
|
|
19,442
|
|
|
—
|
|
|
72,352
|
|
||||||
Total inventory
|
|
—
|
|
|
—
|
|
|
120,024
|
|
|
33,028
|
|
|
—
|
|
|
153,052
|
|
||||||
Prepaid expenses and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
current assets
|
|
—
|
|
|
597
|
|
|
17,180
|
|
|
9,698
|
|
|
—
|
|
|
27,475
|
|
||||||
Deferred income taxes
|
|
—
|
|
|
—
|
|
|
7,081
|
|
|
510
|
|
|
—
|
|
|
7,591
|
|
||||||
Total current assets
|
|
—
|
|
|
18,316
|
|
|
268,625
|
|
|
80,251
|
|
|
—
|
|
|
367,192
|
|
||||||
Investments in subsidiaries
|
|
(107,171
|
)
|
|
(174,322
|
)
|
|
—
|
|
|
—
|
|
|
281,493
|
|
|
—
|
|
||||||
Property and Equipment, at cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Land
|
|
—
|
|
|
—
|
|
|
3,565
|
|
|
925
|
|
|
—
|
|
|
4,490
|
|
||||||
Buildings and improvements
|
|
—
|
|
|
—
|
|
|
38,281
|
|
|
5,105
|
|
|
—
|
|
|
43,386
|
|
||||||
Machinery and equipment
|
|
—
|
|
|
3,787
|
|
|
304,321
|
|
|
16,448
|
|
|
—
|
|
|
324,556
|
|
||||||
|
|
—
|
|
|
3,787
|
|
|
346,167
|
|
|
22,478
|
|
|
—
|
|
|
372,432
|
|
||||||
Less accumulated depreciation
|
|
—
|
|
|
(1,522
|
)
|
|
(254,311
|
)
|
|
(6,366
|
)
|
|
—
|
|
|
(262,199
|
)
|
||||||
Total property and equipment, net
|
|
—
|
|
|
2,265
|
|
|
91,856
|
|
|
16,112
|
|
|
—
|
|
|
110,233
|
|
||||||
Other Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Intangible assets, net
|
|
—
|
|
|
—
|
|
|
73,983
|
|
|
29,563
|
|
|
—
|
|
|
103,546
|
|
||||||
Goodwill
|
|
—
|
|
|
—
|
|
|
383,042
|
|
|
35,445
|
|
|
—
|
|
|
418,487
|
|
||||||
Deferred income taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,027
|
|
|
—
|
|
|
5,027
|
|
||||||
Intercompany note receivable
|
|
—
|
|
|
949,305
|
|
|
—
|
|
|
—
|
|
|
(949,305
|
)
|
|
—
|
|
||||||
Other
|
|
—
|
|
|
26,909
|
|
|
2,291
|
|
|
—
|
|
|
—
|
|
|
29,200
|
|
||||||
Total other assets
|
|
—
|
|
|
976,214
|
|
|
459,316
|
|
|
70,035
|
|
|
(949,305
|
)
|
|
556,260
|
|
||||||
|
|
$
|
(107,171
|
)
|
|
$
|
822,473
|
|
|
$
|
819,797
|
|
|
$
|
166,398
|
|
|
$
|
(667,812
|
)
|
|
$
|
1,033,685
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
|
||||||||||||||||||||||||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Accounts payable
|
|
$
|
—
|
|
|
$
|
584
|
|
|
$
|
58,191
|
|
|
$
|
18,456
|
|
|
$
|
—
|
|
|
$
|
77,231
|
|
Accrued expenses
|
|
—
|
|
|
14,214
|
|
|
57,146
|
|
|
19,221
|
|
|
—
|
|
|
90,581
|
|
||||||
Total current liabilities
|
|
—
|
|
|
14,798
|
|
|
115,337
|
|
|
37,677
|
|
|
—
|
|
|
167,812
|
|
||||||
Deferred income taxes
|
|
—
|
|
|
—
|
|
|
8,774
|
|
|
7,799
|
|
|
—
|
|
|
16,573
|
|
||||||
Intercompany note payable
|
|
—
|
|
|
—
|
|
|
850,295
|
|
|
99,010
|
|
|
(949,305
|
)
|
|
—
|
|
||||||
Payable to related parties pursuant to
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
tax receivable agreement
|
|
—
|
|
|
15,996
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,996
|
|
||||||
Other long-term liabilities
|
|
—
|
|
|
10,457
|
|
|
37,404
|
|
|
4,221
|
|
|
—
|
|
|
52,082
|
|
||||||
Long-term debt
|
|
—
|
|
|
888,393
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
888,393
|
|
||||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Stockholders' Equity (Deficit):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Preferred stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Common stock
|
|
678
|
|
|
678
|
|
|
—
|
|
|
—
|
|
|
(678
|
)
|
|
678
|
|
||||||
Additional paid-in-capital
|
|
743,209
|
|
|
743,209
|
|
|
506,386
|
|
|
13,066
|
|
|
(1,262,661
|
)
|
|
743,209
|
|
||||||
(Accumulated deficit) retained earnings
|
|
(842,821
|
)
|
|
(842,821
|
)
|
|
(698,399
|
)
|
|
9,285
|
|
|
1,531,935
|
|
|
(842,821
|
)
|
||||||
Accumulated other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
comprehensive loss
|
|
(8,237
|
)
|
|
(8,237
|
)
|
|
—
|
|
|
(4,660
|
)
|
|
12,897
|
|
|
(8,237
|
)
|
||||||
Total stockholders' (deficit) equity
|
|
(107,171
|
)
|
|
(107,171
|
)
|
|
(192,013
|
)
|
|
17,691
|
|
|
281,493
|
|
|
(107,171
|
)
|
||||||
|
|
$
|
(107,171
|
)
|
|
$
|
822,473
|
|
|
$
|
819,797
|
|
|
$
|
166,398
|
|
|
$
|
(667,812
|
)
|
|
$
|
1,033,685
|
|
PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET
|
||||||||||||||||||||||||
As of December 31, 2013
|
||||||||||||||||||||||||
|
|
Guarantor
|
|
Issuer
|
|
|
|
Non-
|
|
|
|
|
||||||||||||
|
|
Ply Gem
|
|
Ply Gem
|
|
Guarantor
|
|
Guarantor
|
|
Consolidating
|
|
|
||||||||||||
(Amounts in thousands)
|
|
Holdings, Inc.
|
|
Industries, Inc.
|
|
Subsidiaries
|
|
Subsidiary
|
|
Adjustments
|
|
Consolidated
|
||||||||||||
ASSETS
|
|
|
||||||||||||||||||||||
Current Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
|
$
|
—
|
|
|
$
|
57,800
|
|
|
$
|
(4,970
|
)
|
|
$
|
16,971
|
|
|
$
|
—
|
|
|
$
|
69,801
|
|
Accounts receivable, net
|
|
—
|
|
|
—
|
|
|
110,475
|
|
|
29,587
|
|
|
—
|
|
|
140,062
|
|
||||||
Inventories:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Raw materials
|
|
—
|
|
|
—
|
|
|
41,593
|
|
|
9,720
|
|
|
—
|
|
|
51,313
|
|
||||||
Work in process
|
|
—
|
|
|
—
|
|
|
22,781
|
|
|
1,036
|
|
|
—
|
|
|
23,817
|
|
||||||
Finished goods
|
|
—
|
|
|
—
|
|
|
42,751
|
|
|
17,589
|
|
|
—
|
|
|
60,340
|
|
||||||
Total inventory
|
|
—
|
|
|
—
|
|
|
107,125
|
|
|
28,345
|
|
|
—
|
|
|
135,470
|
|
||||||
Prepaid expenses and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
current assets
|
|
—
|
|
|
613
|
|
|
17,270
|
|
|
5,331
|
|
|
—
|
|
|
23,214
|
|
||||||
Deferred income taxes
|
|
—
|
|
|
—
|
|
|
2,825
|
|
|
353
|
|
|
—
|
|
|
3,178
|
|
||||||
Total current assets
|
|
—
|
|
|
58,413
|
|
|
232,725
|
|
|
80,587
|
|
|
—
|
|
|
371,725
|
|
||||||
Investments in subsidiaries
|
|
(51,996
|
)
|
|
(229,668
|
)
|
|
—
|
|
|
—
|
|
|
281,664
|
|
|
—
|
|
||||||
Property and Equipment, at cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Land
|
|
—
|
|
|
—
|
|
|
3,565
|
|
|
963
|
|
|
—
|
|
|
4,528
|
|
||||||
Buildings and improvements
|
|
—
|
|
|
—
|
|
|
38,059
|
|
|
5,632
|
|
|
—
|
|
|
43,691
|
|
||||||
Machinery and equipment
|
|
—
|
|
|
3,275
|
|
|
300,089
|
|
|
18,250
|
|
|
—
|
|
|
321,614
|
|
||||||
|
|
—
|
|
|
3,275
|
|
|
341,713
|
|
|
24,845
|
|
|
—
|
|
|
369,833
|
|
||||||
Less accumulated depreciation
|
|
—
|
|
|
(1,385
|
)
|
|
(249,344
|
)
|
|
(7,457
|
)
|
|
—
|
|
|
(258,186
|
)
|
||||||
Total property and equipment, net
|
|
—
|
|
|
1,890
|
|
|
92,369
|
|
|
17,388
|
|
|
—
|
|
|
111,647
|
|
||||||
Other Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Intangible assets, net
|
|
—
|
|
|
—
|
|
|
77,968
|
|
|
32,044
|
|
|
—
|
|
|
110,012
|
|
||||||
Goodwill
|
|
—
|
|
|
—
|
|
|
383,042
|
|
|
37,186
|
|
|
—
|
|
|
420,228
|
|
||||||
Deferred income taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,406
|
|
|
—
|
|
|
5,406
|
|
||||||
Intercompany note receivable
|
|
—
|
|
|
958,631
|
|
|
—
|
|
|
—
|
|
|
(958,631
|
)
|
|
—
|
|
||||||
Other
|
|
—
|
|
|
20,907
|
|
|
2,326
|
|
|
—
|
|
|
—
|
|
|
23,233
|
|
||||||
Total other assets
|
|
—
|
|
|
979,538
|
|
|
463,336
|
|
|
74,636
|
|
|
(958,631
|
)
|
|
558,879
|
|
||||||
|
|
$
|
(51,996
|
)
|
|
$
|
810,173
|
|
|
$
|
788,430
|
|
|
$
|
172,611
|
|
|
$
|
(676,967
|
)
|
|
$
|
1,042,251
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
|
||||||||||||||||||||||||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Accounts payable
|
|
$
|
—
|
|
|
$
|
601
|
|
|
$
|
66,847
|
|
|
$
|
15,533
|
|
|
$
|
—
|
|
|
$
|
82,981
|
|
Accrued expenses
|
|
—
|
|
|
31,056
|
|
|
62,120
|
|
|
19,764
|
|
|
—
|
|
|
112,940
|
|
||||||
Total current liabilities
|
|
—
|
|
|
31,657
|
|
|
128,967
|
|
|
35,297
|
|
|
—
|
|
|
195,921
|
|
||||||
Deferred income taxes
|
|
—
|
|
|
—
|
|
|
9,005
|
|
|
8,110
|
|
|
—
|
|
|
17,115
|
|
||||||
Intercompany note payable
|
|
—
|
|
|
—
|
|
|
859,768
|
|
|
98,863
|
|
|
(958,631
|
)
|
|
—
|
|
||||||
Payable to related parties pursuant to
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
tax receivable agreement
|
|
—
|
|
|
11,623
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,623
|
|
||||||
Other long-term liabilities
|
|
—
|
|
|
1,861
|
|
|
46,315
|
|
|
4,384
|
|
|
—
|
|
|
52,560
|
|
||||||
Long-term debt
|
|
—
|
|
|
817,028
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
817,028
|
|
||||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Stockholders' Equity (Deficit):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Preferred stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Common stock
|
|
672
|
|
|
672
|
|
|
—
|
|
|
—
|
|
|
(672
|
)
|
|
672
|
|
||||||
Additional paid-in-capital
|
|
741,789
|
|
|
741,789
|
|
|
423,584
|
|
|
12,727
|
|
|
(1,178,100
|
)
|
|
741,789
|
|
||||||
(Accumulated deficit) retained earnings
|
|
(791,243
|
)
|
|
(791,243
|
)
|
|
(679,209
|
)
|
|
16,167
|
|
|
1,454,285
|
|
|
(791,243
|
)
|
||||||
Accumulated other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
comprehensive income (loss)
|
|
(3,214
|
)
|
|
(3,214
|
)
|
|
—
|
|
|
(2,937
|
)
|
|
6,151
|
|
|
(3,214
|
)
|
||||||
Total stockholders' (deficit) equity
|
|
(51,996
|
)
|
|
(51,996
|
)
|
|
(255,625
|
)
|
|
25,957
|
|
|
281,664
|
|
|
(51,996
|
)
|
||||||
|
|
$
|
(51,996
|
)
|
|
$
|
810,173
|
|
|
$
|
788,430
|
|
|
$
|
172,611
|
|
|
$
|
(676,967
|
)
|
|
$
|
1,042,251
|
|
PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
|
||||||||||||||||||||||||
For the three months ended March 29, 2014
|
||||||||||||||||||||||||
(Amounts in thousands)
|
|
Guarantor
|
|
Issuer
|
|
|
|
Non-
|
|
|
|
|
||||||||||||
|
|
Ply Gem
|
|
Ply Gem
|
|
Guarantor
|
|
Guarantor
|
|
Consolidating
|
|
|
||||||||||||
|
|
Holdings, Inc.
|
|
Industries, Inc.
|
|
Subsidiaries
|
|
Subsidiaries
|
|
Adjustments
|
|
Consolidated
|
||||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net loss
|
|
$
|
(51,578
|
)
|
|
$
|
(51,578
|
)
|
|
$
|
(19,190
|
)
|
|
$
|
(6,882
|
)
|
|
$
|
77,650
|
|
|
$
|
(51,578
|
)
|
Adjustments to reconcile net loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
to cash used in operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Depreciation and amortization expense
|
|
—
|
|
|
137
|
|
|
8,851
|
|
|
2,296
|
|
|
—
|
|
|
11,284
|
|
||||||
Non-cash restructuring costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,259
|
|
|
—
|
|
|
1,259
|
|
||||||
Non-cash interest expense, net
|
|
—
|
|
|
4,172
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,172
|
|
||||||
Loss on foreign currency transactions
|
|
—
|
|
|
—
|
|
|
—
|
|
|
228
|
|
|
—
|
|
|
228
|
|
||||||
Non-cash litigation expense
|
|
—
|
|
|
—
|
|
|
5,000
|
|
|
—
|
|
|
—
|
|
|
5,000
|
|
||||||
Loss on modification or extinguishment of debt
|
|
—
|
|
|
21,364
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21,364
|
|
||||||
Stock based compensation
|
|
—
|
|
|
398
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
398
|
|
||||||
Deferred income taxes
|
|
—
|
|
|
—
|
|
|
(4,488
|
)
|
|
(379
|
)
|
|
—
|
|
|
(4,867
|
)
|
||||||
Tax receivable agreement liability adjustment
|
|
—
|
|
|
4,373
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,373
|
|
||||||
Increase in tax uncertainty,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
net of valuation allowance
|
|
—
|
|
|
—
|
|
|
117
|
|
|
—
|
|
|
—
|
|
|
117
|
|
||||||
Equity in subsidiaries' net loss
|
|
51,578
|
|
|
26,072
|
|
|
—
|
|
|
—
|
|
|
(77,650
|
)
|
|
—
|
|
||||||
Other
|
|
—
|
|
|
—
|
|
|
(19
|
)
|
|
(138
|
)
|
|
—
|
|
|
(157
|
)
|
||||||
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Accounts receivable, net
|
|
—
|
|
|
—
|
|
|
(21,210
|
)
|
|
(3,582
|
)
|
|
—
|
|
|
(24,792
|
)
|
||||||
Inventories
|
|
—
|
|
|
—
|
|
|
(12,899
|
)
|
|
(5,912
|
)
|
|
—
|
|
|
(18,811
|
)
|
||||||
Prepaid expenses and other assets
|
|
—
|
|
|
(87
|
)
|
|
(756
|
)
|
|
(4,674
|
)
|
|
—
|
|
|
(5,517
|
)
|
||||||
Accounts payable
|
|
—
|
|
|
(17
|
)
|
|
(8,774
|
)
|
|
2,358
|
|
|
—
|
|
|
(6,433
|
)
|
||||||
Accrued expenses
|
|
—
|
|
|
(14,061
|
)
|
|
(11,720
|
)
|
|
(1,283
|
)
|
|
—
|
|
|
(27,064
|
)
|
||||||
Cash payments on restructuring liabilities
|
|
—
|
|
|
—
|
|
|
(167
|
)
|
|
(1,908
|
)
|
|
—
|
|
|
(2,075
|
)
|
||||||
Other
|
|
—
|
|
|
(3
|
)
|
|
30
|
|
|
2,784
|
|
|
—
|
|
|
2,811
|
|
||||||
Net cash used in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
operating activities
|
|
—
|
|
|
(9,230
|
)
|
|
(65,225
|
)
|
|
(15,833
|
)
|
|
—
|
|
|
(90,288
|
)
|
||||||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Capital expenditures
|
|
—
|
|
|
(512
|
)
|
|
(4,525
|
)
|
|
(640
|
)
|
|
—
|
|
|
(5,677
|
)
|
||||||
Proceeds from sale of assets
|
|
—
|
|
|
—
|
|
|
24
|
|
|
593
|
|
|
—
|
|
|
617
|
|
||||||
Net cash used in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
investing activities
|
|
—
|
|
|
(512
|
)
|
|
(4,501
|
)
|
|
(47
|
)
|
|
—
|
|
|
(5,060
|
)
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Proceeds from long-term debt
|
|
—
|
|
|
927,850
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
927,850
|
|
||||||
Net revolver borrowings (payments)
|
|
—
|
|
|
40,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
40,000
|
|
||||||
Payments on long-term debt
|
|
—
|
|
|
(852,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(852,000
|
)
|
||||||
Payment of tender and early call premiums
|
|
—
|
|
|
(61,142
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(61,142
|
)
|
||||||
Proceeds from exercises of employee stock options
|
|
—
|
|
|
1,026
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,026
|
|
||||||
Proceeds from intercompany
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
investment
|
|
—
|
|
|
(71,752
|
)
|
|
67,351
|
|
|
4,401
|
|
|
—
|
|
|
—
|
|
||||||
Debt issuance costs paid
|
|
—
|
|
|
(14,321
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14,321
|
)
|
||||||
Net cash provided by (used in)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
financing activities
|
|
—
|
|
|
(30,339
|
)
|
|
67,351
|
|
|
4,401
|
|
|
—
|
|
|
41,413
|
|
||||||
Impact of exchange rate movements on cash
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(371
|
)
|
|
—
|
|
|
(371
|
)
|
||||||
Net decrease in cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
and cash equivalents
|
|
—
|
|
|
(40,081
|
)
|
|
(2,375
|
)
|
|
(11,850
|
)
|
|
—
|
|
|
(54,306
|
)
|
||||||
Cash and cash equivalents at the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
beginning of the period
|
|
—
|
|
|
57,800
|
|
|
(4,970
|
)
|
|
16,971
|
|
|
—
|
|
|
69,801
|
|
||||||
Cash and cash equivalents at the end
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
of the period
|
|
$
|
—
|
|
|
$
|
17,719
|
|
|
$
|
(7,345
|
)
|
|
$
|
5,121
|
|
|
$
|
—
|
|
|
$
|
15,495
|
|
PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
|
||||||||||||||||||||||||
For the three months ended March 30, 2013
|
||||||||||||||||||||||||
(Amounts in thousands)
|
|
Guarantor
|
|
Issuer
|
|
|
|
Non-
|
|
|
|
|
||||||||||||
|
|
Ply Gem
|
|
Ply Gem
|
|
Guarantor
|
|
Guarantor
|
|
Consolidating
|
|
|
||||||||||||
|
|
Holdings, Inc.
|
|
Industries, Inc.
|
|
Subsidiaries
|
|
Subsidiary
|
|
Adjustments
|
|
Consolidated
|
||||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net loss
|
|
$
|
(28,107
|
)
|
|
$
|
(28,107
|
)
|
|
$
|
(25,832
|
)
|
|
$
|
(2,142
|
)
|
|
$
|
56,081
|
|
|
$
|
(28,107
|
)
|
Adjustments to reconcile net loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
to cash used in operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Depreciation and amortization expense
|
|
—
|
|
|
63
|
|
|
9,283
|
|
|
369
|
|
|
—
|
|
|
9,715
|
|
||||||
Non-cash interest expense, net
|
|
—
|
|
|
2,833
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,833
|
|
||||||
Loss on foreign currency transactions
|
|
—
|
|
|
—
|
|
|
—
|
|
|
33
|
|
|
—
|
|
|
33
|
|
||||||
Stock based compensation
|
|
—
|
|
|
456
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
456
|
|
||||||
Deferred income taxes
|
|
—
|
|
|
—
|
|
|
2,948
|
|
|
100
|
|
|
—
|
|
|
3,048
|
|
||||||
Reduction in tax uncertainty,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
net of valuation allowance
|
|
—
|
|
|
—
|
|
|
(206
|
)
|
|
—
|
|
|
—
|
|
|
(206
|
)
|
||||||
Equity in subsidiaries' net loss
|
|
28,107
|
|
|
27,974
|
|
|
—
|
|
|
—
|
|
|
(56,081
|
)
|
|
—
|
|
||||||
Other
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
||||||
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Accounts receivable, net
|
|
—
|
|
|
—
|
|
|
(20,146
|
)
|
|
(1,183
|
)
|
|
—
|
|
|
(21,329
|
)
|
||||||
Inventories
|
|
—
|
|
|
—
|
|
|
(22,625
|
)
|
|
396
|
|
|
—
|
|
|
(22,229
|
)
|
||||||
Prepaid expenses and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
current assets
|
|
—
|
|
|
(743
|
)
|
|
1,117
|
|
|
(885
|
)
|
|
—
|
|
|
(511
|
)
|
||||||
Accounts payable
|
|
—
|
|
|
90
|
|
|
11,845
|
|
|
(238
|
)
|
|
—
|
|
|
11,697
|
|
||||||
Accrued expenses
|
|
—
|
|
|
(16,253
|
)
|
|
2,728
|
|
|
290
|
|
|
—
|
|
|
(13,235
|
)
|
||||||
Cash payments on restructuring liabilities
|
|
—
|
|
|
—
|
|
|
(539
|
)
|
|
—
|
|
|
—
|
|
|
(539
|
)
|
||||||
Other
|
|
—
|
|
|
—
|
|
|
(34
|
)
|
|
(998
|
)
|
|
—
|
|
|
(1,032
|
)
|
||||||
Net cash used in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
operating activities
|
|
—
|
|
|
(13,687
|
)
|
|
(41,469
|
)
|
|
(4,258
|
)
|
|
—
|
|
|
(59,414
|
)
|
||||||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Capital expenditures
|
|
—
|
|
|
(352
|
)
|
|
(6,210
|
)
|
|
(103
|
)
|
|
—
|
|
|
(6,665
|
)
|
||||||
Proceeds from sale of assets
|
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
11
|
|
||||||
Net cash used in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
investing activities
|
|
—
|
|
|
(352
|
)
|
|
(6,199
|
)
|
|
(103
|
)
|
|
—
|
|
|
(6,654
|
)
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net revolver payments
|
|
—
|
|
|
50,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
50,000
|
|
||||||
Proceeds from intercompany
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
investment
|
|
—
|
|
|
(45,790
|
)
|
|
45,790
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Debt issuance costs paid
|
|
—
|
|
|
(62
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(62
|
)
|
||||||
Net cash provided by
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
financing activities
|
|
—
|
|
|
4,148
|
|
|
45,790
|
|
|
—
|
|
|
—
|
|
|
49,938
|
|
||||||
Impact of exchange rate movement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
on cash
|
|
—
|
|
|
—
|
|
|
—
|
|
|
98
|
|
|
—
|
|
|
98
|
|
||||||
Net decrease in cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
and cash equivalents
|
|
—
|
|
|
(9,891
|
)
|
|
(1,878
|
)
|
|
(4,263
|
)
|
|
—
|
|
|
(16,032
|
)
|
||||||
Cash and cash equivalents at the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
beginning of the period
|
|
—
|
|
|
23,332
|
|
|
(4,307
|
)
|
|
8,169
|
|
|
—
|
|
|
27,194
|
|
||||||
Cash and cash equivalents at the end
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
of the period
|
|
$
|
—
|
|
|
$
|
13,441
|
|
|
$
|
(6,185
|
)
|
|
$
|
3,906
|
|
|
$
|
—
|
|
|
$
|
11,162
|
|
|
|
For the three months ended
|
|
||||||
(Amounts in thousands)
|
|
March 29, 2014
|
|
March 30, 2013
|
|
||||
|
|
(unaudited)
|
|
(unaudited)
|
|
||||
Net sales
|
|
|
|
|
|
||||
Siding, Fencing and Stone
|
|
$
|
137,055
|
|
|
$
|
137,725
|
|
|
Windows and Doors
|
|
132,410
|
|
|
119,372
|
|
|
||
Operating earnings (loss)
|
|
|
|
|
|
|
|
||
Siding, Fencing and Stone
|
|
6,868
|
|
|
17,114
|
|
|
||
Windows and Doors
|
|
(20,497
|
)
|
|
(12,096
|
)
|
|
||
Unallocated
|
|
(5,960
|
)
|
|
(5,590
|
)
|
|
||
Foreign currency loss
|
|
|
|
|
|
|
|
||
Windows and Doors
|
|
(85
|
)
|
|
(33
|
)
|
|
||
Siding, Fencing and Stone
|
|
(143
|
)
|
|
—
|
|
|
||
Interest income (expense), net
|
|
|
|
|
|
|
|
||
Siding, Fencing and Stone
|
|
(4
|
)
|
|
(8
|
)
|
|
||
Windows and Doors
|
|
15
|
|
|
11
|
|
|
||
Unallocated
|
|
(18,505
|
)
|
|
(23,656
|
)
|
|
||
Income tax benefit (provision)
|
|
|
|
|
|
|
|
||
Unallocated
|
|
12,470
|
|
|
(3,849
|
)
|
|
||
Tax Receivable Agreement liability adjustment
|
|
|
|
|
|
||||
Unallocated
|
|
(4,373
|
)
|
|
—
|
|
|
||
Loss on modification or
|
|
|
|
|
|
|
|
||
extinguishment of debt
|
|
|
|
|
|
|
|
||
Unallocated
|
|
(21,364
|
)
|
|
—
|
|
|
||
|
|
|
|
|
|
||||
Net loss
|
|
$
|
(51,578
|
)
|
|
$
|
(28,107
|
)
|
|
|
|
For the three months ended
|
||||||||||||
(Amounts in thousands)
|
|
March 29, 2014
|
|
March 30, 2013
|
||||||||||
|
|
(unaudited)
|
|
(unaudited)
|
||||||||||
Statement of operations data:
|
|
|
|
|
|
|
|
|
||||||
Net sales
|
|
$
|
137,055
|
|
|
100.0
|
%
|
|
$
|
137,725
|
|
|
100.0
|
%
|
Gross profit
|
|
30,068
|
|
|
21.9
|
%
|
|
33,945
|
|
|
24.6
|
%
|
||
SG&A expense
|
|
19,850
|
|
|
14.5
|
%
|
|
14,682
|
|
|
10.7
|
%
|
||
Amortization of intangible assets
|
|
3,350
|
|
|
2.4
|
%
|
|
2,149
|
|
|
1.6
|
%
|
||
Operating earnings
|
|
6,868
|
|
|
5.0
|
%
|
|
17,114
|
|
|
12.4
|
%
|
||
Currency transaction loss
|
|
(143
|
)
|
|
(0.1
|
)%
|
|
—
|
|
|
—
|
%
|
|
|
For the three months ended
|
||||||||||||
(Amounts in thousands)
|
|
March 29, 2014
|
|
March 30, 2013
|
||||||||||
|
|
(unaudited)
|
|
(unaudited)
|
||||||||||
Statement of operations data:
|
|
|
|
|
|
|
|
|
||||||
Net sales
|
|
$
|
132,410
|
|
|
100.0
|
%
|
|
$
|
119,372
|
|
|
100.0
|
%
|
Gross profit
|
|
9,745
|
|
|
7.4
|
%
|
|
7,901
|
|
|
6.6
|
%
|
||
SG&A expense
|
|
28,270
|
|
|
21.4
|
%
|
|
17,944
|
|
|
15.0
|
%
|
||
Amortization of intangible assets
|
|
1,972
|
|
|
1.5
|
%
|
|
2,053
|
|
|
1.7
|
%
|
||
Operating loss
|
|
(20,497
|
)
|
|
(15.5
|
)%
|
|
(12,096
|
)
|
|
(10.1
|
)%
|
||
Currency transaction loss
|
|
(85
|
)
|
|
(0.1
|
)%
|
|
(33
|
)
|
|
—
|
%
|
|
|
For the three months ended
|
||||||
(Amounts in thousands)
|
|
March 29, 2014
|
|
March 30, 2013
|
||||
|
|
(unaudited)
|
|
(unaudited)
|
||||
Statement of operations data:
|
|
|
|
|
||||
SG&A expense
|
|
$
|
(5,960
|
)
|
|
$
|
(5,590
|
)
|
Operating loss
|
|
(5,960
|
)
|
|
(5,590
|
)
|
||
Interest expense
|
|
(18,506
|
)
|
|
(23,657
|
)
|
||
Interest income
|
|
1
|
|
|
1
|
|
||
Tax receivable agreement liability adjustment
|
|
(4,373
|
)
|
|
—
|
|
||
Loss on modification or extinguishment of debt
|
|
(21,364
|
)
|
|
—
|
|
||
Income tax benefit (provision) for income taxes
|
|
$
|
12,470
|
|
|
$
|
(3,849
|
)
|
(Amounts in thousands)
|
|
For the three months ended
|
||||||
|
|
March 29, 2014
|
|
March 30, 2013
|
||||
Loss on extinguishment of debt:
|
|
|
|
|
|
|
||
Tender premium
|
|
$
|
8,493
|
|
|
$
|
—
|
|
8.25% Senior Secured Notes and 9.375% Senior Notes unamortized discount
|
|
4,773
|
|
|
—
|
|
||
8.25% Senior Secured Notes and 9.375% Senior Notes unamortized debt issuance costs
|
|
2,067
|
|
|
—
|
|
||
Term Loan Facility unamortized discount
|
|
255
|
|
|
—
|
|
||
|
|
15,588
|
|
|
—
|
|
||
Loss on modification of debt:
|
|
|
|
|
||||
Third party fees for 8.25% Senior Secured Notes and 9.375% Senior Notes
|
|
302
|
|
|
—
|
|
||
Third party fees for 6.50% Senior Notes and Term Loan Facility
|
|
5,474
|
|
|
—
|
|
||
|
|
5,776
|
|
|
—
|
|
||
|
|
|
|
|
||||
Total loss on modification or extinguishment of debt
|
|
$
|
21,364
|
|
|
$
|
—
|
|
•
|
our high degree of leverage and significant debt service obligations;
|
•
|
restrictions under the indenture governing the 6.50% Senior Notes and the restrictions under our Term Loan Facility and ABL Facility;
|
•
|
the competitive nature of our industry;
|
•
|
changes in interest rates, and general economic, home repair and remodeling and new home construction market conditions;
|
•
|
changes in the price and availability of raw materials; and
|
•
|
changes in our relationships with our significant customers.
|
By:
|
/s/ Gary E. Robinette
|
|
Gary E. Robinette
|
|
President, Chief Executive Officer, and
Vice Chairman of the Board |
By:
|
/s/ Shawn K. Poe
|
|
Shawn K. Poe
|
|
Vice President, Chief Financial Officer, Treasurer and Secretary
|
PLY GEM INDUSTRIES, INC.
|
|
by
|
|
|
|
|
Name:
|
|
Title:
|
PLY GEM CANADA, INC.
|
|
by
|
|
|
|
|
Name:
|
|
Title:
|
GIENOW CANADA INC.
|
|
by
|
|
|
|
|
Name:
|
|
Title:
|
MITTEN INC.
|
|
by
|
|
|
|
|
Name:
|
|
Title:
|
UBS AG, STAMFORD BRANCH, as U.S. Adminstrative Agent
|
|
by
|
|
|
|
|
Name:
|
|
Title:
|
|
|
by
|
|
|
|
|
Name:
|
|
Title:
|
UBS AG CANADA BRANCH, as Canadian Adminstrative Agent
|
|
by
|
|
|
|
|
Name:
|
|
Title:
|
|
|
by
|
|
|
|
|
Name:
|
|
Title:
|
|
/s/ Gary E. Robinette
|
Name:
|
Gary E. Robinette
|
Title:
|
President, Chief Executive Officer, and
Vice Chairman of the Board |
|
/s/ Shawn K. Poe
|
Name:
|
Shawn K. Poe
|
Title:
|
Vice President, Chief Financial Officer, Treasurer and Secretary
|
Date: May 12, 2014
|
/s/ Gary E. Robinette
|
|
Gary E. Robinette
|
|
President, Chief Executive Officer, and
Vice Chairman of the Board |
Date: May 12, 2014
|
/s/ Shawn K. Poe
|
|
Shawn K. Poe
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Vice President, Chief Financial Officer, Treasurer and Secretary
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