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 |
|
|
|
||
|
||
|
|
|
|
|
|
|
Three months ended September 30, 2017 and October 1, 2016
|
|
|
|
|
|
|
|
|
Nine months ended September 30, 2017 and October 1, 2016
|
|
|
|
|
|
|
|
|
September 30, 2017 and December 31, 2016
|
|
|
|
|
|
|
|
|
Nine months ended September 30, 2017 and October 1, 2016
|
|
|
|
|
|
||
|
|
|
|
||
|
||
|
|
|
|
|
|
(Amounts in thousands, except shares and per share data)
|
For the three months ended
|
||||||
|
September 30, 2017
|
|
October 1, 2016
|
||||
Net sales
|
$
|
564,663
|
|
|
$
|
530,392
|
|
Cost of products sold
|
432,697
|
|
|
393,592
|
|
||
Gross profit
|
131,966
|
|
|
136,800
|
|
||
Operating expenses:
|
|
|
|
|
|
||
Selling, general and administrative expenses
|
64,724
|
|
|
62,362
|
|
||
Amortization of intangible assets
|
5,341
|
|
|
6,429
|
|
||
Total operating expenses
|
70,065
|
|
|
68,791
|
|
||
Operating earnings
|
61,901
|
|
|
68,009
|
|
||
Foreign currency gain (loss)
|
810
|
|
|
(111
|
)
|
||
Interest expense
|
(17,545
|
)
|
|
(17,815
|
)
|
||
Interest income
|
27
|
|
|
10
|
|
||
Loss on modification or extinguishment of debt
|
—
|
|
|
(2,251
|
)
|
||
Tax receivable agreement liability adjustment
|
—
|
|
|
(42,215
|
)
|
||
Income before provision (benefit) for income taxes
|
45,193
|
|
|
5,627
|
|
||
Provision (benefit) for income taxes
|
17,659
|
|
|
(49,128
|
)
|
||
Net income
|
$
|
27,534
|
|
|
$
|
54,755
|
|
Comprehensive income
|
$
|
29,414
|
|
|
$
|
54,116
|
|
|
|
|
|
||||
Net income attributable to common shareholders per share:
|
|
|
|
||||
Basic
|
$
|
0.40
|
|
|
$
|
0.80
|
|
Diluted
|
$
|
0.40
|
|
|
$
|
0.80
|
|
Weighted average shares outstanding:
|
|
|
|
||||
Basic
|
68,459,278
|
|
|
68,196,533
|
|
||
Diluted
|
68,913,421
|
|
|
68,389,187
|
|
(Amounts in thousands, except shares and per share data)
|
For the nine months ended
|
||||||
|
September 30, 2017
|
|
October 1, 2016
|
||||
Net sales
|
$
|
1,539,445
|
|
|
$
|
1,449,551
|
|
Cost of products sold
|
1,181,066
|
|
|
1,090,761
|
|
||
Gross profit
|
358,379
|
|
|
358,790
|
|
||
Operating expenses:
|
|
|
|
||||
Selling, general and administrative expenses
|
202,610
|
|
|
199,745
|
|
||
Amortization of intangible assets
|
15,943
|
|
|
19,278
|
|
||
Total operating expenses
|
218,553
|
|
|
219,023
|
|
||
Operating earnings
|
139,826
|
|
|
139,767
|
|
||
Foreign currency gain
|
1,582
|
|
|
728
|
|
||
Interest expense
|
(51,830
|
)
|
|
(55,041
|
)
|
||
Interest income
|
60
|
|
|
29
|
|
||
Loss on modification or extinguishment of debt
|
—
|
|
|
(4,650
|
)
|
||
Tax receivable agreement liability adjustment
|
—
|
|
|
(60,606
|
)
|
||
Income before provision (benefit) for income taxes
|
89,638
|
|
|
20,227
|
|
||
Provision (benefit) for income taxes
|
35,882
|
|
|
(48,597
|
)
|
||
Net income
|
$
|
53,756
|
|
|
$
|
68,824
|
|
Comprehensive income
|
$
|
56,504
|
|
|
$
|
72,393
|
|
|
|
|
|
||||
Net income attributable to common shareholders per share:
|
|
|
|
||||
Basic
|
$
|
0.79
|
|
|
$
|
1.01
|
|
Diluted
|
$
|
0.78
|
|
|
$
|
1.01
|
|
Weighted average shares outstanding:
|
|
|
|
||||
Basic
|
68,431,494
|
|
|
68,161,064
|
|
||
Diluted
|
68,967,328
|
|
|
68,279,959
|
|
(Amounts in thousands, except share amounts)
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
ASSETS
|
|
|
|
|
||||
Current Assets:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
28,397
|
|
|
$
|
51,597
|
|
Accounts receivable, less allowances of $2,864 and $2,663, respectively
|
|
308,582
|
|
|
209,919
|
|
||
Inventories:
|
|
|
|
|
|
|
||
Raw materials
|
|
86,838
|
|
|
69,639
|
|
||
Work in process
|
|
31,948
|
|
|
24,621
|
|
||
Finished goods
|
|
77,453
|
|
|
67,696
|
|
||
Total inventory
|
|
196,239
|
|
|
161,956
|
|
||
Prepaid expenses and other current assets
|
|
52,565
|
|
|
26,850
|
|
||
Total current assets
|
|
585,783
|
|
|
450,322
|
|
||
Property and Equipment, at cost:
|
|
|
|
|
|
|
||
Land
|
|
8,233
|
|
|
8,249
|
|
||
Buildings and improvements
|
|
67,464
|
|
|
67,951
|
|
||
Machinery and equipment
|
|
440,384
|
|
|
413,565
|
|
||
Total property and equipment
|
|
516,081
|
|
|
489,765
|
|
||
Less accumulated depreciation
|
|
(345,207
|
)
|
|
(324,209
|
)
|
||
Total property and equipment, net
|
|
170,874
|
|
|
165,556
|
|
||
Other Assets:
|
|
|
|
|
|
|
||
Intangible assets, net
|
|
89,071
|
|
|
104,159
|
|
||
Goodwill
|
|
480,726
|
|
|
478,514
|
|
||
Deferred income taxes
|
|
20,476
|
|
|
50,347
|
|
||
Other
|
|
7,191
|
|
|
8,843
|
|
||
Total other assets
|
|
597,464
|
|
|
641,863
|
|
||
|
|
$
|
1,354,121
|
|
|
$
|
1,257,741
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
||
Current Liabilities:
|
|
|
|
|
|
|
||
Accounts payable
|
|
$
|
93,874
|
|
|
$
|
75,398
|
|
Accrued expenses
|
|
181,217
|
|
|
169,015
|
|
||
Current portion of payable to related parties pursuant to tax receivable agreement
|
|
25,383
|
|
|
25,383
|
|
||
Current portion of long-term debt
|
|
4,300
|
|
|
4,300
|
|
||
Total current liabilities
|
|
304,774
|
|
|
274,096
|
|
||
Deferred income taxes
|
|
2,061
|
|
|
2,722
|
|
||
Long-term portion of payable to related parties pursuant to tax receivable agreement
|
|
54,336
|
|
|
54,336
|
|
||
Other long-term liabilities
|
|
84,584
|
|
|
86,395
|
|
||
Long-term debt
|
|
843,005
|
|
|
836,086
|
|
||
|
|
|
|
|
||||
Commitments and contingencies
|
|
|
|
|
|
|
||
|
|
|
|
|
||||
Stockholders' Equity:
|
|
|
|
|
|
|
||
Preferred stock $0.01 par, 50,000,000 shares authorized, none issued and outstanding
|
|
—
|
|
|
—
|
|
||
Common stock $0.01 par, 250,000,000 shares authorized, 68,459,278 and 68,269,749 issued and outstanding, respectively
|
|
685
|
|
|
683
|
|
||
Additional paid-in-capital
|
|
754,879
|
|
|
751,452
|
|
||
Accumulated deficit
|
|
(659,661
|
)
|
|
(714,737
|
)
|
||
Accumulated other comprehensive loss
|
|
(30,542
|
)
|
|
(33,292
|
)
|
||
Total stockholders' equity
|
|
65,361
|
|
|
4,106
|
|
||
|
|
$
|
1,354,121
|
|
|
$
|
1,257,741
|
|
(Amounts in thousands)
|
|
For the nine months ended
|
||||||
|
|
September 30, 2017
|
|
October 1, 2016
|
||||
Cash flows from operating activities:
|
|
|
|
|
||||
Net income
|
|
$
|
53,756
|
|
|
$
|
68,824
|
|
Adjustments to reconcile net income to cash provided by operating activities:
|
|
|
|
|
|
|
||
Depreciation and amortization expense
|
|
39,792
|
|
|
42,466
|
|
||
Non-cash restructuring costs
|
|
1,198
|
|
|
491
|
|
||
Non-cash interest expense, net
|
|
10,595
|
|
|
10,143
|
|
||
Gain on foreign currency transactions
|
|
(1,582
|
)
|
|
(728
|
)
|
||
Non-cash litigation expense
|
|
650
|
|
|
—
|
|
||
Loss on modification or extinguishment of debt
|
|
—
|
|
|
4,650
|
|
||
Stock based compensation
|
|
585
|
|
|
808
|
|
||
Deferred income taxes
|
|
30,425
|
|
|
(53,080
|
)
|
||
Tax receivable agreement liability adjustment
|
|
—
|
|
|
60,606
|
|
||
Increase in tax uncertainty, net of valuation allowance
|
|
202
|
|
|
190
|
|
||
Gain on sale of building
|
|
(1,880
|
)
|
|
—
|
|
||
Other
|
|
(75
|
)
|
|
(43
|
)
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
||
Accounts receivable, net
|
|
(97,941
|
)
|
|
(88,450
|
)
|
||
Inventories
|
|
(34,163
|
)
|
|
(17,393
|
)
|
||
Prepaid expenses and other assets
|
|
(104
|
)
|
|
(2,181
|
)
|
||
Accounts payable
|
|
18,715
|
|
|
15,906
|
|
||
Accrued expenses
|
|
(13,445
|
)
|
|
(1,933
|
)
|
||
Cash payments on restructuring liabilities
|
|
(693
|
)
|
|
(603
|
)
|
||
Other
|
|
(237
|
)
|
|
318
|
|
||
Net cash provided by operating activities
|
|
5,798
|
|
|
39,991
|
|
||
Cash flows from investing activities:
|
|
|
|
|
|
|
||
Capital expenditures
|
|
(28,577
|
)
|
|
(26,414
|
)
|
||
Proceeds from sale of assets
|
|
2,439
|
|
|
161
|
|
||
Net cash used in investing activities
|
|
(26,138
|
)
|
|
(26,253
|
)
|
||
Cash flows from financing activities:
|
|
|
|
|
|
|
||
Payments on long-term debt
|
|
(3,225
|
)
|
|
(63,225
|
)
|
||
Payments to tax authority for employee stock based compensation
|
|
(1,186
|
)
|
|
—
|
|
||
Proceeds from exercises of employee stock options
|
|
745
|
|
|
689
|
|
||
Net cash used in financing activities
|
|
(3,666
|
)
|
|
(62,536
|
)
|
||
Impact of exchange rate movements on cash
|
|
806
|
|
|
2,066
|
|
||
Net decrease in cash and cash equivalents
|
|
(23,200
|
)
|
|
(46,732
|
)
|
||
Cash and cash equivalents at the beginning of the period
|
|
51,597
|
|
|
109,425
|
|
||
Cash and cash equivalents at the end of the period
|
|
$
|
28,397
|
|
|
$
|
62,693
|
|
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
|
(Amounts in thousands)
|
September 30, 2017
|
|
December 31, 2016
|
||||
Foreign currency hedge included in other current assets (accrued expenses)
|
$
|
(623
|
)
|
|
$
|
962
|
|
•
|
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%
|
|
$
|
650,000
|
|
|
$
|
676,000
|
|
|
$
|
676,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Term Loan Facility
|
|
254,950
|
|
|
257,181
|
|
|
—
|
|
|
257,181
|
|
|
—
|
|
|||||
As of September 30, 2017
|
|
$
|
904,950
|
|
|
$
|
933,181
|
|
|
$
|
676,000
|
|
|
$
|
257,181
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Senior Notes-6.50%
|
|
$
|
650,000
|
|
|
$
|
676,000
|
|
|
$
|
676,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Term Loan Facility
|
|
258,175
|
|
|
260,757
|
|
|
—
|
|
|
260,757
|
|
|
—
|
|
|||||
As of December 31, 2016
|
|
$
|
908,175
|
|
|
$
|
936,757
|
|
|
$
|
676,000
|
|
|
$
|
260,757
|
|
|
$
|
—
|
|
(Amounts in thousands)
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
Siding, Fencing and Stone
|
|
$
|
350,065
|
|
|
$
|
348,553
|
|
Windows and Doors
|
|
130,661
|
|
|
129,961
|
|
||
|
|
$
|
480,726
|
|
|
$
|
478,514
|
|
|
|
Windows and
|
|
Siding, Fencing
|
||||
(Amounts in thousands)
|
|
Doors
|
|
and Stone
|
||||
Balance as of December 31, 2016
|
|
|
|
|
|
|
||
Goodwill
|
|
$
|
457,734
|
|
|
$
|
470,780
|
|
Accumulated impairment losses
|
|
(327,773
|
)
|
|
(122,227
|
)
|
||
|
|
$
|
129,961
|
|
|
$
|
348,553
|
|
Currency translation adjustments
|
|
700
|
|
|
1,512
|
|
||
Balance as of September 30, 2017
|
|
|
|
|
|
|
||
Goodwill
|
|
458,434
|
|
|
472,292
|
|
||
Accumulated impairment losses
|
|
(327,773
|
)
|
|
(122,227
|
)
|
||
|
|
$
|
130,661
|
|
|
$
|
350,065
|
|
(Amounts in thousands)
|
|
Average
Amortization Period |
|
|
|
Accumulated
|
|
Net Carrying
|
||||||
|
|
(in Years)
|
|
Cost
|
|
Amortization
|
|
Value
|
||||||
As of September 30, 2017:
|
|
|
|
|
|
|
|
|
||||||
Patents
|
|
14
|
|
$
|
12,770
|
|
|
$
|
(12,307
|
)
|
|
$
|
463
|
|
Trademarks/Tradenames
|
|
12
|
|
117,472
|
|
|
(88,127
|
)
|
|
29,345
|
|
|||
Customer relationships
|
|
13
|
|
219,617
|
|
|
(161,654
|
)
|
|
57,963
|
|
|||
Other
|
|
4
|
|
5,752
|
|
|
(4,452
|
)
|
|
1,300
|
|
|||
Total intangible assets
|
|
12
|
|
$
|
355,611
|
|
|
$
|
(266,540
|
)
|
|
$
|
89,071
|
|
|
|
|
|
|
|
|
|
|
||||||
As of December 31, 2016:
|
|
|
|
|
|
|
|
|
|
|
|
|||
Patents
|
|
14
|
|
$
|
12,770
|
|
|
$
|
(12,078
|
)
|
|
$
|
692
|
|
Trademarks/Tradenames
|
|
12
|
|
117,124
|
|
|
(82,723
|
)
|
|
34,401
|
|
|||
Customer relationships
|
|
13
|
|
217,861
|
|
|
(150,310
|
)
|
|
67,551
|
|
|||
Other
|
|
4
|
|
5,661
|
|
|
(4,146
|
)
|
|
1,515
|
|
|||
Total intangible assets
|
|
12
|
|
$
|
353,416
|
|
|
$
|
(249,257
|
)
|
|
$
|
104,159
|
|
|
Amortization
|
||
(Amounts in thousands)
|
expense
|
||
|
|
||
2017 (remainder of year)
|
$
|
5,188
|
|
2018
|
20,280
|
|
|
2019
|
16,154
|
|
|
2020
|
11,464
|
|
|
2021
|
6,718
|
|
(Amounts in thousands)
|
|
For the three months ended
|
|
For the nine months ended
|
||||||||||||
|
|
September 30, 2017
|
|
October 1, 2016
|
|
September 30, 2017
|
|
October 1, 2016
|
||||||||
Net income
|
|
$
|
27,534
|
|
|
$
|
54,755
|
|
|
$
|
53,756
|
|
|
$
|
68,824
|
|
Foreign currency translation adjustment
|
|
2,321
|
|
|
(1,258
|
)
|
|
4,165
|
|
|
4,099
|
|
||||
Unrealized gain (loss) on derivative instruments
|
|
(441
|
)
|
|
619
|
|
|
(1,417
|
)
|
|
(530
|
)
|
||||
Comprehensive income
|
|
$
|
29,414
|
|
|
$
|
54,116
|
|
|
$
|
56,504
|
|
|
$
|
72,393
|
|
(Amounts in thousands)
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
Senior secured asset based revolving credit facility
|
|
$
|
—
|
|
|
$
|
—
|
|
Term Loan due 2021, net of unamortized early tender premium,
|
|
|
|
|
||||
discount, and debt issuance costs of $13,845 and $17,854, respectively
|
|
241,105
|
|
|
240,321
|
|
||
6.50% Senior notes due 2022, net of unamortized early tender premium,
|
|
|
|
|
||||
discount, and debt issuance costs of $43,800 and $49,935, respectively
|
|
606,200
|
|
|
600,065
|
|
||
|
|
$
|
847,305
|
|
|
$
|
840,386
|
|
Less current portion of long-term debt
|
|
(4,300
|
)
|
|
(4,300
|
)
|
||
|
|
$
|
843,005
|
|
|
$
|
836,086
|
|
(Amounts in thousands)
|
|
For the three months ended
|
|
For the nine months ended
|
||||||||||||
|
|
September 30, 2017
|
|
October 1, 2016
|
|
September 30, 2017
|
|
October 1, 2016
|
||||||||
Loss on modification of debt:
|
|
|
|
|
|
|
|
|
||||||||
Term Loan Facility unamortized discount
|
|
$
|
—
|
|
|
$
|
1,797
|
|
|
$
|
—
|
|
|
$
|
3,712
|
|
Term Loan Facility unamortized debt issuance costs
|
|
—
|
|
|
454
|
|
|
—
|
|
|
938
|
|
||||
Total loss on modification or extinguishment of debt
|
|
$
|
—
|
|
|
$
|
2,251
|
|
|
$
|
—
|
|
|
$
|
4,650
|
|
(Amounts in thousands)
|
|
For the three months ended
|
|
For the nine months ended
|
|
||||||||||||
|
|
September 30, 2017
|
|
October 1, 2016
|
|
September 30, 2017
|
|
October 1, 2016
|
|
||||||||
Service cost
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Interest cost
|
|
459
|
|
|
486
|
|
|
1,376
|
|
|
1,458
|
|
|
||||
Expected return on plan assets
|
|
(546
|
)
|
|
(545
|
)
|
|
(1,639
|
)
|
|
(1,634
|
)
|
|
||||
Amortization of loss
|
|
351
|
|
|
354
|
|
|
1,052
|
|
|
1,031
|
|
|
||||
Net periodic benefit expense
|
|
$
|
264
|
|
|
$
|
295
|
|
|
$
|
789
|
|
|
$
|
855
|
|
|
(Amounts in thousands)
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
Product claim liabilities
|
|
$
|
138
|
|
|
$
|
138
|
|
Multi-employer pension plan withdrawal liability
|
|
538
|
|
|
808
|
|
||
Other
|
|
440
|
|
|
500
|
|
||
|
|
$
|
1,116
|
|
|
$
|
1,446
|
|
|
|
For the three months ended
|
|
For the nine months ended
|
||||||||||||
(Amounts in thousands)
|
|
September 30, 2017
|
|
October 1, 2016
|
|
September 30, 2017
|
|
October 1, 2016
|
||||||||
Balance, beginning of period
|
|
$
|
78,214
|
|
|
$
|
77,313
|
|
|
$
|
77,293
|
|
|
$
|
76,562
|
|
Warranty expense during period
|
|
6,432
|
|
|
5,074
|
|
|
18,132
|
|
|
15,869
|
|
||||
Settlements made during period
|
|
(5,577
|
)
|
|
(5,635
|
)
|
|
(16,356
|
)
|
|
(15,679
|
)
|
||||
Balance, end of period
|
|
$
|
79,069
|
|
|
$
|
76,752
|
|
|
$
|
79,069
|
|
|
$
|
76,752
|
|
(Amounts in thousands)
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
Insurance
|
|
$
|
7,888
|
|
|
$
|
8,297
|
|
Employee compensation and benefits
|
|
20,762
|
|
|
27,749
|
|
||
Sales and marketing
|
|
57,760
|
|
|
59,655
|
|
||
Product warranty
|
|
20,431
|
|
|
19,718
|
|
||
Accrued freight
|
|
3,452
|
|
|
2,146
|
|
||
Accrued interest
|
|
7,336
|
|
|
17,977
|
|
||
Accrued environmental liability
|
|
453
|
|
|
434
|
|
||
Accrued pension
|
|
1,753
|
|
|
1,753
|
|
||
Accrued sales returns and discounts
|
|
1,381
|
|
|
1,199
|
|
||
Accrued taxes
|
|
5,800
|
|
|
4,966
|
|
||
Litigation accrual
|
|
26,849
|
|
|
2,575
|
|
||
Other
|
|
27,352
|
|
|
22,546
|
|
||
|
|
$
|
181,217
|
|
|
$
|
169,015
|
|
(Amounts in thousands)
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
Insurance
|
|
$
|
563
|
|
|
$
|
605
|
|
Pension liabilities
|
|
13,459
|
|
|
13,907
|
|
||
Multi-employer pension withdrawal liability
|
|
538
|
|
|
808
|
|
||
Product warranty
|
|
58,638
|
|
|
57,575
|
|
||
Long-term product claim liability
|
|
138
|
|
|
138
|
|
||
Long-term environmental liability
|
|
1,157
|
|
|
1,158
|
|
||
Liabilities for tax uncertainties
|
|
4,127
|
|
|
3,925
|
|
||
Litigation accrual
|
|
731
|
|
|
731
|
|
||
Other
|
|
5,233
|
|
|
7,548
|
|
||
|
|
$
|
84,584
|
|
|
$
|
86,395
|
|
|
|
Stock Options
|
|
Weighted-
Average Exercise Price |
|
Weighted-
Average Remaining Contractual Term (Years) |
||||
Balance at January 1, 2017
|
|
2,495,533
|
|
|
$
|
13.96
|
|
|
4.35
|
|
Granted
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Exercised
|
|
(60,353
|
)
|
|
12.35
|
|
|
—
|
|
|
Forfeited or expired
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Balance at September 30, 2017
|
|
2,435,180
|
|
|
$
|
14.00
|
|
|
3.65
|
|
(Amounts in thousands)
|
|
For the three months ended
|
|
For the nine months ended
|
||||||||||||
|
|
September 30, 2017
|
|
October 1, 2016
|
|
September 30, 2017
|
|
October 1, 2016
|
||||||||
Net sales
|
|
|
|
|
|
|
|
|
||||||||
Siding, Fencing and Stone
|
|
$
|
278,179
|
|
|
$
|
258,924
|
|
|
$
|
732,609
|
|
|
$
|
679,711
|
|
Windows and Doors
|
|
286,484
|
|
|
271,468
|
|
|
806,836
|
|
|
769,840
|
|
||||
|
|
$
|
564,663
|
|
|
$
|
530,392
|
|
|
$
|
1,539,445
|
|
|
$
|
1,449,551
|
|
Operating earnings (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Siding, Fencing and Stone
|
|
$
|
48,127
|
|
|
$
|
54,853
|
|
|
$
|
115,529
|
|
|
$
|
126,531
|
|
Windows and Doors
|
|
20,251
|
|
|
18,911
|
|
|
46,405
|
|
|
35,662
|
|
||||
Unallocated
|
|
(6,477
|
)
|
|
(5,755
|
)
|
|
(22,108
|
)
|
|
(22,426
|
)
|
||||
|
|
$
|
61,901
|
|
|
$
|
68,009
|
|
|
$
|
139,826
|
|
|
$
|
139,767
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Total assets as of
|
|
|
|
|
||||||||||
|
|
September 30, 2017
|
|
December 31, 2016
|
|
|
|
|
||||||||
Total assets
|
|
|
|
|
|
|
|
|
|
|
||||||
Siding, Fencing and Stone
|
|
$
|
760,642
|
|
|
$
|
691,930
|
|
|
|
|
|
||||
Windows and Doors
|
|
530,527
|
|
|
509,055
|
|
|
|
|
|
||||||
Unallocated
|
|
62,952
|
|
|
56,756
|
|
|
|
|
|
||||||
|
|
$
|
1,354,121
|
|
|
$
|
1,257,741
|
|
|
|
|
|
PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
|
||||||||||||||||||||||||
Three months ended September 30, 2017
|
||||||||||||||||||||||||
(Amounts in thousands)
|
|
Guarantor
|
|
Issuer
|
|
|
|
Non-
|
|
|
|
|
||||||||||||
|
|
Ply Gem
|
|
Ply Gem
|
|
Guarantor
|
|
Guarantor
|
|
Consolidating
|
|
|
||||||||||||
|
|
Holdings, Inc.
|
|
Industries, Inc.
|
|
Subsidiaries
|
|
Subsidiaries
|
|
Adjustments
|
|
Consolidated
|
||||||||||||
Net sales
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
496,437
|
|
|
$
|
68,226
|
|
|
$
|
—
|
|
|
$
|
564,663
|
|
Cost of products sold
|
|
—
|
|
|
—
|
|
|
383,042
|
|
|
49,655
|
|
|
—
|
|
|
432,697
|
|
||||||
Gross profit
|
|
—
|
|
|
—
|
|
|
113,395
|
|
|
18,571
|
|
|
—
|
|
|
131,966
|
|
||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Selling, general and
administrative expenses |
|
—
|
|
|
6,477
|
|
|
45,936
|
|
|
12,311
|
|
|
—
|
|
|
64,724
|
|
||||||
Intercompany administrative charges
|
|
—
|
|
|
—
|
|
|
7,017
|
|
|
1,181
|
|
|
(8,198
|
)
|
|
—
|
|
||||||
Amortization of intangible assets
|
|
—
|
|
|
—
|
|
|
4,231
|
|
|
1,110
|
|
|
—
|
|
|
5,341
|
|
||||||
Total operating expenses
|
|
—
|
|
|
6,477
|
|
|
57,184
|
|
|
14,602
|
|
|
(8,198
|
)
|
|
70,065
|
|
||||||
Operating earnings (loss)
|
|
—
|
|
|
(6,477
|
)
|
|
56,211
|
|
|
3,969
|
|
|
8,198
|
|
|
61,901
|
|
||||||
Foreign currency gain
|
|
—
|
|
|
—
|
|
|
—
|
|
|
810
|
|
|
—
|
|
|
810
|
|
||||||
Intercompany interest
|
|
—
|
|
|
14,224
|
|
|
(14,040
|
)
|
|
(184
|
)
|
|
—
|
|
|
—
|
|
||||||
Interest expense
|
|
—
|
|
|
(17,545
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(17,545
|
)
|
||||||
Interest income
|
|
—
|
|
|
9
|
|
|
11
|
|
|
7
|
|
|
—
|
|
|
27
|
|
||||||
Intercompany administrative income
|
|
—
|
|
|
8,198
|
|
|
—
|
|
|
—
|
|
|
(8,198
|
)
|
|
—
|
|
||||||
Income (loss) before equity in
subsidiaries' income |
|
—
|
|
|
(1,591
|
)
|
|
42,182
|
|
|
4,602
|
|
|
—
|
|
|
45,193
|
|
||||||
Equity in subsidiaries' income
|
|
27,534
|
|
|
29,125
|
|
|
—
|
|
|
—
|
|
|
(56,659
|
)
|
|
—
|
|
||||||
Income before provision
for income taxes |
|
27,534
|
|
|
27,534
|
|
|
42,182
|
|
|
4,602
|
|
|
(56,659
|
)
|
|
45,193
|
|
||||||
Provision for income taxes
|
|
—
|
|
|
—
|
|
|
16,975
|
|
|
684
|
|
|
—
|
|
|
17,659
|
|
||||||
Net income
|
|
$
|
27,534
|
|
|
$
|
27,534
|
|
|
$
|
25,207
|
|
|
$
|
3,918
|
|
|
$
|
(56,659
|
)
|
|
$
|
27,534
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign currency translation adjustments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,321
|
|
|
—
|
|
|
2,321
|
|
||||||
Unrealized loss on derivative instruments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(441
|
)
|
|
—
|
|
|
(441
|
)
|
||||||
Total comprehensive income
|
|
$
|
27,534
|
|
|
$
|
27,534
|
|
|
$
|
25,207
|
|
|
$
|
5,798
|
|
|
$
|
(56,659
|
)
|
|
$
|
29,414
|
|
PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
|
||||||||||||||||||||||||
Three months ended October 1, 2016
|
||||||||||||||||||||||||
(Amounts in thousands)
|
|
Guarantor
|
|
Issuer
|
|
|
|
Non-
|
|
|
|
|
||||||||||||
|
|
Ply Gem
|
|
Ply Gem
|
|
Guarantor
|
|
Guarantor
|
|
Consolidating
|
|
|
||||||||||||
|
|
Holdings, Inc.
|
|
Industries, Inc.
|
|
Subsidiaries
|
|
Subsidiary
|
|
Adjustments
|
|
Consolidated
|
||||||||||||
Net sales
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
472,592
|
|
|
$
|
57,800
|
|
|
$
|
—
|
|
|
$
|
530,392
|
|
Cost of products sold
|
|
—
|
|
|
—
|
|
|
351,261
|
|
|
42,331
|
|
|
—
|
|
|
393,592
|
|
||||||
Gross profit
|
|
—
|
|
|
—
|
|
|
121,331
|
|
|
15,469
|
|
|
—
|
|
|
136,800
|
|
||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Selling, general and
administrative expenses |
|
—
|
|
|
5,755
|
|
|
45,034
|
|
|
11,573
|
|
|
—
|
|
|
62,362
|
|
||||||
Intercompany administrative charges
|
|
—
|
|
|
—
|
|
|
7,932
|
|
|
1,635
|
|
|
(9,567
|
)
|
|
—
|
|
||||||
Amortization of intangible assets
|
|
—
|
|
|
—
|
|
|
5,360
|
|
|
1,069
|
|
|
—
|
|
|
6,429
|
|
||||||
Total operating expenses
|
|
—
|
|
|
5,755
|
|
|
58,326
|
|
|
14,277
|
|
|
(9,567
|
)
|
|
68,791
|
|
||||||
Operating earnings (loss)
|
|
—
|
|
|
(5,755
|
)
|
|
63,005
|
|
|
1,192
|
|
|
9,567
|
|
|
68,009
|
|
||||||
Foreign currency loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(111
|
)
|
|
—
|
|
|
(111
|
)
|
||||||
Intercompany interest
|
|
—
|
|
|
15,927
|
|
|
(14,854
|
)
|
|
(1,073
|
)
|
|
—
|
|
|
—
|
|
||||||
Interest expense
|
|
—
|
|
|
(17,815
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(17,815
|
)
|
||||||
Interest income
|
|
—
|
|
|
2
|
|
|
4
|
|
|
4
|
|
|
—
|
|
|
10
|
|
||||||
Loss on modification or
extinguishment of debt |
|
—
|
|
|
(2,251
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,251
|
)
|
||||||
Tax receivable agreement liability adjustment
|
|
—
|
|
|
(42,215
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(42,215
|
)
|
||||||
Intercompany administrative income
|
|
—
|
|
|
9,567
|
|
|
—
|
|
|
—
|
|
|
(9,567
|
)
|
|
—
|
|
||||||
Income (loss) before equity in
subsidiaries' income |
|
—
|
|
|
(42,540
|
)
|
|
48,155
|
|
|
12
|
|
|
—
|
|
|
5,627
|
|
||||||
Equity in subsidiaries' income
|
|
54,755
|
|
|
97,295
|
|
|
—
|
|
|
—
|
|
|
(152,050
|
)
|
|
—
|
|
||||||
Income before benefit
for income taxes |
|
54,755
|
|
|
54,755
|
|
|
48,155
|
|
|
12
|
|
|
(152,050
|
)
|
|
5,627
|
|
||||||
Benefit for income taxes
|
|
—
|
|
|
—
|
|
|
(49,083
|
)
|
|
(45
|
)
|
|
—
|
|
|
(49,128
|
)
|
||||||
Net income
|
|
$
|
54,755
|
|
|
$
|
54,755
|
|
|
$
|
97,238
|
|
|
$
|
57
|
|
|
$
|
(152,050
|
)
|
|
$
|
54,755
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign currency translation adjustments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,258
|
)
|
|
—
|
|
|
(1,258
|
)
|
||||||
Unrealized gain on derivative instruments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
619
|
|
|
—
|
|
|
619
|
|
||||||
Total comprehensive income (loss)
|
|
$
|
54,755
|
|
|
$
|
54,755
|
|
|
$
|
97,238
|
|
|
$
|
(582
|
)
|
|
$
|
(152,050
|
)
|
|
$
|
54,116
|
|
PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
|
||||||||||||||||||||||||
For the nine months ended September 30, 2017
|
||||||||||||||||||||||||
(Amounts in thousands)
|
|
Guarantor
|
|
Issuer
|
|
|
|
Non-
|
|
|
|
|
||||||||||||
|
|
Ply Gem
|
|
Ply Gem
|
|
Guarantor
|
|
Guarantor
|
|
Consolidating
|
|
|
||||||||||||
|
|
Holdings, Inc.
|
|
Industries, Inc.
|
|
Subsidiaries
|
|
Subsidiaries
|
|
Adjustments
|
|
Consolidated
|
||||||||||||
Net sales
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,374,904
|
|
|
$
|
164,541
|
|
|
$
|
—
|
|
|
$
|
1,539,445
|
|
Cost of products sold
|
|
—
|
|
|
—
|
|
|
1,057,483
|
|
|
123,583
|
|
|
—
|
|
|
1,181,066
|
|
||||||
Gross profit
|
|
—
|
|
|
—
|
|
|
317,421
|
|
|
40,958
|
|
|
—
|
|
|
358,379
|
|
||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Selling, general and
administrative expenses |
|
—
|
|
|
22,108
|
|
|
146,040
|
|
|
34,462
|
|
|
—
|
|
|
202,610
|
|
||||||
Intercompany administrative charges
|
|
—
|
|
|
—
|
|
|
31,126
|
|
|
3,019
|
|
|
(34,145
|
)
|
|
—
|
|
||||||
Amortization of intangible assets
|
|
—
|
|
|
—
|
|
|
12,667
|
|
|
3,276
|
|
|
—
|
|
|
15,943
|
|
||||||
Total operating expenses
|
|
—
|
|
|
22,108
|
|
|
189,833
|
|
|
40,757
|
|
|
(34,145
|
)
|
|
218,553
|
|
||||||
Operating earnings (loss)
|
|
—
|
|
|
(22,108
|
)
|
|
127,588
|
|
|
201
|
|
|
34,145
|
|
|
139,826
|
|
||||||
Foreign currency gain
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,582
|
|
|
—
|
|
|
1,582
|
|
||||||
Intercompany interest
|
|
—
|
|
|
42,657
|
|
|
(39,739
|
)
|
|
(2,918
|
)
|
|
—
|
|
|
—
|
|
||||||
Interest expense
|
|
—
|
|
|
(51,830
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(51,830
|
)
|
||||||
Interest income
|
|
—
|
|
|
21
|
|
|
24
|
|
|
15
|
|
|
—
|
|
|
60
|
|
||||||
Intercompany administrative income
|
|
—
|
|
|
34,145
|
|
|
—
|
|
|
—
|
|
|
(34,145
|
)
|
|
—
|
|
||||||
Income (loss) before equity in
subsidiaries' income (loss) |
|
—
|
|
|
2,885
|
|
|
87,873
|
|
|
(1,120
|
)
|
|
—
|
|
|
89,638
|
|
||||||
Equity in subsidiaries' income (loss)
|
|
53,756
|
|
|
50,871
|
|
|
—
|
|
|
—
|
|
|
(104,627
|
)
|
|
—
|
|
||||||
Income (loss) before provision
(benefit) for income taxes |
|
53,756
|
|
|
53,756
|
|
|
87,873
|
|
|
(1,120
|
)
|
|
(104,627
|
)
|
|
89,638
|
|
||||||
Provision (benefit) for income taxes
|
|
—
|
|
|
—
|
|
|
36,339
|
|
|
(457
|
)
|
|
—
|
|
|
35,882
|
|
||||||
Net income (loss)
|
|
$
|
53,756
|
|
|
$
|
53,756
|
|
|
$
|
51,534
|
|
|
$
|
(663
|
)
|
|
$
|
(104,627
|
)
|
|
$
|
53,756
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign currency translation adjustments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,165
|
|
|
—
|
|
|
4,165
|
|
||||||
Unrealized loss on derivative instruments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,417
|
)
|
|
—
|
|
|
(1,417
|
)
|
||||||
Total comprehensive income
|
|
$
|
53,756
|
|
|
$
|
53,756
|
|
|
$
|
51,534
|
|
|
$
|
2,085
|
|
|
$
|
(104,627
|
)
|
|
$
|
56,504
|
|
PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
|
||||||||||||||||||||||||
For the nine months ended October 1, 2016
|
||||||||||||||||||||||||
(Amounts in thousands)
|
|
Guarantor
|
|
Issuer
|
|
|
|
Non-
|
|
|
|
|
||||||||||||
|
|
Ply Gem
|
|
Ply Gem
|
|
Guarantor
|
|
Guarantor
|
|
Consolidating
|
|
|
||||||||||||
|
|
Holdings, Inc.
|
|
Industries, Inc.
|
|
Subsidiaries
|
|
Subsidiary
|
|
Adjustments
|
|
Consolidated
|
||||||||||||
Net sales
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,299,760
|
|
|
$
|
149,791
|
|
|
$
|
—
|
|
|
$
|
1,449,551
|
|
Cost of products sold
|
|
—
|
|
|
—
|
|
|
975,801
|
|
|
114,960
|
|
|
—
|
|
|
1,090,761
|
|
||||||
Gross profit
|
|
—
|
|
|
—
|
|
|
323,959
|
|
|
34,831
|
|
|
—
|
|
|
358,790
|
|
||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Selling, general and
administrative expenses |
|
—
|
|
|
22,426
|
|
|
142,325
|
|
|
34,994
|
|
|
—
|
|
|
199,745
|
|
||||||
Intercompany administrative charges
|
|
—
|
|
|
—
|
|
|
26,341
|
|
|
3,857
|
|
|
(30,198
|
)
|
|
—
|
|
||||||
Amortization of intangible assets
|
|
—
|
|
|
—
|
|
|
15,997
|
|
|
3,281
|
|
|
—
|
|
|
19,278
|
|
||||||
Total operating expenses
|
|
—
|
|
|
22,426
|
|
|
184,663
|
|
|
42,132
|
|
|
(30,198
|
)
|
|
219,023
|
|
||||||
Operating earnings (loss)
|
|
—
|
|
|
(22,426
|
)
|
|
139,296
|
|
|
(7,301
|
)
|
|
30,198
|
|
|
139,767
|
|
||||||
Foreign currency gain
|
|
—
|
|
|
—
|
|
|
—
|
|
|
728
|
|
|
—
|
|
|
728
|
|
||||||
Intercompany interest
|
|
—
|
|
|
47,788
|
|
|
(44,889
|
)
|
|
(2,899
|
)
|
|
—
|
|
|
—
|
|
||||||
Interest expense
|
|
—
|
|
|
(55,040
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(55,041
|
)
|
||||||
Interest income
|
|
—
|
|
|
5
|
|
|
10
|
|
|
14
|
|
|
—
|
|
|
29
|
|
||||||
Loss on modification or
extinguishment of debt |
|
—
|
|
|
(4,650
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,650
|
)
|
||||||
Tax receivable agreement liability adjustment
|
|
—
|
|
|
(60,606
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(60,606
|
)
|
||||||
Intercompany administrative income
|
|
—
|
|
|
30,198
|
|
|
—
|
|
|
—
|
|
|
(30,198
|
)
|
|
—
|
|
||||||
Income (loss) before equity in
subsidiaries' income (loss) |
|
—
|
|
|
(64,731
|
)
|
|
94,417
|
|
|
(9,459
|
)
|
|
—
|
|
|
20,227
|
|
||||||
Equity in subsidiaries' income (loss)
|
|
68,824
|
|
|
133,555
|
|
|
—
|
|
|
—
|
|
|
(202,379
|
)
|
|
—
|
|
||||||
Income (loss) before benefit
for income taxes |
|
68,824
|
|
|
68,824
|
|
|
94,417
|
|
|
(9,459
|
)
|
|
(202,379
|
)
|
|
20,227
|
|
||||||
Benefit for income taxes
|
|
—
|
|
|
—
|
|
|
(48,448
|
)
|
|
(149
|
)
|
|
—
|
|
|
(48,597
|
)
|
||||||
Net income (loss)
|
|
$
|
68,824
|
|
|
$
|
68,824
|
|
|
$
|
142,865
|
|
|
$
|
(9,310
|
)
|
|
$
|
(202,379
|
)
|
|
$
|
68,824
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign currency translation adjustments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,099
|
|
|
—
|
|
|
4,099
|
|
||||||
Unrealized loss on derivative instrument
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(530
|
)
|
|
—
|
|
|
(530
|
)
|
||||||
Total comprehensive income (loss)
|
|
$
|
68,824
|
|
|
$
|
68,824
|
|
|
$
|
142,865
|
|
|
$
|
(5,741
|
)
|
|
$
|
(202,379
|
)
|
|
$
|
72,393
|
|
PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET
|
||||||||||||||||||||||||
As of September 30, 2017
|
||||||||||||||||||||||||
(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
|
|
$
|
—
|
|
|
$
|
28,724
|
|
|
$
|
(12,232
|
)
|
|
$
|
11,905
|
|
|
$
|
—
|
|
|
$
|
28,397
|
|
Accounts receivable, net
|
|
—
|
|
|
—
|
|
|
271,255
|
|
|
37,327
|
|
|
—
|
|
|
308,582
|
|
||||||
Inventories:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Raw materials
|
|
—
|
|
|
—
|
|
|
80,515
|
|
|
6,323
|
|
|
—
|
|
|
86,838
|
|
||||||
Work in process
|
|
—
|
|
|
—
|
|
|
29,895
|
|
|
2,053
|
|
|
—
|
|
|
31,948
|
|
||||||
Finished goods
|
|
—
|
|
|
—
|
|
|
60,833
|
|
|
16,620
|
|
|
—
|
|
|
77,453
|
|
||||||
Total inventory
|
|
—
|
|
|
—
|
|
|
171,243
|
|
|
24,996
|
|
|
—
|
|
|
196,239
|
|
||||||
Prepaid expenses and other current assets
|
|
—
|
|
|
28,676
|
|
|
20,398
|
|
|
3,491
|
|
|
—
|
|
|
52,565
|
|
||||||
Total current assets
|
|
—
|
|
|
57,400
|
|
|
450,664
|
|
|
77,719
|
|
|
—
|
|
|
585,783
|
|
||||||
Investments in subsidiaries
|
|
65,361
|
|
|
(162,336
|
)
|
|
—
|
|
|
—
|
|
|
96,975
|
|
|
—
|
|
||||||
Property and Equipment, at cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Land
|
|
—
|
|
|
—
|
|
|
7,553
|
|
|
680
|
|
|
—
|
|
|
8,233
|
|
||||||
Buildings and improvements
|
|
—
|
|
|
518
|
|
|
62,568
|
|
|
4,378
|
|
|
—
|
|
|
67,464
|
|
||||||
Machinery and equipment
|
|
—
|
|
|
3,771
|
|
|
413,746
|
|
|
22,867
|
|
|
—
|
|
|
440,384
|
|
||||||
Total property and equipment
|
|
—
|
|
|
4,289
|
|
|
483,867
|
|
|
27,925
|
|
|
—
|
|
|
516,081
|
|
||||||
Less accumulated depreciation
|
|
—
|
|
|
(870
|
)
|
|
(331,267
|
)
|
|
(13,070
|
)
|
|
—
|
|
|
(345,207
|
)
|
||||||
Total property and equipment, net
|
|
—
|
|
|
3,419
|
|
|
152,600
|
|
|
14,855
|
|
|
—
|
|
|
170,874
|
|
||||||
Other Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Intangible assets, net
|
|
—
|
|
|
—
|
|
|
79,149
|
|
|
9,922
|
|
|
—
|
|
|
89,071
|
|
||||||
Goodwill
|
|
—
|
|
|
—
|
|
|
449,366
|
|
|
31,360
|
|
|
—
|
|
|
480,726
|
|
||||||
Deferred income taxes
|
|
—
|
|
|
—
|
|
|
20,476
|
|
|
—
|
|
|
—
|
|
|
20,476
|
|
||||||
Intercompany note receivable
|
|
—
|
|
|
1,139,073
|
|
|
—
|
|
|
—
|
|
|
(1,139,073
|
)
|
|
—
|
|
||||||
Other
|
|
—
|
|
|
2,133
|
|
|
5,058
|
|
|
—
|
|
|
—
|
|
|
7,191
|
|
||||||
Total other assets
|
|
—
|
|
|
1,141,206
|
|
|
554,049
|
|
|
41,282
|
|
|
(1,139,073
|
)
|
|
597,464
|
|
||||||
|
|
$
|
65,361
|
|
|
$
|
1,039,689
|
|
|
$
|
1,157,313
|
|
|
$
|
133,856
|
|
|
$
|
(1,042,098
|
)
|
|
$
|
1,354,121
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
|
||||||||||||||||||||||||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Accounts payable
|
|
$
|
—
|
|
|
$
|
372
|
|
|
$
|
76,606
|
|
|
$
|
16,896
|
|
|
$
|
—
|
|
|
$
|
93,874
|
|
Accrued expenses
|
|
—
|
|
|
40,376
|
|
|
119,062
|
|
|
21,779
|
|
|
—
|
|
|
181,217
|
|
||||||
Current portion of payable to related parties
pursuant to tax receivable agreement |
|
—
|
|
|
25,383
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25,383
|
|
||||||
Current portion of long-term debt
|
|
—
|
|
|
4,300
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,300
|
|
||||||
Total current liabilities
|
|
—
|
|
|
70,431
|
|
|
195,668
|
|
|
38,675
|
|
|
—
|
|
|
304,774
|
|
||||||
Deferred income taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,061
|
|
|
—
|
|
|
2,061
|
|
||||||
Intercompany note payable
|
|
—
|
|
|
—
|
|
|
1,017,283
|
|
|
121,790
|
|
|
(1,139,073
|
)
|
|
—
|
|
||||||
Long-term portion of payable to related parties
pursuant to tax receivable agreement |
|
—
|
|
|
54,336
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
54,336
|
|
||||||
Other long-term liabilities
|
|
—
|
|
|
6,556
|
|
|
72,228
|
|
|
5,800
|
|
|
—
|
|
|
84,584
|
|
||||||
Long-term debt
|
|
—
|
|
|
843,005
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
843,005
|
|
||||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Stockholders' Equity (Deficit):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Preferred stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Common stock
|
|
685
|
|
|
685
|
|
|
—
|
|
|
—
|
|
|
(685
|
)
|
|
685
|
|
||||||
Additional paid-in-capital
|
|
754,879
|
|
|
754,879
|
|
|
258,904
|
|
|
17,592
|
|
|
(1,031,375
|
)
|
|
754,879
|
|
||||||
Accumulated deficit
|
|
(659,661
|
)
|
|
(659,661
|
)
|
|
(371,088
|
)
|
|
(36,975
|
)
|
|
1,067,724
|
|
|
(659,661
|
)
|
||||||
Accumulated other comprehensive loss
|
|
(30,542
|
)
|
|
(30,542
|
)
|
|
(15,682
|
)
|
|
(15,087
|
)
|
|
61,311
|
|
|
(30,542
|
)
|
||||||
Total stockholders' equity (deficit)
|
|
65,361
|
|
|
65,361
|
|
|
(127,866
|
)
|
|
(34,470
|
)
|
|
96,975
|
|
|
65,361
|
|
||||||
|
|
$
|
65,361
|
|
|
$
|
1,039,689
|
|
|
$
|
1,157,313
|
|
|
$
|
133,856
|
|
|
$
|
(1,042,098
|
)
|
|
$
|
1,354,121
|
|
PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET
|
||||||||||||||||||||||||
As of December 31, 2016
|
||||||||||||||||||||||||
(Amounts in thousands)
|
|
Guarantor
|
|
Issuer
|
|
|
|
Non-
|
|
|
|
|
||||||||||||
|
|
Ply Gem
|
|
Ply Gem
|
|
Guarantor
|
|
Guarantor
|
|
Consolidating
|
|
|
||||||||||||
|
|
Holdings, Inc.
|
|
Industries, Inc.
|
|
Subsidiaries
|
|
Subsidiary
|
|
Adjustments
|
|
Consolidated
|
||||||||||||
ASSETS
|
|
|
||||||||||||||||||||||
Current Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
|
$
|
—
|
|
|
$
|
50,035
|
|
|
$
|
(10,918
|
)
|
|
$
|
12,480
|
|
|
$
|
—
|
|
|
$
|
51,597
|
|
Accounts receivable, net
|
|
—
|
|
|
—
|
|
|
189,983
|
|
|
19,936
|
|
|
—
|
|
|
209,919
|
|
||||||
Inventories:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Raw materials
|
|
—
|
|
|
—
|
|
|
63,829
|
|
|
5,810
|
|
|
—
|
|
|
69,639
|
|
||||||
Work in process
|
|
—
|
|
|
—
|
|
|
23,007
|
|
|
1,614
|
|
|
—
|
|
|
24,621
|
|
||||||
Finished goods
|
|
—
|
|
|
—
|
|
|
54,346
|
|
|
13,350
|
|
|
—
|
|
|
67,696
|
|
||||||
Total inventory
|
|
—
|
|
|
—
|
|
|
141,182
|
|
|
20,774
|
|
|
—
|
|
|
161,956
|
|
||||||
Prepaid expenses and other current assets
|
|
—
|
|
|
1,276
|
|
|
21,940
|
|
|
3,634
|
|
|
—
|
|
|
26,850
|
|
||||||
Total current assets
|
|
—
|
|
|
51,311
|
|
|
342,187
|
|
|
56,824
|
|
|
—
|
|
|
450,322
|
|
||||||
Investments in subsidiaries
|
|
4,106
|
|
|
(231,236
|
)
|
|
—
|
|
|
—
|
|
|
227,130
|
|
|
—
|
|
||||||
Property and Equipment, at cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Land
|
|
—
|
|
|
—
|
|
|
7,487
|
|
|
762
|
|
|
—
|
|
|
8,249
|
|
||||||
Buildings and improvements
|
|
—
|
|
|
510
|
|
|
63,000
|
|
|
4,441
|
|
|
—
|
|
|
67,951
|
|
||||||
Machinery and equipment
|
|
—
|
|
|
1,675
|
|
|
392,068
|
|
|
19,822
|
|
|
—
|
|
|
413,565
|
|
||||||
Total property and equipment
|
|
—
|
|
|
2,185
|
|
|
462,555
|
|
|
25,025
|
|
|
—
|
|
|
489,765
|
|
||||||
Less accumulated depreciation
|
|
—
|
|
|
(665
|
)
|
|
(312,759
|
)
|
|
(10,785
|
)
|
|
—
|
|
|
(324,209
|
)
|
||||||
Total property and equipment, net
|
|
—
|
|
|
1,520
|
|
|
149,796
|
|
|
14,240
|
|
|
—
|
|
|
165,556
|
|
||||||
Other Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Intangible assets, net
|
|
—
|
|
|
—
|
|
|
91,748
|
|
|
12,411
|
|
|
—
|
|
|
104,159
|
|
||||||
Goodwill
|
|
—
|
|
|
—
|
|
|
449,366
|
|
|
29,148
|
|
|
—
|
|
|
478,514
|
|
||||||
Deferred income taxes
|
|
—
|
|
|
—
|
|
|
50,347
|
|
|
—
|
|
|
—
|
|
|
50,347
|
|
||||||
Intercompany note receivable
|
|
—
|
|
|
1,135,073
|
|
|
—
|
|
|
—
|
|
|
(1,135,073
|
)
|
|
—
|
|
||||||
Other
|
|
—
|
|
|
3,925
|
|
|
4,918
|
|
|
—
|
|
|
—
|
|
|
8,843
|
|
||||||
Total other assets
|
|
—
|
|
|
1,138,998
|
|
|
596,379
|
|
|
41,559
|
|
|
(1,135,073
|
)
|
|
641,863
|
|
||||||
|
|
$
|
4,106
|
|
|
$
|
960,593
|
|
|
$
|
1,088,362
|
|
|
$
|
112,623
|
|
|
$
|
(907,943
|
)
|
|
$
|
1,257,741
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
|
||||||||||||||||||||||||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Accounts payable
|
|
$
|
—
|
|
|
$
|
377
|
|
|
$
|
64,206
|
|
|
$
|
10,815
|
|
|
$
|
—
|
|
|
$
|
75,398
|
|
Accrued expenses
|
|
—
|
|
|
29,812
|
|
|
124,723
|
|
|
14,480
|
|
|
—
|
|
|
169,015
|
|
||||||
Current portion of payable to related parties
pursuant to tax receivable agreement |
|
—
|
|
|
25,383
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25,383
|
|
||||||
Current portion of long-term debt
|
|
—
|
|
|
4,300
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,300
|
|
||||||
Total current liabilities
|
|
—
|
|
|
59,872
|
|
|
188,929
|
|
|
25,295
|
|
|
—
|
|
|
274,096
|
|
||||||
Deferred income taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,722
|
|
|
—
|
|
|
2,722
|
|
||||||
Intercompany note payable
|
|
—
|
|
|
—
|
|
|
1,026,657
|
|
|
108,416
|
|
|
(1,135,073
|
)
|
|
—
|
|
||||||
Long-term portion of payable to related parties
pursuant to tax receivable agreement |
|
—
|
|
|
54,336
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
54,336
|
|
||||||
Other long-term liabilities
|
|
—
|
|
|
6,193
|
|
|
74,835
|
|
|
5,367
|
|
|
—
|
|
|
86,395
|
|
||||||
Long-term debt
|
|
—
|
|
|
836,086
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
836,086
|
|
||||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Stockholders' Equity (Deficit):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Preferred stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Common stock
|
|
683
|
|
|
683
|
|
|
—
|
|
|
—
|
|
|
(683
|
)
|
|
683
|
|
||||||
Additional paid-in-capital
|
|
751,452
|
|
|
751,452
|
|
|
236,242
|
|
|
26,464
|
|
|
(1,014,158
|
)
|
|
751,452
|
|
||||||
Accumulated deficit
|
|
(714,737
|
)
|
|
(714,737
|
)
|
|
(422,622
|
)
|
|
(36,312
|
)
|
|
1,173,671
|
|
|
(714,737
|
)
|
||||||
Accumulated other comprehensive loss
|
|
(33,292
|
)
|
|
(33,292
|
)
|
|
(15,679
|
)
|
|
(19,329
|
)
|
|
68,300
|
|
|
(33,292
|
)
|
||||||
Total stockholders' equity (deficit)
|
|
4,106
|
|
|
4,106
|
|
|
(202,059
|
)
|
|
(29,177
|
)
|
|
227,130
|
|
|
4,106
|
|
||||||
|
|
$
|
4,106
|
|
|
$
|
960,593
|
|
|
$
|
1,088,362
|
|
|
$
|
112,623
|
|
|
$
|
(907,943
|
)
|
|
$
|
1,257,741
|
|
PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
|
||||||||||||||||||||||||
For the nine months ended September 30,
2017
|
||||||||||||||||||||||||
(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 income (loss)
|
|
$
|
53,756
|
|
|
$
|
53,756
|
|
|
$
|
51,534
|
|
|
$
|
(663
|
)
|
|
$
|
(104,627
|
)
|
|
$
|
53,756
|
|
Adjustments to reconcile net income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
to cash provided by (used in) operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Depreciation and amortization expense
|
|
—
|
|
|
204
|
|
|
34,388
|
|
|
5,200
|
|
|
—
|
|
|
39,792
|
|
||||||
Non-cash restructuring costs
|
|
—
|
|
|
—
|
|
|
1,198
|
|
|
—
|
|
|
—
|
|
|
1,198
|
|
||||||
Non-cash interest expense, net
|
|
—
|
|
|
10,595
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,595
|
|
||||||
Gain on foreign currency transactions
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,582
|
)
|
|
—
|
|
|
(1,582
|
)
|
||||||
Non-cash litigation expense
|
|
—
|
|
|
650
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
650
|
|
||||||
Stock based compensation
|
|
—
|
|
|
585
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
585
|
|
||||||
Deferred income taxes
|
|
—
|
|
|
—
|
|
|
31,182
|
|
|
(757
|
)
|
|
—
|
|
|
30,425
|
|
||||||
Increase in tax uncertainty,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
net of valuation allowance
|
|
—
|
|
|
—
|
|
|
202
|
|
|
—
|
|
|
—
|
|
|
202
|
|
||||||
Equity in subsidiaries' net income (loss)
|
|
(53,756
|
)
|
|
(50,871
|
)
|
|
—
|
|
|
—
|
|
|
104,627
|
|
|
—
|
|
||||||
Gain on sale of building
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,880
|
)
|
|
—
|
|
|
(1,880
|
)
|
||||||
Other
|
|
—
|
|
|
—
|
|
|
(75
|
)
|
|
—
|
|
|
—
|
|
|
(75
|
)
|
||||||
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Accounts receivable, net
|
|
—
|
|
|
—
|
|
|
(82,760
|
)
|
|
(15,181
|
)
|
|
—
|
|
|
(97,941
|
)
|
||||||
Inventories
|
|
—
|
|
|
—
|
|
|
(31,637
|
)
|
|
(2,526
|
)
|
|
—
|
|
|
(34,163
|
)
|
||||||
Prepaid expenses and other assets
|
|
—
|
|
|
(641
|
)
|
|
990
|
|
|
(453
|
)
|
|
—
|
|
|
(104
|
)
|
||||||
Accounts payable
|
|
—
|
|
|
(5
|
)
|
|
23,740
|
|
|
(5,020
|
)
|
|
—
|
|
|
18,715
|
|
||||||
Accrued expenses
|
|
—
|
|
|
(11,685
|
)
|
|
4,140
|
|
|
(5,900
|
)
|
|
—
|
|
|
(13,445
|
)
|
||||||
Cash payments on restructuring liabilities
|
|
—
|
|
|
—
|
|
|
(693
|
)
|
|
—
|
|
|
—
|
|
|
(693
|
)
|
||||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(237
|
)
|
|
—
|
|
|
(237
|
)
|
||||||
Net cash provided by (used in)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
operating activities
|
|
—
|
|
|
2,588
|
|
|
32,209
|
|
|
(28,999
|
)
|
|
—
|
|
|
5,798
|
|
||||||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Capital expenditures
|
|
—
|
|
|
(2,128
|
)
|
|
(24,696
|
)
|
|
(1,753
|
)
|
|
—
|
|
|
(28,577
|
)
|
||||||
Proceeds from sale of assets
|
|
—
|
|
|
—
|
|
|
80
|
|
|
2,359
|
|
|
—
|
|
|
2,439
|
|
||||||
Net cash provided by (used in)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
investing activities
|
|
—
|
|
|
(2,128
|
)
|
|
(24,616
|
)
|
|
606
|
|
|
—
|
|
|
(26,138
|
)
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Payments on long-term debt
|
|
—
|
|
|
(3,225
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,225
|
)
|
||||||
Payments to tax authority for employee
stock based compensation |
|
—
|
|
|
(1,186
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,186
|
)
|
||||||
Proceeds from exercises of employee stock options
|
|
—
|
|
|
745
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
745
|
|
||||||
Proceeds from intercompany
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
investment
|
|
—
|
|
|
(18,105
|
)
|
|
(8,907
|
)
|
|
27,012
|
|
|
—
|
|
|
—
|
|
||||||
Net cash provided by (used in)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
financing activities
|
|
—
|
|
|
(21,771
|
)
|
|
(8,907
|
)
|
|
27,012
|
|
|
—
|
|
|
(3,666
|
)
|
||||||
Impact of exchange rate movements on cash
|
|
—
|
|
|
—
|
|
|
—
|
|
|
806
|
|
|
—
|
|
|
806
|
|
||||||
Net decrease in cash and cash equivalents
|
|
—
|
|
|
(21,311
|
)
|
|
(1,314
|
)
|
|
(575
|
)
|
|
—
|
|
|
(23,200
|
)
|
||||||
Cash and cash equivalents at the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
beginning of the period
|
|
—
|
|
|
50,035
|
|
|
(10,918
|
)
|
|
12,480
|
|
|
—
|
|
|
51,597
|
|
||||||
Cash and cash equivalents at the end
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
of the period
|
|
$
|
—
|
|
|
$
|
28,724
|
|
|
$
|
(12,232
|
)
|
|
$
|
11,905
|
|
|
$
|
—
|
|
|
$
|
28,397
|
|
PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
|
||||||||||||||||||||||||
For the nine months ended October 1, 2016
|
||||||||||||||||||||||||
(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 income (loss)
|
|
$
|
68,824
|
|
|
$
|
68,824
|
|
|
$
|
142,865
|
|
|
$
|
(9,310
|
)
|
|
$
|
(202,379
|
)
|
|
$
|
68,824
|
|
Adjustments to reconcile net income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
to cash provided by (used in) operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Depreciation and amortization expense
|
|
—
|
|
|
117
|
|
|
37,271
|
|
|
5,078
|
|
|
—
|
|
|
42,466
|
|
||||||
Non-cash restructuring expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
491
|
|
|
—
|
|
|
491
|
|
||||||
Non-cash interest expense, net
|
|
—
|
|
|
10,143
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,143
|
|
||||||
Gain on foreign currency transactions
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(728
|
)
|
|
—
|
|
|
(728
|
)
|
||||||
Loss on modification or extinguishment of debt
|
|
—
|
|
|
4,650
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,650
|
|
||||||
Stock based compensation
|
|
—
|
|
|
808
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
808
|
|
||||||
Deferred income taxes
|
|
—
|
|
|
—
|
|
|
(52,908
|
)
|
|
(172
|
)
|
|
—
|
|
|
(53,080
|
)
|
||||||
Tax receivable agreement liability adjustment
|
|
—
|
|
|
60,606
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
60,606
|
|
||||||
Increase in tax uncertainty,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
net of valuation allowance
|
|
—
|
|
|
—
|
|
|
190
|
|
|
—
|
|
|
—
|
|
|
190
|
|
||||||
Equity in subsidiaries' net income (loss)
|
|
(68,824
|
)
|
|
(133,555
|
)
|
|
—
|
|
|
—
|
|
|
202,379
|
|
|
—
|
|
||||||
Other
|
|
—
|
|
|
—
|
|
|
(43
|
)
|
|
—
|
|
|
—
|
|
|
(43
|
)
|
||||||
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Accounts receivable, net
|
|
—
|
|
|
—
|
|
|
(83,042
|
)
|
|
(5,408
|
)
|
|
—
|
|
|
(88,450
|
)
|
||||||
Inventories
|
|
—
|
|
|
—
|
|
|
(17,538
|
)
|
|
145
|
|
|
—
|
|
|
(17,393
|
)
|
||||||
Prepaid expenses and other assets
|
|
—
|
|
|
(985
|
)
|
|
(1,734
|
)
|
|
538
|
|
|
—
|
|
|
(2,181
|
)
|
||||||
Accounts payable
|
|
—
|
|
|
9
|
|
|
14,062
|
|
|
1,835
|
|
|
—
|
|
|
15,906
|
|
||||||
Accrued expenses
|
|
—
|
|
|
(13,174
|
)
|
|
15,424
|
|
|
(4,183
|
)
|
|
—
|
|
|
(1,933
|
)
|
||||||
Cash payments on restructuring liabilities
|
|
—
|
|
|
—
|
|
|
(112
|
)
|
|
(491
|
)
|
|
—
|
|
|
(603
|
)
|
||||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
318
|
|
|
—
|
|
|
318
|
|
||||||
Net cash provided by (used in)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
operating activities
|
|
—
|
|
|
(2,557
|
)
|
|
54,435
|
|
|
(11,887
|
)
|
|
—
|
|
|
39,991
|
|
||||||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Capital expenditures
|
|
—
|
|
|
(1,262
|
)
|
|
(22,959
|
)
|
|
(2,193
|
)
|
|
—
|
|
|
(26,414
|
)
|
||||||
Proceeds from sale of assets
|
|
—
|
|
|
—
|
|
|
59
|
|
|
102
|
|
|
—
|
|
|
161
|
|
||||||
Net cash used in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
investing activities
|
|
—
|
|
|
(1,262
|
)
|
|
(22,900
|
)
|
|
(2,091
|
)
|
|
—
|
|
|
(26,253
|
)
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Payments on long-term debt
|
|
—
|
|
|
(63,225
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(63,225
|
)
|
||||||
Proceeds from exercises of employee stock options
|
|
—
|
|
|
689
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
689
|
|
||||||
Proceeds from intercompany
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
investment
|
|
—
|
|
|
34,262
|
|
|
(36,807
|
)
|
|
2,545
|
|
|
—
|
|
|
—
|
|
||||||
Net cash provided by (used in)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
financing activities
|
|
—
|
|
|
(28,274
|
)
|
|
(36,807
|
)
|
|
2,545
|
|
|
—
|
|
|
(62,536
|
)
|
||||||
Impact of exchange rate movement on cash
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,066
|
|
|
—
|
|
|
2,066
|
|
||||||
Net decrease in cash and cash equivalents
|
|
—
|
|
|
(32,093
|
)
|
|
(5,272
|
)
|
|
(9,367
|
)
|
|
—
|
|
|
(46,732
|
)
|
||||||
Cash and cash equivalents at the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
beginning of the period
|
|
—
|
|
|
94,692
|
|
|
(4,944
|
)
|
|
19,677
|
|
|
—
|
|
|
109,425
|
|
||||||
Cash and cash equivalents at the end
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
of the period
|
|
$
|
—
|
|
|
$
|
62,599
|
|
|
$
|
(10,216
|
)
|
|
$
|
10,310
|
|
|
$
|
—
|
|
|
$
|
62,693
|
|
|
|
For the three months ended
|
|
For the nine months ended
|
|
||||||||||||
(Amounts in thousands)
|
|
September 30, 2017
|
|
October 1, 2016
|
|
September 30, 2017
|
|
October 1, 2016
|
|
||||||||
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
||||||||
Net sales
|
|
|
|
|
|
|
|
|
|
||||||||
Siding, Fencing and Stone
|
|
$
|
278,179
|
|
|
$
|
258,924
|
|
|
$
|
732,609
|
|
|
$
|
679,711
|
|
|
Windows and Doors
|
|
286,484
|
|
|
271,468
|
|
|
806,836
|
|
|
769,840
|
|
|
||||
Operating earnings (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Siding, Fencing and Stone
|
|
48,127
|
|
|
54,853
|
|
|
115,529
|
|
|
126,531
|
|
|
||||
Windows and Doors
|
|
20,251
|
|
|
18,911
|
|
|
46,405
|
|
|
35,662
|
|
|
||||
Unallocated
|
|
(6,477
|
)
|
|
(5,755
|
)
|
|
(22,108
|
)
|
|
(22,426
|
)
|
|
||||
Foreign currency gain (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Siding, Fencing and Stone
|
|
75
|
|
|
58
|
|
|
318
|
|
|
261
|
|
|
||||
Windows and Doors
|
|
735
|
|
|
(169
|
)
|
|
1,264
|
|
|
467
|
|
|
||||
Interest income (expense), net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Siding, Fencing and Stone
|
|
10
|
|
|
6
|
|
|
20
|
|
|
16
|
|
|
||||
Windows and Doors
|
|
8
|
|
|
2
|
|
|
19
|
|
|
7
|
|
|
||||
Unallocated
|
|
(17,536
|
)
|
|
(17,813
|
)
|
|
(51,809
|
)
|
|
(55,035
|
)
|
|
||||
Income tax (provision) benefit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Unallocated
|
|
(17,659
|
)
|
|
49,128
|
|
|
(35,882
|
)
|
|
48,597
|
|
|
||||
Tax Receivable Agreement liability adjustment
|
|
|
|
|
|
|
|
|
|
||||||||
Unallocated
|
|
—
|
|
|
(42,215
|
)
|
|
—
|
|
|
(60,606
|
)
|
|
||||
Loss on modification or extinguishment of debt
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Unallocated
|
|
—
|
|
|
(2,251
|
)
|
|
—
|
|
|
(4,650
|
)
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
Net income
|
|
$
|
27,534
|
|
|
$
|
54,755
|
|
|
$
|
53,756
|
|
|
$
|
68,824
|
|
|
|
|
For the three months ended
|
||||||||||||
(Amounts in thousands)
|
|
September 30, 2017
|
|
October 1, 2016
|
||||||||||
|
|
(unaudited)
|
|
(unaudited)
|
||||||||||
Statement of operations data:
|
|
|
|
|
|
|
|
|
||||||
Net sales
|
|
$
|
278,179
|
|
|
100.0
|
%
|
|
$
|
258,924
|
|
|
100.0
|
%
|
Gross profit
|
|
71,779
|
|
|
25.8
|
%
|
|
80,760
|
|
|
31.2
|
%
|
||
SG&A expense
|
|
21,391
|
|
|
7.7
|
%
|
|
22,562
|
|
|
8.7
|
%
|
||
Amortization of intangible assets
|
|
2,261
|
|
|
0.8
|
%
|
|
3,345
|
|
|
1.3
|
%
|
||
Operating earnings
|
|
48,127
|
|
|
17.3
|
%
|
|
54,853
|
|
|
21.2
|
%
|
||
Currency transaction gain
|
|
75
|
|
|
—
|
%
|
|
58
|
|
|
—
|
%
|
|
|
For the nine months ended
|
||||||||||||
(Amounts in thousands)
|
|
September 30, 2017
|
|
October 1, 2016
|
||||||||||
|
|
(unaudited)
|
|
(unaudited)
|
||||||||||
Statement of operations data:
|
|
|
|
|
|
|
|
|
||||||
Net sales
|
|
$
|
732,609
|
|
|
100.0
|
%
|
|
$
|
679,711
|
|
|
100.0
|
%
|
Gross profit
|
|
190,773
|
|
|
26.0
|
%
|
|
204,771
|
|
|
30.1
|
%
|
||
SG&A expense
|
|
68,537
|
|
|
9.4
|
%
|
|
68,219
|
|
|
10.0
|
%
|
||
Amortization of intangible assets
|
|
6,707
|
|
|
0.9
|
%
|
|
10,021
|
|
|
1.5
|
%
|
||
Operating earnings
|
|
115,529
|
|
|
15.8
|
%
|
|
126,531
|
|
|
18.6
|
%
|
||
Currency transaction gain
|
|
318
|
|
|
—
|
%
|
|
261
|
|
|
—
|
%
|
|
|
For the three months ended
|
||||||||||||
(Amounts in thousands)
|
|
September 30, 2017
|
|
October 1, 2016
|
||||||||||
|
|
(unaudited)
|
|
(unaudited)
|
||||||||||
Statement of operations data:
|
|
|
|
|
|
|
|
|
||||||
Net sales
|
|
$
|
286,484
|
|
|
100.0
|
%
|
|
$
|
271,468
|
|
|
100.0
|
%
|
Gross profit
|
|
60,187
|
|
|
21.0
|
%
|
|
56,040
|
|
|
20.6
|
%
|
||
SG&A expense
|
|
36,856
|
|
|
12.9
|
%
|
|
34,045
|
|
|
12.5
|
%
|
||
Amortization of intangible assets
|
|
3,080
|
|
|
1.1
|
%
|
|
3,084
|
|
|
1.1
|
%
|
||
Operating earnings
|
|
20,251
|
|
|
7.1
|
%
|
|
18,911
|
|
|
7.0
|
%
|
||
Currency transaction gain (loss)
|
|
735
|
|
|
0.3
|
%
|
|
(169
|
)
|
|
(0.1
|
)%
|
|
|
For the nine months ended
|
||||||||||||
(Amounts in thousands)
|
|
September 30, 2017
|
|
October 1, 2016
|
||||||||||
|
|
(unaudited)
|
|
(unaudited)
|
||||||||||
Statement of operations data:
|
|
|
|
|
|
|
|
|
||||||
Net sales
|
|
$
|
806,836
|
|
|
100.0
|
%
|
|
$
|
769,840
|
|
|
100.0
|
%
|
Gross profit
|
|
167,606
|
|
|
20.8
|
%
|
|
154,019
|
|
|
20.0
|
%
|
||
SG&A expense
|
|
111,965
|
|
|
13.9
|
%
|
|
109,100
|
|
|
14.2
|
%
|
||
Amortization of intangible assets
|
|
9,236
|
|
|
1.1
|
%
|
|
9,257
|
|
|
1.2
|
%
|
||
Operating earnings
|
|
46,405
|
|
|
5.8
|
%
|
|
35,662
|
|
|
4.6
|
%
|
||
Currency transaction gain
|
|
1,264
|
|
|
0.2
|
%
|
|
467
|
|
|
0.1
|
%
|
|
|
For the three months ended
|
||||||
(Amounts in thousands)
|
|
September 30, 2017
|
|
October 1, 2016
|
||||
|
|
(unaudited)
|
|
(unaudited)
|
||||
Statement of operations data:
|
|
|
|
|
||||
SG&A expense
|
|
$
|
(6,477
|
)
|
|
$
|
(5,755
|
)
|
Operating loss
|
|
(6,477
|
)
|
|
(5,755
|
)
|
||
Interest expense
|
|
(17,545
|
)
|
|
(17,815
|
)
|
||
Interest income
|
|
9
|
|
|
2
|
|
||
Loss on modification or extinguishment of debt
|
|
—
|
|
|
(2,251
|
)
|
||
Tax Receivable Agreement liability adjustment
|
|
—
|
|
|
(42,215
|
)
|
||
Income tax (provision) benefit for income taxes
|
|
$
|
(17,659
|
)
|
|
$
|
49,128
|
|
|
|
For the nine months ended
|
||||||
(Amounts in thousands)
|
|
September 30, 2017
|
|
October 1, 2016
|
||||
|
|
(unaudited)
|
|
(unaudited)
|
||||
Statement of operations data:
|
|
|
|
|
||||
SG&A expense
|
|
$
|
(22,108
|
)
|
|
$
|
(22,426
|
)
|
Operating loss
|
|
(22,108
|
)
|
|
(22,426
|
)
|
||
Interest expense
|
|
(51,830
|
)
|
|
(55,040
|
)
|
||
Interest income
|
|
21
|
|
|
5
|
|
||
Loss on modification or extinguishment of debt
|
|
—
|
|
|
(4,650
|
)
|
||
Tax receivable agreement liability adjustment
|
|
—
|
|
|
(60,606
|
)
|
||
Income tax (provision) benefit for income taxes
|
|
$
|
(35,882
|
)
|
|
$
|
48,597
|
|
(Amounts in thousands)
|
|
For the three months ended
|
|
For the nine months ended
|
||||||||||||
|
|
September 30, 2017
|
|
October 1, 2016
|
|
September 30, 2017
|
|
October 1, 2016
|
||||||||
Loss on modification of debt:
|
|
|
|
|
|
|
|
|
||||||||
Term Loan Facility unamortized discount
|
|
$
|
—
|
|
|
$
|
1,797
|
|
|
$
|
—
|
|
|
$
|
3,712
|
|
Term Loan Facility unamortized debt issuance costs
|
|
—
|
|
|
454
|
|
|
—
|
|
|
938
|
|
||||
Total loss on modification or extinguishment of debt
|
|
$
|
—
|
|
|
$
|
2,251
|
|
|
$
|
—
|
|
|
$
|
4,650
|
|
•
|
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
Chairman of the Board |
By:
|
/s/ Shawn K. Poe
|
|
Shawn K. Poe
|
|
Executive Vice President, Chief Financial Officer, and Secretary
|
By:
|
____________________________________________
|
Name:
|
____________________________________________
|
Title:
|
____________________________________________
|
Date:
|
_____________________________________________
|
(C)
|
“
Performance Criteria
”: [______________]
|
By:
|
____________________________________________
|
Name:
|
____________________________________________
|
Title:
|
____________________________________________
|
Date:
|
_____________________________________________
|
|
/s/ Gary E. Robinette
|
Name:
|
Gary E. Robinette
|
Title:
|
President, Chief Executive Officer, and
Chairman of the Board |
|
/s/ Shawn K. Poe
|
Name:
|
Shawn K. Poe
|
Title:
|
Executive Vice President, Chief Financial Officer and Secretary
|
Date:
|
November 6, 2017
|
/s/ Gary E. Robinette
|
|
|
Gary E. Robinette
|
|
|
President, Chief Executive Officer, and Chairman of the Board
|
Date:
|
November 6, 2017
|
/s/ Shawn K. Poe
|
|
|
Shawn K. Poe
|
|
|
Executive Vice President, Chief Financial Officer, and Secretary
|