PGTI - Earnings call transcript Q4 2019

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Operator

Ladies and gentlemen, good day and welcome to the PGT Innovations Incorporated fourth quarter 2019 earnings call. Today's conference is being recorded. After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]

I would now like to turn the conference over to PGT Innovations' Chief Financial Officer, Sherri Baker. ahead. go Please

Sherri Baker

Good us operator. and you thank Thank today's morning call. joining on for you, everyone

On section fourth be and the the today's earnings the year the discussion. will on results available slide press you Investors XXXX website. is posted Company's release for of presentation the This we replay with to well webcast will our as quarter have full website, and as Company's accompany find recorded being

that is to prepared as contain remarks, to with statement please in actual This which could differ Before the materially. XXXX we our statements brief statutory the attention the a well disclosure Today's forward-looking Slide to Company's cause your filings as the begin the about statements risks, the and of X guidance remarks our that including factors may forward-looking results statements. disclaimer outlook related on of included in direct disclaimer, involve included forward-looking statements, SEC. press presentation the release summary is Company's other uncertainties and disclaimers

reconciliation prior directly results tables present X appendix included attached to Additionally, report release that in help the we earnings for we and non-GAAP comparison the additional measures, also the comparable of which facilitate GAAP of note measures Slide presentation. you believe A investors most should performance. provide on to in using the information and is to the slide

remarks. Jackson. and over available Jeff call will CEO I for hand to I Innovations' questions. After prepared Jeff am your now remarks, to joined by today will opening take President, our we be PGT the

Jeff Jackson

thank you everyone Thank you, joining for and Sherri, us and morning today. good

new overview morning, give the material I PGT story. of amount I each our those who plan as Innovations' fair but for an strategic would are you do like of a to cover to quarter, have this to of We

our customers. strategic shareholders, Slide will believe to as we for as create against our value our we list strive that On and well X pillars four execute we

pillar at deliver first customers our is who are committing Our on products to focus exceptional services. of our center and the and maintaining our business

our requires long-term third second expected attract our will capital success long-term is improvement addresses operational the people. cash to serve. demand across markets achieved in business A our we flow. certainly investing is accomplished the pillar And employee We Our pillar generated through core strong which facilities. operations our our belief in manufacturing increases and in best from automation free our we allocation strive this best to pillar and fourth of continuous our strategic talent, that maintain maintaining increased with efficiencies meet

We are very excited completed the Window purchase to NewSouth recently of Solutions.

priorities and reinvesting NewSouth's market down driving to debt, our all believe may of is capital network dealer We grow shareholder us complementary loyalty value. continually making customer the or brands. in assess direct-to-consumer with long-term continue we our across the business, our help existing to of portfolio goal channel will include acquisitions our which paying

Slide acquisition please Solutions, recently several strategic to Window X. I expect our which to like to would turn of completed benefits. review Next we deliver NewSouth

in footprint geographic its showrooms our one Carolina. eight expands South First with retail Florida NewSouth and Charleston, throughout

Expansion showrooms. Additionally, such consisting our Houston investment primarily as capital we NewSouth require store have plans locations minimal New Orleans least areas as diversification in part to outside of and overall coastal expand strategy. of should Florida, retail retail of stores of

support scale into expansion manufacturing Florida. adjacent NewSouth facility to has production capacity to markets Our to

future And in of with through the combined PGT NewSouth forward our cost we Innovations, should to Going as efficiencies. the help NewSouth procurement. its expertise operational input realize improve expect manufacturing synergies part

our lower we target directly price with By are our projects existing at services. primarily consumer, typical that targeted what to our incremental generates with replacement proven a a dealer the the homes to that NewSouth network to NewSouth marketing the smaller to than traditional enter toward sales enables channel us than direct-to-consumer point dealer sales distribution model believe customers. are

the the quarter of And which has a legacy momentum quarter revised which performance to growth. the X% for carried quarter XXXX in now top gain and pipeline reported We repair fourth XXXX, of the the of forward In compared by is December turning our business the at guidance X. driven our of into positive future results indicator end leading in notable in that XXXX. fourth revenue on grew the business legacy quarter, to remodeling prior-year Slide

business Western new fourth despite in an Our grew unit of quarter prior-year in and In core to prior-year increased X% compared emerging in to markets. the corporate expansion sales quarter, builder the our business construction. the decline reflecting expected quarter XXXX X% compared continued

saw In primarily driven market in in from custom of product Texas from quarter the quarter. from quarter, by saw the increasing permits XXXX sequentially last we most the headwinds housing products with the in California we trend X% regions. recovery QX the and discussed XX% prior-year sales mix we Arizona for fourth faced increases and Continuing nearly

placed of growth X.X% improving We to are seeing on XXXX. believe building going have indicates compared In sales momentum sales in an production fourth builder Window into through increase production XX% focus growth. decline the We seeing believe after first months the Western strong of sales XXXX. quarter, the prior-year trend to a nine driving which we builder we back we quarter, on strong saw a

adjusted the primarily unfavorable And margins finally, sales XXXX. the of an lower declined fourth and quarter as driven compared across from quarter, mix by XX.X% to of product portfolio prior-year EBITDA XXXX

some macroeconomic more strengths detail. XXXX to emphasize market guidance are sales growth new X% result thoughts please upon turn orders market our We the seen and saw strategic of new X% business, remodeling and in volume will the and year remodeling initiatives. to Based want looking momentum growth are the I to Florida above year-over-year and growth realize we on implementing this forward up behind assumptions Sherri key market a discuss year-to-date, our Now exiting focused X we've as this in the we which expect of the I'll in In a in initiatives. and pipeline repair our legacy far expecting so repair Slide and by number that we delivering for outlook continuing XXXX. into our over to quarter. of order XXXX is full share

we times. are grows market We capacity X% market estimating in construction our sales have a to than X% to upon during new based If grow our price market the with points. addressable into while lead attractive the XXXX market growth the channel maintaining estimates, the will faster our

to seen February in agreements activity the of in we've January builder business exclusive increase In continues signed XXXX. builders and legacy and addition, benefit from our with overall large

large multi-family to which in signs key area. job above corporate and we single and continued have in excess as a accelerate strength sales development expect XXX,XXX focus define resources market both We seen of generate commercial driving have adoption. of in we product growth added Within on projects builder in this through product, growth and projects, initiatives to

currently grow recent of brands. in our are opportunities acquisition legacy light in in this to our segment We evaluating to current addition PGTI

project an XXXX of We second projects are the pipeline uptick will marketplace. upon half based volumes in the in large that the optimistic of in large we see

new moving plans sales unit Western our division Walls about wall in to Skye a new business opening and featuring glass by expand the excited with called are we our our Additionally, repair remodeling the showrooms Skye products year, product this launching markets recognition. we've dealers in XX Vegas primarily lines. Las Angeles has Los dedicated to selling Walls where strong added Since Phoenix, Western brand earlier and

XXXX. in Skye Los second its in first will Angeles be Additionally the quarter Walls opening factory of store direct

strategy over to call the our leader overarching like take Sherri, remind in turning Before to a national to I window the door become premium to a moment you and of would markets.

expanded of well as include product lines ago, California. growing extended a Systems acquisition states and in Texas, over Window the a Arizona, our footprint Western as year markets With destination little Nevada, including our we to

to continue While well region key the Florida our non-Florida East along Gulf growth and in Western our Coast. as as remains of pursue profitable market, portion the Coast we

Now showroom within and openings. of add direct-to-consumer coastal both able the southern states channel, the we with are distribution to with of addition feature new state the Florida along NewSouth,

certainly incremental model has by within outside to on and of driver hurricane growth footprint While we existing our a demand, strategy a of long-term channels activity organic expand and been through base to drive execute expect our traditional advertising of In developing this creative of support we as internal are NewSouth's a objective, well through marketing proven our further channels. generation. mix for awareness as and lead team utilizing digital to drive

core To our dealer we've factors forecasted will ordering base summarize, growth in our we positive in we and to selling macroeconomic and markets our XXXX expect initiatives the product achieve expand our seen offerings. further upon believe based year-to-date, trends that

expect geographic channel sales execute diversification. of a and We strategy product to

generation lead build to and the We improve are in channels. tools our also and brands NewSouth across marketing acquired leveraging and direct-to-consumer technology experience, presence all our space our from capabilities

detail. call would like And to go the over Sherri in the that, to with more over Sherri? I turn to quarter

Sherri Baker

Jeff. you, Thank

turning to on Now give to more our results. X Slide detail

For earlier, emerging in mentioned continued increased business reported core prior-year and Western legacy an better our sales the unit in X% the reflecting Jeff compared to compared million, quarter, our than of reflecting In XX% as business we decline markets. quarter expectations. $XXX Western's prior-year our quarter, expansion and net the to sales

business primarily and XXXX. Windows a prior-year of decrease both sales, from product positive at of unfavorable Gross to in point quarter. million, compared prior-year the driven compared toward a margin indications business moving of an quarter basis profit $X.X for normalized XXX was legacy the in trend Western a XXXX million Early both decrease our as in XX.X% mix show across a was the by The $XX Gross mix units. to is XXXX more decrease quarter.

and primarily lower to $XX.X or margin to cost. decreased primarily sales. EBITDA quarter compared and million, of EBITDA the due XX.X% of in mix compared the higher driven or benefit for to million margin unfavorable a Selling, employee was for administrative Adjusted was quarter prior-year incentive $XX.X EBITDA general sales of by expenses The million million compensation. the $X prior-year XX.X% product quarter decline to adjusted of $XX

at the quarter per share rate or estimates. the $XX.X effective $X.X Our share reported in tax diluted quarter line million per compared or $X.XX our diluted GAAP to the came We $X.XX in net quarter for of XXXX. with XX.X% in million for of income fourth

slightly to year million a including for $XXX in $X.XX we million the XXXX September Western XX.X% million earnings from was of XXXX. shares sales shares of additional the Turning increased X.X% as We of sales. XX% Weighted average Adjusted accretion a or per diluted by primarily Window full margin X. margin share $XXX result primarily for Gross million grew sales X in Systems. for Adjusted issued Systems. the XXXX of contribution of achieved compared Window $X.XX from as year. Western now gross to year EBITDA XXXX to $XXX was a result Slide prior

Innovations' results range $XX year in the PGT in its of we million achieved included $XX and NewSouth posted forecasted Additionally, sales announcement our of that a shared not in while strong XXXX to acquisition. December million

Slide let's the the slightly to ended now sheet from with highlights. We down previous quarter. net review $XXX our balance million, Turning debt XX, million in of $XXX quarter

August completion of XXXX. to maintained senior add on We $XXX notes $XX As to this we and basis, priority on the leverage which adjusted were in an X.X be a we track after After a due for aggregate approximately quarter, reducing netted acquisition million historically the record net of XX continue proven of ratio an to have of amount a XXXX senior the times. year-end, million issued of of principal Company's will all-cash XXXX. us notes debt in of XX-month issued that EBITDA fourth trailing notes

review On Slide priorities. allocation our XX, let's capital

The future and generate value. drive projects allocation to shareholder capital is expected and investment for first priority growth internal

sheet. reduction balance second and maintaining debt a is Our strong priority commitment our to

We net maintain a X expect X range conservative debt with to to to profile times of EBITDA. a leverage times

into and priority platform is Our or other give such capital or to markets generate would our expand strong that footprint margins. acquisitions channels a expanding as new that geographies us we third that NewSouth building and products for strategic for expect

successful the company completion Xst, Western we of focus the integration Window our of of Given NewSouth and February that short primary on term the will the for integration expect ongoing be the our completing acquisition Systems. recent

our finally, And priority capital opportunistic is of repurchase shares. fourth allocation the

to plan share no However, debt and committed ahead reduction were of repurchases made the to we stock during fourth quarter repurchases. remain

for assumptions on guidance XX, as the Using well are assumptions the we macro shown following quarterly reviewed as Jeff Slide providing the XXXX. that

$XXX For PGT now million, $X.XX. in following and sales expects ranges. million finish diluted to income of $XXX $X.XX to of adjusted adjusted $XXX the XXXX year million net million full share the $XXX to of Net per to EBITDA

falls XXXX that XXrd for the will our NewSouth. estimates in week year point have to that fiscal note sales that the modest Additionally, Also, out for please I guidance includes contained want year. a a first to initial quarter, which benefit

sheet estimate will on than was balance are modeling incentive Some million for earnings necessary in still future that guidance in due are opening intangibles, we XXXX lower a than items, compensation total XXXX lower if in process and update performance including $X XXXX. planned what call. We to our we

an advertising selling in $X to that initiatives for we are of expense invest support with XXXX $X awareness Additionally, planned drive XXXX expecting million to discussed earlier. million continue to to Jeff brand robust the as quarter compared spend first the in additional of and

have estimates your slide modeling on this guidance of our We XXXX number assumptions included a in embedded for reference.

call over the to now some would thoughts. Jeff? closing for Jeff to And like back I turn

Jeff Jackson

Thanks, Sherri.

Innovations' with conclude will moving investment XX. thesis Q&A, Before on Slide I to PGT

leader which national in with brands compete. a are categories we we strong the in growing First,

are in our talent. and as retaining our by in we and innovators. acquiring to product intend investing brands leaders We advantage the industry R&D, Second, maintain hiring best

a in believe to shareholders. that we improving and on product we execute our customers plan growth channels. our striving believe our margin will And we both create drive portfolio to the ongoing on we capture positions to strategy repair are Third, operational finally, value continue and for us term. that Fourth, remodeling new focus long expansion over and construction efficiencies long-term profitable will

new repair given in a a markets home California. year, XXXX achieved remodeling We in our challenging market proved well in headwinds experienced starts XX% to organic second of as XXXX. growth in be decrease as largest especially our our and

X,XXX adjusted However, achieving driving and our million dedicated PGT Innovation was $XXX our our total of and plus That absolute terms year ever. members, sales of million not would value. EBITDA $XXX possible customers exceptional first in team service biggest shareholder be delivering putting without

to to the like the portion. would the Q&A I begin time, over this operator call conference Operator? to At turn call

Operator

you. Thank Ng Phillip with we And [Operator question from take Jeffries. will Instructions] our first

Phillip Ng

guys. Hi

seems growth help out? quarter. us you since stand frame? last of in Your shape the changed outlook time that for standpoint? growth of year a What's can that from noticeably more Any markets think upbeat And the

Jeff Jackson

the the Yeah, of thus of was the in in is better then that It market. we it the legacy than the experienced I biggest fourth is growth continuing a more definitely ended January as and and far R&R two that it gave and think year quarter potential February. into Florida changes into trend we into us insight

another into and grow. think and was that is outpaced which the it kept volume -- we've significant again, better seen, I the of closed program, continue the Western sales as Actually Their what we trend was January the has year the mix trend XXXX. has in to Western. in same more February,

construction those combine the and we you two starts of Florida. in State new plus, be home to So honest, have

impressive Our has program year corporate builder far so delivered this growth.

optimism So see I the where early so here. XXXX those, far think you you combine that's in

Phillip Ng

think, could back half in the positively be you stronger, little about Jeff, but a color think we of mentioned XQ? it. inflect the might I year? Any how shape Got to the

Jeff Jackson

-- I think a solid to quarter. Yeah, we're mean have I going first

positive made signs. mix are in at and the noticeable made operational unit we Western of Southeastern that legacy kind you starting show business brands business Western the think will, versus quarter. if to improvements unit, we've changes I unit some sequential both in And from standpoint, the an the business

I So improvement. see think will sequentially an you

point, for For us. the XXXX positive. At strong has we're Sherri? year, this again, started off

Sherri Baker

something seasonalization. execute articulated, what base, some could expect at And operational the throughout you've more use I still as year as call so continuing continuing we to to year. I ramp would Western then, look are initiatives that think a Jeff to at that. maybe are to up I you XXXX follow the closer would is that normal a

across So the it's But I expect quarters. think two. a would the cadence combination we of normalized more the

Phillip Ng

Got What's is margin it that, obviously organic you. just from might just investments lower guidance be growth you flattish mix our a on a your standpoint of math improving. more NewSouth just margin Sherri, Is think on some And EBITDA flattish but or about, I business? a maybe environment? the implied margins talked fairly driving your

Sherri Baker

it's a all combination Yeah, of those. actually of

remarks to that things. we incentive million compensation the to payout that cash $X on So we our of two the million, when year-over-year actually footnote the do was prepared the part at actually presentation of NewSouth have We well. increase of tune highlighted include related end $X of agreement the a is as the

So that. we have

versus XXXX. of of be $X XXXX. saw million the We will have in making half first that we we We little incremental actually an investments spent very what in marketing

the year actually of And amount you first million so some the half then exactly hit of last see mix $X said, pieces what of million product within that continued that you'll then and $X and NewSouth. of

we're does NewSouth new margin this to also have they stores which investments dilution when we too planning and have incremental some are opening do year.

of So all the it's in is those to with show itself offsets. those business of just total, margin a other combination but EBITDA expecting improvement legacy

Phillip Ng

really color. That's it. Got helpful

on for your one Florida. strategy your Just give talked diversifying market an business New then made the about branching you of of of does key you process? accelerate fit Can market Jeff, the the one us update on of me. that some West? that R&R at perhaps strategy South into And last acquisition into progress and your you've outside out this how kind legacy outside Western

Jeff Jackson

great Yeah, question.

remarks, I in In for as of mentioned open we're in going terms actually store our retail made, up Western the to had progress we've first QX.

the up Walls we XX going since Skye brand dealers set the Walls and R&R Skye in introducing new So portfolio. the direct with we're have is market there

builder the Western of product bigger which doesn't market. with starting we're out suppliers, good well some if headwinds. couple R&R make target as in to So the that would will, you west also suppliers We're negotiations carry a

if store that's They with Pensacola going in just will. to be going quickly dependent, you Houston, store. be next For NewSouth, store is followed And New Orleans. the Texas, opened very a to again

of there, think we're if excited. terms So expanding in very you

In to little will going be at well as dilution I that side the our operational our terms add And positive. NewSouth. bit. to dilutive, performance going actually time time, of of we're plant, the that margin be procurement terms savings to case months out, just expect we -- over again operating XX we've the as but a drag, at NewSouth PGT be employ that as synergy from It execution. at both will and we'll proven you're be again see over we implement What think go away in don't

So the expansion plans for aggressive. NewSouth are

going other regions the coming We excited outside East opportunity Coast overall will be the years State into just and of Florida of R&R we're about the of of there.

Operator

take J.P. will question Rehaut with our next Morgan. We from Michael

Maggie Wellborn

Maggie Hey, is on actually this for Mike.

First, margins. to question on the NewSouth last follow wanted up about I

You could be going But were said XX they how I more dilutive a in you that NewSouth's gross margin compared be little wondering was the of to business. to legacy months. the if SG&A maybe and specific on bit kind next profiles

Sherri Baker

I'll to that. take happy be Yeah,

think a would a talked have vertically are the side, the higher currently higher higher slightly about. because they integrated, does So flip they them retail the legacy both but SG&A side, just they as you a of consider they business of Clearly sales. include on they have percent also that because Jeff that do synergies than have also I gross margin, the not

margin within costs and we that be to So most up within expect COGS. gross which and those of pre-synergies, primarily likely be primarily showing would

period that a would think in new they're when stores. I it mind And about that way. highlight you I piece is then to keep the their ramp-up So have last is opening there also would

rate say run call Their it, historical are our stores So to once after, margins. actually their months. similar new to I'd very retail are PGT margins XX normal hit, XX they

be, that would three you. would call those I things So think, I out for the

Maggie Wellborn

thank And there of I investment expecting making. more XQ. guess I you flow really that start about be increased you Okay, you and the XQ said think in would talked to that you. investments In to then promotional benefits some through in the were last quarter but XQ, some you efforts began

kind is expected maybe you market you or better if tracking. update So Is could an as kind now that bit impact I wondering improved? it to give of the of little a was that how has

Sherri Baker

No, actually -- great I question.

both it think what we're in impacted So in us QX and I QX. seeing

what that the our So partially why for better particularly those we I legacy we business. QX, marketing in expected are and initially promotional we that our made made investments investments think we performed than

in We're we're also we're So to pipeline QX. growing that. continue see pleased see that is pleased to and that seeing that

So for positive seeing I think that. we are that benefits

synergies quite also a We selling trajectory. been marketing to invest those within thus marketing of that initiatives to requiring lot the that at investment, time the talking we the seeing about amount a plan some bit have Jeff are continue payback And the we're and the far. space spent continue to very pleased lift but with, of that in place. of Clearly least in we've

Jeff Jackson

we going I make to would year controlled we're And the mentioned a on just and Yeah. investment. spend, add marketing investment that's obviously this an

So of the -- majority here we our hurricane-driven. are and in Florida is business is

hurricane we're So, of some of dollars more those spend of targeted get a to, audiences benefits for the our we etc. product, if more likely again, instance, to

sales way turning dealer benefits dealer the if just too. the a hurricane marketing leads both get to local are to again all promotions advising PGT happens lead the So the or actual through closed and drive of into for for current tracking dealers, with our hit out areas to of those be our product. that Again, to legacy brands base the -- network, tool our generation our public turning going our expanding key investments

Maggie Wellborn

legacy for And squeeze to use there if I kind can it. products one plans legacy any infrastructure the sell in new that the in, of products? retail just NewSouth more showrooms, Got are

Jeff Jackson

our to will be legacy that's going benefit them more not was similar through But will advertising NewSouth state direct. they've our benefit for are brands only all in dealer a tool to be what to very lead we're brands legacy going to just been PGT that networks. that to channels. keep -- for PGT here go an only separate in of based TV we've in trying brand again at developing The and really brands we'll we're we're NewSouth to of importantly generation No, an a all, not are from terms that's and dealer more that continue implemented our And that robust way then on. the we'll use but outside the Texas. brand, to done, excited those is the diversify Florida incredible example penetrate what market up to Houston that we of what more

we'll East Texas. NewSouth So brand and that to the to Coast use grow outside the all the state of way

Operator

We Keith next our question will from Hughes with take SunTrust.

Keith Hughes

Thank you.

up remarks, that’s say fourth? So fourth in the at like and prepared EBIT the quarter. revenue in What Western I’d was the -- Western X%. in the look does

Sherri Baker

EBIT, the custom think improvements what the really was it running more production builder mix. QX, because higher at so primarily saw in say, similar January. their they December really to were coming a started still happening The into you I end, I'd in tail call

was with some close at have similar They a lower offsets higher SG&A. offset rate be would but margins. within they a So scrap did to

So that somewhat are QX we to to the improve process improvements on making that both and currently in and throughout materials continue improved have in QX. expect they those labor are

Jeff Jackson

the XX about more we won't Yeah. products one making we've Keith XX, speak did people. labor less to most. We're because with the seen especially I basically that's than

different new and currently well. and products going ever but actually implemented efficiency they're -- we're is made again to how of process that implementing the So is longer initiatives going around take there. continuing a we've are Materials to drive because the as materials tracked little and

Keith Hughes

wide, was there The makeup I of quarter. literally the in mix market. was hits trade the enterprise the mix What any -- discounting in that was the or assume just was that? that reported down

Sherri Baker

any -- it to we what the were trade both seeing that had the we down Yeah, been wouldn't been year-over-year, were what it no, No, mix have expecting. construction dissimilar not and we was was new R&R down? expecting

So down thing similar exactly than mix. just similar that. same the no very production dollar. the Western, on higher And custom trade for mix was It

Jeff Jackson

quarter. improve did production builder again fourth the Although in

Sherri Baker

At the end.

Jeff Jackson

end trend very production the into at that -- and XXXX margin. X.X% higher continuing is and About trended builder is a portion that

we that So to expect it's change -- the quarter. in first actually mix

Keith Hughes

Okay.

margin production custom than your is business? So the builder higher

Jeff Jackson

margins. the Yes, is [Indiscernible] higher Western volume for programs

Keith Hughes

Okay. Yeah.

Jeff Jackson

was. it Yes,

Keith Hughes

you. Thank Thank you. Okay.

Operator

take We Raymond will our with Joshua question next Wilson James. from

Joshua Wilson

the taking for Jeff in the morning, questions. and Sherri. NewSouth quantify in Window you on sales dollars Thanks specifically Good and guidance? quarter. my Could the you're for Congratulations assuming EBITDA

Jeff Jackson

January obviously, Xst. We are still NewSouth closed -- we just

put in that shown and the guidance a based the consistent thought terms of. that we what was we acquisition before with in sales of plan, off So model we've we

affect we're processes of between initiatives in other accounting, purchase categorizing, SG&A and the margin still will, So the the finalizing which gross you expenses early various and if will amortization.

lot a there. is there So on still going

has So what will, in we Sherri and saw ranges model, the the we the guidance are discussed basically which what used was in what our is that the if model, margins you acquisition again -- was it?

Sherri Baker

Mid teens.

Jeff Jackson

pre-synergy, that's XX%- in mind. just Again but that -- something. Mid keep

Joshua Wilson

announced said run synergies. what still the initially Got in $X do you point I when expectation and you And million rate? you Is that believe at that it. that hit

Jeff Jackson

of back is Yes in we half hit it run rate XXXX. the and that should

Joshua Wilson

go -- Got it. And then in ahead. terms of

Jeff Jackson

[indiscernible] In the back half of XXXX

Joshua Wilson

marketing of in talked is investments some of going that segment most of Okay. And the going or the then Western? the Southeast SG&A spend about, that you into terms to

Sherri Baker

The up legacy into business The new the across is the is slight business Walls particularly earlier. which incremental marketing primarily. incentive going talked about that in support of R&R units. is There division a is compensation Jeff step in Skye marketing both

Joshua Wilson

one then at the what fourth quarter? end was last the Could me. backlog Okay. you of your And quantify for

Sherri Baker

including of total Western. million $XX PGTI was across It all Yes. in

Operator

Alex Riley our question will from with take FBR. And B. we next Rygiel

Alex Rygiel

for for and Thank questions you. XXXX? of interest Any my expense have Most you. Thank ones. XXXX been CapEx short answered guidance two quick guidance but for

Sherri Baker

at we And be expect what have on would assumptions. presentation I find $XX we with X% any Yeah, of XX those along can say expense of the we also is typically of expecting are to and the interest modeling done consistent before sales, CapEx with of which you rest Page million. our

Operator

And for to over the turn closing I would remarks. conference any to Sherri concludes back session. question-and-answer this our Baker like

Sherri Baker

as always, and of for day. interest we rest in Yes, a Innovations call PGT very Thanks and joining today thank us you much. your have all great appreciate you your continued on hope the

Operator

gentlemen, for concluded. you and Ladies now We the conference attending is today's thank presentation.

PGT Innovations (PGTI) 25 Feb 202019 Q4 Earnings call transcript