PGTI - Earnings call transcript Q3 2020

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Operator

Good morning, and welcome to PGT Innovation's Third Quarter 2020 Earnings Conference Call. [Operator instructions] I would now like to turn the conference over to PGT Innovation's Chief Financial Officer, Sherri Baker. Please go ahead.

Sherri Baker

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

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

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

appendix now I remarks, for Jeff we release will questions. and Jeff call I earnings today remarks. prepared our your Innovations also the on help the joined facilitate non-GAAP additional present the to is by take will am directly X, investors Additionally, comparable the Slide believe for be the to of to PGT in in over of the information GAAP note opening you After prior presentation. reconciliation which that we performance. slide included measures, to President, CEO Jackson. and comparison results hand tables and most provide using to attached report available we A measures should

Jeff Jackson

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

I'm in to of the I'd challenging, like very team operating complex their be unpredictable what continues discussion business the for a of note to in getting efforts proud and environment. Before to the results, that

up by health employees communities. our and taking dedication and protecting safety their always shown Our our and our on to spirit The other. of exemplary, backlog. customers I thank taking been each the focus increasing, flow as and primary and for care families will and Order want personal is and stepping employees of be has of our care is them

it's to protocols try adhering output We to capacity at our X. by while create us prevent strategic important safety. transmission the while jeopardizing execution increase our our to guides enhanced results have at production consumer customers. We our believe important for our to discussion our to think we safety This been reviewing framework increase seek steadily as allowing COVID-XX to Each serving Slide without shareholders on shown I demand working of responsibly are safety value to protocols to accommodate effective quarter, begin these pillars long-term facilities.

who business, pillar on ultimately to the our are of in customers first innovation: recognition center sales focus turn our our which is maintaining loyalty drives and leads growth. brand Our customer-centric at and

time provide sales has Our market people innovative R&R driving market increased are of light into us and that strategy in demand the now in further is enhance homes. insights expectancy the into customer our the spending their to future enabled

to to company continually for order term. succeed dedicated over highlights long set skill pillar attract second right Our in retain need the with our our the employees and

cares our to about to every labor market. capacity look we and knowing actively come strive work company employees culture that tight As family. recruiting We are and appreciated they increase work demand, long-standing talent a for they to them day their are maintain in support increasing a where that we to

operations to so the we third manufacturing demand. best is continually making customers' Our investments our products our shift the possible in capabilities and business pillar to meet grow can improving

at implementing operational our past substantial Western effort manufacturing process unit. As business behind have we earnings across calls, the and over put few identifying we the discussed improvements

While we fruition which significant achieved the progress better third the as and EBITDA we drove really production to made substantial along way, this prior during steady quarter rates, margin came improvement versus year. improvements

includes drive innovation efficiency. operational increased long-term to our product continuing invest business in and Our strategy to

Our priorities, which making the paying ultimate allocate competing may the pillar debt goal drive business, capital to include is across in to value. fourth shareholder with down or reinvesting acquisitions

growth slower I'll will quarter, Sherri reported primarily We the X year $XX of was some NewSouth that emphasizes messages business details market, strength pandemic up an in the reflecting million. key existing year. Next, our ongoing quarter channels Florida in was complementary economy belief before XX% fourth NewSouth, at in in The recovery changes markets strong February down model, our while further organic or view are related strength Based which and important of impacted order the sales future on expecting from Arizona the slightly X was great caused a restrictions part the government southeastern over patterns new growth sales we're anticipates core time. to review either to sales This in increased of on third we the as continued financials. in for our Slide downturn expect by the California our the in acquired strong was prior and business the the and provides our western on and key our we Organic were X%, in quarter. growth. which by acquisition this that entry markets from markets negatively have material contribution to any markets, be this pandemic. our Sales in region of been that believe not backlog, on is

grew excited EBITDA the to Western. newest by sales strong by Houston, operational mostly the in we has are processes. our driven profit showroom its by have operational achieved to growth through basis our $XX Gross efficiencies points, improvement Texas. XX% We realized we XX and driven margin opened at million, increased with that efficiencies manufacturing NewSouth announce Adjusted

again and will will able be to expect exceed some quarter, exit lines at NewSouth. margins to we business of prior comparisons less our growth believe Looking we ahead year we into continue, profitable as the organic fourth

Turning to Slide X.

our Let's at entries look order and backlog.

point order in see momentum in to continued low the entry since recovery have strong April. We

up For the of over Drilling business quarter, XX% order value year. our year. In legacy recoveries for Arizona prior quarter further, excluding was X% versus business, third California. XX% legacy our order unit's Western NewSouth, reflecting and unit, down quarter, third prior dollar Southeastern the entry the down year third business order was in slower was our quarter the for up prior entry versus primarily entry

sequential year-over-year, a down quarter. improvement While from this decline the second represents in XX%

measures. than by somewhat increasing our driven certain total and due in suppliers by unit receiving primarily orders versus doubled business materials our was to NewSouth, growth year. delays prior backlog and related the backlog The in more pandemic Excluding Southeast from COVID-XX government in

retail work have sales we the the areas having enabled For to growth we've Solutions increased Slide that strategic NewSouth the of orders roughly importance us like year-over-year. quarter, Window lead during done On of XX% seven, marketing mentioned supporting I third believe at highlight XXXX. talent. key to I improve the would have our generation time right

of team supporting one have drive most and taken commercial the putting in place is So we to sales. infrastructure the steps important

commercial relationships space. result, we new in been win build to able to the a As jobs have

construction. capture our growth new team to agreements Additionally, sales production developed have builders in exclusive with

develop growth We through acquisition. retailers, than channels. states growth Florida in our NewSouth and direct-to-consumer in presence our other the growing have These share coastal include with expanded channel targeted big box

innovative To the year, last edge launched an consumer leading products XXXX for of is spec begin demand collaborating principle Western need and market has the aluminum based us R&D. Our on preferences, we front changing vinyl production selling point our customers reaction that One to demand as to iLab, to branded example with keep systems value judge of our series investing the incubator the serves to Sparta, a such company products through before larger another product the on This began last dealers introduction new accommodate and to in and Window distribute is CGI price the select options. we which on scale. innovation preferences of of enabled is as builders in and stay by builder low year.

generations growth through our increased of and of this are outreach. example the which in strategy, during this sales significant have believe our data-driven primary we digital growth brand base. using our Additionally, targeted dealer approaches this a is for in our implementation time. I success selling been and lead marketing the achieved capturing In market by overall driving challenging significant strategy summary, factor yields One in Florida our

establishing national strategies our to markets. PGT to Innovations the will and We I greater we will review a the premium and results leader continue Sherri? in of goal expand window upon Sherri to call over the as progress refine make these as turn door detail. of now toward

Sherri Baker

Jeff. you, Thank

to eight. Turning Slide

the this up our down to versus net For of Organic business contribution of the break X%. million we included from And X%. down our in consisting this prior sales prior business quarter. unit, while Jeff Western Florida, sales reported a increase mentioned, as were were unit, sales year the $XX excluding X% up And quarter, sales, million, year $XXX versus NewSouth, were of XX% NewSouth. sales primarily legacy further in Southeast quarter,

the QX. the Although is year, improving prior market sales region in decline versus down were versus sequentially, the Western

we at third Repair Looking XX% channel. sales saw year-over-year. by growth organic & Remodel, quarter In of

saw the of driven prior quarter QX versus California year. the compared Selling, the for the by its In We prior quarter. X% expenses in year with increased by resilient flat construction acquisition the early result legacy Florida region new sales as production year addition primarily by general versus are quarter, period. prior Western X% decreases quarter, driven the sales largely more the This construction million the organic growth $XX in New expecting versus by up of continued decline for R&R administrative primarily fourth following sales, SG&A has in and channel, channel to February. The a NewSouth new third sales where year builders. was sales Construction the prior were proven

approximately Western costs. NewSouth, on enhancements percent continue to basis prior XX direct year labor compared operational as impact in at have costs efficiencies investments a as the of a to points decreased and period sales Excluding labor positive

into Adjusted of from million, drive We annualized increase the plant Gross EBITDA consolidation million the manufacturing Orlando approximately million. year a track and efficiencies an improved Tampa the believe run $XX quarter and costs. at $XX production in achieve for adjusted facilities. rate million, $XX $XX manufacturing our an profit the XX% of compared of quarter workflow cost reduced the sales nearly to million are quarter to for for of finally, also are on of increase we will to and enhanced prior on result Venice million reporting of the EBITDA as our $XX our $X.X dashboarding, we reflecting line. was labor which increased savings and realizing resources savings And

XX%. quarter at diluted $X.XX the for reported in in Our came million or of per $XX.X share to adjusted diluted net quarter We XXXX million income compared of share effective of the per for third quarter $X.XX or tax rate XXXX. the quarter the $XX.X in third

We structure XXXX fourth while high also the pandemic adversely labor related times. to in macroeconomic costs the supply growing chain materials It the quarter availability of in disruptions level reasonable XXXX. government experience sales the also expect do QX be our XX% economies restrictions our a any continually service, provide lead not aligning new any our responses assumes markets. we to outlook pandemic. of $XXX pandemic government customer the to for or We disruptions core order to range million to of we to quarter not consolidated cost by including other significant sales significant assumes will impact forecast or XX% fourth to of strive manage that business $XXX million, would compared to due of for This delivery our to to experience or

degree monitoring Our entries sales we trends. evaluating of visibility, constantly backlog provides order and and are a

to production, flexibility expanding changes. While the structure in our cost manage are our towards working event we currently outlook we maintain

ended quarter. now Turning million second of balance $XXX We to for with debt our million, quarter decrease the the sheet. $XX net an

loan million XXXX. $XX near-term is We of our loan million debt the XXXX. the due the term $XX only late quarter third during voluntarily in paid Our of of significant down term maturity

our we ratio approximately quarter $XXX improved of on end, times, XX-month inclusive to acquisition. capacity total had NewSouth We adjusted of of $XX debt balance revolver. of of $XX trailing As EBITDA million, net the million, X.X including a liquidity to our plus cash million unused

the I capital chart on XX, to highlight acquisitions. record quarter the XX show would to completion paying Innovation's we each track On leverage Next, like following allocation our of significant priorities. Slide review of down PGT Slide

third growing operational expect first where internal Our of In investments growth projects efficiency. projects priority quarter, at reducing drive further Western, our by has the a number margin expenses. in in improved that our we internal realized remains revenues benefits investment we and/or to significant

to maintaining with structure. range. We debt-to-EBITDA of is balance priority to and the to maintain conservative sheet net a low a our leverage profile times strong that staying strive Another at capital commitment for conservative a X.X have and range continue to X.X a end of preference

We us third our a total flow have prepayments position, debt and term maintained loan quarter. healthy in of liquidity in $XX enabled strong of cash a make the to which million

also in We or of into capital allow for of expected or we using generate products accretive, year. strong NewSouth to are have new our channels acquisition acquisitions that regions, did strategic returns expand as us this with prioritized to February be

back would now to to and Jeff? call to potential continue evaluate satisfy for for thoughts. the Jeff look closing some I We And characteristics that acquisitions over turn expect these parameters. and like to

Jeff Jackson

In our local distribute Florida, for members their devastation following headquartered incredibly our Doug relief powerful have Building we much Sherri. Delta. and Charles, subsequently I Hurricane in needed in to behind. closing, weather like Ashy devastation Hurricane leave Lake and With events the would of can seen these team that company Laura efforts our supplies distributor, Materials Thanks, acknowledge Louisiana, to the

call relief a the support reason is goal homes, great their lives. communities spirit over core that work their will this Our has residents effort conference place help their to which demonstrates operator PGT provide Operator? like our the This Q&A. supplies I and one of is and Innovations another yet of to is the we At rebuild turn and would begin others, to always our been missions. to time, helping

Operator

Thank you.

We Phil the will the from question-and-answer And now Ng Jefferies. Instructions] session. begin come [Operator question first with will

Unidentified Analyst

a Maggie I And talk the This deceleration? Is guess takeaway? XQ, Phil. that implies midpoint assuming growth. organic that is would right deceleration the for guide can of similar in NewSouth just start, driving and about in what the on be you trends

Jeff Jackson

no. Yes,

mean I Specifically, quarter the NewSouth, XX%. alone no, NewSouth the grew in

-- and backlog is NewSouth. alone close our in So $XX to million

I think model as So quarter, It's we fourth grow. NewSouth bought mean, the But we continue exceeding incredible been it's we acquisition obviously, to our going look an expectations it. for into to when still is us.

standpoint. our range that a fall If a putting we're of you out at look that in we on depends there, where lot terms of supply

capacity, heading supplies, is do units them, as not we've major bought any When And what than was able specifically XXXs. we now X,XXX. I been NewSouth. at there's in our capacity first long think a upper As less it's to disruptions to increase our X,XXX X,XXX week, around

almost capacity So at NewSouth. we've the doubled there

the do So and next into as to do we expect wind And expect out eating backlog. that into we to grow them to continue year go year. we huge even start

You --? want to

Sherri Baker

less fourth One quarter, we additional this in consideration also, the three than is have last we production did year. year days

be very basis rate QX. growth actually a what in going saw we it's on legacy So similar from a perspective, to

Unidentified Analyst

Okay.

in Can good also to the Western quarter and were sense. about the up And are about have you times trends order and order Okay, lead really But where in been slight see positive. trending orders of you're sales? strong strong timing backlogs how thinking converting into significantly. trends makes those that talk then definitely

Jeff Jackson

able to I Sure. really at in margin you've in also Obviously, leverage for if like there. and ramp unit, -- October, started at that we've on, with look at EBITDA from that even standpoint, already I the Western, we've every capacity done into I've you significant But mean, we've across a commented seen already and PGT. results business NewSouth, improvement really instance, here there been It said, backlog. eating capacity. already

like long-term chain And starting has their as lead market, struggled anything experiencing earlier, a they're feet, back don't both industry I've obviously, think standpoint, on So in well. said has, I they've increase and which to as it But $XXX million nature. bring that like from time, the is supply aluminum do to getting obviously I well. just everyone almost us or a down glass it's a backlog. they're and backlog allowed labor that. it's from the tight again, And into we're filling think standpoint,

back get It's kind time. that four-week you I at unit, will under over we'll lead I would it’ll them and already buckets in of bucket time the If is are of our other lead you're half the -- would the have continue times talking piece of control the which general, our business extended major we of, look beginning to of within say, times, by PGT. lead that but of which But I is that legacy XXXX. about. work major have lead lead on. times, on several think depend business times Those lead business say

Unidentified Analyst

you. Okay, great. Thank

Operator

And go question JP with Rehaut will ahead. Please the next come Morgan. Michael from

Unidentified Analyst

Hi, Mike. morning. good for on is This [indiscernible]

question, saw September, in on you but of legacy that that October. of in First slowdown was Western growth business saw trends the order in in bit on a Southeastern side. In maybe just there improvement you terms business, a a the year-on-year growth, big

saw October exited So could what the you talk in to how quarter? about you you third relative

Sherri Baker

say rate. say several that I'd the couple growth healthy just a of that month business, pretty we commercial legacy similar that a October, looking back because in has growth are large from the projects we've they're actually in rates weeks October. order tough But been last Yes. XXXX. to in getting in Florida had Western, I'd a at, comp

QX coming benefit of order kind weeks, see QX year. to of about expect And exit perspective, So, start you're just it look to perspective, some go around going normal a the improve the we what into we from start's just improving in to time as you XX that with from to macro expect if and next we lead as the quarter. we as through of at from seeing start

Unidentified Analyst

a the in of pieces margins, about lot the NewSouth, then exiting changes business. structural think And you've talked in moving terms second, of on I Western of at commercial there portions and

you in Or most you Is on terms there anything of the most XQ already XQ? then business where you the already? to come we seen going but color left -- be can more some into I of XQ, just commercial that of about NewSouth, are that believe, talk seeing would be mostly of is the in Or the is Western? So at And that of those? timing are and -- exiting to said there. benefit timing,

Jeff Jackson

Yes.

will From those guys fourth those labor things an of distributions, direct done standpoint, have see job. north quarter. a both almost improved benefit in bps. XXX XXX Western has We the bps some incredible Their of

when bought really we say you results. So standpoint than it's look that would it running operational better at unit, from an when even I and

a good. will start from comps Sherri that year are there, some market but tough as up. and out, that us. we California starting for back facing is then and starting Texas come to those life for we solid Arizona we're signs last to we slow some there's commercial have So back had. Texas that they continue, ramp into to are is markets. to some said, Both quite But there been frankly, And like get some jobs see

from an incredible to have poised Western So is just operationally, XXXX.

that So the still to continue think you'll quarter. fourth benefit I into see

of lines should quarter. exiting started in be some and benefit the in of NewSouth, that because actually we the will exiting are we third some But see lines, you those of fourth quarter. out the most

an and fourth our be third. be it So it quarter wind was negativeness won't impact of as the as in -- big the in down will won't

those we the will XXXX, So quarter, lines by more coming reach you in profitable time be But out focused totally you'll the first the and be that will out, again, ones. see of on benefit fourth.

Operator

with will KeyBanc. next from The be Zener question Ken

Ken Zener

your Sherri, just recall in how now, markets good obviously, guys results you're the I you team, And well. many headwinds. considering whole don't -- I this Jeff, considering right and very different executing

X,XXX, you you you're if teach company up the window make that start with was said history up comment, week the got ramping XXX of talked with your believe, can issue windows. you many difference and to, how there. like So units general, ramping which we ramping could good you when mean, them on I big right the how What execution NewSouth, -- Jeff, industry, a believe, I I about a when such I you recall say so It people for quickly in have up. you to now? your to be is

or would with per of Just Or its you past? happen what how doing are so it well in X people terms team? X in versus the

Jeff Jackson

to couple come been the just Right. and modify we've And Really, machines out in through a in a the and improvement NewSouth people that's inventory the to technology. type streamlined couple degree. to clean reengineer process the plant, of way goods. CNC to key able flow in facility, focused. the machinery, added helped along the finished has tremendously. add frankly, there of less a quite certain And We've lines, We labor all the speed Tampa been to new be able been

So, by I we're quarter it we X,XXX Ken, think, overall, be we're at very pleased. the would said And here. I first fourth -- now. finish the X,XXX yes, time

go to open up are plan of X,XXX we which plans eventually. again, we doing. stores, on more And as our So north

opened already on I've with We're As the already we're getting that. Houston pleased incredibly call, up starting orders. location, and our mentioned we

know We're stores, up shifts, we So have to to go. as open instance, much I up have for that capacity. to not And going more X ramp full more we we're there. running

we talent. I matter a technology. the now, would say and We've it's the in reengineered plant. of now the right leveraging And employee So put shifts

Ken Zener

Right.

more So were opposed of because output technology or the and labor able for basically doubling much increasing get example? process even as to XX%, you to

Jeff Jackson

That's right. exactly

Ken Zener

-- made in the that order I putting units. You different the you're obviously, rates appreciate

can growth talk if what But up think was that that's product just Construction. was success memory I to beyond that categories think flat. -- very October initiative Is versus was I up regions is last really that New Is been you -- that right New in R&R that in really if interesting, your I R&R the found just mix, interesting correct. how when I reflecting Western R&R -- different really look you doing XX%, now. extend you've that since is because what my back especially and R&R -- is New you're reflecting? year. many Was so

Sherri Baker

No. R&R is legacy business. almost XXX% the Actually, Florida growth in

-- of NewSouth. and So the addition

of They million of those. crossed QX, just $X it's combination threshold really opened of -- earlier our both at We order the stores So it's West which in exciting, decline to growth opening New and location really by we're Florida going in be second X% The piece, Construction flat soon. really sometime Western. still up the is that year. in a this a offset X was

of the So mix Seaboard a side. it's more Western on New Construction

Ken Zener

if the not company built. builders And are installation before there, get comment, only an could generally in we builders go look, morning stuff are just orders, that just of then windows this installation. And can't the getting a orders you lot had report says,

lags it about A basically in the their So a you're thinking construction homebuilder seeing are you in talked how XX% time. about delay industry? the cycle

is good. growth in? -- So i.e., don't contractors be, be the would then windows, know, seeing with how your people because doing you coming the demand seems a question, on obviously seeing which quite fine. pretty the -- up, R&R getting you're NewSouth, with comfortable seems to lot it's that are It I separate, And like second you are

Jeff Jackson

in Yes, general. I'll comment just

right. You're

really it Construction, starts New lots. for

are scarce. lots the available guys premium So becoming Construction for New and

way and through. So the all it goes

and again, we been capacity in up increase that -- that to markets labor tight an executives is ramp a well. as boom. automation a the it very, now starting able to just very I've are our to as we're talked also calls So market. tied getting the end, Florida, general right robust in to from But various to, delay From feed there's done. into stuff and Construction standpoint, listened as That's New we've I've

day the state. into north we increasing. a if see And have We anything, that, XXX of moving people

that's quite R&R So, all are. going other the XXXX. think we're benefiting into like I R&R frankly, just to From businesses standpoint, well bode an

whether whatever You our their people last -- up for field, to some three, had it's months, fix lot want to in staying the may place, sliding patios four and be. glass decking living a of or sheltered doors, lock home some or place, they quarantined, indoor/outdoor it at

So that all you I I tremendous as to you Do across from all measures. have well, markets stay-at-home are, from of add? pandemic-related growth experiencing really both we anything think, And a PGT, those brands. NewSouth, benefited because want think

Sherri Baker

that's No, perfect.

Ken Zener

Thank you.

Jeff Jackson

you. Thank

Operator

And the Hughes with Please go Truist. come next question will ahead. Keith from

Keith Hughes

Thank you.

months. for next just Your order has possible rate? just growth have ship the it you going five going in last double-digit at been to Is year outstanding to growth be to capacity are orders? have not those that here the from you to or organic Southeast simply enough four Or

Sherri Baker

this certainly I'd next tell, point early year? little time. attractive The us of first soon say, does the probably through been to see for but Probably as benefit we marketplace is, overall of will too just at growth least that a backlog the strength get in of the at question bit we've what You'll the the very seeing order of in year. continue significant half the real be, that part into

Keith Hughes

are increase maximum you're rate the in that to can are the third or But ship? Is and do, in be the the probably you single able mean, fourth that that if rate in you Southeast. can to digits going putting I going up be there? like high something orders the

Jeff Jackson

shift definitely can And it increase. able again, will we No, between be to brands.

For instance, extra as And we there. that I'll people. we're that's tell going we -- than lines double NewSouth, you more production just literally to That's add shift. will continue to capacity an

still plenty our So facility, there's we capacity people at in and Miami, a getting CGI In other have proper just than of there. trained. not really the restraint

at capacity you're for our range. you blended If all capacity facilities, probably look our or XX% overall in XX% that

is active going able also awareness row. we spirited had benefit to our drive again, in a another products. impact I be year, think meet the of to next the demand. still to So And that's going the I season. of think like we're fourth increasing And hurricane This

Keith Hughes

on guess capacity, able Well, I if you'd there? growth seems more to this that fourth I low-level It going Is fulfill kind I'm there be quickly of why thought. on you the something got than like revenue confused stronger. of else not quarter is

Jeff Jackson

almost, share from addition to share our challenged been production year fourth since in has days, here, Well, days been I've the day standpoint. a quarter -- every

both Thanksgiving the You in have fourth and Christmas quarter. falling

to get you the back have side, for on that, capacity as addition In NewSouth to well. instance, Keith, also the I'll installation have

crews in and place hired as be those have well. So to put

complex saying does various into in over more fourth want R&R things not you fall just Thanksgiving it's do that the that'll and than of not happen There's bucket. People meet lot quarter-over-quarter. A their quarter. in homes Christmas. So

fourth aspects nature we an encounter. of inherent there's So our that the quarter from business, always different challenged is just will be

Sherri Baker

seasonality. typical is This

Keith Hughes

And NewSouth the fantastic year. business of really been you've for Okay. kind as entire has just this highlighted

go there just is goes it's there be Is natural be next against that should should that a to we robust into next think something growth you slowing continue? else is business your tough this growth here up comps, Or too. just about? numbers going something as that organic going in coming As to year, on year, going

Jeff Jackson

obviously, we're XX Well, XX%. -- at

Sherri Baker

yes. orders, for XX%

Jeff Jackson

going new in key to Yes, I'll be The we're of to stores. percentage-wise, is stuff. let going second. NewSouth, NewSouth and to Sherri continue opening not comment kind key up that But a to

South going in going slated. Okay. Houston. to We've to up We We're market. store go opened way, the another Atlanta got Orleans by the open into and Houston, we're eventually up New

be the growth So different drive will NewSouth. slated maybe at rates. we that going type and to in hopefully openings, to that in digit, We're continued XX%-plus Virginia, store got the double key

Sherri Baker

that add even years But growth. have been opened been also yes. I seeing the for double-digit stores importantly, existing have would And several still that

benefit organic of nice, store growth, some you have have new added you openings. then the and So really healthy the

So of it's a those. combination both really of

Jeff Jackson

worth you're of then a backlog. sitting And million on $XX

have So NewSouth robust XXXX. a will definitely -- have

Operator

come [Operator with Wells Patterson instructions] from question Fargo. Next Truman will

Truman Patterson

few questions previously. lead by. up on have quantify I I been us extended a Can just days’ quantify you don't heard for you First following a how times think much on off, basis? just maybe it

Jeff Jackson

Yes. much as versus our do we That's to XX been from going general, case. a lines, tell all lead to They times. have because single product, of keep at to X just those literally times hard you be lead by times it's versus casement going the a have several lead glassdoor. different anywhere like vary can X weeks sliding as In to to I weeks. times. from hung that's And Those for to not X

So that customer brand. the fluctuates and by by also the

on I statement So general whole it can't the company. in for put

Truman Patterson

Okay.

clearly, wanted plans very on And I on homebuilder your guess, And in in builder you're the remains I they has partners. to then side, strong new if and the demand Okay. distributor homes are constructed been follow-up sure Florida. get to in elevated just discussing you I'm XXXX and and demand the it meet able capacity that capacity to closed res XXXX, XXXX? all do have with the pretty

Jeff Jackson

always running simply continue add quite there's And the yes. We plans grow I Like organically. always well. And business about is to we XX% answer on XX% do capacity XX% said earlier, have obviously probably the as now. have we This capacity. The acquisition we're to added the capacity capacity. is capacity, to table is as

Truman Patterson

on back actually Should pulled year. of my versus for travel, How materially of a need then a it's you see firms Okay, parter. over actually costs earlier forward past lot do price hikes offset 'XX? have you et follow-up are some couple this up pretty costs flip on of SG&A? it? hedged pandemic two then on months to due And okay. and Aluminum, any advertising, the SG&A, cetera. to And And we normalize going in is from the all modestly the side -- lack

Sherri Baker

in take I'll Well, them order.

a what a seeing times an see covered prices tailwind we aluminum next fact versus perspective, due and we're coverage. at very been Right for So we're actively had than putting to now, we're higher year. currently that from to spot hedge actually this the on just XX% year, we've going

So very front. on been active we've that

if better, be a next So year hedge. XX% should not similar, with it

SG&A consider their perspective, one that business. the to go-to-market thing SG&A is definitely have NewSouth and expense with direct-to-consumer, advertising a you from sales marketing a just a the would they of higher legacy because a of higher as SG&A structure just On what in percent strategy than see has

continue we some higher should continue So to we on that. probably as that's sales, factor. biggest get to leverage see the But

Operator

like conference Sherri for over closing Ladies back to question-and-answer I turn session. and to concludes gentlemen, this would your Baker remarks. the any

Sherri Baker

you, safe to Thanks interest remain healthy. families Innovations. for your hope and and We continued everyone, you thank us in Thank so continue and your and much. today joining PGT you,

Operator

presentation. attending today's The conference you for now concluded. has Thank

now may disconnect. You

PGT Innovations (PGTI) 8 Nov 202020 Q3 Earnings call transcript