false000135432700013543272020-05-132020-05-13

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

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

Date of Report (Date of earliest event reported): May 13, 2020

PGT Innovations, Inc.

(Exact name of Registrant as Specified in Its Charter)

Delaware	001-37971	20-0634715
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

1070 TECHNOLOGY DRIVE, NORTH VENICE, Florida		34275
ddress of Principal Executive Offices)		(Zip Code)

Registrant’s Telephone Number, Including Area Code: (941) 480-1600

Not Applicable

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

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, $0.01 Par Value Per Share		PGTI		New York Stock Exchange

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

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

ITEM 2.02. Results of Operations and Financial Condition

On May 13, 2020, PGT Innovations, Inc. (the “Company”) issued a press release announcing its financial results for its first quarter ended April 4, 2020.

On the same date, the Company posted an earnings presentation on its investor relations website at http://ir.pgtinnovations.com. The earnings presentation is being made available in connection with the Company’s earnings conference call and audio webcast on May 13, 2020 at 10:30 a.m. E.T. The press release and the earnings presentation are furnished as Exhibits 99.1 and 99.2, respectively, to this Current Report on Form 8-K and are hereby incorporated herein by reference.

ITEM 7.01. Regulation FD Disclosure

The information set forth above under Item 2.02 is hereby incorporated herein by reference.

The information contained in this paragraph, as well as Exhibit 99.1 and Exhibit 99.2 referenced herein, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933.

ITEM 9.01.

FINANCIAL STATEMENTS AND EXHIBITS

(d)

Exhibits


Exhibit No.		Description
99.1		Press release of PGT Innovations, Inc., dated May 13, 2020
99.2		Earnings presentation dated May 13, 2020

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SIGNATURES

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

PGT INNOVATIONS, INC.

By: /s/ Sherri Baker_____________________________

Name: Sherri Baker

Title: Senior Vice President, and Chief Financial Officer

Dated: May 13, 2020

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EXHIBIT INDEX


Exhibit No.		Description
99.1		Press release of PGT Innovations, Inc., dated May 13, 2020
99.2		Earnings presentation dated May 13, 2020

PGTI Reports 2020 First Quarter Results

Solid Organic Growth Results in 27 Percent Increase in Net Sales

VENICE, Fla., May 13, 2020 – PGT Innovations, Inc. (NYSE: PGTI), a national leader in premium windows and doors, including impact-resistant products and products designed to unify indoor/outdoor living spaces, today announced financial results for its first quarter ended April 4, 2020.

Financial Highlights for First Quarter 2020 compared to First Quarter 2019

●

Net sales increased 27 percent, to $220 million, including $16 million from our NewSouth acquisition

●

Net income increased 89 percent, to $16 million

●

Net income per diluted share increased 86 percent, to $0.26, and adjusted net income per diluted share increased 75 percent, to $0.28

●

Adjusted EBITDA increased 39 percent, to $39 million

“We started the year by achieving significant sales growth, reflecting the overall strength of our brands in the housing market going into 2020,” said Jeff Jackson, President and Chief Executive Officer. “We saw strong organic growth of 18% in our Southeast business unit, and 14% for our Western business unit, inclusive of an extra selling week within the first quarter of 2020, as compared to the prior year. Additionally, the newest addition to our Company, NewSouth Window Solutions, which we acquired on February 1, 2020, has started off strong, growing orders more than 50 percent compared to the prior year quarter.”

“We saw strong momentum in new order entries across our entire business throughout most of the first quarter, prior to the change in the macro environment caused by the global COVID-19 pandemic,” added Jackson. “Our impact-resistant windows and doors are considered essential in the markets we serve, particularly as hurricane season approaches. Similar to the industry, we began to see a slowdown in orders entering the second quarter. In our Florida markets, we have seen order entry declines of approximately 10 percent for the month of April, as compared to the prior year, but sequentially down over 30 percent versus the first quarter growth rate. We quickly adjusted our operations to meet the changes in demand, but because we are seeing a building pipeline of orders in our Florida markets in May, we are beginning to build back our capacity to meet that recovering demand. In some areas with more stringent

building restrictions related to the pandemic, such as California, Texas and Nevada, we are seeing softer order patterns, down 20-30 percent for April as compared to the prior year, but sequentially down over 40 percent versus the first quarter growth rate. Despite a great start to the year, the uncertainty of the duration and extent of the pandemic and the unfavorable economic environment it has created has limited our ability to forecast the remainder of the year, and as a result, last month we withdrew our 2020 guidance. Assuming our markets do not experience any significant increases in COVID-19 cases and their economies continue to reopen, we do, however, expect to see a modest recovery in order trends and related sales as we move throughout the year, with our Florida markets expected to achieve year-over-year growth by year-end.”

“Along with record sales for the quarter, we increased adjusted EBITDA 39 percent, which reflects lower direct labor and material expense resulting from diligent cost control and operating efficiencies, in addition to our increased sales” said Sherri Baker, Senior Vice President and Chief Financial Officer. “As previously announced, we expect our planned closure and consolidation of our Orlando, Florida manufacturing facility in June of this year to further improve our operational efficiency, while reducing our annualized operating expenses by a range of approximately $3.5 to $3.8 million, once completed.”

“Additionally, we continue to focus on maintaining ample liquidity, finishing the quarter with total liquidity of $144 million, including a cash balance of $68 million and undrawn revolver capacity of $76 million,” added Ms. Baker. As of May 1, 2020, we had a cash balance of $69 million and undrawn revolver capacity of $76 million. “Given the potentially challenging economic outlook, we have taken several actions intended to preserve cash by reducing discretionary costs and carefully prioritizing capital expenditures, while continuing to deliver the products needed by our customers.”

“Although we have withdrawn our 2020 annual guidance, we are expecting our second quarter consolidated net sales, inclusive of NewSouth, to decline in the range of 7 to 10 percent as compared to the prior year, driven primarily by COVID-19 related reduction in orders, which began in April,” concluded Baker.

“I am extremely proud of our employees for continuing to deliver the high-quality products and service our customers expect, while maintaining as a top priority the safety and health of our team members, customers and communities,” added Jackson. “I want to thank our customers, suppliers, as well as employees for their support during this challenging time. We believe we are well positioned to manage through the current economic challenges and remain positive about our competitive position in our industry over the longer term.”

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

To participate in the teleconference, kindly dial into the call about 15 minutes before the start time: 800-309-1256 (U.S. and Canada) and 786-789-4796 (U.S.). The conference ID is 834538. A replay of the call will be available within approximately two hours after the scheduled end of the call on May 13, 2020, through 1:30 p.m. on May 20, 2020. To access the replay, dial 888-203-1112 (U.S. and Canada) and 719-457-0820 (U.S.) and refer to pass code 5209948.

You may also join the conference online by using the following link:

https://services.choruscall.com/links/pgti200513Sn4bpQvm.html

The webcast will also be available through the Investors section of the PGT Innovations, Inc. website: http://ir.pgtinnovations.com/events.cfm.

About PGT Innovations, Inc.

PGT Innovations manufactures and supplies premium windows and doors. Its highly-engineered and technically-advanced products can withstand some of the toughest weather conditions on earth and unify indoor/outdoor living spaces.

PGT Innovations creates value through deep customer relationships, understanding the unstated needs of the markets it serves and a drive to develop category-defining products. PGT Innovations is also the nation’s largest manufacturer of impact-resistant windows and doors, holds the leadership position in its primary markets, and is part of the S&P SmallCap 400 Index.

The PGT Innovations’ family of brands include CGI®, PGT® Custom Windows & Doors, WinDoor®, Western Window Systems®, CGI Commercial®, Eze-Breeze® and NewSouth Window Solutions®. The Company’s brands, in their respective markets, are a preferred choice of architects, builders, and homeowners throughout North America and the Caribbean. The Company’s high-quality products are available in custom and standard sizes with multiple dimensions that allow for greater design possibilities in residential, multi-family, and commercial projects. For additional information, visit www.pgtinnovations.com.

Forward-Looking Statements

Statements in this press release regarding our business that are not historical facts are “forward-looking statements” that involve risks and uncertainties which could cause actual results to differ materially from those contained in the forward-looking statements. Such forward-looking statements generally can be identified by the use of forward-looking terminology, such as “guidance,” “expect,” “believe,” “anticipate,” “may,” “outlook,” “forecast,” “intend,” “could,” “estimate,” “positioned,” and similar terminology. These risks and uncertainties include factors such as:

•

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

•

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

•	changes in raw material prices, especially for aluminum, glass and vinyl, including, price increases due to the implementation of tariffs and other trade-related restrictions;

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

•	our dependence on our impact-resistant product lines and contemporary indoor/outdoor window and door systems, and on consumer preferences for those types and styles of products;

•	the effects of increased expenses or unanticipated liabilities incurred as a result of, or due to activities related to, our acquisitions of NewSouth and Western Window Systems;

•	our level of indebtedness, which increased in connection with our acquisition of Western Window Systems, and increased further in connection with our acquisition of NewSouth;

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

•

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

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

•	our dependence on our limited number of geographically concentrated manufacturing facilities;

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

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

•

risks associated with our information technology systems, including cybersecurity-related risks, such as unauthorized intrusions into our systems by “hackers” and theft of data and information from our systems, and the risks that our information technology systems do not function as intended or experience temporary or long-term failures to perform as intended;

•	product liability and warranty claims brought against us;

•	in addition to the acquisitions of NewSouth and Western Window Systems, our ability to successfully integrate businesses we may acquire in the future, or that any business we acquire may not perform as we expected at the time we acquired it; and

•	the other risks and uncertainties discussed under “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 28, 2019 and our other SEC filings.

Statements in this press release that are forward-looking statements include, without limitation, our expectations regarding: (1) order entries and demand for our products during 2020; (2) sales growth in our Florida markets and other markets; (3) the possible benefits arising from the closure of our Orlando, Florida manufacturing facility and the consolidation of its operations into our Venice and Tampa, Florida facilities, and the timing of those actions and benefits; (4) our liquidity and ability to preserve cash and liquidity generally; (5) our consolidated sales and operating margins for the second quarter of 2020, and for the remainder of 2020; (6) our cost-reduction measures; and (7) our inability to forecast and provide guidance regarding our financial performance for 2020. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as required by law, the Company undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances from the date of this press release.

Use of Non-GAAP Financial Measures

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

Adjusted net income consists of GAAP net income adjusted for the items included in the accompanying reconciliation. Adjusted net income per share consists of GAAP net income per share adjusted for the items included in the accompanying reconciliation. We believe these measures enable investors and analysts to more thoroughly evaluate our current performance as compared to past performance and provide a better baseline for assessing the Company's future earnings potential. However, these measures do not provide a complete picture of our operations.

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

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

Adjusted EBITDA as used in the calculation of the net debt-to-Adjusted EBITDA ratio, consists of our adjusted EBITDA as described above, but for the trailing twelve-month period, adjusted pursuant to the covenants contained in the 2016 Credit Agreement due 2022 for the acquisition of Western Window Systems.

SOURCE: PGT Innovations, Inc.

PGT Innovations Contacts:

Sherri Baker, 941-480-1600

Senior Vice President and CFO

SBaker@PGTInnovations.com

Stephanie Cz, 941-480-1600

Corporate Communications Manager

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

	Three Months Ended
	April 4,		March 30,
	2020		2019

Net sales	$	220,204	$	173,737
Cost of sales		139,077		112,467
Gross profit		81,127		61,270
Selling, general and administrative expenses		54,220		44,014
Income from operations		26,907		17,256
Interest expense, net		7,169		6,714
Income before income taxes		19,738		10,542
Income tax expense		4,138		2,285
Net income	$	15,600	$	8,257

Basic net income per common share	$	0.27	$	0.14

Diluted net income per common share	$	0.26	$	0.14

Weighted average common shares outstanding:
Basic		58,668		58,134

Diluted		59,121		59,220

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


	April 4,		December 28,
	2020		2019
ASSETS
Current assets:
Cash and cash equivalents	$	67,552	$	97,243
Accounts receivable, net		96,234		68,091
Inventories		51,647		43,851
Contract assets, net		16,491		10,547
Prepaid expenses and other current assets		17,275		13,878
Total current assets		249,199		233,610

Property, plant and equipment, net		132,401		128,199
Operating lease right-of-use asset, net		39,448		26,390
Intangible assets, net		279,890		255,962
Goodwill		323,800		277,600
Other assets, net		893		972
Total assets	$	1,025,631	$	922,733

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses	$	76,108	$	51,394
Current portion of operating lease liability		6,325		4,703
Total current liabilities		82,433		56,097

Long-term debt, less current portion		421,203		368,971
Operating lease liability, less current portion		35,571		24,040
Deferred income taxes, net		26,794		27,945
Other liabilities		14,549		14,132
Total liabilities		580,550		491,185

Total shareholders' equity		445,081		431,548
Total liabilities and shareholders' equity	$	1,025,631	$	922,733

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

	Three Months Ended
	April 4,			March 30,
	2020			2019
Reconciliation to Adjusted Net Income and
Adjusted Net Income per share (1):
Net income	$	15,600		$	8,257
Reconciling items:
Product line transition costs (2)		382			641
Acquisition-related costs (3)		543			650
Pandemic-related costs (4)		85			-
Tax effect of reconciling items		(253	)		(332	)
Adjusted net income	$	16,357		$	9,216
Weighted-average diluted shares		59,121			59,220
Adjusted net income per share - diluted		$0.28			$0.16
Reconciliation to Adjusted EBITDA (1):
Depreciation and amortization expense	$	9,928		$	8,512
Interest expense, net		7,169			6,714
Income tax expense		4,138			2,285
Reversal of tax effect of reconciling items for
adjusted net income above		253			332
Stock-based compensation expense		1,530			1,198
Adjusted EBITDA	$	39,375		$	28,257
Adjusted EBITDA as percentage of net sales		17.9%			16.3%

Net debt-to-Adjusted EBITDA ratio (5)		2.4x

(1) The Company's non-GAAP financial measures were explained in its Form 8-K filed May 13, 2020.

(2) Represents costs relating to product line transitions, classified within cost of sales for the three months ended April 4, 2020 and March 30, 2019.

(3) In 2020, represents costs relating to the acquisition of NewSouth Window Solutions, and in 2019, relating to the acquisition of Western Window Systems, classified within selling, general and administrative expenses for the three months ended April 4, 2020 and March 30, 2019.

(4) Represents incremental costs incurred relating to the coronavirus pandemic, including cleaning and sanitizing costs for the protection of the health of our employees and safety of our facilities, classified within selling, general and administrative expenses for the three months ended April 4, 2020.

(5) Calculated using an adjusted EBITDA amount pursuant to the covenants included in our 2016 Credit Agreement due 2022 which includes the EBITDA of our NewSouth acquisition on a proforma trailing twelve-month basis.

Q1 2020 Financial results May 13, 2020

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FORWARD LOOKING STATEMENTS Statements in this presentation regarding our business that are not historical facts are “forward-looking statements” that involve risks and uncertainties which could cause actual results to differ materially from those contained in the forward-looking statements. Such forward-looking statements generally can be identified by the use of forward-looking terminology, such as “expected,” “excited,” “guidance,” “believe,” “expect,” “may,” “outlook,” “forecast,” “intend,” “could,” “project,” “estimate,” “anticipate,” “should,” “plan” and similar terminology. These risks and uncertainties include factors such as:the impact of the COVID-19 pandemic and related measures taken by governmental or regulatory authorities to combat the pandemic, including the impact of the pandemic and these measures on the economies and demand for our products in the states where we sell them, and on our customers, suppliers, labor force, business, operations and financial performance; unpredictable weather and macroeconomic factors that may negatively impact the repair and remodel and new construction markets and the construction industry generally, especially in the state of Florida and the western United States, where the substantial portion of our sales are currently generated, and in the U.S. generally; changes in raw material prices, especially for aluminum, glass and vinyl, including, price increases due to the implementation of tariffs and other trade-related restrictions; our dependence on a limited number of suppliers for certain of our key materials; our dependence on our impact-resistant product lines and contemporary indoor/outdoor window and door systems, and on consumer preferences for those types and styles of products; the effects of increased expenses or unanticipated liabilities incurred as a result of, or due to activities related to, our acquisitions of NewSouth and Western Window Systems; our level of indebtedness, which increased in connection with our acquisition of Western Window Systems, and increased further in connection with our acquisition of NewSouth; increases in bad debt owed to us by our customers in the event of a downturn in the home repair and remodeling or new home construction channels in our core markets and our inability to collect such debt;the risks that the anticipated cost savings, synergies, revenue enhancement strategies and other benefits expected from our acquisitions of NewSouth and Western Window Systems may not be fully realized or may take longer to realize than expected or that our actual integration costs may exceed our estimates; increases in transportation costs, including due to increases in fuel prices; our dependence on our limited number of geographically concentrated manufacturing facilities; sales fluctuations to and changes in our relationships with key customers; federal, state and local laws and regulations, including unfavorable changes in local building codes and environmental and energy code regulations; risks associated with our information technology systems, including cybersecurity-related risks, such as unauthorized intrusions into our systems by “hackers” and theft of data and information from our systems, and the risks that our information technology systems do not function as intended or experience temporary or long-term failures to perform as intended; product liability and warranty claims brought against us; in addition to the acquisitions of NewSouth and Western Window Systems, our ability to successfully integrate businesses we may acquire in the future, or that any business we acquire may not perform as we expected at the time we acquired it; and the other risks and uncertainties discussed under “Risk Factors” in Part II, Item 1A of our Quarterly Report on Form 10-Q for the quarter ended April 4, 2020, and “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 28, 2019 and our other SEC filings.Forward looking statements in this presentation include our expectations regarding: (i) the impact of our strategic pillars on customer and shareholder value; (ii) our financial flexibility, including our ability to minimize and prioritize capital expenditures, reduce discretionary spending and manage costs through initiatives, optimize net working capital, and focus on preserving cash; (iii) our balance sheet and liquidity positions; (iv) driving margin through strategic growth projects; (v) maintaining a conservative capital structure; (vi) our long-term target net debt-to-EBITDA ratio; (vii) the possible timing and benefits of any future acquisitions; (viii) expansion into new geographies, customer markets or different marketing positioning; (ix) continuing to invest in talent and R&D; (x) continued focus on operational efficiencies; (xi) execution of our strategy creating long-term shareholder value; and, (xii) being well positioned with diversified product portfolio to capture profitable growth. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Except as required by law, the Company undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances from the date of this presentation. 2

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Use of Non-GAAP Financial Measures This presentation and the financial schedules include financial measures and terms not calculated in accordance with U.S. generally accepted accounting principles (GAAP). We believe that presentation of non-GAAP measures such as adjusted net income, adjusted net income per share, and adjusted EBITDA provides investors and analysts with an alternative method for assessing our operating results in a manner that enables investors and analysts to more thoroughly evaluate our current performance compared to past performance. We also believe these non-GAAP measures provide investors with a better baseline for assessing our future earnings potential. The non-GAAP measures included in this release are provided to give investors access to types of measures that we use in analyzing our results.Adjusted net income consists of GAAP net income adjusted for the items included in the accompanying reconciliation. Adjusted net income per share consists of GAAP net income per share adjusted for the items included in the accompanying reconciliation. We believe these measures enable investors and analysts to more thoroughly evaluate our current performance as compared to the past performance and provide a better baseline for assessing the Company's future earnings potential. However, these measures do not provide a complete picture of our operations.Adjusted EBITDA consists of net income, adjusted for the items included in the accompanying reconciliation. We believe that adjusted EBITDA provides useful information to investors and analysts about the Company's performance because they eliminate the effects of period-to-period changes in taxes, costs associated with capital investments and interest expense. Adjusted EBITDA does not give effect to the cash the Company must use to service its debt or pay its income taxes and thus does not reflect the actual funds generated from operations or available for capital investments.Our calculations of adjusted net income and adjusted net income per share, and adjusted EBITDA are not necessarily comparable to calculations performed by other companies and reported as similarly titled measures. These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP but should not be considered a substitute for or superior to GAAP measures. Schedules that reconcile adjusted net income, adjusted net income per share, and adjusted EBITDA to GAAP net income are included in the financial schedules accompanying this release.Adjusted EBITDA as used in the calculation of the net debt-to-Adjusted EBITDA ratio, consists of our adjusted EBITDA as described above, but for the trailing twelve-month period, adjusted pursuant to the covenants contained in our credit agreements. 3

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Response to COVID-19 Team Members, Customers and Communities Are Our Top Priority Safeguards in Place Following World Health Organization and U.S. Centers for Disease Control and Prevention guidelines for personal health and safetyIncreasing cleaning frequency and enhancing sanitization of all facilitiesAdjusting production schedules and operations to promote social distancingRestricting external visitor access to facilitiesImplementing work at home programs where possibleRestricting all nonessential air travel Financial Flexibility Current available liquidity of $144 million, including cash on hand of $68 million and undrawn revolver capacity of $76 millionNo scheduled debt payments required until maturity of $64 million term loan due October 2022Minimizing capital expendituresReducing discretionary spendingOptimizing net working capitalFocusing on preserving cash 4

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Executing 4 strategic pillars expected to create long-term Customer and Shareholder Value 01.Driving brand recognition, loyalty and growth with customer-centric innovation 02.Attracting and retaining talented, dedicated leaders to drive our business 03.Investing in our business and scaling our operations to meet expected increasing long-term demand 04.Strategically allocating capital generated from our free cash flow to support profitable growth 5

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First Quarter key Messages Q1 2020 vs. Q1 2019 Net Sales $220M 27% ↑ Gross Margin 36.8% 1.3% ↑ Adj. EBITDA1 Margin 17.9% 1.6% ↑ HighlightsStrong legacy organic sales growth of 18% $16 million sales contribution from NewSouthMargins benefitting from higher sales and lower direct labor and material costsAdditional cost savings expected to be realized from consolidation of manufacturing footprint 1. Refer to reconciliation to GAAP. 6

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Market Performance: LEGACY BUSINESS (SEBU1 & WEBU2) CommentaryQ1’20 order entry up 23% in legacy SEBU and 13% in WEBU; 21% overall growth in organic ordersQ1’20 legacy backlog up 30% YoY April orders down 10% YoY for legacy SEBU and 23% YoY for WEBU; legacy backlog continued to grow in April as we build capacityNewSouth retail orders increased over 50% YoY in Q1’20 and over 40% YoY in April; retail backlog of ~$25M at end of Q1’20, grew to ~$28M in April Legacy Backlog3 ($000s) 1. Southeastern Business Unit, excludes NewSouth; 2. Western Business Unit; 3. Excludes NewSouth. 30% GROWTH 7 SEBU1 YoY Order Growth WEBU2 YoY Order Growth 11% GROWTH

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Q1 2020 RESULTS Q1 2020 vs. Q1 2019 Net Sales $220M 27% ↑ Gross Margin 36.8% 1.3% ↑ Adjusted EBITDA1 $39.4M 39% ↑ Adj. Diluted EPS1 $0.28 75% ↑ HighlightsStrong organic sales growth in both R&R and New Construction; benefit of extra selling week vs prior year quarterSoutheastern Business Unit sales up organically 18% YoY with corporate builder and out-of-state sales each growing approximately 30% YoYWestern Business Unit sales up 14% YoYNewSouth sales growth met internal expectationsPlant consolidation expected to reduce annualized operating expenses by $3.5M – $3.8M 1. Refer to reconciliation to GAAP. 8

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Balance sheet and Liquidity Update NET LEVERAGE Total Debt Outstanding $429.0M Less: Cash $67.6M Net Debt $361.4M LTM Adj EBITDA $150.0M Net Debt to Adj EBITDA 2.4x LIQUIDITY PROFILE Cash $67.6M Unused Credit Capacity $76.0M Total Available Liquidity $143.6M Senior Notes (Aug 2026) $365.0M Revolving Credit (Oct 2022) $64.0M Total Debt Outstanding $429.0M Debt Maturity Schedule Term Loan Senior Notes COMMENTARYStrong and flexible balance sheet positions Company to navigate uncertainty due to the pandemicTerm loan of $64 million maturing in 2022, senior notes due 2026Net debt to adjusted EBITDA ratio of 2.4x pro forma for NewSouth acquisitionCost management initiatives and prioritized capital expenditures 9

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Strong balance sheet 1. Net debt is total consolidated funded indebtedness as of 04/04/2020 and calculated in accordance with our credit agreement. Adjusted EBITDA is calculated in accordance with our credit agreement. Refer to reconciliation to GAAP. 2. Leverage ratio defined as net debt divided by trailing-twelve-month adjusted EBITDA; refer to reconciliation to GAAP. HighlightsEnded Q1 2020 with net debt of $361 million, up from $282 million in Q4 2019 driven by $50 million of senior notes in conjunction with NewSouth acquisitionNet debt to trailing-twelve month adjusted EBITDA of 2.4 times, pro forma for NewSouth acquisitionProven track record of deleveraging following acquisitions Net Debt1 and Leverage Ratio2 ACQUIRED ACQUIRED ACQUIRED 10 ACQUIRED

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Long-Term Capital Allocation priorities; primary focus for 2020 to preserve cash 11 INTERNAL INVESTMENT Strategic growth projects expected to drive margin improvement 01 DEBT REDUCTION Expect to maintain a strong balance sheet and conservative capital structureLong-term target Net Debt to EBITDA Ratio of 2x – 3x 02 STRATEGIC ACQUISITIONS Any potential future acquisitions most likely 2021 or beyondOver the long term, strategic acquisitions are expected to grow shareholder valueExpansion into new geographies, customer markets or different market positioning 03

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12 Why Invest inPGT Innovations 01 National leader in growing premium impact-resistant and indoor / outdoor window and door category 02 Expect to continue investing in talent and R&D to remain an industry leader in innovation and product development 03 Continued focus on operational efficiencies expected to drive additional margin expansion 04 Execution of our strategy expected to create long-term customer and shareholder value 05 Well positioned with diversified product portfolio to capture profitable growth in new construction and R&R channels

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Q&A

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Appendix Reconciliation to Adjusted Net Income, Adjusted Net Income per Share-diluted, Adjusted EBITDA, and Adjusted EBITDA per our bank covenants

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Reconciliation of GAAP to NON-gaap MEASURES(unaudited - in thousands, except per share amounts)THREE MONTHS ENDED APRIL 4, 2020 AND MARCH 30, 2019 15 THREE MONTHS ENDED 4/4/2020 3/30/2019

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16 Reconciliation of GAAP to NON-gaap MEASURES(unaudited - in thousands, except per share amounts)THREE MONTHS ENDED APRIL 4, 2020 AND MARCH 30, 2019

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Reconciliation of GAAP to NON-gaap MEASURES(in MILLIONS) 17

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18 Reconciliation of GAAP to NON-gaap MEASURES Represents the total of the adjustments consistent with previously published and publicly available earnings releases as issued by the Company relating to the period for which the total adjustments is presented.Beginning in 2018, the Company updated its reporting of adjusted EBITDA for its publicly issued earnings to exclude non-cash stock-based compensation expense. As such, the total of the adjustments per previously published earnings as presented herein will not agree to the total adjustments as previously issued for periods prior to 2018, as they have been revised as a result of this change in presentation.Calculated in accordance with the covenants pursuant to the Company’s then existing credit agreement, which includes adjustments for expected cost savings, operating expense reductions and synergies related to acquisitions, as well as the earnings of the acquired entity on a pro forma basis for any pre-acquisition period within the trailing twelve-months relating to the period of the calculation.

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Document and Entity Information	May 13, 2020
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	May 13, 2020
Entity Registrant Name	PGT Innovations, Inc.
Entity Incorporation, State or Country Code	DE
Entity File Number	001-37971
Entity Tax Identification Number	20-0634715
Entity Address, Address Line One	1070 TECHNOLOGY DRIVE
Entity Address, City or Town	NORTH VENICE
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	34275
City Area Code	941
Local Phone Number	480-1600
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Entity Central Index Key	0001354327
Title of 12(b) Security	Common Stock, $0.01 Par Value Per Share
Trading Symbol	PGTI
Security Exchange Name	NYSE

Document and Entity Information