PGT Reports Record Second Quarter and Year-to-Date 2006 Results.

VENICE, Fla. -- PGT, Inc. (Nasdaq:PGTI), the leading U.S. manufacturer and supplier of residential impact-resistant windows and doors, today announced record sales and earnings from operations for its quarter ended July 1, 2006.

"We delivered outstanding results in the second quarter by leveraging our competitive strengths and aggressively executing our strategy," said Rod Hershberger, PGT's President and Chief Executive Officer. "Our year-to-date accomplishments were highlighted by the successful completion of our initial public offering and record first half sales of $205.0 million, which represents an increase of 30% over the prior year period. In addition, our adjusted net income in the first half increased by 127% year-over-year after adjusting for items related to the IPO and refinancing transactions."

A reconciliation of non-GAAP financial measures to their GAAP equivalents is attached to this release and can also be found on the company's website.

 
Second Quarter 2006 Financial Results 
------------------------------------- 
(See accompanying financial schedules for full financial details and 
reconciliations of non-GAAP financial measures to their GAAP 
equivalents.) 

--Total sales for the second quarter were $108.7 million, an increase of 39%, versus $78.2 million for the same period in 2005. This growth is largely due to increased sales volume of our WinGuard(R) Impact-Resistant Windows and Doors.

--Gross margin percentage for the second quarter was 43.3%, compared to 35.1% in the same quarter of 2005. The primary drivers of gross margin expansion include an increase in sales of our WinGuard impact-resistant products, which carry a higher margin than our other product lines, as well as overall higher prices and improved manufacturing efficiencies. WinGuard sales represented 65.9% of our total sales for the second quarter of 2006, compared to 51.6% for the second quarter of 2005.

--Second quarter net income of $10.0 million grew 169% from $3.7 million for the comparable period of 2005. On an adjusted basis, second quarter net income was $13.0 million, an increase of 239% over the comparable period of 2005.

--Diluted weighted average shares outstanding for the second quarter of 2006 were 18,173,432 compared to 17,221,477 for the same quarter last year. The higher share count was due to the company's initial public offering (IPO), which was completed on June 27, 2006, and inclusion of options in the current year that were considered anti-dilutive last year. Assuming the IPO was completed at the beginning of the respective reporting periods, the pro forma diluted weighted average shares outstanding for the second quarters of 2006 and 2005 were 27,932,643 and 27,368,535, respectively.

--Net income per diluted share for the second quarter of $0.55 increased from $0.22 for the comparable period of 2005. On an adjusted basis, net income per pro forma diluted share of $0.47 increased from $0.14 for the prior year period.

--EBITDA for the second quarter was $27.4 million, an increase of 119%, versus $12.5 million for the comparable period of 2005. On an adjusted basis, EBITDA for the second quarter was $28.4 million, an increase of 122%, versus $12.8 million for the comparable period of 2005.

Commenting on the second quarter results, Jeff Jackson, PGT's Chief Financial Officer, said,…