UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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)       August 7, 2017  

PLY GEM HOLDINGS, INC.
(Exact Name of Registrant as Specified in Its Charter)

	
			
Delaware	001-35930	20-0645710	
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)	

	
		
5020 WESTON PARKWAY, SUITE 400
CARY, NORTH CAROLINA	 
27513	
(Address of principal executive offices)	(Zip Code)	

(919) 677-3900
(Registrant’s Telephone Number, Including Area Code)

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 Instruction A.2. below):

o       Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o       Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o       Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17CFR 240.14d-2(b))

o       Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17CFR 240.13e-4(c))

FORWARD-LOOKING INFORMATION

Certain statements made in this Form 8-K, including any statements as to future results of operations and financial projections, may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are based on management's expectations, estimates, projections and assumptions. These statements are not guarantees of future performance and involve certain risks and uncertainties which are difficult to predict. Therefore, actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors. Additional information regarding these factors is contained in Ply Gem Holdings, Inc.'s filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K.

ITEM 2.02                                  RESULTS OF OPERATIONS AND FINANCIAL CONDITION
 
On August 7, 2017, Ply Gem Holdings, Inc. (the "Company") reported its results of operations for its fiscal quarter ended July 1, 2017.  A copy of the press release issued by the Company concerning the foregoing results is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.

The information under Item 2.02 of this Form 8-K and the accompanying exhibit are being furnished under Item 2.02 and shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act"), or otherwise subject to the liability of such section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, regardless of the general incorporation language of such filing, except as shall be expressly set forth by specific reference in such filing.

ITEM 9.01                                  FINANCIAL STATEMENTS AND EXHIBITS
 
99.1          Press Release, dated August 7, 2017

SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report on Form 8-K to be signed on its behalf by the undersigned, thereunto duly authorized.
 
Dated:  August 7, 2017

	
		
 	PLY GEM HOLDINGS, INC.	
 	 	
 	By:     /s/ Shawn K. Poe                    	
 	Name:  Shawn K. Poe	
 	Title:  Executive Vice President, Chief Financial Officer, and Secretary	

EXHIBIT LIST

	
		
Exhibit	Description	
 	 	
99.1	Press Release, dated August 7, 2017.	

Ply Gem Reports Second Quarter 2017 Results

•	Net sales increased 6.7% to $544.8 million for the second quarter.	
		
•	Operating earnings increased $3.9 million to $66.1 million for the second quarter.	
		
•	Net income was $29.9 million for the second quarter.	
		
•	Adjusted EBITDA increased to $81.1 million or 5.4% for the second quarter.	

Cary, NC (BUSINESS WIRE) August 7, 2017 - Ply Gem Holdings, Inc. (“Ply Gem” or the “Company”) (NYSE: PGEM), a leading manufacturer of exterior building products in North America, today announced financial results for the quarter ended July 1, 2017.

Second Quarter 2017 Highlights:

•	Total net sales for the second quarter increased 6.7% to $544.8 million.	
		
•	Operating earnings increased $3.9 million to $66.1 million compared to the second quarter of 2016.	
		
•	Net income for the second quarter decreased $11.8 million to $29.9 million from the second quarter of 2016 due to a $17.5 million increase in income tax expense from a normalized tax rate.	
		
•	Adjusted EBITDA increased 5.4% to $81.1 million compared to $76.9 million for the second quarter of 2016 achieving an LTM Adjusted EBITDA of $235.6 million.	
		
•	Basic earnings per share was $0.44 for the second quarter of 2017 compared to $0.61 for the 2016 period.	
		
•	Adjusted basic earnings per share was $0.45 for the second quarter of 2017 compared to $0.62 for the second quarter of 2016.	

Six Month 2017 Highlights:

•	Total net sales for the six months ended July 1, 2017 increased 6.1% to $974.8 million.	
		
•	Operating earnings increased $6.2 million to $77.9 million compared to $71.8 million for the comparable 2016 period.	
		
•	Net income increased $12.2 million to $26.2 million for the six month 2017 period from $14.1 million for the 2016 period due to the lack of a tax receivable adjustment partially offset by higher income tax expense.	
		
•	Adjusted EBITDA increased to $108.2 million or 6.4%.	
		
•	Basic earnings per share was $0.38 for the 2017 six month period compared to $0.21 for the 2016 six month period.	
		
•	Adjusted basic earnings per share was $0.41 for the 2017 six month period compared to $0.41 for the 2016 six month period.	

“For the second quarter, we continued to experience improved demand for our products within our business segments, which allowed Ply Gem to achieve record sales and adjusted EBITDA. In addition, we delivered the thirteenth consecutive year-over-year growth of adjusted EBITDA,” said Gary E. Robinette, Ply Gem’s Chairman and CEO. “We delivered a strong second quarter result despite somewhat of a pullback in market demand and significant commodity cost headwinds, namely PVC resin and aluminum costs. Our businesses have implemented additional price increases, which should be realized during the remainder of 2017, to help offset these rising raw material costs. In addition, we are embarking upon a significant profit improvement initiative across our business through operational excellence, cost rationalization, SG&A efficiency and cost maximization that will enhance the profitability of the overall business during the next few years.”

Commenting on the Company’s results, Shawn K. Poe, Ply Gem’s Chief Financial Officer added, “In the second quarter, we continued to see overall strong unit demand for our products, which allowed us to achieve an incremental year-over-year quarterly adjusted EBITDA growth of 5.4% and a record second quarter adjusted EBITDA of $81.1 million. As a result of our strong performance during the second quarter of 2017, we achieved a LTM adjusted EBITDA of $235.6 million.”

Second Quarter 2017 Financial Results
Net sales increased $34.2 million or 6.7% to $544.8 million compared to $510.5 million for the second quarter of 2016. The net sales increase was primarily driven by improved U.S. market demand, higher Canadian net sales, new business wins and higher average selling prices.

Gross profit margin was 25.1%, which represented a decrease of 140 basis points from the second quarter of 2016. The decrease in gross profit margin resulted from higher raw material input costs for aluminum, PVC resin, and glass that were not fully offset with higher selling prices.

Operating earnings were $66.1 million, an improvement of $3.9 million from the second quarter of 2016 from lower SG&A expense as a percentage of net sales and lower amortization expense in 2017.

Siding, Fencing and Stone
Siding, Fencing and Stone's net sales totaled $263.6 million, up $19.2 million, or 7.8%, compared to $244.4 million in the second quarter of 2016. The net sales increase resulted primarily from improved U.S. market conditions, new business wins and higher average selling prices. Gross profit margin for the quarter ended July 1, 2017 was 27.7%, a decrease of 410 basis points from the 31.8% for the quarter ended July 2, 2016. The decrease in gross margin percentage resulted from higher raw material input costs that fully offset the 7.8% net sales increase and a 1.7% net increase in average selling prices.

Windows and Doors
Windows and Doors' net sales totaled $281.2 million, up $15.0 million, or 5.7%, compared to $266.1 million in the second quarter of 2016. The net sales increase for the quarter ended July 1, 2017 can be attributed to improved U.S. market demand conditions which favorably impacted our new construction business. For the quarter ended July 1, 2017 compared to the quarter ended July 2, 2016, our U.S. new construction business increased $12.3 million or 7.4% while our U.S. repair and remodeling business decreased $1.0 million or 1.3% as a result of lower unit volume sales of 4.2%.

Gross profit margin was 22.7% for the quarter ended July 1, 2017, increasing from 21.6% for the quarter ended July 2, 2016. Our gross profit increase of 110 basis points resulted from the continued improvement in our new construction business and the sustained profitable performance for our repair and remodeling business within the U.S. while our Canadian business experienced improved gross profit of $1.5 million relative to the prior year period. The gross profit improvement for our U.S. businesses was primarily driven by increased selling prices of 2.9% and favorable product mix, which increased gross profit $4.8 million while our repair and remodeling business remained flat during the quarter ended July 1, 2017 compared to the quarter ended July 2, 2016.

Outlook
The Company’s 2017 annual outlook is based on a U.S. single family housing starts market growth assumption of 5% to 10% in our markets and an assumption of approximately 3% growth in the U.S. big ticket repair and remodel market.

“As we enter into the seasonally important third quarter, we look forward to capitalizing on the momentum we’ve built during the first half of 2017,” said Mr. Robinette. “As the housing market in the U.S. continues to recover and we get on the positive side of commodities, Ply Gem is well positioned to drive profitable growth and generate meaningful operating leverage, earnings and cash flow. For the remainder of 2017, we expect our full year 2017 adjusted EBITDA to be in the range of $250 to $255 million and our third quarter adjusted EBITDA to be in the $82.5 million range.”

Webcast
Ply Gem management will host a webcast today, Monday, August 7, 2017 at 10:00 a.m. Eastern to discuss second quarter results. To access the webcast, visit www.plygem.com and click on Investor Relations. The webcast link will be available under “Upcoming Events” as well as "Events & Presentations." If internet access is not available, please dial 833-227-5844, participant passcode 54718989. International participants, please dial 647-788-4901, participant passcode 54718989. A replay of the call will be available on our website through September 7th.

About Ply Gem
Ply Gem is a leading manufacturer of exterior building products in North America. Ply Gem produces a comprehensive product line of windows and patio doors, vinyl and aluminum siding and accessories, designer accents, cellular PVC trim and mouldings, vinyl fencing and railing, stone veneer, engineered slate and shake roofing and gutterware, used in both new construction and home repair and remodeling in the United States and Canada. Ply Gem siding brands include Mastic Home Exteriors®, Variform®, NAPCO®, Mitten®, Cellwood®, Georgia-Pacific Vinyl Siding and Accessories, Durabuilt®, Ply Gem® Stone, Canyon Stone, Ply Gem® Trim and Mouldings, Ply Gem® Fence and Railing, Ply Gem® Shutters and Accents, Leaf Relief®, Leaf Logic®, and Monticello® Columns. Ply Gem windows and patio door brands include Ply Gem® Windows, Simonton® Windows, Mastic® Replacement Windows, Ply Gem® Canada, and Great Lakes® Window. The Company’s brands are sold through short-line and two-step distributors, pro dealers, home improvement dealers and big box retailers. Additionally, Ply Gem distributes a wide-variety of exterior building products including stone veneer, fencing, railing, windows, doors and architectural accents via export globally and offers installation services in western Canada under the Gienow® Renovations by Ply Gem brand. Ply Gem employs approximately 9,000 associates across North America. Visit www.plygem.com for more information.    

Note: As used herein, the term “Ply Gem” refers to Ply Gem Holdings, Inc. and all its subsidiaries, including Ply Gem Industries, Inc., unless the context indicates otherwise. This term is used for convenience only and is not intended as a precise description of any of the separate corporations .

Forward-Looking Statements
This press release and oral statements made from time to time by our representatives may contain certain statements that are not historical facts, including information concerning possible or assumed future results of our operations. Those statements constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that could cause our actual results to differ materially from the results expressed in or implied by our forward-looking statements, including the availability and cost of raw materials and purchased components, the level of construction and remodeling activity, changes in general economic and business conditions, conditions affecting the industries we serve and our customers, the rate of sales growth, availability of labor force and efficiencies, product liability claims, our degree of leverage and other factors discussed in our news releases, public statements and/or filings with the Securities and Exchange Commission, including our most recent Annual and Quarterly Reports on Form 10-K and Form 10-Q. Many of these factors are outside of our control and all of these factors are difficult or impossible to predict accurately. We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
###

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	
									
 	 	For the three months ended	
(Amounts in thousands, except share and per share data)	 	July 1, 2017	 	July 2, 2016	
 	 	 	 	 	
Net sales	 	$	544,767		 	$	510,545		
Cost of products sold	 	407,879		 	375,256		
Gross profit	 	136,888		 	135,289		
Operating expenses:	 	 	 	 	
Selling, general and administrative expenses	 	65,531		 	66,648		
Amortization of intangible assets	 	5,258		 	6,459		
Total operating expenses	 	70,789		 	73,107		
Operating earnings	 	66,099		 	62,182		
Foreign currency gain	 	617		 	255		
Interest expense	 	(17,399	)	 	(18,534	)	
Interest income	 	19		 	9		
Tax receivable agreement liability adjustment	 	—		 	(241	)	
Income before provision for income taxes	 	49,336		 	43,671		
Provision for income taxes	 	19,477		 	2,025		
Net income	 	$	29,859		 	$	41,646		
Net income attributable to common shareholders per share:	 	 	 	 	
Basic	 	$	0.44		 	$	0.61		
Diluted	 	0.43		 	$	0.61		
Weighted average shares outstanding:	 	 	 	 	
Basic	 	68,435,315		 	68,159,907		
Diluted	 	69,019,692		 	68,370,548		

	
									
 	 	For the six months ended	
(Amounts in thousands, except share and per share data)	 	July 1, 2017	 	July 2, 2016	
 	 	 	 	 	
Net sales	 	$	974,782		 	$	919,159		
Cost of products sold	 	748,369		 	697,169		
Gross profit	 	226,413		 	221,990		
Operating expenses:	 	 	 	 	
Selling, general and administrative expenses	 	137,886		 	137,383		
Amortization of intangible assets	 	10,602		 	12,849		
Total operating expenses	 	148,488		 	150,232		
Operating earnings	 	77,925		 	71,758		
Foreign currency gain	 	772		 	839		
Interest expense	 	(34,285	)	 	(37,226	)	
Interest income	 	33		 	19		
Loss on modification or extinguishment of debt	 	—		 	(2,399	)	
Tax receivable agreement liability adjustment	 	—		 	(18,391	)	
Income before provision for income taxes	 	44,445		 	14,600		
Provision for income taxes	 	18,223		 	531		
Net income	 	$	26,222		 	$	14,069		
Net income attributable to common shareholders per share:	 	 	 	 	
Basic	 	$	0.38		 	$	0.21		
Diluted	 	$	0.38		 	$	0.21		
Weighted average shares outstanding:	 	 	 	 	
Basic	 	68,417,602		 	68,143,523		
Diluted	 	68,988,527		 	68,219,762		

The accompanying notes are an integral part of these unaudited condensed consolidated statements of operations.

1. The accompanying unaudited condensed consolidated statements of operations of Ply Gem Holdings, Inc. (the “Company”) do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.

The selected balance sheet data for the periods presented in Note 5 has been derived from the December 31, 2016 audited consolidated financial statements of the Company and the unaudited condensed consolidated financial statements of the Company as of July 1, 2017, and does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.

The Company’s fiscal quarters are based on periods ending on the Saturday of the last week in the quarter. Therefore, the financial results of certain fiscal quarters will not be exactly comparable to the prior and subsequent fiscal quarters.

2.    We define adjusted EBITDA as net income plus interest expense (net of interest income), provision (benefit) for income taxes, depreciation and amortization, non-cash foreign currency loss (gain), non-cash loss on modification or extinguishment of debt, restructuring and integration expenses, customer inventory buybacks, litigation class action charges, and tax receivable liability adjustments. Other companies may define adjusted EBITDA differently and, as a result, our measure of adjusted EBITDA may not be directly comparable to adjusted EBITDA of other companies. Management believes that the presentation of adjusted EBITDA included in this press release provides useful information to investors regarding our results of operations because it assists both investors and management in analyzing and benchmarking the performance and value of our business. The Company has included adjusted EBITDA because it is a key financial measure used by management to (i) internally measure our operating performance and (ii) determine our incentive compensation programs. In addition, the Company's senior secured asset-based revolving credit facility has certain covenants that apply ratios utilizing this measure of adjusted EBITDA.

Adjusted EPS represents basic and diluted net loss per share attributed to common shareholders adjusted to exclude the estimated per share impact of the specifically identified items used to calculate adjusted EBITDA described above, adjusted at the statutory tax rate of 35%.

Although we use adjusted EBITDA and adjusted EPS as financial measures to assess the performance of our business, the use of adjusted EBITDA and adjusted EPS is limited because it does not include certain material costs, such as interest and taxes, necessary to operate our business. Adjusted EBITDA and adjusted EPS included in this press release should be considered in addition to, and not as a substitute for, net earnings and earnings per share in accordance with GAAP as a performance measure. You are cautioned not to place undue reliance on adjusted EBITDA or adjusted EPS.

Certain amounts in this release have been subject to rounding adjustments. Accordingly, amounts shown as totals may not be the arithmetic aggregation of the individual amounts that comprise or precede them.

	
									
 	 	Ply Gem Holdings, Inc.	
(Amounts in thousands)	 	For the three months ended	
 	 	July 1, 2017	 	July 2, 2016	
Net income	 	$	29,859		 	$	41,646		
Interest expense, net	 	17,380		 	18,525		
Provision for income taxes	 	19,477		 	2,025		
Depreciation and amortization	 	13,102		 	14,313		
EBITDA	 	79,818		 	76,509		
Non cash gain on foreign currency transactions	 	(617	)	 	(255	)	
Customer inventory buybacks	 	632		 	596		
Restructuring/integration expense	 	455		 	(156	)	
Litigation - class action charges, net	 	825		 	—		
Tax receivable agreement liability adjustment	 	—		 	241		
Adjusted EBITDA	 	$	81,113		 	$	76,935		

 	 	Ply Gem Holdings, Inc.	
 	 	For the three months ended	
 	 	July 1, 2017	 	July 2, 2016	
Basic net income per share attributable to common shareholders	 	$	0.44		 	$	0.61		
Non cash gain on foreign currency transactions	 	(0.01	)	 	—		
Customer inventory buybacks	 	0.01		 	0.01		
Restructuring/integration expense	 	—		 	—		
Litigation - class action charges, net	 	0.01		 	—		
Tax receivable agreement liability adjustment	 	—		 	—		
Adjusted Basic EPS	 	$	0.45		 	$	0.62		
 	 	 	 	 	
Basic weighted average shares outstanding	 	68,435,315		 	68,159,907		
 	 	 	 	 	
Diluted net income per share attributable to common shareholders	 	$	0.43		 	$	0.61		
Non cash gain on foreign currency transactions	 	(0.01	)	 	—		
Customer inventory buybacks	 	0.01		 	0.01		
Restructuring/integration expense	 	—		 	—		
Litigation - class action charges, net	 	0.01		 	—		
Tax receivable agreement liability adjustment	 	—		 	—		
Adjusted Diluted EPS	 	$	0.44		 	$	0.61		
 	 	 	 	 	
Diluted weighted average shares outstanding	 	69,019,692		 	68,370,548		

	
									
 	 	Ply Gem Holdings, Inc.	
(Amounts in thousands)	 	For the six months ended	
 	 	July 1, 2017	 	July 2, 2016	
Net income	 	$	26,222		 	$	14,069		
Interest expense, net	 	34,252		 	37,207		
Provision for income taxes	 	18,223		 	531		
Depreciation and amortization	 	26,555		 	28,343		
EBITDA	 	105,252		 	80,150		
Non cash gain on foreign currency transactions	 	(772	)	 	(839	)	
Customer inventory buybacks	 	1,198		 	1,067		
Restructuring/integration expense	 	1,412		 	497		
Litigation - class action charges, net	 	1,113		 	—		
Tax receivable agreement liability adjustment	 	—		 	18,391		
Loss on modification or extinguishment of debt	 	—		 	2,399		
Adjusted EBITDA	 	$	108,203		 	$	101,665		

 	 	Ply Gem Holdings, Inc.	
 	 	For the six months ended	
 	 	July 1, 2017	 	July 2, 2016	
Basic net income per share attributable to common shareholders	 	$	0.38		 	$	0.21		
Non cash gain on foreign currency transactions	 	(0.01	)	 	(0.01	)	
Customer inventory buybacks	 	0.01		 	0.01		
Restructuring/integration expense	 	0.01		 	—		
Litigation - class action charges, net	 	0.01		 	—		
Tax receivable agreement liability adjustment	 	—		 	0.18		
Loss on modification or extinguishment of debt	 	—		 	0.02		
Adjusted Basic EPS	 	$	0.41		 	$	0.41		
 	 	 	 	 	
Basic weighted average shares outstanding	 	68,417,602		 	68,143,523		
 	 	 	 	 	
Diluted net income per share attributable to common shareholders	 	$	0.38		 	$	0.21		
Non cash gain on foreign currency transactions	 	(0.01	)	 	(0.01	)	
Customer inventory buybacks	 	0.01		 	0.01		
Restructuring/integration expense	 	0.01		 	—		
Litigation - class action charges, net	 	0.01		 	—		
Tax receivable agreement liability adjustment	 	—		 	0.18		
Loss on modification or extinguishment of debt	 	—		 	0.02		
Adjusted Diluted EPS	 	$	0.41		 	$	0.41		
 	 	 	 	 	
Diluted weighted average shares outstanding	 	68,988,527		 	68,219,762		

		
3.	Operating segment results for the three and six months ended July 1, 2017 and July 2, 2016 are as follows:	

	
													
 	 	For the three months ended	
(Amounts in thousands)	 	July 1, 2017	 	 	July 2, 2016	 	
Net sales	 	 	 	 	 	 	
Siding, Fencing and Stone	 	$	263,593		48	 %	 	$	244,411		48	 %	
Windows and Doors	 	281,174		52	 %	 	266,134		52	 %	
 	 	$	544,767		100	 %	 	$	510,545		100	 %	
Gross profit	 	 		 	 	 		 	
Siding, Fencing and Stone	 	$	73,032		28	 %	 	$	77,747		32	 %	
Windows and Doors	 	63,856		23	 %	 	57,542		22	 %	
 	 	$	136,888		25	 %	 	$	135,289		26	 %	
 	 	 	 	 	 	 	
Operating earnings (loss)	 	 		 	 	 		 	
Siding, Fencing and Stone	 	$	47,580		18	 %	 	$	51,305		21	 %	
Windows and Doors	 	24,725		9	 %	 	18,001		7	 %	
Unallocated	 	(6,206	)	(1	)%	 	(7,124	)	(1	)%	
 	 	$	66,099		12	 %	 	$	62,182		12	 %	

													
 	 	For the six months ended	
(Amounts in thousands)	 	July 1, 2017	 	 	July 2, 2016	 	
Net sales	 	 	 	 	 	 	
Siding, Fencing and Stone	 	$	454,430		47	 %	 	$	420,787		46	 %	
Windows and Doors	 	520,352		53	 %	 	498,372		54	 %	
 	 	$	974,782		100	 %	 	$	919,159		100	 %	
Gross profit	 	 		 	 	 		 	
Siding, Fencing and Stone	 	$	118,995		26	 %	 	$	124,011		29	 %	
Windows and Doors	 	107,418		21	 %	 	97,979		20	 %	
 	 	$	226,413		23	 %	 	$	221,990		24	 %	
 	 	 	 	 	 	 	
Operating earnings (loss)	 	 		 	 	 		 	
Siding, Fencing and Stone	 	$	67,403		15	 %	 	$	71,678		17	 %	
Windows and Doors	 	26,154		5	 %	 	16,751		3	 %	
Unallocated	 	(15,632	)	(2	)%	 	(16,671	)	(2	)%	
 	 	$	77,925		8	 %	 	$	71,758		8	 %	

		
4.	Long-term debt amounts in the selected balance sheets at July 1, 2017 and December 31, 2016 consisted of the following:	

	
									
(Amounts in thousands)	 	July 1, 2017	 	December 31, 2016	
 	 	 	 	 	
Senior secured asset based revolving credit facility	 	$	—		 	$	—		
6.50% Senior notes due 2022, net of unamortized early tender premium,	 	 	 	 	
discount and debt issuance costs of $45,893 and $49,935, respectively	 	604,107		 	600,065		
Term Loan Facility due 2021, net of unamortized early tender premium,	 	 	 	 	
discount and debt issuance costs of $15,200 and $17,854, respectively	 	240,825		 	240,321		
 	 	$	844,932		 	$	840,386		
Less current portion of long-term debt	 	(4,300	)	 	(4,300	)	
 	 	$	840,632		 	$	836,086		

		
5.	The following is a summary of selected balance sheet amounts at July 1, 2017 and December 31, 2016:	

	
									
(Amounts in thousands)	 	July 1, 2017	 	December 31, 2016	
 	 	 	 	 	
Cash and cash equivalents	 	$	7,172		 	$	51,597		
Accounts receivable, less allowances	 	296,133		 	209,919		
Inventories	 	194,886		 	161,956		
Prepaid expenses and other current assets	 	28,123		 	26,850		
Property and equipment, net	 	167,587		 	165,556		
Intangible assets, net	 	93,955		 	104,159		
Goodwill	 	479,525		 	478,514		
Accounts payable	 	102,587		 	75,398		
Payable to related parties pursuant to tax receivable agreement-current	 	25,383		 	25,383		
Payable to related parties pursuant to tax receivable agreement-non-current	 	54,336		 	54,336		
Long-term debt	 	840,632		 	836,086		
Stockholders' equity	 	35,782		 	4,106		

Ply Gem Holdings, Inc.
Investor Relations Contact:
investors@plygem.com
919-677-3901