Cornerstone Building Brands Announces Fourth-Quarter and Ful

|Mar 3|magazine57 min read

CARY, N.C., March 3, 2020 /PRNewswire/ -- Cornerstone Building Brands, Inc. (NYSE: CNR) (the "Company"), a leading provider of exterior building products, today reported fourth-quarter and full-year 2019 financial results.

"I am pleased with both our financial and operational performance," said James S. Metcalf, Chairman and Chief Executive Officer. "Our results demonstrate our ability to drive shareholder value by leveraging our strong market leadership position, delivering meaningful cost savings and improving the balance sheet."

GAAP performance for the fourth quarter and full year 2019 was impacted by the merger between NCI Building Systems, Inc. and Ply Gem Parent, LLC, which was completed on November 16, 2018 (the "Ply Gem Merger").

Fourth-Quarter 2019 Results

  • On a GAAP basis, net sales increased 116.9 percent to $1,244.4 million, and gross profit increased 116.1 percent to $288.0 million, or 23.1 percent of net sales, compared to the prior year period.
  • Net sales declined 1.8 percent from the fourth quarter 2018, on a pro forma basis. Net sales were impacted by softening market demand in the Commercial segment which was partially offset by strength in the Windows segment.
  • Gross profit of $288.0 million or 23.1 percent as a percent of net sales improved 230 basis points over the pro forma fourth quarter 2018 gross profit as a percent of net sales. The increase was primarily driven by positive price, mix and realization of cost savings, which more than offset lower manufacturing leverage from reduced volumes.
  • GAAP net income was $1.9 million, or $0.02 per diluted share, down from $27.4 million, or $0.41 per diluted common share in the fourth quarter of 2018. Net income was impacted by $42.5 million of increased amortization expense associated with the intangibles from the Ply Gem Merger and the Environmental Stoneworks acquisition, $13.5 million of strategic development and acquisition related costs, and $2.5 million of restructuring and impairment charges, partially offset by the $4.2 million tax effect associated with these items.
  • Adjusted EBITDA1 was $158.9 million or 12.8 percent of net sales compared to pro forma Adjusted EBITDA1 of $128.6 million or 10.1 percent of pro forma net sales for the fourth quarter 2018. The 270 basis points improvement was primarily driven by favorable price and mix, net of inflation of $26.0 million, cost savings and synergies of $37.5 million, which more than offset the manufacturing leverage impact of lower volumes and increased SG&A from variable incentive compensation.

Full-Year Fiscal 2019 Results

  • On a GAAP basis, net sales increased 144.4 percent to $4,889.7 million as compared to $2,000.6 million in 2018. On a pro forma basis, net sales declined 4.2 percent to $4,906.0 million as compared to $5,119.5 million in 2018.
  • GAAP net loss was $15.4 million or ($0.12) per diluted share, compared with net income applicable to common shares of $62.7 million or $0.94 per diluted share in 2018.
  • Pro forma Adjusted EBITDA1 was $581.9 million, or 11.9 percent of net sales, representing an improvement of 130 basis points, compared with pro forma Adjusted EBITDA1 for 2018. The improvement is primarily due to price discipline, cost management efforts and realized merger synergies.
  • Total merger synergies and cost savings captured during 2019 were approximately $110 million, $10 million better than target.
  • Reduced net debt to LTM Adjusted pro forma EBITDA1 to 5.4x, approximately a quarter turn better than expectations.

Fourth-Quarter 2019 Results by Segment

Windows

  • On a GAAP basis, net sales were $495.9 million, which included $108.0 million attributable to Silver Line. Ply Gem's acquisition of Silver Line was completed on October 14, 2018.
  • Gross profit was $94.2 million, or 19.0 percent of net sales compared to $80.3 million of gross profit or 17.0 percent of net sales, on a pro forma basis for the fourth quarter of 2018.
  • The 200 basis point gross margin improvement was driven by favorable price and mix, net of inflation and realized savings, which more than offset the lower volumes and related manufacturing impacts.

Siding

  • On a GAAP basis, net sales were $270.8 million, and gross profit was $68.8 million, or 25.4 percent of net sales.
  • Net sales were $267.1 million, and gross profit of $65.0 million or 24.3 percent of net sales, on a pro forma basis for the fourth quarter of 2018.
  • The 110 basis point gross margin improvement was mostly driven by realized cost savings.

Commercial

  • On a GAAP basis, net sales were $477.7 million, and gross profit was $125.0 million, or 26.2 percent of net sales.
  • Net sales were $528.6 million, and gross profit was $118.3 million, or 22.4 percent of net sales, on a pro forma basis for the fourth quarter of 2018.
  • The 380 basis point gross margin improvement was driven by favorable spread and cost savings.

Guidance

First-Quarter 2020 Guidance

  • The Company anticipates mid single-digit growth in net sales over pro forma first quarter 2019 in the combined Windows and Siding segments and about flat net sales in the Commercial segment.
  • Adjusted EBITDA1 is expected to be between $75 million and $90 million.

Additional Fiscal Year 2020 Guidance

We expect:

  • Capital expenditures to be between 2.0 percent and 2.5 percent of net sales.
  • Cash interest of approximately $200 million.
  • Effective tax rate of approximately 30 percent; cash taxes of approximately $60 million.
  • Benefits from primary working capital improvement to generate approximately $50 million of cash.
  • To incur approximately $25 million of restructuring costs to achieve $60 million of savings.

 

(1)

Adjusted financial metrics used in this release for results in 2019 and 2018 are non-GAAP measures and refer to the results for 2019 and 2018.  Pro forma financial metrics used in this release for results in 2018 are also non-GAAP measures and assume the Ply Gem Merger occurred on January 1, 2018 and adjust for other items affecting comparability.  See the reconciliations of GAAP results to adjusted results and pro forma results in the accompanying tables.

Conference Call

The Company will host a conference call at 9:00 a.m. EST on Wednesday, March 4 to discuss its financial performance with investors and securities analysts. The call will be webcast on the Company's website, www.cornerstonebuildingbrands.com, in the Events & Presentations section of the Investors Page.  The dial-in number for the conference call is 1-201-389-0872. After the live webcast, a telephonic replay of the call will be available until March 18, 2020. The replay dial-in number is 1-201-612-7415 and the replay code is 13698973.  Additionally, the slide presentation to be used in connection with the Company's webcast and conference call is available in the Investor Relations section of the Company's website at www.cornerstonebuildingbrands.com.

About Cornerstone Building Brands

Cornerstone Building Brands is a leading manufacturer of exterior building products in North America. Headquartered in Cary, North Carolina, the Company serves residential and commercial customers across new construction and the repair & remodel markets. As the #1 manufacturer of windows, vinyl siding, insulated metal panels, metal roofing and wall systems and metal accessories, Cornerstone Building Brands combines a comprehensive portfolio of products with an expansive national footprint that includes more than 20,000 employees at manufacturing, distribution and office locations throughout North America. For more information, visit us at  www.cornerstonebuildingbrands.com.

Investor Relations
Tina Beskid
919-694-2781
[email protected]

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "anticipate," "guidance," "plan," "potential," "expect," "should," "will," "forecast," "target" and similar expressions are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current expectations, assumptions and/or beliefs concerning future events. As a result, these forward-looking statements rely on a number of assumptions, forecasts, and estimates and, therefore, these forward-looking statements are subject to a number of risks and uncertainties that may cause the Company's actual performance to differ materially from that projected in such statements. Such forward-looking statements may include, but are not limited to, statements concerning our market commentary and performance expectations. Among the factors that could cause actual results to differ materially include, but are not limited to, industry cyclicality and seasonality and adverse weather conditions, challenging economic conditions affecting the nonresidential construction industry, downturns in the residential new construction and repair and remodeling end markets, or the economy or the availability of consumer credit, volatility in the United States ("U.S.") economy and abroad, generally, and in the credit markets, our ability to successfully develop new products or improve existing products, the effects of manufacturing or assembly realignments, seasonality of the business and other external factors beyond our control, commodity price volatility and/or limited availability of raw materials, including steel, PVC resin, glass and aluminum, our ability to identify and develop relationships with a sufficient number of qualified suppliers and to avoid a significant interruption in our supply chains, retention and replacement of key personnel, enforcement and obsolescence of our intellectual property rights, costs related to compliance with, violations of or liabilities under environmental, health and safety laws, changes in building codes and standards, competitive activity and pricing pressure in our industry, our ability to make strategic acquisitions accretive to earnings, our ability to carry out our restructuring plans and to fully realize the expected cost savings, global climate change, including legal, regulatory or market responses thereto, breaches of our information system security measures, damage to our computer infrastructure and software systems, necessary maintenance or replacements to our enterprise resource planning technologies, potential personal injury, property damage or product liability claims or other types of litigation, compliance with certain laws related to our international business operations, increases in labor costs, potential labor disputes, union organizing activity and work stoppages at our facilities or the facilities of our suppliers, significant changes in factors and assumptions used to measure certain of our defined benefit plan obligations and the effect of actual investment returns on pension assets, the cost and difficulty associated with integrating and combining acquired businesses, volatility of the Company's stock price, substantial governance and other rights held by our sponsor investors, the effect on our common stock price caused by transactions engaged in by our sponsor investors, our directors or executives, our substantial indebtedness and our ability to incur substantially more indebtedness, limitations that our debt agreements place on our ability to engage in certain business and financial transactions, our ability to obtain financing on acceptable terms, downgrades of our credit ratings, and the effect of increased interest rates on our ability to service our debt. See also the "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2019, to be filed with the SEC on the date hereof, and other risks described in documents subsequently filed by the Company from time to time with the SEC, which identify other important factors, though not necessarily all such factors, that could cause future outcomes to differ materially from those set forth in the forward-looking statements. The Company expressly disclaims any obligation to release publicly any updates or revisions to these forward-looking statements, whether as a result of new information, future events, or otherwise.

Non-GAAP Financial Measures

This press release includes certain "non-GAAP financial measures" as defined under the Securities Exchange Act of 1934 and in accordance with Regulation G. Management believes the use of such non-GAAP financial measures assists investors in understanding the ongoing operating performance of the Company by presenting the financial results between periods on a more comparable basis. Such non-GAAP financial measures should not be construed as an alternative to reported results determined in accordance with U.S. GAAP. We have included reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and provided in accordance with U.S. GAAP at the end of this release.

 

CORNERSTONE BUILDING BRANDS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)










Three Months Ended


Year Ended


December 31,
2019


October 28,
2018


December 31,
2019


October 28,
2018

Sales

$

1,244,415



$

573,634



$

4,889,747



$

2,000,577


Cost of sales

956,379



440,353



3,801,328



1,537,895


Gross profit

288,036



133,281



1,088,419



462,682



23.1

%


23.2

%


22.3

%


23.1

%









Selling, general and administrative expenses

161,493



78,875



627,861



307,106


Intangible asset amortization

44,878



2,411



177,577



9,648


Restructuring and impairment charges, net

2,538



769



18,060



1,912


Strategic development and acquisition related costs

13,517



11,661



50,185



17,164


Loss on disposition of business







5,673


Gain on insurance recovery







(4,741)


Income from operations

65,610



39,565



214,736



125,920


Interest income

183



22



674



140


Interest expense

(56,128)



(4,895)



(229,262)



(21,808)


Foreign exchange gain (loss)

970



(152)



2,054



(244)


Loss on extinguishment of debt







(21,875)


Other income (expense), net

518



(110)



1,183



962


Income (loss) before income taxes

11,153



34,430



(10,615)



83,095


Provision for income taxes

9,223



6,875



4,775



19,989



82.7

%


20.0

%


(45.0)

%


24.1

%









Net income (loss)

$

1,930



$

27,555



$

(15,390)



$

63,106


Net income allocated to participating securities

(27)



(138)





(412)


Net income (loss) applicable to common shares

$

1,903



$

27,417



$

(15,390)



$

62,694










Income (loss) per common share:








Basic

$

0.02



$

0.41



$

(0.12)



$

0.95


Diluted

$

0.02



$

0.41



$

(0.12)



$

0.94










Weighted average number of common shares outstanding:








Basic

125,722



66,262



125,576



66,260


Diluted

125,761



66,326



125,576



66,362










Increase in sales

116.9

%


17.4

%


144.4

%


13.0

%









Selling, general and administrative expenses percentage of net sales

13.0

%


13.8

%


12.8

%


15.4

%

 

CORNERSTONE BUILDING BRANDS, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)






December 31,
2019


December 31,
2018

ASSETS




Current assets:




Cash and cash equivalents

$

98,386



$

143,847


Restricted cash

3,921



3,760


Accounts receivable, net

491,740



438,505


Inventories, net

439,194



536,675


Income taxes receivable

48,466



1,027


Investments in debt and equity securities, at market

3,776



3,414


Prepaid expenses and other

78,516



69,291


Assets held for sale

1,750



7,272


Total current assets

1,165,749



1,203,791






Property, plant and equipment, net

652,841



614,007


Lease right-of-use assets

316,155




Goodwill

1,669,594



1,640,211


Intangible assets, net

1,740,700



1,669,901


Deferred income taxes

7,510



1,198


Other assets, net

11,797



12,079


Total assets

$

5,564,346



$

5,141,187






LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Current portion of long-term debt

$

25,600



$

25,600


Payable pursuant to a tax receivable agreement



24,760


Accounts payable

205,629



220,857


Accrued compensation and benefits

92,130



72,630


Accrued interest

19,070



41,185


Current portion of lease liabilities

72,428




Other accrued expenses

233,687



265,138


 Total current liabilities

648,544



650,170






Long-term debt

3,156,924



3,085,163


Deferred income taxes

291,987



295,675


Long-term lease liabilities

243,780




Other long-term liabilities

287,793



150,197


 Total long-term liabilities

3,980,484



3,531,035






Common stock

1,261



1,256


Additional paid-in capital

1,248,787



1,237,056


Accumulated deficit

(281,229)



(265,839)


Accumulated other comprehensive loss, net

(32,398)



(10,813)


Treasury stock, at cost

(1,103)



(1,678)


Total stockholders' equity

935,318



959,982






Total liabilities and stockholders' equity

$

5,564,346



$

5,141,187


 

CORNERSTONE BUILDING BRANDS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)


Year Ended


December 31,
2019


October 28,
2018

Cash flows from operating activities:




Net income (loss)

$

(15,390)



$

63,106


Adjustments to reconcile net income (loss) to net cash from operating activities:




Depreciation and amortization

263,764



42,325


Non-cash interest expense

8,504



1,501


Loss on extinguishment of debt



21,875


Share-based compensation expense

14,078



11,638


Loss on disposition of business, net



5,092


Gain on insurance recovery



(4,741)


Non-cash fair value premium on purchased inventory

16,249




Losses (gains) on asset sales, net

321



(502)


Provision for doubtful accounts

2,035



(491)


Deferred income taxes

(6,085)



(889)


Changes in operating assets and liabilities, net of effect of acquisitions:




Accounts receivable

(38,242)



(35,397)


Inventories

91,822



(58,534)


Income taxes

(32,719)



2,605


Prepaid expenses and other

(10,279)



(5,479)


Accounts payable

(21,141)



24,465


Accrued expenses

(40,403)



16,284


Other, net

(2,906)



(395)


Net cash provided by operating activities

229,608



82,463


Cash flows from investing activities:




Acquisitions, net of cash acquired

(179,184)




Capital expenditures

(121,085)



(47,827)


Proceeds from sale of property, plant and equipment

5,511



6,338


Business disposition, net



(1,426)


Proceeds from insurance



4,741


Net cash used in investing activities

(294,758)



(38,174)


Cash flows from financing activities:




Proceeds from stock options exercised



1,279


Proceeds from ABL facility

290,000



100,000


Payments on ABL facility

(220,000)



(100,000)


Proceeds from term loan



415,000


Payments on term loan

(25,620)



(146,221)


Payments on senior notes



(265,470)


Payments on note payable



(1,742)


Payments of financing costs



(6,546)


Payments related to tax withholding for share-based compensation

(1,934)



(5,068)


Purchases of treasury stock



(46,705)


Payments on tax receivable agreement

(24,906)




Net cash provided by (used in) financing activities

17,540



(55,473)


Effect of exchange rate changes on cash and cash equivalents

2,310



(93)


Net decrease in cash, cash equivalents and restricted cash

(45,300)



(11,277)


Cash, cash equivalents and restricted cash at beginning of period

147,607



65,794


Cash, cash equivalents and restricted cash at end of period

$

102,307



$

54,517


 

CORNERSTONE BUILDING BRANDS, INC.

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS

ADJUSTED NET INCOME PER DILUTED COMMON SHARE AND

NET INCOME (LOSS) COMPARISON

(In thousands, except per share data)

(Unaudited)










Three Months Ended


Year Ended


December 31,
2019


October 28,
2018


December 31,
2019


October 28,
2018

Net income (loss) per diluted common share, GAAP basis

$

0.02



$

0.41



$

(0.12)



$

0.94


Restructuring and impairment charges, net

0.02



0.01



0.14



0.03


Strategic development and acquisition related costs

0.11



0.18



0.40



0.26


Loss on disposition of business







0.08


Loss on extinguishment of debt







0.33


Acceleration of CEO retirement benefits







0.07


Gain on insurance recovery







(0.07)


Non cash loss (gain) on foreign currency transactions

(0.01)





(0.02)




Non cash charge of purchase price allocated to inventories





0.13




Customer inventory buybacks








Other, net

0.01





0.04




Tax effect of applicable non-GAAP adjustments(1)

(0.03)



(0.05)



(0.18)



(0.19)


Adjusted net income per diluted common share(2)

$

0.11



$

0.55



$

0.39



$

1.45











Three Months Ended


Year Ended


December 31,
2019


October 28,
2018


December 31,
2019


October 28,
2018

Net income (loss) applicable to common shares, GAAP basis

$

1,903



$

27,417



$

(15,390)



$

62,694


Restructuring and impairment charges, net

2,538



769



18,060



1,912


Strategic development and acquisition related costs

13,517



11,661



50,185



17,164


Loss on disposition of business







5,673


Loss on extinguishment of debt







21,875


Acceleration of CEO retirement benefits







4,600


Gain on insurance recovery







(4,741)


Non cash loss (gain) on foreign currency transactions

(970)



152



(2,054)



244


Non cash charge of purchase price allocated to inventories





16,249




Customer inventory buybacks





576




Other, net

946





4,726



(323)


Tax effect of applicable non-GAAP adjustments(1)

(4,168)



(3,460)



(22,813)



(12,850)


Adjusted net income applicable to common shares(2)

$

13,766



$

36,539



$

49,539



$

96,248




(1)

The Company calculated the tax effect of non-GAAP adjustments by applying the applicable federal and state statutory tax rate for the period to each applicable non-GAAP item.



(2)

The Company discloses a tabular comparison of Adjusted net income (loss) per diluted common share and Adjusted net  income (loss) applicable to common shares, which are non-GAAP measures, because they are referred to in the text of our press releases and are instrumental in comparing the results from period to period. Adjusted net income (loss) per diluted common share and Adjusted net income (loss) applicable to common shares should not be considered in isolation or as a substitute for net income (loss) per diluted common share and net income (loss) applicable to common shares as reported on the face of our consolidated statements of operations.



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.

 

CORNERSTONE BUILDING BRANDS, INC.

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS

(In thousands)

(Unaudited)








Three Months Ended


Year Ended


December 31,
2019


October 28,
2018


December 31,
2019


October 28,
2018

Operating income, GAAP

$

65,610



$

39,565



$

214,736



$

125,920


Restructuring and impairment charges, net

2,538



769



18,060



1,912


Strategic development and acquisition related costs

13,517



11,661



50,185



17,164


Loss on disposition of business







5,673


Acceleration of CEO retirement benefits







4,600


Gain on insurance recovery







(4,741)


Non cash charge of purchase price allocated to inventories





16,249




Customer inventory buybacks





576




Other, net

946





4,726



(323)


Adjusted operating income

82,611



51,995



304,532



150,205










Other income (loss), net

518



(110)



1,183



962


Depreciation and amortization

72,279



11,351



263,764



42,325


Share-based compensation expense

3,465



2,729



14,078



8,038


Adjusted EBITDA

$

158,873



$

65,965



$

583,557



$

201,530










Impact of Environmental Stoneworks acquisition(1)





(1,679)




Impact of other acquisitions(2)



78,771





349,049


Change in fiscal period(3)(4)



(16,161)





(10,612)


Pro Forma Adjusted EBITDA

$

158,873



$

128,575



$

581,878



$

539,967










(1)  Reflects the Adjusted EBITDA of Environmental Stoneworks for the period January 1, 2019 to the acquisition date of February 20, 2019.

(2)  Acquisitions reflect the estimated impact of combining Ply Gem, Atrium, Silver Line and Environmental Stoneworks.

(3)  The change in fiscal period reflects the estimated impact from moving from a 52/53 week fiscal year-end to a four-four-five week calendar year.

(4)  Includes change to FX gain/loss recognition.

 

CORNERSTONE BUILDING BRANDS, INC.

BUSINESS SEGMENTS

(In thousands)

(Unaudited)










Three Months Ended




December 31, 2019


October 28, 2018





% of
Net Sales



% of
Net Sales


% Change

Net Sales








Commercial

$

477,741


38.4

%


$

573,634


100.0

%


(16.7)

%

Siding

270,806


21.8

%



%


100.0

%

Windows

495,868


39.8

%



%


100.0

%

Total net sales

$

1,244,415


100.0

%


$

573,634


100.0

%


116.9

%









Gross Profit








Commercial

$

125,036


26.2

%


$

133,281


23.2

%


(6.2)

%

Siding

68,757


25.4

%



%


100.0

%

Windows

94,243


19.0

%



%


100.0

%

Total gross profit

$

288,036


23.1

%


$

133,281


23.2

%


116.1

%









Operating Income








Commercial

$

58,637


12.3

%


$

72,580


12.7

%


(19.2)

%

Siding

14,927


5.5

%



%


100.0

%

Windows

30,499


6.2

%



%


100.0

%

Corporate

(38,453)




(33,015)


%


(16.5)

%

Total operating income

$

65,610


5.3

%


$

39,565


6.9

%


65.8

%


















Year Ended




December 31, 2019


October 28, 2018





% of
Net Sales



% of
Net Sales


% Change

Net Sales








Commercial

$

1,847,893


37.8

%


$

2,000,577


100.0

%


(7.6)

%

Siding

1,111,407


22.7

%



%


100.0

%

Windows

1,930,447


39.5

%



%


100.0

%

Total net sales

$

4,889,747


100.0

%


$

2,000,577


100.0

%


144.4

%









Gross Profit








Commercial

$

457,747


24.8

%


$

462,682


23.1

%


(1.1)

%

Siding

277,583


25.0

%



%


100.0

%

Windows

353,089


18.3

%



%


100.0

%

Total gross profit

$

1,088,419


22.3

%


$

462,682


23.1

%


135.2

%









Operating Income








Commercial

$

201,073


10.9

%


$

230,365


11.5

%


(12.7)

%

Siding

66,273


6.0

%



%


100.0

%

Windows

92,538


4.8

%



%


100.0

%

Corporate

(145,148)




(104,445)


%


(39.0)

%

Total operating income

$

214,736


4.4

%


$

125,920


6.3

%


70.5

%


 

CORNERSTONE BUILDING BRANDS, INC.

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS

RECONCILIATION OF PRO FORMA SEGMENT INFORMATION

(In thousands)

(Unaudited)














Reported


Acquisitions (1)


Change in Fiscal
Period (2)


Pro Forma


% of
Net Sales

Three months ended October 28, 2018











Net Sales











Commercial


$

573,634



$



$

(45,024)



$

528,610




Siding




267,118





267,118




Windows




471,825





471,825




Total Net Sales


$

573,634



$

738,943



$

(45,024)



$

1,267,553















Gross Profit











Commercial


$

133,281



$



$

(14,938)



$

118,343



22.4

%

Siding




64,973





64,973



24.3

%

Windows




80,316





80,316



17.0

%

Total Gross Profit


$

133,281



$

145,289



$

(14,938)



$

263,632



20.8

%












Year Ended December 31, 2018











Net Sales











Commercial


$

2,000,577



$



$

14,376



$

2,014,953




Siding




1,127,331





1,127,331




Windows




1,977,203





1,977,203




Total Net Sales


$

2,000,577



$

3,104,534



$

14,376



$

5,119,487















Gross Profit











Commercial


$

462,682



$



$

(3,660)



$

459,022



22.8

%

Siding




284,123





284,123



25.2

%

Windows




347,950





347,950



17.6

%

Total Gross Profit


$

462,682



$

632,073



$

(3,660)



$

1,091,095



21.3

%

 



Reported


Acquisitions (1)(3)


Pro Forma


% of Net Sales

Year Ended December 31, 2019









Net Sales









Commercial


$

1,847,893



$



$

1,847,893




Siding


1,111,407



16,229



1,127,636




Windows


1,930,447





1,930,447




Total Net Sales


$

4,889,747



$

16,229



$

4,905,976













Gross Profit









Commercial


$

457,747



$



$

457,747



24.8

%

Siding


277,583



18,015



295,598



26.2

%

Windows


353,089





353,089



18.3

%

Total Gross Profit


$

1,088,419



$

18,015



$

1,106,434



22.6

%










(1) Acquisitions reflect the estimated impact of combining Ply Gem, Atrium, Silver Line and Environmental Stoneworks.

(2) Change in fiscal period reflects the estimated impact from moving from a 52/53 week fiscal year-end to a four-four-five calendar year.

(3) Gross margin adjustment for the non-cash inventory fair value step-up of $16.2 million associated with the Ply Gem merger and Environmental Stoneworks acquisition.

 

Cision View original content:http://www.prnewswire.com/news-releases/cornerstone-building-brands-announces-fourth-quarter-and-full-year-2019-results-301015811.html

SOURCE Cornerstone Building Brands, Inc.