PGT Innovations, Inc.

Good morning and welcome to PGT Innovation's third quarter 2023 earnings call. All participants are in listen-only mode. I'd now like to turn the conference over to PGT Innovation's Senior Vice President of Corporate Development, Brad West. Please go ahead.

Thank you. Good morning and welcome to the PGT Innovation's third quarter 2023 conference call. With me on the call today are President and CEO Jeff Jackson and our Interim Chief Financial Officer Craig Henderson. On the investor relations section of our company website, you will find the earnings press release issued earlier today, as well as the slide presentation we have posted to accompany today's discussion. This webcast is being recorded and will be available for replay on the company's website. Before we begin our prepared remarks, please direct your attention to the disclosure statement on slide two of the presentation, as well as the disclaimers included in the earnings press release and our SEC filings that discuss forward-looking statements. Today's remarks contain forward-looking statements, including statements about our 2023 financial performance outlook. Those statements involve risks, uncertainties, and other factors that could cause actual results to differ materially. Initial information on factors that could cause actual results to differ from expected results is available in the company's most recent SEC file. Additionally, on slide three, note that we report results using non-financial measures, which we believe provide additional information to help investors compare performance between reporting periods. A reconciliation to the most directly comparable gap measures, when available, is included in the tables in the earnings release and in the slide presentation appendix. At this time, I will now hand over the call to our company CEO and President, Jeff Jackson.

Thank you, Brad. Good morning, everyone, and thanks for joining us today. Before we get into our quarterly earnings results, I want to acknowledge the recent transaction rumors, and market speculations in the media. We are not going to comment on those rumors today and are focused on presenting our strong earnings results. We continue to engage in constructive dialogue with all our investors, and we welcome their perspectives. We are always open to opportunities to maximize shareholder value. With that, let me get to today's earnings results. Our third quarter financial results released earlier today showcase our ability to meet the growing demand for our products in this current dynamic market conditions we are operating in. Our balanced exposure to both new construction and repair and remodeling channels is a structural advantage that enables our team to consistently deliver record sales and solid profits over the past year. Our third quarter financial results are strong evidence that demand for our premium products remains strong. and that the entire team is executing on all cylinders. Our team members are at the heart of our continued success, and in recognition of their efforts, we announced during the third quarter a special grant of 395,000 shares of restricted stock to those team members who do not participate in the company's long-term incentive plan. Turning to slide four, we delivered total revenue of $400 million and adjusted EBITDA of $78 million or 19.6% in the third quarter. We were able to deliver strong profitability in the quarter due to our continued focus on productivity and operational execution. Our year-over-year revenue growth of 4% and our adjusted EBITDA increase was 15% versus the prior year third quarter. The year-over-year sales growth was driven by an 11% increase in the repair and remodeling channels, partially offset by continued weakness in new construction, which declined 7%. The strong demand for our products continues, despite the impact of high interest rates on current housing market conditions. We continue to maintain a normal price-cost relationship, and our industry-leading lead times, quality, service, and value proposition are helping us drive increased market penetration across our brands and geographies. Next, on slide five, let's take a closer look at the third quarter, our sales trends, and key initiatives. Sales in our southeast segment were a record $303 million, an increase of 5% versus the prior year third quarter, and also 5% sequentially. Our Southeast results show the power of our brands in both the new construction and repair and remodeling channels. Our year-over-year revenue growth was driven by a 5% increase in R&R sales and a 6% increase in new construction sales. The prior year quarter was impacted by Hurricane Ian, where $12 million in sales were deferred into the fourth quarter of 2022. Order demand in the Southeast increased 16%, versus the prior year quarter, including double-digit order unit volume growth. Sales at our western segment were $97 million, down 1% versus the prior year quarter. Western organic sales contracted 9% versus the prior year quarter and were flat sequentially. Organic order demand out west declined 4% versus the prior year quarter. and improvement from the 20% year-over-year decline seen in the second quarter, driven primarily by improvements in the new construction demand. During the quarter, our Western Window System Series 300 minimalist multi-slide door was awarded an Editor's Pick from the Architect Newspapers as part of their 2023 Best of Products Awards. We will be showcasing this product along with other premium products in our Western Window Systems Architectural Design Studio in Santa Monica, California, set to open on November 16th. This innovative studio will provide a location for architects, builders, and dealers for a hands-on experience with our premium products. It will also provide an opportunity to collaborate with our product experts to help design the best premium indoor-outdoor living spaces in the industry for any custom project. Our Martin garage door acquisition, which closed late in 2022, launched our new keystone pan door in the third quarter, featuring an innovative new design that provides cleaner lines that homeowners desire. We are already seeing order growth from the launch of the Martin garage door in our Texas New South markets. We look forward to launching Martin garage doors in other New South markets as well as in our East Coast distribution network. For our New South direct-to-consumer brand, we are executing our Texas Takeover initiative. Texans across the Austin, Dallas, Fort Worth, Houston, and San Antonio metro areas now have the opportunity to experience the value of custom factory-direct New South products along with the Martin garage doors. During the third quarter, we began production of our latest innovation, Diamond Glass, our laminated ultralight glass technology featuring Corning architectural technical glass. This innovation provides homeowners with improved clarity, lower weight, three-time scratch resistant, and improved energy efficiency while maintaining impact resistance that customers expect from our industry-leading impact brands. Windoor products featuring Diamond Glass as standard offering are available today, and we will be adding Diamond Glass as a premium option to our PGT branded products soon. I'm excited to announce that our first thin triple glass fabrication facility will be in Prince George County, Virginia. We appreciate the support of state and local leadership and look forward to being a trusted community partner. Equipment installation, testing, and local team member hiring begin in the third quarter, and production is scheduled to begin in the first quarter of 2024. Now I'd like to turn the call over to Craig Henderson to review our third quarter results in greater detail.