PGT: Hurricane-Proof Pick

09/11/2013 7:00 am EST


James Oberweis

President, Oberweis Asset Management, Inc.

This company is a leading US maker of residential impact-resistant windows and doors and pioneered the US impact-resistant window and door industry, notes small-cap expert Jim Oberweis, Jr., of The Oberweis Report.

PGT, Inc. (PGTI) markets its impact-resistant products under the WinGuard, PremierVue, and PGT Architectural Systems brand names.

These products combine heavy-duty aluminum, or vinyl frames with laminated glass, to provide protection from hurricane-force winds and wind-borne debris, by maintaining their structural integrity and preventing penetration by impacting objects.

Impact-resistant windows and doors satisfy stringent building codes in hurricane-prone coastal states and provide an attractive alternative to shutters and other active forms of hurricane protection that require installation and removal before and after each storm.

Combining the impact resistance of WinGuard, PremierVue, and PGT Architectural Systems, with their insulating glass, creates energy-efficient windows that can significantly reduce cooling and heating costs.

The company also manufactures non-impact resistant products in both aluminum and vinyl frames, including their SpectraGuard™ line of products.

Their market share in Florida, which is the largest US impact-resistant window and door market, is significantly greater than that of any of their competitors.

PGT is vertically integrated with glass, insulating, tempering, and laminating facilities, which provides a consistent source of impact-resistant laminated and insulating glass, shorter lead times, and lower costs relative to third-party sourcing.

Sales are comprised of residential new construction and home repair, and remodeling end markets, which represented approximately 28% and 72% of sales, respectively, during 2012.

In the company's latest reported second quarter, sales increased approximately 35% to $62.8 million from $46.5 million in the second quarter of last year. PGT reported earnings per share of $.14 in the latest reported second quarter, versus $.07 in the same quarter of last year.

Clients of Oberweis Asset Management own approximately 105,000 shares. These shares may be appropriate for risk-oriented investors.

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