Cary-based Ply Gem revives IPO plans

dranii@newsobserver.comApril 5, 2013 

Ply Gem Holdings, a Cary company that produces vinyl siding and other products for home exteriors, has revived its plans to raise up to $300 million in an initial public offering.

Ply Gem filed plans to go public in June 2010 but never followed through, presumably because it didn’t view the market as receptive. But on Friday it filed new documents with the Securities and Exchange Commission that once again outline plans to go public.

The new filing indicates the company is serious about pushing ahead, said John Fitzgibbon Jr., who tracks new stock offerings for

Fitzgibbon said Ply Gem’s new resolve makes a lot of sense because “the construction industry is starting to look good.”

Ply Gem would be following in the footsteps of Boise Cascade, which went public on Feb. 6 at $21 per share and has been warmly received by Wall Street since then, Fitzgibbon said. On Friday, Boise Cascade shares closed at $30.82, up 53 cents.

“The sector is hot this time around,” he said.

Ply Gem generated $1.12 billion in sales last year, up 8.4 percent from 2011. The company says it is No. 1 in vinyl siding and No. 2 in vinyl and aluminum windows in the U.S. market.

Although it lost $39.1 million last year, its adjusted EBITDA – earnings before interest, taxes, depreciation and amortization – totaled $124.7 million, up 11 percent from 2011. EBITDA is an important measure of financial performance for companies with significant debt.

Ply Gem, which owes $964.4 million, plans to use the proceeds from its IPO to pay down its debt.

CEO Gary Robinette issued an upbeat assessment of the company’s prospects when it issued its fourth-quarter and full-year results last month.

“Ply Gem continues to demonstrate its ability to grow existing and new customer business that will further benefit the company as the housing market continues to recover,” Robinette said in a statement. “As we go into 2013, we expect the new home construction market to show strong growth and anticipate the repair and remodeling market to demonstrate more modest growth, with big-ticket remodeling expenditures continuing to lag.”

Ply Gem, which had 4,992 full-time employees at the end of December, moved its headquarters to Cary from Missouri in 2008. It also operates a warehouse in Fayetteville.

Ply Gem officials couldn’t be reached for comment on Friday.

Ranii: 919-829-4877

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