Revenue during the quarter went down marginally by 0.09 percent to $530.39 million from $530.88 million in the previous year period. Gross margin for the quarter expanded 40 basis points over the previous year period to 25.79 percent. Total expenses were 87.18 percent of quarterly revenues, down from 88.32 percent for the same period last year. This has led to an improvement of 114 basis points in operating margin to 12.82 percent.

Operating income for the quarter was $68.01 million, compared with $62 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $82.48 million compared with $76.56 million in the prior year period. At the same time, adjusted EBITDA margin improved 113 basis points in the quarter to 15.55 percent from 14.42 percent in the last year period.

“I am pleased by the solid operating and free cash flow performance of the Company during the third quarter. Both segments continued to make substantial contributions to adjusted EBITDA and allowed us to deliver the tenth consecutive quarterly year-over-year growth of adjusted EBITDA,” said Gary E. Robinette, Ply Gem’s chairman and chief executive officer. “Our third quarter overall sales were somewhat dampened due to a soft-patch of demand for external building products in July and August partially related to the pull forward effect of demand in the first half of 2016 as well as wet weather in the South-Central United States, however, the fundamental demand drivers of our end markets remain robust as the U.S. housing market continues to recover. During the third quarter, our teams delivered strong profitable growth through improved product pricing and operating performance initiatives while maintaining our cost discipline. As a result, Ply Gem achieved record quarterly net income of $54.8 million and adjusted EBITDA of $82.5 million.”