Revenue during the quarter grew 7.40 percent to $462.29 million from $430.46 million in the previous year period. Gross margin for the quarter contracted 82 basis points over the previous year period to 22.38 percent. Total expenses were 93.79 percent of quarterly revenues, up from 93.28 percent for the same period last year. That has resulted in a contraction of 50 basis points in operating margin to 6.21 percent.

Operating income for the quarter was $28.73 million, compared with $28.92 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $44.87 million compared with $43.23 million in the prior year period. At the same time, adjusted EBITDA margin contracted 34 basis points in the quarter to 9.71 percent from 10.04 percent in the last year period.

Commenting on the Company’s results, Shawn K. Poe, Ply Gem’s Chief Financial Officer added, “In the fourth quarter, we continued to drive financial improvements within our business segments. We achieved incremental year-over-year quarterly adjusted EBITDA growth of 3.8% and a record fourth quarter adjusted EBITDA of $44.9 million. As a result of our strong operational performance and profitability during 2016, we have strengthened our balance sheet by generating in excess of $145.0 million in operating cash flow and achieving a Company record $229.0 million of adjusted EBITDA. We continue to focus on our debt leverage and improved our leverage ratio 1.5 times since 2015 to a net leverage of 3.7 times while making voluntary debt payments of $160.0 million in 2016.”