Volume 9, Issue 9 - October 2008

What’sNews

COMPANY NEWS
Door and Window Companies
Included on Inc. 5000 List

A number of door and window manufacturers and their suppliers ranked on the second annual Inc. magazine Inc. 5000 list—a list of the fastest growing private companies in the United States. Among those listed were the following.

• Thompson Creek Manufacturing in Landover, Md., ranked No. 2,979 on the list for its 119.9 percent growth. In 2004, Thompson Creek reported revenue of $10.3 million; in 2007, this number grew to $22.6 million. The 120- employee company attributes its growth to “the employment of appropriate systems and processes,” which has allowed it to manage growth and handle a large volume of business. Thompson Creek is a family owned business.

• Rosati Windows was ranked No. 4,823 for its 46 percent growth since 2004. The 178-employee company reports 2004 revenue of 9.5 million, compared with 2007 revenue of 13.9 million. The company attributes its growth to customer referrals and the high level of customer service it offers. “I’m a maniac about customer service,” Mike Rosati told Inc. “My customers will be happy if I have to tear their windows out and put all new ones in myself.” The Columbus, Ohio-based company also prides itself on selling its windows directly to consumers and providing installation services as well.

• Vista Window in Warren, Ohio, a vinyl window manufacturer, was listed at No. 3,554 on the listreporting growth of 91.5 percent. The 135-employee company grew its revenue from $7.6 million in 2004 to $14.5 million in 2007, and attributes this growth to a step it took to maximize efficiency. “We only have two production lines. We make frames on one and sashes on the other,” CEO Dan McCarthy told Inc. “The bottom line is that we end up making more windows per square foot than anybody else in the replacement window business.” The company also prides itself on offering up to 72 color combinations.

• Edgetech I.G. of Cambridge, Ohio, attributes its 56.2 percent growth to a push toward energy efficiency and “the increased demand for products such as better insulated windows.” The company, which was ranked at 4,477, has implemented a system that automates the processing of orders over the last few years. It grew its revenue from $39.7 million in 2004 to $62.0 million in 2007 and employees 180.

• Stiles Machinery grew its revenue by 40.5 percent-from $138.2 million in 2004 to $194.1 million in 2007. The company, which employs 405, invested $1 million into a new 5,000-square-foot call center in 2007, and increased the efficiency of its shipping department, according to Inc. Stiles officials project this improvement to lead to the doubling of its revenue over the next 5 years, according to the article. Stiles is based in Grand Rapid, Mich., and ranked No. 4,988 on the list.

• Nana Wall Systems in Mill Valley, Calif., a manufacturer of luxury retractable glass walls, grew its revenue by $255.2 percent putting it at No. 1,482 on the list. Revenue increased from $10.7 million in 2004 to $38.1 million in 2007. The 33-employee company attributes some of its growth to the green movement. “The floor-to-ceiling windows offer natural light and fresh air that architects can incorporate to satisfy earth-conscious clients,” reads Inc. Nana also ranked No. 54 in the Top 100 Manufacturing Companies and No. 63 in the Top 100 Businesses in San Francisco-Oakland- Fremont, Calif.

• Commercial aluminum door and window manufacturer Wojan Window & Door took spot No. 3,212 on the list. The second generation family-owned company, which is a preferred vendor for the Hilton Corp., report ed 106.9 percent growth-rising revenues from $9.1 million in 2004 to $18.9 million 2007. Wojan employs 150 and is based in Charlevoix, Mich.

• Reesmar Sales & Millwork in Hialeah, Fla., grew its revenue from $1.1 million in 2006 to $2.6 million in 2007. The company was ranked No. 2,693 with only 21 employees. The family-owned business also ranked No. 71 in the Top 100 Businesses in Miami-Fort Lauderdale-Miami Beach, Fla. According to Inc., the company’s chief executive officer Cesar Lozano took over the company in 2004, and since then, he has added new machinery to improve quality, cut production time by 40 percent (along with automated labor), cutting costs by 15 percent.

• Low Country Case and Millwork was ranked at No. 3,625 for its 87.7 percent growth. The 42- employee company reported revenue of $2.2 million in 2004 and $4.1 million in 2007. Based in Ladson, S.C., Low Country attributes its growth to an investment in new technology and an addition of 15,000 feet of space to its manufacturing facility. The high-end millwork manufacturer is run by founder Robert Stasiukaitis, his wife, Brenda, brother Paul and son David.

• Queen Anne Window & Door ranked highest of all those related to the door and window manufacturing industry on the list-at No. 442. (Last year, it ranked 295.) The Seattle-based door and window distributor reports a 722.8-percent increase in revenue- from $772,968 in 2004 to $6.4 million in 2007. With only 18 employees, the company attributes its growth providing onsite door and window measurements, which normally would be done by contractors, and providing a warranty as well. Queen Anne also was listed at No. 12 in the Top 50 Business in Seattle- Tacoma-Bellevue, Wash., and No. 19 in the Top 100 Construction Companies.

• Indianapolis-based Unique Window & Door, which sells doors and windows, grew 98 percent-ranking it at No. 3,397. The company reports an increase in revenue from $8.1 million in 2004 to $16.1 million in 2007. With just 115 employees, the company also has expanded its offerings to include basement finishing and luxury bath systems.

• Penguin Windows in Mukilteo, Wash., sells replacement windows. The company was ranked at No. 3,716, for increased growth of 84.3 percent, from $28.9 million in 2004 to $53.3 million 2007. Penguin employs 552 people. Crystal Windows Licenses Sashlite Technology

Crystal Window & Door Systems has entered into a licensing agreement with Sashlite LLC of Westport, Conn., for the use of the company’s patented vinyl window insulating glass technology.

In separate actions, Crystal has also acquired Sashlite-specific tooling and equipment and established agreements with Sashlite strategic partners H.B. Fuller and Sash Systems.

“Establishing these relationships is the first step in building a bright new future for Crystal,” says Thomas Chen, Crystal’s founder and president. “Crystal’s use of Sashlite’s innovative spacer technology will offer our window dealers, distributors and homeowners many, many advantages, not the least of which are industry leading energy efficiency ratings and spacer aesthetics. Sashlite will be a key component of Crystal Windows’ continued future growth and success.”

Western Reflections
Works with PPG Western Reflections recently joined with PPG AutoGlass to introduce residential door glass inserts as a business expansion opportunity for the glass shop retailer.

“Our glass can be used in doors to meet ENERGY STAR® criteria and we offer hurricane impact door glass in a number of style options,” says John Pettis, director of sales for Western Reflection.

FINANCIAL NEWS
Masonite Announces Second-Quarter 2008 Financials Masonite International Inc. recently announced second-quarter 2008 sales of $507.8 million, a decline of 13.8 percent compared to sales of $588.9 million in the second quarter of 2007. Operating EBITDA decreased 48.0 percent to $46.1 million from $88.6 million in the second quarter of 2007. Adjusted EBITDA, calculated pursuant to the company’s credit agreement, declined 43.5 percent to $56.0 million in the second quarter of 2008, compared to $99.1 million in the prior year period, according to a release issued by the company in August.

Masonite attributes the decrease in its second-quarter results to the deterioration in the U.S. housing market.

“Lower operating volumes led to margin compression that was further exacerbated by significant inflation in our raw material, energy and transportation costs,” says Fred Lynch, president and chief executive officer. “It is our current belief that market conditions will deteriorate further in both the United States and the United Kingdom through the second half of 2008. In response, we continue to address every lever at our disposal; adjusting staffing and production capacities in line with demand, driving additional operating efficiencies through lean sigma implementation, and pricing our products to appropriately reflect their value in this inflationary climate. These difficult but necessary actions will help position Masonite for greater success when the market rebounds.”

In the second quarter, the company completed the closure of three manufacturing sites in North America. The company recorded a restructuring charge of $6.9 million in the second quarter of 2008 in connection with these closures and other actions. In connection with additional facility closures that are anticipated to occur in the third and fourth quarter of 2008, the company also recorded charges relating to goodwill, intangibles and fixed asset impairment in the amount of $10.8 million in the quarter. Further restructuring charges are anticipated to be required in the future as these closures are completed.

CODES
DOE Extends Public
Comment Period for Draft Door, Window and Skylight ENERGY STAR® Criteria The Department of Energy (DOE) has announced that based on feedback received at the August 13 stakeholder meeting, held to discuss the revised, drafted criteria or ENERGY STAR-qualified doors, windows and skylights, it has extended the deadline for public comment on the criteria to October 17, 2009.

Previously, comments had been due on September 14—less than one month after the meeting, and many in attendance at the meeting, which was held in Washington, D.C., expressed concern that this was not enough time to allot for comments on the criteria.

Comments should be e-mailed to Richard Karney at richard.karney@ ee.doe.gov and Emily Zachery at ezachery@drintl.com.

IBHS Plans for Research Facility to Aid in Building Durable Structures
The Institute for Business and Home Safety (IBHS) located in Tampa, Fla., will begin construction later this year of the Insurance Center for Building Safety Research. Funded by the IBHS’s insurer and reinsurer members, the facility will conduct research to find ways to build more durable homes and buildings. The center will include full-scale testing and construction components will be included, and a two-track research program will allow IBHS to focus on different types of catastrophic events, such as high winds and wind-driven water intrusion. According to the group’s announcement, the findings will be used in consumer education and advocacy programs, as well as for developing public policies, such as building codes.

In addition, the center also will allow IBHS to further ongoing research efforts and partnerships. For example, the group has been working with the University of Florida, Florida International University and also private laboratories on wind-driven water intrusion research.

The IBHS is currently evaluating potential sites for the center, which will require about a 100-acre parcel. Selection criteria include a mild climate to allow for year-round research and significant amounts of electricity through a plant or substation.

FINANCIAL NEWS
Quanex Engineered Products Division Reports 12 Percent Decline from 2007 for Fiscal Third Quarter Quanex Building Products Corp., the parent company of Truseal Technologies, Mikron Industries and Homeshield, has announced its fiscal third quarter 2008 results. For its engineered products division, which includes its fenestration components divisions, the company reports net sales of $115.3 million, a 12 percent decline from the same quarter of 2007, during which the company earned $131.4 million in net sales.

The division’s operating income also decreased 29 percent for the quarter, down to $12.6 million from $17.7 million for the same period last year.

“We continue to find ourselves in a very difficult housing market, with new home starts off 31 percent compared to our third quarter last year while remodeling activity is thought to be down about 10 percent,” says David Petratis, president and chief executive officer of Quanex Building Products. “Our sales at Engineered Products, down about 12 percent, held up well when you consider the depressed state of these end markets.”

Lit Bits
Los Angeles-based-C.R. Laurence Co. Inc. (CRL) has published a brand-new AM09 Architectural Metals Catalog. The full-color, 208-page catalog is available in print and online at www.crlaurence. com, and includes an extensive selection of architectural systems and related hardware (❙❙➤ www.crlaurence.com) … A new catalog is now available from Charles G.G. Schmidt & Co. The latest 52-page catalog, Number 900, is packed with new ideas and tooling, including insert cutters, router tooling, diamond bits, band saws and new knife profiles (❙❙➤ www.cggschmidt.com).


DWM

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