November 28, 2014 3:45 PM ET

Building Products

Company Overview of Associated Materials, LLC

Company Overview

Associated Materials, LLC manufactures and distributes exterior residential building products in the United States and Canada. The company produces exterior building products, including vinyl windows, vinyl siding, vinyl railing and fencing, aluminum trim coil, aluminum and steel siding, and related accessories; and sells complementary products that are manufactured by third parties, such as roofing materials, cladding materials, insulation, exterior doors, equipment, and tools, as well as provides installation services. It markets its products under the Alside, Revere, Gentek, UltraGuard, Preservation, and Alpine brands. The company also produces vinyl fencing and railing materials, includi...

3773 State Road

Cuyahoga Falls, OH 44223

United States

Founded in 1947

2,900 Employees

Phone:

330-929-1811

Key Executives for Associated Materials, LLC

Chief Executive Officer
Age: 48
Chief Financial Officer and Executive Vice President
Age: 44
Executive Vice President of Operations
Age: 57
Chief Human Resources Officer and Senior Vice President
Age: 56
Chief Marketing Officer and Senior Vice President
Age: 47
Compensation as of Fiscal Year 2014.

Associated Materials, LLC Key Developments

Associated Materials Reports Earnings Results for the Third Quarter and Cash Flow Results for the Nine Months Ended September 27, 2014

Associated Materials reported earnings results for the third quarter and cash flow results for the nine months ended September 27, 2014. On a year-over-year basis, its third quarter EBITDA declined 34% to $24.7 million versus $37.4 million in the third quarter of last year. This performance was driven by margin compression, primarily associated with manufacturing costs in its windows production as well as material cost inflation. The increase in sales is primarily due to a $12.9 million increase in vinyl window sales. Gross profit was $74.6 million, down $7.3 million from a gross profit of $81.9 million in the third quarter last year. The decrease in gross profit was driven by higher material costs of $4.6 million, window product launch-related manufacturing inefficiencies of approximately $3 million and increased freight and rework costs of $1.6 million combined and an unfavorable impact of $0.7 million due to customer mix. Adjusted EBITDA was $24.7 million compared to $37.4 million last year. Adjusted EBITDA reflects certain adjustments that are permitted under its credit agreement and the indenture related to its senior secured note due 2017. For the nine months, the net cash used in operating activities was $45.4 million compared to $14.4 million for the same period 2013. Lower operating earnings is the primary driver -- was the primary driver of the increase in cash use this year when compared to the prior year as working capital levels and CapEx levels were comparable.

Associated Materials, LLC, Q3 2014 Earnings Call, Nov 14, 2014

Associated Materials, LLC, Q3 2014 Earnings Call, Nov 14, 2014

Associated Materials, LLC Announces Executive Changes

On October 14, 2014, Associated Materials, LLC announced the departure of Paul Morrisroe as Senior Vice President and Chief Financial Officer of the Company and from various affiliates and subsidiaries thereof and the appointment of Scott Stephens as Executive Vice President and Chief Financial Officer of the Company and various affiliates and subsidiaries thereof. Before joining the Company, Mr. Stephens served as Vice President and Chief Financial Officer of A.M. Castle & Co. from 2008 to 2014.

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