GUARANTOR / NON GUARANTOR FINANCIAL INFORMATION (10-Q)

9 Months Ended

12 Months Ended

Sep. 29, 2012

Dec. 31, 2011

GUARANTOR / NON GUARANTOR FINANCIAL INFORMATION [Abstract]

GUARANTOR / NON-GUARANTOR FINANCIAL INFORMATION

13. GUARANTOR / NON-GUARANTOR FINANCIAL INFORMATION

The 8.25% Senior Secured Notes and 9.375% Senior Notes were issued by our direct subsidiary, Ply Gem Industries, and are fully and unconditionally guaranteed on a joint and several basis by the Company and certain of Ply Gem Industries' 100% owned subsidiaries. Accordingly, the following guarantor and non-guarantor information is presented as of September 29, 2012 and December 31, 2011, and for the three and nine months ended September 29, 2012 and October 1, 2011. The non-guarantor information presented represents our Canadian subsidiary.

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
For the three months ended September 29, 2012
	Guarantor			Issuer						Non-
	Ply Gem			Ply Gem			Guarantor			Guarantor		Consolidating
(Amounts in thousands)	Holdings, Inc.			Industries, Inc.			Subsidiaries			Subsidiary		Adjustments			Consolidated
Net sales	$	-		$	-		$	285,812		$	20,381	$	-		$	306,193
Cost of products sold		-			-			221,325			14,175		-			235,500
Gross profit		-			-			64,487			6,206		-			70,693
Operating expenses:
Selling, general and
administrative expenses		-			4,684			28,036			3,964		-			36,684
Intercompany administrative
charges		-			-			3,719			762		(4,481	)		-
Amortization of intangible assets		-			78			6,660			-		-			6,738
Total operating expenses		-			4,762			38,415			4,726		(4,481	)		43,422
Operating earnings (loss)		-			(4,762	)		26,072			1,480		4,481			27,271
Foreign currency gain		-			-			-			100		-			100
Intercompany interest		-			25,682			(25,682	)		-		-			-
Interest expense		-			(27,533	)		(10	)		-		-			(27,543	)
Interest income		-			1			11			5		-			17
Loss on modification or
extinguishment of debt		-			(3,607	)		-			-		-			(3,607	)
Intercompany administrative income		-			4,481			-			-		(4,481	)		-
Income (loss) before equity in
subsidiaries' income		-			(5,738	)		391			1,585		-			(3,762	)
Equity (loss) in subsidiaries' income		(3,673	)		2,065			-			-		1,608			-
Income (loss) before provision
(benefit) for income taxes		(3,673	)		(3,673	)		391			1,585		1,608			(3,762	)
Provision (benefit) for income taxes		-			-			(531	)		442		-			(89	)
Net income (loss)	$	(3,673	)	$	(3,673	)	$	922		$	1,143	$	1,608		$	(3,673	)
Other comprehensive income (loss):
Foreign currency translation adjustments		-			-			-			968		-			968
Total comprehensive income (loss)	$	(3,673	)	$	(3,673	)	$	922		$	2,111	$	1,608		$	(2,705	)

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
For the three months ended October 1, 2011
	Guarantor			Issuer						Non-
	Ply Gem			Ply Gem			Guarantor			Guarantor			Consolidating
(Amounts in thousands)	Holdings, Inc.			Industries, Inc.			Subsidiaries			Subsidiary			Adjustments			Consolidated
Net sales	$	-		$	-		$	276,903		$	20,986		$	-		$	297,889
Cost of products sold		-			-			217,869			14,198			-			232,067
Gross profit		-			-			59,034			6,788			-			65,822
Operating expenses:
Selling, general and
administrative expenses		-			4,884			25,345			3,857			-			34,086
Intercompany administrative
charges		-			-			3,705			486			(4,191	)		-
Amortization of intangible assets		-			9			6,658			-			-			6,667
Total operating expenses		-			4,893			35,708			4,343			(4,191	)		40,753
Operating earnings (loss)		-			(4,893	)		23,326			2,445			4,191			25,069
Foreign currency gain		-			-			-			115			-			115
Intercompany interest		-			25,682			(25,682	)		-			-			-
Interest expense		-			(25,193	)		-			(1	)		-			(25,194	)
Interest income		-			1			16			1			-			18
Intercompany administrative income		-			4,191			-			-			(4,191	)		-
Income (loss) before equity in
subsidiaries' income (loss)		-			(212	)		(2,340	)		2,560			-			8
Equity in subsidiaries' income (loss)		(458	)		(246	)		-			-			704			-
Income (loss) before provision
(benefit) for income taxes		(458	)		(458	)		(2,340	)		2,560			704			8
Provision (benefit) for income taxes		-			-			(250	)		716			-			466
Net income (loss)	$	(458	)	$	(458	)	$	(2,090	)	$	1,844		$	704		$	(458	)
Other comprehensive loss:
Foreign currency translation adjustments		-			-			-			(2,603	)		-			(2,603	)
Total comprehensive loss	$	(458	)	$	(458	)	$	(2,090	)	$	(759	)	$	704		$	(3,061	)

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
For the nine months ended September 29, 2012
	Guarantor			Issuer						Non-
	Ply Gem			Ply Gem			Guarantor			Guarantor			Consolidating
(Amounts in thousands)	Holdings, Inc.			Industries, Inc.			Subsidiaries			Subsidiary			Adjustments			Consolidated
Net sales	$	-		$	-		$	799,788		$	52,870		$	-		$	852,658
Cost of products sold		-			-			627,187			38,490			-			665,677
Gross profit		-			-			172,601			14,380			-			186,981
Operating expenses:
Selling, general and
administrative expenses		-			13,284			82,605			11,534			-			107,423
Intercompany administrative
charges		-			-			10,658			2,094			(12,752	)		-
Amortization of intangible assets		-			222			19,977			-			-			20,199
Total operating expenses		-			13,506			113,240			13,628			(12,752	)		127,622
Operating earnings (loss)		-			(13,506	)		59,361			752			12,752			59,359
Foreign currency gain		-			-			-			264			-			264
Intercompany interest		-			77,048			(77,048	)		-			-			-
Interest expense		-			(78,545	)		(10	)		(2	)		-			(78,557	)
Interest income		-			3			57			11			-			71
Loss on modification or
extinguishment of debt		-			(3,607	)		-			-			-			(3,607	)
Intercompany administrative income		-			12,752			-			-			(12,752	)		-
Income (loss) before equity in
subsidiaries' income (loss)		-			(5,855	)		(17,640	)		1,025			-			(22,470	)
Equity in subsidiaries' income (loss)		(24,049	)		(18,194	)		-			-			42,243			-
Income (loss) before provision
for income taxes		(24,049	)		(24,049	)		(17,640	)		1,025			42,243			(22,470	)
Provision for income taxes		-			-			1,258			321			-			1,579
Net income (loss)	$	(24,049	)	$	(24,049	)	$	(18,898	)	$	704		$	42,243		$	(24,049	)
Other comprehensive income (loss):
Foreign currency translation adjustments		-			-			-			939			-			939
Total comprehensive income (loss)	$	(24,049	)	$	(24,049	)	$	(18,898	)	$	1,643		$	42,243		$	(23,110	)

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
For the nine months ended October 1, 2011
	Guarantor			Issuer						Non-
	Ply Gem			Ply Gem			Guarantor			Guarantor			Consolidating
(Amounts in thousands)	Holdings, Inc.			Industries, Inc.			Subsidiaries			Subsidiary			Adjustments			Consolidated
Net sales	$	-		$	-		$	742,876		$	49,611		$	-		$	792,487
Cost of products sold		-			-			596,363			35,491			-			631,854
Gross profit		-			-			146,513			14,120			-			160,633
Operating expenses:
Selling, general and
administrative expenses		-			12,054			80,473			11,486			-			104,013
Intercompany administrative
charges		-			-			11,106			1,472			(12,578	)		-
Amortization of intangible assets		-			27			19,993			-			-			20,020
Total operating expenses		-			12,081			111,572			12,958			(12,578	)		124,033
Operating earnings (loss)		-			(12,081	)		34,941			1,162			12,578			36,600
Foreign currency gain		-			-			-			466			-			466
Intercompany interest		-			77,047			(77,047	)		-			-			-
Interest expense		-			(76,591	)		(1	)		(1	)		-			(76,593	)
Interest income		-			4			66			12			-			82
Loss on modification or
extinguishment of debt		-			(27,863	)		-			-			-			(27,863	)
Intercompany administrative income		-			12,578			-			-			(12,578	)		-
Income (loss) before equity in
subsidiaries' income (loss)		-			(26,906	)		(42,041	)		1,639			-			(67,308	)
Equity in subsidiaries' income (loss)		(69,287	)		(42,381	)		-			-			111,668			-
Income (loss) before provision for
income taxes		(69,287	)		(69,287	)		(42,041	)		1,639			111,668			(67,308	)
Provision for income taxes		-			-			1,456			523			-			1,979
Net income (loss)	$	(69,287	)	$	(69,287	)	$	(43,497	)	$	1,116		$	111,668		$	(69,287	)
Other comprehensive loss:
Foreign currency translation adjustments		-			-			-			(1,620	)		-			(1,620	)
Total comprehensive loss	$	(69,287	)	$	(69,287	)	$	(43,497	)	$	(504	)	$	111,668		$	(70,907	)

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEET
As of September 29, 2012
(Amounts in thousands)	Guarantor			Issuer						Non-
	Ply Gem			Ply Gem			Guarantor			Guarantor			Consolidating
ASSETS	Holdings, Inc.			Industries, Inc.			Subsidiaries			Subsidiary			Adjustments			Consolidated
Current Assets:
Cash and cash equivalents	$	-		$	20,653		$	19		$	7,419		$	-		$	28,091
Accounts receivable, net		-			-			145,501			9,995			-			155,496
Inventories:
Raw materials		-			-			35,876			4,516			-			40,392
Work in process		-			-			20,965			494			-			21,459
Finished goods		-			-			34,342			3,321			-			37,663
Total inventory		-			-			91,183			8,331			-			99,514
Prepaid expenses and other
current assets		-			129			11,948			1,684			-			13,761
Deferred income taxes		-			-			3,847			8			-			3,855
Total current assets		-			20,782			252,498			27,437			-			300,717
Investments in subsidiaries		(299,312	)		(176,728	)		-			-			476,040			-
Property and Equipment, at cost:
Land		-			-			3,565			172			-			3,737
Buildings and improvements		-			-			35,884			1,432			-			37,316
Machinery and equipment		-			1,813			275,347			9,103			-			286,263
		-			1,813			314,796			10,707			-			327,316
Less accumulated depreciation		-			(889	)		(223,196	)		(6,168	)		-			(230,253	)
Total property and equipment, net		-			924			91,600			4,539			-			97,063
Other Assets:
Intangible assets, net		-			-			101,093			-			-			101,093
Goodwill		-			-			383,042			9,675			-			392,717
Deferred income taxes		-			-			-			3,231			-			3,231
Intercompany note receivable		-			856,739			-			-			(856,739	)		-
Other		-			28,299			2,195			-			-			30,494
Total other assets		-			885,038			486,330			12,906			(856,739	)		527,535
	$	(299,312	)	$	730,016		$	830,428		$	44,882		$	(380,699	)	$	925,315
LIABILITIES AND STOCKHOLDER'S EQUITY (DEFICIT)
Current Liabilities:
Accounts payable	$	-		$	620		$	69,199		$	5,094		$	-		$	74,913
Accrued expenses		-			15,144			60,986			3,991			-			80,121
Total current liabilities		-			15,764			130,185			9,085			-			155,034
Deferred income taxes		-			-			8,716			-			-			8,716
Intercompany note payable		-			-			856,739			-			(856,739	)		-
Other long-term liabilities		-			10,794			46,443			870			-			58,107
Long-term debt		-			1,002,770			-			-			-			1,002,770
Commitments and contingencies
Stockholder's Equity (Deficit):
Preferred stock		-			-			-			-			-			-
Common stock		-			-			-			-			-			-
Additional paid-in-capital		310,451			310,451			426,627			6,408			(743,486	)		310,451
(Accumulated deficit) retained earnings		(604,634	)		(604,634	)		(638,282	)		22,334			1,220,582			(604,634	)
Accumulated other
comprehensive income (loss)		(5,129	)		(5,129	)		-			6,185			(1,056	)		(5,129	)
Total stockholder's (deficit) equity		(299,312	)		(299,312	)		(211,655	)		34,927			476,040			(299,312	)
	$	(299,312	)	$	730,016		$	830,428		$	44,882		$	(380,699	)	$	925,315

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEET
As of December 31, 2011
(Amounts in thousands)	Guarantor			Issuer						Non-
	Ply Gem			Ply Gem			Guarantor			Guarantor			Consolidating
ASSETS	Holdings, Inc.			Industries, Inc.			Subsidiaries			Subsidiary			Adjustments			Consolidated
Current Assets:
Cash and cash equivalents	$	-		$	8,578		$	(3,408	)	$	6,530		$	-		$	11,700
Accounts receivable, net		-			-			102,052			7,463			-			109,515
Inventories:
Raw materials		-			-			37,024			4,885			-			41,909
Work in process		-			-			23,619			667			-			24,286
Finished goods		-			-			36,282			2,328			-			38,610
Total inventory		-			-			96,925			7,880			-			104,805
Prepaid expenses and other
current assets		-			422			9,893			2,957			-			13,272
Deferred income taxes		-			-			5,666			9			-			5,675
Total current assets		-			9,000			211,128			24,839			-			244,967
Investments in subsidiaries		(277,322	)		(164,863	)		-			-			442,185			-
Property and Equipment, at cost:
Land		-			-			3,565			172			-			3,737
Buildings and improvements		-			-			35,280			1,308			-			36,588
Machinery and equipment		-			1,335			262,349			8,436			-			272,120
		-			1,335			301,194			9,916			-			312,445
Less accumulated depreciation		-			(762	)		(206,585	)		(5,253	)		-			(212,600	)
Total property and equipment, net		-			573			94,609			4,663			-			99,845
Other Assets:
Intangible assets, net		-			-			121,148			-			-			121,148
Goodwill		-			-			382,165			9,302			-			391,467
Deferred income taxes		-			-			-			3,121			-			3,121
Intercompany note receivable		-			856,739			-			-			(856,739	)		-
Other		-			30,235			2,129			-			-			32,364
Total other assets		-			886,974			505,442			12,423			(856,739	)		548,100
	$	(277,322	)	$	731,684		$	811,179		$	41,925		$	(414,554	)	$	892,912
LIABILITIES AND STOCKHOLDER'S EQUITY (DEFICIT)
Current Liabilities:
Accounts payable	$	-		$	720		$	44,652		$	4,718		$	-		$	50,090
Accrued expenses		-			36,987			50,790			3,104			-			90,881
Total current liabilities		-			37,707			95,442			7,822			-			140,971
Deferred income taxes		-			-			9,865			-			-			9,865
Intercompany note payable		-			-			856,739			-			(856,739	)		-
Other long-term liabilities		-			9,629			47,240			859			-			57,728
Long-term debt		-			961,670			-			-			-			961,670
Commitments and contingencies
Stockholder's Equity (Deficit):
Preferred stock		-			-			-			-			-			-
Common stock		-			-			-			-			-			-
Additional paid-in-capital		309,331			309,331			421,277			6,562			(737,170	)		309,331
(Accumulated deficit) retained earnings		(580,585	)		(580,585	)		(619,384	)		21,630			1,178,339			(580,585	)
Accumulated other
comprehensive income (loss)		(6,068	)		(6,068	)		-			5,052			1,016			(6,068	)
Total stockholder's equity (deficit)		(277,322	)		(277,322	)		(198,107	)		33,244			442,185			(277,322	)
	$	(277,322	)	$	731,684		$	811,179		$	41,925		$	(414,554	)	$	892,912

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the nine months ended September 29, 2012
(Amounts in thousands)	Guarantor			Issuer						Non-
	Ply Gem			Ply Gem			Guarantor			Guarantor			Consolidating
	Holdings, Inc.			Industries, Inc.			Subsidiaries			Subsidiary			Adjustments			Consolidated
Cash flows from operating
activities:
Net loss	$	(24,049	)	$	(24,049	)	$	(18,898	)	$	704		$	42,243		$	(24,049	)
Adjustments to reconcile net income (loss)
to cash provided by (used in) operating activities:
Depreciation and amortization
expense		-			128			38,701			750			-			39,579
Non-cash interest expense, net		-			8,999			-			-			-			8,999
Gain on foreign currency transactions		-			-			-			(264	)		-			(264	)
Loss on modification or extinguishment of debt		-			3,607			-			-			-			3,607
Stock based compensation		-			1,123			-			-			-			1,123
Deferred income taxes		-			-			670			(43	)		-			627
Increase in uncertain tax positions		-			-			400			-			-			400
Equity in subsidiaries' net loss		24,049			18,194			-			-			(42,243	)		-
Other		-			-			(41	)		-			-			(41	)
Changes in operating assets and
liabilities:
Accounts receivable, net		-			-			(43,449	)		(2,230	)		-			(45,679	)
Inventories		-			-			5,742			(177	)		-			5,565
Prepaid expenses and other
current assets		-			556			(2,293	)		1,298			-			(439	)
Accounts payable		-			(100	)		24,334			(475	)		-			23,759
Accrued expenses		-			(22,028	)		7,646			1,934			-			(12,448	)
Cash payments on restructuring liabilities		-			-			(535	)		-			-			(535	)
Other		-			-			417			(71	)		-			346
Net cash provided by (used in)
operating activities		-			(13,570	)		12,694			1,426			-			550
Cash flows from investing
activities:
Capital expenditures		-			(478	)		(14,890	)		(627	)		-			(15,995	)
Proceeds from sale of assets		-			-			334			(148	)		-			186
Acquisitions, net of cash acquired		-			-			(100	)		-			-			(100	)
Net cash used in
investing activities		-			(478	)		(14,656	)		(775	)		-			(15,909	)
Cash flows from financing
activities:
Proceeds from long-term debt		-			102,991			-			-			-			102,991
Payments of long-term debt		-			(58,991	)		-			-			-			(58,991	)
Revolver borrowings, net		-			-			-			-			-			-
Payment of early call premium		-			(9,844	)		-			-			-			(9,844	)
Proceeds from intercompany
investment		-			(5,389	)		5,389			-			-			-
Debt issuance costs paid		-			(2,644	)		-			-			-			(2,644	)
Net cash provided by
financing activities		-			26,123			5,389			-			-			31,512
Impact of exchange rate movement
on cash		-			-			-			238			-			238
Net increase in cash
and cash equivalents		-			12,075			3,427			889			-			16,391
Cash and cash equivalents at the
beginning of the period		-			8,578			(3,408	)		6,530			-			11,700
Cash and cash equivalents at the end
of the period	$	-		$	20,653		$	19		$	7,419		$	-		$	28,091

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the nine months ended October 1, 2011
(Amounts in thousands)	Guarantor			Issuer						Non-
	Ply Gem			Ply Gem			Guarantor			Guarantor			Consolidating
	Holdings, Inc.			Industries, Inc.			Subsidiaries			Subsidiary			Adjustments			Consolidated
Cash flows from operating
activities:
Net income (loss)	$	(69,287	)	$	(69,287	)	$	(43,497	)	$	1,116		$	111,668		$	(69,287	)
Adjustments to reconcile net income (loss)
to cash provided by (used in) operating activities:
Depreciation and amortization
expense		-			126			39,768			660			-			40,554
Non-cash interest expense, net		-			7,775			-			-			-			7,775
Gain on foreign currency transactions		-			-			-			(466	)		-			(466	)
Loss on modification or
extinguishment of debt		-			27,863			-			-			-			27,863
Stock based compensation		-			200			-			-			-			200
Deferred income taxes		-			-			6,794			68			-			6,862
Reduction in tax uncertainty,
net of valuation allowance		-			-			(6,617	)		-			-			(6,617	)
Equity in subsidiaries' net loss		69,287			42,381			-			-			(111,668	)		-
Other		-			-			(40	)		(3	)		-			(43	)
Changes in operating assets and
liabilities:
Accounts receivable, net		-			-			(52,402	)		(2,826	)		-			(55,228	)
Inventories		-			-			(17,566	)		(1,186	)		-			(18,752	)
Prepaid expenses and other
current assets		-			43			(458	)		(1,542	)		-			(1,957	)
Accounts payable		-			238			16,439			1,923			-			18,600
Accrued expenses		-			(7,735	)		6,549			1,220			-			34
Cash payments on restructuring liabilities		-			-			(407	)		-			-			(407	)
Other		-			-			122			432			-			554
Net cash provided by (used in)
operating activities		-			1,604			(51,315	)		(604	)		-			(50,315	)
Cash flows from investing
activities:
Capital expenditures		-			(594	)		(6,923	)		(699	)		-			(8,216	)
Proceeds from sale of assets		-			-			48			-			-			48
Net cash used in
investing activities		-			(594	)		(6,875	)		(699	)		-			(8,168	)
Cash flows from financing
activities:
Proceeds from long-term debt		-			423,684			-			-			-			423,684
Payments on long-term debt		-			(348,684	)		-			-			-			(348,684	)
Net revolver borrowings		-			85,000			-			-			-			85,000
Payments on previous revolver credit facility		-			(30,000	)		-			-			-			(30,000	)
Proceeds from intercompany																	-
investment		-			(57,950	)		57,936			14			-			-
Payment of early tender premium		-			(49,769	)		-			-			-			(49,769	)
Equity repurchases		-			(1,483	)		-			-			-			(1,483	)
Debt issuance costs paid		-			(26,907	)		-			-			-			(26,907	)
Net cash provided by (used in)
financing activities		-			(6,109	)		57,936			14			-			51,841
Impact of exchange rate movement
on cash		-			-			-			(253	)		-			(253	)
Net decrease in cash
and cash equivalents		-			(5,099	)		(254	)		(1,542	)		-			(6,895	)
Cash and cash equivalents at the
beginning of the period		-			12,172			(1,117	)		6,443			-			17,498
Cash and cash equivalents at the end
of the period	$	-		$	7,073		$	(1,371	)	$	4,901		$	-		$	10,603

15.   GUARANTOR/NON-GUARANTOR

The 8.25% Senior Secured Notes and the 13.125% Senior Subordinated Notes were issued by our direct subsidiary, Ply Gem Industries, and are fully and unconditionally guaranteed on a joint and several basis by the Company and certain of Ply Gem Industries' 100% owned subsidiaries.  Accordingly, the following guarantor and non-guarantor information is presented as of December 31, 2011 and December 31, 2010, and for the years ended December 31, 2011, 2010, and 2009.  The non-guarantor information presented represents our Canadian subsidiary, Ply Gem Canada.

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
For the year ended December 31, 2011
	Guarantor			Issuer						Non-
	Ply Gem			Ply Gem			Guarantor			Guarantor			Consolidating
(Amounts in thousands)	Holdings, Inc.			Industries, Inc.			Subsidiaries			Subsidiary			Adjustments			Consolidated
Net sales	$	-		$	-		$	967,694		$	67,163		$	-		$	1,034,857
Cost of products sold		-			-			777,256			47,069			-			824,325
Gross profit		-			-			190,438			20,094			-			210,532
Operating expenses:
Selling, general and
administrative expenses		-			14,748			109,061			15,103			-			138,912
Intercompany administrative
charges		-			-			13,287			2,783			(16,070	)		-
Amortization of intangible assets		-			36			26,653			-			-			26,689
Total operating expenses		-			14,784			149,001			17,886			(16,070	)		165,601
Operating earnings (loss)		-			(14,784	)		41,437			2,208			16,070			44,931
Foreign currency gain		-			-			-			492			-			492
Intercompany interest		-			102,729			(102,729	)		-			-			-
Interest expense		-			(101,486	)		(1	)		(1	)		-			(101,488	)
Interest income		-			6			83			15			-			104
Loss on modification or
extinguishment of debt		-			(27,863	)		-			-			-			(27,863	)
Intercompany administrative income		-			16,070			-			-			(16,070	)		-
Income (loss) before equity in
subsidiaries' income (loss)		-			(25,328	)		(61,210	)		2,714			-			(83,824	)
Equity in subsidiaries' income (loss)		(84,507	)		(59,179	)		-			-			143,686			-
Income (loss) before provision
(benefit) for income taxes		(84,507	)		(84,507	)		(61,210	)		2,714			143,686			(83,824	)
Provision (benefit) for income taxes		-			-			(170	)		853			-			683
Net income (loss)	$	(84,507	)	$	(84,507	)	$	(61,040	)	$	1,861		$	143,686		$	(84,507	)
Other comprehensive income (loss):
Foreign currency translation adjustments		-			-			-			(691	)		-			(691	)
Minimum pension liability for
actuarial loss		-			(3,091	)		(3,509	)		-			-			(6,600	)
Total comprehensive income (loss)	$	(84,507	)	$	(87,598	)	$	(64,549	)	$	1,170		$	143,686		$	(91,798	)

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
For the year ended December 31, 2010
	Guarantor		Issuer						Non-
	Ply Gem		Ply Gem			Guarantor			Guarantor			Consolidating
(Amounts in thousands)	Holdings, Inc.		Industries, Inc.			Subsidiaries			Subsidiary			Adjustments			Consolidated
Net sales	$	-	$	-		$	922,240		$	73,666		$	-		$	995,906
Cost of products sold		-		-			730,896			49,050			-			779,946
Gross profit		-		-			191,344			24,616			-			215,960
Operating expenses:
Selling, general and
administrative expenses		-		14,765			101,767			13,928			-			130,460
Intercompany administrative
charges		-		-			12,143			1,639			(13,782	)		-
Amortization of intangible assets		-		36			27,063			-			-			27,099
Write-off of previously capitalized
offering costs		-		1,571			-			-			-			1,571
Total operating expenses		-		16,372			140,973			15,567			(13,782	)		159,130
Operating earnings (loss)		-		(16,372	)		50,371			9,049			13,782			56,830
Foreign currency gain		-		-			-			510			-			510
Intercompany interest		-		106,899			(106,086	)		(813	)		-			-
Interest expense		-		(122,881	)		(111	)		-			-			(122,992	)
Interest income		-		17			121			21			-			159
Gain on extinguishment of debt		-		98,187			-			-			-			98,187
Intercompany administrative income		-		13,782			-			-			(13,782	)		-
Income (loss) before equity in
subsidiaries' income (loss)		-		79,632			(55,705	)		8,767			-			32,694
Equity in subsidiaries' income (loss)		27,667		(52,648	)		-			-			24,981			-
Income (loss) before provision
(benefit) for income taxes		27,667		26,984			(55,705	)		8,767			24,981			32,694
Provision (benefit) for income taxes		-		(683	)		3,273			2,437			-			5,027
Net income (loss)	$	27,667	$	27,667		$	(58,978	)	$	6,330		$	24,981		$	27,667
Other comprehensive income (loss):
Foreign currency translation adjustments		-		-			-			1,639			-			1,639
Minimum pension liability for
actuarial (loss)		-		(292	)		(448	)		-			-			(740	)
Total comprehensive income (loss)	$	27,667	$	27,375		$	(59,426	)	$	7,969		$	24,981		$	28,566

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
For the year ended December 31, 2009
	Guarantor			Issuer						Non-
	Ply Gem			Ply Gem			Guarantor			Guarantor			Consolidating
(Amounts in thousands)	Holdings, Inc.			Industries, Inc.			Subsidiaries			Subsidiary			Adjustments			Consolidated
Net sales	$	-		$	-		$	887,662		$	63,712		$	-		$	951,374
Cost of products sold		-			-			706,670			43,171			-			749,841
Gross profit		-			-			180,992			20,541			-			201,533
Operating expenses:
Selling, general and
administrative expenses		-			14,121			115,974			11,677			-			141,772
Intercompany administrative
charges		-			-			13,138			1,016			(14,154	)		-
Amortization of intangible assets		-			21			19,630			-			-			19,651
Total operating expenses		-			14,142			148,742			12,693			(14,154	)		161,423
Operating earnings (loss)		-			(14,142	)		32,250			7,848			14,154			40,110
Foreign currency gain		-			-			-			475			-			475
Intercompany interest		-			121,035			(119,369	)		(1,666	)		-			-
Interest expense		-			(135,328	)		(186	)		-			-			(135,514	)
Interest income		-			39			169			3			-			211
Intercompany administrative income		-			14,154			-			-			(14,154	)		-
Income (loss) before equity in
subsidiaries' income (loss)		-			(14,242	)		(87,136	)		6,660			-			(94,718	)
Equity in subsidiaries' income (loss)		(76,752	)		(65,211	)		-			-			141,963			-
Income (loss) before provision
(benefit) for income taxes		(76,752	)		(79,453	)		(87,136	)		6,660			141,963			(94,718	)
Provision (benefit) for income taxes		-			(2,701	)		(17,324	)		2,059			-			(17,966	)
Net income (loss)	$	(76,752	)	$	(76,752	)	$	(69,812	)	$	4,601		$	141,963		$	(76,752	)
Other comprehensive loss:
Foreign currency translation adjustments		-			-			-			4,709			-			4,709
Miminum pension liability for
actuarial gain		-			853			305			-			-			1,158
Total comprehensive loss	$	(76,752	)	$	(75,899	)	$	(69,507	)	$	9,310		$	141,963		$	(70,885	)

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEET
As of December 31, 2011
(Amounts in thousands)	Guarantor			Issuer						Non-
	Ply Gem			Ply Gem			Guarantor			Guarantor			Consolidating
ASSETS	Holdings, Inc.			Industries, Inc.			Subsidiaries			Subsidiary			Adjustments			Consolidated
Current Assets:
Cash and cash equivalents	$	-		$	8,578		$	(3,408	)	$	6,530		$	-		$	11,700
Accounts receivable, net		-			-			102,052			7,463			-			109,515
Inventories:
Raw materials		-			-			37,024			4,885			-			41,909
Work in process		-			-			23,619			667			-			24,286
Finished goods		-			-			36,282			2,328			-			38,610
Total inventory		-			-			96,925			7,880			-			104,805
Prepaid expenses and other
current assets		-			422			9,893			2,957			-			13,272
Deferred income taxes		-			-			5,666			9			-			5,675
Total current assets		-			9,000			211,128			24,839			-			244,967
Investments in subsidiaries		(277,322	)		(164,863	)		-			-			442,185			-
Property and Equipment, at cost:
Land		-			-			3,565			172			-			3,737
Buildings and improvements		-			-			35,280			1,308			-			36,588
Machinery and equipment		-			1,335			262,349			8,436			-			272,120
		-			1,335			301,194			9,916			-			312,445
Less accumulated depreciation		-			(762	)		(206,585	)		(5,253	)		-			(212,600	)
Total property and equipment, net		-			573			94,609			4,663			-			99,845
Other Assets:
Intangible assets, net		-			-			121,148			-			-			121,148
Goodwill		-			-			382,165			9,302			-			391,467
Deferred income taxes		-			-			-			3,121			-			3,121
Intercompany note receivable		-			856,739			-			-			(856,739	)		-
Other		-			30,235			2,129			-			-			32,364
Total other assets		-			886,974			505,442			12,423			(856,739	)		548,100
	$	(277,322	)	$	731,684		$	811,179		$	41,925		$	(414,554	)	$	892,912
LIABILITIES AND STOCKHOLDER'S EQUITY (DEFICIT)
Current Liabilities:
Accounts payable	$	-		$	720		$	44,652		$	4,718		$	-		$	50,090
Accrued expenses		-			36,987			50,790			3,104			-			90,881
Total current liabilities		-			37,707			95,442			7,822			-			140,971
Deferred income taxes		-			-			9,865			-			-			9,865
Intercompany note payable		-			-			856,739			-			(856,739	)		-
Other long-term liabilities		-			9,629			47,240			859			-			57,728
Long-term debt		-			961,670			-			-			-			961,670
Commitments and contingencies
Stockholder's Equity (Deficit):
Preferred stock		-			-			-			-			-			-
Common stock		-			-			-			-			-			-
Additional paid-in-capital		309,331			309,331			421,277			6,562			(737,170	)		309,331
(Accumulated deficit) retained earnings		(580,585	)		(580,585	)		(619,384	)		21,630			1,178,339			(580,585	)
Accumulated other
comprehensive income (loss)		(6,068	)		(6,068	)		-			5,052			1,016			(6,068	)
Total stockholder's (deficit) equity		(277,322	)		(277,322	)		(198,107	)		33,244			442,185			(277,322	)
	$	(277,322	)	$	731,684		$	811,179		$	41,925		$	(414,554	)	$	892,912

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEET
As of December 31, 2010
	Guarantor			Issuer						Non-
	Ply Gem			Ply Gem			Guarantor			Guarantor			Consolidating
(Amounts in thousands)	Holdings, Inc.			Industries, Inc.			Subsidiaries			Subsidiary			Adjustments			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	-		$	12,172		$	(1,117	)	$	6,443		$	-		$	17,498
Accounts receivable, net		-			-			90,387			7,472			-			97,859
Inventories, net:
Raw materials		-			-			35,890			3,938			-			39,828
Work in process		-			-			22,466			765			-			23,231
Finished goods		-			-			33,316			2,204			-			35,520
Total inventories, net		-			-			91,672			6,907			-			98,579
Prepaid expenses and other
current assets		-			356			9,573			704			-			10,633
Deferred income taxes		-			-			12,175			14			-			12,189
Total current assets		-			12,528			202,690			21,540			-			236,758
Investments in subsidiaries		(173,088	)		(142,820	)		-			-			315,908			-
Property and Equipment, at cost:
Land		-			-			3,565			176			-			3,741
Buildings and improvements		-			-			34,886			1,126			-			36,012
Machinery and equipment		-			1,272			255,060			7,968			-			264,300
		-			1,272			293,511			9,270			-			304,053
Less accumulated depreciation		-			(593	)		(182,210	)		(4,538	)		-			(187,341	)
Total property and equipment, net		-			679			111,301			4,732			-			116,712
Other Assets:
Intangible assets, net		-			-			146,965			-			-			146,965
Goodwill		-			-			382,472			10,961			-			393,433
Deferred income taxes		-			-			-			2,279			-			2,279
Intercompany note receivable		-			856,738			-			-			(856,738	)		-
Other		-			24,590			1,500			-			-			26,090
Total other assets		-			881,328			530,937			13,240			(856,738	)		568,767
	$	(173,088	)	$	751,715		$	844,928		$	39,512		$	(540,830	)	$	922,237
LIABILITIES AND STOCKHOLDER'S EQUITY (DEFICIT)
Current Liabilities:
Accounts payable	$	-		$	399		$	50,280		$	4,294		$	-		$	54,973
Accrued expenses		-			22,922			49,884			2,311			-			75,117
Total current liabilities		-			23,321			100,164			6,605			-			130,090
Deferred income taxes		-			-			10,583			-			-			10,583
Intercompany note payable		-			-			856,738			-			(856,738	)		-
Other long-term liabilities		-			7,319			51,369			1,801			-			60,489
Long-term debt		-			894,163			-			-			-			894,163
Commitments and contingencies
Stockholder's Equity (Deficit):
Preferred stock		-			-			-			-			-			-
Common stock		-			-			-			-			-			-
Additional paid-in-capital		321,767			321,767			384,418			5,591			(711,776	)		321,767
Retained earnings (accumulated deficit)		(496,078	)		(496,078	)		(558,344	)		19,769			1,034,653			(496,078	)
Accumulated other
comprehensive income		1,223			1,223			-			5,746			(6,969	)		1,223
Total stockholder's equity (deficit)		(173,088	)		(173,088	)		(173,926	)		31,106			315,908			(173,088	)
	$	(173,088	)	$	751,715		$	844,928		$	39,512		$	(540,830	)	$	922,237

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the year ended December 31, 2011
(Amounts in thousands)	Guarantor			Issuer						Non-
	Ply Gem			Ply Gem			Guarantor			Guarantor			Consolidating
	Holdings, Inc.			Industries, Inc.			Subsidiaries			Subsidiary			Adjustments			Consolidated
Cash flows from operating
activities:
Net income (loss)	$	(84,507	)	$	(84,507	)	$	(61,040	)	$	1,861		$	143,686		$	(84,507	)
Adjustments to reconcile net income (loss)
to cash provided by (used in) operating activities:
Depreciation and amortization
expense		-			169			52,951			900			-			54,020
Non-cash interest expense, net		-			10,518			-			-			-			10,518
Gain on foreign currency transactions		-			-			-			(492	)		-			(492	)
Loss on modification or
extinguishment of debt		-			27,863			-			-			-			27,863
Deferred income taxes		-			-			7,872			(1,579	)		-			6,293
Reduction in tax uncertainty,
net of valuation allowance		-			-			(6,617	)		-			-			(6,617	)
Equity in subsidiaries' net loss		84,507			59,179			-			-			(143,686	)		-
Other		-			-			(51	)		(3	)		-			(54	)
Changes in operating assets and
liabilities:
Accounts receivable, net		-			-			(13,107	)		(159	)		-			(13,266	)
Inventories		-			-			(5,253	)		(1,160	)		-			(6,413	)
Prepaid expenses and other
current assets		-			(176	)		(1,622	)		(150	)		-			(1,948	)
Accounts payable		-			321			(6,593	)		1,500			-			(4,772	)
Accrued expenses		-			11,300			3,256			758			-			15,314
Cash payments on restructuring liabilities		-			-			(407	)		-			-			(407	)
Other		-			430			100			479			-			1,009
Net cash provided by (used in)
operating activities		-			25,097			(30,511	)		1,955			-			(3,459	)
Cash flows from investing
activities:
Capital expenditures		-			(63	)		(10,490	)		(937	)		-			(11,490	)
Proceeds from sale of assets		-			-			102			-			-			102
Net cash used in
investing activities		-			(63	)		(10,388	)		(937	)		-			(11,388	)
Cash flows from financing
activities:
Proceeds from long-term debt		-			423,684			-			-			-			423,684
Payments on long-term debt		-			(348,684	)		-			-			-			(348,684	)
Net revolver borrowings		-			55,000			-			-			-			55,000
Payments on previous revolver credit facility		-			(30,000	)		-			-			-			(30,000	)
Proceeds from intercompany																	-
investment		-			(37,826	)		38,608			(782	)		-			-
Payment of early tender premium		-			(49,769	)		-			-			-			(49,769	)
Equity repurchases		-			(14,049	)		-			-			-			(14,049	)
Debt issuance costs paid		-			(26,984	)		-			-			-			(26,984	)
Net cash provided by (used in)
financing activities		-			(28,628	)		38,608			(782	)		-			9,198
Impact of exchange rate movement
on cash		-			-			-			(149	)		-			(149	)
Net increase (decrease) in cash
and cash equivalents		-			(3,594	)		(2,291	)		87			-			(5,798	)
Cash and cash equivalents at the
beginning of the period		-			12,172			(1,117	)		6,443			-			17,498
Cash and cash equivalents at the end
of the period	$	-		$	8,578		$	(3,408	)	$	6,530		$	-		$	11,700

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the year ended December 31, 2010
(Amounts in thousands)	Guarantor			Issuer						Non-
	Ply Gem			Ply Gem			Guarantor			Guarantor			Consolidating
	Holdings, Inc.			Industries, Inc.			Subsidiaries			Subsidiary			Adjustments			Consolidated
Cash flows from operating
activities:
Net income (loss)	$	27,667		$	27,667		$	(58,978	)	$	6,330		$	24,981		$	27,667
Adjustments to reconcile net
income (loss) to cash provided by
(used in) operating activities:
Depreciation and amortization
expense		-			168			59,761			789			-			60,718
Non-cash interest expense, net		-			9,800			-			-			-			9,800
Gain on foreign currency transactions		-			-			-			(510	)		-			(510	)
Gain on extinguishment of debt		-			(98,187	)		-			-			-			(98,187	)
Write-off of previously capitalized
offering costs		-			1,571			-			-			-			1,571
Deferred income taxes		-			-			981			622			-			1,603
Equity in subsidiaries' net income (loss)		(27,667	)		52,648			-			-			(24,981	)		-
Other		-			-			8			(12	)		-			(4	)
Changes in operating assets and
liabilities:
Accounts receivable, net		-			-			(3,730	)		707			-			(3,023	)
Inventories		-			-			(1,384	)		1,264			-			(120	)
Prepaid expenses and other
current assets		-			(1,488	)		6,634			2,478			-			7,624
Accounts payable		-			(199	)		1,090			1,026			-			1,917
Accrued expenses		-			(4,384	)		4,211			625			-			452
Cash payments on restructuring liabilities		-			-			(2,630	)		-			-			(2,630	)
Other		-			163			(718	)		425			-			(130	)
Net cash provided by (used in)
operating activities		-			(12,241	)		5,245			13,744			-			6,748
Cash flows from investing
activities:
Capital expenditures		-			-			(10,275	)		(830	)		-			(11,105	)
Proceeds from sale of assets		-			-			2,032			-			-			2,032
Net cash used in
investing activities		-			-			(8,243	)		(830	)		-			(9,073	)
Cash flows from financing
activities:
Proceeds from long-term debt		-			145,709			-			-			-			145,709
Payments on long-term debt		-			(141,191	)		-			-			-			(141,191	)
Net revolver borrowings		-			5,000			-			-			-			5,000
Proceeds from intercompany																	-
investment		-			14,665			(711	)		(13,954	)		-			-
Equity contributions		-			2,428			-			-			-			2,428
Equity repurchases					(2,978	)		-			-			-			(2,978	)
Debt issuance costs paid		-			(5,029	)		-			-			-			(5,029	)
Tax payments on behalf of parent		-			(1,532	)		-			-			-			(1,532	)
Net cash provided by (used in)
financing activities		-			17,072			(711	)		(13,954	)		-			2,407
Impact of exchange rate movement
on cash		-			-			-			353			-			353
Net increase (decrease) in cash
and cash equivalents		-			4,831			(3,709	)		(687	)		-			435
Cash and cash equivalents at the
beginning of the period		-			7,341			2,592			7,130			-			17,063
Cash and cash equivalents at the end
of the period	$	-		$	12,172		$	(1,117	)	$	6,443		$	-		$	17,498

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the year ended December 31, 2009
(Amounts in thousands)	Guarantor			Issuer						Non-
	Ply Gem			Ply Gem			Guarantor			Guarantor			Consolidating
	Holdings, Inc.			Industries, Inc.			Subsidiaries			Subsidiary			Adjustments			Consolidated
Cash flows from operating
activities:
Net income (loss)	$	(76,752	)	$	(76,752	)	$	(69,812	)	$	4,601		$	141,963		$	(76,752	)
Adjustments to reconcile net
income (loss) to cash provided by
(used in) operating activities:
Depreciation and amortization
expense		-			169			55,398			704			-			56,271
Non-cash interest expense, net		-			8,911			-			-			-			8,911
Gain on foreign currency transactions		-			-			-			(475	)		-			(475	)
Deferred income taxes		-			-			(16,676	)		626			-			(16,050	)
Equity in subsidiaries' net income (loss)		76,752			65,211			-			-			(141,963	)		-
Other		-			-			22			(17	)		-			5
Changes in operating assets and
liabilities:
Accounts receivable, net		-			-			(3,120	)		298			-			(2,822	)
Inventories		-			-			26,430			(30	)		-			26,400
Prepaid expenses and other
current assets		-			3,441			(1,099	)		(2,629	)		-			(287	)
Accounts payable		-			3,284			(10,482	)		(622	)		-			(7,820	)
Accrued expenses		-			(3,437	)		4,854			182			-			1,599
Cash payments on restructuring liabilities		-			-			(6,034	)		-			-			(6,034	)
Other		-			31			328			(187	)		-			172
Net cash provided by (used in)
operating activities		-			858			(20,191	)		2,451			-			(16,882	)
Cash flows from investing
activities:
Capital expenditures		-			(23	)		(7,572	)		(212	)		-			(7,807	)
Proceeds from sale of assets		-			-			58			23			-			81
Other		-			-			(109	)		-			-			(109	)
Net cash used in
investing activities		-			(23	)		(7,623	)		(189	)		-			(7,835	)
Cash flows from financing
activities:
Proceeds from long-term debt		-			20,000			-			-			-			20,000
Net revolver borrowings		-			(35,000	)		-			-			-			(35,000	)
Proceeds from intercompany																	-
investment		-			(22,147	)		25,916			(3,769	)		-			-
Debt issuance costs paid		-			(2,528	)		-			-			-			(2,528	)
Net cash provided by (used in)
financing activities		-			(39,675	)		25,916			(3,769	)		-			(17,528	)
Impact of exchange rate movement
on cash		-			-			-			1,019			-			1,019
Net increase (decrease) in cash
and cash equivalents		-			(38,840	)		(1,898	)		(488	)		-			(41,226	)
Cash and cash equivalents at the
beginning of the period		-			46,181			4,490			7,618			-			58,289
Cash and cash equivalents at the end
of the period	$	-		$	7,341		$	2,592		$	7,130		$	-		$	17,063