The U.S. residential window and door market generated sales of $27.1 billion in 2004 according to The Freedonia Group. Domestic demand for windows and doors grew at CAGR of 5.1% between 1999 and 2004. This industry is composed of numerous small, regional producers, as well as a smaller number of national producers. Many of these manufacturers, both small and large, are privately held firms. The window and door industry remains highly fragmented, with the top ten manufacturers accounting for approximately 34% of 2004 U.S. total industry sales. The majority of window and door producers focus almost exclusively on one primary product category or material, with clear leaders in certain segments. Although several diversified building products companies have recently increased their presence in the window and door market, most industry participants focus exclusively on window and door manufacturing.

The residential window and door market can be divided into two end-markets: new construction and repair and remodeling. New construction includes windows and doors purchased for original installation in new homes that are often assembled according to architect and homebuilder specifications. The repair and remodeling market includes new windows and doors used to replace older, worn-out units or used as part of a house expansion. Since building products used in repair and remodeling projects often need to fit into the pre-existing openings of a house, window producers must have significant manufacturing flexibility to produce a wide variety of custom sizes and shapes.

Windows and doors are distributed through three primary channels: wholesale distributors, retail outlets, and direct sales to large contractors and homebuilders. The wholesale distributor and retail channels are the two largest distribution channels and account for approximately 87% of total industry sales. However, large contractors and homebuilders continue to grow rapidly and are expanding their influence in the supply chain.

WinGuard is the Company’s impact-resistant product line and combines heavy-duty aluminum or vinyl frames with laminated glass to provide constant protection from hurricane-force winds and wind-borne debris. Over the past five years, WinGuard has been the Company’s fastest growing product line. WinGuard products satisfy increasingly stringent building codes and primarily target hurricane-prone coastal states in the U.S., as well as the Caribbean and Mexico.

The Company offers a complete line of fully customizable, non-impact-resistant aluminum frame windows and doors. These products primarily target regions with warmer climates, where aluminum is often preferred due to its ability to withstand higher temperatures and humidity. The Company offers a comprehensive selection of options and upgrades to meet the evolving demands of homeowners. The Company’s aluminum product lines include single hung, horizontal roller, casement, fixed lite, and architectural windows and sliding glass, French, corner meet, prime, and cabana doors.

The Company offers a complete line of fully customizable, non-impact-resistant vinyl frame windows and doors primarily targeting regions with colder climates, where the energy-efficient characteristics of vinyl frames are critical. The Company’s vinyl products include single hung, horizontal roller, casement, fixed lite, and architectural windows and sliding glass doors.

Similar to WinGuard, Multi-Story products are impact-resistant, offering protection from hurricane-force winds and wind-borne debris. However, this product line is installed in mid- and high-rise buildings rather than single family homes. The Company’s Multi-Story products include single hung, horizontal roller, and fixed lite windows and sliding glass doors.

The Company’s Eze-Breeze sliding panels for porch enclosures are vinyl-glazed, aluminum-framed products used for enclosing screened-in porches. They are available in three styles: vertical four-track, side slider, and screened garage door. The most popular style, the vertical four-track, allows nearly 75% ventilation when fully opened. The cost-effective Eze-Breeze product is ideal for enclosing screen porches because it provides protection from inclement weather while still creating a screened-porch feel.

Gross margin was $123.3 million in 2005, an increase of $33.3 million, or 36.9%, from $90.1 million in the combined year 2004.

Selling, general, and administrative expenses were $81.8 million in 2005, an increase of $13.7 million, or 20.1%, from $68.1 million in the combined year 2004.

Other expense, net totaled $1.6 million in both 2005 and the combined year 2004.

Interest expense was $13.9 million in 2005, an increase of $3.5 million from $10.4 million in the combined year 2004.