CARY, NC -- Ply Gem Holdings, Inc., a leading manufacturer of exterior building products in North America, said it earned net income of 41.7 million in the third quarter, compared to $21.4 million for the third quarter of 2014. Total net sales for the third quarter increased 21.2% to $530.9 million. Excluding the favorable impact of acquisitions of $89.7 million and the unfavorable impact of foreign currency of $11.4 million, our comparable net sales increased 3.4% for the third quarter of 2015.
Net sales in our U.S. business increased $115.9 million or 32.9%. Excluding acquisitions, our U.S. business net sales increased $26.2 million or 7.4%, while our Canadian business decreased $22.9 million or 26.9%.
"Overall, I am pleased with our third quarter financial and operating performance. Both businesses continued to make substantial contributions to adjusted EBITDA which allowed us to deliver the sixth consecutive quarterly year-over-year growth in both net sales and adjusted EBITDA," said Gary E. Robinette, Ply Gem's Chairman and CEO. While the overall Canadian housing market has softened during 2015, we continue to benefit from the sustained improvement in the U.S. housing market. We remain encouraged by the macro-economic trends that support the long-term recovery of the North American housing industry, and Ply Gem is well positioned to participate in the recovery."
Commenting on the Company's results, Shawn K. Poe, Ply Gem's Chief Financial Officer added, "In the third quarter, we continued to drive financial improvements and profitability within our business segments. Excluding the impact of acquisitions, we achieved a 210 basis point improvement in our gross profit margin as a result of our improved pricing and operational performance initiatives. In addition, our year-over-year quarterly adjusted EBITDA grew by $21.2 million to $76.6 million."
Siding, Fencing and Stone
Siding, Fencing and Stone's net sales totaled $255.1 million, up $10.7 million, or 4.4%, compared to $244.4 million in the third quarter of 2014. The net sales increase for the third quarter of 2015 was predominantly related to our acquisition of Canyon Stone, which was completed on May 29, 2015 and accounted for increased net sales of $7.8 million during the third quarter of 2015. Excluding Canyon Stone, our Siding, Fencing and Stone net sales increased $2.9 million or 1.2% for the third quarter of 2015. The net sales increase was driven by higher unit volume sales in the United States and Canada and higher net selling prices partially offset by unfavorable foreign currency of $5.5 million due to a weakening Canadian dollar relative to the U.S. dollar.
Gross profit margin for the third quarter of 2015 was 30.3%, an increase of 220 basis points from the 28.1% for the third quarter of 2014. The margin improvement primarily resulted from improved selling prices, favorable material costs, and lower freight expense.
Windows and Doors
Windows and Doors' net sales totaled $275.8 million, up $82.4 million, or 42.6%, compared to $193.4 million in the third quarter of 2014. The net sales increase for the third quarter of 2015 was primarily related to our acquisition of Simonton, which was completed on September 19, 2014 and accounted for increased net sales of $81.9 million during the third quarter of 2015. Excluding Simonton, our Windows and Doors' net sales increased $0.4 million, or 0.2%, for the third quarter of 2015. The net sales increase resulted from higher net sales in the United States for our U.S. window products of approximately $17.5 million offset by lower net sales for our Western Canadian business of approximately $17.1 million caused by a softening in the Western Canada market and a weakening Canadian dollar exchange rate relative to the U.S. dollar.
Gross profit margin was 20.8% for the third quarter of 2015 increasing from 15.5% for the third quarter of 2014. Adjusting for the Simonton acquisition, our gross profit would have been 17.1% for the third quarter of 2015 relative to 15.1% for the third quarter of 2014, an increase of 200 basis points. The margin improvement primarily resulted from improved selling prices, favorable product mix and lower freight expense.
"As the housing market in the U.S. continues to recover, we expect to generate meaningful operating leverage and earnings in our long-term outlook. We expect to continue to improve the margins and profitability in our Windows and Doors segment by gaining operating leverage and realizing the benefits of our recent acquisitions over the last two years. These acquisitions provide the platform to capitalize on both the new construction and repair and remodeling markets by leveraging our market presence and our customer relationships within both of our business segments. We are encouraged by the gross profit improvement in both of our segments and remain confident in our ability to realize the synergies of our recent acquisitions. We expect our fourth quarter adjusted EBITDA to be in the range of $32 to $37 million which would provide a full year 2015 adjusted EBITDA of $173 to $178 million," said Mr. Robinette.