American Woodmark Corporation Announces First Quarter Results

23 Aug, 2011, 06:30 ET from American Woodmark Corporation

WINCHESTER, Va., Aug. 23, 2011 /PRNewswire/ -- American Woodmark Corporation (NASDAQ: AMWD) today announced results for its first quarter ended July 31, 2011.  

Net sales improved by 20% compared with the first quarter of the prior fiscal year to $131,199,000. The Company experienced an increase in sales in both its remodel and new construction sales channels compared with the first quarter of its prior fiscal year.

The Company generated a net loss of ($2,716,000) or ($0.19) per diluted share during the first quarter of the current fiscal year, compared with a net loss of ($3,418,000) or ($0.24) per diluted share in the first quarter of its prior fiscal year.

Gross profit for the first quarter of fiscal year 2012 was 14.0% of net sales, compared with 13.2% in the first quarter of the prior fiscal year.  The improvement in gross profit margin reflected the beneficial impact of increased sales volume on direct labor and manufacturing overhead costs.  These beneficial factors were partially offset by higher sales promotional expenses and by the unfavorable impact of higher materials and fuel costs.

Selling, general and administrative costs were 17.0% of net sales in the first quarter of the current fiscal year, down from 18.2% of net sales in the first quarter of the prior fiscal year.  The Company's operating expense ratio was favorably impacted by the 20% improvement in net sales that more than offset the 12% increase in costs.

The Company generated positive free cash flow of $2.1 million (defined as cash provided by operating activities net of cash used for investing activities) in the first quarter of the current fiscal year, compared with negative free cash flow generated in the first quarter of the prior fiscal year of $0.3 million.  The improvement in free cash flow was driven primarily by the reduction in net loss and by the timing of cash receipts and disbursements.

The Company ended the first quarter of fiscal year 2012 with cash, cash equivalents and restricted cash of $70.5 million, up from $66.2 million one year ago, and a debt-to-capital ratio of 13.9%.

American Woodmark Corporation manufactures and distributes kitchen cabinets and vanities for the remodeling and new home construction markets.  Its products are sold on a national basis directly to home centers, major builders and through a network of independent distributors.  The Company presently operates eleven manufacturing facilities and nine service centers across the country.

Safe harbor statement under the Private Securities Litigation Reform Act of 1995:  All forwardlooking statements made by the Company involve material risks and uncertainties and are subject to change based on factors that may be beyond the Company's control.  Accordingly, the Company's future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements.  Such factors include, but are not limited to, those described in the Company's filings with the Securities and Exchange Commission and the Annual Report to Shareholders.  The Company does not undertake to publicly update or revise its forward looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.

AMWD-F AMWD-E

AMERICAN WOODMARK CORPORATION

Unaudited Financial Highlights

(in thousands, except share data)

Operating Results

Three Months Ended

July 31

2011

2010

Net Sales

$    131,199

$    109,303

Cost of Sales & Distribution

112,792

94,916

Gross Profit

18,407

14,387

Sales & Marketing Expense

15,976

14,103

G&A Expense

6,341

5,822

Restructuring Charges

15

23

Operating Loss

(3,925)

(5,561)

Interest & Other (Income) Expense

(17)

(26)

Income Tax Benefit

(1,192)

(2,117)

Net Loss

$      (2,716)

$      (3,418)

Earnings Per Share:

Weighted Average Shares Outstanding - Diluted

14,299,683

14,222,151

Loss Per Diluted Share

$        (0.19)

$        (0.24)

Condensed Consolidated Balance Sheet

July 31

2011

April 30

2011

Cash & Cash Equivalents

$      56,118

$      55,420

Customer Receivables

30,703

31,067

Inventories

25,186

24,471

Other Current Assets

9,909

9,458

Total Current Assets

121,916

120,416

Property, Plant & Equipment

97,632

100,628

Restricted Cash

14,419

14,419

Other Assets

33,590

32,907

Total Assets

$    267,557

$    268,370

Current Portion - Long-Term Debt

$           932

$           928

Accounts Payable & Accrued Expenses

50,637

49,916

Total Current Liabilities

51,569

50,844

Long-Term Debt

24,497

24,655

Other Liabilities

40,085

38,906

Total Liabilities

116,151

114,405

Stockholders' Equity

151,406

153,965

Total Liabilities & Stockholders' Equity

$    267,557

$    268,370

Condensed Consolidated Statements of Cash Flows

Three Months Ended

July 31

2011

2010

Net Cash Provided by Operating Activities

$        4,208

$        1,686

Net Cash Used by Investing Activities

(2,087)

(2,035)

Free Cash Flow

2,121

(349)

Net Cash Used by Financing Activities

(1,423)

(1,126)

Net Increase/(Decrease) in Cash and Cash Equivalents

698

(1,475)

Cash and Cash Equivalents, Beginning of Period

55,420

53,233

Cash and Cash Equivalents, End of Period

$      56,118

$      51,758

SOURCE American Woodmark Corporation



RELATED LINKS

http://www.americanwoodmark.com