American Woodmark Corporation Announces First Quarter Results

Aug 21, 2012, 06:30 ET from American Woodmark Corporation

WINCHESTER, Va., Aug. 21, 2012 /PRNewswire/ -- American Woodmark Corporation (NASDAQ: AMWD) today announced results for the first quarter ended July 31, 2012, of its fiscal year 2013 that ends on April 30, 2013. 

Net sales rose by 13% compared with the first quarter of the prior fiscal year to $148,252,000.  The Company experienced sales gains of more than 40% in its new construction business, while its remodeling sales were in line with the prior year's first quarter.

The Company generated net income excluding restructuring charges of $1.0 million, or $0.07 per diluted share during the first quarter of fiscal year 2013, compared with a net loss of ($2.7 million) or ($0.19) per diluted share in the first quarter of its prior fiscal year.  Results in the first quarter of fiscal year 2013 included net-of-tax restructuring costs of $0.5 million, or $0.03 per diluted share, related to the permanent closure of two manufacturing plants in April 2012 and May 2012.  Net income for the first quarter of fiscal year 2013 inclusive of these charges was $0.6 million, or $0.04 per diluted share.

Gross profit for the first quarter of fiscal year 2013 was 14.9% of net sales, compared with 14.0% of net sales in the prior year's first quarter. Gross profit was favorably impacted by reductions in fixed overhead costs associated with the plant closures and the beneficial impact of higher sales volume. This favorability was partially offset by the impact of rising materials costs and operational inefficiencies connected with the transition of production related to the plant closures.  

Selling, general and administrative costs were 13.6% of net sales in the first quarter of fiscal year 2013, improved from 17.0% of net sales in the prior year's first quarter.  The improvement in the Company's operating expense ratio was driven by increased sales levels that enabled favorable leverage, combined with cost savings from modifications to the Company's retirement programs and reduced spending on sales promotions and product displays.

The Company generated free cash flow (defined as cash provided by operating activities net of cash used for investing activities) of ($5.6 million) during the first quarter of fiscal year 2013, compared with $2.1 million in the prior year's first quarter.  The Company's adverse swing in free cash flow was primarily related to plant closure and severance payments related to its recently completed restructuring activities and the resumption of contributions to its pension plans.

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 nine manufacturing facilities and nine service centers across the country.

Safe harbor statement under the Private Securities Litigation Reform Act of 1995:  All forward‑looking 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.

  

AMERICAN WOODMARK CORPORATION

Unaudited Financial Highlights

(in thousands, except share data)

Operating Results

Three Months Ended

July 31

2012

2011

Net Sales

$   148,252

$   131,199

Cost of Sales & Distribution

126,209

112,792

Gross Profit

22,043

18,407

Sales & Marketing Expense

14,520

15,976

G&A Expense

5,639

6,341

Restructuring Charges

777

15

Operating Income (Loss)

1,107

(3,925)

Interest & Other (Income) Expense

92

(17)

Income Tax Expense (Benefit)

454

(1,192)

Net Income (Loss)

$         561

$     (2,716)

Earnings Per Share:

Weighted Average Shares Outstanding - Diluted

14,568,740

14,299,683

Income (Loss) Per Diluted Share

$        0.04

$       (0.19)

Net income (loss), as reported

$         561

$     (2,716)

Restructuring Charges, net of tax

473

6

Net income (loss), excluding restructuring charges

$      1,034

$     (2,710)

Income (Loss) Per Diluted Share, excluding restructuring charges

$        0.07

$       (0.19)

  

Condensed Consolidated Balance Sheet

 July 31 

 April 30 

2012

2012

Cash & Cash Equivalents

$  60,800

$  66,620

Customer Receivables

33,793

32,533

Inventories

24,478

22,340

Other Current Assets

12,711

9,609

Total Current Assets

131,782

131,102

Property, Plant & Equipment

73,501

75,375

Restricted Cash

7,064

7,064

Other Assets

48,371

51,580

Total Assets

$260,718

$265,121

Current Portion - Long-Term Debt

$      906

$      875

Accounts Payable & Accrued Expenses

54,696

58,346

Total Current Liabilities

55,602

59,221

Long-Term Debt

23,703

23,790

Other Liabilities

50,462

52,090

Total Liabilities

129,767

135,101

Stockholders' Equity

130,951

130,020

Total Liabilities & Stockholders' Equity

$260,718

$265,121

  

Condensed Consolidated Statements of Cash Flows

Three Months Ended

July 31

2012

2011

Net Cash Provided (Used) by Operating Activities

$ (3,772)

$  4,208

Net Cash Used by Investing Activities

(1,863)

(2,087)

Free Cash Flow

(5,635)

2,121

Net Cash Used by Financing Activities

(185)

(1,423)

Net Increase/(Decrease) in Cash and Cash Equivalents

(5,820)

698

Cash and Cash Equivalents, Beginning of Period

66,620

55,420

Cash and Cash Equivalents, End of Period

$60,800

$56,118

AMWD-F AMWD-E

 

SOURCE American Woodmark Corporation



RELATED LINKS

http://www.americanwoodmark.com