American Woodmark Corporation Announces First Quarter Results

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

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