American Woodmark Corporation Announces Fourth Quarter Results

WINCHESTER, Va., June 5, 2012 /PRNewswire/ -- American Woodmark Corporation (NASDAQ: AMWD) today announced results for the fourth quarter of its fiscal year 2012, ending April 30, 2012. 

Net sales rose by 10% compared with the fourth quarter of the prior fiscal year to $136,221,000.  The Company experienced sales gains of more than 30% in its new construction business that more than offset a modest decline in its remodeling business during the fourth quarter of fiscal year 2012.  Net sales rose by 14% during the entire fiscal year 2012 to $515,814,000.

The Company generated a net loss excluding restructuring charges of ($2.3 million) or ($0.16) per diluted share during the fourth quarter of fiscal year 2012, compared with a net loss of ($3.4 million) or ($0.24) per diluted share in the fourth quarter of its prior fiscal year. Results for both periods were impacted by nonrecurring transactions.  Results in the fourth quarter of fiscal year 2012 included a $0.7 million after-tax write-down of slow moving inventories.  Results in the fourth quarter of fiscal year 2011 included an adverse tax basis adjustment of $1.4 million and an after-tax gain of $0.6 million from the sale of a building.  Excluding restructuring charges and these non-recurring items, the Company's net loss improved to ($1.6 million) or ($0.11) per diluted share in the fourth quarter of fiscal year 2012, from ($2.6 million) or ($0.18) per diluted share in the fourth quarter of fiscal year 2011.

The Company's net loss excluding restructuring charges for the entire fiscal year 2012 improved to ($10.8 million) or ($0.76) per diluted share, compared with a net loss of ($20.0 million) or ($1.40) per diluted share in the prior fiscal year.  Excluding restructuring charges and the non-recurring items discussed above, the Company's net loss improved to ($10.1 million) or ($0.71) per diluted share in fiscal year 2012, compared with ($19.2 million) or ($1.35) per diluted share in its prior fiscal year.

The Company previously announced several initiatives to reduce capacity and costs, including the permanent closure of two manufacturing plants and the realignment of its retirement program effective April 30, 2012.  The two plants ceased operations in April 2012 and May 2012, respectively.  In connection with these initiatives, the Company recorded net-of-tax charges during the fourth quarter of fiscal year 2012 of ($3.6 million), or ($0.26) per diluted share, and ($10.0 million) or ($0.69) per diluted share for the entire fiscal year 2012. Inclusive of these charges, net loss for the fourth quarter of fiscal year 2012 was ($6.0 million), or ($0.42) per diluted share, and for the entire fiscal year 2012 was ($20.8 million) or ($1.45) per diluted share.

Gross profit for the fourth quarter of fiscal year 2012 was 12.7% of net sales, compared with 13.2% of net sales in the fourth quarter of the prior fiscal year.  Gross profit for the entire fiscal year 2012 was 12.9% of net sales, compared with 11.7% of net sales during the prior fiscal year.  Gross profit for both the fourth quarter and the fiscal year was favorably impacted by labor efficiencies and the absorption of fixed overhead costs associated with higher sales volume.  However, the aforementioned inventory write-down of 0.8% of net sales, as well as inefficiencies resulting from the Company's restructuring efforts more than offset this favorability in the fourth quarter of 2012.  Gross margins were also adversely impacted in the fourth quarter by rising materials and freight costs and by higher sales promotion costs.  

Selling, general and administrative costs were 15.2% of net sales in the fourth quarter of fiscal year 2012, improved from 16.5% of net sales in the fourth quarter of the prior fiscal year.  Selling, general and administrative costs were 16.2% of net sales for the entire fiscal year 2012, improved from 18.5% in the prior fiscal year.  The improvement in the Company's operating expense ratio was driven by increased sales levels that enabled favorable leverage, which more than offset an increase in general and administrative expenses that was driven by increased performance-based compensation.

The Company generated positive free cash flow (defined as cash provided by operating activities net of cash used for investing activities) of $0.3 million during the fourth quarter of fiscal year 2012, compared with positive $4.3 million in the fourth quarter of its prior fiscal year.  The Company generated positive free cash flow of $6.1 million during fiscal year 2012, compared with positive $7.7 million in the prior fiscal year.  The declines in free cash flow for the fourth quarter and entire fiscal year were driven by outflows pertaining to restructuring activities and the absence of proceeds from the prior year's sale of a building.

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


Twelve Months Ended




April 30


April 30




2012


2011


2012


2011











Net Sales


$     136,221


$     124,230


$     515,814


$     452,589

Cost of Sales & Distribution


118,855


107,846


449,339


399,838


Gross Profit


17,366


16,384


66,475


52,751

Sales & Marketing Expense


14,116


15,057


58,271


61,034

G&A Expense


6,549


5,426


25,329


22,709

Restructuring Charges


5,959


7


16,321


62


Operating Loss


(9,258)


(4,106)


(33,446)


(31,054)

Interest & Other (Income) Expense


(54)


(948)


(158)


(1,094)

Income Tax Benefit


(3,224)


230


(12,502)


(9,942)


Net Loss


$        (5,980)


$        (3,388)


$      (20,786)


$      (20,018)











Earnings Per Share:









Weighted Average Shares Outstanding - Diluted


14,382,784


14,283,033


14,343,630


14,251,917











Loss Per Diluted Share


$          (0.42)


$          (0.24)


$          (1.45)


$          (1.40)











Net loss, as reported


$        (5,980)


$        (3,388)


$      (20,786)


$      (20,018)

Restructuring Charges, net of tax


3,635


4


9,956


39

Net loss, excluding restructuring charges


$        (2,345)


$        (3,384)


$      (10,830)


$      (19,979)











Loss Per Diluted Share, excluding restructuring charges


$          (0.16)


$          (0.24)


$          (0.76)


$          (1.40)











Condensed Consolidated Balance Sheet


















 April 30 


 April 30 








2012


2011











Cash & Cash Equivalents






$       66,620


$       55,420

Customer Receivables






32,533


31,067

Inventories






22,340


24,471

Other Current Assets






9,609


9,458


Total Current Assets






131,102


120,416

Property, Plant & Equipment






75,375


100,628

Restricted Cash






7,064


14,419

Other Assets






51,580


32,907


Total Assets






$     265,121


$     268,370











Current Portion - Long-Term Debt






$            875


$            928

Accounts Payable & Accrued Expenses






58,346


49,916


Total Current Liabilities






59,221


50,844

Long-Term Debt






23,790


24,655

Other Liabilities






52,090


38,906


Total Liabilities






135,101


114,405

Stockholders' Equity






130,020


153,965


Total Liabilities & Stockholders' Equity






$     265,121


$     268,370











Condensed Consolidated Statements of Cash Flows


















Twelve Months Ended








April 30








2012


2011











Net Cash Provided by Operating Activities






$       16,053


$       13,196

Net Cash Used by Investing Activities






(9,918)


(5,466)

Free Cash Flow






6,135


7,730











Net Cash Provided (Used) by Financing Activities






5,065


(5,543)

Net Increase in Cash and Cash Equivalents






11,200


2,187

Cash and Cash Equivalents, Beginning of Period






55,420


53,233











Cash and Cash Equivalents, End of Period






$       66,620


$       55,420

AMWD-F AMWD-E
 

SOURCE American Woodmark Corporation



RELATED LINKS
http://www.americanwoodmark.com

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.