American Woodmark Corporation Announces Second Quarter Results

22 Nov, 2011, 06:30 ET from American Woodmark Corporation

WINCHESTER, Va., Nov. 22, 2011 /PRNewswire/ -- American Woodmark Corporation (NASDAQ: AMWD) today announced results for the second quarter of its fiscal year 2012, that ended on October 31, 2011.  

Net sales rose by 19% to $128,418,000 compared with the second quarter of the prior fiscal year.  Net sales rose by 20% during the six-month period ended October 31, 2011 compared with the comparable period of the prior fiscal year to $259,617,000.  The Company experienced double digit sales gains in each of its sales channels during the second quarter of fiscal year 2012.

The Company generated a net loss of ($2,976,000) or ($0.21) per diluted share during the second quarter of fiscal year 2012, compared with a net loss of ($7,384,000) or ($0.52) per diluted share in the second quarter of its prior fiscal year.  The Company generated a net loss of ($5,692,000) or ($0.40) per diluted share in the six-month period ended October 31, 2011, compared with a net loss of ($10,802,000) or ($0.76) per diluted share in the comparable period of the prior fiscal year.

Gross profit for the second quarter of fiscal year 2012 was 12.5% of net sales, compared with 9.1% in the second quarter of the prior fiscal year. Gross profit was 13.3% of net sales during the first six months of fiscal year 2012, compared with 11.2% of net sales during the comparable period of the prior fiscal year.  The improvement in gross profit margin during the three and six month periods primarily reflected the beneficial impact of increased sales volume on direct labor and manufacturing overhead costs.  These beneficial factors were partially offset by the unfavorable impact of higher material and fuel costs during both periods and by the impact of higher sales promotional costs during the six month period.

Selling, general and administrative costs improved to 16.1% of net sales in the second quarter of fiscal year 2012, down from 20.3% of net sales in the second quarter of the prior fiscal year.  Selling, general and administrative costs improved to 16.6% of net sales in the first six months of fiscal year 2012, down from 19.3% in the comparable period of the prior fiscal year.  The Company's operating expense ratio was favorably impacted by cost containment efforts and a reduction in display and product launch costs compared with prior year levels.

The Company generated positive free cash flow (defined as cash provided by operating activities net of cash used for investing activities) of $1.1 million in the second quarter of fiscal year 2012, compared with positive free cash flow generated in the second quarter of the prior fiscal year of $5.5 million.  The Company's free cash flow in the prior fiscal year was aided by proceeds from the sale of a closed plant and by a larger federal income tax refund than was received in the current fiscal year.

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-G

AMERICAN WOODMARK CORPORATION

Unaudited Financial Highlights

(in thousands, except share data)

Operating Results

Three Months Ended

Six Months Ended

October 31

October 31

2011

2010

2011

2010

Net Sales

$    128,418

$    107,613

$      259,617

$    216,916

Cost of Sales & Distribution

112,304

97,797

225,096

192,713

Gross Profit

16,114

9,816

34,521

24,203

Sales & Marketing Expense

14,508

15,805

30,484

29,908

G&A Expense

6,166

6,040

12,507

11,862

Restructuring Charges

-

16

15

39

Operating Loss

(4,560)

(12,045)

(8,485)

(17,606)

Interest & Other (Income) Expense

(37)

(87)

(54)

(113)

Income Tax Benefit

(1,547)

(4,574)

(2,739)

(6,691)

Net Loss

$      (2,976)

$      (7,384)

$        (5,692)

$    (10,802)

Earnings Per Share:

Weighted Average Shares Outstanding - Diluted

14,330,954

14,240,178

14,315,318

14,231,165

Loss Per Diluted Share

$        (0.21)

$        (0.52)

$          (0.40)

$        (0.76)

Condensed Consolidated Balance Sheet

October 31

April 30

2011

2011

Cash & Cash Equivalents

$        57,081

$      55,420

Customer Receivables

28,672

31,067

Inventories

24,748

24,471

Other Current Assets

8,510

9,458

Total Current Assets

119,011

120,416

Property, Plant & Equipment

95,413

100,628

Restricted Cash

14,419

14,419

Other Assets

33,891

32,907

Total Assets

$      262,734

$    268,370

Current Portion - Long-Term Debt

$             936

$           928

Accounts Payable & Accrued Expenses

46,851

49,916

Total Current Liabilities

47,787

50,844

Long-Term Debt

24,338

24,655

Other Liabilities

40,719

38,906

Total Liabilities

112,844

114,405

Stockholders' Equity

149,890

153,965

Total Liabilities & Stockholders' Equity

$      262,734

$    268,370

Condensed Consolidated Statements of Cash Flows

Six Months Ended

October 31

2011

2010

Net Cash Provided by Operating Activities

$          7,879

$        7,591

Net Cash Used by Investing Activities

(4,640)

(2,426)

Free Cash Flow

3,239

5,165

Net Cash Used by Financing Activities

(1,578)

(2,532)

Net Increase in Cash and Cash Equivalents

1,661

2,633

Cash and Cash Equivalents, Beginning of Period

55,420

53,233

Cash and Cash Equivalents, End of Period

$        57,081

$      55,866

SOURCE American Woodmark Corporation



RELATED LINKS

http://www.americanwoodmark.com