American Woodmark Corporation Announces Third Quarter Results

WINCHESTER, Va., Feb. 21, 2012 /PRNewswire/ -- American Woodmark Corporation (NASDAQ: AMWD) today announced results for the third quarter of its fiscal year 2012, that ended on January 31, 2012.  

Net sales rose by 8% compared with the third quarter of the prior fiscal year, to $119,976,000.  Net sales rose by 16% during the nine-month period ended January 31, 2012 compared with the comparable period of the prior fiscal year, to $379,593,000.  The Company experienced sales gains of more than 30% in its new construction business during the third quarter of fiscal year 2012 that more than offset a modest decline in its remodeling business.

The Company generated a net loss excluding restructuring costs of ($2,802,000) or ($0.19) per diluted share during the third quarter of fiscal year 2012, compared with a net loss of ($5,828,000) or ($0.41) per diluted share in the third quarter of its prior fiscal year.  The Company generated a net loss excluding restructuring costs of ($8,494,000) or ($0.59) per diluted share in the nine-month period ended January 31, 2012, compared with a net loss of ($16,630,000) or ($1.17) per diluted share in the comparable period of the prior fiscal year.

The Company announced several initiatives in December 2011 to reduce capacity and costs, including the permanent closure of two manufacturing plants, the decision to place a previously closed manufacturing plant up for sale, and the realignment of its retirement program, including the freezing of its pension plans effective April 30, 2012.  The Company is actively working toward completing these initiatives by April 30, 2012. In connection with these initiatives, the Company recorded net-of-tax charges of ($6,312,000), or ($0.44) per diluted share, during the third quarter of fiscal year 2012. Inclusive of these charges, net loss for the third quarter of fiscal year 2012 was ($9,114,000), or ($0.63) per diluted share, and ($14,806,000) or ($1.03) per diluted share for the nine-month period ended January 31, 2012.

Gross profit for the third quarter of fiscal year 2012 was 12.2% of net sales, compared with 10.9% in the third quarter of the prior fiscal year.  Gross profit was 12.9% of net sales during the first nine months of fiscal year 2012, compared with 11.1% of net sales during the comparable period of the prior fiscal year.  The improvement in gross profit margin during the three- and nine-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 materials and fuel costs during both periods and by the impact of higher sales promotional costs during the nine-month period.

Selling, general and administrative costs improved to 16.6% of net sales in the third quarter of fiscal year 2012, down from 19.3% of net sales in the third quarter of the prior fiscal year.  Selling, general and administrative costs improved to 16.6% of net sales in the first nine 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 free cash flow (defined as cash provided by operating activities net of cash used for investing activities) of positive $2.6 million in the third quarter of fiscal year 2012, compared with negative $1.8 million in the third quarter of its prior fiscal year.  For the nine-month period ended January 31, 2012, the Company's free cash flow was positive $5.8 million, compared with positive $3.4 million in the comparable period of the prior 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 forwardlooking 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


Nine Months Ended




January 31


January 31




2012


2011


2012


2011











Net Sales


$    119,976


$    111,443


$     379,593


$    328,359

Cost of Sales & Distribution


105,388


99,279


330,484


291,992


Gross Profit


14,588


12,164


49,109


36,367

Sales & Marketing Expense


13,671


16,069


44,155


45,977

G&A Expense


6,273


5,421


18,780


17,283

Restructuring Charges


10,347


16


10,362


55


Operating Loss


(15,703)


(9,342)


(24,188)


(26,948)

Interest & Other (Income) Expense


(50)


(33)


(104)


(146)

Income Tax Benefit


(6,539)


(3,481)


(9,278)


(10,172)


Net Loss


$      (9,114)


$      (5,828)


$      (14,806)


$    (16,630)











Earnings Per Share:









Weighted Average Shares Outstanding - Diluted


14,361,953


14,263,320


14,330,863


14,241,883











Loss Per Diluted Share


$        (0.63)


$        (0.41)


$          (1.03)


$        (1.17)











Condensed Consolidated Balance Sheet


















January 31


April 30








2012


2011











Cash & Cash Equivalents






$       59,227


$      55,420

Customer Receivables






25,011


31,067

Inventories






22,138


24,471

Other Current Assets






9,481


9,458


Total Current Assets






115,857


120,416

Property, Plant & Equipment






78,602


100,628

Restricted Cash






14,403


14,419

Other Assets






52,230


32,907


Total Assets






$     261,092


$    268,370











Current Portion - Long-Term Debt






$            972


$           928

Accounts Payable & Accrued Expenses






47,892


49,916


Total Current Liabilities






48,864


50,844

Long-Term Debt






23,887


24,655

Other Liabilities






53,765


38,906


Total Liabilities






126,516


114,405

Stockholders' Equity






134,576


153,965


Total Liabilities & Stockholders' Equity






$     261,092


$    268,370











Condensed Consolidated Statements of Cash Flows


















Nine Months Ended








January 31








2012


2011











Net Cash Provided by Operating Activities






$       13,422


$        7,713

Net Cash Used by Investing Activities






(7,588)


(4,300)

Free Cash Flow






5,834


3,413











Net Cash Used by Financing Activities






(2,027)


(4,104)

Net Increase/(Decrease) in Cash and Cash Equivalents





3,807


(691)

Cash and Cash Equivalents, Beginning of Period






55,420


53,233











Cash and Cash Equivalents, End of Period






$       59,227


$      52,542



SOURCE American Woodmark Corporation



RELATED LINKS
http://www.americanwoodmark.com

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