American Woodmark Corporation Announces Third Quarter Results

WINCHESTER, Va., Feb. 19, 2013 /PRNewswire/ -- American Woodmark Corporation (NASDAQ: AMWD) today announced results for the third quarter ended January 31, 2013, of its fiscal year that ends on April 30, 2013.

Net sales rose by 26% compared with the third quarter of the prior fiscal year to $151.3 million. Net sales rose by 21% to $459.4 million during the nine-month period ended January 31, 2013, compared with the comparable period of the prior fiscal year. The Company experienced sales gains in each of its sales channels during the third quarter of fiscal year 2013, led by new construction sales growth of more than 50%.

The Company generated net income excluding restructuring charges of $2.1 million, or $0.14 per diluted share during the third quarter of fiscal year 2013, compared with a net loss of ($2.8 million) or ($0.20) per diluted share in the third quarter of its prior fiscal year. The Company generated net income excluding restructuring charges of $5.2 million or $0.35 per diluted share in the nine-month period ended January 31, 2013, compared with a net loss of ($8.5 million) or ($0.59) per diluted share in the comparable period of the prior fiscal year. Results in fiscal year 2013 included net-of-tax restructuring costs of $0.1 million, or $0.00 per diluted share in the third quarter, and $0.6 million, or $0.04 per diluted share in the first nine months, related to the permanent closure of two manufacturing plants in April 2012 and May 2012. Net income inclusive of these charges for the third quarter and first nine months of fiscal year 2013 was $2.1 million, or $0.14 per diluted share, and $4.6 million, or $0.31 per diluted share, respectively.

Gross profit for the third quarter of fiscal year 2013 was 15.5% of net sales, compared with 12.2% of net sales in the prior year's third quarter. Gross profit was 15.3% of net sales during the first nine months of fiscal year 2013, compared with 12.9% of net sales during the comparable period of the prior fiscal year. Gross profit was favorably impacted by reductions in fixed overhead costs associated with the plant closures, by the beneficial impact of higher sales volume and by other cost savings realized from the Company's restructuring. This favorability was partially offset by the lingering impact of operational inefficiencies connected with the transition of production related to the plant closures during a period of rising sales, as well as rising materials costs.  

Selling, general and administrative costs were 13.1% of net sales in the third quarter of fiscal year 2013, improved from 16.6% of net sales in the prior year's third quarter. Selling, general and administrative costs improved to 13.4% of net sales in the first nine months of fiscal year 2013, down from 16.6% of net sales in the comparable period of the prior fiscal year. 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.

The Company generated free cash flow (defined as cash provided by operating activities net of cash used for investing activities) of  $1.3 million during the third quarter of fiscal year 2013, compared with $2.6 million in the prior year's third quarter. The reduction in the Company's free cash flow was driven by the timing of the Company's collections from its customers and by contributions made to the Company's pension plan, which more than offset the impact of higher net income.

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.

AMWD-F and AMWD-G

AMERICAN WOODMARK CORPORATION











Unaudited Financial Highlights











(in thousands, except share data)











Operating Results














Three Months Ended


Nine Months Ended




January 31


January 31




2013


2012


2013


2012











Net Sales


$           151,346


$           119,976


$           459,358


$           379,593

Cost of Sales & Distribution


127,839


105,388


389,014


330,484


Gross Profit


23,507


14,588


70,344


49,109

Sales & Marketing Expense


13,083


13,671


42,576


44,155

G&A Expense


6,714


6,273


18,977


18,780

Restructuring Charges


118


10,347


979


10,362

Insurance Proceeds


-


-


(399)


-


Operating Income (Loss)


3,592


(15,703)


8,211


(24,188)

Interest & Other (Income) Expense


116


(50)


349


(104)

Income Tax Expense (Benefit)


1,419


(6,539)


3,294


(9,278)


Net Income (Loss)


$               2,057


$             (9,114)


$               4,568


$           (14,806)











Earnings Per Share:









Weighted Average Shares Outstanding - Diluted


14,904,524


14,361,953


14,719,441


14,315,318











Income (Loss) Per Diluted Share


$                 0.14


$               (0.63)


$                 0.31


$               (1.03)











Net income (loss), as reported


$               2,057


$             (9,114)


$               4,568


$           (14,806)

Restructuring Charges, net of tax


72


6,312


597


6,321

Net income (loss), excluding restructuring charges


$               2,129


$             (2,802)


$               5,165


$             (8,485)











Income (Loss) Per Diluted Share, excluding restructuring charges


$                 0.14


$               (0.20)


$                 0.35


$               (0.59)

 











Condensed Consolidated Balance Sheet


















 January 31 


 April 30 








2013


2012











Cash & Cash Equivalents






$       66,004


$       66,620

Customer Receivables






40,954


32,533

Inventories






28,144


22,340

Other Current Assets






14,562


9,609


Total Current Assets






149,664


131,102

Property, Plant & Equipment






74,825


75,375

Restricted Cash






7,064


7,064

Other Assets






39,213


51,580


Total Assets






$     270,766


$     265,121











Current Portion - Long-Term Debt






$         1,046


$            875

Accounts Payable & Accrued Expenses






58,755


58,346


Total Current Liabilities






59,801


59,221

Long-Term Debt






23,419


23,790

Other Liabilities






47,072


52,090


Total Liabilities






130,292


135,101

Stockholders' Equity






140,474


130,020


Total Liabilities & Stockholders' Equity






$     270,766


$     265,121

 











Condensed Consolidated Statements of Cash Flows


















Nine Months Ended








January 31








2013


2012











Net Cash Provided by Operating Activities






$         2,636


$       13,422

Net Cash Used by Investing Activities






(4,571)


(7,588)

Free Cash Flow






(1,935)


5,834











Net Cash Provided (Used) by Financing Activities






1,319


(2,027)

Net Increase/(Decrease) in Cash and Cash Equivalents






(616)


3,807

Cash and Cash Equivalents, Beginning of Period






66,620


55,420











Cash and Cash Equivalents, End of Period






$       66,004


$       59,227

SOURCE American Woodmark Corporation



RELATED LINKS
http://www.americanwoodmark.com

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