American Woodmark Corporation Announces Third Quarter Results

Feb 25, 2016, 06:30 ET from American Woodmark Corporation

WINCHESTER, Va., Feb. 25, 2016 /PRNewswire/ -- American Woodmark Corporation (NASDAQ: AMWD) today announced results for its third fiscal quarter ended January 31, 2016.

Net sales for the third fiscal quarter increased 16% to $218.6 million compared with the same quarter of the prior fiscal year.  Net sales for the first nine months of the current fiscal year increased 14% to $706.1 million from the comparable period of the prior fiscal year.  The Company experienced growth in all channels during the third quarter of fiscal year 2016.

Net income was $12.0 million ($0.73 per diluted share) for the third quarter of the current fiscal year compared with $7.3 million ($0.45 per diluted share) for the third quarter of the prior fiscal year.  Net income for the first nine months of fiscal year 2016 was $45.4 million ($2.76 per diluted share) compared with $24.2 million ($1.52 per diluted share) for the same period of the prior fiscal year.

Gross profit for the third quarter of the current fiscal year was 20.4% of net sales compared with 18.6% in the same quarter of the prior year.  Gross profit for the first nine months of the current fiscal year was 21.4% of net sales compared with 17.7% for the same period in the prior year.  Gross profit in the current quarter and the first nine months of the current fiscal year was favorably impacted by higher sales volume and improved operating efficiency.  

Selling, general and administrative costs for the third quarter of fiscal year 2016 were 11.8% of net sales compared with 12.8% in the same quarter of the prior year.  Selling, general and administrative costs for the first nine months of the current fiscal year were 11.3% of net sales compared with 11.7% for the same period in the prior year.  The improvement in the Company's operating expense ratio in the current quarter and the first nine months of the current fiscal year was driven by favorable leverage from increased sales and on-going expense control.

The Company generated net cash from operating activities of $50.9 million during the first nine months of fiscal year 2016 compared with $36.0 million during the same period in the prior year.  The improvement in the Company's cash from operating activities was driven primarily by higher operating profitability, which was partially offset by higher customer receivables, accounts payable and accrued expenses consistent with higher sales.  Net cash used by investing activities was $33.7 million during the first nine months of the current fiscal year compared with $43.5 million during the same period of the prior year due to a $24.5 million reduced investment in certificates of deposit, which was partially offset by increased investment in promotional displays and property, plant and equipment of $14.7 million.  Net cash used by financing activities of $2.1 million increased $6.4 million during the first nine months of the current fiscal year compared to the same period in the prior year as the company repurchased 176,343 shares of common stock at a cost of $12.0 million, a $6.9 million increase from the prior 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 nine manufacturing facilities and seven 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.

AMERICAN WOODMARK CORPORATION

Unaudited Financial Highlights

(in thousands, except share data)

Operating Results

Three Months Ended

Nine Months Ended

January 31

January 31

2016

2015

2016

2015

Net Sales

$

218,632

$

188,963

$

706,122

$

618,573

Cost of Sales & Distribution

174,034

153,846

555,299

509,361

Gross Profit

44,598

35,117

150,823

109,212

Sales & Marketing Expense

16,674

16,010

49,176

47,821

G&A Expense

9,183

8,054

30,647

24,710

Restructuring Charges, net

3

6

Operating Income

18,741

11,050

71,000

36,675

Interest & Other (Income) Expense

58

74

63

323

Income Tax Expense

6,670

3,694

25,586

12,161

Net Income

$

12,013

$

7,282

$

45,351

$

24,191

Earnings Per Share:

Weighted Average Shares Outstanding - Diluted

16,457,308

16,131,140

16,450,394

15,953,420

Income Per Diluted Share

$

0.73

$

0.45

$

2.76

$

1.52

 

 

Condensed Consolidated Balance Sheet

(Unaudited)

January 31

 April 30

2016

2015

Cash & Cash Equivalents

$

164,679

$

149,541

Investments - certificates of deposit

23,000

35,500

Customer Receivables

49,529

46,142

Inventories

38,096

35,988

Other Current Assets

19,536

14,324

Total Current Assets

294,840

281,495

Property, Plant & Equipment

102,869

85,516

Investments - certificates of deposit

17,500

Other Assets

31,507

31,893

Total Assets

$

446,716

$

398,904

Current Portion - Long-Term Debt

$

1,574

$

1,457

Accounts Payable & Accrued Expenses

86,265

83,333

Total Current Liabilities

87,839

84,790

Long-Term Debt

23,634

21,498

Other Liabilities

57,452

62,774

Total Liabilities

168,925

169,062

Stockholders' Equity

277,791

229,842

Total Liabilities & Stockholders' Equity

$

446,716

$

398,904

 

 

Condensed Consolidated Statements of Cash Flows

(Unaudited)

Nine Months Ended

January 31

2016

2015

Net Cash Provided by Operating Activities

$

50,923

$

35,997

Net Cash Used by Investing Activities

(33,679)

(43,516)

Net Cash Provided (Used) by Financing Activities

(2,106)

4,344

Net Increase (Decrease) in Cash and Cash Equivalents

15,138

(3,175)

Cash and Cash Equivalents, Beginning of Period

149,541

135,700

Cash and Cash Equivalents, End of Period

$

164,679

$

132,525

 

 

 

SOURCE American Woodmark Corporation



RELATED LINKS

http://www.americanwoodmark.com