American Woodmark Corporation Announces Second Quarter Results

Authorizes Stock Repurchase

Nov 24, 2015, 06:30 ET from American Woodmark Corporation

WINCHESTER, Va., Nov. 24, 2015 /PRNewswire/ -- American Woodmark Corporation (NASDAQ: AMWD) today announced results for its second fiscal quarter ended October 31, 2015.

Net sales for the second fiscal quarter increased 18% to $256.3 million compared with the same quarter of the prior fiscal year.  Net sales for the first six months of the current fiscal year increased 13% to $487.5 million from the comparable period of the prior fiscal year.  The Company experienced growth in all channels during the second quarter of fiscal year 2016.

Net income was $18.2 million ($1.10 per diluted share) for the second quarter of the current fiscal year compared with $7.7 million ($0.48 per diluted share) for the second quarter of the prior fiscal year.  Net income for the first six months of fiscal year 2016 was $33.3 million ($2.03 per diluted share) compared with $16.9 million ($1.07 per diluted share) for the same period of the prior fiscal year.

Gross profit for the second quarter of the current fiscal year was 21.9% of net sales compared with 17.0% in the same quarter of the prior year.  Gross profit for the first six months of the current fiscal year was 21.8% of net sales compared with 17.2% for the same period in the prior year.  Gross profit in the current quarter and the first six months of the current fiscal year was favorably impacted by higher sales volume and improved operating efficiency.  

Selling, general and administrative costs for the second quarter of fiscal year 2016 were 10.7% of net sales compared with 11.3% in the same quarter of the prior year.  Selling, general and administrative costs for the first six months of the current fiscal year were 11.1% of net sales compared with 11.2% for the same period in the prior year.  The improvement in the Company's operating expense ratio in the current quarter and the first six 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 $39.4 million during the first half of fiscal year 2016 compared with $18.6 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, lower increases in inventory levels and higher accrued expenses.  Net cash used by investing activities was $25.8 million during the first half of the current fiscal year compared with $26.0 million during the same period of the prior year due to a $16.5 million reduced investment in short-term certificates of deposit, which was partially offset by increased investment in promotional displays, property, plant and equipment of $16.4 million.  Net cash provided by financing activities of $1.9 million decreased $0.6 million during the first half of the current fiscal year compared to the same period in the prior year as the company repurchased 108,787 shares of common stock at a cost of $7.0 million, a $1.9 million reduction from the prior year, and proceeds from the exercise of stock options decreased $1.9 million.

On November 19, 2015, the Board of Directors authorized an additional stock repurchase program of up to $20 million of the Company's outstanding common shares.  This authorization is in addition to the stock repurchase program authorized on November 20, 2014.  Management expects to fund share repurchases using available cash and cash generated from operations.

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

Six Months Ended

October 31

October 31

2015

2014

2015

2014

Net Sales

$

256,292

$

217,693

$

487,490

$

429,610

Cost of Sales & Distribution

200,240

180,712

381,265

355,515

Gross Profit

56,052

36,981

106,225

74,095

Sales & Marketing Expense

16,783

16,296

32,502

31,811

G&A Expense

10,733

8,245

21,464

16,656

Restructuring Charges, net

3

Operating Income

28,536

12,440

52,259

25,625

Interest & Other (Income) Expense

3

118

5

249

Income Tax Expense

10,353

4,651

18,916

8,467

Net Income

$

18,180

$

7,671

$

33,338

$

16,909

Earnings Per Share:

Weighted Average Shares Outstanding - Diluted

16,472,645

15,960,236

16,446,937

15,864,560

Income Per Diluted Share

$

1.10

$

0.48

$

2.03

$

1.07

 

 

 

Condensed Consolidated Balance Sheet

(Unaudited)

October 31

 April 30

2015

2015

Cash & Cash Equivalents

$

164,972

$

149,541

Investments - certificates of deposit

29,250

35,500

Customer Receivables

61,205

46,142

Inventories

37,801

35,988

Other Current Assets

15,730

14,324

Total Current Assets

308,958

281,495

Property, Plant & Equipment

101,776

85,516

Other Assets

39,319

31,893

Total Assets

$

450,053

$

398,904

Current Portion - Long-Term Debt

$

1,541

$

1,457

Accounts Payable & Accrued Expenses

99,698

83,333

Total Current Liabilities

101,239

84,790

Long-Term Debt

21,033

21,498

Other Liabilities

60,854

62,774

Total Liabilities

183,126

169,062

Stockholders' Equity

266,927

229,842

Total Liabilities & Stockholders' Equity

$

450,053

$

398,904

 

 

Condensed Consolidated Statements of Cash Flows

(Unaudited)

Six Months Ended

October 31

2015

2014

Net Cash Provided by Operating Activities

$

39,350

$

18,637

Net Cash Used by Investing Activities

(25,795)

(25,984)

Net Cash Provided by Financing Activities

1,876

2,510

Net Increase (Decrease) in Cash and Cash Equivalents

15,431

(4,837)

Cash and Cash Equivalents, Beginning of Period

149,541

135,700

Cash and Cash Equivalents, End of Period

$

164,972

$

130,863

 

 

 

SOURCE American Woodmark Corporation



RELATED LINKS

http://www.americanwoodmark.com