First Quarter Earnings Analysis - Report on American Woodmark

NEW YORK, September 16, 2015 /PRNewswire/ --

ACI Association has initiated research coverage on American Woodmark Corporation (NYSE: AMWD). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.

Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/reports?keyword=AMWD

Highlights from our AMWD Report include:

• Top-line Review - On August 20, 2015, American Woodmark Corporation announced consolidated results for its first quarter fiscal 2016 (period ended July 31, 2015). The Company witnessed a 9.1% increase in net sales to $231.2 million from $211.9 million in the corresponding period a year ago. The Company experienced growth in both the dealer and new construction channels during the first quarter of fiscal year 2016. As per the first quarter earnings transcript of American Woodmark, release by Seeking Alpha, Senior Vice President and CFO, Scott Culbreth informed that the Company's new construction based revenue increased over 18% for the quarter while combined home center and dealer remodel revenues remained flat.

• Operational Performance - Meanwhile, gross profit for Q1 FY 2016 stood at $50.2 million, higher than $37.1 million in previous year quarter, favorably impacted by higher sales volume, customer management, mix pricing and improved operating efficiency. Gross profit of the Company was 21.7% of net sales compared with 17.5% in the same quarter of the prior year. Additionally, selling, general and administrative costs for Q1 fiscal 2016 were 11.4% of net sales compared with 11.3% in the same quarter of the prior year, driven by increased performance based compensation costs. However, operating income of the Company increased 79.9% YoY to $23.7 million during Q1 FY 2016.

• A Quick Look at Bottom-line Performance - Net Income stood at $15.2 million, in Q1 fiscal 2016, compared to $9.2 million, in Q1 fiscal 2015. Diluted earnings per share for the period came at $0.92, more than $0.59 in prior year quarter. As per the transcript of the conference call, Scott Culbreth stated, "Although the market remains uncertain, we continue to be pleased with our progress. Our gross margin rate improved sequentially for the third straight quarter and we delivered solid sales and earnings growth. Looking forward, we maintained our expectations, we shared in our last call, it will increase margin rates and grow net income in fiscal year 2016."

• Cash Flows Statement Updates - The Company generated net cash from operating activities of $15.0 million during the Q1 fiscal 2016, higher from $9.3 million during the same period in the prior year, driven primarily by higher operating profitability. Net cash used by investing activities was $15.3 million during the Q1 FY 2016 compared with $3.3 million during the previous year quarter, primarily due to increased investment in property, plant and equipment. Net cash provided by financing activities was $3.8 million compared with a $3.6 million of cash during the same period last year.

To find out how this influences our rating on American Woodmark Corporation read the full report in its entirety here: http://www.aciassociation.com/reports?keyword=AMWD

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