American Woodmark Corporation Announces Second Quarter Results

Authorizes Stock Repurchase

PR Newswire

WINCHESTER, Va., Nov. 26, 2013 /PRNewswire/ -- American Woodmark Corporation (AMWD) today announced results for its second fiscal quarter ended October 31, 2013.

Net sales for the second fiscal quarter increased 19% to $190.5 million compared with the same quarter of the prior fiscal year. Net sales for the first six months of the current fiscal year increased 20% to $368.6 million from the comparable period of the prior fiscal year. The Company experienced growth in both remodeling and new construction during the second quarter of fiscal year 2014, with new construction growth in excess of 40%.

Net income was $5.3 million ($0.34 per diluted share) and $11.9 million ($0.77 per diluted share) for the three months and six months, respectively, of the current fiscal year compared with $2.0 million ($0.13 per diluted share) and $2.5 million ($0.17 per diluted share) for the three months and six months, respectively, of the prior fiscal year. Exclusive of after-tax restructuring charges and insurance proceeds, the Company generated $5.3 million ($0.34 per diluted share) and $11.9 million ($0.77 per diluted share) of net income for the three months and six months, respectively, of the current fiscal year compared with $1.8 million ($0.12 per diluted share) and $2.8 million ($0.19 per diluted share) for the three months and six months, respectively, of the prior fiscal year.

Gross profit for the second quarter of the current fiscal year was 16.9% of net sales compared with 15.5% in the same quarter of the prior year. Gross profit for the first six months of the current fiscal year was 17.9% of net sales compared with 15.2% for the same period in the prior year. Gross profit in both the three month and six month periods was favorably impacted by higher sales volume and improved operating efficiencies. This favorability was partially offset by rising material costs and payments earned by employees under the Company's pay-for-performance plans.

Selling, general and administrative costs for the second quarter of the current fiscal year were 12.3% of net sales compared with 13.5% in the same quarter of the prior year. Selling, general and administrative costs for the first six months of the current fiscal year were 12.5% of net sales compared with 13.6% for the same period in the prior year. The improvement in the Company's operating expense ratio in both periods was driven by favorable leverage from increased sales, expense controls, and cost savings from modifications to the Company's retirement programs. This favorability was partially offset by increases in variable costs related to higher sales activity and increased performance-based compensation.

The Company generated net cash from operating activities of $15.8 million during the first six months of fiscal year 2014 compared with $(2.2) 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 and timing associated with the payment of various accrued liabilities. Net cash used by investing activities increased to $5.8 million during the first six months of the current fiscal year compared with $1.1 million during the same period of the prior year due primarily to proceeds from asset sales in the prior year which did not reoccur in the current fiscal year.

The Board of Directors has authorized a stock repurchase program of up to $10 million of the Company's outstanding common shares, replacing all prior programs which have been terminated. Regarding the repurchase program, Kent Guichard, Chairman and Chief Executive Officer, commented, "After reviewing the Company's current program, the Board made the decision that smaller authorizations would provide more timely information regarding the distribution of cash to our shareholders. Going forward, the Board will approve repurchase authorizations that are most likely to occur within the following twelve months."

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.

AMERICAN WOODMARK CORPORATION











Unaudited Financial Highlights











(in thousands, except share data)











Operating Results














Three Months Ended


Six Months Ended




October 31


October 31




2013


2012


2013


2012











Net Sales


$ 190,532


$ 159,760


$ 368,627


$ 308,012

Cost of Sales & Distribution


158,258


134,966


302,638


261,175


Gross Profit


32,274


24,794


65,989


46,837

Sales & Marketing Expense


15,867


14,973


30,351


29,493

G&A Expense


7,590


6,624


15,991


12,263

Restructuring Charges


31


84


113


861

Insurance Proceeds


-


(399)


(94)


(399)


Operating Income


8,786


3,512


19,628


4,619

Interest & Other (Income) Expense


155


141


315


233

Income Tax Expense


3,360


1,421


7,387


1,875


Net Income


$ 5,271


$ 1,950


$ 11,926


$ 2,511











Earnings Per Share:









Weighted Average Shares

Outstanding - Diluted


15,581,605


14,677,640


15,479,180


14,626,899















Income Per Diluted Share


$ 0.34


$ 0.13


$ 0.77


$ 0.17





























Condensed Consolidated Balance Sheet








October 31


April 30


2013


2013







Cash & Cash Equivalents

$

118,504


$

96,971

Customer Receivables


49,159



39,044

Inventories


31,131



29,338

Other Current Assets


11,749



12,565

Total Current Assets


210,543



177,918

Property, Plant & Equipment


73,774



74,064

Other Assets


40,523



42,011

Total Assets

$

324,840


$

293,993







Current Portion - Long-Term Debt

$

1,317


$

1,155

Accounts Payable & Accrued Expenses


73,325



67,953

Total Current Liabilities


74,642



69,108

Long-Term Debt


23,650



23,594

Other Liabilities


53,753



55,096

Total Liabilities


152,045



147,798

Stockholders' Equity


172,795



146,195

Total Liabilities & Stockholders' Equity

$

324,840


$

293,993

























Condensed Consolidated Statements of Cash Flows








Six Months Ended


October 31


2013


2012







Net Cash Provided (Used) by Operating Activities

$

15,812


$

(2,153)

Net Cash Used by Investing Activities


(5,796)



(1,081)

Free Cash Flow


10,016



(3,234)







Net Cash Provided (Used) by Financing Activities


11,517



(336)

Net Increase (Decrease) in Cash and Cash Equivalents


21,533



(3,570)

Cash and Cash Equivalents, Beginning of Period


96,971



66,620







Cash and Cash Equivalents, End of Period

$

118,504


$

63,050

















AMWD-F and AMWD-E

 

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