American Woodmark Corporation Announces Third Quarter Results

PR Newswire

WINCHESTER, Va., Feb. 18, 2014 /PRNewswire/ -- American Woodmark Corporation (AMWD) today announced results for its third fiscal quarter ended January 31, 2014.

Net sales for the third fiscal quarter increased 12% to $169.0 million compared with the same quarter of the prior fiscal year.  Net sales for the first nine months of the current fiscal year increased 17% to $537.7 million from the comparable period of the prior fiscal year.  The Company experienced growth in both remodeling and new construction during the third quarter of fiscal year 2014, with new construction growth in excess of 25%.   

Net income was $2.9 million ($0.18 per diluted share) and $14.8 million ($0.95 per diluted share) for the third quarter and first nine months, respectively, of the current fiscal year compared with $2.1 million ($0.14 per diluted share) and $4.6 million ($0.31 per diluted share) for the third quarter and first nine months, respectively, of the prior fiscal year.  Exclusive of after-tax restructuring charges and insurance proceeds, the Company generated $2.9 million ($0.18 per diluted share) and $14.9 million ($0.95 per diluted share) of net income for the third quarter and first nine months, respectively, of the current fiscal year compared with $2.1 million ($0.14 per diluted share) and $4.9 million ($0.33 per diluted share) for the third quarter and first nine months, respectively, of the prior fiscal year.     

Gross profit for the third quarter of the current fiscal year was 15.4% of net sales compared with 15.5% in the same quarter of the prior year.  Gross profit for the first nine months of the current fiscal year was 17.1% of net sales compared with 15.3% for the same period in the prior year.  Gross profit in both the three month and nine month periods was favorably impacted by higher sales volume and improved labor efficiency.  This favorability was offset by higher material and distribution costs. 

Selling, general and administrative costs for the third quarter of the current fiscal year were 12.4% of net sales compared with 13.0% in the same quarter of the prior year.  Selling, general and administrative costs for the first nine months of the current fiscal year were 12.5% of net sales compared with 13.4% 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, on-going expense control, and lower performance based compensation costs.  This favorability was partially offset by increases in variable costs related to higher sales activity.   

The Company generated net cash from operating activities of $23.5 million during the first nine 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, lower increases in inventory levels to support higher sales, timing associated with the payment of various accrued liabilities, and lower pension contributions.  Net cash used by investing activities increased to $8.3 million during the first nine months of the current fiscal year compared with $4.2 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.

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-E

 



AMERICAN WOODMARK CORPORATION










Unaudited Financial Highlights










(in thousands, except share data)










Operating Results












Three Months Ended


Nine Months Ended



January 31


January 31



2014


2013


2014


2013










Net Sales

$           169,033


$           151,346


$           537,660


$           459,358

Cost of Sales & Distribution

143,032


127,839


445,670


389,014


Gross Profit

26,001


23,507


91,990


70,344

Sales & Marketing Expense

14,287


13,083


44,638


42,576

G&A Expense

6,564


6,714


22,555


18,977

Restructuring Charges

48


118


161


979

Insurance Proceeds

-


-


(94)


(399)


Operating Income

5,102


3,592


24,730


8,211

Interest & Other (Income) Expense

149


116


464


349

Income Tax Expense

2,052


1,419


9,439


3,294


Net Income

$               2,901


$               2,057


$             14,827


$               4,568










Earnings Per Share:








Weighted Average Shares








 Outstanding - Diluted

15,827,666


14,904,524


15,595,342


14,719,441










Income Per Diluted Share

$                 0.18


$                 0.14


$                 0.95


$                 0.31










 

 

Condensed Consolidated Balance Sheet









 January 31


 April 30




2014


2013








Cash & Cash Equivalents

$           126,053


$             96,971


Customer Receivables

48,107


39,044


Inventories

29,671


29,338


Other Current Assets

11,045


12,565



Total Current Assets

214,876


177,918


Property, Plant & Equipment

73,480


74,064


Other Assets

39,508


42,011



Total Assets

$           327,864


$           293,993








Current Portion - Long-Term Debt

$               1,436


$               1,155


Accounts Payable & Accrued Expenses

69,855


67,953



Total Current Liabilities

71,291


69,108


Long-Term Debt

23,311


23,594


Other Liabilities

52,728


55,096



Total Liabilities

147,330


147,798


Stockholders' Equity

180,534


146,195



Total Liabilities & Stockholders' Equity

$           327,864


$           293,993








Condensed Consolidated Statements of Cash Flows









Nine Months Ended




January 31




2014


2013








Net Cash Provided by Operating Activities

$             23,544


$               2,237


Net Cash Used by Investing Activities

(8,277)


(4,172)


Free Cash Flow

15,267


(1,935)








Net Cash Provided by Financing Activities

13,815


1,319


Net Increase (Decrease) in Cash and Cash Equivalents

29,082


(616)


Cash and Cash Equivalents, Beginning of Period

96,971


66,620








Cash and Cash Equivalents, End of Period

$           126,053


$             66,004




















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