American Woodmark Corp (AMWD) Reports Mixed Q2 Results; Net Income Rises Amid Sales Decline
Net sales decreased by 15.6% year-over-year to $473.9 million in Q2.
Net income saw a 5.4% increase year-over-year, reaching $30.3 million.
Adjusted EBITDA grew by 7.0% year-over-year to $72.3 million.
American Woodmark Corp (NASDAQ:AMWD) announces a new $125 million stock repurchase program.
On November 30, 2023, American Woodmark Corp (NASDAQ:AMWD) released its 8-K filing, detailing its financial performance for the second quarter of fiscal year 2024. Despite a challenging demand environment, the company managed to deliver a solid financial performance, with net income increasing by 5.4% to $30.3 million compared to the same quarter last year. This improvement was attributed to operational enhancements in manufacturing, a stabilizing supply chain, and reduced overhead spending.
Financial Performance Overview
For the second quarter, American Woodmark Corp (NASDAQ:AMWD) reported a decrease in net sales of 15.6% year-over-year, totaling $473.9 million. However, net income rose to $30.3 million, or $1.85 per diluted share, up from $28.8 million, or $1.73 per diluted share, in the prior year's quarter. Adjusted earnings per share (EPS) also saw an increase, reaching $2.36 compared to $2.24 in the same quarter of the previous fiscal year. Adjusted EBITDA for the quarter improved by 7.0% to $72.3 million, representing 15.3% of net sales.
Half-Year Financial Highlights
Looking at the first half of fiscal 2024, net sales decreased by 12.0% to $972.1 million compared to the same period last year. Net income for the first six months showed a significant increase of 39.6% year-over-year, amounting to $68.2 million, or $4.13 per diluted share. Adjusted EPS for the period was $5.15, and Adjusted EBITDA increased by 18.8% to $147.5 million.
Balance Sheet and Cash Flow
As of October 31, 2023, American Woodmark Corp (NASDAQ:AMWD) had a strong liquidity position with $96.4 million in cash and an additional $323.2 million available under its revolving credit facility. The company also reported a healthy cash flow, with $143.7 million provided by operating activities and free cash flow of $109.9 million for the first half of the fiscal year.
Share Repurchase and Outlook
In a move to enhance shareholder value, the Board of Directors approved a new stock repurchase program authorizing up to $125 million in buybacks. This new authorization replaces the remaining $22.9 million from the previous program. For fiscal 2024, American Woodmark Corp (NASDAQ:AMWD) anticipates a low double-digit decline in net sales year-over-year, with Adjusted EBITDA expected to be in the range of $235 million to $250 million.
President and CEO Scott Culbreth commented on the results, stating,
Our teams delivered strong financial performance in the second quarter of fiscal year 2024 despite the slowing demand environment."
He also highlighted the company's unchanged net sales outlook for the remainder of the fiscal year and the expectation of stronger Adjusted EBITDA performance.
Senior Vice President and Chief Financial Officer Paul Joachimczyk added,
Given our strong performance for the first half of the fiscal year, we are increasing our full fiscal year 2024 Adjusted EBITDA outlook to $235 million to $250 million."
American Woodmark Corp (NASDAQ:AMWD) continues to focus on operational excellence and shareholder returns, as evidenced by its latest financial results and strategic decisions. Investors and stakeholders will be watching closely to see how the company navigates the current market conditions and maintains its financial health in the upcoming quarters.
Explore the complete 8-K earnings release (here) from American Woodmark Corp for further details.
This article first appeared on GuruFocus.
