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Quanex Building Products Announces Third Quarter 2021 Results and Reaffirms Full Year 2021 Guidance

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Solid Net Sales Growth Realized Across All Operating Segments
Strong Balance Sheet
Liquidity Continues to Increase
Repaid $15 Million of Bank Debt

HOUSTON, Sept. 02, 2021 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation (NYSE:NX) (“Quanex” or the “Company”) today announced its results for the three months ended July 31, 2021.

The Company reported the following selected financial results:

QUANEX BUILDING PRODUCTS CORPORATION

Q3 2021 Earnings Release

Three Months Ended July 31,

Nine Months Ended July 31,

($ in millions, except per share data)

2021

2020

2021

2020

Net Sales

$279.9

$212.1

$780.4

$596.2

Gross Margin

$60.0

$49.7

$175.7

$126.6

Gross Margin %

21.4%

23.4%

22.5%

21.2%

Net Income

$13.6

$10.8

$36.0

$16.3

Diluted EPS

$0.41

$0.33

$1.08

$0.50

Adjusted Net Income

$14.2

$11.1

$37.8

$18.7

Adjusted Diluted EPS

$0.42

$0.34

$1.13

$0.57

Adjusted EBITDA

$32.9

$27.7

$89.5

$65.2

Adjusted EBITDA Margin %

11.8%

13.1%

11.5%

10.9%

Cash Provided by Operating Activities

$18.5

$45.1

$47.4

$47.6

Free Cash Flow

$12.3

$40.7

$31.4

$26.9

(See Non-GAAP Terminology Definitions and Disclaimers section, Non-GAAP Financial Measure Disclosure table, Selected Segment Data table and Free Cash Flow Reconciliation table for additional information)

George Wilson, President and Chief Executive Officer, stated, “Demand for our products remained robust across all of our product lines throughout the third quarter of 2021. On a consolidated basis, net sales increased by approximately 32% year-over-year as compared to the third quarter of 2020. General inflation, time lag for index pricing, supply chain challenges and labor constraints all continue to have a negative impact on margins. In addition, our plant in Germany was down for approximately 14 days during the quarter due to flooding in Europe, but the plant was back up and running at full capacity by the end of July. Our balance sheet continues to strengthen, and we were able to repay $15.0 million in bank debt during the quarter while also repurchasing approximately $1.8 million of our common stock. We will remain focused on generating cash and paying down debt in the near-term.” (See Non-GAAP Terminology Definitions and Disclaimers section for additional information)

Third Quarter 2021 Results Summary

The Company reported net sales of $279.9 million during the three months ended July 31, 2021, which represents growth of 32.0% compared to $212.1 million for the same period of 2020. The increase was largely due to increased demand across all product lines and operating segments combined with increased pricing mostly related to the pass through of raw material cost inflation. In detail, Quanex posted net sales growth of 20.8% in its North American Fenestration segment, 19.3% in its North American Cabinet Components segment and 85.8% in its European Fenestration segment, excluding the foreign exchange impact and despite the challenges presented by flooding in Germany as previously noted. As a reminder, both of Quanex’s manufacturing facilities in the U.K. were shut down in late March of 2020 and did not resume operations until mid-to-late May 2020. (See Sales Analysis table for additional information)

The increase in earnings for the third quarter of 2021 was mainly due to higher volumes and improved operating leverage. This increase was somewhat offset by inflationary pressures and an increase in selling, general and administrative expenses, which was mostly attributable to more normalized medical costs combined with an increase in stock-based compensation expense.

Balance Sheet & Liquidity Update

As of July 31, 2021, Quanex had total debt of $74.0 million and its leverage ratio of Net Debt to LTM Adjusted EBITDA improved to 0.2x. (See Non-GAAP Terminology Definitions and Disclaimers section and Net Debt and LTM Adjusted EBITDA reconciliation tables for additional information)

The Company’s liquidity increased to $306.2 million as of July 31, 2021, consisting of $43.7 million in cash on hand plus availability under its Senior Secured Revolving Credit Facility due 2023, less letters of credit outstanding.

Share Repurchases

Quanex’s Board of Directors authorized a $60 million share repurchase program in September of 2018. Repurchases under this program will be made in open market transactions or privately negotiated transactions, subject to market conditions, applicable legal requirements, and other relevant factors. The program does not have an expiration date or a limit on the number of shares that may be repurchased. The Company repurchased 74,257 shares of common stock for approximately $1.8 million at an average price of $23.88 per share during the three months ended July 31, 2021. As of July 31, 2021, approximately $5.4 million remained under the existing share repurchase authorization.

Outlook

George Wilson, President and Chief Executive Officer, commented, “While we remain optimistic on the demand outlook for our products, we do expect inflation, labor costs, and supply chain challenges to continue pressuring margins throughout the fourth quarter of this year. We continue to pass these incremental costs along to our customers through indexes, surcharges, and price increases; however, there are time lags in each case. With this backdrop, on a consolidated basis, we are reaffirming net sales guidance of approximately $1.04 billion to $1.06 billion and Adjusted EBITDA* of $125 million to $130 million in fiscal 2021.”

*When Quanex provides expectations for Adjusted EBITDA on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and corresponding GAAP measures is generally not available without unreasonable effort. Certain items required for such a reconciliation are outside of the Company’s control and/or cannot be reasonably predicted or estimated, such as the provision for income taxes.

Conference Call and Webcast Information

The Company has scheduled a conference call for Friday, September 3, 2021, at 11:00 a.m. ET (10:00 a.m. CT). To participate in the conference call dial (877) 388-2139 for domestic callers and (541) 797-2983 for international callers, in both cases using the conference passcode 6642169, and ask for the Quanex call a few minutes prior to the start time. A link to the live audio webcast will also be available on the Company’s website at http://www.quanex.com in the Investors section under Presentations & Events. A telephonic replay of the call will be available approximately two hours after the live broadcast ends and will be accessible through September 10, 2021. To access the replay dial (855) 859-2056 for domestic callers and (404) 537-3406 for international callers, in both cases referencing conference passcode 6642169.

About Quanex

Quanex Building Products Corporation is an industry-leading manufacturer of components sold to Original Equipment Manufacturers (OEMs) in the building products industry. Quanex designs and produces energy-efficient fenestration products in addition to kitchen and bath cabinet components. For more information contact Scott Zuehlke, Senior Vice President, Chief Financial Officer & Treasurer, at 713-877-5327 or scott.zuehlke@quanex.com.

Non-GAAP Terminology Definitions and Disclaimers

Adjusted Net Income (defined as net income further adjusted to exclude purchase price accounting inventory step-ups, transaction costs, certain severance charges, gain/loss on the sale of certain fixed assets, restructuring charges, asset impairment charges, other net adjustments related to foreign currency transaction gain/loss and effective tax rates reflecting impacts of adjustments on a with and without basis) and Adjusted EPS are non-GAAP financial measures that Quanex believes provide a consistent basis for comparison between periods and more accurately reflects operational performance, as they are not influenced by certain income or expense items not affecting ongoing operations. EBITDA (defined as net income or loss before interest, taxes, depreciation and amortization and other, net) and Adjusted EBITDA (defined as EBITDA further adjusted to exclude purchase price accounting inventory step-ups, transaction costs, certain severance charges, gain/loss on the sale of certain fixed assets, restructuring charges and asset impairment charges) are non-GAAP financial measures that the Company uses to measure operational performance and assist with financial decision-making. Net Debt is defined as total debt (outstanding balance on the revolving credit facility plus financial lease obligations) less cash and cash equivalents. The leverage ratio of Net Debt to LTM Adjusted EBITDA is a financial measure that the Company believes is useful to investors and financial analysts in evaluating Quanex’s leverage. In addition, with certain limited adjustments, this leverage ratio is the basis for a key covenant in the Company’s credit agreement. Free Cash Flow is a non-GAAP measure calculated using cash provided by operating activities less capital expenditures. Free Cash Flow is measured before application of certain contractual commitments (including capital lease obligations), and accordingly is not a true measure of Quanex’s residual cash flow available for discretionary expenditures. The Company believes that the presented non-GAAP measures provide a consistent basis for comparison between periods and will assist investors in understanding Quanex’s financial performance when comparing results to other investment opportunities. The presented non-GAAP measures may not be the same as those used by other companies. The Company does not intend for this information to be considered in isolation or as a substitute for other measures prepared in accordance with U.S. GAAP.

Forward Looking Statements

Statements that use the words “estimated,” “expect,” “could,” “should,” “believe,” “will,” “might,” or similar words reflecting future expectations or beliefs are forward-looking statements. The forward-looking statements include, but are not limited to, the following: impacts from public health issues (including pandemics, such as the recent COVID-19 pandemic) on the economy and the demand for Quanex’s products, the Company’s future operating results, future financial condition, future uses of cash and other expenditures, expenses and tax rates, expectations relating to Quanex’s industry, and the Company’s future growth, including any guidance discussed in this press release. The statements and guidance set forth in this release are based on current expectations. Actual results or events may differ materially from this release. For a complete discussion of factors that may affect Quanex’s future performance, please refer to the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2020, and the Company’s Quarterly Reports on Form 10-Q under the sections entitled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors”. Any forward-looking statements in this press release are made as of the date hereof, and Quanex undertakes no obligation to update or revise any forward-looking statements to reflect new information or events.

QUANEX BUILDING PRODUCTS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)

Three Months Ended July 31,

Nine Months Ended July 31,

2021

2020

2021

2020

Net sales

$

279,877

$

212,096

$

780,381

$

596,168

Cost of sales

219,866

162,427

604,723

469,586

Selling, general and administrative

27,766

21,973

88,299

62,818

Restructuring charges

-

73

39

477

Depreciation and amortization

10,683

11,060

32,543

35,851

Operating income

21,562

16,563

54,777

27,436

Interest expense

(597

)

(1,165

)

(1,988

)

(4,310

)

Other, net

188

(220

)

645

116

Income before income taxes

21,153

15,178

53,434

23,242

Income tax expense

(7,474

)

(4,345

)

(17,352

)

(6,898

)

Net income

$

13,679

$

10,833

$

36,082

$

16,344

Earnings per common share, basic

$

0.41

$

0.33

$

1.09

$

0.50

Earnings per common share, diluted

$

0.41

$

0.33

$

1.08

$

0.50

Weighted average common shares outstanding:

Basic

33,359

32,610

33,194

32,716

Diluted

33,650

32,739

33,518

32,845

Cash dividends per share

$

0.08

$

0.08

$

0.24

$

0.24

QUANEX BUILDING PRODUCTS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

July 31, 2021

October 31, 2020

ASSETS

Current assets:

Cash and cash equivalents

$

43,663

$

51,621

Accounts receivable, net

98,286

88,287

Inventories, net

93,493

61,181

Prepaid and other current assets

9,133

6,217

Total current assets

244,575

207,306

Property, plant and equipment, net

176,032

184,104

Operating lease right-of-use assets

54,811

51,824

Goodwill

150,487

146,154

Intangible assets, net

86,026

93,068

Other assets

7,261

9,129

Total assets

$

719,192

$

691,585

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

79,167

$

77,335

Accrued liabilities

52,751

38,289

Income taxes payable

1,327

6,465

Current maturities of long-term debt

839

692

Current operating lease liabilities

8,270

7,459

Total current liabilities

142,354

130,240

Long-term debt

72,439

116,728

Noncurrent operating lease liabilities

47,371

44,873

Deferred pension and postretirement benefits

10,765

10,923

Deferred income taxes

25,252

19,116

Other liabilities

15,622

13,946

Total liabilities

313,803

335,826

Stockholders’ equity:

Common stock

373

373

Additional paid-in-capital

253,662

253,458

Retained earnings

241,582

213,517

Accumulated other comprehensive loss

(22,968

)

(33,024

)

Treasury stock at cost

(67,260

)

(78,565

)

Total stockholders’ equity

405,389

355,759

Total liabilities and stockholders' equity

$

719,192

$

691,585


QUANEX BUILDING PRODUCTS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(In thousands)
(Unaudited)

Nine Months Ended July 31,

2021

2020

Operating activities:

Net income

$

36,082

$

16,344

Adjustments to reconcile net income to cash provided by operating activities:

Depreciation and amortization

32,543

35,851

Stock-based compensation

1,470

513

Deferred income tax

5,429

438

Other, net

5,485

762

Changes in assets and liabilities:

Increase in accounts receivable

(8,277

)

(1,852

)

(Increase) decrease in inventory

(32,113

)

3,553

(Increase) decrease in other current assets

(2,768

)

1,218

Increase (decrease) in accounts payable

1,600

(1,878

)

Increase (decrease) in accrued liabilities

12,521

(7,611

)

(Decrease) increase in income taxes payable

(5,158

)

107

(Decrease) increase in deferred pension and postretirement benefits

(158

)

573

Increase (decrease) in other long-term liabilities

962

(181

)

Other, net

(183

)

(276

)

Cash provided by operating activities

47,435

47,561

Investing activities:

Capital expenditures

(16,006

)

(20,673

)

Proceeds from disposition of capital assets

3,138

131

Cash used for investing activities

(12,868

)

(20,542

)

Financing activities:

Borrowings under credit facilities

-

114,500

Repayments of credit facility borrowings

(45,000

)

(119,000

)

Repayments of other long-term debt

(502

)

(791

)

Common stock dividends paid

(8,017

)

(7,910

)

Issuance of common stock

16,272

2,954

Payroll tax paid to settle shares forfeited upon vesting of stock

(492

)

(454

)

Purchase of treasury stock

(5,741

)

(6,693

)

Cash used for financing activities

(43,480

)

(17,394

)

Effect of exchange rate changes on cash and cash equivalents

955

580

(Decrease) increase in cash and cash equivalents

(7,958

)

10,205

Cash and cash equivalents at beginning of period

51,621

30,868

Cash and cash equivalents at end of period

$

43,663

$

41,073


QUANEX BUILDING PRODUCTS CORPORATION
FREE CASH FLOW AND NET DEBT RECONCILIATIONS
(In thousands)
(Unaudited)

The following table reconciles the Company's calculation of Free Cash Flow, a non-GAAP measure, to its most directly comparable GAAP measure. The Company defines Free Cash Flow as cash provided by operating activities less capital expenditures.

Three Months Ended July 31,

Nine Months Ended July 31,

2021

2020

2021

2020

Cash provided by operating activities

18,475

$45,089

$47,435

$47,561

Capital expenditures

(6,207)

(4,360)

(16,006)

(20,673)

Free Cash Flow

$12,268

$40,729

$31,429

$26,888

The following table reconciles the Company's Net Debt which is defined as total debt principal of the Company plus finance lease obligations minus cash.

As of July 31,

2021

2020

Revolving Credit Facility

$58,000

$138,000

Finance Lease Obligations

15,951

15,729

Total Debt (1)

73,951

153,729

Less: Cash and cash equivalents

43,663

41,073

Net Debt

$30,288

$112,656

(1) Excludes outstanding letters of credit.


QUANEX BUILDING PRODUCTS CORPORATION
NON-GAAP FINANCIAL MEASURE DISCLOSURE
(In thousands, except per share data)
(Unaudited)

Three Months Ended

Three Months Ended

Nine Months Ended

Nine Months Ended

Reconciliation of Adjusted Net Income and Adjusted EPS

July 31, 2021

July 31, 2020

July 31, 2021

July 31, 2020

Net
Income

Diluted
EPS

Net
Income

Diluted
EPS

Net
Income

Diluted
EPS

Net
Loss

Diluted
EPS

Net income as reported

$

13,679

$

0.41

$

10,833

$

0.33

$

36,082

$

1.08

$

16,344

$

0.50

Net Income reconciling items from below

512

0.01

280

0.01

1,686

0.05

2,387

0.07

Adjusted net income and adjusted EPS

$

14,191

$

0.42

$

11,113

$

0.34

$

37,768

$

1.13

$

18,731

$

0.57

Reconciliation of Adjusted EBITDA

Three Months Ended
July 31, 2021

Three Months Ended
July 31, 2020

Nine Months Ended
July 31, 2021

Nine Months Ended
July 31, 2020

Reconciliation

Reconciliation

Reconciliation

Reconciliation

Net income as reported

$

13,679

$

10,833

$

36,082

$

16,344

Income tax expense

7,474

4,345

17,352

6,898

Other, net

(188

)

220

(645

)

(116

)

Interest expense

597

1,165

1,988

4,310

Depreciation and amortization

10,683

11,060

32,543

35,851

EBITDA

32,245

27,623

87,320

63,287

EBITDA reconciling items from below

682

73

2,160

1,875

Adjusted EBITDA

$

32,927

$

27,696

$

89,480

$

65,162

Reconciling Items

Three Months Ended
July 31, 2021

Three Months Ended
July 31, 2020

Nine Months Ended
July 31, 2021

Nine Months Ended
July 31, 2020

Income
Statement

Reconciling
Items

Income
Statement

Reconciling
Items

Income
Statement

Reconciling
Items

Income
Statement

Reconciling
Items

Net sales

$

279,877

$

-

$

212,096

$

-

$

780,381

$

-

$

596,168

$

-

Cost of sales

219,866

(307

)

(1

)

162,427

-

604,723

(307

)

(1

)

469,586

-

Selling, general and administrative

27,766

(375

)

(2

)

21,973

-

88,299

(1,814

)

(2

)

62,818

(1,398

)

(2

)

Restructuring charges

-

-

73

(73

)

(3

)

39

(39

)

(3

)

477

(477

)

(3

)

EBITDA

32,245

682

27,623

73

87,320

2,160

63,287

1,875

Depreciation and amortization

10,683

-

11,060

-

32,543

-

35,851

(968

)

(4

)

Operating income

21,562

682

16,563

73

54,777

2,160

27,436

2,843

Interest expense

(597

)

-

(1,165

)

-

(1,988

)

-

(4,310

)

-

Other, net

188

79

(5

)

(220

)

458

(5

)

645

161

(5

)

116

390

(5

)

Income before income taxes

21,153

761

15,178

531

53,434

2,321

23,242

3,233

Income tax expense

(7,474

)

(249

)

(6

)

(4,345

)

(251

)

(6

)

(17,352

)

(635

)

(6

)

(6,898

)

(846

)

(6

)

Net income

$

13,679

$

512

$

10,833

$

280

$

36,082

$

1,686

$

16,344

$

2,387

Diluted earnings per share

$

0.41

$

0.33

$

1.08

$

0.50

(1) Loss on damage to a plant caused by flooding of $0.3 million for the three and nine months ended July 31, 2021.

(2) Transaction and advisory fees, $0.4 million related to the loss on a sale of a plant in the three months ended July 31, 2021, $1.8 million related to the loss on a sale of a plant in the nine months ended July 31, 2021, $1.3 million related to executive severance charges in the nine months ended July 31, 2020, respectively.

(3) Restructuring charges related to the closure of manufacturing plant facilities.

(4) Accelerated depreciation related to the closure of a North American Cabinet Components plant.

(5) Foreign currency transaction losses.

(6) Impact on a with and without basis.


QUANEX BUILDING PRODUCTS CORPORATION
NON-GAAP FINANCIAL MEASURE DISCLOSURE
(In thousands)
(Unaudited)

Reconciliation of Last Twelve Months Adjusted EBITDA

Three Months Ended
July 31, 2021

Three Months Ended
April 30, 2021

Three Months Ended
January 31, 2021

Three Months Ended
October 31, 2020

Total

Reconciliation

Reconciliation

Reconciliation

Reconciliation

Reconciliation

Net income as reported

$

13,679

$

14,551

$

7,852

$

22,152

$

58,234

Income tax expense

7,474

6,454

3,424

4,906

22,258

Other, net

(188

)

(265

)

(192

)

(164

)

(809

)

Interest expense

597

640

751

935

2,923

Depreciation and amortization

10,683

10,845

11,015

11,378

43,921

EBITDA

32,245

32,225

22,850

39,207

126,527

Cost of sales (1)

307

-

-

-

307

Selling, general and administrative (2)

375

-

1,439

-

1,814

Restructuring charges (3)

-

-

39

145

184

Adjusted EBITDA

$

32,927

$

32,225

$

24,328

$

39,352

$

128,832

(1) Loss on the damage of a plant caused by flooding.

(2) Transaction and advisory fees, loss on the sale of a plant, and executive severance charges.

(3) Restructuring charges relate to the closure of manufacturing plant facilities.


QUANEX BUILDING PRODUCTS CORPORATION
SELECTED SEGMENT DATA
(In thousands)
(Unaudited)

This table provides gross margin, operating (loss) income, EBITDA, and Adjusted EBITDA by reportable segment. Non-operating expense and income tax expense are not allocated to the reportable segments.

NA Fenestration

EU Fenestration

NA Cabinet
Components

Unallocated
Corp & Other

Total

Three months ended July 31, 2021

Net sales

$

147,818

$

71,114

$

61,936

$

(991

)

$

279,877

Cost of sales

116,517

49,479

54,334

(464

)

219,866

Gross Margin

31,301

21,635

7,602

(527

)

60,011

Gross Margin %

21.2%

30.4%

12.3%

21.4%

Selling, general and administrative

13,428

7,525

5,130

1,683

27,766

Depreciation and amortization

4,571

2,646

3,390

76

10,683

Operating income (loss)

13,302

11,464

(918

)

(2,286

)

21,562

Depreciation and amortization

4,571

2,646

3,390

76

10,683

EBITDA

17,873

14,110

2,472

(2,210

)

32,245

Loss on the damage of a plant

-

307

-

-

307

Loss on sale of plant

375

-

-

-

375

Adjusted EBITDA

$

18,248

$

14,417

$

2,472

$

(2,210

)

$

32,927

Adjusted EBITDA Margin %

12.3%

20.3%

4.0%

11.8%

Three months ended July 31, 2020

Net sales

$

122,386

$

38,265

$

51,925

$

(480

)

$

212,096

Cost of sales

92,639

25,845

44,218

(275

)

162,427

Gross Margin

29,747

12,420

7,707

(205

)

49,669

Gross Margin %

24.3%

32.5%

14.8%

23.4%

Selling, general and administrative

11,922

4,748

4,634

669

21,973

Restructuring charges

71

-

2

-

73

Depreciation and amortization

5,371

2,307

3,264

118

11,060

Operating income (loss)

12,383

5,365

(193

)

(992

)

16,563

Depreciation and amortization

5,371

2,307

3,264

118

11,060

EBITDA

17,754

7,672

3,071

(874

)

27,623

Restructuring charges

71

-

2

-

73

Adjusted EBITDA

$

17,825

$

7,672

$

3,073

$

(874

)

$

27,696

Adjusted EBITDA Margin %

14.6%

20.0%

5.9%

13.1%

Nine months ended July 31, 2021

Net sales

$

422,077

$

181,862

$

179,492

$

(3,050

)

$

780,381

Cost of sales

328,278

122,631

155,370

(1,556

)

604,723

Gross Margin

93,799

59,231

24,122

(1,494

)

175,658

Gross Margin %

22.2%

32.6%

13.4%

22.5%

Selling, general and administrative

38,944

21,559

15,372

12,424

88,299

Restructuring charges

39

-

-

-

39

Depreciation and amortization

14,528

7,771

9,965

279

32,543

Operating income (loss)

40,288

29,901

(1,215

)

(14,197

)

54,777

Depreciation and amortization

14,528

7,771

9,965

279

32,543

EBITDA

54,816

37,672

8,750

(13,918

)

87,320

Loss on the damage of a plant

-

307

-

-

307

Loss on sale of plant

375

-

-

1,439

1,814

Restructuring charges

39

-

-

-

39

Adjusted EBITDA

$

55,230

$

37,979

$

8,750

$

(12,479

)

$

89,480

Adjusted EBITDA Margin %

13.1%

20.9%

4.9%

11.5%

Nine months ended July 31, 2020

Net sales

$

341,432

$

104,230

$

152,634

$

(2,128

)

$

596,168

Cost of sales

266,489

72,055

132,259

(1,217

)

469,586

Gross Margin

74,943

32,175

20,375

(911

)

126,582

Gross Margin %

21.9%

30.9%

13.3%

21.2%

Selling, general and administrative

34,962

15,990

13,468

(1,602

)

62,818

Restructuring charges

228

-

249

-

477

Depreciation and amortization

18,311

7,045

10,139

356

35,851

Operating income (loss)

21,442

9,140

(3,481

)

335

27,436

Depreciation and amortization

18,311

7,045

10,139

356

35,851

EBITDA

39,753

16,185

6,658

691

63,287

Transaction and advisory fees

-

-

-

55

55

Executive severance charges

-

-

-

1,343

1,343

Restructuring charges

228

-

249

-

477

Adjusted EBITDA

$

39,981

$

16,185

$

6,907

$

2,089

$

65,162

Adjusted EBITDA Margin %

11.7%

15.5%

4.5%

10.9%


QUANEX BUILDING PRODUCTS CORPORATION
SALES ANALYSIS
(In thousands)
(Unaudited)

Three Months Ended

Nine Months Ended

July 31, 2021

July 31, 2020

July 31, 2021

July 31, 2020

NA Fenestration:

United States - fenestration

$

129,291

$

109,455

$

369,809

$

302,094

International - fenestration

9,581

6,696

25,756

19,284

United States - non-fenestration

5,853

4,845

17,543

13,779

International - non-fenestration

3,093

1,390

8,969

6,275

$

147,818

$

122,386

$

422,077

$

341,432

EU Fenestration (1):

International - fenestration

$

54,883

$

31,904

$

147,072

$

87,732

International - non-fenestration

16,231

6,361

34,790

16,498

$

71,114

$

38,265

$

181,862

$

104,230

NA Cabinet Components:

United States - fenestration

$

3,240

$

2,666

$

9,711

$

8,461

United States - non-fenestration

57,418

48,849

168,308

142,838

International - non-fenestration

1,278

410

1,473

1,335

$

61,936

$

51,925

$

179,492

$

152,634

Unallocated Corporate & Other:

Eliminations

$

(991

)

$

(480

)

$

(3,050

)

$

(2,128

)

$

(991

)

$

(480

)

$

(3,050

)

$

(2,128

)

Net Sales

$

279,877

$

212,096

$

780,381

$

596,168

(1) Reflects increase of $4.1 million and $8.6 million in revenue associated with foreign currency exchange rate impacts for the three and nine months ended July 31, 2021, respectively.