Consolidation of U.S. Vinyl Profiles
Business Progressing Well Strong Free Cash
Flow and Margin Expansion Expected in Second Half of
2017
Quanex Building Products Corporation (NYSE:NX) (“Quanex” or
the “Company”) today announced its results for the quarter ended
January 31, 2017.
First Quarter 2017
Highlights
- Net sales decreased to $195.1 million compared to $201.5
million in Q1 2016
- Net loss of $3.7 million compared to net loss of $7.2 million
in Q1 2016
- Adjusted EBITDA decreased to $13.0 million versus $18.4 million
in Q1 2016
- Cash provided by operating activities increased to $2.0 million
compared to $0.8 million in Q1 2016
Bill Griffiths, Chairman, President and Chief
Executive Officer, commented, “First quarter results were in line
with our expectations given the planned shrinkage in our U.S. vinyl
profiles business. Excluding vinyl, revenue in our underlying
North American window components businesses was flat
year-over-year, which was a good result considering the abnormally
strong first quarter last year. Our European business
generated double-digit sales growth on a local currency basis
compared to the first quarter of 2016, as did our cabinet
components business as some customers built inventory in
anticipation of price increases or transitioning to other
suppliers.
“The consolidation of our U.S. vinyl profiles
business is progressing well and will be complete by the end of the
second quarter. Negotiations related to the margin dilutive
revenue we have identified in our cabinet components business
continue with various customers and should also be complete by the
end of the second quarter. As such, we are confident that we
will see margin expansion in the second half of the year as well as
continued cash flow improvement.”
First Quarter 2017 Results
Summary
|
|
|
Three Months Ended January 31,
2017 |
|
Three Months Ended January 31,
2016 |
($ in thousands, except
per share data) |
|
Results Before Adjustments |
|
Adjustments |
|
Adjusted Results |
|
Results Before Adjustments |
|
Adjustments |
|
Adjusted Results |
Net sales |
|
$ |
195,096 |
|
|
$ |
- |
|
|
$ |
195,096 |
|
|
$ |
201,468 |
|
|
$ |
- |
|
|
$ |
201,468 |
|
Cost of sales (1) |
|
|
154,947 |
|
|
|
(14 |
) |
|
|
154,933 |
|
|
|
159,348 |
|
|
|
(2,481 |
) |
|
|
156,867 |
|
Selling, general and
administrative (2) |
|
|
27,445 |
|
|
|
(317 |
) |
|
|
27,128 |
|
|
|
31,288 |
|
|
|
(5,090 |
) |
|
|
26,198 |
|
Restructuring charges
(3) |
|
|
1,139 |
|
|
|
(1,139 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
EBITDA |
|
|
11,565 |
|
|
|
1,470 |
|
|
|
13,035 |
|
|
|
10,832 |
|
|
|
7,571 |
|
|
|
18,403 |
|
Depreciation and
amortization (4) |
|
|
15,406 |
|
|
|
(2,533 |
) |
|
|
12,873 |
|
|
|
12,970 |
|
|
|
- |
|
|
|
12,970 |
|
Operating income |
|
|
(3,841 |
) |
|
|
4,003 |
|
|
|
162 |
|
|
|
(2,138 |
) |
|
|
7,571 |
|
|
|
5,433 |
|
Interest expense |
|
|
(2,160 |
) |
|
|
- |
|
|
|
(2,160 |
) |
|
|
(6,491 |
) |
|
|
- |
|
|
|
(6,491 |
) |
Other, net (5) |
|
|
661 |
|
|
|
(630 |
) |
|
|
31 |
|
|
|
(2,361 |
) |
|
|
2,475 |
|
|
|
114 |
|
Income before income
taxes |
|
|
(5,340 |
) |
|
|
3,373 |
|
|
|
(1,967 |
) |
|
|
(10,990 |
) |
|
|
10,046 |
|
|
|
(944 |
) |
Income tax benefit
(expense) (6) |
|
|
1,614 |
|
|
|
(1,015 |
) |
|
|
599 |
|
|
|
3,741 |
|
|
|
(3,239 |
) |
|
|
502 |
|
Net (loss) income
(7) |
|
$ |
(3,726 |
) |
|
$ |
2,358 |
|
|
$ |
(1,368 |
) |
|
$ |
(7,249 |
) |
|
$ |
6,807 |
|
|
$ |
(442 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share |
|
$ |
(0.11 |
) |
|
|
|
$ |
(0.04 |
) |
|
$ |
(0.21 |
) |
|
|
|
$ |
(0.01 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTE: See
Non-GAAP Terminology Definitions and Disclaimers section for
additional information. |
|
|
|
|
|
|
(1) Cost
of sales adjustment relates solely to purchase price accounting
inventory step-up impact from HL Plastics and Woodcraft
acquisitions. |
(2)
SG&A adjustments are for acquisition related transaction costs
and in 2017, loss on sale of fixed assets related to the closure of
the plant in Mexico. |
(3)
Restructuring charges relate to the closure of several
manufacturing plant facilities. |
|
|
|
|
|
|
|
(4)
D&A adjustments relate to accelerated amortization for
restructured PP&E and intangible assets. |
|
|
|
|
|
|
(5) Other,
net adjustments relate to foreign currency transaction (gains)
losses. |
|
|
|
|
|
|
|
|
(6)
Effective tax rate reflects impacts of adjustments on a with and
without basis. |
|
|
|
|
|
|
|
|
(7)
Adjusted EPS is calculated using diluted shares outstanding of 34.7
million and 34.3 million, respectively. |
|
|
|
|
Quanex reported net sales of $195.1 million for
the three months ended January 31, 2017, compared to $201.5 million
for the three months ended January 31, 2016. The decrease was
mainly attributable to the Company’s previously disclosed decision
to walk away from less profitable business in an effort to protect
margins. (See Sales Analysis table for additional information)
The Company reported a smaller net loss of $3.7
million during the first quarter, largely due to lower interest
expense as a result of Quanex refinancing its debt in July of 2016,
compared to a net loss of $7.2 million in the first quarter of
2016. Adjusted EBITDA decreased to $13.0 million during the
first quarter, compared to $18.4 million during the first quarter
of 2016. The decrease was primarily driven by a $1.5 million
increase in stock-based compensation expense combined with
short-term inefficiencies as Quanex transitions away from less
profitable business in its U.S. vinyl profiles and cabinet
components businesses. (See Non-GAAP Terminology Definitions
and Disclaimers section and Selected Segment Data table for
additional information)
As of January 31, 2017, Quanex’s leverage ratio
of Net Debt to LTM Adjusted EBITDA was 2.5x. The Company
remains focused on generating Free Cash Flow to pay down debt and
anticipates a significant improvement in the leverage ratio by
year-end 2017. (See Non-GAAP Terminology Definitions and
Disclaimers section for additional information)
Business Update and Fiscal 2017
Guidance
Quanex continues to evaluate profitability by
customer and product line, with a particular focus on its U.S.
vinyl profiles and cabinet components businesses. As
previously disclosed, the Company initiated the process of reducing
volumes manufactured for a large U.S. vinyl profiles customer
during the first quarter of 2017 and originally expected the
process to be carried out in a phased manner throughout 2017 and
into 2018. Based on recent conversations with the customer
coupled with the trend established in the first quarter, Quanex now
anticipates the process will be complete in 2017 and will not
carryover into 2018. As a result, the Company now expects the
top line impact to be approximately $65 million in 2017 instead of
the $50 million that was originally disclosed. In addition,
the $20 million of margin dilutive revenue identified in the
cabinet component business is still under negotiation on several
fronts and is not likely to be resolved until late in the second
quarter of 2017.
Quanex continues to forecast underlying sales
growth of 5% to 6% for 2017 offset by the customer actions
referenced above and a potential negative foreign currency
translation impact, which could be approximately $15 million to $20
million for the year based on current exchange rates. The
Company expects margin expansion in the second half of 2017, which
when combined with the reduction in cash interest expense as a
result of refinancing the debt in July of 2016 should further
improve its Free Cash Flow profile despite the lower top line.
Based on the information above, Quanex expects
to generate net sales of $880 million to $900 million and Adjusted
EBITDA* of $105 million to $112 million in 2017, which yields
year-over-year margin expansion of approximately 30 basis points at
the midpoint of guidance.
*When the Company 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.
Recent Events
The stockholders approved each of the following
proposals voted on at the Company’s annual meeting held on March 2,
2017.
- Election of Directors - Susan F. Davis and Curtis M. Stevens
were elected to serve as directors on the Quanex Board of Directors
until the Company’s Annual Meeting of Stockholders in 2018
- Advisory Vote Approving Named Executive Officer Compensation -
the stockholders supported Quanex’s executive officer compensation
structure
- Advisory (Non-binding) Vote on the Frequency of the Advisory
Vote on Executive Compensation - the stockholders voted in favor of
holding an advisory vote on executive compensation every year
- Amendment and Restatement of Employee Stock Purchase Plan
(ESPP) – the stockholders approved the Company’s Amended and
Restated ESPP
- Ratification of Appointment of Grant Thornton LLP as
Independent Public Accountants - Grant Thornton LLP was ratified as
Quanex’s independent registered public accounting firm for the
fiscal year ending October 31, 2017
Additionally, the Company’s Board of Directors
declared a quarterly cash dividend of $0.04 per share on Quanex’s
common stock, payable March 31, 2017, to shareholders of record on
March 17, 2017.
Conference Call and Webcast
Information
The Company has scheduled a conference call for
Tuesday, March 7, 2017, 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 64298542, 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 March 14, 2017. To access the
replay dial (855) 859-2056 for domestic callers and (404) 537-3406
for international callers, in both cases referencing conference
passcode 64298542.
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, Vice
President of Investor Relations & Treasurer, at 713-877-5327 or
scott.zuehlke@quanex.com.
Non-GAAP Terminology Definitions and
Disclaimers
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,
loss on the sale of fixed assets related to the plant closure in
Mexico and restructuring charges) are non-GAAP financial measures
that the Company uses to measure operational performance and assist
with financial decision-making. Due to the high variability
and difficulty in predicting certain items that affect GAAP net
income (such as unusual gains and losses, fluctuations in foreign
currency exchange rates, the impact and timing of potential
acquisitions or divestitures and the timing and potential
significance of tax considerations), information reconciling these
measures to GAAP financial measures is impossible without
unreasonable effort. Net Debt is calculated using the sum of
current maturities of long-term debt and long-term debt, minus cash
and cash equivalents. The leverage ratio of Net Debt to LTM
Adjusted EBITDA is a financial measure that Quanex believes is
useful to investors and financial analysts in evaluating the
Company’s leverage. In addition, with certain limited
adjustments, this leverage ratio is the basis for a key covenant in
Quanex’s credit agreement. Free Cash Flow is a non-GAAP
measure calculated using cash provided by operating activities less
capital expenditures. Adjusted Net (Loss) Income is a
non-GAAP financial measure that excludes certain charges and
credits because the Company believes that such items are not
indicative of its core operating results and trends, and do not
provide meaningful comparisons with other reporting periods.
Quanex believes that the presented non-GAAP measures provide a
consistent basis for comparison between periods, and will assist
investors in understanding the Company’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. Quanex 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 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, 2016, 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
(LOSS) |
|
|
(In thousands, except per share data) |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended January 31, |
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
195,096 |
|
|
$ |
201,468 |
|
|
|
Cost of sales |
|
|
154,947 |
|
|
|
159,348 |
|
|
|
Selling, general and
administrative |
|
|
27,445 |
|
|
|
31,288 |
|
|
|
Restructuring
charges |
|
|
1,139 |
|
|
|
- |
|
|
|
Depreciation and
amortization |
|
|
15,406 |
|
|
|
12,970 |
|
|
|
Operating loss |
|
|
(3,841 |
) |
|
|
(2,138 |
) |
|
|
Interest expense |
|
|
(2,160 |
) |
|
|
(6,491 |
) |
|
|
Other, net |
|
|
661 |
|
|
|
(2,361 |
) |
|
|
Loss before income
taxes |
|
|
(5,340 |
) |
|
|
(10,990 |
) |
|
|
Income tax benefit |
|
|
1,614 |
|
|
|
3,741 |
|
|
|
Net loss |
|
$ |
(3,726 |
) |
|
$ |
(7,249 |
) |
|
|
|
|
|
|
|
|
|
Loss per common share,
basic |
|
$ |
(0.11 |
) |
|
$ |
(0.21 |
) |
|
|
Loss per common share,
diluted |
|
$ |
(0.11 |
) |
|
$ |
(0.21 |
) |
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding: |
|
|
|
|
|
|
Basic |
|
|
34,055 |
|
|
|
33,763 |
|
|
|
Diluted |
|
|
34,055 |
|
|
|
33,763 |
|
|
|
|
|
|
|
|
|
|
Cash dividends per
share |
|
$ |
0.04 |
|
|
$ |
0.04 |
|
|
|
|
|
|
|
|
|
|
QUANEX BUILDING PRODUCTS
CORPORATION |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(In thousands) |
(Unaudited) |
|
|
|
|
|
|
|
January 31, 2017 |
|
October 31, 2016 |
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and
cash equivalents |
|
$ |
14,074 |
|
|
$ |
25,526 |
|
Accounts
receivable, net |
|
|
62,754 |
|
|
|
83,625 |
|
Inventories, net |
|
|
92,225 |
|
|
|
84,335 |
|
Prepaid
and other current assets |
|
|
7,879 |
|
|
|
10,488 |
|
Total
current assets |
|
|
176,932 |
|
|
|
203,974 |
|
Property, plant and
equipment, net |
|
|
196,903 |
|
|
|
198,497 |
|
Goodwill |
|
|
218,213 |
|
|
|
217,035 |
|
Intangible assets,
net |
|
|
150,345 |
|
|
|
154,180 |
|
Other assets |
|
|
7,927 |
|
|
|
6,667 |
|
Total
assets |
|
$ |
750,320 |
|
|
$ |
780,353 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts
payable |
|
$ |
41,198 |
|
|
$ |
47,781 |
|
Accrued
liabilities |
|
|
28,944 |
|
|
|
55,101 |
|
Income
taxes payable |
|
|
1,153 |
|
|
|
732 |
|
Current
maturities of long-term debt |
|
|
17,630 |
|
|
|
10,520 |
|
Total
current liabilities |
|
|
88,925 |
|
|
|
114,134 |
|
Long-term debt |
|
|
254,829 |
|
|
|
259,011 |
|
Deferred pension and
postretirement benefits |
|
|
9,004 |
|
|
|
8,167 |
|
Deferred income
taxes |
|
|
15,567 |
|
|
|
18,322 |
|
Other liabilities |
|
|
13,714 |
|
|
|
12,888 |
|
Total
liabilities |
|
|
382,039 |
|
|
|
412,522 |
|
Stockholders’
equity: |
|
|
|
|
Common
stock |
|
|
375 |
|
|
|
376 |
|
Additional paid-in-capital |
|
|
254,139 |
|
|
|
254,540 |
|
Retained
earnings |
|
|
208,617 |
|
|
|
214,047 |
|
Accumulated other comprehensive loss |
|
|
(35,933 |
) |
|
|
(38,765 |
) |
Treasury
stock at cost |
|
|
(58,917 |
) |
|
|
(62,367 |
) |
Total
stockholders’ equity |
|
|
368,281 |
|
|
|
367,831 |
|
Total
liabilities and stockholders' equity |
|
$ |
750,320 |
|
|
$ |
780,353 |
|
|
|
|
|
|
QUANEX BUILDING PRODUCTS
CORPORATION |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOW |
|
(In thousands) |
|
(Unaudited) |
|
|
|
|
|
|
|
Three Months Ended January 31, |
|
|
|
2017 |
|
|
|
2016 |
|
|
Operating activities: |
|
|
|
|
Net
loss |
$ |
(3,726 |
) |
|
$ |
(7,249 |
) |
|
Adjustments to reconcile net loss to cash provided by operating
activities: |
|
|
|
|
Depreciation and amortization |
|
15,406 |
|
|
|
12,970 |
|
|
Stock-based compensation |
|
2,226 |
|
|
|
1,527 |
|
|
Deferred
income tax |
|
(3,684 |
) |
|
|
(6,158 |
) |
|
Excess
tax benefit from share-based compensation |
|
(87 |
) |
|
|
(1 |
) |
|
Other,
net |
|
1,241 |
|
|
|
1,012 |
|
|
Changes
in assets and liabilities, net of effects from acquisitions: |
|
|
|
|
Decrease
in accounts receivable |
|
21,143 |
|
|
|
20,912 |
|
|
Increase
in inventory |
|
(7,622 |
) |
|
|
(4,499 |
) |
|
(Increase) decrease in other current assets |
|
(438 |
) |
|
|
1,178 |
|
|
Decrease
in accounts payable |
|
(7,232 |
) |
|
|
(8,305 |
) |
|
Decrease
in accrued liabilities |
|
(18,928 |
) |
|
|
(11,879 |
) |
|
Increase
in income taxes payable |
|
2,761 |
|
|
|
300 |
|
|
Increase
in deferred pension and postretirement benefits |
|
837 |
|
|
|
684 |
|
|
Increase
in other long-term liabilities |
|
366 |
|
|
|
361 |
|
|
Other,
net |
|
(226 |
) |
|
|
(74 |
) |
|
Cash provided by
operating activities |
|
2,037 |
|
|
|
779 |
|
|
Investing activities: |
|
|
|
|
Acquisitions, net of cash acquired |
|
(8,497 |
) |
|
|
(245,946 |
) |
|
Capital
expenditures |
|
(8,141 |
) |
|
|
(8,652 |
) |
|
Proceeds
from disposition of capital assets |
|
390 |
|
|
|
561 |
|
|
Cash used for investing
activities |
|
(16,248 |
) |
|
|
(254,037 |
) |
|
Financing activities: |
|
|
|
|
Borrowings under credit facilities |
|
24,000 |
|
|
|
332,800 |
|
|
Repayments of credit facility borrowings |
|
(20,875 |
) |
|
|
(68,500 |
) |
|
Debt
issuance costs |
|
- |
|
|
|
(8,349 |
) |
|
Repayments of other long-term debt |
|
(429 |
) |
|
|
(546 |
) |
|
Common
stock dividends paid |
|
(1,372 |
) |
|
|
(1,362 |
) |
|
Issuance
of common stock |
|
1,383 |
|
|
|
2,920 |
|
|
Excess
tax benefit from share-based compensation |
|
87 |
|
|
|
1 |
|
|
Cash provided by
financing activities |
|
2,794 |
|
|
|
256,964 |
|
|
Effect of
exchange rate changes on cash and cash equivalents |
|
(35 |
) |
|
|
917 |
|
|
(Decrease) increase in
cash and cash equivalents |
|
(11,452 |
) |
|
|
4,623 |
|
|
Cash and cash
equivalents at beginning of period |
|
25,526 |
|
|
|
23,125 |
|
|
Cash and cash
equivalents at end of period |
$ |
14,074 |
|
|
$ |
27,748 |
|
|
|
|
|
|
|
QUANEX BUILDING PRODUCTS
CORPORATION |
|
SELECTED SEGMENT DATA |
|
(In thousands) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
This table provides operating income (loss), EBITDA, and
Adjusted EBITDA by reportable segment. Non-operating expense
and income tax expense are not allocated to the reportable
segments. For a reconciliation of income from continuing
operations to operating income (loss), see Non-GAAP Financial
Measure Disclosure table. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NA Engineered Components |
|
EU Engineered Components |
|
NA Cabinet Components |
|
Unallocated Corp &
Other |
|
Total |
|
Three months
ended January 31, 2017 |
|
|
|
|
|
|
|
|
|
|
|
Net
sales |
|
$ |
111,073 |
|
|
$ |
31,569 |
|
|
$ |
52,997 |
|
|
$ |
(543 |
) |
|
$ |
195,096 |
|
|
Cost of
sales |
|
|
86,393 |
|
|
|
22,538 |
|
|
|
46,237 |
|
|
|
(221 |
) |
|
|
154,947 |
|
|
Restructuring charges |
|
|
566 |
|
|
|
- |
|
|
|
573 |
|
|
|
- |
|
|
|
1,139 |
|
|
Operating
income (loss) |
|
|
301 |
|
|
|
2,203 |
|
|
|
(1,058 |
) |
|
|
(5,287 |
) |
|
|
(3,841 |
) |
|
Depreciation and amortization |
|
|
10,078 |
|
|
|
2,056 |
|
|
|
3,135 |
|
|
|
137 |
|
|
|
15,406 |
|
|
EBITDA |
|
|
10,379 |
|
|
|
4,259 |
|
|
|
2,077 |
|
|
|
(5,150 |
) |
|
|
11,565 |
|
|
Transaction related costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
60 |
|
|
|
60 |
|
|
Mexico
restructuring, loss on sale of fixed assets |
|
|
- |
|
|
|
- |
|
|
|
257 |
|
|
|
- |
|
|
|
257 |
|
|
PPA-Inventory Step-up |
|
|
- |
|
|
|
14 |
|
|
|
- |
|
|
|
- |
|
|
|
14 |
|
|
Restructuring charges |
|
|
566 |
|
|
|
- |
|
|
|
573 |
|
|
|
- |
|
|
|
1,139 |
|
|
Adjusted
EBITDA |
|
$ |
10,945 |
|
|
$ |
4,273 |
|
|
$ |
2,907 |
|
|
$ |
(5,090 |
) |
|
$ |
13,035 |
|
|
Adjusted
EBITDA Margin % |
|
|
10 |
% |
|
|
14 |
% |
|
|
5 |
% |
|
|
|
|
7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended January 31, 2016 |
|
|
|
|
|
|
|
|
|
|
|
Net
sales |
|
$ |
121,048 |
|
|
$ |
33,068 |
|
|
$ |
48,525 |
|
|
$ |
(1,173 |
) |
|
$ |
201,468 |
|
|
Cost of
sales |
|
|
93,728 |
|
|
|
23,647 |
|
|
|
42,539 |
|
|
|
(566 |
) |
|
|
159,348 |
|
|
Operating
income (loss) |
|
|
5,590 |
|
|
|
1,379 |
|
|
|
(1,257 |
) |
|
|
(7,850 |
) |
|
|
(2,138 |
) |
|
Depreciation and amortization |
|
|
7,208 |
|
|
|
2,458 |
|
|
|
3,145 |
|
|
|
159 |
|
|
|
12,970 |
|
|
EBITDA |
|
|
12,798 |
|
|
|
3,837 |
|
|
|
1,888 |
|
|
|
(7,691 |
) |
|
|
10,832 |
|
|
Transaction related costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
5,090 |
|
|
|
5,090 |
|
|
PPA-Inventory Step-up |
|
|
- |
|
|
|
194 |
|
|
|
2,287 |
|
|
|
- |
|
|
|
2,481 |
|
|
Adjusted
EBITDA |
|
$ |
12,798 |
|
|
$ |
4,031 |
|
|
$ |
4,175 |
|
|
$ |
(2,601 |
) |
|
$ |
18,403 |
|
|
Adjusted
EBITDA Margin % |
|
|
11 |
% |
|
|
12 |
% |
|
|
9 |
% |
|
|
|
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
QUANEX BUILDING PRODUCTS
CORPORATION |
|
SALES ANALYSIS |
|
(In thousands) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales Bridge for Three Months Ended January
31, 2017 |
|
|
NA Engineered |
|
EU Engineered |
|
NA Cabinet |
|
Unallocated |
|
|
|
|
Components |
|
Components |
|
Components |
|
Corporate & Other |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
Net
sales, three months ended January 31, 2016 |
|
$ |
121,048 |
|
|
$ |
33,068 |
|
|
$ |
48,525 |
|
|
$ |
(1,173 |
) |
|
$ |
201,468 |
|
Market
volume |
|
|
433 |
|
|
|
3,564 |
|
|
|
5,157 |
|
|
|
630 |
|
|
|
9,784 |
|
Eliminated products |
|
|
(10,965 |
) |
|
|
- |
|
|
|
(1,102 |
) |
|
|
- |
|
|
|
(12,067 |
) |
Price
changes |
|
|
(11 |
) |
|
|
(165 |
) |
|
|
416 |
|
|
|
- |
|
|
|
240 |
|
Foreign
currency impacts |
|
|
- |
|
|
|
(4,898 |
) |
|
|
- |
|
|
|
- |
|
|
|
(4,898 |
) |
Mergers
& acquisitions |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Raw
material pass through adjustments |
|
|
568 |
|
|
|
- |
|
|
|
1 |
|
|
|
- |
|
|
|
569 |
|
Net
Sales, three months ended January 31, 2017 |
|
$ |
111,073 |
|
|
$ |
31,569 |
|
|
$ |
52,997 |
|
|
$ |
(543 |
) |
|
$ |
195,096 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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