Quanex Building Products Announces Second Quarter 2017 Results and Reaffirms Full Year 2017 Guidance
May 30 2017 - 4:15PM
Consolidation of U.S. Vinyl Profiles
Business Complete Solid Margin Performance
Continues
Quanex Building Products Corporation (NYSE:NX) (“Quanex” or
the “Company”) today announced its results for the quarter ended
April 30, 2017.
Bill Griffiths, Chairman, President and Chief
Executive Officer, commented, “Second quarter results came in as
expected, despite weather related weakness in April. We
completed the consolidation of our U.S. vinyl profiles business
ahead of schedule and we are pleased with the progress of
negotiations held with various cabinet customers related to margin
dilutive revenue. In fact, we realized slight margin
expansion in the cabinet components segment despite continued
excessive overtime costs. We also saw margin expansion in our
European engineered components segment. As anticipated,
revenues were down year-over-year in our North American engineered
components segment, driven by a further $17 million reduction due
to the previously disclosed re-sourcing effort by a large vinyl
profiles customer. Despite the lower top line, margins
remained flat in this segment. The U.S. vinyl profiles
business consolidation is behind us, and while still early, we feel
we have turned the corner at Woodcraft. As such, we are
confident in achieving our second half margin expansion and cash
flow expectations and are comfortable with our previously disclosed
2017 guidance.”
Second Quarter 2017 Results
Summary
The Company reported net sales of $209.1 million
for the three months ended April 30, 2017, compared to $229.5
million for the three months ended April 30, 2016. Similar to
the first quarter of 2017, the decrease was primarily attributable
to Quanex’s previously disclosed decision to walk away from less
profitable business in an effort to protect margins. (See Sales
Analysis table for additional information)
Net income decreased to $1.5 million during the
second quarter of 2017, compared to net income of $3.9 million in
the second quarter of 2016. Adjusted EBITDA decreased to
$20.5 million during the second quarter of 2017, compared to $24.3
million during the second quarter of 2016. The decrease was
largely due to lower volumes as the Company continues the
transition away from less profitable business combined with
elevated legal expenses during the quarter. (See Non-GAAP
Terminology Definitions and Disclaimers section and Selected
Segment Data table for additional information)
As of April 30, 2017, Quanex’s leverage ratio of
Net Debt to LTM Adjusted EBITDA was 2.7x. The Company’s
leverage ratio increased quarter-over-quarter mainly as a result of
adding approximately $16 million in debt related to a capital lease
for a new warehouse servicing Quanex’s U.K. vinyl profiles
business. The Company remains focused on generating Free Cash
Flow to pay down debt and anticipates a significant improvement in
the leverage ratio by year-end 2017. (See Non-GAAP
Terminology Definitions and Disclaimers section for additional
information)
|
|
|
Three Months Ended April 30,
2017 |
|
Three Months Ended April 30,
2016 |
($ in thousands, except
per share data) |
|
Results Before Adjustments |
|
Adjustments |
|
Adjusted Results |
|
Results Before Adjustments |
|
Adjustments |
|
Adjusted Results |
Net sales |
|
$ |
209,133 |
|
|
$ |
- |
|
|
$ |
209,133 |
|
|
$ |
229,460 |
|
|
$ |
- |
|
|
$ |
229,460 |
|
Cost of sales (1) |
|
|
162,132 |
|
|
|
(90 |
) |
|
|
162,042 |
|
|
|
176,497 |
|
|
|
(90 |
) |
|
|
176,407 |
|
Selling, general and
administrative (2) |
|
|
26,916 |
|
|
|
(353 |
) |
|
|
26,563 |
|
|
|
28,591 |
|
|
|
212 |
|
|
|
28,803 |
|
Restructuring charges
(3) |
|
|
1,080 |
|
|
|
(1,080 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
EBITDA |
|
|
19,005 |
|
|
|
1,523 |
|
|
|
20,528 |
|
|
|
24,372 |
|
|
|
(122 |
) |
|
|
24,250 |
|
Depreciation and
amortization (4) |
|
|
14,380 |
|
|
|
(1,692 |
) |
|
|
12,688 |
|
|
|
13,816 |
|
|
|
- |
|
|
|
13,816 |
|
Operating income
(loss) |
|
|
4,625 |
|
|
|
3,215 |
|
|
|
7,840 |
|
|
|
10,556 |
|
|
|
(122 |
) |
|
|
10,434 |
|
Interest expense |
|
|
(2,391 |
) |
|
|
- |
|
|
|
(2,391 |
) |
|
|
(5,633 |
) |
|
|
- |
|
|
|
(5,633 |
) |
Other, net (5) |
|
|
(135 |
) |
|
|
155 |
|
|
|
20 |
|
|
|
848 |
|
|
|
(835 |
) |
|
|
13 |
|
Income (loss) before
income taxes |
|
|
2,099 |
|
|
|
3,370 |
|
|
|
5,469 |
|
|
|
5,771 |
|
|
|
(957 |
) |
|
|
4,814 |
|
Income tax (expense)
benefit (6) |
|
|
(637 |
) |
|
|
(1,040 |
) |
|
|
(1,677 |
) |
|
|
(1,836 |
) |
|
|
304 |
|
|
|
(1,532 |
) |
Net income (loss) |
|
$ |
1,462 |
|
|
$ |
2,330 |
|
|
$ |
3,792 |
|
|
$ |
3,935 |
|
|
$ |
(653 |
) |
|
$ |
3,282 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share |
|
$ |
0.04 |
|
|
|
|
$ |
0.11 |
|
|
$ |
0.11 |
|
|
|
|
$ |
0.10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Cost
of sales adjustment relates solely to purchase price accounting
inventory step-up impact from HL Plastics acquisition. |
(2)
SG&A adjustments are for acquisition related transaction costs
and in 2017, gain on sale of fixed assets related to the closure of
the plant in Mexico and a one-time employee benefit
adjustment. |
(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. |
|
Recent Events
Quanex’s Board of Directors declared a quarterly
cash dividend of $0.04 per share on the Company’s common stock,
payable June 30, 2017, to shareholders of record on June 15,
2017.
Conference Call and Webcast
Information
The Company has scheduled a conference call for
Wednesday, May 31, 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 18485556, 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 June 7, 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 18485556.
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,
gain/loss on the sale of fixed assets related to the plant closure
in Mexico, one-time employee benefit adjustment and restructuring
charges) are non-GAAP financial measures that the Company uses to
measure operational performance and assist with financial
decision-making. 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 April 30, |
|
Six Months Ended April 30, |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
209,133 |
|
|
$ |
229,460 |
|
|
$ |
404,229 |
|
|
$ |
430,928 |
|
Cost of sales |
|
|
162,132 |
|
|
|
176,497 |
|
|
|
317,079 |
|
|
|
335,845 |
|
Selling, general and
administrative |
|
|
26,916 |
|
|
|
28,591 |
|
|
|
54,361 |
|
|
|
59,879 |
|
Restructuring
charges |
|
|
1,080 |
|
|
|
- |
|
|
|
2,219 |
|
|
|
- |
|
Depreciation and
amortization |
|
|
14,380 |
|
|
|
13,816 |
|
|
|
29,786 |
|
|
|
26,786 |
|
Operating income |
|
|
4,625 |
|
|
|
10,556 |
|
|
|
784 |
|
|
|
8,418 |
|
Interest expense |
|
|
(2,391 |
) |
|
|
(5,633 |
) |
|
|
(4,551 |
) |
|
|
(12,124 |
) |
Other, net |
|
|
(135 |
) |
|
|
848 |
|
|
|
526 |
|
|
|
(1,513 |
) |
Income (loss) before
income taxes |
|
|
2,099 |
|
|
|
5,771 |
|
|
|
(3,241 |
) |
|
|
(5,219 |
) |
Income tax (expense)
benefit |
|
|
(637 |
) |
|
|
(1,836 |
) |
|
|
977 |
|
|
|
1,905 |
|
Net income (loss) |
|
$ |
1,462 |
|
|
$ |
3,935 |
|
|
$ |
(2,264 |
) |
|
$ |
(3,314 |
) |
|
|
|
|
|
|
|
|
|
Income (loss) per
common share, basic |
|
$ |
0.04 |
|
|
$ |
0.12 |
|
|
$ |
(0.07 |
) |
|
$ |
(0.10 |
) |
Income (loss) per
common share, diluted |
|
$ |
0.04 |
|
|
$ |
0.11 |
|
|
$ |
(0.07 |
) |
|
$ |
(0.10 |
) |
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
34,146 |
|
|
|
33,873 |
|
|
|
34,099 |
|
|
|
33,818 |
|
Diluted |
|
|
34,769 |
|
|
|
34,449 |
|
|
|
34,099 |
|
|
|
33,818 |
|
|
|
|
|
|
|
|
|
|
Cash dividends per
share |
|
$ |
0.04 |
|
|
$ |
0.04 |
|
|
$ |
0.08 |
|
|
$ |
0.08 |
|
|
|
|
|
|
|
|
|
|
QUANEX BUILDING PRODUCTS
CORPORATION |
|
|
CONDENSED CONSOLIDATED BALANCE
SHEETS |
|
|
(In thousands) |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
April 30, 2017 |
|
October 31, 2016 |
|
ASSETS |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
14,513 |
|
|
$ |
25,526 |
|
|
Accounts
receivable, net |
|
|
79,735 |
|
|
|
83,625 |
|
|
Inventories, net |
|
|
91,675 |
|
|
|
84,335 |
|
|
Prepaid
and other current assets |
|
|
8,111 |
|
|
|
10,488 |
|
|
Total
current assets |
|
|
194,034 |
|
|
|
203,974 |
|
|
Property, plant and
equipment, net |
|
|
213,468 |
|
|
|
198,497 |
|
|
Goodwill |
|
|
219,883 |
|
|
|
217,035 |
|
|
Intangible assets,
net |
|
|
147,231 |
|
|
|
154,180 |
|
|
Other assets |
|
|
7,834 |
|
|
|
6,667 |
|
|
Total
assets |
|
$ |
782,450 |
|
|
$ |
780,353 |
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Accounts
payable |
|
$ |
41,239 |
|
|
$ |
47,781 |
|
|
Accrued
liabilities |
|
|
39,639 |
|
|
|
55,101 |
|
|
Income
taxes payable |
|
|
1,603 |
|
|
|
732 |
|
|
Current
maturities of long-term debt |
|
|
20,206 |
|
|
|
10,520 |
|
|
Total
current liabilities |
|
|
102,687 |
|
|
|
114,134 |
|
|
Long-term debt |
|
|
266,442 |
|
|
|
259,011 |
|
|
Deferred pension and
postretirement benefits |
|
|
9,848 |
|
|
|
8,167 |
|
|
Deferred income
taxes |
|
|
15,372 |
|
|
|
18,322 |
|
|
Other liabilities |
|
|
14,670 |
|
|
|
12,888 |
|
|
Total
liabilities |
|
|
409,019 |
|
|
|
412,522 |
|
|
Stockholders’
equity: |
|
|
|
|
|
Common
stock |
|
|
375 |
|
|
|
376 |
|
|
Additional paid-in-capital |
|
|
255,119 |
|
|
|
254,540 |
|
|
Retained
earnings |
|
|
208,629 |
|
|
|
214,047 |
|
|
Accumulated other comprehensive loss |
|
|
(32,189 |
) |
|
|
(38,765 |
) |
|
Treasury
stock at cost |
|
|
(58,503 |
) |
|
|
(62,367 |
) |
|
Total
stockholders’ equity |
|
|
373,431 |
|
|
|
367,831 |
|
|
Total
liabilities and stockholders' equity |
|
$ |
782,450 |
|
|
$ |
780,353 |
|
|
|
|
|
|
|
|
QUANEX BUILDING PRODUCTS
CORPORATION |
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOW |
|
|
(In thousands) |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
Six Months Ended April 30, |
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
Operating
activities: |
|
|
|
|
|
Net
loss |
$ |
(2,264 |
) |
|
$ |
(3,314 |
) |
|
|
Adjustments to reconcile net loss to cash provided by operating
activities: |
|
|
|
|
|
Depreciation and amortization |
|
29,786 |
|
|
|
26,786 |
|
|
|
Stock-based compensation |
|
3,222 |
|
|
|
3,830 |
|
|
|
Deferred
income tax |
|
(4,233 |
) |
|
|
(4,253 |
) |
|
|
Excess
tax benefit from share-based compensation |
|
(98 |
) |
|
|
(1 |
) |
|
|
Other,
net |
|
1,355 |
|
|
|
1,503 |
|
|
|
Changes
in assets and liabilities, net of effects from acquisitions: |
|
|
|
|
|
Decrease
in accounts receivable |
|
4,564 |
|
|
|
3,059 |
|
|
|
Increase
in inventory |
|
(6,593 |
) |
|
|
(5,181 |
) |
|
|
Increase
in other current assets |
|
(506 |
) |
|
|
(1,527 |
) |
|
|
Decrease
in accounts payable |
|
(7,170 |
) |
|
|
(157 |
) |
|
|
Decrease
in accrued liabilities |
|
(8,426 |
) |
|
|
(1,769 |
) |
|
|
Increase
in income taxes payable |
|
3,215 |
|
|
|
3,394 |
|
|
|
Increase
in deferred pension and postretirement benefits |
|
1,682 |
|
|
|
1,659 |
|
|
|
Increase
in other long-term liabilities |
|
945 |
|
|
|
695 |
|
|
|
Other,
net |
|
195 |
|
|
|
(136 |
) |
|
|
Cash provided by
operating activities |
|
15,674 |
|
|
|
24,588 |
|
|
|
Investing
activities: |
|
|
|
|
|
Acquisitions, net of cash acquired |
|
(8,497 |
) |
|
|
(245,904 |
) |
|
|
Capital
expenditures |
|
(17,550 |
) |
|
|
(17,419 |
) |
|
|
Proceeds
from disposition of capital assets |
|
593 |
|
|
|
935 |
|
|
|
Cash used for investing
activities |
|
(25,454 |
) |
|
|
(262,388 |
) |
|
|
Financing
activities: |
|
|
|
|
|
Borrowings under credit facilities |
|
53,500 |
|
|
|
332,800 |
|
|
|
Repayments of credit facility borrowings |
|
(52,250 |
) |
|
|
(79,775 |
) |
|
|
Debt
issuance costs |
|
- |
|
|
|
(8,713 |
) |
|
|
Repayments of other long-term debt |
|
(1,363 |
) |
|
|
(1,165 |
) |
|
|
Common
stock dividends paid |
|
(2,749 |
) |
|
|
(2,731 |
) |
|
|
Issuance
of common stock |
|
1,726 |
|
|
|
3,042 |
|
|
|
Excess
tax benefit from share-based compensation |
|
98 |
|
|
|
1 |
|
|
|
Cash (used for)
provided by financing activities |
|
(1,038 |
) |
|
|
243,459 |
|
|
|
Effect of
exchange rate changes on cash and cash equivalents |
|
(195 |
) |
|
|
217 |
|
|
|
(Decrease) increase in
cash and cash equivalents |
|
(11,013 |
) |
|
|
5,876 |
|
|
|
Cash and cash
equivalents at beginning of period |
|
25,526 |
|
|
|
23,125 |
|
|
|
Cash and cash
equivalents at end of period |
$ |
14,513 |
|
|
$ |
29,001 |
|
|
|
|
|
|
|
|
|
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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
NA Engineered Components |
|
EU Engineered Components |
|
NA Cabinet Components |
|
Unallocated Corp & Other |
|
Total |
Three months
ended April 30, 2017 |
|
|
|
|
|
|
|
|
|
|
Net
sales |
|
$ |
116,410 |
|
|
$ |
34,205 |
|
|
$ |
59,147 |
|
|
$ |
(629 |
) |
|
$ |
209,133 |
|
Cost of
sales |
|
|
88,424 |
|
|
|
23,764 |
|
|
|
50,281 |
|
|
|
(337 |
) |
|
|
162,132 |
|
Selling,
general and administrative |
|
|
13,466 |
|
|
|
5,198 |
|
|
|
4,401 |
|
|
|
3,851 |
|
|
|
26,916 |
|
Restructuring charges |
|
|
914 |
|
|
|
- |
|
|
|
166 |
|
|
|
- |
|
|
|
1,080 |
|
Depreciation and amortization |
|
|
8,669 |
|
|
|
2,306 |
|
|
|
3,265 |
|
|
|
140 |
|
|
|
14,380 |
|
Operating
income (loss) |
|
|
4,937 |
|
|
|
2,937 |
|
|
|
1,034 |
|
|
|
(4,283 |
) |
|
|
4,625 |
|
Depreciation and amortization |
|
|
8,669 |
|
|
|
2,306 |
|
|
|
3,265 |
|
|
|
140 |
|
|
|
14,380 |
|
EBITDA |
|
|
13,606 |
|
|
|
5,243 |
|
|
|
4,299 |
|
|
|
(4,143 |
) |
|
|
19,005 |
|
Transaction related costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
232 |
|
|
|
232 |
|
Mexico
restructuring, gain on sale of fixed assets |
|
|
- |
|
|
|
- |
|
|
|
(67 |
) |
|
|
- |
|
|
|
(67 |
) |
One-time
employee benefit adjustment |
|
|
- |
|
|
|
- |
|
|
|
188 |
|
|
|
- |
|
|
|
188 |
|
PPA-Inventory Step-up |
|
|
- |
|
|
|
90 |
|
|
|
- |
|
|
|
- |
|
|
|
90 |
|
Restructuring charges |
|
|
914 |
|
|
|
- |
|
|
|
166 |
|
|
|
- |
|
|
|
1,080 |
|
Adjusted
EBITDA |
|
$ |
14,520 |
|
|
$ |
5,333 |
|
|
$ |
4,586 |
|
|
$ |
(3,911 |
) |
|
$ |
20,528 |
|
Adjusted
EBITDA Margin % |
|
|
12.5 |
% |
|
|
15.6 |
% |
|
|
7.8 |
% |
|
|
|
|
9.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
Three months
ended April 30, 2016 |
|
|
|
|
|
|
|
|
|
|
Net
sales |
|
$ |
134,519 |
|
|
$ |
36,965 |
|
|
$ |
59,555 |
|
|
$ |
(1,579 |
) |
|
$ |
229,460 |
|
Cost of
sales |
|
|
101,193 |
|
|
|
25,518 |
|
|
|
50,801 |
|
|
|
(1,015 |
) |
|
|
176,497 |
|
Selling,
general and administrative |
|
|
16,456 |
|
|
|
5,890 |
|
|
|
4,233 |
|
|
|
2,012 |
|
|
|
28,591 |
|
Depreciation and amortization |
|
|
7,153 |
|
|
|
2,393 |
|
|
|
4,129 |
|
|
|
141 |
|
|
|
13,816 |
|
Operating
income (loss) |
|
|
9,717 |
|
|
|
3,164 |
|
|
|
392 |
|
|
|
(2,717 |
) |
|
|
10,556 |
|
Depreciation and amortization |
|
|
7,153 |
|
|
|
2,393 |
|
|
|
4,129 |
|
|
|
141 |
|
|
|
13,816 |
|
EBITDA |
|
|
16,870 |
|
|
|
5,557 |
|
|
|
4,521 |
|
|
|
(2,576 |
) |
|
|
24,372 |
|
Transaction related costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(212 |
) |
|
|
(212 |
) |
PPA-Inventory Step-up |
|
|
- |
|
|
|
90 |
|
|
|
- |
|
|
|
- |
|
|
|
90 |
|
Adjusted
EBITDA |
|
$ |
16,870 |
|
|
$ |
5,647 |
|
|
$ |
4,521 |
|
|
$ |
(2,788 |
) |
|
$ |
24,250 |
|
Adjusted
EBITDA Margin % |
|
|
12.5 |
% |
|
|
15.3 |
% |
|
|
7.6 |
% |
|
|
|
|
10.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
Six months
ended April 30, 2017 |
|
|
|
|
|
|
|
|
|
|
Net
sales |
|
$ |
227,483 |
|
|
$ |
65,774 |
|
|
$ |
112,144 |
|
|
$ |
(1,172 |
) |
|
$ |
404,229 |
|
Cost of
sales |
|
|
174,817 |
|
|
|
46,302 |
|
|
|
96,518 |
|
|
|
(558 |
) |
|
|
317,079 |
|
Selling,
general and administrative |
|
|
27,201 |
|
|
|
9,970 |
|
|
|
8,511 |
|
|
|
8,679 |
|
|
|
54,361 |
|
Restructuring charges |
|
|
1,480 |
|
|
|
- |
|
|
|
739 |
|
|
|
- |
|
|
|
2,219 |
|
Depreciation and amortization |
|
|
18,747 |
|
|
|
4,362 |
|
|
|
6,400 |
|
|
|
277 |
|
|
|
29,786 |
|
Operating
income (loss) |
|
|
5,238 |
|
|
|
5,140 |
|
|
|
(24 |
) |
|
|
(9,570 |
) |
|
|
784 |
|
Depreciation and amortization |
|
|
18,747 |
|
|
|
4,362 |
|
|
|
6,400 |
|
|
|
277 |
|
|
|
29,786 |
|
EBITDA |
|
|
23,985 |
|
|
|
9,502 |
|
|
|
6,376 |
|
|
|
(9,293 |
) |
|
|
30,570 |
|
Transaction related costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
292 |
|
|
|
292 |
|
Mexico
restructuring, loss on sale of fixed assets |
|
|
- |
|
|
|
- |
|
|
|
190 |
|
|
|
- |
|
|
|
190 |
|
One-time
employee benefit adjustment |
|
|
- |
|
|
|
- |
|
|
|
188 |
|
|
|
- |
|
|
|
188 |
|
PPA-Inventory Step-up |
|
|
- |
|
|
|
104 |
|
|
|
- |
|
|
|
- |
|
|
|
104 |
|
Restructuring charges |
|
|
1,480 |
|
|
|
- |
|
|
|
739 |
|
|
|
- |
|
|
|
2,219 |
|
Adjusted
EBITDA |
|
$ |
25,465 |
|
|
$ |
9,606 |
|
|
$ |
7,493 |
|
|
$ |
(9,001 |
) |
|
$ |
33,563 |
|
Adjusted
EBITDA Margin % |
|
|
11.2 |
% |
|
|
14.6 |
% |
|
|
6.7 |
% |
|
|
|
|
8.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
Six months
ended April 30, 2016 |
|
|
|
|
|
|
|
|
|
|
Net
sales |
|
$ |
255,567 |
|
|
$ |
70,033 |
|
|
$ |
108,080 |
|
|
$ |
(2,752 |
) |
|
$ |
430,928 |
|
Cost of
sales |
|
|
194,921 |
|
|
|
49,165 |
|
|
|
93,340 |
|
|
|
(1,581 |
) |
|
|
335,845 |
|
Selling,
general and administrative |
|
|
30,978 |
|
|
|
11,474 |
|
|
|
8,331 |
|
|
|
9,096 |
|
|
|
59,879 |
|
Depreciation and amortization |
|
|
14,361 |
|
|
|
4,851 |
|
|
|
7,274 |
|
|
|
300 |
|
|
|
26,786 |
|
Operating
income (loss) |
|
|
15,307 |
|
|
|
4,543 |
|
|
|
(865 |
) |
|
|
(10,567 |
) |
|
|
8,418 |
|
Depreciation and amortization |
|
|
14,361 |
|
|
|
4,851 |
|
|
|
7,274 |
|
|
|
300 |
|
|
|
26,786 |
|
EBITDA |
|
|
29,668 |
|
|
|
9,394 |
|
|
|
6,409 |
|
|
|
(10,267 |
) |
|
|
35,204 |
|
Transaction related costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
4,878 |
|
|
|
4,878 |
|
PPA-Inventory Step-up |
|
|
- |
|
|
|
284 |
|
|
|
2,287 |
|
|
|
- |
|
|
|
2,571 |
|
Adjusted
EBITDA |
|
$ |
29,668 |
|
|
$ |
9,678 |
|
|
$ |
8,696 |
|
|
$ |
(5,389 |
) |
|
$ |
42,653 |
|
Adjusted
EBITDA Margin % |
|
|
11.6 |
% |
|
|
13.8 |
% |
|
|
8.0 |
% |
|
|
|
|
9.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
QUANEX BUILDING PRODUCTS
CORPORATION |
|
SALES ANALYSIS |
|
(In thousands) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales Bridge for Three Months Ended April 30,
2017 |
|
|
NA Engineered |
|
EU Engineered |
|
NA Cabinet |
|
Unallocated |
|
|
|
|
Components |
|
Components |
|
Components |
|
Corporate & Other |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
Net
sales, three months ended April 30, 2016 |
|
$ |
134,519 |
|
|
$ |
36,965 |
|
|
$ |
59,555 |
|
|
$ |
(1,579 |
) |
|
$ |
229,460 |
|
Market
volume |
|
|
(1,129 |
) |
|
|
1,778 |
|
|
|
4,986 |
|
|
|
950 |
|
|
|
6,585 |
|
Eliminated products |
|
|
(18,841 |
) |
|
|
(642 |
) |
|
|
(5,391 |
) |
|
|
- |
|
|
|
(24,874 |
) |
Price
changes |
|
|
276 |
|
|
|
256 |
|
|
|
593 |
|
|
|
- |
|
|
|
1,125 |
|
Foreign
currency impacts |
|
|
- |
|
|
|
(4,152 |
) |
|
|
- |
|
|
|
- |
|
|
|
(4,152 |
) |
Raw
material pass through adjustments |
|
|
1,585 |
|
|
|
- |
|
|
|
(596 |
) |
|
|
- |
|
|
|
989 |
|
Net
Sales, three months ended April 30, 2017 |
|
$ |
116,410 |
|
|
$ |
34,205 |
|
|
$ |
59,147 |
|
|
$ |
(629 |
) |
|
$ |
209,133 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales Bridge for Six Months Ended April 30,
2017 |
|
|
NA Engineered |
|
EU Engineered |
|
NA Cabinet |
|
Unallocated |
|
|
|
|
Components |
|
Components |
|
Components |
|
Corporate & Other |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
Net
sales, six months ended April 30, 2016 |
|
$ |
255,567 |
|
|
$ |
70,033 |
|
|
$ |
108,080 |
|
|
$ |
(2,752 |
) |
|
$ |
430,928 |
|
Market
volume |
|
|
(696 |
) |
|
|
5,342 |
|
|
|
10,143 |
|
|
|
1,580 |
|
|
|
16,369 |
|
Eliminated products |
|
|
(29,806 |
) |
|
|
(642 |
) |
|
|
(6,493 |
) |
|
|
- |
|
|
|
(36,941 |
) |
Price
changes |
|
|
265 |
|
|
|
91 |
|
|
|
1,009 |
|
|
|
- |
|
|
|
1,365 |
|
Foreign
currency impacts |
|
|
- |
|
|
|
(9,050 |
) |
|
|
- |
|
|
|
- |
|
|
|
(9,050 |
) |
Raw
material pass through adjustments |
|
|
2,153 |
|
|
|
- |
|
|
|
(595 |
) |
|
|
- |
|
|
|
1,558 |
|
Net
Sales, six months ended April 30, 2017 |
|
$ |
227,483 |
|
|
$ |
65,774 |
|
|
$ |
112,144 |
|
|
$ |
(1,172 |
) |
|
$ |
404,229 |
|
|
|
|
|
|
|
|
|
|
|
|
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