NX Quanex Corp

Strong Underlying Growth in NA and EU Engineered Components SegmentsPrice Increases Taking Hold in Response to Inflationary PressuresSolid Free Cash Flow Generation Further Improves Leverage Ratio

Quanex Building Products Corporation (NYSE:NX) (“Quanex” or the “Company”) today announced its results for the three months ended April 30, 2018.

Bill Griffiths, Chairman, President and Chief Executive Officer, commented, “Similar to the first quarter, we continued to see strong underlying growth in both our North American and European Engineered Components segments.  We also generated solid free cash flow during the second quarter, which enabled us to further strengthen our balance sheet by paying down bank debt and improving our leverage ratio.”

Mr. Griffiths continued, “While margins continued to be impacted by inflationary pressures, the margin contraction narrowed compared to the first quarter of 2018 as a result of the implementation of a series of price increases towards the end of the second quarter.  These increases should offset inflationary costs in the second half and together with continued improvements in operating efficiencies we should see margin expansion in the fourth quarter.  This, and the expected positive impact from seasonality, gives us confidence in reaffirming our full year guidance of $890 million to $900 million in revenues and adjusted EBITDA of $103 million to $108 million.”

Second Quarter 2018 Results Summary  

The Company reported the following selected financial results:

		Three Months Ended April 30,				Six Months Ended April 30,
		2018		2017		2018		2017
Net Sales		$214.2		$209.1		$405.9		$404.2
Net Income (Loss)		$4.1		$1.5		$9.1		($2.3)
Diluted EPS		$0.12		$0.04		$0.26		($0.07)
Adjusted Net Income		$4.8		$3.8		$3.5		$2.4
Adjusted Diluted EPS		$0.14		$0.11		$0.10		$0.07
Adjusted EBITDA		$21.7		$20.5		$34.9		$33.6

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

The increase in net sales during the second quarter of 2018 was mainly driven by market and new products growth in addition to price increases largely related to raw material inflation recovery and a favorable foreign exchange impact.  (See Sales Analysis table for additional information)

The increase in earnings was largely due to lower stock-based compensation expense and a lower effective tax rate as a result of the enactment of the Tax Cuts and Jobs Act. 

As of April 30, 2018, the Company’s leverage ratio of Net Debt to LTM Adjusted EBITDA improved to 2.2x and Quanex expects to end fiscal 2018 with this leverage ratio below 2.0x.  (See Non-GAAP Terminology Definitions and Disclaimers section for additional information)

Recent Events

The Company’s Board of Directors declared a quarterly cash dividend of $0.04 per share on Quanex’s common stock, payable June 30, 2018, to shareholders of record on June 15, 2018.

Conference Call and Webcast Information

The Company has scheduled a conference call for Tuesday, June 5, 2018, 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 6446248, 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 12, 2018.  To access the replay dial (855) 859-2056 for domestic callers and (404) 537-3406 for international callers, in both cases referencing conference passcode 6446248. 

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, Investor Relations & Treasurer, at 713-877-5327 or scott.zuehlke@quanex.com.

Non-GAAP Terminology Definitions and Disclaimers

Adjusted Net Income (Loss) (defined as net income further adjusted to exclude purchase price accounting inventory step-ups, transaction costs, gain/loss on the sale of fixed assets, restructuring 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, gain/loss on the sale of fixed assets, and restructuring charges) are non-GAAP financial measures that the Company uses to measure operational performance and assist with financial decision-making.  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.  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 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.   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, 2017, 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 NET INCOME (LOSS)
(In thousands, except per share data)
(Unaudited)
		Three Months Ended April 30,								Six Months Ended April 30,
		2018				2017				2018				2017
Net sales		$	214,212			$	209,133			$	405,878			$	404,229
Cost of sales			168,741				162,132				323,181				317,079
Selling, general and administrative			23,783				26,916				47,859				54,361
Restructuring charges			242				1,080				608				2,219
Depreciation and amortization			13,310				14,380				26,583				29,786
Operating income			8,136				4,625				7,647				784
Interest expense			(2,502	)			(2,391	)			(4,943	)			(4,551	)
Other, net			(105	)			(135	)			212				526
Income (loss) before income taxes			5,529				2,099				2,916				(3,241	)
Income tax (expense) benefit			(1,393	)			(637	)			6,167				977
Net income (loss)		$	4,136			$	1,462			$	9,083			$	(2,264	)
Income (loss) per common share, basic		$	0.12			$	0.04			$	0.26			$	(0.07	)
Income (loss) per common share, diluted		$	0.12			$	0.04			$	0.26			$	(0.07	)
Weighted average common shares outstanding:
Basic			34,796				34,146				34,731				34,099
Diluted			35,115				34,769				35,166				34,099
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, 2018				October 31, 2017
ASSETS
Current assets:
Cash and cash equivalents		$	10,098			$	17,455
Accounts receivable, net			76,594				79,411
Inventories, net			92,928				87,529
Prepaid and other current assets			8,527				7,406
Total current assets			188,147				191,801
Property, plant and equipment, net			209,459				211,131
Goodwill			224,728				222,194
Intangible assets, net			133,193				139,778
Other assets			9,244				8,975
Total assets		$	764,771			$	773,879
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	44,492			$	44,150
Accrued liabilities			34,576				38,871
Income taxes payable			2,284				2,192
Current maturities of long-term debt			16,167				21,242
Total current liabilities			97,519				106,455
Long-term debt			210,857				218,184
Deferred pension and postretirement benefits			5,890				4,433
Deferred income taxes			14,889				21,960
Other liabilities			15,290				16,000
Total liabilities			344,445				367,032
Stockholders’ equity:
Common stock			375				375
Additional paid-in-capital			253,269				255,719
Retained earnings			230,945				225,704
Accumulated other comprehensive loss			(19,951	)			(25,076	)
Treasury stock at cost			(44,312	)			(49,875	)
Total stockholders’ equity			420,326				406,847
Total liabilities and stockholders' equity		$	764,771			$	773,879

QUANEX BUILDING PRODUCTS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(In thousands)
(Unaudited)
	Six Months Ended April 30,
	2018				2017 (1)
Operating activities:
Net income (loss)	$	9,083			$	(2,264	)
Adjustments to reconcile net income (loss) to cash provided by operating activities:
Depreciation and amortization		26,583				29,786
Stock-based compensation		211				3,222
Deferred income tax		(8,087	)			(4,233	)
Other, net		(321	)			1,355
Changes in assets and liabilities:
Decrease in accounts receivable		3,357				4,564
Increase in inventory		(4,623	)			(6,593	)
Increase in other current assets		(1,047	)			(506	)
Increase (decrease) in accounts payable		378				(7,170	)
Decrease in accrued liabilities		(5,220	)			(7,469	)
Increase in income taxes payable		25				3,215
Increase in deferred pension and postretirement benefits		1,457				1,682
(Decrease) increase in other long-term liabilities		(38	)			945
Other, net		(143	)			195
Cash provided by operating activities		21,615				16,729
Investing activities:
Acquisitions, net of cash acquired		-				(8,497	)
Capital expenditures		(15,213	)			(17,550	)
Proceeds from disposition of capital assets		180				593
Cash used for investing activities		(15,033	)			(25,454	)
Financing activities:
Borrowings under credit facilities		21,500				53,500
Repayments of credit facility borrowings		(34,000	)			(52,250	)
Repayments of other long-term debt		(442	)			(1,363	)
Common stock dividends paid		(2,800	)			(2,749	)
Issuance of common stock		2,564				1,726
Payroll tax paid to settle shares forfeited upon vesting of stock		(706	)			(957	)
Cash used for financing activities		(13,884	)			(2,093	)
Effect of exchange rate changes on cash and cash equivalents		(55	)			(195	)
Decrease in cash and cash equivalents		(7,357	)			(11,013	)
Cash and cash equivalents at beginning of period		17,455				25,526
Cash and cash equivalents at end of period	$	10,098			$	14,513
(1) Updated to reflect adoption of ASU 2016-09.

QUANEX BUILDING PRODUCTS CORPORATION
NON-GAAP FINANCIAL MEASURE DISCLOSURE
(In thousands, except per share data)
(Unaudited)
		Three Months Ended										Three Months Ended										Six Months Ended										Six Months Ended
Reconciliation of Adjusted Net Income (Loss) and Adjusted EPS		April 30, 2018										April 30, 2017										April 30, 2018										April 30, 2017
		Net Income				Diluted EPS						Net Income				Diluted EPS						Net Income				Diluted EPS						Net Income				Diluted EPS
Net income (loss) as reported		$	4,136			$	0.12					$	1,462			$	0.04					$	9,083			$	0.26					$	(2,264	)		$	(0.07	)
Reconciling items from below			665				0.02						2,330				0.07						(5,555	)			(0.16	)					4,688				0.14
Adjusted net income (loss) and adjusted EPS		$	4,801			$	0.14					$	3,792			$	0.11					$	3,528			$	0.10					$	2,424			$	0.07
Reconciliation of Adjusted EBITDA		Three Months Ended April 30, 2018										Three Months Ended April 30, 2017										Six Months Ended April 30, 2018										Six Months Ended April 30, 2017
		Reconciliation										Reconciliation										Reconciliation										Reconciliation
Net income (loss) as reported		$	4,136									$	1,462									$	9,083									$	(2,264	)
Income tax benefit			1,393										637										(6,167	)									(977	)
Other, net			105										135										(212	)									(526	)
Interest expense			2,502										2,391										4,943										4,551
Depreciation and amortization			13,310										14,380										26,583										29,786
EBITDA			21,446										19,005										34,230										30,570
Reconciling items from below			244										1,523										622										2,993
Adjusted EBITDA		$	21,690									$	20,528									$	34,852									$	33,563
Reconciling Items		Three Months Ended April 30, 2018										Three Months Ended April 30, 2017										Six Months Ended April 30, 2018										Six Months Ended April 30, 2017
		Income Statement				Reconciling Items						Income Statement				Reconciling Items						Income Statement				Reconciling Items						Income Statement				Reconciling Items
Net sales		$	214,212			$	-					$	209,133			$	-					$	405,878			$	-					$	404,229			$	-
Cost of sales			168,741				-						162,132				(90	)	(1	)			323,181				-						317,079				(104	)	(1	)
Selling, general and administrative			23,783				(2	)	(2	)			26,916				(353	)	(2	)			47,859				(14	)	(2	)			54,361				(670	)	(2	)
Restructuring charges			242				(242	)	(3	)			1,080				(1,080	)	(3	)			608				(608	)	(3	)			2,219				(2,219	)	(3	)
EBITDA			21,446				244						19,005				1,523						34,230				622						30,570				2,993
Depreciation and amortization			13,310				(504	)	(4	)			14,380				(1,692	)	(5	)			26,583				(852	)	(4	)			29,786				(4,225	)	(5	)
Operating income			8,136				748						4,625				3,215						7,647				1,474						784				7,218
Interest expense			(2,502	)			-						(2,391	)			-						(4,943	)			-						(4,551	)			-
Other, net			(105	)			132		(6	)			(135	)			155		(6	)			212				(167	)	(6	)			526				(475	)	(6	)
Income (loss) before income taxes			5,529				880						2,099				3,370						2,916				1,307						(3,241	)			6,743
Income tax (expense) benefit			(1,393	)			(215	)	(7	)			(637	)			(1,040	)	(7	)			6,167				(6,862	)	(7	)			977				(2,055	)	(7	)
Net income (loss)		$	4,136			$	665					$	1,462			$	2,330					$	9,083			$	(5,555	)				$	(2,264	)		$	4,688
Diluted earnings (loss) per share		$	0.12									$	0.04									$	0.26									$	(0.07	)
(1) Relates solely to purchase price accounting inventory step-up impact from HL Plastics acquisition.
(2) Acquisition related transaction costs and in 2017, loss on sale of fixed assets related to the closure of a plant and a one-time employee benefit adjustment.
(3) Restructuring charges relate to the closure of several manufacturing plant facilities.
(4) Accelerated depreciation for plant re-layout in the North American Cabinet Components segment.
(5) Accelerated depreciation and amortization for restructured PP&E and intangible assets.
(6) Foreign currency transaction losses (gains).
(7) Impact on a with and without basis.  Six monhs ended April 30, 2018 includes $6.5 million adjustment related to the Tax Cuts and Jobs Act.

QUANEX BUILDING PRODUCTS CORPORATION
Segment Reconciliation
(In thousands)
(Unaudited)
The following tables reconcile the Company's segment presentation to account for the transfer of operating facilities from the North American Engineered Components segment to the Cabinet Components segment, as previously reported in our earnings release for the three- and six-months ended April 30, 2017, to the current presentation:
		NA EngineeredComponents				EU EngineeredComponents			NA CabinetComponents				Unallocated Corp & Other				Total
Three months ended April 30, 2017
As previously reported
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 costs			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
Reclassification
Net sales		$	(5,245	)		$	-		$	5,933			$	(688	)		$	-
Cost of sales			(4,092	)			-			4,780				(688	)			-
Selling, general and administrative			(56	)			-			56				-				-
Restructuring costs			-				-			-				-				-
Depreciation and amortization			(129	)			-			129				-				-
Operating income (loss)		$	(968	)		$	-		$	968			$	-			$	-
Current presentation
Net sales		$	111,165			$	34,205		$	65,080			$	(1,317	)		$	209,133
Cost of sales			84,332				23,764			55,061				(1,025	)			162,132
Selling, general and administrative			13,410				5,198			4,457				3,851				26,916
Restructuring costs			914				-			166				-				1,080
Depreciation and amortization			8,540				2,306			3,394				140				14,380
Operating income (loss)		$	3,969			$	2,937		$	2,002			$	(4,283	)		$	4,625
Six months ended April 30, 2017
As previously reported
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 costs			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
Reclassification
Net sales		$	(10,235	)		$	-		$	11,566			$	(1,331	)		$	-
Cost of sales			(8,507	)			-			9,838				(1,331	)			-
Selling, general and administrative			(260	)			-			260				-				-
Restructuring costs			-				-			-				-				-
Depreciation and amortization			(269	)			-			269				-				-
Operating income (loss)		$	(1,199	)		$	-		$	1,199			$	-			$	-
Current presentation
Net sales		$	217,248			$	65,774		$	123,710			$	(2,503	)		$	404,229
Cost of sales			166,310				46,302			106,356				(1,889	)			317,079
Selling, general and administrative			26,941				9,970			8,771				8,679				54,361
Restructuring costs			1,480				-			739				-				2,219
Depreciation and amortization			18,478				4,362			6,669				277				29,786
Operating income (loss)		$	4,039			$	5,140		$	1,175			$	(9,570	)		$	784

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 EngineeredComponents				EU EngineeredComponents				NA CabinetComponents				Unallocated Corp & Other				Total
Three months ended April 30, 2018
Net sales		$	114,157			$	38,824			$	62,668			$	(1,437	)		$	214,212
Cost of sales			88,130				27,589				54,101				(1,079	)			168,741
Selling, general and administrative			13,422				6,255				4,522				(416	)			23,783
Restructuring charges			238				-				4				-				242
Depreciation and amortization			6,808				2,527				3,839				136				13,310
Operating income (loss)			5,559				2,453				202				(78	)			8,136
Depreciation and amortization			6,808				2,527				3,839				136				13,310
EBITDA			12,367				4,980				4,041				58				21,446
Transaction related costs			-				-				-				2				2
Restructuring charges			238				-				4				-				242
Adjusted EBITDA		$	12,605			$	4,980			$	4,045			$	60			$	21,690
Adjusted EBITDA Margin %			11.0	%			12.8	%			6.5	%							10.1	%
Three months ended April 30, 2017
Net sales		$	111,165			$	34,205			$	65,080			$	(1,317	)		$	209,133
Cost of sales			84,332				23,764				55,061				(1,025	)			162,132
Selling, general and administrative			13,410				5,198				4,457				3,851				26,916
Restructuring charges			914				-				166				-				1,080
Depreciation and amortization			8,540				2,306				3,394				140				14,380
Operating income (loss)			3,969				2,937				2,002				(4,283	)			4,625
Depreciation and amortization			8,540				2,306				3,394				140				14,380
EBITDA			12,509				5,243				5,396				(4,143	)			19,005
Transaction related costs			-				-				-				232				232
Mexico restructuring, loss on sale of fixed assets			-				-				(67	)			-				(67	)
One-time employee benefit adjustment			-				-				188				-				188
Restructuring charges			914				-				166				-				1,080
PPA-Inventory Step-up			-				90				-				-				90
Adjusted EBITDA		$	13,423			$	5,333			$	5,683			$	(3,911	)		$	20,528
Adjusted EBITDA Margin %			12.1	%			15.6	%			8.7	%							9.8	%
Six months ended April 30, 2018
Net sales		$	216,883			$	72,820			$	118,590			$	(2,415	)		$	405,878
Cost of sales			168,157				52,421				104,311				(1,708	)			323,181
Selling, general and administrative			27,246				11,683				9,310				(380	)			47,859
Restructuring charges			489				-				119				-				608
Depreciation and amortization			13,819				4,976				7,525				263				26,583
Operating income (loss)			7,172				3,740				(2,675	)			(590	)			7,647
Depreciation and amortization			13,819				4,976				7,525				263				26,583
EBITDA			20,991				8,716				4,850				(327	)			34,230
Transaction related costs			-				-				-				14				14
Restructuring charges			489				-				119				-				608
Adjusted EBITDA		$	21,480			$	8,716			$	4,969			$	(313	)		$	34,852
Adjusted EBITDA Margin %			9.9	%			12.0	%			4.2	%							8.6	%
Six months ended April 30, 2017
Net sales		$	217,248			$	65,774			$	123,710			$	(2,503	)		$	404,229
Cost of sales			166,310				46,302				106,356				(1,889	)			317,079
Selling, general and administrative			26,941				9,970				8,771				8,679				54,361
Restructuring charges			1,480				-				739				-				2,219
Depreciation and amortization			18,478				4,362				6,669				277				29,786
Operating income (loss)			4,039				5,140				1,175				(9,570	)			784
Depreciation and amortization			18,478				4,362				6,669				277				29,786
EBITDA			22,517				9,502				7,844				(9,293	)			30,570
Transaction related costs			-				-				-				292				292
Mexico restructuring, loss on disposal of fixed assets			-				-				190				-				190
One-time employee benefit adjustment			-				-				188				-				188
Restructuring charges			1,480				-				739				-				2,219
PPA-Inventory Step-up			-				104				-				-				104
Adjusted EBITDA		$	23,997			$	9,606			$	8,961			$	(9,001	)		$	33,563
Adjusted EBITDA Margin %			11.0	%			14.6	%			7.2	%							8.3	%

QUANEX BUILDING PRODUCTS CORPORATION
SALES ANALYSIS
(In thousands)
(Unaudited)
		Three Months Ended								Six Months Ended
		April 30, 2018				April 30, 2017 (1)				April 30, 2018				April 30, 2017 (1)
NA Engineered Components:
	United States - fenestration (2)	$	97,005			$	92,327			$	184,787			$	182,039
	International - fenestration		8,897				8,646				15,906				14,986
	United States - non-fenestration (3)		4,697				6,698				8,843				12,529
	International - non-fenestration		3,558				3,494				7,347				7,694
		$	114,157			$	111,165			$	216,883			$	217,248
EU Engineered Components  (4):
	United States - fenestration	$	-			$	79			$	-			$	114
	International - fenestration (5)		32,847				30,536				62,716				59,441
	International - non-fenestration		5,977				3,590				10,104				6,219
		$	38,824			$	34,205			$	72,820			$	65,774
NA Cabinet Components:
	United States - fenestration	$	3,403			$	3,363			$	6,850			$	6,696
	United States - non-fenestration (6)		58,698				60,965				110,703				115,655
	International - non-fenestration		567				752				1,037				1,359
		$	62,668			$	65,080			$	118,590			$	123,710
Unallocated Corporate & Other:
	Eliminations	$	(1,437	)		$	(1,317	)		$	(2,415	)		$	(2,503	)
		$	(1,437	)		$	(1,317	)		$	(2,415	)		$	(2,503	)
Net Sales		$	214,212			$	209,133			$	405,878			$	404,229
(1) Updated to reflect transfer of operating facilities from NA Engineered Components to NA Cabinet Components.  See Reconciliation for additional details.
(2) Reflects the loss of revenue associated with eliminated products of $3.3 million and $9.1 million for the three and six months ended April 30, 2018.
(3) Reflects the loss of revenue associated with eliminated products of $2.8 million and $4.7 million for the three and six months ended April 30, 2018.
(4) Reflects a gain of $3.6 million and $6.8 million in revenue associated with foreign currency exchange rate impacts for the three and six months ended April 30, 2018.
(5) Reflects loss of revenue associated with eliminated products of $2.1 million and $4.5 million for the three and six months ended April 30, 2018.
(6) Reflects the loss of revenue associated with eliminated products of $1.3 million and $3.7 million for the three and six months ended April 30, 2018.