WINCHESTER, Va., Nov. 24 /PRNewswire-FirstCall/ -- American
Woodmark Corporation (NASDAQ:AMWD) today announced results for the
second quarter of its fiscal year 2010, that ended on October 31,
2009. Net sales declined 23% compared with the second quarter of
the prior fiscal year to $104,068,000. Net sales declined 25%
during the six-month period ended October 31, 2009, compared with
the comparable period of the prior fiscal year. The Company's sales
declines in each of its sales channels approximated the overall
rate of decline during the second quarter of fiscal year 2010. The
Company generated a net loss of ($5,279,000) or ($0.37) per diluted
share during the second quarter of fiscal year 2010, compared with
a net loss of ($481,000) or ($0.03) per diluted share in the second
quarter of its prior fiscal year. The Company generated a net loss
of ($11,685,000) or ($0.83) per diluted share in the six-month
period ended October 31, 2009, compared with a net loss of
($324,000) or ($0.02) per diluted share in the comparable period of
the prior fiscal year. The Company previously announced several
initiatives to reduce costs during the fourth quarter of its prior
fiscal year, including the permanent closure of two manufacturing
plants, the suspension of operations at a third plant, and a
reduction-in-force of salaried personnel. The Company successfully
completed these initiatives during the first quarter of fiscal year
2010. In connection with these initiatives, the Company recorded
net-of-tax restructuring charges of ($146,000), or ($0.01) per
diluted share during its second quarter, and ($1,742,000), or
($0.12) per diluted share, during the six-month period ending
October 31, 2009. Exclusive of these charges, net loss for the
second quarter of fiscal year 2010 was ($5,133,000), or ($0.36) per
diluted share, and ($9,943,000) or ($0.70) per diluted share for
the sixmonth period ended October 31, 2009. Gross profit for the
second quarter of fiscal year 2010 was 12.2% of net sales, compared
with 14.4% in the second quarter of the prior fiscal year. Gross
profit was 12.0% of net sales during the first six months of fiscal
year 2010, compared with 15.2% of net sales during the comparable
period of the prior fiscal year. The decline in gross profit margin
during the three and six-month periods primarily reflected the
unfavorable impact of inefficiencies in direct labor and
manufacturing overhead costs stemming from the impact of lower
sales volumes. Partly offsetting these adverse factors were
favorable impacts from lower fuel and material costs, as well as
reduced manufacturing overhead costs related to the plant closures.
Selling, general and administrative costs were 20.1% of net sales
in the second quarter of fiscal year 2010, up from 15.2% of net
sales in the second quarter of the prior fiscal year. Selling,
general and administrative costs were 19.7% of net sales in the
first six months of fiscal year 2010, up from 15.6% in the
comparable period of the prior fiscal year. The Company's operating
expense ratio increased during fiscal year 2010 due primarily to
the reduction in sales and to the absence of a credit that occurred
in the prior year relating to a terminated retiree health care
plan. The Company experienced negative free cash flow of ($2.0)
million (defined as cash provided by operating activities net of
cash used for investing activities) in the second quarter of fiscal
year 2010, compared with positive free cash flow generated in the
second quarter of the prior fiscal year of $2.1 million. The
Company's decline in free cash flow was driven by a combination of
the increased net loss and payments made to satisfy severance
obligations. The Company announced a quarterly cash dividend of
$0.09 per share to be paid on December 21, 2009, to shareholders of
record on December 7, 2009. American Woodmark Corporation
manufactures and distributes kitchen cabinets and vanities for the
remodeling and new home construction markets. Its products are sold
on a national basis directly to home centers, major builders and
through a network of independent distributors. The Company
presently operates eleven manufacturing facilities and nine service
centers across the country. Safe harbor statement under the Private
Securities Litigation Reform Act of 1995: All forwardlooking
statements made by the Company involve material risks and
uncertainties and are subject to change based on factors that may
be beyond the Company's control. Accordingly, the Company's future
performance and financial results may differ materially from those
expressed or implied in any such forward-looking statements. Such
factors include, but are not limited to, those described in the
Company's filings with the Securities and Exchange Commission and
the Annual Report to Shareholders. The Company does not undertake
to publicly update or revise its forward looking statements even if
experience or future changes make it clear that any projected
results expressed or implied therein will not be realized. AMWD-F
AMWD-E AMERICAN WOODMARK CORPORATION Unaudited Financial Highlights
(in thousands, except share data)
------------------------------------------------------------------------
Operating Results ----------------- Three Months Ended Six Months
Ended October 31 October 31 --------------------
--------------------- 2009 2008 2009 2008 --------- ----------
---------- ---------- Net Sales $104,068 $134,939 $204,903 $274,092
Cost of Sales & Distribution 91,399 115,471 180,400 232,564
--------- ---------- ---------- ---------- Gross Profit 12,669
19,468 24,503 41,528 Sales & Marketing Expense 14,510 15,122
27,859 30,691 G&A Expense 6,380 5,435 12,607 11,976
Restructuring charges 233 -- 2,787 -- --------- ----------
---------- ---------- Operating Loss (8,454) (1,089) (18,750)
(1,139) Interest & Other (Income) Expense (7) (328) (53) (589)
Income Tax Benefit (3,168) (280) (7,012) (226) --------- ----------
---------- ---------- Net Loss $(5,279) $ (481) $(11,685) $(324)
========= ========== ========== ========== Earnings Per Share:
Weighted Average Shares Outstanding - Diluted 14,138,091 14,031,376
14,125,859 14,050,490 Loss Per Diluted Share $(0.37) $(0.03)
$(0.83) $(0.02) Condensed Consolidated Balance Sheet
------------------------------------ October 31, April 30, 2009
2009 ---------- -------- Cash & Cash Equivalents $69,391
$82,821 Customer Receivables 31,003 26,944 Inventories 26,525
32,684 Other Current Assets 13,461 11,089 -------- -------- Total
Current Assets 140,380 153,538 Property, Plant & Equipment
122,695 132,928 Other Assets 23,769 17,271 -------- -------- Total
Assets $286,844 $303,737 ======== ======== Current Portion -
Long-Term Debt $866 $859 Accounts Payable & Accrued Expenses
48,851 57,308 -------- -------- Total Current Liabilities 49,717
58,167 Long-Term Debt 26,175 26,475 Other Liabilities 18,232 15,413
-------- -------- Total Liabilities 94,124 100,055 Shareholders'
Equity 192,720 203,682 -------- -------- Total Liabilities &
Shareholders' Equity $286,844 $303,737 ======== ======== Condensed
Consolidated Statements of Cash Flows
----------------------------------------------- Six Months Ended
October 31 -------------------- 2009 2008 ------- ------- Net Cash
Provided (Used) by Operating Activities $(6,438) $16,506 Net Cash
Used by Investing Activities (4,595) (6,990) ------- ------- Free
Cash Flow $(11,033) $9,516 Net Cash Used by Financing Activities
(2,397) (5,393) ------- ------- Net Increase/(Decrease) in Cash and
Cash Equivalents (13,430) 4,123 Cash and Cash Equivalents,
Beginning of Period 82,821 56,932 ------- ------- Cash and Cash
Equivalents, End of Period $69,391 $61,055 ======= =======
DATASOURCE: American Woodmark Corporation CONTACT: Glenn Eanes,
Vice President and Treasurer, +1-540-665-9100 Web Site:
http://www.americanwoodmark.com/
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