WINCHESTER, Va., Aug. 24 /PRNewswire-FirstCall/ -- American
Woodmark Corporation (Nasdaq: AMWD) today announced results for its
first fiscal quarter ended July 31,
2010.
Net sales improved by 8% compared with the first quarter of the
prior fiscal year to $109,303,000.
The Company experienced an increase in sales in both remodel
and new construction, with new construction revenue increasing by
more than 20% compared with the first quarter of the prior fiscal
year.
The Company generated a net loss of ($3,418,000) or ($0.24) per diluted share during the first
quarter of fiscal year 2011, compared with a net loss of
($6,406,000) or ($0.45) per diluted share in the first quarter of
its prior fiscal year. The Company's results in the first
quarter of the prior year included $1,596,000 of net-of-tax restructuring charges
relating to cost reduction initiatives completed during the prior
year. Exclusive of these charges, net loss for the first
quarter of the prior fiscal year was ($4,810,000) or ($0.34) per diluted share.
Gross profit for the first quarter of fiscal year 2011 was 13.2%
of net sales, compared with 11.7% in the first quarter of the prior
fiscal year. The improvement in gross profit margin reflected
the beneficial impact of increased sales volume on direct labor and
manufacturing overhead costs, as well as savings realized from the
completed cost reduction initiatives. These beneficial
factors were partially offset by the unfavorable impact of rising
material and fuel costs.
Selling, general and administrative costs were 18.2% of net
sales in the first quarter of fiscal year 2011, down from 19.4% of
net sales in the first quarter of the prior fiscal year. The
Company's operating expense ratio decreased due primarily to a
reduction in general and administrative expenses.
The Company generated free cash flow of negative $0.3 million (defined as cash provided by
operating activities net of cash used for investing activities) in
the first quarter of fiscal year 2011, compared with negative free
cash flow generated in the first quarter of the prior fiscal year
of $9.1 million. The improvement
in free cash flow compared with prior year was driven primarily by
the reduction in net loss and the absence of payments made in the
prior year related to cost reduction initiatives.
The Company ended the first quarter of fiscal year 2011 with
cash, cash equivalents and restricted cash of $66.2 million and a debt-to-capital ratio of
12.9%.
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 forwardlooking statements even
if experience or future changes make it clear that any projected
results expressed or implied therein will not be
realized.
AMERICAN WOODMARK
CORPORATION
|
|
Unaudited Financial
Highlights
|
|
|
|
(in thousands, except share
data)
|
|
Operating Results
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
July 31
|
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
Net Sales
|
$ 109,303
|
|
$ 100,835
|
|
Cost of Sales &
Distribution
|
94,916
|
|
89,001
|
|
|
Gross Profit
|
14,387
|
|
11,834
|
|
Sales & Marketing
Expense
|
14,103
|
|
13,349
|
|
G&A Expense
|
5,822
|
|
6,227
|
|
Restructuring charges
|
23
|
|
2,554
|
|
|
Operating Loss
|
(5,561)
|
|
(10,296)
|
|
Interest & Other (Income)
Expense
|
(26)
|
|
(46)
|
|
Income Tax Benefit
|
(2,117)
|
|
(3,844)
|
|
|
Net Loss
|
$
(3,418)
|
|
$
(6,406)
|
|
|
|
|
|
|
|
Earnings Per
Share:
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares
Outstanding - Diluted
|
14,222,151
|
|
14,113,627
|
|
|
|
|
|
|
|
Loss Per Diluted
Share
|
$
(0.24)
|
|
$
(0.45)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Balance
Sheet
|
|
|
|
|
|
|
|
|
|
July 31,
|
|
April 30,
|
|
|
|
2010
|
|
2010
|
|
|
|
|
|
|
|
Cash & Cash
Equivalents
|
$
51,758
|
|
$
53,233
|
|
Customer Receivables
|
23,218
|
|
27,524
|
|
Inventories
|
23,648
|
|
25,239
|
|
Other Current Assets
|
17,017
|
|
17,048
|
|
|
Total Current Assets
|
115,641
|
|
123,044
|
|
Property, Plant &
Equipment
|
110,333
|
|
114,107
|
|
Restricted Cash
|
14,419
|
|
14,419
|
|
Other Assets
|
31,790
|
|
30,863
|
|
|
Total Assets
|
$ 272,183
|
|
$ 282,433
|
|
|
|
|
|
|
|
Current Portion - Long-Term
Debt
|
$
897
|
|
$
893
|
|
Accounts Payable &
Accrued Expenses
|
40,614
|
|
48,686
|
|
|
Total Current
Liabilities
|
41,511
|
|
49,579
|
|
Long-Term Debt
|
25,429
|
|
25,582
|
|
Other Liabilities
|
33,073
|
|
31,954
|
|
|
Total Liabilities
|
100,013
|
|
107,115
|
|
Stockholders' Equity
|
172,170
|
|
175,318
|
|
|
Total Liabilities &
Stockholders' Equity
|
$ 272,183
|
|
$ 282,433
|
|
|
|
|
|
|
Condensed Consolidated
Statements of Cash Flows
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
July 31
|
|
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
Net Cash Provided/(Used) by
Operating Activities
|
|
$
1,686
|
|
$ (6,718)
|
|
Net Cash Used by Investing
Activities
|
|
(2,035)
|
|
(2,361)
|
|
Free Cash Flow
|
|
$
(349)
|
|
$ (9,079)
|
|
|
|
|
|
|
|
|
Net Cash Used by Financing
Activities
|
|
(1,126)
|
|
(988)
|
|
Net Increase/(Decrease) in Cash
and Cash Equivalents
|
|
(1,475)
|
|
(10,067)
|
|
Cash and Cash Equivalents,
Beginning of Period
|
|
53,233
|
|
82,821
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents, End
of Period
|
|
$
51,758
|
|
$ 72,754
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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AMWD-F
AMWD-E
SOURCE American Woodmark Corporation
Copyright . 24 PR Newswire