WINCHESTER, Va., Nov. 24, 2010 /PRNewswire-FirstCall/ -- American
Woodmark Corporation (Nasdaq: AMWD) today announced results for the
second quarter of its fiscal year 2011, that ended on October 31, 2010.
Net sales rose by 3% compared with the second quarter of the
prior fiscal year to $107,613,000.
Net sales rose by 6% during the six-month period ended
October 31, 2010 compared with the
comparable period of the prior fiscal year, to $216,916,000. The Company's sales results
in each of its sales channels approximated the overall rate of
increase during the second quarter of fiscal year 2011.
The Company generated a net loss of ($7,384,000) or ($0.52) per diluted share during the second
quarter of fiscal year 2011, compared with a net loss of
($5,279,000) or ($0.37) per diluted share in the second quarter
of its prior fiscal year. The Company generated a net loss of
($10,802,000) or ($0.76) per diluted share in the six-month period
ended October 31, 2010, compared with
a net loss of ($11,685,000) or
($0.83) per diluted share in the
comparable period of the prior fiscal year. The Company's
results in the three- and six-month periods of the prior fiscal
year included $146,000 and
$1,742,000 of net-of-tax
restructuring charges relating to cost reduction initiatives
completed in the prior fiscal year. Exclusive of these charges, net
loss for the three- and six-month periods ended
October 31, 2009 was ($5,133,000) or ($0.36) per diluted share, and ($9,943,000) or ($0.70) per diluted share, respectively.
Gross profit for the second quarter of fiscal year 2011 was 9.1%
of net sales, compared with 12.2% in the second quarter of the
prior fiscal year. Gross profit was 11.2% of net sales during
the first six months of fiscal year 2011, compared with 12.0% 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
increased sales promotion costs that were included as either
reductions of sales or increases to cost of sales during the second
quarter of fiscal year 2011.
Selling, general and administrative costs were 20.3% of net
sales in the second quarter of fiscal year 2011, up from 20.1% of
net sales in the second quarter of the prior fiscal year. Selling,
general and administrative costs were 19.3% of net sales in the
first six months of fiscal year 2011, down slightly from 19.7% in
the comparable period of the prior fiscal year. The Company's
operating expense ratio was relatively consistent with prior year
levels, as increased sales and marketing costs were offset by
reductions in general and administrative expense.
The Company generated positive free cash flow (defined as cash
provided by operating activities net of cash used for investing
activities) of $5.5 million in the
second quarter of fiscal year 2011, compared with negative free
cash flow generated in the second quarter of the prior fiscal year
of $2.0 million. The Company's
improvement in free cash flow was aided by the receipt of its
federal income tax refund and by proceeds from the sale of a closed
plant.
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.
AMERICAN
WOODMARK CORPORATION
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Unaudited
Financial Highlights
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(in
thousands, except share data)
|
|
|
|
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|
|
|
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Operating
Results
|
|
|
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|
|
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Three Months
Ended
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Six Months
Ended
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October
31
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October
31
|
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2010
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2009
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2010
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2009
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Net Sales
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$
107,613
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$
104,068
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$
216,916
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$
204,903
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Cost of Sales &
Distribution
|
97,797
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91,399
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|
192,713
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|
180,400
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Gross Profit
|
9,816
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12,669
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24,203
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|
24,503
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Sales & Marketing
Expense
|
15,805
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|
14,510
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29,908
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|
27,859
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|
G&A Expense
|
6,040
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|
6,380
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|
11,862
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|
12,607
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Restructuring Charges
|
16
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|
233
|
|
39
|
|
2,787
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|
|
Operating Loss
|
(12,045)
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|
(8,454)
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(17,606)
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(18,750)
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Interest & Other (Income)
Expense
|
(87)
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|
(7)
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(113)
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(53)
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Income Tax Benefit
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(4,574)
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(3,168)
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(6,691)
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(7,012)
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Net Loss
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$
(7,384)
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$
(5,279)
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$
(10,802)
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$
(11,685)
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Earnings Per
Share:
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Weighted Average Shares
Outstanding - Diluted
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14,240,178
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14,138,091
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14,231,165
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14,125,859
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Loss Per Diluted
Share
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$
(0.52)
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|
$
(0.37)
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$
(0.76)
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$
(0.83)
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Condensed
Consolidated Balance Sheet
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|
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October
31
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April
30
|
|
|
|
|
2010
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2010
|
|
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Cash & Cash
Equivalents
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|
$
55,866
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$ 53,233
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Customer Receivables
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|
27,721
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|
27,524
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Inventories
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23,982
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|
25,239
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Other Current Assets
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10,186
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|
17,048
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Total Current Assets
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117,755
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|
123,044
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Property, Plant &
Equipment
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|
107,059
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114,107
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Restricted Cash
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|
14,419
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|
14,419
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Other Assets
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31,827
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|
30,863
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Total Assets
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$
271,060
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$ 282,433
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Current Portion - Long-Term
Debt
|
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$
926
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|
$
893
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Accounts Payable & Accrued
Expenses
|
|
45,869
|
|
48,686
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|
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Total Current
Liabilities
|
|
46,795
|
|
49,579
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Long-Term Debt
|
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25,275
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|
25,582
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Other Liabilities
|
|
34,233
|
|
31,954
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Total Liabilities
|
|
106,303
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|
107,115
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Stockholders' Equity
|
|
164,757
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|
175,318
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Total Liabilities &
Stockholders' Equity
|
|
$
271,060
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|
$ 282,433
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|
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Condensed
Consolidated Statements of Cash Flows
|
|
|
|
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Six Months
Ended
|
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October
31
|
|
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2010
|
|
2009
|
|
|
|
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Net Cash Provided/(Used) by
Operating Activities
|
$ 7,591
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|
$ (6,438)
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Net Cash Used by Investing
Activities
|
(2,426)
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|
(4,595)
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Free Cash Flow
|
5,165
|
|
(11,033)
|
|
|
|
|
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Net Cash Used by Financing
Activities
|
(2,532)
|
|
(2,397)
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|
Net Increase/(Decrease) in Cash
and Cash Equivalents
|
2,633
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|
(13,430)
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Cash and Cash Equivalents,
Beginning of Period
|
53,233
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|
82,821
|
|
|
|
|
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Cash and Cash Equivalents, End
of Period
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$ 55,866
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$ 69,391
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AMWD-F
AMWD-E
SOURCE American Woodmark Corporation