WINCHESTER, Va., Aug. 29, 2011 /PRNewswire/ -- American Woodmark
Corporation (NASDAQ: AMWD), announced today that the Company has
suspended its regular quarterly dividend.
Kent Guichard, Chairman and Chief
Executive Officer commented, "The Board of Directors regularly
reviews the Company's dividend policy within the context of overall
economic and industry conditions. In the view of the Board,
recent events both home and abroad have significantly increased the
level of economic uncertainty for the foreseeable future. The
amount of uncertainty is particularly acute in the US housing
sector, both new construction and big ticket remodeling."
Guichard continued, "The Company has maintained a strong balance
sheet despite the on-going housing recession. Since the
beginning of the down cycle in April
2006, we have increased cash by $22 million to the
current $71 million and have paid
down debt by $3 million to $25
million or 14% of total capital."
With regard to the suspension of the dividend, Guichard
commented, "The Board believes liquidity will be worth a premium
until the economic uncertainty is resolved. Financial
flexibility will allow the Company to continue to increase market
share, invest in cost saving projects, and retain capacity to
support the eventual recovery as consumer confidence and job
creation improve."
Guichard concluded, "The Board remains committed over time to
returning excess cash to Shareholders. The Company will
continue to assess its cash position within the context of the
economic environment. As the Board determines excess cash
exists, the Company will move to distribute that cash to
Shareholders by resuming activity under the remaining stock
repurchase authorization of $93
million and/or resuming the dividend."
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 dealers and 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
SOURCE American Woodmark Corporation