WINCHESTER, Va., June 5, 2012 /PRNewswire/ -- American
Woodmark Corporation (NASDAQ: AMWD) today announced results for the
fourth quarter of its fiscal year 2012, ending April 30, 2012.
Net sales rose by 10% compared with the fourth quarter of the
prior fiscal year to $136,221,000. The Company experienced sales
gains of more than 30% in its new construction business that more
than offset a modest decline in its remodeling business during the
fourth quarter of fiscal year 2012. Net sales rose by 14%
during the entire fiscal year 2012 to $515,814,000.
The Company generated a net loss excluding restructuring charges
of ($2.3 million) or ($0.16) per diluted share during the fourth
quarter of fiscal year 2012, compared with a net loss of
($3.4 million) or ($0.24) per diluted share in the fourth quarter
of its prior fiscal year. Results for both periods were impacted by
nonrecurring transactions. Results in the fourth quarter of
fiscal year 2012 included a $0.7
million after-tax write-down of slow moving
inventories. Results in the fourth quarter of fiscal year
2011 included an adverse tax basis adjustment of $1.4 million and an after-tax gain of
$0.6 million from the sale of a
building. Excluding restructuring charges and these
non-recurring items, the Company's net loss improved to
($1.6 million) or ($0.11) per diluted share in the fourth quarter
of fiscal year 2012, from ($2.6
million) or ($0.18) per
diluted share in the fourth quarter of fiscal year 2011.
The Company's net loss excluding restructuring charges for the
entire fiscal year 2012 improved to ($10.8 million) or ($0.76) per diluted share, compared with a net
loss of ($20.0 million) or
($1.40) per diluted share in the
prior fiscal year. Excluding restructuring charges and the
non-recurring items discussed above, the Company's net loss
improved to ($10.1 million) or
($0.71) per diluted share in fiscal
year 2012, compared with ($19.2
million) or ($1.35) per
diluted share in its prior fiscal year.
The Company previously announced several initiatives to reduce
capacity and costs, including the permanent closure of two
manufacturing plants and the realignment of its retirement program
effective April 30, 2012. The two plants ceased
operations in April 2012 and
May 2012, respectively. In
connection with these initiatives, the Company recorded net-of-tax
charges during the fourth quarter of fiscal year 2012 of
($3.6 million), or ($0.26) per diluted share, and ($10.0 million) or ($0.69) per diluted share for the entire fiscal
year 2012. Inclusive of these charges, net loss for the fourth
quarter of fiscal year 2012 was ($6.0
million), or ($0.42) per
diluted share, and for the entire fiscal year 2012 was
($20.8 million) or ($1.45) per diluted share.
Gross profit for the fourth quarter of fiscal year 2012 was
12.7% of net sales, compared with 13.2% of net sales in the fourth
quarter of the prior fiscal year. Gross profit for the entire
fiscal year 2012 was 12.9% of net sales, compared with 11.7% of net
sales during the prior fiscal year. Gross profit for both the
fourth quarter and the fiscal year was favorably impacted by labor
efficiencies and the absorption of fixed overhead costs associated
with higher sales volume. However, the aforementioned
inventory write-down of 0.8% of net sales, as well as
inefficiencies resulting from the Company's restructuring efforts
more than offset this favorability in the fourth quarter of
2012. Gross margins were also adversely impacted in the
fourth quarter by rising materials and freight costs and
by higher sales promotion costs.
Selling, general and administrative costs were 15.2% of net
sales in the fourth quarter of fiscal year 2012, improved from
16.5% of net sales in the fourth quarter of the prior fiscal year.
Selling, general and administrative costs were 16.2% of
net sales for the entire fiscal year 2012, improved from 18.5% in
the prior fiscal year. The improvement in the Company's
operating expense ratio was driven by increased sales levels
that enabled favorable leverage, which more than offset an
increase in general and administrative expenses that
was driven by increased performance-based compensation.
The Company generated positive free cash flow (defined as cash
provided by operating activities net of cash used for investing
activities) of $0.3 million during
the fourth quarter of fiscal year 2012, compared with positive
$4.3 million in the fourth quarter of
its prior fiscal year. The Company generated positive free
cash flow of $6.1 million during
fiscal year 2012, compared with positive $7.7 million in the prior fiscal year. The
declines in free cash flow for the fourth quarter and entire fiscal
year were driven by outflows pertaining to restructuring activities
and the absence of proceeds from the prior year's sale of a
building.
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 nine manufacturing facilities and nine service centers
across the country.
Safe harbor statement under the Private Securities Litigation
Reform Act of 1995: All forward-looking 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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Operating Results
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Three
Months Ended
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Twelve
Months Ended
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April
30
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April
30
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2012
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2011
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2012
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2011
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Net
Sales
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$
136,221
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$
124,230
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$
515,814
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$
452,589
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Cost of
Sales & Distribution
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118,855
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107,846
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449,339
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399,838
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Gross
Profit
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17,366
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16,384
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66,475
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52,751
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Sales
& Marketing Expense
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14,116
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15,057
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58,271
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61,034
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G&A
Expense
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6,549
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5,426
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25,329
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22,709
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Restructuring Charges
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5,959
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7
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16,321
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62
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Operating
Loss
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(9,258)
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(4,106)
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(33,446)
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(31,054)
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Interest
& Other (Income) Expense
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(54)
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(948)
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(158)
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(1,094)
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Income Tax
Benefit
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(3,224)
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230
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(12,502)
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(9,942)
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Net
Loss
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$
(5,980)
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$
(3,388)
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$
(20,786)
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$
(20,018)
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Earnings Per Share:
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Weighted
Average Shares Outstanding - Diluted
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14,382,784
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14,283,033
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14,343,630
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14,251,917
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Loss Per
Diluted Share
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$
(0.42)
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$
(0.24)
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$
(1.45)
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$
(1.40)
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Net loss,
as reported
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$
(5,980)
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$
(3,388)
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$
(20,786)
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$
(20,018)
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Restructuring Charges, net of tax
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3,635
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4
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9,956
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39
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Net loss,
excluding restructuring charges
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$
(2,345)
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$
(3,384)
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$
(10,830)
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$
(19,979)
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Loss Per
Diluted Share, excluding restructuring charges
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$
(0.16)
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$
(0.24)
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$
(0.76)
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$
(1.40)
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Condensed Consolidated Balance
Sheet
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April 30
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April 30
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2012
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2011
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Cash &
Cash Equivalents
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$
66,620
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$
55,420
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Customer
Receivables
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32,533
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31,067
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Inventories
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22,340
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24,471
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Other
Current Assets
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9,609
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9,458
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Total
Current Assets
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131,102
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120,416
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Property,
Plant & Equipment
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75,375
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100,628
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Restricted
Cash
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7,064
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14,419
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Other
Assets
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51,580
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32,907
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Total
Assets
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$
265,121
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$
268,370
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Current
Portion - Long-Term Debt
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$
875
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$
928
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Accounts
Payable & Accrued Expenses
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58,346
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49,916
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Total
Current Liabilities
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59,221
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50,844
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Long-Term
Debt
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23,790
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24,655
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Other
Liabilities
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52,090
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38,906
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Total
Liabilities
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135,101
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114,405
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Stockholders' Equity
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130,020
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153,965
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Total
Liabilities & Stockholders' Equity
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$
265,121
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$
268,370
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Condensed Consolidated Statements of Cash
Flows
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Twelve
Months Ended
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April
30
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2012
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2011
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Net Cash
Provided by Operating Activities
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$
16,053
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$
13,196
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Net Cash
Used by Investing Activities
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(9,918)
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(5,466)
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Free Cash
Flow
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6,135
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7,730
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Net Cash
Provided (Used) by Financing Activities
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5,065
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(5,543)
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Net
Increase in Cash and Cash Equivalents
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11,200
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2,187
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Cash and
Cash Equivalents, Beginning of Period
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55,420
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53,233
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Cash and
Cash Equivalents, End of Period
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$
66,620
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$
55,420
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AMWD-F AMWD-E
SOURCE American Woodmark Corporation