WINCHESTER, Va., Nov. 20, 2012 /PRNewswire/ -- American
Woodmark Corporation (NASDAQ: AMWD) today announced results for the
second quarter ended October 31,
2012, of its fiscal year 2013 that ends on April 30, 2013.
Net sales rose by 24% compared with the second quarter of the
prior fiscal year to $159.8 million. Net sales rose by 19% during
the six-month period ended October 31,
2012, compared with the comparable period of the prior
fiscal year, to $308.0 million. The
Company experienced double‑digit sales gains in each of its sales
channels during the second quarter of fiscal year 2013, led by new
construction sales growth of more than 40%.
The Company generated net income excluding restructuring charges
of $2.0 million, or $0.14 per diluted share during the second
quarter of fiscal year 2013, compared with a net loss of
($3.0 million) or ($0.21) per diluted share in the second quarter
of its prior fiscal year. The Company generated net income
excluding restructuring charges of $3.0
million or $0.21 per diluted
share in the six-month period ended October
31, 2012, compared with a net loss of ($5.7 million) or ($0.40) per diluted share in the comparable
period of the prior fiscal year. Results in fiscal year 2013
included net‑of-tax restructuring costs of $0.1 million, or $0.01 per diluted share in the second quarter,
and $0.5 million, or
$0.04 per diluted share in the first
six months, related to the permanent closure of two manufacturing
plants in April 2012 and May 2012. Net income inclusive of these charges
for the second quarter and first six months of fiscal year 2013 was
$2.0 million, or $0.13 per diluted share, and $2.5 million, or $0.17 per diluted share, respectively.
Gross profit for the second quarter of fiscal year 2013 was
15.5% of net sales, compared with 12.5% of net sales in the prior
year's second quarter. Gross profit was 15.2% of net sales during
the first six months of fiscal year 2013, compared with 13.3% of
net sales during the comparable period of the prior fiscal year.
Gross profit was favorably impacted by reductions in fixed overhead
costs associated with the plant closures and by the beneficial
impact of higher sales volume. This favorability was partially
offset by the impact of operational inefficiencies connected with
the transition of production related to the plant closures during a
period of rising sales, as well as rising materials
costs.
Selling, general and administrative costs were 13.5% of net
sales in the second quarter of fiscal year 2013, improved from
16.1% of net sales in the prior year's second quarter. Selling,
general and administrative costs improved to 13.6% of net sales in
the first six months of fiscal year 2013, down from 16.6% of net
sales in the comparable period of the prior fiscal year. The
improvement in the Company's operating expense ratio was driven by
increased sales levels that enabled favorable leverage, combined
with cost savings from modifications to the Company's retirement
programs.
The Company generated free cash flow (defined as cash provided
by operating activities net of cash used for investing activities)
of $2.4 million during the second quarter of fiscal year
2013, compared with $1.1 million in
the prior year's second quarter. The net improvement in the
Company's free cash flow was driven by proceeds received from asset
sales that more than offset the impact of payments related to its
restructuring activities and the resumption of contributions to its
pension plans.
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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Six
Months Ended
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October
31
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October
31
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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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$
159,760
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$
128,418
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$
308,012
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$
259,617
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Cost of
Sales & Distribution
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134,966
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112,304
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261,175
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225,096
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Gross
Profit
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24,794
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16,114
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46,837
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34,521
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Sales
& Marketing Expense
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14,973
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14,508
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29,493
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30,484
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G&A
Expense
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6,624
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6,166
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12,263
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12,507
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Restructuring Charges
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84
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-
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861
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15
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Insurance
Proceeds
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(399)
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-
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(399)
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-
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Operating
Income (Loss)
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3,512
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(4,560)
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4,619
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(8,485)
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Interest
& Other (Income) Expense
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141
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(37)
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233
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(54)
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Income Tax
Expense (Benefit)
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1,421
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(1,547)
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1,875
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(2,739)
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Net Income
(Loss)
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$
1,950
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$
(2,976)
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$
2,511
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$
(5,692)
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Earnings Per Share:
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Weighted
Average Shares Outstanding - Diluted
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14,677,640
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14,330,954
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14,626,899
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14,315,318
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Income
(Loss) Per Diluted Share
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$
0.13
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$
(0.21)
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$
0.17
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$
(0.40)
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Net income
(loss), as reported
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$
1,950
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$
(2,976)
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$
2,511
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$
(5,692)
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Restructuring Charges, net of tax
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51
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-
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525
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9
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Net income
(loss), excluding restructuring charges
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$
2,001
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$
(2,976)
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$
3,036
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$
(5,683)
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Income
(Loss) Per Diluted Share, excluding restructuring
charges
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$
0.14
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$
(0.21)
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$
0.21
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$
(0.40)
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Condensed Consolidated Balance
Sheet
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October 31
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April 30
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2012
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2012
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Cash &
Cash Equivalents
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$
63,050
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$
66,620
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Customer
Receivables
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41,172
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32,533
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Inventories
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28,092
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22,340
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Other
Current Assets
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13,551
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9,609
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Total
Current Assets
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145,865
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131,102
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Property,
Plant & Equipment
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74,231
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75,375
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Restricted
Cash
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7,064
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7,064
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Other
Assets
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41,986
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51,580
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Total
Assets
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$
269,146
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$
265,121
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Current
Portion - Long-Term Debt
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$
959
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$
875
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Accounts
Payable & Accrued Expenses
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60,301
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58,346
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Total
Current Liabilities
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61,260
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59,221
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Long-Term
Debt
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23,721
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23,790
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Other
Liabilities
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49,162
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52,090
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Total
Liabilities
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134,143
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135,101
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Stockholders' Equity
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135,003
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130,020
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Total
Liabilities & Stockholders' Equity
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$
269,146
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$
265,121
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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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2012
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2011
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Net Cash
Provided (Used) by Operating Activities
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$
(1,754)
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$
7,879
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Net Cash
Used by Investing Activities
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(1,480)
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(4,640)
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Free Cash
Flow
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(3,234)
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3,239
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Net Cash
Used by Financing Activities
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(336)
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(1,578)
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Net
Increase/(Decrease) in Cash and Cash Equivalents
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(3,570)
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1,661
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Cash and
Cash Equivalents, Beginning of Period
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66,620
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55,420
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Cash and
Cash Equivalents, End of Period
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$
63,050
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$
57,081
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AMWD-F AMWD-E
SOURCE American Woodmark Corporation