Quanex Building Products Corporation (NYSE:NX)
(“Quanex” or the “Company”) today announced its results for the
three months ended January 31, 2018.
Bill Griffiths, Chairman, President and Chief
Executive Officer, stated, “First quarter results tracked the
typical seasonality of our businesses; however, raw material price
and labor inflation pressured margins across the board. We
expect to recover some of the increase in raw materials prices in
the coming months via contractual pass through or targeted price
increases and we will work hard to cover the balance with
operational efficiency improvements. Excluding eliminated
products, our legacy fenestration business in the U.S. grew at 4.4%
during the quarter, which compares favorably to Ducker’s latest
window shipment estimate of 4.2% growth for the three months ended
December 31, 2017. Similarly, underlying growth in our
European Engineered Components segment was 5.4%. We generated
positive free cash flow during the first quarter of 2018, which
allowed us to pay down bank debt during the quarter of the year
where we have historically had to borrow. Despite the recent
gyrations in the stock market, the fundamentals for our business
remain positive, and as such we are comfortable reaffirming our
full year 2018 guidance and expect a strong second half of the
year.”
First Quarter 2018 Results
Summary
The Company reported the following selected
financial results:
|
|
|
|
|
|
Three Months Ended January 31, |
|
|
|
|
2018 |
|
|
|
2017 |
|
|
Net Sales |
|
$ |
191.7 |
|
|
$ |
195.1 |
|
|
Net Income (Loss) |
|
$ |
4.9 |
|
|
$ |
(3.7 |
) |
|
Diluted EPS |
|
$ |
0.14 |
|
|
$ |
(0.11 |
) |
|
|
|
|
|
|
|
Adjusted Net Loss |
|
$ |
(1.5 |
) |
|
$ |
(1.4 |
) |
|
Adjusted Diluted
EPS |
|
$ |
(0.04 |
) |
|
$ |
(0.04 |
) |
|
Adjusted EBITDA |
|
$ |
13.2 |
|
|
$ |
13.0 |
|
|
|
|
|
|
|
|
(See Non-GAAP Terminology Definitions and Disclaimers section,
Non-GAAP Financial Measure Disclosure table and Selected Segment
Data table for additional information)
The slight decrease in net sales during the
first quarter of 2018 was largely the result of portfolio
rationalization and divestitures that occurred throughout
2017. The loss of revenues in the first quarter of 2018
associated with the aforementioned actions that took place in 2017
was somewhat offset by solid underlying growth in the North
American and European Engineered Components segments. (See Sales
Analysis table for additional information)
The increase in earnings was predominantly
attributable to lower stock-based compensation expense and a $6.5
million, or $0.19 per diluted share, net tax benefit as a result of
the enactment of the Tax Cuts and Jobs Act on December 22,
2017. The Tax Cuts and Jobs Act reduces the federal corporate
tax rate on U.S. earnings to 21% and moves from a global taxation
regime to a modified territorial regime. The lower tax rate
will be phased in over time since Quanex has an October 31 fiscal
year-end. Including the net tax benefit realized in the first
quarter of 2018, the Company estimates that its effective tax rate
for fiscal 2018 will be approximately 9%, or approximately 24%
excluding the net tax benefit. Quanex will continue to
evaluate the impact of the tax reform through the remainder of
fiscal 2018.
As of January 31, 2018, the Company’s leverage
ratio of Net Debt to LTM Adjusted EBITDA was unchanged at
2.3x. Quanex remains focused on generating Free Cash Flow to
pay down debt and expects to end fiscal 2018 with a leverage ratio
below 2.0x. (See Non-GAAP Terminology Definitions and
Disclaimers section for additional information)
Recent Events
The stockholders approved each of the following
proposals voted on at the Company’s annual meeting held on March 1,
2018.
- Election of Directors – Robert R. Buck, Susan F. Davis, Joseph
D. Rupp and Curtis M. Stevens were elected to serve as directors on
the Quanex Board of Directors until the Company’s Annual Meeting of
Stockholders in 2019
- Advisory Vote Approving Named Executive Officer Compensation -
the stockholders supported Quanex’s executive officer compensation
structure
- Ratification of Appointment of Grant Thornton LLP as
Independent Public Accountants – the stockholders ratified the
Company’s appointment of Grant Thornton LLP as its independent
registered public accounting firm for the fiscal year ending
October 31, 2018
Additionally, Quanex’s Board of Directors
declared a quarterly cash dividend of $0.04 per share on the
Company’s common stock, payable March 29, 2018, to shareholders of
record on March 15, 2018.
Conference Call and Webcast
Information
The Company has scheduled a conference call for
Tuesday, March 6, 2018, at 11:00 a.m. ET (10:00 a.m. CT). To
participate in the conference call dial (877) 388-2139 for domestic
callers and (541) 797-2983 for international callers, in both cases
using the conference passcode 1039546, and ask for the Quanex call
a few minutes prior to the start time. A link to the live
audio webcast will also be available on the Company’s website at
http://www.quanex.com in the Investors section under Presentations
& Events. A telephonic replay of the call will be
available approximately two hours after the live broadcast ends and
will be accessible through March 13, 2018. To access the
replay dial (855) 859-2056 for domestic callers and (404) 537-3406
for international callers, in both cases referencing conference
passcode 1039546.
About Quanex
Quanex Building Products Corporation is an
industry-leading manufacturer of components sold to Original
Equipment Manufacturers (OEMs) in the building products
industry. Quanex designs and produces energy-efficient
fenestration products in addition to kitchen and bath cabinet
components.For more information contact Scott Zuehlke, Vice
President, Investor Relations & Treasurer, at 713-877-5327 or
scott.zuehlke@quanex.com.
Non-GAAP Terminology Definitions and
Disclaimers
Adjusted Net Income (Loss) (defined as net
income further adjusted to exclude purchase price accounting
inventory step-ups, transaction costs, gain/loss on the sale of
fixed assets, restructuring charges, other net adjustments related
to foreign currency transaction gain/loss and effective tax rates
reflecting impacts of adjustments on a with and without basis) and
Adjusted EPS are non-GAAP financial measures that Quanex believes
provide a consistent basis for comparison between periods and more
accurately reflects operational performance, as they are not
influenced by certain income or expense items not affecting ongoing
operations. EBITDA (defined as net income or loss before interest,
taxes, depreciation and amortization and other, net) and Adjusted
EBITDA (defined as EBITDA further adjusted to exclude purchase
price accounting inventory step-ups, transaction costs, gain/loss
on the sale of fixed assets, and restructuring charges) are
non-GAAP financial measures that the Company uses to measure
operational performance and assist with financial
decision-making. Net Debt is calculated using the sum of
current maturities of long-term debt and long-term debt, minus cash
and cash equivalents. The leverage ratio of Net Debt to LTM
Adjusted EBITDA is a financial measure that Quanex believes is
useful to investors and financial analysts in evaluating the
Company’s leverage. In addition, with certain limited
adjustments, this leverage ratio is the basis for a key covenant in
Quanex’s credit agreement. Free Cash Flow is a non-GAAP
measure calculated using cash provided by operating activities less
capital expenditures. The Company believes that the
presented non-GAAP measures provide a consistent basis for
comparison between periods, and will assist investors in
understanding Quanex’s financial performance when comparing results
to other investment opportunities. The presented non-GAAP
measures may not be the same as those used by other
companies. The Company does not intend for this information
to be considered in isolation or as a substitute for other measures
prepared in accordance with U.S. GAAP.
Forward Looking Statements
Statements that use the words “estimated,”
“expect,” “could,” “should,” “believe,” “will,” “might,” or similar
words reflecting future expectations or beliefs are forward-looking
statements. The forward-looking statements include, but are not
limited to, the Company’s future operating results, future
financial condition, future uses of cash and other expenditures,
expenses and tax rates, expectations relating to Quanex’s industry,
and the Company’s future growth, including any guidance discussed
in this press release. The statements and guidance set forth
in this release are based on current expectations. Actual
results or events may differ materially from this release.
For a complete discussion of factors that may affect Quanex’s
future performance, please refer to the Company’s Annual Report on
Form 10-K for the fiscal year ended October 31, 2017, under the
sections entitled “Cautionary Note Regarding Forward-Looking
Statements” and “Risk Factors”. Any forward-looking
statements in this press release are made as of the date hereof,
and Quanex undertakes no obligation to update or revise any
forward-looking statements to reflect new information or
events.
|
QUANEX BUILDING PRODUCTS
CORPORATION |
CONDENSED CONSOLIDATED STATEMENTS OF NET
INCOME (LOSS) |
(In thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three Months Ended January 31, |
|
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
191,666 |
|
|
$ |
195,096 |
|
|
|
Cost of sales |
|
|
154,440 |
|
|
|
154,947 |
|
|
|
Selling, general and
administrative |
|
|
24,076 |
|
|
|
27,445 |
|
|
|
Restructuring
charges |
|
|
366 |
|
|
|
1,139 |
|
|
|
Depreciation and
amortization |
|
|
13,273 |
|
|
|
15,406 |
|
|
|
Operating loss |
|
|
(489 |
) |
|
|
(3,841 |
) |
|
|
Interest expense |
|
|
(2,441 |
) |
|
|
(2,160 |
) |
|
|
Other, net |
|
|
317 |
|
|
|
661 |
|
|
|
Loss before income
taxes |
|
|
(2,613 |
) |
|
|
(5,340 |
) |
|
|
Income tax benefit |
|
|
7,560 |
|
|
|
1,614 |
|
|
|
Net income (loss) |
|
$ |
4,947 |
|
|
$ |
(3,726 |
) |
|
|
|
|
|
|
|
|
|
Income (loss) per
common share, basic |
|
$ |
0.14 |
|
|
$ |
(0.11 |
) |
|
|
Income (loss) per
common share, diluted |
|
$ |
0.14 |
|
|
$ |
(0.11 |
) |
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding: |
|
|
|
|
|
|
Basic |
|
|
34,662 |
|
|
|
34,055 |
|
|
|
Diluted |
|
|
35,286 |
|
|
|
34,055 |
|
|
|
|
|
|
|
|
|
|
Cash dividends per
share |
|
$ |
0.04 |
|
|
$ |
0.04 |
|
|
|
|
|
|
|
|
|
|
|
QUANEX BUILDING PRODUCTS
CORPORATION |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(In thousands) |
(Unaudited) |
|
|
|
|
|
|
|
January 31, 2018 |
|
October 31, 2017 |
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and
cash equivalents |
|
$ |
13,757 |
|
|
$ |
17,455 |
|
Accounts
receivable, net |
|
|
62,119 |
|
|
|
79,411 |
|
Inventories, net |
|
|
95,843 |
|
|
|
87,529 |
|
Prepaid
and other current assets |
|
|
7,451 |
|
|
|
7,406 |
|
Total
current assets |
|
|
179,170 |
|
|
|
191,801 |
|
Property, plant and
equipment, net |
|
|
213,014 |
|
|
|
211,131 |
|
Goodwill |
|
|
226,927 |
|
|
|
222,194 |
|
Intangible assets,
net |
|
|
138,743 |
|
|
|
139,778 |
|
Other assets |
|
|
9,180 |
|
|
|
8,975 |
|
Total
assets |
|
$ |
767,034 |
|
|
$ |
773,879 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts
payable |
|
$ |
39,868 |
|
|
$ |
44,150 |
|
Accrued
liabilities |
|
|
29,559 |
|
|
|
38,871 |
|
Income
taxes payable |
|
|
2,664 |
|
|
|
2,192 |
|
Current
maturities of long-term debt |
|
|
20,773 |
|
|
|
21,242 |
|
Total
current liabilities |
|
|
92,864 |
|
|
|
106,455 |
|
Long-term debt |
|
|
215,362 |
|
|
|
218,184 |
|
Deferred pension and
postretirement benefits |
|
|
5,293 |
|
|
|
4,433 |
|
Deferred income
taxes |
|
|
14,771 |
|
|
|
21,960 |
|
Other liabilities |
|
|
15,787 |
|
|
|
16,000 |
|
Total
liabilities |
|
|
344,077 |
|
|
|
367,032 |
|
Stockholders’
equity: |
|
|
|
|
Common
stock |
|
|
375 |
|
|
|
375 |
|
Additional paid-in-capital |
|
|
253,638 |
|
|
|
255,719 |
|
Retained
earnings |
|
|
228,293 |
|
|
|
225,704 |
|
Accumulated other comprehensive loss |
|
|
(14,623 |
) |
|
|
(25,076 |
) |
Treasury
stock at cost |
|
|
(44,726 |
) |
|
|
(49,875 |
) |
Total
stockholders’ equity |
|
|
422,957 |
|
|
|
406,847 |
|
Total
liabilities and stockholders' equity |
|
$ |
767,034 |
|
|
$ |
773,879 |
|
|
|
|
|
|
|
QUANEX BUILDING PRODUCTS
CORPORATION |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOW |
(In thousands) |
(Unaudited) |
|
|
|
|
|
Three Months Ended January 31, |
|
|
2018 |
|
|
2017 (1) |
Operating activities: |
|
|
|
Net
income (loss) |
$ |
4,947 |
|
|
$ |
(3,726 |
) |
Adjustments to reconcile net income (loss) to cash provided by
operating activities: |
|
|
Depreciation and amortization |
|
13,273 |
|
|
|
15,406 |
|
Stock-based compensation |
|
580 |
|
|
|
2,226 |
|
Deferred
income tax |
|
(8,483 |
) |
|
|
(3,684 |
) |
Other,
net |
|
130 |
|
|
|
1,241 |
|
Changes
in assets and liabilities: |
|
|
|
Decrease
in accounts receivable |
|
18,378 |
|
|
|
21,143 |
|
Increase
in inventory |
|
(6,926 |
) |
|
|
(7,622 |
) |
Decrease
(increase) in other current assets |
|
73 |
|
|
|
(438 |
) |
Decrease
in accounts payable |
|
(4,523 |
) |
|
|
(7,232 |
) |
Decrease
in accrued liabilities |
|
(10,629 |
) |
|
|
(17,971 |
) |
Increase
in income taxes |
|
344 |
|
|
|
2,761 |
|
Increase
in deferred pension and postretirement benefits |
|
860 |
|
|
|
837 |
|
Increase
in other long-term liabilities |
|
181 |
|
|
|
366 |
|
Other,
net |
|
(13 |
) |
|
|
(226 |
) |
Cash provided by
operating activities |
|
8,192 |
|
|
|
3,081 |
|
Investing activities: |
|
|
|
Acquisitions, net of cash acquired |
|
- |
|
|
|
(8,497 |
) |
Capital
expenditures |
|
(7,811 |
) |
|
|
(8,141 |
) |
Proceeds
from disposition of capital assets |
|
65 |
|
|
|
390 |
|
Cash used for investing
activities |
|
(7,746 |
) |
|
|
(16,248 |
) |
Financing activities: |
|
|
|
Borrowings under credit facilities |
|
9,500 |
|
|
|
24,000 |
|
Repayments of credit facility borrowings |
|
(13,750 |
) |
|
|
(20,875 |
) |
Repayments of other long-term debt |
|
(255 |
) |
|
|
(429 |
) |
Common
stock dividends paid |
|
(1,397 |
) |
|
|
(1,372 |
) |
Issuance
of common stock |
|
2,231 |
|
|
|
1,383 |
|
Payroll
tax paid to settle shares forfeited upon vesting of stock |
|
(706 |
) |
|
|
(957 |
) |
Cash (used for)
provided by financing activities |
|
(4,377 |
) |
|
|
1,750 |
|
Effect of
exchange rate changes on cash and cash equivalents |
|
233 |
|
|
|
(35 |
) |
Decrease in cash and
cash equivalents |
|
(3,698 |
) |
|
|
(11,452 |
) |
Cash and cash
equivalents at beginning of period |
|
17,455 |
|
|
|
25,526 |
|
Cash and cash
equivalents at end of period |
$ |
13,757 |
|
|
$ |
14,074 |
|
|
|
|
|
(1)
Updated to reflect adoption of ASU 2016-09. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QUANEX BUILDING PRODUCTS
CORPORATION |
NON-GAAP FINANCIAL MEASURE
DISCLOSURE |
(In thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Three Months Ended |
|
Reconciliation
of Adjusted Net Income (Loss) and Adjusted EPS |
|
January 31, 2018 |
|
|
January 31, 2017 |
|
|
|
Net Income |
|
Diluted EPS |
|
|
Net Income |
|
Diluted EPS |
|
Net
income (loss) as reported |
|
$ |
4,947 |
|
|
$ |
0.14 |
|
|
|
$ |
(3,726 |
) |
|
$ |
(0.11 |
) |
|
Reconciling items from below |
|
|
(6,485 |
) |
|
|
(0.18 |
) |
|
|
|
2,358 |
|
|
|
0.07 |
|
|
Adjusted
net loss and adjusted EPS |
|
$ |
(1,538 |
) |
|
$ |
(0.04 |
) |
|
|
$ |
(1,368 |
) |
|
$ |
(0.04 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of Adjusted EBITDA |
|
Three Months Ended January 31,
2018 |
|
|
Three Months Ended January 31,
2017 |
|
|
|
Reconciliation |
|
|
|
|
Reconciliation |
|
|
|
Net
income (loss) as reported |
|
$ |
4,947 |
|
|
|
|
|
$ |
(3,726 |
) |
|
|
|
Income
tax benefit |
|
|
(7,560 |
) |
|
|
|
|
|
(1,614 |
) |
|
|
|
Other,
net |
|
|
(317 |
) |
|
|
|
|
|
(661 |
) |
|
|
|
Interest
expense |
|
|
2,441 |
|
|
|
|
|
|
2,160 |
|
|
|
|
Depreciation and amortization |
|
|
13,273 |
|
|
|
|
|
|
15,406 |
|
|
|
|
EBITDA |
|
|
12,784 |
|
|
|
|
|
|
11,565 |
|
|
|
|
Reconciling items from below |
|
|
378 |
|
|
|
|
|
|
1,470 |
|
|
|
|
Adjusted
EBITDA |
|
$ |
13,162 |
|
|
|
|
|
$ |
13,035 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling
Items |
|
Three Months Ended January 31,
2018 |
|
|
Three Months Ended January 31,
2017 |
|
|
|
Income Statement |
|
Reconciling
Items |
|
|
Income Statement |
|
Reconciling
Items |
|
Net
sales |
|
$ |
191,666 |
|
|
$ |
- |
|
|
|
$ |
195,096 |
|
|
$ |
- |
|
|
Cost of
sales |
|
|
154,440 |
|
|
|
- |
|
|
|
|
154,947 |
|
|
|
(14 |
) |
(1 |
) |
Selling,
general and administrative |
|
|
24,076 |
|
|
|
(12 |
) |
(2 |
) |
|
|
27,445 |
|
|
|
(317 |
) |
(2 |
) |
Restructuring charges |
|
|
366 |
|
|
|
(366 |
) |
(3 |
) |
|
|
1,139 |
|
|
|
(1,139 |
) |
(3 |
) |
EBITDA |
|
|
12,784 |
|
|
|
378 |
|
|
|
|
11,565 |
|
|
|
1,470 |
|
|
Depreciation and amortization |
|
|
13,273 |
|
|
|
- |
|
|
|
|
15,406 |
|
|
|
(2,533 |
) |
(4 |
) |
Operating loss |
|
|
(489 |
) |
|
|
378 |
|
|
|
|
(3,841 |
) |
|
|
4,003 |
|
|
Interest
expense |
|
|
(2,441 |
) |
|
|
- |
|
|
|
|
(2,160 |
) |
|
|
- |
|
|
Other,
net |
|
|
317 |
|
|
|
(299 |
) |
(5 |
) |
|
|
661 |
|
|
|
(630 |
) |
(5 |
) |
Loss
before income taxes |
|
|
(2,613 |
) |
|
|
79 |
|
|
|
|
(5,340 |
) |
|
|
3,373 |
|
|
Income
tax benefit |
|
|
7,560 |
|
|
|
(6,564 |
) |
(6 |
) |
|
|
1,614 |
|
|
|
(1,015 |
) |
(6 |
) |
Net
income (loss) |
|
$ |
4,947 |
|
|
$ |
(6,485 |
) |
|
|
$ |
(3,726 |
) |
|
$ |
2,358 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings (loss) per share |
|
$ |
0.14 |
|
|
|
|
|
$ |
(0.11 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Relates solely to purchase price accounting inventory step-up
impact from HL Plastics acquisition. |
(2)
Acquisition related transaction costs and loss on sale of fixed
assets related to the closure of a plant in 2017. |
(3)
Restructuring charges relate to the closure of several
manufacturing plant facilities. |
(4)
Accelerated depreciation and amortization for restructured PP&E
and intangible assets. |
(5)
Foreign currency transaction gains. |
(6) Impact
on a with and without basis. Includes $6.5 million adjustment
related to the Tax Cuts and Jobs Act in 2018. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QUANEX BUILDING PRODUCTS
CORPORATION |
SEGMENT RECONCILIATION |
(In thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
The following tables reconcile the Company's segment
presentation to account for the transfer of operating facilities
from the North American Engineered Components segment to the
Cabinet Components segment, as previously reported in our earnings
release for the three-months ended January 31, 2017, to the current
presentation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NA EngineeredComponents |
|
EU EngineeredComponents |
|
NA CabinetComponents |
|
Unallocated Corp &
Other |
|
Total |
|
Three months
ended January 31, 2017 |
|
|
|
|
|
|
|
|
|
|
|
As previously
reported |
|
|
|
|
|
|
|
|
|
|
|
Net
sales |
|
$ |
111,073 |
|
|
$ |
31,569 |
|
$ |
52,997 |
|
|
$ |
(543 |
) |
|
$ |
195,096 |
|
|
Cost of
sales |
|
|
86,393 |
|
|
|
22,538 |
|
|
46,237 |
|
|
|
(221 |
) |
|
|
154,947 |
|
|
Selling,
general and administrative |
|
|
13,735 |
|
|
|
4,772 |
|
|
4,110 |
|
|
|
4,828 |
|
|
|
27,445 |
|
|
Restructuring costs |
|
|
566 |
|
|
|
- |
|
|
573 |
|
|
|
- |
|
|
|
1,139 |
|
|
Depreciation and amortization |
|
|
10,078 |
|
|
|
2,056 |
|
|
3,135 |
|
|
|
137 |
|
|
|
15,406 |
|
|
Operating
income (loss) |
|
$ |
301 |
|
|
$ |
2,203 |
|
$ |
(1,058 |
) |
|
$ |
(5,287 |
) |
|
$ |
(3,841 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reclassification |
|
|
|
|
|
|
|
|
|
|
|
Net
sales |
|
$ |
(4,990 |
) |
|
$ |
- |
|
$ |
5,633 |
|
|
$ |
(643 |
) |
|
$ |
- |
|
|
Cost of
sales |
|
|
(4,415 |
) |
|
|
- |
|
|
5,058 |
|
|
|
(643 |
) |
|
|
- |
|
|
Selling,
general and administrative |
|
|
(204 |
) |
|
|
- |
|
|
204 |
|
|
|
- |
|
|
|
- |
|
|
Restructuring costs |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Depreciation and amortization |
|
|
(140 |
) |
|
|
- |
|
|
140 |
|
|
|
- |
|
|
|
- |
|
|
Operating
income (loss) |
|
$ |
(231 |
) |
|
$ |
- |
|
$ |
231 |
|
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
presentation |
|
|
|
|
|
|
|
|
|
|
|
Net
sales |
|
$ |
106,083 |
|
|
$ |
31,569 |
|
$ |
58,630 |
|
|
$ |
(1,186 |
) |
|
$ |
195,096 |
|
|
Cost of
sales |
|
|
81,978 |
|
|
|
22,538 |
|
|
51,295 |
|
|
|
(864 |
) |
|
|
154,947 |
|
|
Selling,
general and administrative |
|
|
13,531 |
|
|
|
4,772 |
|
|
4,314 |
|
|
|
4,828 |
|
|
|
27,445 |
|
|
Restructuring costs |
|
|
566 |
|
|
|
- |
|
|
573 |
|
|
|
- |
|
|
|
1,139 |
|
|
Depreciation and amortization |
|
|
9,938 |
|
|
|
2,056 |
|
|
3,275 |
|
|
|
137 |
|
|
|
15,406 |
|
|
Operating
income (loss) |
|
$ |
70 |
|
|
$ |
2,203 |
|
$ |
(827 |
) |
|
$ |
(5,287 |
) |
|
$ |
(3,841 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QUANEX BUILDING PRODUCTS
CORPORATION |
SELECTED SEGMENT DATA |
(In thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
This table provides operating income (loss), EBITDA, and
Adjusted EBITDA by reportable segment. Non-operating expense
and income tax expense are not allocated to the reportable
segments. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NA EngineeredComponents |
|
EU EngineeredComponents |
|
NA CabinetComponents |
|
Unallocated Corp &
Other |
|
Total |
|
Three months
ended January 31, 2018 |
|
|
|
|
|
|
|
|
|
|
|
Net
sales |
|
$ |
102,727 |
|
|
$ |
33,996 |
|
|
$ |
55,922 |
|
|
$ |
(979 |
) |
|
$ |
191,666 |
|
|
Cost of
sales |
|
|
80,026 |
|
|
|
24,833 |
|
|
|
50,210 |
|
|
|
(629 |
) |
|
|
154,440 |
|
|
Selling,
general and administrative |
|
|
13,827 |
|
|
|
5,450 |
|
|
|
4,788 |
|
|
|
11 |
|
|
|
24,076 |
|
|
Restructuring charges |
|
|
251 |
|
|
|
- |
|
|
|
115 |
|
|
|
- |
|
|
|
366 |
|
|
Depreciation and amortization |
|
|
7,012 |
|
|
|
2,449 |
|
|
|
3,686 |
|
|
|
126 |
|
|
|
13,273 |
|
|
Operating
income (loss) |
|
|
1,611 |
|
|
|
1,264 |
|
|
|
(2,877 |
) |
|
|
(487 |
) |
|
|
(489 |
) |
|
Depreciation and amortization |
|
|
7,012 |
|
|
|
2,449 |
|
|
|
3,686 |
|
|
|
126 |
|
|
|
13,273 |
|
|
EBITDA |
|
|
8,623 |
|
|
|
3,713 |
|
|
|
809 |
|
|
|
(361 |
) |
|
|
12,784 |
|
|
Transaction related costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
12 |
|
|
|
12 |
|
|
Restructuring charges |
|
|
251 |
|
|
|
- |
|
|
|
115 |
|
|
|
- |
|
|
|
366 |
|
|
Adjusted
EBITDA |
|
$ |
8,874 |
|
|
$ |
3,713 |
|
|
$ |
924 |
|
|
$ |
(349 |
) |
|
$ |
13,162 |
|
|
Adjusted
EBITDA Margin % |
|
|
8.6 |
% |
|
|
10.9 |
% |
|
|
1.7 |
% |
|
|
|
|
6.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended January 31, 2017 |
|
|
|
|
|
|
|
|
|
|
|
Net
sales |
|
$ |
106,083 |
|
|
$ |
31,569 |
|
|
$ |
58,630 |
|
|
$ |
(1,186 |
) |
|
$ |
195,096 |
|
|
Cost of
sales |
|
|
81,978 |
|
|
|
22,538 |
|
|
|
51,295 |
|
|
|
(864 |
) |
|
|
154,947 |
|
|
Selling,
general and administrative |
|
|
13,531 |
|
|
|
4,772 |
|
|
|
4,314 |
|
|
|
4,828 |
|
|
|
27,445 |
|
|
Restructuring charges |
|
|
566 |
|
|
|
- |
|
|
|
573 |
|
|
|
- |
|
|
|
1,139 |
|
|
Depreciation and amortization |
|
|
9,938 |
|
|
|
2,056 |
|
|
|
3,275 |
|
|
|
137 |
|
|
|
15,406 |
|
|
Operating
income (loss) |
|
|
70 |
|
|
|
2,203 |
|
|
|
(827 |
) |
|
|
(5,287 |
) |
|
|
(3,841 |
) |
|
Depreciation and amortization |
|
|
9,938 |
|
|
|
2,056 |
|
|
|
3,275 |
|
|
|
137 |
|
|
|
15,406 |
|
|
EBITDA |
|
|
10,008 |
|
|
|
4,259 |
|
|
|
2,448 |
|
|
|
(5,150 |
) |
|
|
11,565 |
|
|
Transaction related costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
60 |
|
|
|
60 |
|
|
Mexico
restructuring, loss on sale of fixed assets |
|
|
- |
|
|
|
- |
|
|
|
257 |
|
|
|
- |
|
|
|
257 |
|
|
Restructuring charges |
|
|
566 |
|
|
|
- |
|
|
|
573 |
|
|
|
- |
|
|
|
1,139 |
|
|
PPA-Inventory Step-up |
|
|
- |
|
|
|
14 |
|
|
|
- |
|
|
|
- |
|
|
|
14 |
|
|
Adjusted
EBITDA |
|
$ |
10,574 |
|
|
$ |
4,273 |
|
|
$ |
3,278 |
|
|
$ |
(5,090 |
) |
|
$ |
13,035 |
|
|
Adjusted
EBITDA Margin % |
|
|
10.0 |
% |
|
|
13.5 |
% |
|
|
5.6 |
% |
|
|
|
|
6.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QUANEX BUILDING PRODUCTS
CORPORATION |
SALES ANALYSIS |
(In thousands) |
(Unaudited) |
|
|
|
|
|
|
|
Three Months Ended |
|
|
January 31, 2018 |
|
January 31, 2017
(1) |
NA
Engineered Components: |
|
|
|
|
United States -
fenestration (2) |
$ |
88,216 |
|
|
$ |
89,711 |
|
|
International -
fenestration |
|
7,008 |
|
|
|
6,341 |
|
|
United States -
non-fenestration |
|
4,147 |
|
|
|
5,831 |
|
|
International -
non-fenestration |
|
3,356 |
|
|
|
4,200 |
|
|
|
$ |
102,727 |
|
|
$ |
106,083 |
|
EU
Engineered Components
(3):
|
|
|
|
|
United States -
fenestration |
$ |
- |
|
|
$ |
35 |
|
|
International -
fenestration (4) |
|
29,869 |
|
|
|
28,905 |
|
|
International -
non-fenestration |
|
4,127 |
|
|
|
2,629 |
|
|
|
$ |
33,996 |
|
|
$ |
31,569 |
|
NA
Cabinet Components: |
|
|
|
|
United States -
fenestration |
$ |
3,445 |
|
|
$ |
3,332 |
|
|
United States -
non-fenestration (5)
|
|
52,006 |
|
|
|
54,691 |
|
|
International -
non-fenestration |
|
471 |
|
|
|
607 |
|
|
|
$ |
55,922 |
|
|
$ |
58,630 |
|
Unallocated Corporate & Other: |
|
|
|
|
Eliminations |
$ |
(979 |
) |
|
$ |
(1,186 |
) |
|
|
$ |
(979 |
) |
|
$ |
(1,186 |
) |
|
|
|
|
|
Net
Sales |
$ |
191,666 |
|
|
$ |
195,096 |
|
|
|
|
|
|
(1) Updated
to reflect transfer of operating facilities from NA Engineered
Components to NA Cabinet Components. See Reconciliation for
additional details. |
(2)
Reflects the loss of revenue associated with eliminated products of
$5.2 million for the three-months ended January 31, 2018. |
(3)
Reflects a gain of $3.1 million in revenue associated with foreign
currency exchange rate impacts. |
(4)
Reflects loss of revenue associated with eliminated products of
$2.4 million for the three-months ended January 31, 2018. |
(5)
Reflects the loss of revenue associated with eliminated products of
$2.4 million for the three-months ended January 31, 2018. |
|
|
|
|
|
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