Above Market Growth of >6% in NA
Fenestration SegmentHealthy Underlying Growth of
>10% in EU Fenestration SegmentSignificant
Margin Expansion in EU Fenestration
SegmentTargeting Year-End Fiscal 2019 Leverage
Ratio of 1.5x - 2.0x
Quanex Building Products Corporation (NYSE:NX)
(“Quanex” or the “Company”) today announced its results for the
three months ended January 31, 2019.
Bill Griffiths, Chairman, President and Chief
Executive Officer, commented, “Overall, we are encouraged by the
solid revenue growth we achieved during the first quarter in our
North American and European Fenestration segments, especially given
the seasonality of our business and public commentary related to
the residential housing industry in the U.S. and Brexit in
Europe. As a reminder, our consolidated revenue stream is
weighted approximately 70% to the repair and remodel segment of the
market, which we believe should grow at a higher rate than new
construction for the foreseeable future.
“We were able to realize margin expansion of
almost 300 basis points in our European Fenestration segment during
the quarter, mainly due to pricing finally catching up to
inflationary pressures that impacted results for much of
2018. Results were softer than expected in our North American
Cabinet Components segment, which was largely the result of
extended customer downtime around the holidays and unplanned
downtime related to severe weather in January. For the full
year, we continue to expect margin expansion on a consolidated
basis as volume ramps, operating efficiency gains improve and price
increases continue to take hold as the year progresses. As is
typical for our business, we were a net borrower in the first
quarter, predominantly due to incentive payouts and share
repurchases. Inventories increased as expected in preparation
for the spring selling season as well as some Brexit related
stockpiling in Europe. As a result, our leverage ratio
increased, but we are confident in our ability to generate strong
free cash flow in the second half and expect to continue
deleveraging the balance sheet and buying back stock. Despite
depressed equity valuations in the residential housing industry,
the fundamentals for our business remain positive, and as such we
are comfortable reaffirming our full year 2019 guidance of 4% to 6%
revenue growth and Adjusted EBITDA of $97 million to $107
million.” (See Forward Looking Statements and Non-GAAP
Terminology Definitions and Disclaimers sections for additional
information)
First Quarter 2019 Results
Summary
The Company reported the following selected
financial results:
|
|
Three Months Ended January 31, |
|
|
2019 |
|
2018 |
Net Sales |
|
$196.8 |
|
$191.7 |
Net (Loss) Income |
|
($3.6) |
|
$4.9 |
Diluted EPS |
|
($0.11) |
|
$0.14 |
|
|
|
|
|
Adjusted Net Loss |
|
($2.3) |
|
($1.5) |
Adjusted Diluted
EPS |
|
($0.07) |
|
($0.04) |
Adjusted EBITDA |
|
$12.1 |
|
$13.1 |
(See
Non-GAAP Terminology Definitions and Disclaimers section, Non-GAAP
Financial Measure Disclosure table and Selected Segment Data table
for additional information) |
The increase in net sales during the first quarter of 2019 was
mainly the result of above market growth in the North American
Fenestration segment combined with price increases related to raw
material inflation recovery. (See Sales Analysis table for
additional information)
The decrease in reported earnings was largely
due to a $6.5 million, or $0.19 per diluted share, net tax benefit
for the three months ended January 31, 2018, as a result of the
enactment of the Tax Cuts and Jobs Act on December 22, 2017.
The decrease in adjusted earnings was primarily attributable to an
increase in selling, general and administrative expense driven by
elevated medical costs.
Quanex remains focused on generating Free Cash
Flow and expects to continue paying down debt and opportunistically
repurchase stock. As of January 31, 2019, the Company’s
leverage ratio of Net Debt to LTM Adjusted EBITDA was 2.4x.
Quanex expects to end fiscal 2019 with a leverage ratio between
1.5x and 2.0x. (See Non-GAAP Terminology Definitions and
Disclaimers section for additional information)
Share Repurchases
The Company’s Board of Directors authorized a
$60 million share repurchase program in September of 2018.
Repurchases under this program will be made in open market
transactions or privately negotiated transactions, subject to
market conditions, applicable legal requirements and other relevant
factors. The program does not have an expiration date or a
limit on the number of shares that may be repurchased. During
the three months ended January 31, 2019, Quanex repurchased 144,030
shares of common stock for approximately $2 million at an average
price of $13.98 per share. As of January 31, 2019,
approximately $26 million remained under the existing share
repurchase authorization.
Recent Events
The Company’s Board of Directors declared a
quarterly cash dividend of $0.08 per share on Quanex’s common
stock, payable March 29, 2019, to shareholders of record on March
18, 2019.
Conference Call and Webcast
Information
The Company has scheduled a conference call for
Wednesday, March 6, 2019, 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 8465673, 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, 2019. To access
the replay dial (855) 859-2056 for domestic callers and (404)
537-3406 for international callers, in both cases referencing
conference passcode 8465673.
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. When Quanex provides expectations for
Adjusted EBITDA on a forward-looking basis, a reconciliation of the
differences between the non-GAAP expectations and corresponding
GAAP measures is generally not available without unreasonable
effort. The Company is not able to provide reconciliations of
Adjusted EBITDA to GAAP financial measures because certain items
required for such reconciliations are outside of Quanex’s control
and/or cannot be reasonably predicted, such as the provision for
income taxes. 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 the Company believes is
useful to investors and financial analysts in evaluating Quanex’s
leverage. In addition, with certain limited adjustments, this
leverage ratio is the basis for a key covenant in the Company’s
credit agreement. Free Cash Flow is a non-GAAP measure
calculated using cash provided by operating activities less capital
expenditures. Free Cash Flow is measured before application
of certain contractual commitments (including capital lease
obligations), and accordingly is not a true measure of Quanex’s
residual cash flow available for discretionary 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, 2018, 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
CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF
INCOME (LOSS)(In thousands, except per share
data)(Unaudited)
|
|
Three Months Ended January 31, |
|
|
|
2019 |
|
|
2018 (1) |
|
|
|
|
|
Net sales |
|
$ |
196,808 |
|
|
$ |
191,666 |
|
Cost of sales |
|
|
158,557 |
|
|
|
154,521 |
|
Selling, general and
administrative |
|
|
28,026 |
|
|
|
24,102 |
|
Restructuring
charges |
|
|
103 |
|
|
|
366 |
|
Depreciation and
amortization |
|
|
12,572 |
|
|
|
13,273 |
|
Operating loss |
|
|
(2,450 |
) |
|
|
(596 |
) |
Interest expense |
|
|
(2,442 |
) |
|
|
(2,441 |
) |
Other, net |
|
|
256 |
|
|
|
424 |
|
Loss before income
taxes |
|
|
(4,636 |
) |
|
|
(2,613 |
) |
Income tax benefit |
|
|
987 |
|
|
|
7,560 |
|
Net (loss) income |
|
$ |
(3,649 |
) |
|
$ |
4,947 |
|
|
|
|
|
|
(Loss) income per
common share, basic |
|
$ |
(0.11 |
) |
|
$ |
0.14 |
|
(Loss) income per
common share, diluted |
|
$ |
(0.11 |
) |
|
$ |
0.14 |
|
|
|
|
|
|
Weighted average common
shares outstanding: |
|
|
|
|
Basic |
|
|
33,098 |
|
|
|
34,662 |
|
Diluted |
|
|
33,098 |
|
|
|
35,286 |
|
|
|
|
|
|
Cash dividends per
share |
|
$ |
0.08 |
|
|
$ |
0.04 |
|
|
|
|
|
|
(1)
Updated to reflect adoption of ASU 2017-07. |
|
|
|
|
|
|
|
|
|
QUANEX BUILDING PRODUCTS
CORPORATIONCONDENSED CONSOLIDATED BALANCE
SHEETS(In thousands)(Unaudited)
|
|
January 31, 2019 |
|
October 31, 2018 |
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash
equivalents |
|
$ |
17,456 |
|
|
$ |
29,003 |
|
Accounts
receivable, net |
|
|
71,678 |
|
|
|
84,014 |
|
Inventories, net |
|
|
81,443 |
|
|
|
69,365 |
|
Prepaid
and other current assets |
|
|
7,282 |
|
|
|
7,296 |
|
Total
current assets |
|
|
177,859 |
|
|
|
189,678 |
|
Property, plant and
equipment, net |
|
|
198,717 |
|
|
|
201,370 |
|
Goodwill |
|
|
221,225 |
|
|
|
219,627 |
|
Intangible assets,
net |
|
|
119,053 |
|
|
|
121,919 |
|
Other assets |
|
|
8,886 |
|
|
|
9,255 |
|
Total
assets |
|
$ |
725,740 |
|
|
$ |
741,849 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts
payable |
|
$ |
39,500 |
|
|
$ |
52,389 |
|
Accrued
liabilities |
|
|
27,789 |
|
|
|
45,968 |
|
Income
taxes payable |
|
|
3,228 |
|
|
|
2,780 |
|
Current
maturities of long-term debt |
|
|
1,134 |
|
|
|
1,224 |
|
Total
current liabilities |
|
|
71,651 |
|
|
|
102,361 |
|
Long-term debt |
|
|
229,550 |
|
|
|
209,332 |
|
Deferred pension and
postretirement benefits |
|
|
4,913 |
|
|
|
4,218 |
|
Deferred income
taxes |
|
|
15,549 |
|
|
|
17,215 |
|
Other liabilities |
|
|
14,274 |
|
|
|
14,571 |
|
Total
liabilities |
|
|
335,937 |
|
|
|
347,697 |
|
Stockholders’
equity: |
|
|
|
|
Common
stock |
|
|
374 |
|
|
|
374 |
|
Additional paid-in-capital |
|
|
252,931 |
|
|
|
254,678 |
|
Retained
earnings |
|
|
235,979 |
|
|
|
242,834 |
|
Accumulated other comprehensive loss |
|
|
(26,643 |
) |
|
|
(30,705 |
) |
Treasury
stock at cost |
|
|
(72,838 |
) |
|
|
(73,029 |
) |
Total
stockholders’ equity |
|
|
389,803 |
|
|
|
394,152 |
|
Total
liabilities and stockholders' equity |
|
$ |
725,740 |
|
|
$ |
741,849 |
|
|
|
|
|
|
|
|
|
|
|
QUANEX BUILDING PRODUCTS
CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOW(In thousands)(Unaudited)
|
|
Three Months Ended January 31, |
|
|
|
2019 |
|
|
|
2018 |
|
Operating activities: |
|
|
|
|
Net
(loss) income |
|
$ |
(3,649 |
) |
|
$ |
4,947 |
|
Adjustments to reconcile net (loss) income to cash (used for)
provided by operating activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
12,572 |
|
|
|
13,273 |
|
Stock-based compensation |
|
|
224 |
|
|
|
580 |
|
Deferred
income tax |
|
|
(1,877 |
) |
|
|
(8,483 |
) |
Other,
net |
|
|
785 |
|
|
|
130 |
|
Changes
in assets and liabilities: |
|
|
|
|
Decrease
in accounts receivable |
|
|
12,679 |
|
|
|
18,378 |
|
Increase
in inventory |
|
|
(11,601 |
) |
|
|
(6,926 |
) |
Decrease
in other current assets |
|
|
15 |
|
|
|
73 |
|
Decrease
in accounts payable |
|
|
(11,738 |
) |
|
|
(4,523 |
) |
Decrease
in accrued liabilities |
|
|
(18,850 |
) |
|
|
(10,629 |
) |
Increase
in income taxes payable |
|
|
422 |
|
|
|
344 |
|
Increase
in deferred pension and postretirement benefits |
|
|
684 |
|
|
|
860 |
|
(Decrease) Increase in other long-term liabilities |
|
|
(27 |
) |
|
|
181 |
|
Other,
net |
|
|
118 |
|
|
|
(13 |
) |
Cash (used for)
provided by operating activities |
|
|
(20,243 |
) |
|
|
8,192 |
|
Investing activities: |
|
|
|
|
Capital
expenditures |
|
|
(6,271 |
) |
|
|
(7,811 |
) |
Proceeds
from disposition of capital assets |
|
|
74 |
|
|
|
65 |
|
Cash used for investing
activities |
|
|
(6,197 |
) |
|
|
(7,746 |
) |
Financing activities: |
|
|
|
|
Borrowings under credit facilities |
|
|
43,000 |
|
|
|
9,500 |
|
Repayments of credit facility borrowings |
|
|
(23,000 |
) |
|
|
(13,750 |
) |
Repayments of other long-term debt |
|
|
(454 |
) |
|
|
(255 |
) |
Common
stock dividends paid |
|
|
(2,675 |
) |
|
|
(1,397 |
) |
Issuance
of common stock |
|
|
27 |
|
|
|
2,231 |
|
Payroll
tax paid to settle shares forfeited upon vesting of stock |
|
|
(322 |
) |
|
|
(706 |
) |
Purchase
of treasury stock |
|
|
(2,016 |
) |
|
|
- |
|
Cash provided by (used
for) financing activities |
|
|
14,560 |
|
|
|
(4,377 |
) |
Effect of
exchange rate changes on cash and cash equivalents |
|
|
333 |
|
|
|
233 |
|
Decrease in cash and
cash equivalents |
|
|
(11,547 |
) |
|
|
(3,698 |
) |
Cash and cash
equivalents at beginning of period |
|
|
29,003 |
|
|
|
17,455 |
|
Cash and cash
equivalents at end of period |
|
$ |
17,456 |
|
|
$ |
13,757 |
|
|
|
|
|
|
|
|
|
|
|
QUANEX BUILDING PRODUCTS
CORPORATIONNON-GAAP FINANCIAL MEASURE
DISCLOSURE(In thousands, except per share
data)(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Three Months Ended |
|
Reconciliation
of Adjusted Net (Loss) Income and Adjusted EPS |
|
January 31, 2019 |
|
|
January 31, 2018 |
|
|
|
Net Income |
|
Diluted EPS |
|
|
Net Income |
|
Diluted EPS |
|
Net (loss) income as
reported |
|
$ |
(3,649 |
) |
|
$ |
(0.11 |
) |
|
|
$ |
4,947 |
|
|
$ |
0.14 |
|
|
Reconciling items from below |
|
|
1,334 |
|
|
|
0.04 |
|
|
|
|
(6,485 |
) |
|
|
(0.18 |
) |
|
Adjusted
net loss and adjusted EPS |
|
$ |
(2,315 |
) |
|
$ |
(0.07 |
) |
|
|
$ |
(1,538 |
) |
|
$ |
(0.04 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of Adjusted EBITDA |
|
Three Months Ended January 31,
2019 |
|
|
Three Months Ended January 31,
2018 |
|
|
|
Reconciliation |
|
|
|
|
Reconciliation |
|
|
|
Net
income as reported |
|
$ |
(3,649 |
) |
|
|
|
|
$ |
4,947 |
|
|
|
|
Income
tax benefit |
|
|
(987 |
) |
|
|
|
|
|
(7,560 |
) |
|
|
|
Other,
net |
|
|
(256 |
) |
|
|
|
|
|
(424 |
) |
|
|
|
Interest
expense |
|
|
2,442 |
|
|
|
|
|
|
2,441 |
|
|
|
|
Depreciation and amortization |
|
|
12,572 |
|
|
|
|
|
|
13,273 |
|
|
|
|
EBITDA |
|
|
10,122 |
|
|
|
|
|
|
12,677 |
|
|
|
|
Reconciling items from below |
|
|
1,971 |
|
|
|
|
|
|
378 |
|
|
|
|
Adjusted
EBITDA |
|
$ |
12,093 |
|
|
|
|
|
$ |
13,055 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling
Items |
|
Three Months Ended January 31,
2019 |
|
|
Three Months Ended January 31,
2018 |
|
|
|
Income Statement |
|
Reconciling
Items |
|
|
Income Statement |
|
Reconciling
Items |
|
Net
sales |
|
$ |
196,808 |
|
|
$ |
- |
|
|
|
$ |
191,666 |
|
|
$ |
- |
|
|
Cost of
sales |
|
|
158,557 |
|
|
|
- |
|
|
|
|
154,521 |
|
|
|
- |
|
|
Selling,
general and administrative |
|
|
28,026 |
|
|
|
(1,868 |
) |
(1) |
|
|
24,102 |
|
|
|
(12 |
) |
(1) |
Restructuring charges |
|
|
103 |
|
|
|
(103 |
) |
(2) |
|
|
366 |
|
|
|
(366 |
) |
(2) |
EBITDA |
|
|
10,122 |
|
|
|
1,971 |
|
|
|
|
12,677 |
|
|
|
378 |
|
|
Depreciation and amortization |
|
|
12,572 |
|
|
|
- |
|
|
|
|
13,273 |
|
|
|
- |
|
|
Operating loss |
|
|
(2,450 |
) |
|
|
1,971 |
|
|
|
|
(596 |
) |
|
|
378 |
|
|
Interest
expense |
|
|
(2,442 |
) |
|
|
- |
|
|
|
|
(2,441 |
) |
|
|
- |
|
|
Other,
net |
|
|
256 |
|
|
|
21 |
|
(3) |
|
|
424 |
|
|
|
(299 |
) |
(3) |
Loss
before income taxes |
|
|
(4,636 |
) |
|
|
1,992 |
|
|
|
|
(2,613 |
) |
|
|
79 |
|
|
Income
tax benefit |
|
|
987 |
|
|
|
(658 |
) |
(4) |
|
|
7,560 |
|
|
|
(6,564 |
) |
(4) |
Net
(loss) income |
|
$ |
(3,649 |
) |
|
$ |
1,334 |
|
|
|
$ |
4,947 |
|
|
$ |
(6,485 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
(loss) earnings per share |
|
$ |
(0.11 |
) |
|
|
|
|
$ |
0.14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Transaction and advisory fees, and in 2019, $1.2 million of
severance related to a reorganization. |
|
|
|
|
|
|
(2)
Restructuring charges relate to the closure of several
manufacturing plant facilities. |
|
|
|
|
|
|
|
|
(3) Foreign currency
transaction losses (gains). |
|
|
|
|
|
|
|
|
|
|
(4) Impact
on a with and without basis. January 31, 2019 and 2018
include $0.2 million and $6.5 million, respectively, adjustment
related to the Tax Cuts and Jobs Act. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QUANEX BUILDING PRODUCTS
CORPORATIONSELECTED 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 Fenestration
(1) |
|
EU Fenestration
(1) |
|
NA Cabinet Components |
|
Unallocated Corp &
Other |
|
Total |
Three months
ended January 31, 2019 |
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
109,049 |
|
|
$ |
35,254 |
|
|
$ |
53,853 |
|
|
$ |
(1,348 |
) |
|
$ |
196,808 |
|
Cost of
sales |
|
|
87,153 |
|
|
|
24,526 |
|
|
|
47,856 |
|
|
|
(978 |
) |
|
|
158,557 |
|
Selling,
general and administrative |
|
|
13,077 |
|
|
|
5,711 |
|
|
|
4,925 |
|
|
|
4,313 |
|
|
|
28,026 |
|
Restructuring charges |
|
|
103 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
103 |
|
Depreciation and amortization |
|
|
6,873 |
|
|
|
2,236 |
|
|
|
3,339 |
|
|
|
124 |
|
|
|
12,572 |
|
Operating
income (loss) |
|
|
1,843 |
|
|
|
2,781 |
|
|
|
(2,267 |
) |
|
|
(4,807 |
) |
|
|
(2,450 |
) |
Depreciation and amortization |
|
|
6,873 |
|
|
|
2,236 |
|
|
|
3,339 |
|
|
|
124 |
|
|
|
12,572 |
|
EBITDA |
|
|
8,716 |
|
|
|
5,017 |
|
|
|
1,072 |
|
|
|
(4,683 |
) |
|
|
10,122 |
|
Transaction and advisory fees |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
717 |
|
|
|
717 |
|
Severance
related to reorganization |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,151 |
|
|
|
1,151 |
|
Restructuring charges |
|
|
103 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
103 |
|
Adjusted
EBITDA |
|
$ |
8,819 |
|
|
$ |
5,017 |
|
|
$ |
1,072 |
|
|
$ |
(2,815 |
) |
|
$ |
12,093 |
|
Adjusted
EBITDA Margin % |
|
|
8.1 |
% |
|
|
14.2 |
% |
|
|
2.0 |
% |
|
|
|
|
6.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
Three months
ended January 31, 2018 (2) |
|
|
|
|
|
|
|
|
|
|
Net
sales |
|
$ |
102,727 |
|
|
$ |
33,996 |
|
|
$ |
55,922 |
|
|
$ |
(979 |
) |
|
$ |
191,666 |
|
Cost of
sales |
|
|
80,098 |
|
|
|
24,833 |
|
|
|
50,219 |
|
|
|
(629 |
) |
|
|
154,521 |
|
Selling,
general and administrative (3) |
|
|
13,508 |
|
|
|
5,327 |
|
|
|
4,635 |
|
|
|
632 |
|
|
|
24,102 |
|
Restructuring charges |
|
|
251 |
|
|
|
- |
|
|
|
115 |
|
|
|
- |
|
|
|
366 |
|
Depreciation and amortization |
|
|
7,012 |
|
|
|
2,449 |
|
|
|
3,686 |
|
|
|
126 |
|
|
|
13,273 |
|
Operating
income (loss) |
|
|
1,858 |
|
|
|
1,387 |
|
|
|
(2,733 |
) |
|
|
(1,108 |
) |
|
|
(596 |
) |
Depreciation and amortization |
|
|
7,012 |
|
|
|
2,449 |
|
|
|
3,686 |
|
|
|
126 |
|
|
|
13,273 |
|
EBITDA |
|
|
8,870 |
|
|
|
3,836 |
|
|
|
953 |
|
|
|
(982 |
) |
|
|
12,677 |
|
Transaction and advisory fees |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
12 |
|
|
|
12 |
|
Restructuring charges |
|
|
251 |
|
|
|
- |
|
|
|
115 |
|
|
|
- |
|
|
|
366 |
|
Adjusted
EBITDA |
|
$ |
9,121 |
|
|
$ |
3,836 |
|
|
$ |
1,068 |
|
|
$ |
(970 |
) |
|
$ |
13,055 |
|
Adjusted
EBITDA Margin % |
|
|
8.9 |
% |
|
|
11.3 |
% |
|
|
1.9 |
% |
|
|
|
|
6.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
(1) NA
Fenestration and EU Fenestration were previously named "NA
Engineered Components" and "EU Engineered Components,"
respectively. |
|
|
|
|
(2) Updated to reflect
the adoption of ASU 2017-07. |
|
|
|
|
|
|
|
|
|
|
(3)
Updated to reflect a reduction in corporate allocations of $0.6
million due to a change in allocation methodology during the fourth
quarter of 2018. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QUANEX BUILDING PRODUCTS
CORPORATIONSALES ANALYSIS(In
thousands)(Unaudited)
|
|
Three Months Ended |
|
|
January 31, 2019 |
|
January 31, 2018 |
|
|
|
|
|
NA
Fenestration: |
|
|
|
|
United States -
fenestration |
$ |
93,884 |
|
|
$ |
88,216 |
|
|
International - fenestration |
|
8,207 |
|
|
|
7,008 |
|
|
United
States - non-fenestration |
|
3,505 |
|
|
|
4,147 |
|
|
International - non-fenestration |
|
3,453 |
|
|
|
3,356 |
|
|
|
$ |
109,049 |
|
|
$ |
102,727 |
|
EU
Fenestration (1): |
|
|
|
|
International - fenestration |
$ |
30,724 |
|
|
$ |
29,869 |
|
|
International - non-fenestration |
|
4,530 |
|
|
|
4,127 |
|
|
|
$ |
35,254 |
|
|
$ |
33,996 |
|
NA
Cabinet Components: |
|
|
|
|
United
States - fenestration |
$ |
3,352 |
|
|
$ |
3,445 |
|
|
United
States - non-fenestration |
|
49,962 |
|
|
|
52,006 |
|
|
International - non-fenestration |
|
539 |
|
|
|
471 |
|
|
|
$ |
53,853 |
|
|
$ |
55,922 |
|
Unallocated Corporate & Other: |
|
|
|
|
Eliminations |
$ |
(1,348 |
) |
|
$ |
(979 |
) |
|
|
$ |
(1,348 |
) |
|
$ |
(979 |
) |
|
|
|
|
|
Net
Sales |
$ |
196,808 |
|
|
$ |
191,666 |
|
|
|
|
|
|
(1) Reflects a
$2.1 million reduction in revenue associated with foreign currency
exchange rate impacts for the three months ended January 31,
2019. |
|
|
|
|
|
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