Quanex Building Products Corporation (NYSE:NX)
(“Quanex” or the “Company”) today announced its results for the
three months ended January 31, 2020.
The Company reported the following selected
financial results:
|
|
Three Months Ended January 31, |
|
|
|
2020 |
|
2019 |
|
Net
Sales |
|
$196.6 |
|
$196.8 |
|
Gross
Margin |
|
$39.2 |
|
$38.3 |
|
Gross Margin % |
|
19.9% |
|
19.4% |
|
Net Income
(Loss) |
|
$0.0 |
|
($3.6) |
|
Diluted
EPS |
|
$0.00 |
|
($0.11) |
|
|
|
|
|
|
Adjusted Net
Income (Loss) |
|
$1.2 |
|
($2.3) |
|
Adjusted
Diluted EPS |
|
$0.04 |
|
($0.07) |
|
Adjusted
EBITDA |
|
$15.7 |
|
$12.1 |
|
Adjusted EBITDA Margin % |
|
8.0% |
|
6.1% |
|
|
|
|
|
|
Cash Used
for Operating Activities |
|
($3.7) |
|
($20.2) |
|
Free Cash
Flow |
|
($13.0) |
|
($26.5) |
|
(See Non-GAAP Terminology Definitions and Disclaimers section,
Non-GAAP Financial Measure Disclosure table Selected Segment Data
table and Free Cash Flow Reconciliation table for additional
information) |
|
George Wilson, President and Chief Executive
Officer, stated, “We had a good start to fiscal 2020 and we are
optimistic looking ahead into the spring selling season as leading
indicators for residential housing remain favorable. As such,
we are reaffirming our full year 2020 guidance of $865 million to
$885 million in net sales and $102 million to $110 million in
Adjusted EBITDA*.
“Demand for our fenestration components remained
strong in Europe and volumes were in line with our expectations in
North America. On a consolidated basis, we were able to
realize Adjusted EBITDA margin expansion of approximately 190 basis
points in the first quarter, led again by our European segment
where those margins improved by 100 basis points. Despite
lower volumes in our cabinet components segment, we realized
Adjusted EBITDA margin expansion of approximately 70 basis points,
mainly as a result of ongoing and continued operational efficiency
gains. Due to the typical seasonality in our business, we
were a net borrower during the first quarter, but our balance sheet
remains strong. In fact, as expected, free cash flow for the
quarter improved significantly compared to the same period of 2019
and we repurchased approximately $4.6 million in stock.” (See
Non-GAAP Terminology Definitions and Disclaimers section for
additional information)
*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. Certain items required for such a reconciliation are
outside of the Company’s control and/or cannot be reasonably
predicted or estimated, such as the provision for income taxes.
First Quarter 2020 Results
Summary
The slight decrease in net sales during the
first quarter of 2020 was driven by volume loss in the North
American Cabinet Components segment related to a strategy change
specific to one customer and the shift in the market from
semi-custom to stock cabinets. Volume losses in the North
American Cabinet Components segment were somewhat offset by above
market growth in the European Fenestration segment coupled with low
single-digit growth in the North American Fenestration
segment. (See Sales Analysis table for additional
information)
The increase in earnings was driven by a
concentrated focus on controlling costs, improved operating
leverage, operational efficiency gains and lower medical
expenses.
As of January 31, 2020, Quanex’s leverage ratio
of Net Debt to LTM Adjusted EBITDA was 1.4x. (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. Quanex
repurchased 269,862 shares of common stock for approximately $4.6
million at an average price of $17.19 per share during the three
months ended January 31, 2020. As of January 31, 2020,
approximately $13.8 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 31, 2020, to shareholders of record on March
17, 2020.
Conference Call and Webcast
Information
The Company has scheduled a conference call for
Friday, March 6, 2020, 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 2790569, 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, 2020. To access the
replay dial (855) 859-2056 for domestic callers and (404) 537-3406
for international callers, in both cases referencing conference
passcode 2790569.
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,
Senior Vice President, Chief Financial Officer & 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, certain severance charges,
gain/loss on the sale of certain fixed assets, restructuring
charges, asset impairment 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, certain
severance charges, gain/loss on the sale of certain fixed assets,
restructuring charges and asset impairment 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 forward-looking
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, 2019, 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, |
|
|
2020 |
|
2019 |
|
|
|
|
|
Net sales |
|
$ |
196,597 |
|
|
$ |
196,808 |
|
Cost of
sales |
|
|
157,427 |
|
|
|
158,557 |
|
Selling,
general and administrative |
|
|
24,132 |
|
|
|
28,026 |
|
Restructuring charges |
|
|
153 |
|
|
|
103 |
|
Depreciation
and amortization |
|
|
12,905 |
|
|
|
12,572 |
|
Operating
income (loss) |
|
|
1,980 |
|
|
|
(2,450 |
) |
Interest
expense |
|
|
(1,582 |
) |
|
|
(2,442 |
) |
Other,
net |
|
|
36 |
|
|
|
256 |
|
Income
(loss) before income taxes |
|
|
434 |
|
|
|
(4,636 |
) |
Income tax
(expense) benefit |
|
|
(424 |
) |
|
|
987 |
|
Net income
(loss) |
|
$ |
10 |
|
|
$ |
(3,649 |
) |
|
|
|
|
|
Earnings
(loss) per common share, basic |
|
$ |
0.00 |
|
|
$ |
(0.11 |
) |
Earnings
(loss) per common share, diluted |
|
$ |
0.00 |
|
|
$ |
(0.11 |
) |
|
|
|
|
|
Weighted
average common shares outstanding: |
|
|
|
|
Basic |
|
|
32,861 |
|
|
|
33,098 |
|
Diluted |
|
|
33,078 |
|
|
|
33,098 |
|
|
|
|
|
|
Cash
dividends per share |
|
$ |
0.08 |
|
|
$ |
0.08 |
|
|
|
|
|
|
QUANEX
BUILDING PRODUCTS CORPORATION |
CONDENSED
CONSOLIDATED BALANCE SHEETS |
(In thousands) |
(Unaudited) |
|
|
|
|
|
|
|
January 31, 2020 |
|
October 31, 2019 |
ASSETS |
|
|
|
|
Current
assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
23,114 |
|
|
$ |
30,868 |
|
Accounts receivable, net |
|
|
64,036 |
|
|
|
82,946 |
|
Inventories, net |
|
|
78,117 |
|
|
|
67,159 |
|
Prepaid and other current assets |
|
|
7,931 |
|
|
|
9,353 |
|
Total current assets |
|
|
173,198 |
|
|
|
190,326 |
|
Property,
plant and equipment, net |
|
|
192,148 |
|
|
|
193,600 |
|
Operating
Lease Right-of-Use Assets |
|
|
41,661 |
|
|
|
- |
|
Goodwill |
|
|
146,590 |
|
|
|
145,563 |
|
Intangible
assets, net |
|
|
104,338 |
|
|
|
107,297 |
|
Other
assets |
|
|
9,265 |
|
|
|
8,324 |
|
Total assets |
|
$ |
667,200 |
|
|
$ |
645,110 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts payable |
|
$ |
49,092 |
|
|
$ |
63,604 |
|
Accrued liabilities |
|
|
28,982 |
|
|
|
39,221 |
|
Income taxes payable |
|
|
5,265 |
|
|
|
6,183 |
|
Current maturities of long-term debt |
|
|
707 |
|
|
|
746 |
|
Current Operating Lease Liabilities |
|
|
6,532 |
|
|
|
- |
|
Total current liabilities |
|
|
90,578 |
|
|
|
109,754 |
|
Long-term
debt |
|
|
166,711 |
|
|
|
156,414 |
|
Noncurrent
Operating Lease Liabilities |
|
|
35,505 |
|
|
|
- |
|
Deferred
pension and postretirement benefits |
|
|
11,251 |
|
|
|
13,322 |
|
Deferred
income taxes |
|
|
19,741 |
|
|
|
19,363 |
|
Other
liabilities |
|
|
13,481 |
|
|
|
16,070 |
|
Total liabilities |
|
|
337,267 |
|
|
|
314,923 |
|
Stockholders’ equity: |
|
|
|
|
Common stock |
|
|
373 |
|
|
|
374 |
|
Additional paid-in-capital |
|
|
252,495 |
|
|
|
254,673 |
|
Retained earnings |
|
|
182,989 |
|
|
|
185,703 |
|
Accumulated other comprehensive loss |
|
|
(29,164 |
) |
|
|
(33,817 |
) |
Treasury stock at cost |
|
|
(76,760 |
) |
|
|
(76,746 |
) |
Total stockholders’ equity |
|
|
329,933 |
|
|
|
330,187 |
|
Total liabilities and stockholders' equity |
|
$ |
667,200 |
|
|
$ |
645,110 |
|
|
|
|
|
|
QUANEX
BUILDING PRODUCTS CORPORATION |
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOW |
(In thousands) |
(Unaudited) |
|
|
|
|
|
Three Months Ended January 31, |
|
2020 |
|
2019 |
Operating activities: |
|
|
|
Net income (loss) |
$ |
10 |
|
|
$ |
(3,649 |
) |
Adjustments to reconcile net income (loss) to cash used for
operating activities: |
|
|
|
Depreciation and amortization |
|
12,905 |
|
|
|
12,572 |
|
Stock-based compensation |
|
(239 |
) |
|
|
224 |
|
Deferred income tax |
|
(413 |
) |
|
|
(1,877 |
) |
Other, net |
|
1,096 |
|
|
|
785 |
|
Changes in assets and liabilities: |
|
|
|
Decrease in accounts receivable |
|
18,641 |
|
|
|
12,679 |
|
Increase in inventory |
|
(10,657 |
) |
|
|
(11,601 |
) |
Decrease in other current assets |
|
1,200 |
|
|
|
15 |
|
Decrease in accounts payable |
|
(12,063 |
) |
|
|
(11,738 |
) |
Decrease in accrued liabilities |
|
(12,519 |
) |
|
|
(18,850 |
) |
(Decrease) increase in income taxes payable |
|
(936 |
) |
|
|
422 |
|
Increase in deferred pension and postretirement benefits |
|
448 |
|
|
|
684 |
|
Decrease in other long-term liabilities |
|
(405 |
) |
|
|
(27 |
) |
Other, net |
|
(725 |
) |
|
|
118 |
|
Cash used
for operating activities |
|
(3,657 |
) |
|
|
(20,243 |
) |
Investing activities: |
|
|
|
Capital expenditures |
|
(9,312 |
) |
|
|
(6,271 |
) |
Proceeds from disposition of capital assets |
|
- |
|
|
|
74 |
|
Cash used
for investing activities |
|
(9,312 |
) |
|
|
(6,197 |
) |
Financing activities: |
|
|
|
Borrowings under credit facilities |
|
34,500 |
|
|
|
43,000 |
|
Repayments of credit facility borrowings |
|
(24,500 |
) |
|
|
(23,000 |
) |
Repayments of other long-term debt |
|
(285 |
) |
|
|
(454 |
) |
Common stock dividends paid |
|
(2,659 |
) |
|
|
(2,675 |
) |
Issuance of common stock |
|
3,075 |
|
|
|
27 |
|
Payroll tax paid to settle shares forfeited upon vesting of
stock |
|
(454 |
) |
|
|
(322 |
) |
Purchase of treasury stock |
|
(4,639 |
) |
|
|
(2,016 |
) |
Cash
provided by financing activities |
|
5,038 |
|
|
|
14,560 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
177 |
|
|
|
333 |
|
Decrease in
cash and cash equivalents |
|
(7,754 |
) |
|
|
(11,547 |
) |
Cash and
cash equivalents at beginning of period |
|
30,868 |
|
|
|
29,003 |
|
Cash and
cash equivalents at end of period |
$ |
23,114 |
|
|
$ |
17,456 |
|
|
|
|
|
QUANEX
BUILDING PRODUCTS CORPORATION |
FREE CASH
FLOW RECONCILIATION |
(In
thousands) |
(Unaudited) |
|
|
|
|
|
The following table reconciles the Company's calculation of Free
Cash Flow, a non-GAAP measure, to its most directly comparable GAAP
measure. The Company defines Free Cash Flow as cash provided by
operating activities less capital expenditures. |
|
|
|
|
|
|
|
Three Months Ended January 31, |
|
|
2020 |
|
2019 |
Cash used
for operating activities |
|
(3,657) |
|
(20,243) |
Capital
expenditures |
|
(9,312) |
|
(6,271) |
Free Cash
Flow |
|
($12,969) |
|
($26,514) |
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, 2020 |
|
|
January 31, 2019 |
|
|
|
NetIncome |
|
DilutedEPS |
|
|
NetLoss |
|
DilutedEPS |
|
Net income (loss) as reported |
|
$ |
10 |
|
|
$ |
0.00 |
|
|
|
$ |
(3,649 |
) |
|
$ |
(0.11 |
) |
|
Reconciling
items from below |
|
|
1,216 |
|
|
|
0.04 |
|
|
|
|
1,334 |
|
|
|
0.04 |
|
|
Adjusted net
income (loss) and adjusted EPS |
|
$ |
1,226 |
|
|
$ |
0.04 |
|
|
|
$ |
(2,315 |
) |
|
$ |
(0.07 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted EBITDA |
|
Three Months EndedJanuary 31, 2020 |
|
|
Three Months EndedJanuary 31, 2019 |
|
|
|
Reconciliation |
|
|
|
|
Reconciliation |
|
|
|
Net income
(loss) as reported |
|
$ |
10 |
|
|
|
|
|
$ |
(3,649 |
) |
|
|
|
Income tax
expense (benefit) |
|
|
424 |
|
|
|
|
|
|
(987 |
) |
|
|
|
Other,
net |
|
|
(36 |
) |
|
|
|
|
|
(256 |
) |
|
|
|
Interest
expense |
|
|
1,582 |
|
|
|
|
|
|
2,442 |
|
|
|
|
Depreciation
and amortization |
|
|
12,905 |
|
|
|
|
|
|
12,572 |
|
|
|
|
EBITDA |
|
|
14,885 |
|
|
|
|
|
|
10,122 |
|
|
|
|
Reconciling
items from below |
|
|
771 |
|
|
|
|
|
|
1,971 |
|
|
|
|
Adjusted
EBITDA |
|
$ |
15,656 |
|
|
|
|
|
$ |
12,093 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling Items |
|
Three Months EndedJanuary 31, 2020 |
|
|
Three Months EndedJanuary 31, 2019 |
|
|
|
IncomeStatement |
|
ReconcilingItems |
|
|
IncomeStatement |
|
ReconcilingItems |
|
Net
sales |
|
$ |
196,597 |
|
|
$ |
- |
|
|
|
$ |
196,808 |
|
|
$ |
- |
|
|
Cost of
sales |
|
|
157,427 |
|
|
|
- |
|
|
|
|
158,557 |
|
|
|
- |
|
|
Selling,
general and administrative |
|
|
24,132 |
|
|
|
(618 |
) |
(1) |
|
|
28,026 |
|
|
|
(1,868 |
) |
(1) |
Restructuring charges |
|
|
153 |
|
|
|
(153 |
) |
(2) |
|
|
103 |
|
|
|
(103 |
) |
(2) |
EBITDA |
|
|
14,885 |
|
|
|
771 |
|
|
|
|
10,122 |
|
|
|
1,971 |
|
|
Depreciation
and amortization |
|
|
12,905 |
|
|
|
(731 |
) |
(3) |
|
|
12,572 |
|
|
|
- |
|
|
Operating
income (loss) |
|
|
1,980 |
|
|
|
1,502 |
|
|
|
|
(2,450 |
) |
|
|
1,971 |
|
|
Interest
expense |
|
|
(1,582 |
) |
|
|
- |
|
|
|
|
(2,442 |
) |
|
|
- |
|
|
Other,
net |
|
|
36 |
|
|
|
60 |
|
(4) |
|
|
256 |
|
|
|
21 |
|
(4) |
Income
(loss) before income taxes |
|
|
434 |
|
|
|
1,562 |
|
|
|
|
(4,636 |
) |
|
|
1,992 |
|
|
Income tax
(expense) benefit |
|
|
(424 |
) |
|
|
(346 |
) |
(5) |
|
|
987 |
|
|
|
(658 |
) |
(5) |
Net income
(loss) |
|
$ |
10 |
|
|
$ |
1,216 |
|
|
|
$ |
(3,649 |
) |
|
$ |
1,334 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings (loss) per share |
|
$ |
0.00 |
|
|
|
|
|
$ |
(0.11 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Transaction and
advisory fees, $0.6 million related to executive severance charges
in 2020, and $1.2 million of severance charges related to a
reorganization in 2019. |
(2) Restructuring
charges relate to the closure of manufacturing plant
facilities. |
(3) Accelerated
depreciation and amortization for equipment replacement in the
North American Fenestration segment and in 2020, accelerated
depreciation related to the closure of a North American Cabinet
Components plant. |
(4) Foreign currency
transaction losses. |
(5) Impact on a with
and without basis, and in 2019, an adjustment of $0.2 million
related to the Tax Cuts and Jobs Act. |
|
|
|
|
|
|
|
|
|
|
|
QUANEX
BUILDING PRODUCTS CORPORATION |
SELECTED
SEGMENT DATA |
(In thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
This table provides
gross margin, operating (loss) income, EBITDA, and Adjusted EBITDA
by reportable segment. Non-operating expense and income tax expense
are not allocated to the reportable segments. |
|
|
|
NA Fenestration |
|
EU Fenestration |
|
NA CabinetComponents |
|
UnallocatedCorp & Other |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
Three months ended January 31, 2020 |
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
110,452 |
|
|
$ |
36,766 |
|
|
$ |
50,044 |
|
|
$ |
(665 |
) |
|
$ |
196,597 |
|
Cost of sales |
|
|
88,696 |
|
|
|
25,244 |
|
|
|
43,842 |
|
|
|
(355 |
) |
|
|
157,427 |
|
Gross Margin |
|
|
21,756 |
|
|
|
11,522 |
|
|
|
6,202 |
|
|
|
(310 |
) |
|
|
39,170 |
|
Gross Margin % |
|
|
19.7 |
% |
|
|
31.3 |
% |
|
|
12.4 |
% |
|
|
|
|
19.9 |
% |
Selling, general and administrative |
|
|
13,055 |
|
|
|
5,950 |
|
|
|
4,853 |
|
|
|
274 |
|
|
|
24,132 |
|
Restructuring charges |
|
|
91 |
|
|
|
- |
|
|
|
62 |
|
|
|
- |
|
|
|
153 |
|
Depreciation and amortization |
|
|
6,979 |
|
|
|
2,408 |
|
|
|
3,402 |
|
|
|
116 |
|
|
|
12,905 |
|
Operating income (loss) |
|
|
1,631 |
|
|
|
3,164 |
|
|
|
(2,115 |
) |
|
|
(700 |
) |
|
|
1,980 |
|
Depreciation and amortization |
|
|
6,979 |
|
|
|
2,408 |
|
|
|
3,402 |
|
|
|
116 |
|
|
|
12,905 |
|
EBITDA |
|
|
8,610 |
|
|
|
5,572 |
|
|
|
1,287 |
|
|
|
(584 |
) |
|
|
14,885 |
|
Transaction and advisory fees |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
55 |
|
|
|
55 |
|
Executive severance charges |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
563 |
|
|
|
563 |
|
Restructuring charges |
|
|
91 |
|
|
|
- |
|
|
|
62 |
|
|
|
- |
|
|
|
153 |
|
Adjusted EBITDA |
|
$ |
8,701 |
|
|
$ |
5,572 |
|
|
$ |
1,349 |
|
|
$ |
34 |
|
|
$ |
15,656 |
|
Adjusted EBITDA Margin % |
|
|
7.9 |
% |
|
|
15.2 |
% |
|
|
2.7 |
% |
|
|
|
|
8.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
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 |
|
Gross Margin |
|
|
21,896 |
|
|
|
10,728 |
|
|
|
5,997 |
|
|
|
(370 |
) |
|
|
38,251 |
|
Gross Margin % |
|
|
20.1 |
% |
|
|
30.4 |
% |
|
|
11.1 |
% |
|
|
|
|
19.4 |
% |
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 |
% |
|
|
|
|
|
|
|
|
|
|
|
QUANEX
BUILDING PRODUCTS CORPORATION |
SALES
ANALYSIS |
(In thousands) |
(Unaudited) |
|
|
|
|
|
Three Months
Ended |
|
January 31, 2020 |
|
January 31, 2019 |
|
|
|
|
NA Fenestration: |
|
|
|
United States - fenestration |
$ |
96,847 |
|
|
$ |
93,884 |
|
International - fenestration |
|
6,434 |
|
|
|
8,207 |
|
United States - non-fenestration |
|
4,563 |
|
|
|
3,505 |
|
International - non-fenestration |
|
2,608 |
|
|
|
3,453 |
|
|
$ |
110,452 |
|
|
$ |
109,049 |
|
EU Fenestration
(1): |
|
|
|
International - fenestration |
$ |
30,964 |
|
|
$ |
30,724 |
|
International - non-fenestration |
|
5,802 |
|
|
|
4,530 |
|
|
$ |
36,766 |
|
|
$ |
35,254 |
|
NA Cabinet Components: |
|
|
|
United States - fenestration |
$ |
3,147 |
|
|
$ |
3,352 |
|
United States - non-fenestration |
|
46,450 |
|
|
|
49,962 |
|
International - non-fenestration |
|
447 |
|
|
|
539 |
|
|
$ |
50,044 |
|
|
$ |
53,853 |
|
Unallocated Corporate & Other: |
|
|
|
Eliminations |
$ |
(665 |
) |
|
$ |
(1,348 |
) |
|
$ |
(665 |
) |
|
$ |
(1,348 |
) |
|
|
|
|
Net Sales |
$ |
196,597 |
|
|
$ |
196,808 |
|
|
|
|
|
(1) Reflects increase of $0.2 million in revenue associated with
foreign currency exchange rate impacts for the three months ended
January 31, 2020. |
|
|
|
|
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