Quanex Building Products Provides COVID-19 Update
April 06 2020 - 8:00AM
Quanex Building Products Corporation (NYSE: NX) (“Quanex” or the
“Company”) today provided an update in response to the COVID-19
pandemic.
George Wilson, President and Chief Executive
Officer, stated, “First and foremost, the health and safety of our
employees and communities is our primary focus. We are taking
appropriate safety measures throughout our plants, and following
applicable CDC and governmental guidelines, in an effort to protect
our employees and their families while continuing to service our
customers and provide vital components for important construction
projects around the world. All of our manufacturing facilities are
currently operating in compliance with applicable regulatory
orders, other than our two facilities in England which are
currently closed in accordance with the United Kingdom’s shutdown
order. It is difficult to predict how this pandemic will ultimately
impact our Company and our end markets, so we believe it is prudent
to withdraw our prior guidance for 2020. That said, our balance
sheet remains strong and we have a highly variable cost structure,
which gives us the ability to rapidly reduce costs as demand
dictates. As such, we feel our business is well-equipped to handle
the challenges ahead and we are confident that we will weather this
storm.”
Liquidity Update
As a precautionary measure, and in an effort to
increase its cash position and preserve financial flexibility due
to uncertainty surrounding the COVID-19 pandemic, the Company
elected to draw an additional $50 million from its $325 million
Senior Secured Revolving Credit Facility due 2023 (the “Credit
Facility”). The proceeds are available to be used for working
capital and general corporate purposes. Quanex currently has
approximately $70 million of cash on hand and approximately $100
million of capacity remaining under the Credit Facility.
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.
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, and the Company’s Quarterly
Report on Form 10-Q for the fiscal quarter ended January 31, 2020,
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.
Contact:Scott ZuehlkeSVP, Chief
Financial Officer and
Treasurer713-877-5327scott.zuehlke@quanex.com
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