Quanex Building Products Corporation
(NYSE:NX) (“Quanex” or the “Company”) today announced its results
for the three months ended April 30, 2022.
The Company reported the following selected
financial results:
QUANEX BUILDING PRODUCTS CORPORATION |
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Q2 2022 Earnings Release |
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Three Months Ended April 30, |
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Six Months Ended April 30, |
($ in millions, except per share data) |
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2022 |
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2021 |
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2022 |
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2021 |
Net
Sales |
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$322.9 |
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$270.4 |
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$589.9 |
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$500.5 |
Gross
Margin |
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$73.2 |
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$61.9 |
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$128.4 |
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$115.6 |
Gross Margin % |
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22.7% |
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22.9% |
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21.8% |
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23.1% |
Net
Income |
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$26.5 |
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$14.6 |
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$37.8 |
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$22.4 |
Diluted
EPS |
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$0.80 |
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$0.43 |
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$1.13 |
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$0.67 |
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Adjusted Net
Income |
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$26.5 |
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$14.6 |
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$37.8 |
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$23.6 |
Adjusted
Diluted EPS |
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$0.80 |
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$0.43 |
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$1.14 |
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$0.70 |
Adjusted
EBITDA |
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$45.2 |
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$32.2 |
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$69.6 |
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$56.6 |
Adjusted EBITDA Margin % |
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14.0% |
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11.9% |
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11.8% |
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11.3% |
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Cash
Provided by (Used for) Operating Activities |
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$19.8 |
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$32.4 |
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($1.9) |
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$29.0 |
Free Cash
Flow |
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$13.4 |
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$27.8 |
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($15.7) |
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$19.2 |
(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, commented, “We reported a record quarter despite ongoing
challenges related to inflation and the supply chain. Demand for
our products was better than expected during the second quarter,
and we started to see the benefit of our pass-through pricing
strategy, which drove revenue growth and improved profitability.
Inflationary pressures are ongoing, but we still expect further
margin expansion in the second half of our fiscal year.
“Managing working capital continues to be a
challenge in this inflationary environment as the value of our
inventory continues to increase, but overall, our balance sheet and
liquidity remain strong. We will be focused on generating cash,
paying down debt and opportunistically repurchasing our stock in
the second half of this year.” (See Non-GAAP Terminology
Definitions and Disclaimers section for additional information)
Second Quarter 2022 Results
Summary
The Company reported net sales of $322.9 million
during the three months ended April 30, 2022, which represents
growth of 19.4% compared to $270.4 million for the same period of
2021. The increase was largely attributable to higher prices
related to the pass through of raw material cost inflation. More
specifically, Quanex realized net sales growth of 21.7% in its
North American Fenestration segment, 14.7% in its North American
Cabinet Components segment and 13.0% in its European Fenestration
segment, excluding the foreign exchange impact. (See Sales Analysis
table for additional information)
The increase in earnings for the three months
ended April 30, 2022 was mostly due to increased pricing related to
the pass through of raw material cost inflation, higher volumes,
and a decrease in SG&A expense, mainly due to lower stock-based
compensation.
Balance Sheet & Liquidity
Update
As of April 30, 2022, Quanex had total debt of
$77.0 million and its leverage ratio of Net Debt to LTM Adjusted
EBITDA improved to 0.3x. (See Non-GAAP Terminology
Definitions and Disclaimers section for additional information)
The Company’s liquidity increased to $296.5
million as of April 30, 2022, consisting of $38.9 million in cash
on hand plus availability under its Senior Secured Revolving Credit
Facility due 2023, less letters of credit outstanding.
Share Repurchases
Quanex’s Board authorized a $75 million share
repurchase program in December of 2021. 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 Company
repurchased 75,000 shares of common stock for approximately $1.6
million at an average price of $20.92 per share during the three
months ended April 30, 2022. As of April 30, 2022, approximately
$73.4 million remained under the existing share repurchase
authorization.
Outlook
Mr. Wilson stated, “We are increasing guidance
for fiscal 2022 based on our strong second quarter results combined
with the successful implementation of our pass-through pricing
strategy and ongoing conversations with our customers. We are very
cognizant of the current macro related uncertainties, but we
continue to believe that the underlying fundamentals for
residential housing are positive and demand for our products
remains healthy. For the second half of our fiscal year, we now
expect low double-digit revenue growth in our North American
Fenestration segment and mid-single digit revenue growth in our
North American Cabinet Components and European Fenestration
segments. Overall, on a consolidated basis and assuming the current
inflation and supply chain challenges do not worsen materially, we
estimate this will equate to net sales of $1.18 billion to $1.2
billion, which we expect will generate approximately $150 million
to $155 million in Adjusted EBITDA* in fiscal 2022.”
*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.
Conference Call and Webcast
Information
The Company has scheduled a conference call for
Friday, June 3, 2022, 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 7942145, 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 June 10, 2022. To access the replay dial
(855) 859-2056 for domestic callers and (404) 537-3406 for
international callers, in both cases referencing conference
passcode 7942145.
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 (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. Net
Debt is defined as total debt (outstanding balance on the revolving
credit facility plus financial lease obligations) less 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. Quanex uses the Free Cash Flow metric to
measure operational and cash management performance and assist with
financial decision-making. Free Cash Flow is measured before
application of certain contractual commitments (including capital
lease obligations), and accordingly is not a true measure of the
Company’s residual cash flow available for discretionary
expenditures. Quanex believes Free Cash Flow is useful to investors
in understanding and evaluating the Company’s financial and cash
management performance. Quanex believes that the presented non-GAAP
measures provide a consistent basis for comparison between periods
and will assist investors in understanding the Company’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. Quanex 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 following: impacts from public health issues
(including pandemics, such as the recent COVID-19 pandemic) on the
economy and the demand for Quanex’s products, 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, 2021, and the Company’s Quarterly
Reports on Form 10-Q 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(In thousands, except per share data)(Unaudited)
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Three Months Ended April 30, |
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Six Months Ended April 30, |
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2022 |
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|
2021 |
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2022 |
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2021 |
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Net
sales |
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$ |
322,893 |
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$ |
270,357 |
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$ |
589,933 |
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$ |
500,504 |
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Cost of
sales |
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249,651 |
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208,460 |
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461,485 |
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384,857 |
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Selling,
general and administrative |
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28,129 |
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29,672 |
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58,952 |
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60,533 |
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Restructuring charges |
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- |
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- |
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- |
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39 |
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Depreciation
and amortization |
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10,563 |
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10,845 |
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20,820 |
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21,860 |
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Operating
income |
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34,550 |
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|
21,380 |
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48,676 |
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|
33,215 |
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Interest
expense |
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(602 |
) |
|
|
(640 |
) |
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|
(1,125 |
) |
|
|
(1,391 |
) |
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Other,
net |
|
|
453 |
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|
265 |
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|
507 |
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|
457 |
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Income
before income taxes |
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|
34,401 |
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|
21,005 |
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|
48,058 |
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|
32,281 |
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Income tax
expense |
|
|
(7,879 |
) |
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(6,454 |
) |
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(10,297 |
) |
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|
(9,878 |
) |
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Net
income |
|
$ |
26,522 |
|
|
$ |
14,551 |
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|
$ |
37,761 |
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$ |
22,403 |
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Earnings per
common share, basic |
|
$ |
0.80 |
|
|
$ |
0.44 |
|
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$ |
1.14 |
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|
$ |
0.68 |
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Earnings per
common share, diluted |
|
$ |
0.80 |
|
|
$ |
0.43 |
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$ |
1.13 |
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$ |
0.67 |
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Weighted
average common shares outstanding: |
|
|
|
|
|
|
|
|
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Basic |
|
|
33,157 |
|
|
|
33,355 |
|
|
|
33,140 |
|
|
|
33,110 |
|
|
Diluted |
|
|
33,291 |
|
|
|
33,637 |
|
|
|
33,292 |
|
|
|
33,444 |
|
|
|
|
|
|
|
|
|
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Cash
dividends per share |
|
$ |
0.08 |
|
|
$ |
0.08 |
|
|
$ |
0.16 |
|
|
$ |
0.16 |
|
|
|
|
|
|
|
|
|
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QUANEX BUILDING PRODUCTS
CORPORATIONCONDENSED CONSOLIDATED BALANCE
SHEETS(In thousands)(Unaudited)
|
|
April 30, 2022 |
|
October 31, 2021 |
|
ASSETS |
|
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|
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Current
assets: |
|
|
|
|
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Cash and cash equivalents |
|
$ |
38,900 |
|
|
$ |
40,061 |
|
|
Accounts receivable, net |
|
|
118,195 |
|
|
|
108,309 |
|
|
Inventories, net |
|
|
130,383 |
|
|
|
92,529 |
|
|
Prepaid and other current assets |
|
|
11,442 |
|
|
|
8,148 |
|
|
Total current assets |
|
|
298,920 |
|
|
|
249,047 |
|
|
Property,
plant and equipment, net |
|
|
170,307 |
|
|
|
178,630 |
|
|
Operating
lease right-of-use assets |
|
|
48,582 |
|
|
|
52,708 |
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Goodwill |
|
|
143,268 |
|
|
|
149,205 |
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Intangible
assets, net |
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|
73,581 |
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|
|
82,410 |
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Other
assets |
|
|
5,832 |
|
|
|
5,323 |
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Total assets |
|
$ |
740,490 |
|
|
$ |
717,323 |
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|
|
|
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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|
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Current
liabilities: |
|
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Accounts payable |
|
$ |
88,956 |
|
|
$ |
86,765 |
|
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Accrued liabilities |
|
|
40,740 |
|
|
|
56,156 |
|
|
Income taxes payable |
|
|
7,851 |
|
|
|
6,038 |
|
|
Current maturities of long-term debt |
|
|
812 |
|
|
|
846 |
|
|
Current operating lease liabilities |
|
|
8,229 |
|
|
|
8,196 |
|
|
Total current liabilities |
|
|
146,588 |
|
|
|
158,001 |
|
|
Long-term
debt |
|
|
75,714 |
|
|
|
52,094 |
|
|
Noncurrent
operating lease liabilities |
|
|
41,369 |
|
|
|
45,367 |
|
|
Deferred
pension and postretirement benefits |
|
|
4,578 |
|
|
|
4,737 |
|
|
Deferred
income taxes |
|
|
21,522 |
|
|
|
21,965 |
|
|
Other
liabilities |
|
|
14,545 |
|
|
|
15,377 |
|
|
Total liabilities |
|
|
304,316 |
|
|
|
297,541 |
|
|
Stockholders’ equity: |
|
|
|
|
|
Common stock |
|
|
373 |
|
|
|
373 |
|
|
Additional paid-in-capital |
|
|
250,756 |
|
|
|
254,162 |
|
|
Retained earnings |
|
|
292,221 |
|
|
|
259,718 |
|
|
Accumulated other comprehensive loss |
|
|
(36,197 |
) |
|
|
(21,770 |
) |
|
Treasury stock at cost |
|
|
(70,979 |
) |
|
|
(72,701 |
) |
|
Total stockholders’ equity |
|
|
436,174 |
|
|
|
419,782 |
|
|
Total liabilities and stockholders' equity |
|
$ |
740,490 |
|
|
$ |
717,323 |
|
|
|
|
|
|
|
|
QUANEX BUILDING PRODUCTS
CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOW(In thousands)(Unaudited)
|
Six Months Ended April 30, |
|
|
|
2022 |
|
|
|
2021 |
|
|
Operating activities: |
|
|
|
|
Net income |
$ |
37,761 |
|
|
$ |
22,403 |
|
|
Adjustments to reconcile net income to cash (used for) provided by
operating activities: |
|
|
|
|
Depreciation and amortization |
|
20,820 |
|
|
|
21,860 |
|
|
Stock-based compensation |
|
1,124 |
|
|
|
970 |
|
|
Deferred income tax |
|
583 |
|
|
|
2,339 |
|
|
Other, net |
|
1,534 |
|
|
|
5,049 |
|
|
Changes in assets and liabilities: |
|
|
|
|
Increase in accounts receivable |
|
(13,008 |
) |
|
|
(6,726 |
) |
|
Increase in inventory |
|
(39,771 |
) |
|
|
(18,265 |
) |
|
Increase in other current assets |
|
(3,541 |
) |
|
|
(2,013 |
) |
|
Increase in accounts payable |
|
7,381 |
|
|
|
5,584 |
|
|
(Decrease) increase in accrued liabilities |
|
(15,984 |
) |
|
|
994 |
|
|
Increase (decrease) in income taxes payable |
|
1,679 |
|
|
|
(4,071 |
) |
|
Decrease in deferred pension and postretirement benefits |
|
(159 |
) |
|
|
(104 |
) |
|
Increase in other long-term liabilities |
|
443 |
|
|
|
642 |
|
|
Other, net |
|
(743 |
) |
|
|
298 |
|
|
Cash (used
for) provided by operating activities |
|
(1,881 |
) |
|
|
28,960 |
|
|
Investing activities: |
|
|
|
|
Capital expenditures |
|
(13,785 |
) |
|
|
(9,799 |
) |
|
Proceeds from disposition of capital assets |
|
36 |
|
|
|
1,665 |
|
|
Cash used
for investing activities |
|
(13,749 |
) |
|
|
(8,134 |
) |
|
Financing activities: |
|
|
|
|
Borrowings under credit facilities |
|
70,500 |
|
|
|
- |
|
|
Repayments of credit facility borrowings |
|
(45,500 |
) |
|
|
(30,000 |
) |
|
Repayments of other long-term debt |
|
(432 |
) |
|
|
(605 |
) |
|
Common stock dividends paid |
|
(5,258 |
) |
|
|
(5,330 |
) |
|
Issuance of common stock |
|
173 |
|
|
|
16,123 |
|
|
Payroll tax paid to settle shares forfeited upon vesting of
stock |
|
(1,412 |
) |
|
|
(492 |
) |
|
Purchase of treasury stock |
|
(1,569 |
) |
|
|
(3,968 |
) |
|
Cash
provided by (used for) financing activities |
|
16,502 |
|
|
|
(24,272 |
) |
|
Effect of exchange rate changes on cash and cash equivalents |
|
(2,033 |
) |
|
|
1,083 |
|
|
Decrease in
cash and cash equivalents |
|
(1,161 |
) |
|
|
(2,363 |
) |
|
Cash and
cash equivalents at beginning of period |
|
40,061 |
|
|
|
51,621 |
|
|
Cash and
cash equivalents at end of period |
$ |
38,900 |
|
|
$ |
49,258 |
|
|
|
|
|
|
|
QUANEX BUILDING PRODUCTS
CORPORATIONFREE CASH FLOW AND NET DEBT
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 (used for) operating
activities less capital expenditures. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended April 30, |
|
Six Months Ended April 30, |
|
|
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
Cash
provided by (used for) operating activities |
|
|
19,770 |
|
32,355 |
|
($1,881) |
|
$28,960 |
|
Capital
expenditures |
|
|
(6,415) |
|
(4,553) |
|
(13,785) |
|
(9,799) |
|
Free
Cash Flow |
|
|
$13,355 |
|
$27,802 |
|
($15,666) |
|
$19,161 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table reconciles the Company's Net Debt which is
defined as total debt principal of the Company plus finance lease
obligations minus cash. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of April 30, |
|
|
|
|
|
|
2022 |
|
2021 |
|
|
|
|
|
Revolving
credit facility |
|
|
$63,000 |
|
$73,000 |
|
|
|
|
|
Finance
lease obligations |
|
|
13,971 |
|
15,689 |
|
|
|
|
|
Total
debt(1) |
|
|
76,971 |
|
88,689 |
|
|
|
|
|
Less: Cash
and cash equivalents |
|
|
38,900 |
|
49,258 |
|
|
|
|
|
Net
Debt |
|
|
$38,071 |
|
$39,431 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Excludes
outstanding letters of credit. |
|
|
|
|
|
|
|
|
|
|
QUANEX BUILDING PRODUCTS
CORPORATIONNON-GAAP FINANCIAL MEASURE
DISCLOSURE(In thousands, except per share
data)(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Six Months Ended |
|
Six Months Ended |
|
|
Reconciliation of Adjusted Net Income and Adjusted
EPS |
|
April 30, 2022 |
|
April 30, 2021 |
|
April 30, 2022 |
|
April 30, 2021 |
|
|
|
|
Net Income |
|
Diluted EPS |
|
Net Income |
|
Diluted EPS |
|
Net Income |
|
Diluted EPS |
|
Net Income |
|
Diluted EPS |
|
|
Net income
as reported |
|
$
26,522 |
|
$ 0.80 |
|
$
14,551 |
|
$ 0.43 |
|
$
37,761 |
|
$ 1.13 |
|
$
22,403 |
|
$ 0.67 |
|
|
Net Income
reconciling items from below |
|
1 |
|
$ - |
|
3 |
|
$ - |
|
34 |
|
$ 0.01 |
|
1,174 |
|
$ 0.03 |
|
|
Adjusted net
income and adjusted EPS |
|
$ 26,523 |
|
$ 0.80 |
|
$ 14,554 |
|
$ 0.43 |
|
$ 37,795 |
|
$ 1.14 |
|
$ 23,577 |
|
$ 0.70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted EBITDA |
|
Three Months Ended April 30, 2022 |
|
Three Months Ended April 30, 2021 |
|
Six Months Ended April 30, 2022 |
|
Six Months Ended April 30, 2021 |
|
|
|
|
Reconciliation |
|
|
|
Reconciliation |
|
|
|
Reconciliation |
|
|
|
Reconciliation |
|
|
|
|
Net income
as reported |
|
$
26,522 |
|
|
|
$
14,551 |
|
|
|
$
37,761 |
|
|
|
$
22,403 |
|
|
|
|
Income tax
expense |
|
7,879 |
|
|
|
6,454 |
|
|
|
10,297 |
|
|
|
9,878 |
|
|
|
|
Other,
net |
|
(453) |
|
|
|
(265) |
|
|
|
(507) |
|
|
|
(457) |
|
|
|
|
Interest
expense |
|
602 |
|
|
|
640 |
|
|
|
1,125 |
|
|
|
1,391 |
|
|
|
|
Depreciation
and amortization |
|
10,563 |
|
|
|
10,845 |
|
|
|
20,820 |
|
|
|
21,860 |
|
|
|
|
EBITDA |
|
45,113 |
|
|
|
32,225 |
|
|
|
69,496 |
|
|
|
55,075 |
|
|
|
|
EBITDA
reconciling items from below |
|
131 |
|
|
|
- |
|
|
|
131 |
|
|
|
1,478 |
|
|
|
|
Adjusted
EBITDA |
|
$ 45,244 |
|
|
|
$ 32,225 |
|
|
|
$ 69,627 |
|
|
|
$ 56,553 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling Items |
|
Three Months Ended April 30, 2022 |
|
Three Months Ended April 30, 2021 |
|
Six Months Ended April 30, 2022 |
|
Six Months Ended April 30, 2021 |
|
|
|
|
Income Statement |
|
Reconciling Items |
|
Income Statement |
|
Reconciling Items |
|
Income Statement |
|
Reconciling Items |
|
Income Statement |
|
Reconciling Items |
|
|
Net
sales |
|
$
322,893 |
|
$ - |
|
$
270,357 |
|
$ - |
|
$
589,933 |
|
$ - |
|
$
500,504 |
|
$ - |
|
|
Cost of
sales |
|
249,651 |
|
- |
|
208,460 |
|
- |
|
461,485 |
|
- |
|
384,857 |
|
- |
|
|
Selling,
general and administrative |
|
28,129 |
|
(131) |
(1) |
29,672 |
|
- |
|
58,952 |
|
(131) |
(1) |
60,533 |
|
(1,439) |
(1) |
|
Restructuring charges |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
39 |
|
(39) |
(2) |
|
EBITDA |
|
45,113 |
|
131 |
|
32,225 |
|
- |
|
69,496 |
|
131 |
|
55,075 |
|
1,478 |
|
|
Depreciation
and amortization |
|
10,563 |
|
- |
|
10,845 |
|
- |
|
20,820 |
|
- |
|
21,860 |
|
- |
|
|
Operating
income |
|
34,550 |
|
131 |
|
21,380 |
|
- |
|
48,676 |
|
131 |
|
33,215 |
|
1,478 |
|
|
Interest
expense |
|
(602) |
|
- |
|
(640) |
|
- |
|
(1,125) |
|
- |
|
(1,391) |
|
- |
|
|
Other,
net |
|
453 |
|
(123) |
(3) |
265 |
|
4 |
(3) |
507 |
|
(82) |
(3) |
457 |
|
82 |
(3) |
|
Income
before income taxes |
|
34,401 |
|
8 |
|
21,005 |
|
4 |
|
48,058 |
|
49 |
|
32,281 |
|
1,560 |
|
|
Income tax
expense |
|
(7,879) |
|
(7) |
(4) |
(6,454) |
|
(1) |
(4) |
(10,297) |
|
(15) |
(4) |
(9,878) |
|
(386) |
(4) |
|
Net
income |
|
$ 26,522 |
|
$ 1 |
|
$ 14,551 |
|
$ 3 |
|
$ 37,761 |
|
$ 34 |
|
$ 22,403 |
|
$ 1,174 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share |
|
$ 0.80 |
|
|
|
$ 0.43 |
|
|
|
$ 1.13 |
|
|
|
$ 0.67 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Transaction and
advisory fees and $1.4 million related to the loss on a sale of a
plant in the six months ended April 20, 2021. |
|
(2) Restructuring
charges related to the closure of manufacturing plant
facilities. |
|
(3) Foreign
currency transaction (gains) losses. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4) Impact on a with and without basis. |
|
|
|
|
|
|
|
|
|
|
QUANEX BUILDING PRODUCTS
CORPORATIONSELECTED 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 Cabinet Components |
|
Unallocated Corp & Other |
|
Total |
Three months ended April 30, 2022 |
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
177,908 |
|
|
$ |
73,427 |
|
|
$ |
72,878 |
|
|
$ |
(1,320 |
) |
|
$ |
322,893 |
|
Cost of sales |
|
|
137,571 |
|
|
|
49,708 |
|
|
|
63,175 |
|
|
|
(803 |
) |
|
|
249,651 |
|
Gross Margin |
|
|
40,337 |
|
|
|
23,719 |
|
|
|
9,703 |
|
|
|
(517 |
) |
|
|
73,242 |
|
Gross Margin % |
|
|
22.7 |
% |
|
|
32.3 |
% |
|
|
13.3 |
% |
|
|
|
|
22.7 |
% |
Selling, general and administrative |
|
|
14,078 |
|
|
|
8,601 |
|
|
|
5,218 |
|
|
|
232 |
|
|
|
28,129 |
|
Depreciation and amortization |
|
|
4,038 |
|
|
|
2,522 |
|
|
|
3,917 |
|
|
|
86 |
|
|
|
10,563 |
|
Operating income (loss) |
|
|
22,221 |
|
|
|
12,596 |
|
|
|
568 |
|
|
|
(835 |
) |
|
|
34,550 |
|
Depreciation and amortization |
|
|
4,038 |
|
|
|
2,522 |
|
|
|
3,917 |
|
|
|
86 |
|
|
|
10,563 |
|
EBITDA |
|
|
26,259 |
|
|
|
15,118 |
|
|
|
4,485 |
|
|
|
(749 |
) |
|
|
45,113 |
|
Transaction and advisory fees |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
131 |
|
|
|
131 |
|
Adjusted EBITDA |
|
$ |
26,259 |
|
|
$ |
15,118 |
|
|
$ |
4,485 |
|
|
$ |
(618 |
) |
|
$ |
45,244 |
|
Adjusted EBITDA Margin % |
|
|
14.8 |
% |
|
|
20.6 |
% |
|
|
6.2 |
% |
|
|
|
|
14.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
Three months ended April 30, 2021 |
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
146,143 |
|
|
$ |
61,657 |
|
|
$ |
63,562 |
|
|
$ |
(1,005 |
) |
|
$ |
270,357 |
|
Cost of sales |
|
|
112,368 |
|
|
|
41,361 |
|
|
|
55,162 |
|
|
|
(431 |
) |
|
|
208,460 |
|
Gross Margin |
|
|
33,775 |
|
|
|
20,296 |
|
|
|
8,400 |
|
|
|
(574 |
) |
|
|
61,897 |
|
Gross Margin % |
|
|
23.1 |
% |
|
|
32.9 |
% |
|
|
13.2 |
% |
|
|
|
|
22.9 |
% |
Selling, general and administrative |
|
|
13,146 |
|
|
|
7,439 |
|
|
|
5,379 |
|
|
|
3,708 |
|
|
|
29,672 |
|
Depreciation and amortization |
|
|
4,846 |
|
|
|
2,607 |
|
|
|
3,305 |
|
|
|
87 |
|
|
|
10,845 |
|
Operating income (loss) |
|
|
15,783 |
|
|
|
10,250 |
|
|
|
(284 |
) |
|
|
(4,369 |
) |
|
|
21,380 |
|
Depreciation and amortization |
|
|
4,846 |
|
|
|
2,607 |
|
|
|
3,305 |
|
|
|
87 |
|
|
|
10,845 |
|
EBITDA |
|
|
20,629 |
|
|
|
12,857 |
|
|
|
3,021 |
|
|
|
(4,282 |
) |
|
|
32,225 |
|
Adjusted EBITDA |
|
$ |
20,629 |
|
|
$ |
12,857 |
|
|
$ |
3,021 |
|
|
$ |
(4,282 |
) |
|
$ |
32,225 |
|
Adjusted EBITDA Margin % |
|
|
14.1 |
% |
|
|
20.9 |
% |
|
|
4.8 |
% |
|
|
|
|
11.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
Six
months ended April 30, 2022 |
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
324,539 |
|
|
$ |
132,341 |
|
|
$ |
135,231 |
|
|
$ |
(2,178 |
) |
|
$ |
589,933 |
|
Cost of sales |
|
|
253,535 |
|
|
|
90,935 |
|
|
|
118,248 |
|
|
|
(1,233 |
) |
|
|
461,485 |
|
Gross Margin |
|
|
71,004 |
|
|
|
41,406 |
|
|
|
16,983 |
|
|
|
(945 |
) |
|
|
128,448 |
|
Gross Margin % |
|
|
21.9 |
% |
|
|
31.3 |
% |
|
|
12.6 |
% |
|
|
|
|
21.8 |
% |
Selling, general and administrative |
|
|
28,455 |
|
|
|
15,904 |
|
|
|
10,488 |
|
|
|
4,105 |
|
|
|
58,952 |
|
Depreciation and amortization |
|
|
8,177 |
|
|
|
5,091 |
|
|
|
7,380 |
|
|
|
172 |
|
|
|
20,820 |
|
Operating income (loss) |
|
|
34,372 |
|
|
|
20,411 |
|
|
|
(885 |
) |
|
|
(5,222 |
) |
|
|
48,676 |
|
Depreciation and amortization |
|
|
8,177 |
|
|
|
5,091 |
|
|
|
7,380 |
|
|
|
172 |
|
|
|
20,820 |
|
EBITDA |
|
|
42,549 |
|
|
|
25,502 |
|
|
|
6,495 |
|
|
|
(5,050 |
) |
|
|
69,496 |
|
Transaction and advisory fees |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
131 |
|
|
|
131 |
|
Adjusted EBITDA |
|
$ |
42,549 |
|
|
$ |
25,502 |
|
|
$ |
6,495 |
|
|
$ |
(4,919 |
) |
|
$ |
69,627 |
|
Adjusted EBITDA Margin % |
|
|
13.1 |
% |
|
|
19.3 |
% |
|
|
4.8 |
% |
|
|
|
|
11.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
Six
months ended April 30, 2021 |
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
274,259 |
|
|
$ |
110,748 |
|
|
$ |
117,556 |
|
|
$ |
(2,059 |
) |
|
$ |
500,504 |
|
Cost of sales |
|
|
211,761 |
|
|
|
73,152 |
|
|
|
101,036 |
|
|
|
(1,092 |
) |
|
|
384,857 |
|
Gross Margin |
|
|
62,498 |
|
|
|
37,596 |
|
|
|
16,520 |
|
|
|
(967 |
) |
|
|
115,647 |
|
Gross Margin % |
|
|
22.8 |
% |
|
|
33.9 |
% |
|
|
14.1 |
% |
|
|
|
|
23.1 |
% |
Selling, general and administrative |
|
|
25,516 |
|
|
|
14,034 |
|
|
|
10,242 |
|
|
|
10,741 |
|
|
|
60,533 |
|
Restructuring charges |
|
|
39 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
39 |
|
Depreciation and amortization |
|
|
9,957 |
|
|
|
5,125 |
|
|
|
6,575 |
|
|
|
203 |
|
|
|
21,860 |
|
Operating income (loss) |
|
|
26,986 |
|
|
|
18,437 |
|
|
|
(297 |
) |
|
|
(11,911 |
) |
|
|
33,215 |
|
Depreciation and amortization |
|
|
9,957 |
|
|
|
5,125 |
|
|
|
6,575 |
|
|
|
203 |
|
|
|
21,860 |
|
EBITDA |
|
|
36,943 |
|
|
|
23,562 |
|
|
|
6,278 |
|
|
|
(11,708 |
) |
|
|
55,075 |
|
Loss on sale of plant |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,439 |
|
|
|
1,439 |
|
Restructuring charges |
|
|
39 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
39 |
|
Adjusted EBITDA |
|
$ |
36,982 |
|
|
$ |
23,562 |
|
|
$ |
6,278 |
|
|
$ |
(10,269 |
) |
|
$ |
56,553 |
|
Adjusted EBITDA Margin % |
|
|
13.5 |
% |
|
|
21.3 |
% |
|
|
5.3 |
% |
|
|
|
|
11.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
QUANEX
BUILDING PRODUCTS CORPORATION |
|
SALES
ANALYSIS |
|
(In thousands) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended April 30, |
|
Six Months
Ended |
|
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
NA Fenestration: |
|
|
|
|
|
|
|
|
|
United
States - fenestration |
$ |
156,843 |
|
|
$ |
128,218 |
|
|
$ |
285,210 |
|
|
$ |
240,518 |
|
|
|
International - fenestration |
|
11,094 |
|
|
|
8,397 |
|
|
|
20,230 |
|
|
|
16,175 |
|
|
|
United
States - non-fenestration |
|
7,077 |
|
|
|
6,293 |
|
|
|
13,793 |
|
|
|
11,690 |
|
|
|
International - non-fenestration |
|
2,894 |
|
|
|
3,235 |
|
|
|
5,306 |
|
|
|
5,876 |
|
|
|
|
$ |
177,908 |
|
|
$ |
146,143 |
|
|
$ |
324,539 |
|
|
$ |
274,259 |
|
|
EU
Fenestration(1): |
|
|
|
|
|
|
|
|
|
International - fenestration |
$ |
54,863 |
|
|
$ |
50,835 |
|
|
$ |
99,484 |
|
|
$ |
92,189 |
|
|
|
International - non-fenestration |
|
18,564 |
|
|
|
10,822 |
|
|
|
32,857 |
|
|
|
18,559 |
|
|
|
|
$ |
73,427 |
|
|
$ |
61,657 |
|
|
$ |
132,341 |
|
|
$ |
110,748 |
|
|
NA Cabinet Components: |
|
|
|
|
|
|
|
|
|
United
States - fenestration |
$ |
4,666 |
|
|
$ |
3,497 |
|
|
$ |
8,431 |
|
|
$ |
6,471 |
|
|
|
United
States - non-fenestration |
|
67,383 |
|
|
|
60,388 |
|
|
|
125,150 |
|
|
|
110,890 |
|
|
|
International - non-fenestration |
|
829 |
|
|
|
(323 |
) |
|
|
1,650 |
|
|
|
195 |
|
|
|
|
$ |
72,878 |
|
|
$ |
63,562 |
|
|
$ |
135,231 |
|
|
$ |
117,556 |
|
|
Unallocated Corporate & Other: |
|
|
|
|
|
|
|
|
|
Eliminations |
$ |
(1,320 |
) |
|
$ |
(1,005 |
) |
|
$ |
(2,178 |
) |
|
$ |
(2,059 |
) |
|
|
|
$ |
(1,320 |
) |
|
$ |
(1,005 |
) |
|
$ |
(2,178 |
) |
|
$ |
(2,059 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net Sales |
$ |
322,893 |
|
|
$ |
270,357 |
|
|
$ |
589,933 |
|
|
$ |
500,504 |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Reflects increase
of $3.3 million and $3.7 million in revenue associated with foreign
currency exchange rate impacts for the three and six months ended
April 30, 2022, respectively. |
|
|
|
|
|
|
|
|
|
|
|
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