American Woodmark Corporation Announces First Quarter Results
August 25 2009 - 6:30AM
PR Newswire (US)
WINCHESTER, Va., Aug. 25 /PRNewswire-FirstCall/ -- American
Woodmark Corporation (NASDAQ:AMWD) today announced results for the
first quarter of its fiscal year 2010, that ended on July 31, 2009.
Net sales declined 28% compared with the first quarter of the prior
fiscal year to $100,835,000. The Company experienced sales declines
of more than 20% in both its remodeling and new construction sales
channels. During the fourth quarter of its prior fiscal year, the
Company previously announced several initiatives to reduce costs,
including the permanent closure of two of its manufacturing plants,
the suspension of operations at a third plant, and a
reduction-in-force of salaried personnel. The Company successfully
completed these initiatives during the first quarter of fiscal year
2010. The Company recorded restructuring charges during its first
quarter relating to these initiatives that increased its net loss
by ($1,596,000), or ($0.11) per diluted share. Exclusive of these
charges, net loss for the first quarter of fiscal year 2010 was
($4,810,000), or ($0.34) per diluted share. These results compare
with net income earned during the first quarter of the prior fiscal
year of $156,000, or $0.01 per diluted share. Gross profit for the
first quarter of fiscal year 2010 was 11.7% of net sales, compared
with 15.9% in the first quarter of the prior fiscal year. The
decline in gross profit margin experienced during the first quarter
of fiscal year 2010 primarily reflected the unfavorable impact of
inefficiencies in direct labor and manufacturing overhead costs
stemming from the impact of lower sales volumes, offset in part by
the favorable impact of lower fuel costs. Selling, general and
administrative costs were 19.4% of net sales in the first quarter
of fiscal year 2010, up from 15.9% of net sales in the first
quarter of the prior fiscal year. The Company reduced its operating
expenses by $2.5 million, or 11% compared with prior year, but its
operating expense ratio increased because this reduction was lower
than the magnitude of its sales decline. The Company experienced
negative free cash flow of ($9.1) million (defined as cash provided
by operating activities net of cash used for investing activities)
in the first quarter of fiscal year 2010, compared with positive
free cash flow generated in the first quarter of the prior fiscal
year of $7.4 million. The Company's decline in free cash flow was
driven primarily by a combination of reduced net income and
payments made during the first quarter of fiscal year 2010 to
satisfy prior year obligations for performance-based bonuses and
severance. Commenting on these results, President and CEO Kent
Guichard stated, "Our sales decline and net loss for the quarter
were disappointing, but in line with our expectations, when
considering the difficult market conditions confronting our
industry. Our Company had been somewhat insulated against these
difficult conditions in our two previous quarters by a favorable
retail promotional environment, but that impact ended during the
fourth quarter of our last fiscal year. Because we chose to
maximize our liquidity last year, we began the current fiscal year
with a record amount of cash on hand. Although we had negative free
cash flow, we ended the first quarter with over $72 million of cash
on hand, and a debt to capital ratio of only 11.7%. While
prevailing market conditions remain difficult, we remain confident
about the long-term prospects for our industry and for our Company
in particular." American Woodmark Corporation manufactures and
distributes kitchen cabinets and vanities for the remodeling and
new home construction markets. Its products are sold on a national
basis directly to home centers, major builders and through a
network of independent distributors. The Company presently operates
eleven manufacturing facilities and nine service centers across the
country. Safe harbor statement under the Private Securities
Litigation Reform Act of 1995: All forwardlooking statements made
by the Company involve material risks and uncertainties and are
subject to change based on factors that may be beyond the Company's
control. Accordingly, the Company's future performance and
financial results may differ materially from those expressed or
implied in any such forward-looking statements. Such factors
include, but are not limited to, those described in the Company's
filings with the Securities and Exchange Commission and the Annual
Report to Shareholders. The Company does not undertake to publicly
update or revise its forward looking statements even if experience
or future changes make it clear that any projected results
expressed or implied therein will not be realized. AMWD-F AMWD-E
AMERICAN WOODMARK CORPORATION Unaudited Financial Highlights (in
thousands, except share data) Operating Results -----------------
Three Months Ended July 31 -------------------- 2009 2008 ---- ----
Net Sales $100,835 $139,153 Cost of Sales & Distribution 89,001
117,093 ------ ------- Gross Profit 11,834 22,060 Sales &
Marketing Expense 13,349 15,568 G&A Expense 6,227 6,542
Restructuring charges 2,554 -- ----- ---- Operating Loss (10,296)
(50) Interest & Other (Income) Expense (46) (261) Income Tax
Expense (Benefit) (3,844) 55 ----- ---- Net Income (Loss) $(6,406)
$156 ------- ---- Earnings Per Share: Weighted Average Shares
Outstanding - Diluted 14,113,627 14,099,805 Diluted Earnings Per
Share $(0.45) $0.01 Condensed Consolidated Balance Sheets
------------------------------------- July 31, April 30, 2009 2009
---- ---- Cash & Cash Equivalents $72,754 $82,821 Customer
Receivables 26,426 26,944 Inventories 27,610 32,684 Other Current
Assets 11,969 11,089 ------ ------ Total Current Assets 138,759
153,538 Property, Plant & Equipment 128,018 132,928 Other
Assets 22,336 17,271 ------ ------ Total Assets $289,113 $303,737
-------- -------- Current Portion - Long-Term Debt $862 $859
Accounts Payable & Accrued Expenses 46,408 57,308 ------ ------
Total Current Liabilities 47,270 58,167 Long-Term Debt 26,326
26,475 Other Liabilities 17,542 15,413 ------ ------ Total
Liabilities 91,138 100,055 Stockholders' Equity 197,975 203,682
------- ------- Total Liabilities & Stockholders' Equity
$289,113 $303,737 -------- -------- Condensed Consolidated
Statements of Cash Flows
----------------------------------------------- Three Months Ended
July 31 ------------------ 2009 2008 ---- ---- Net Cash Provided
(Used) by Operating Activities $(6,718) $10,617 Net Cash Used by
Investing Activities (2,361) (3,233) ------ ------ Free Cash Flow
$(9,079) $7,384 Net Cash Used by Financing Activities (988) (3,886)
---- ------ Net Increase/(Decrease) in Cash and Cash Equivalents
(10,067) 3,498 Cash and Cash Equivalents, Beginning of Period
82,821 56,932 ------ ------ Cash and Cash Equivalents, End of
Period $72,754 $60,430 ------- ------- DATASOURCE: American
Woodmark Corporation CONTACT: Glenn Eanes, Vice President and
Treasurer, +1-540-665-9100 Web Site:
http://www.americanwoodmark.com/
Copyright