NX Quanex Corp

Quanex Building Products Corporation (NYSE:NX) (“Quanex” or the “Company”) today announced its results for the three months ended July 31, 2020.

The Company reported the following selected financial results:

		Three Months Ended July 31,								Nine Months Ended July 31,
			2020				2019				2020				2019
Net Sales		$212.1				$238.5				$596.2				$653.5
Gross Margin		$49.7				$57.1				$126.6				$142.2
Gross Margin %			23.4%				23.9%				21.2%				21.8%
Net Income (Loss)		$10.8				$11.8				$16.3					($15.8)
Diluted EPS		$0.33				$0.36				$0.50					($0.48)
Adjusted Net Income		$11.1				$13.7				$18.7				$17.8
Adjusted Diluted EPS		$0.34				$0.41				$0.57				$0.54
Adjusted EBITDA		$27.7				$32.8				$65.2				$68.2
Adjusted EBITDA Margin %			13.1%				13.7%				10.9%				10.4%
Cash Provided by Operating Activities		$45.1				$29.9				$47.6				$30.0
Free Cash Flow		$40.7				$25.9				$26.9				$13.1
(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, “Despite the impact from the COVID-19 pandemic, third quarter results proved better than we expected and exceeded the guidance we provided on our last earnings call.  Volumes increased steadily throughout the quarter, especially in Europe, and we remain optimistic on the recovery.  We continue to focus on managing working capital and generating cash.  As a result, we realized an increase of over 50% in cash provided by operating activities as compared to the same period of 2019.  We were also able to repay $78 million of bank debt during the quarter, $50 million of which was drawn as a precautionary measure in response to the pandemic, and our leverage ratio of Net Debt to LTM Adjusted EBITDA improved to a level below where we ended fiscal 2019.  We have worked tirelessly over the past several years to make sure we have a flexible capital structure and a strong balance sheet, which has left our Company well positioned to navigate the challenges presented by the COVID-19 pandemic.”

Consistent with most companies, we withdrew guidance for fiscal 2020 in March due to the uncertainty surrounding the COVID-19 pandemic.  Our results have been negatively impacted by the pandemic; however, we continue to be positively surprised by the pace at which demand for our products has returned. As such, we are now comfortable providing full year 2020 guidance of $832 million to $837 million in net sales and $97 million to $102 million in Adjusted EBITDA*.  (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.

Third Quarter 2020 Results Summary  

The decrease in net sales during the third quarter of 2020 was largely attributable to softer demand related to the COVID-19 pandemic.  The Company’s two manufacturing facilities in the UK were shut down in compliance with government orders on March 25, 2020, and manufacturing operations at those plants did not restart until mid-to-late May.  However, volume across all segments increased significantly in June and net sales in July exceeded prior year on a consolidated basis. (See Sales Analysis table for additional information)

The decrease in reported earnings was primarily due to reduced operating leverage as a result of softer volumes related to the pandemic.    

Balance Sheet & Liquidity Update

As of July 31, 2020, the Company’s leverage ratio of Net Debt to LTM Adjusted EBITDA improved to 1.1x.  Quanex expects to exit fiscal 2020 with a leverage ratio of Net Debt to LTM Adjusted EBITDA at or below 1.0x.   (See Non-GAAP Terminology Definitions and Disclaimers section for additional information)

The Company’s liquidity increased to $223.2 million as of July 31, 2020, consisting of $41.1 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 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.  The Company did not repurchase any shares of common stock during the three months ended July 31, 2020.  As of July 31, 2020, approximately $11.7 million remained under the existing share repurchase authorization.  

Recent Events

Quanex’s Board of Directors declared a quarterly cash dividend of $0.08 per share on the Company’s common stock, payable September 30, 2020, to shareholders of record on September 16, 2020.

Conference Call and Webcast Information

The Company has scheduled a conference call for Friday, September 4, 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 6194308, 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 September 11, 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 6194308. 

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.  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 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, 2019, 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 (LOSS)(In thousands, except per share data)(Unaudited)

		Three Months Ended July 31,								Nine Months Ended July 31,
			2020				2019				2020				2019
Net sales		$	212,096			$	238,461			$	596,168			$	653,472
Cost of sales			162,427				181,357				469,586				511,292
Selling, general and administrative			21,973				25,718				62,818				77,466
Restructuring charges			73				94				477				281
Depreciation and amortization			11,060				12,182				35,851				37,158
Asset impairment charges			-				-				-				29,978
Operating income (loss)			16,563				19,110				27,436				(2,703	)
Interest expense			(1,165	)			(2,570	)			(4,310	)			(7,614	)
Other, net			(220	)			259				116				461
Income (loss) before income taxes			15,178				16,799				23,242				(9,856	)
Income tax expense			(4,345	)			(4,958	)			(6,898	)			(5,926	)
Net income (loss)		$	10,833			$	11,841			$	16,344			$	(15,782	)
Earnings (loss) per common share, basic		$	0.33			$	0.36			$	0.50			$	(0.48	)
Earnings (loss) per common share, diluted		$	0.33			$	0.36			$	0.50			$	(0.48	)
Weighted average common shares outstanding:
Basic			32,610				32,899				32,716				32,984
Diluted			32,739				33,162				32,845				32,984
Cash dividends per share		$	0.08			$	0.08			$	0.24			$	0.24

QUANEX BUILDING PRODUCTS CORPORATIONCONDENSED CONSOLIDATED BALANCE SHEETS(In thousands)(Unaudited)

	July 31, 2020				October 31, 2019
ASSETS
Current assets:
Cash and cash equivalents	$	41,073			$	30,868
Accounts receivable, net		84,479				82,946
Inventories, net		63,939				67,159
Prepaid and other current assets		7,930				9,353
Total current assets		197,421				190,326
Property, plant and equipment, net		186,830				193,600
Operating lease right-of-use assets		49,644				-
Goodwill		146,932				145,563
Intangible assets, net		96,957				107,297
Other assets		9,007				8,324
Total assets	$	686,791			$	645,110
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	58,676			$	63,604
Accrued liabilities		33,916				39,221
Income taxes payable		6,350				6,183
Current maturities of long-term debt		690				746
Current operating lease liabilities		7,307				-
Total current liabilities		106,939				109,754
Long-term debt		152,062				156,414
Noncurrent operating lease liabilities		42,740				-
Deferred pension and postretirement benefits		11,375				13,322
Deferred income taxes		20,507				19,363
Other liabilities		13,230				16,070
Total liabilities		346,853				314,923
Stockholders’ equity:
Common stock		373				374
Additional paid-in-capital		253,144				254,673
Retained earnings		193,989				185,703
Accumulated other comprehensive loss		(28,819	)			(33,817	)
Treasury stock at cost		(78,749	)			(76,746	)
Total stockholders’ equity		339,938				330,187
Total liabilities and stockholders' equity	$	686,791			$	645,110

QUANEX BUILDING PRODUCTS CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW(In thousands)(Unaudited)

	Nine Months Ended July 31,
		2020				2019
Operating activities:
Net income (loss)	$	16,344			$	(15,782	)
Adjustments to reconcile net income (loss) to cash provided by operating activities:
Depreciation and amortization		35,851				37,158
Stock-based compensation		513				1,424
Deferred income tax		438				1,930
Asset impairment charge		-				29,978
Other, net		762				1,724
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		(1,852	)			323
Decrease (increase) in inventory		3,553				(14,747	)
Decrease (increase) in other current assets		1,218				(1,022	)
(Decrease) increase in accounts payable		(1,878	)			1,562
Decrease in accrued liabilities		(7,611	)			(15,366	)
Increase in income taxes payable		107				396
Increase in deferred pension and postretirement benefits		573				2,351
Decrease in other long-term liabilities		(181	)			(143	)
Other, net		(276	)			250
Cash provided by operating activities		47,561				30,036
Investing activities:
Capital expenditures		(20,673	)			(16,984	)
Proceeds from disposition of capital assets		131				315
Cash used for investing activities		(20,542	)			(16,669	)
Financing activities:
Borrowings under credit facilities		114,500				66,500
Repayments of credit facility borrowings		(119,000	)			(84,000	)
Repayments of other long-term debt		(791	)			(1,102	)
Common stock dividends paid		(7,910	)			(7,990	)
Issuance of common stock		2,954				2,710
Payroll tax paid to settle shares forfeited upon vesting of stock		(454	)			(330	)
Purchase of treasury stock		(6,693	)			(6,336	)
Cash used for financing activities		(17,394	)			(30,548	)
Effect of exchange rate changes on cash and cash equivalents		580				(1,171	)
Increase (decrease) in cash and cash equivalents		10,205				(18,352	)
Cash and cash equivalents at beginning of period		30,868				29,003
Cash and cash equivalents at end of period	$	41,073			$	10,651

QUANEX BUILDING PRODUCTS CORPORATIONFREE 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 July 31,								Nine Months Ended July 31,
			2020				2019				2020				2019
Cash provided by operating activities		$45,089				$29,893				$47,561				$30,036
Capital expenditures			(4,360	)			(3,962	)			(20,673	)			(16,984	)
Free Cash Flow		$40,729				$25,931				$26,888				$13,052

QUANEX BUILDING PRODUCTS CORPORATIONNON-GAAP FINANCIAL MEASURE DISCLOSURE(In thousands, except per share data)(Unaudited)

Reconciliation of Adjusted Net Income and Adjusted EPS		Three Months Ended									Three Months Ended									Nine Months Ended									Nine Months Ended
		July 31, 2020									July 31, 2019									July 31, 2020									July 31, 2019
		Net Income				Diluted EPS					Net Income				Diluted EPS					Net Income				Diluted EPS					Net (Loss) Income				Diluted EPS
Net income (loss) as reported		$	10,833			$	0.33				$	11,841			$	0.36				$	16,344			$	0.50				$	(15,782	)		$	(0.48	)
Reconciling items from below			280				0.01					1,809				0.05					2,387				0.07					33,595				1.02
Adjusted net income and adjusted EPS		$	11,113			$	0.34				$	13,650			$	0.41				$	18,731			$	0.57				$	17,813			$	0.54
Reconciliation of Adjusted EBITDA		Three Months EndedJuly 31, 2020									Three Months EndedJuly 31, 2019									Nine Months EndedJuly 31, 2020									Nine Months EndedJuly 31, 2019
		Reconciliation									Reconciliation									Reconciliation									Reconciliation
Net income (loss) as reported		$	10,833								$	11,841								$	16,344								$	(15,782	)
Income tax expense			4,345									4,958									6,898									5,926
Other, net			220									(259	)								(116	)								(461	)
Interest expense			1,165									2,570									4,310									7,614
Depreciation and amortization			11,060									12,182									35,851									37,158
EBITDA			27,623									31,292									63,287									34,455
Reconciling items from below			73									1,495									1,875									33,777
Adjusted EBITDA		$	27,696								$	32,787								$	65,162								$	68,232
Reconciling Items		Three Months EndedJuly 31, 2020									Three Months EndedJuly 31, 2019									Nine Months EndedJuly 31, 2020									Nine Months EndedJuly 31, 2019
		Income Statement				Reconciling Items					Income Statement				Reconciling Items					Income Statement				Reconciling Items					Income Statement				Reconciling Items
Net sales		$	212,096			$	-				$	238,461			$	-				$	596,168			$	-				$	653,472			$	-
Cost of sales			162,427				-					181,357				-					469,586				-					511,292				-
Selling, general and administrative			21,973				-					25,718				(1,401	)	(1)			62,818				(1,398	)	(1)			77,466				(3,518	)	(1)
Restructuring charges			73				(73	)	(2)			94				(94	)	(2)			477				(477	)	(2)			281				(281	)	(2)
Asset impairment charges			-				-					-				-					-				-					29,978				(29,978	)	(3)
EBITDA			27,623				73					31,292				1,495					63,287				1,875					34,455				33,777
Depreciation and amortization			11,060				-					12,182				-					35,851				(968	)	(4)			37,158				-
Operating income (loss)			16,563				73					19,110				1,495					27,436				2,843					(2,703	)			33,777
Interest expense			(1,165	)			-					(2,570	)			-					(4,310	)			-					(7,614	)			-
Other, net			(220	)			458		(5)			259				(112	)	(5)			116				390		(5)			461				(67	)	(5)
Income (loss) before income taxes			15,178				531					16,799				1,383					23,242				3,233					(9,856	)			33,710
Income tax expense			(4,345	)			(251	)	(6)			(4,958	)			426		(6)			(6,898	)			(846	)	(6)			(5,926	)			(115	)	(6)
Net income (loss)		$	10,833			$	280				$	11,841			$	1,809				$	16,344			$	2,387				$	(15,782	)		$	33,595
Diluted earnings (loss) per share		$	0.33								$	0.36								$	0.50								$	(0.48	)
(1) Transaction and advisory fees, $1.3 million related to executive severance charges in the nine months ended 2020, $1.2 million of executive severance charges in the three and nine months ended 2019, and $1.2 million of severance charges related to a reorganization in the nine months ended 2019.
(2) Restructuring charges relate to the closure of manufacturing plant facilities.
(3) Asset impairment charges relate to goodwill impairment in the North American Cabinet Components segment.
(4) Accelerated depreciation related to the closure of a North American Cabinet Components plant.
(5) Foreign currency transaction losses (gains).
(6) Impact on a with and without basis.

QUANEX BUILDING PRODUCTS CORPORATIONSELECTED SEGMENT DATA(In thousands)(Unaudited)

This table provides gross margin, 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				EU Fenestration				NA CabinetComponents				UnallocatedCorp & Other				Total
Three months ended July 31, 2020
Net sales		$	122,386			$	38,265			$	51,925			$	(480	)		$	212,096
Cost of sales			92,639				25,845				44,218				(275	)			162,427
Gross Margin			29,747				12,420				7,707				(205	)			49,669
Gross Margin %			24.3	%			32.5	%			14.8	%							23.4	%
Selling, general and administrative			11,922				4,748				4,634				669				21,973
Restructuring charges			71				-				2				-				73
Depreciation and amortization			5,371				2,307				3,264				118				11,060
Operating income (loss)			12,383				5,365				(193	)			(992	)			16,563
Depreciation and amortization			5,371				2,307				3,264				118				11,060
EBITDA			17,754				7,672				3,071				(874	)			27,623
Restructuring charges			71				-				2				-				73
Adjusted EBITDA		$	17,825			$	7,672			$	3,073			$	(874	)		$	27,696
Adjusted EBITDA Margin %			14.6	%			20.0	%			5.9	%							13.1	%
Three months ended July 31, 2019
Net sales		$	136,259			$	44,326			$	58,689			$	(813	)		$	238,461
Cost of sales			101,693				30,708				49,389				(433	)			181,357
Gross Margin			34,566				13,618				9,300				(380	)			57,104
Gross Margin %			25.4	%			30.7	%			15.8	%							23.9	%
Selling, general and administrative			11,950				6,038				4,484				3,246				25,718
Restructuring charges			94				-				-				-				94
Depreciation and amortization			6,578				2,213				3,258				133				12,182
Operating income (loss)			15,944				5,367				1,558				(3,759	)			19,110
Depreciation and amortization			6,578				2,213				3,258				133				12,182
EBITDA			22,522				7,580				4,816				(3,626	)			31,292
Transaction and advisory fees			-				-				-				250				250
Severance charges			-				-				-				1,151				1,151
Restructuring charges			94				-				-				-				94
Adjusted EBITDA		$	22,616			$	7,580			$	4,816			$	(2,225	)		$	32,787
Adjusted EBITDA Margin %			16.6	%			17.1	%			8.2	%							13.7	%
Nine months ended July 31, 2020
Net sales		$	341,432			$	104,230			$	152,634			$	(2,128	)		$	596,168
Cost of sales			266,489				72,055				132,259				(1,217	)			469,586
Gross Margin			74,943				32,175				20,375				(911	)			126,582
Gross Margin %			21.9	%			30.9	%			13.3	%							21.2	%
Selling, general and administrative			34,962				15,990				13,468				(1,602	)			62,818
Restructuring charges			228				-				249				-				477
Depreciation and amortization			18,311				7,045				10,139				356				35,851
Operating income (loss)			21,442				9,140				(3,481	)			335				27,436
Depreciation and amortization			18,311				7,045				10,139				356				35,851
EBITDA			39,753				16,185				6,658				691				63,287
Transaction and advisory fees			-				-				-				55				55
Executive severance charges			-				-				-				1,343				1,343
Restructuring charges			228				-				249				-				477
Adjusted EBITDA		$	39,981			$	16,185			$	6,907			$	2,089			$	65,162
Adjusted EBITDA Margin %			11.7	%			15.5	%			4.5	%							10.9	%
Nine months ended July 31, 2019
Net sales		$	360,654			$	121,203			$	175,377			$	(3,762	)		$	653,472
Cost of sales			278,877				84,139				150,944				(2,668	)			511,292
Gross Margin			81,777				37,064				24,433				(1,094	)			142,180
Gross Margin %			22.7	%			30.6	%			13.9	%							21.8	%
Selling, general and administrative			37,240				17,444				13,914				8,868				77,466
Restructuring charges			281				-				-				-				281
Depreciation and amortization			20,208				6,669				9,902				379				37,158
Asset impairment charges			-				-				29,978				-				29,978
Operating income (loss)			24,048				12,951				(29,361	)			(10,341	)			(2,703	)
Depreciation and amortization			20,208				6,669				9,902				379				37,158
EBITDA			44,256				19,620				(19,459	)			(9,962	)			34,455
Asset impairment charges			-				-				29,978				-				29,978
Transaction and advisory fees			-				-				-				1,217				1,217
Severance related to reorganization			-				-				-				2,301				2,301
Restructuring charges			281				-				-				-				281
Adjusted EBITDA		$	44,537			$	19,620			$	10,519			$	(6,444	)		$	68,232
Adjusted EBITDA Margin %			12.3	%			16.2	%			6.0	%							10.4	%

QUANEX BUILDING PRODUCTS CORPORATIONSALES ANALYSIS(In thousands)(Unaudited)

		Three Months Ended								Nine Months Ended
		July 31, 2020				July 31, 2019				July 31, 2020				July 31, 2019
NA Fenestration:
	United States - fenestration	$	109,455			$	119,481			$	302,094			$	312,509
	International - fenestration		6,696				7,172				19,284				23,474
	United States - non-fenestration		4,845				3,982				13,779				12,290
	International - non-fenestration		1,390				5,624				6,275				12,381
		$	122,386			$	136,259			$	341,432			$	360,654
EU Fenestration (1):
	International - fenestration	$	31,904			$	36,342			$	87,732			$	102,038
	International - non-fenestration		6,361				7,984				16,498				19,165
		$	38,265			$	44,326			$	104,230			$	121,203
NA Cabinet Components:
	United States - fenestration	$	2,666			$	3,561			$	8,461			$	9,909
	United States - non-fenestration		48,849				54,512				142,838				163,694
	International - non-fenestration		410				616				1,335				1,774
		$	51,925			$	58,689			$	152,634			$	175,377
Unallocated Corporate & Other:
	Eliminations	$	(480	)		$	(813	)		$	(2,128	)		$	(3,762	)
		$	(480	)		$	(813	)		$	(2,128	)		$	(3,762	)
Net Sales		$	212,096			$	238,461			$	596,168			$	653,472
(1) Reflects reduction of $0.4 million and $1.6 million in revenue associated with foreign currency exchange rate impacts for the three and nine months ended July 31, 2020, respectively.