American Woodmark Corporation announces second quarter results

WINCHESTER, Va., Nov. 24, 2015 /PRNewswire/ -- American Woodmark Corporation (NASDAQ: AMWD) today announced results for its second fiscal quarter ended October 31, 2015.

Net sales for the second fiscal quarter increased 18% to $256.3 million compared with the same quarter of the prior fiscal year.  Net sales for the first six months of the current fiscal year increased 13% to $487.5 million from the comparable period of the prior fiscal year.  The Company experienced growth in all channels during the second quarter of fiscal year 2016.

Net income was $18.2 million ($1.10 per diluted share) for the second quarter of the current fiscal year compared with $7.7 million ($0.48 per diluted share) for the second quarter of the prior fiscal year.  Net income for the first six months of fiscal year 2016 was $33.3 million ($2.03 per diluted share) compared with $16.9 million ($1.07 per diluted share) for the same period of the prior fiscal year.

Gross profit for the second quarter of the current fiscal year was 21.9% of net sales compared with 17.0% in the same quarter of the prior year.  Gross profit for the first six months of the current fiscal year was 21.8% of net sales compared with 17.2% for the same period in the prior year.  Gross profit in the current quarter and the first six months of the current fiscal year was favorably impacted by higher sales volume and improved operating efficiency.  

Selling, general and administrative costs for the second quarter of fiscal year 2016 were 10.7% of net sales compared with 11.3% in the same quarter of the prior year.  Selling, general and administrative costs for the first six months of the current fiscal year were 11.1% of net sales compared with 11.2% for the same period in the prior year.  The improvement in the Company's operating expense ratio in the current quarter and the first six months of the current fiscal year was driven by favorable leverage from increased sales and on-going expense control.

The Company generated net cash from operating activities of $39.4 million during the first half of fiscal year 2016 compared with $18.6 million during the same period in the prior year.  The improvement in the Company's cash from operating activities was driven primarily by higher operating profitability, lower increases in inventory levels and higher accrued expenses.  Net cash used by investing activities was $25.8 million during the first half of the current fiscal year compared with $26.0 million during the same period of the prior year due to a $16.5 million reduced investment in short-term certificates of deposit, which was partially offset by increased investment in promotional displays, property, plant and equipment of $16.4 million.  Net cash provided by financing activities of $1.9 million decreased $0.6 million during the first half of the current fiscal year compared to the same period in the prior year as the company repurchased 108,787 shares of common stock at a cost of $7.0 million, a $1.9 million reduction from the prior year, and proceeds from the exercise of stock options decreased $1.9 million.

On November 19, 2015, the Board of Directors authorized an additional stock repurchase program of up to $20 million of the Company's outstanding common shares.  This authorization is in addition to the stock repurchase program authorized on November 20, 2014.  Management expects to fund share repurchases using available cash and cash generated from operations.

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 nine manufacturing facilities and seven service centers across the country.

Safe harbor statement under the Private Securities Litigation Reform Act of 1995: All forward‑looking 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.

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SOURCE American Woodmark Corporation