Net sales for the third fiscal quarter increased 12% to $189.0 million compared with the same quarter of the prior fiscal year. Net sales for the first nine months of the current fiscal year increased 15% to $618.6 million from the comparable period of the prior fiscal year. The Company experienced growth in both the remodeling and new construction channels during the third quarter of fiscal year 2015, with new construction growth exceeding 15%.
Net income was $7.3 million ($0.45 per diluted share) for the third quarter of the current fiscal year compared with $2.9 million ($0.18 per diluted share) for the third quarter of the prior fiscal year. Exclusive of one-time tax credits, the Company generated $7.1 million ($0.44 per diluted share) of net income for the third quarter of the current fiscal year compared with $2.9 million ($0.18 per diluted share) for the same period of the prior fiscal year.
Net income for the first nine months of fiscal year 2015 was $24.2 million ($1.52 per diluted share) compared with $14.8 million ($0.95 per diluted share) for the same period of the prior fiscal year. Exclusive of one-time tax credits, the Company generated $23.0 million ($1.44 per diluted share) of net income for the first nine months of the current fiscal year compared with $14.8 million ($0.95 per diluted share) for the same period of the prior fiscal year.
Gross profit for the third quarter of the current fiscal year was 18.6% of net sales compared with 15.4% in the same quarter of the prior year. Gross profit for the first nine months of the current fiscal year was 17.7% of net sales compared with 17.1% for the same period in the prior year. Gross profit in the current quarter was favorably impacted by higher sales volume and improved operating efficiency. Gross profit for the first nine months of the current fiscal year was favorably impacted by higher sales volume and improved operating efficiency that was partially offset by material inflation and costs associated with crewing and infrastructure to support higher levels of sales and installation activity.
Selling, general and administrative costs for the third quarter of fiscal year 2015 were 12.8% of net sales compared with 12.4% in the same quarter of the prior year. Selling, general and administrative costs for the first nine months of the current fiscal year were 11.7% of net sales compared with 12.5% for the same period in the prior year. The increase in the Company's operating expense ratio in the current quarter was driven by higher performance based compensation costs. The improvement in the Company's operating expense ratio for the nine-month period was driven by favorable leverage from increased sales and on-going expense control.
The Company generated net cash from operating activities of $36.0 million during the first nine months of fiscal year 2015 compared with $23.5 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 and lower increases in customer receivables, which was partially offset by increases in inventory levels to support higher sales. Net cash used by investing activities was $43.5 million during the first nine months of the current fiscal year compared with $8.3 million during the same period of the prior year due primarily to a $29.5 million investment in short-term certificates of deposit and increased investment in property, plant and equipment. Net cash provided by financing activities decreased $9.5 million during the first nine months of the current fiscal year compared to the same period in the prior year, as the Company repurchased 163,326 shares of common stock at a cost of $5.1 million and proceeds from the exercise of stock options decreased $4.4 million.
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.
| AMERICAN WOODMARK CORPORATION | ||||
| Unaudited Financial Highlights | ||||
| (in thousands, except share data) | ||||
| Operating Results | ||||
| Three Months Ended | Nine Months Ended | |||
| January 31 | January 31 | |||
| 2015 | 2014 | 2015 | 2014 | |
| Net Sales | $ 188,963 | $ 169,033 | $ 618,573 | $ 537,660 |
| Cost of Sales & Distribution | 153,846 | 143,032 | 509,361 | 445,670 |
Gross Profit | 35,117 | 26,001 | 109,212 | 91,990 |
| Sales & Marketing Expense | 16,010 | 14,287 | 47,821 | 44,638 |
| G&A Expense | 8,054 | 6,564 | 24,710 | 22,555 |
| Restructuring Charges, net | 3 | 48 | 6 | 161 |
| Insurance Proceeds | — | — | — | (94) |
Operating Income | 11,050 | 5,102 | 36,675 | 24,730 |
| Interest & Other (Income) Expense | 74 | 149 | 323 | 464 |
| Income Tax Expense | 3,694 | 2,052 | 12,161 | 9,439 |
Net Income | 7,282 | 2,901 | 24,191 | 14,827 |
| Earnings Per Share: | ||||
| Weighted Average Shares Outstanding - Diluted | 16,131,140 | 15,827,666 | 15,953,420 | 15,595,342 |
| Income Per Diluted Share | $ 0.45 | $ 0.18 | $ 1.52 | $ 0.95 |
| Condensed Consolidated Balance Sheet | ||
| January 31 | April 30 | |
| 2015 | 2014 | |
| Cash & Cash Equivalents | $ 132,525 | $ 135,700 |
| Investments - certificates of deposit | 29,500 | — |
| Customer Receivables | 48,173 | 46,475 |
| Inventories | 34,871 | 31,523 |
| Other Current Assets | 12,573 | 11,718 |
Total Current Assets | 257,642 | 225,416 |
| Property, Plant & Equipment | 79,774 | 74,049 |
| Other Assets | 25,931 | 30,599 |
Total Assets | $ 363,347 | $ 330,064 |
| Current Portion - Long-Term Debt | $ 1,439 | $ 1,146 |
| Accounts Payable & Accrued Expenses | 76,857 | 75,273 |
Total Current Liabilities | 78,296 | 76,419 |
| Long-Term Debt | 20,274 | 20,453 |
| Other Liabilities | 38,495 | 42,647 |
Total Liabilities | 137,065 | 139,519 |
| Stockholders' Equity | 226,282 | 190,545 |
Total Liabilities & Stockholders' Equity | $ 363,347 | $ 330,064 |
| Condensed Consolidated Statements of Cash Flows | ||
| Nine Months Ended | ||
| January 31 | ||
| 2015 | 2014 | |
| Net Cash Provided by Operating Activities | $ 35,997 | $ 23,544 |
| Net Cash Used by Investing Activities | (43,516) | (8,277) |
| Free Cash Flow | (7,519) | 15,267 |
| Net Cash Provided by Financing Activities | 4,344 | 13,815 |
| Net Increase (Decrease) in Cash and Cash Equivalents | (3,175) | 29,082 |
| Cash and Cash Equivalents, Beginning of Period | 135,700 | 96,971 |
| Cash and Cash Equivalents, End of Period | $ 132,525 | $ 126,053 |
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SOURCE American Woodmark Corporation
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