Press release

American Woodmark Corporation announces second quarter results

November 22, 2016

WINCHESTER, Va., Nov. 22, 2016 /PRNewswire/ -- American Woodmark Corporation (NASDAQ: AMWD) today announced results for its second fiscal quarter ended October 31, 2016.

Net sales for the second fiscal quarter increased 3% to $264.1 million compared with the same quarter of the prior fiscal year.  Net sales for the first six months of the current fiscal year increased 7% to $522.2 million from the comparable period of the prior fiscal year.  The Company experienced growth in both the new construction and dealer channels during the second quarter of fiscal year 2017.

Net income was $17.6 million ($1.07 per diluted share) for the second quarter of the current fiscal year compared with $18.2 million ($1.10 per diluted share) in the same quarter of the prior fiscal year.  The Company was negatively impacted $0.03 per diluted share from a higher tax rate in the quarter due to a reduction in the domestic production deduction benefit.  Net income for the first six months of the current fiscal year was $39.3 million ($2.39 per diluted share) compared with $33.3 million ($2.03 per diluted share) for the same period of the prior fiscal year.

Gross profit for the second quarter of the current fiscal year was 21.3% of net sales compared with 21.9% in the same quarter of the prior fiscal year.  Gross profit for the first six months of the current fiscal year was 22.1% of net sales compared with 21.8% for the same period in the prior year.  Gross profit in the current quarter was impacted by higher labor benefit costs and depreciation costs.  Gross profit for the first six months of the current fiscal year was favorably impacted by higher sales volume, lower labor benefit costs and improved operating efficiency.  

Selling, general and administrative costs for the second quarter of the fiscal year 2017 were 10.5% of net sales compared with 10.7% in the same quarter of the prior fiscal year.  Selling, general and administrative costs for the first six months of the current fiscal year were 10.6% of net sales compared with 11.1% 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, lower commissions and on-going expense control.

The Company generated net cash from operating activities of $40.1 million during the first half of fiscal year 2017 compared with $42.0 million during the same period in the prior year.  The decrease in the Company's cash from operating activities was driven primarily by lower increases in accounts payables and accrued expenses which was partially offset by lower increases in customer receivables and higher operating profitability.  Net cash used by investing activities was $50.4 million during the first half of the current fiscal year compared with $25.8 million during the same period of the prior year due to an increased investment of $36.5 million in certificates of deposit which was partially offset by decreased investment in property, plant and equipment.  Net cash used by financing activities of $8.5 million increased $7.8 million during the first half of the current fiscal year compared to the same period in the prior year as the company repurchased 139,800 shares of common stock at a cost of $10.4 million, a $3.4 million increase from the prior year, and proceeds from the exercise of stock options decreased $3.7 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

 

Six Months Ended

     

October 31

 

October 31

     

2016

 

2015

 

2016

 

2015

                   

Net Sales

 

$

264,076

   

$

256,292

   

$

522,226

   

$

487,490

 

Cost of Sales & Distribution

 

207,924

   

200,240

   

406,757

   

381,265

 
 

Gross Profit

 

56,152

   

56,052

   

115,469

   

106,225

 

Sales & Marketing Expense

 

17,146

   

16,783

   

33,609

   

32,502

 

G&A Expense

 

10,675

   

10,733

   

21,607

   

21,464

 
 

Operating Income

 

28,331

   

28,536

   

60,253

   

52,259

 

Interest & Other (Income) Expense

 

(99)

   

3

   

(137)

   

5

 

Income Tax Expense

 

10,793

   

10,353

   

21,092

   

18,916

 
 

Net Income

 

$

17,637

   

$

18,180

   

$

39,298

   

$

33,338

 

 

Earnings Per Share:

               

Weighted Average Shares Outstanding - Diluted

 

16,440,321

   

16,472,645

   

16,410,652

   

16,446,937

 
                   

Income Per Diluted Share

 

$

1.07

   

$

1.10

   

$

2.39

   

$

2.03

 

 

Condensed Consolidated Balance Sheet

(Unaudited)

 
     

October 31

 

 April 30

     

2016

 

2016

           

Cash & Cash Equivalents

 

$

155,644

   

$

174,463

 

Investments - certificates of deposit

 

59,500

   

25,750

 

Customer Receivables

 

68,334

   

55,813

 

Inventories

 

40,744

   

39,319

 

Other Current Assets

 

8,669

   

6,864

 
 

Total Current Assets

 

332,891

   

302,209

 

Property, Plant & Equipment

 

103,222

   

99,332

 

Investments - certificates of deposit

 

22,500

   

18,250

 

Other Assets

 

35,897

   

46,569

 
 

Total Assets

 

$

494,510

   

$

466,360

 

 

Current Portion - Long-Term Debt

 

$

1,594

   

$

1,574

 

Accounts Payable & Accrued Expenses

 

94,672

   

90,739

 
 

Total Current Liabilities

 

96,266

   

92,313

 

Long-Term Debt

 

23,902

   

22,145

 

Other Liabilities

 

59,073

   

71,141

 
 

Total Liabilities

 

179,241

   

185,599

 

Stockholders' Equity

 

315,269

   

280,761

 
 

Total Liabilities & Stockholders' Equity

 

$

494,510

   

$

466,360

 

 

Condensed Consolidated Statements of Cash Flows

(Unaudited)

     

Six Months Ended

     

October 31

     

2016

 

2015

           

Net Cash Provided by Operating Activities

 

$

40,146

   

$

41,988

 

Net Cash Used by Investing Activities

 

(50,417)

   

(25,795)

 

Net Cash Used by Financing Activities

 

(8,548)

   

(762)

 

Net (Decrease) Increase in Cash and Cash Equivalents

 

(18,819)

   

15,431

 

Cash and Cash Equivalents, Beginning of Period

 

174,463

   

149,541

 
           

Cash and Cash Equivalents, End of Period

 

$

155,644

   

$

164,972

 

 

To view the original version on PR Newswire, visit: http://www.prnewswire.com/news-releases/american-woodmark-corporation-announces-second-quarter-results-300366983.html

SOURCE American Woodmark Corporation

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