Press release

American Woodmark Corporation announces third quarter results

February 27, 2017

WINCHESTER, Va., Feb. 27, 2017 /PRNewswire/ -- American Woodmark Corporation (NASDAQ: AMWD) today announced results for its third fiscal quarter ended January 31, 2017.

Net sales for the third fiscal quarter increased 14% to $249.3 million compared with the same quarter of the prior fiscal year.  Net sales for the first nine months of the current fiscal year increased 9% to $771.5 million from the comparable period of the prior fiscal year.  The Company experienced growth in both the new construction and remodel channels during the third quarter of fiscal year 2017.

Net income was $14.6 million ($0.89 per diluted share) for the third quarter of the current fiscal year compared with $12.0 million ($0.73 per diluted share) in the same quarter of the prior fiscal year.  Net income for the first nine months of the current fiscal year was $53.9 million ($3.28 per diluted share) compared with $45.4 million ($2.76 per diluted share) for the same period of the prior fiscal year.

Gross profit for the third quarter of the current fiscal year was 20.7% of net sales compared with 20.4% in the same quarter of the prior fiscal year.  Gross profit for the first nine months of the current fiscal year was 21.7% of net sales compared with 21.4% 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, lower labor benefit costs and improved operating efficiency.  

Selling, general and administrative costs for the third quarter of the fiscal year 2017 were 12.0% of net sales compared with 11.8% in the same quarter of the prior fiscal year.  Selling, general and administrative costs for the first nine months of the current fiscal year were 11.1% of net sales compared with 11.3% for the same period in the prior year.  The Company's expense ratio was negatively impacted in the current quarter due to increased spending on product launches and non-recurring lease exit costs.  The improvement in the Company's operating expense ratio in the first nine 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 $51.7 million during the first nine months of fiscal year 2017 compared with $53.6 million during the same period in the prior year.  The decrease in the Company's cash from operating activities was driven primarily by higher discretionary contributions to the Company's pension plans, which was partially offset by higher operating profitability.  Net cash used by investing activities was $51.7 million during the first nine months of the current fiscal year compared with $33.7 million during the same period of the prior year due to an increased net investment of $29.3 million in certificates of deposit, which was partially offset by decreased investment in property, plant and equipment.  Net cash used by financing activities of $11.2 million increased $6.4 million during the first nine months of the current fiscal year compared to the same period in the prior year as the company repurchased 178,118 shares of common stock at a cost of $13.4 million, a $1.4 million increase from the prior year, and proceeds from the exercise of stock options decreased $5.4 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

     

2017

 

2016

 

2017

 

2016

                   

Net Sales

 

$

249,285

   

$

218,632

   

$

771,511

   

$

706,122

 

Cost of Sales & Distribution

 

197,689

   

174,034

   

604,446

   

555,299

 
 

Gross Profit

 

51,596

   

44,598

   

167,065

   

150,823

 

Sales & Marketing Expense

 

18,519

   

16,674

   

52,128

   

49,176

 

G&A Expense

 

11,476

   

9,183

   

33,083

   

30,647

 
 

Operating Income

 

21,601

   

18,741

   

81,854

   

71,000

 

Interest & Other (Income) Expense

 

(172)

   

58

   

(309)

   

63

 

Income Tax Expense

 

7,220

   

6,670

   

28,312

   

25,586

 
 

Net Income

 

$

14,553

   

$

12,013

   

$

53,851

   

$

45,351

 

 

Earnings Per Share:

               

Weighted Average Shares Outstanding - Diluted

 

16,381,223

   

16,457,308

   

16,400,842

   

16,450,394

 
                   

Income Per Diluted Share

 

$

0.89

   

$

0.73

   

$

3.28

   

$

2.76

 

 

Condensed Consolidated Balance Sheet

(Unaudited)

     

January 31

 

 April 30

     

2017

 

2016

           

Cash & Cash Equivalents

 

$

163,216

   

$

174,463

 

Investments - certificates of deposit

 

56,750

   

25,750

 

Customer Receivables

 

59,488

   

55,813

 

Inventories

 

41,268

   

39,319

 

Other Current Assets

 

7,015

   

6,864

 
 

Total Current Assets

 

327,737

   

302,209

 

Property, Plant & Equipment

 

103,123

   

99,332

 

Investments - certificates of deposit

 

21,500

   

18,250

 

Other Assets

 

37,999

   

46,569

 
 

Total Assets

 

$

490,359

   

$

466,360

 
           

Current Portion - Long-Term Debt

 

$

1,577

   

$

1,574

 

Accounts Payable & Accrued Expenses

 

94,559

   

90,739

 
 

Total Current Liabilities

 

96,136

   

92,313

 

Long-Term Debt

 

24,463

   

22,145

 

Other Liabilities

 

41,716

   

71,141

 
 

Total Liabilities

 

162,315

   

185,599

 

Stockholders' Equity

 

328,044

   

280,761

 
 

Total Liabilities & Stockholders' Equity

 

$

490,359

   

$

466,360

 

 

Condensed Consolidated Statements of Cash Flows

(Unaudited)

     

Nine Months Ended

     

January 31

     

2017

 

2016

           

Net Cash Provided by Operating Activities

 

$

51,664

   

$

53,561

 

Net Cash Used by Investing Activities

 

(51,734)

   

(33,679)

 

Net Cash Used by Financing Activities

 

(11,177)

   

(4,744)

 

Net (Decrease) Increase in Cash and Cash Equivalents

 

(11,247)

   

15,138

 

Cash and Cash Equivalents, Beginning of Period

 

174,463

   

149,541

 
           

Cash and Cash Equivalents, End of Period

 

$

163,216

   

$

164,679

 

 

To view the original version on PR Newswire, visit: http://www.prnewswire.com/news-releases/american-woodmark-corporation-announces-third-quarter-results-300413506.html

SOURCE American Woodmark Corporation

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