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
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SOURCE American Woodmark Corporation