Press Release

American Woodmark Corporation Announces Fourth Quarter Results

Company Release - 5/30/2017 6:30 AM ET

WINCHESTER, Va., May 30, 2017 /PRNewswire/ -- American Woodmark Corporation (NASDAQ: AMWD) today announced results for its fourth fiscal quarter ended April 30, 2017.

Net sales for the fourth fiscal quarter increased 7% to $258.7 million compared with the same quarter of the prior fiscal year.  Net sales for the full fiscal year increased 9% to $1,030.2 million from the comparable period of the prior fiscal year.  The Company experienced growth in all channels during the fourth quarter of fiscal year 2017.

Net income was $17.3 million ($1.06 per diluted share) for the fourth quarter of the current fiscal year compared with $13.4 million ($0.81 per diluted share) for the fourth quarter of the prior fiscal year.  Exclusive of after-tax non-operating charges related to corporate business development expenses in fiscal 2017 and idle land disposal in fiscal 2016, the Company generated $18.6 million ($1.13 per diluted share) of net income for the fourth quarter of the current fiscal year compared with $14.2 million ($0.86 per diluted share) for the same period of the prior fiscal year.

Net income for the entire fiscal year 2017 was $71.2 million ($4.34 per diluted share) compared with $58.7 million ($3.57 per diluted share) for the same period of the prior fiscal year.  Exclusive of after-tax non-operating charges related to corporate business development expenses in fiscal 2017 and idle land disposal in fiscal 2016, the Company generated $72.9 million ($4.45 per diluted share) of net income for the entire current fiscal year compared with $59.5 million ($3.62 per diluted share) for the same period of the prior fiscal year.

Gross profit for the fourth quarter of the current fiscal year was 22.3% of net sales compared with 20.3% in the same quarter of the prior year.  Gross profit for the entire current fiscal year was 21.8% of net sales compared with 21.1% for the same period in the prior year.  Gross profit in the current quarter and 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 fourth quarter of fiscal year 2017 were 12.1% of net sales compared with 11.1% in the same quarter of the prior year.  Selling, general and administrative costs for the entire current fiscal year were 11.3% of net sales compared with 11.2% for the same period in the prior year.  The Company's expense ratio was negatively impacted in the current quarter and fiscal year by corporate business development expenses related to a potential M&A target that we ultimately decided not to pursue.

The Company generated net cash from operating activities of $77.1 million during the current fiscal year compared with $74.6 million during the same period in the prior year.  The increase in the Company's cash from operating activities was driven primarily by higher operating profitability and accrued expenses which was partially offset by higher discretionary contributions to the Company's pension plans.  Net cash used by investing activities was $53.7 million during the current fiscal year compared with $40.8 million during the same period of the prior year due to an increased net investment of $28.3 million in certificates of deposit, which was partially offset by decreased investment in property, plant and equipment.  Net cash used by financing activities of $20.8 million increased $11.9 million during the current fiscal year compared to the same period in the prior year as the company reduced long-term debt by $7.2 million and realized a $5.7 million decrease in proceeds from the exercise of stock options.  This impact was partially offset by a $3.2 million decrease in repurchases of common stock.

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 forwardlooking 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


Twelve Months Ended




April 30


April 30




2017


2016


2017


2016











Net Sales


$

258,737



$

240,923



$

1,030,248



$

947,045


Cost of Sales & Distribution


201,166



192,052



805,612



747,351



Gross Profit


57,571



48,871



224,636



199,694


Sales & Marketing Expense


18,851



17,313



70,979



66,489


G&A Expense


12,336



9,398



45,419



40,045



Operating Income


26,384



22,160



108,238



93,160


Interest & Other (Income) Expense


(378)



1,311



(687)



1,374


Income Tax Expense


9,414



7,477



37,726



33,063



Net Income


$

17,348



$

13,372



$

71,199



$

58,723












Earnings Per Share:









Weighted Average Shares Outstanding - Diluted


16,389,578



16,415,321



16,398,240



16,441,571












Income Per Diluted Share


$

1.06



$

0.81



$

4.34



$

3.57


 

 


Condensed Consolidated Balance Sheet

(Unaudited)





April 30


 April 30




2017


2016







Cash & Cash Equivalents


$

176,978



$

174,463


Investments - certificates of deposit


51,750



25,750


Customer Receivables


63,115



55,813


Inventories


42,859



39,319


Other Current Assets


4,526



6,864



Total Current Assets


339,228



302,209


Property, Plant & Equipment


107,933



99,332


Investments - certificates of deposit


20,500



18,250


Other Assets


33,612



46,569



Total Assets


$

501,273



$

466,360








Current Portion - Long-Term Debt


$

1,598



$

1,574


Accounts Payable & Accrued Expenses


99,899



90,739



Total Current Liabilities


101,497



92,313


Long-Term Debt


15,279



22,145


Other Liabilities


32,048



71,141



Total Liabilities


148,824



185,599


Stockholders' Equity


352,449



280,761



Total Liabilities & Stockholders' Equity


$

501,273



$

466,360


 

 

Condensed Consolidated Statements of Cash Flows

(Unaudited)





Twelve Months Ended




April 30




2017


2016







Net Cash Provided by Operating Activities


$

77,080



$

74,604


Net Cash Used by Investing Activities


(53,744)



(40,773)


Net Cash Used by Financing Activities


(20,821)



(8,909)


Net Increase in Cash and Cash Equivalents


2,515



24,922


Cash and Cash Equivalents, Beginning of Period


174,463



149,541








Cash and Cash Equivalents, End of Period


$

176,978



$

174,463


 

 

 

 

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SOURCE American Woodmark Corporation