Press Release

American Woodmark Corporation Announces Second Quarter Results

Authorizes Stock Repurchase

Company Release - 11/24/2015 6:30 AM ET

WINCHESTER, Va., Nov. 24, 2015 /PRNewswire/ -- American Woodmark Corporation (NASDAQ: AMWD) today announced results for its second fiscal quarter ended October 31, 2015.

Net sales for the second fiscal quarter increased 18% to $256.3 million compared with the same quarter of the prior fiscal year.  Net sales for the first six months of the current fiscal year increased 13% to $487.5 million from the comparable period of the prior fiscal year.  The Company experienced growth in all channels during the second quarter of fiscal year 2016.

Net income was $18.2 million ($1.10 per diluted share) for the second quarter of the current fiscal year compared with $7.7 million ($0.48 per diluted share) for the second quarter of the prior fiscal year.  Net income for the first six months of fiscal year 2016 was $33.3 million ($2.03 per diluted share) compared with $16.9 million ($1.07 per diluted share) for the same period of the prior fiscal year.

Gross profit for the second quarter of the current fiscal year was 21.9% of net sales compared with 17.0% in the same quarter of the prior year.  Gross profit for the first six months of the current fiscal year was 21.8% of net sales compared with 17.2% for the same period in the prior year.  Gross profit in the current quarter and the first six months of the current fiscal year was favorably impacted by higher sales volume and improved operating efficiency.  

Selling, general and administrative costs for the second quarter of fiscal year 2016 were 10.7% of net sales compared with 11.3% in the same quarter of the prior year.  Selling, general and administrative costs for the first six months of the current fiscal year were 11.1% of net sales compared with 11.2% 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 and on-going expense control.

The Company generated net cash from operating activities of $39.4 million during the first half of fiscal year 2016 compared with $18.6 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, lower increases in inventory levels and higher accrued expenses.  Net cash used by investing activities was $25.8 million during the first half of the current fiscal year compared with $26.0 million during the same period of the prior year due to a $16.5 million reduced investment in short-term certificates of deposit, which was partially offset by increased investment in promotional displays, property, plant and equipment of $16.4 million.  Net cash provided by financing activities of $1.9 million decreased $0.6 million during the first half of the current fiscal year compared to the same period in the prior year as the company repurchased 108,787 shares of common stock at a cost of $7.0 million, a $1.9 million reduction from the prior year, and proceeds from the exercise of stock options decreased $1.9 million.

On November 19, 2015, the Board of Directors authorized an additional stock repurchase program of up to $20 million of the Company's outstanding common shares.  This authorization is in addition to the stock repurchase program authorized on November 20, 2014.  Management expects to fund share repurchases using available cash and cash generated from operations.

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


Six Months Ended




October 31


October 31




2015


2014


2015


2014











Net Sales


$

256,292



$

217,693



$

487,490



$

429,610


Cost of Sales & Distribution


200,240



180,712



381,265



355,515



Gross Profit


56,052



36,981



106,225



74,095


Sales & Marketing Expense


16,783



16,296



32,502



31,811


G&A Expense


10,733



8,245



21,464



16,656


Restructuring Charges, net








3



Operating Income


28,536



12,440



52,259



25,625


Interest & Other (Income) Expense


3



118



5



249


Income Tax Expense


10,353



4,651



18,916



8,467



Net Income


$

18,180



$

7,671



$

33,338



$

16,909












Earnings Per Share:









Weighted Average Shares Outstanding - Diluted


16,472,645



15,960,236



16,446,937



15,864,560












Income Per Diluted Share


$

1.10



$

0.48



$

2.03



$

1.07


 

 

 


Condensed Consolidated Balance Sheet

(Unaudited)




October 31


 April 30




2015


2015







Cash & Cash Equivalents


$

164,972



$

149,541


Investments - certificates of deposit


29,250



35,500


Customer Receivables


61,205



46,142


Inventories


37,801



35,988


Other Current Assets


15,730



14,324



Total Current Assets


308,958



281,495


Property, Plant & Equipment


101,776



85,516


Other Assets


39,319



31,893



Total Assets


$

450,053



$

398,904








Current Portion - Long-Term Debt


$

1,541



$

1,457


Accounts Payable & Accrued Expenses


99,698



83,333



Total Current Liabilities


101,239



84,790


Long-Term Debt


21,033



21,498


Other Liabilities


60,854



62,774



Total Liabilities


183,126



169,062


Stockholders' Equity


266,927



229,842



Total Liabilities & Stockholders' Equity


$

450,053



$

398,904


 

 

Condensed Consolidated Statements of Cash Flows

(Unaudited)




Six Months Ended




October 31




2015


2014







Net Cash Provided by Operating Activities


$

39,350



$

18,637


Net Cash Used by Investing Activities


(25,795)



(25,984)


Net Cash Provided by Financing Activities


1,876



2,510


Net Increase (Decrease) in Cash and Cash Equivalents


15,431



(4,837)


Cash and Cash Equivalents, Beginning of Period


149,541



135,700








Cash and Cash Equivalents, End of Period


$

164,972



$

130,863


 

 

 

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SOURCE American Woodmark Corporation