Press Release

American Woodmark Corporation Announces Third Quarter Results

Company Release - 2/25/2016 6:30 AM ET

WINCHESTER, Va., Feb. 25, 2016 /PRNewswire/ -- American Woodmark Corporation (NASDAQ: AMWD) today announced results for its third fiscal quarter ended January 31, 2016.

Net sales for the third fiscal quarter increased 16% to $218.6 million compared with the same quarter of the prior fiscal year.  Net sales for the first nine months of the current fiscal year increased 14% to $706.1 million from the comparable period of the prior fiscal year.  The Company experienced growth in all channels during the third quarter of fiscal year 2016.

Net income was $12.0 million ($0.73 per diluted share) for the third quarter of the current fiscal year compared with $7.3 million ($0.45 per diluted share) for the third quarter of the prior fiscal year.  Net income for the first nine months of fiscal year 2016 was $45.4 million ($2.76 per diluted share) compared with $24.2 million ($1.52 per diluted share) for the same period of the prior fiscal year.

Gross profit for the third quarter of the current fiscal year was 20.4% of net sales compared with 18.6% in the same quarter of the prior year.  Gross profit for the first nine months of the current fiscal year was 21.4% of net sales compared with 17.7% for the same period in the prior year.  Gross profit in the current quarter and the first nine months of the current fiscal year was favorably impacted by higher sales volume and improved operating efficiency.  

Selling, general and administrative costs for the third quarter of fiscal year 2016 were 11.8% of net sales compared with 12.8% in the same quarter of the prior year.  Selling, general and administrative costs for the first nine months of the current fiscal year were 11.3% of net sales compared with 11.7% for the same period in the prior year.  The improvement in the Company's operating expense ratio in the current quarter and the first nine 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 $50.9 million during the first nine months of fiscal year 2016 compared with $36.0 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, which was partially offset by higher customer receivables, accounts payable and accrued expenses consistent with higher sales.  Net cash used by investing activities was $33.7 million during the first nine months of the current fiscal year compared with $43.5 million during the same period of the prior year due to a $24.5 million reduced investment in certificates of deposit, which was partially offset by increased investment in promotional displays and property, plant and equipment of $14.7 million.  Net cash used by financing activities of $2.1 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 176,343 shares of common stock at a cost of $12.0 million, a $6.9 million increase from the prior year.

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


Nine Months Ended




January 31


January 31




2016


2015


2016


2015











Net Sales


$

218,632



$

188,963



$

706,122



$

618,573


Cost of Sales & Distribution


174,034



153,846



555,299



509,361



Gross Profit


44,598



35,117



150,823



109,212


Sales & Marketing Expense


16,674



16,010



49,176



47,821


G&A Expense


9,183



8,054



30,647



24,710


Restructuring Charges, net




3





6



Operating Income


18,741



11,050



71,000



36,675


Interest & Other (Income) Expense


58



74



63



323


Income Tax Expense


6,670



3,694



25,586



12,161



Net Income


$

12,013



$

7,282



$

45,351



$

24,191












Earnings Per Share:









Weighted Average Shares Outstanding - Diluted


16,457,308



16,131,140



16,450,394



15,953,420












Income Per Diluted Share


$

0.73



$

0.45



$

2.76



$

1.52


 

 


Condensed Consolidated Balance Sheet

(Unaudited)





January 31


 April 30




2016


2015







Cash & Cash Equivalents


$

164,679



$

149,541


Investments - certificates of deposit


23,000



35,500


Customer Receivables


49,529



46,142


Inventories


38,096



35,988


Other Current Assets


19,536



14,324



Total Current Assets


294,840



281,495


Property, Plant & Equipment


102,869



85,516


Investments - certificates of deposit


17,500




Other Assets


31,507



31,893



Total Assets


$

446,716



$

398,904








Current Portion - Long-Term Debt


$

1,574



$

1,457


Accounts Payable & Accrued Expenses


86,265



83,333



Total Current Liabilities


87,839



84,790


Long-Term Debt


23,634



21,498


Other Liabilities


57,452



62,774



Total Liabilities


168,925



169,062


Stockholders' Equity


277,791



229,842



Total Liabilities & Stockholders' Equity


$

446,716



$

398,904


 

 

Condensed Consolidated Statements of Cash Flows

(Unaudited)




Nine Months Ended




January 31




2016


2015







Net Cash Provided by Operating Activities


$

50,923



$

35,997


Net Cash Used by Investing Activities


(33,679)



(43,516)


Net Cash Provided (Used) by Financing Activities


(2,106)



4,344


Net Increase (Decrease) in Cash and Cash Equivalents


15,138



(3,175)


Cash and Cash Equivalents, Beginning of Period


149,541



135,700








Cash and Cash Equivalents, End of Period


$

164,679



$

132,525


 

 

 

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SOURCE American Woodmark Corporation