Press Release

American Woodmark Corporation Announces First Quarter Results

Company Release - 8/23/2016 6:30 AM ET

WINCHESTER, Va., Aug. 23, 2016 /PRNewswire/ -- American Woodmark Corporation (NASDAQ: AMWD) today announced results for its first fiscal quarter ended July 31, 2016.

Net sales for the first fiscal quarter increased 12% to $258.2 million compared with the same quarter of the prior fiscal year.  The Company experienced growth in all channels during the first quarter of fiscal year 2017.

Net income was $21.7 million ($1.32 per diluted share) for the first quarter of the current fiscal year compared with $15.2 million ($0.92 per diluted share) for the first quarter of the prior fiscal year.  The Company benefited $0.06 per diluted share from a lower tax rate in the quarter due to the adoption of a new accounting standard that requires companies to reflect the tax benefit from stock-based compensation transactions in their tax rate and earnings per share.

Gross profit for the first quarter of the current fiscal year was 23.0% of net sales compared with 21.7% in the same quarter of the prior year.  Gross profit in the current quarter was favorably impacted by higher sales volume, lower labor benefit costs and improved operating efficiency.

Selling, general and administrative costs for the first quarter of the fiscal year 2017 were 10.6% of net sales compared with 11.4% in the same quarter of the prior year.  The decrease in the Company's operating expense ratio was driven by favorable leverage from increased sales, lower display costs and on-going expense control.

The Company generated net cash from operating activities of $32.9 million during the first quarter of fiscal year 2017 compared with $17.7 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 and lower increases in customer receivables.  Net cash used by investing activities was $40.6 million during the first quarter of the current fiscal year compared with $15.3 million during the same period of the prior year due to a $35.0 million investment in certificates of deposit which was partially offset by decreased investment in property, plant and equipment.  Net cash used by financing activities of $4.3 million increased $5.4 million during the first quarter of the current fiscal year compared to the same period in the prior year as the company repurchased 72,400 shares of common stock at a cost of $5.1 million, a $3.3 million increase from the prior year, and proceeds from the exercise of stock options decreased $1.5 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 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




July 31




2016


2015







Net Sales


$

258,150



$

231,198


Cost of Sales & Distribution


198,833



181,025



Gross Profit


59,317



50,173


Sales & Marketing Expense


16,463



15,719


G&A Expense


10,932



10,731



Operating Income


31,922



23,723


Interest & Other (Income) Expense


(38)



2


Income Tax Expense


10,299



8,563



Net Income


$

21,661



$

15,158








Earnings Per Share:





Weighted Average Shares Outstanding - Diluted


16,380,983



16,421,230








Income Per Diluted Share


$

1.32



$

0.92


 

 

Condensed Consolidated Balance Sheet

(Unaudited)




July 31


April 30




2016


2016







Cash & Cash Equivalents


$

162,563



$

174,463


Investments - certificates of deposit


56,750



25,750


Customer Receivables


57,580



55,813


Inventories


39,954



39,319


Other Current Assets


5,726



6,864



Total Current Assets


322,573



302,209


Property, Plant & Equipment


100,354



99,332


Investments - certificates of deposit


22,250



18,250


Other Assets


45,417



46,902



Total Assets


$

490,594



$

466,693








Current Portion - Long-Term Debt


$

1,597



$

1,574


Accounts Payable & Accrued Expenses


95,182



90,739



Total Current Liabilities


96,779



92,313


Long-Term Debt


23,121



22,478


Other Liabilities


68,998



71,141



Total Liabilities


188,898



185,932


Stockholders' Equity


301,696



280,761



Total Liabilities & Stockholders' Equity


$

490,594



$

466,693


 

 

Condensed Consolidated Statements of Cash Flows

(Unaudited)




Three Months Ended




July 31




2016


2015







Net Cash Provided by Operating Activities


$

32,947



$

17,655


Net Cash Used by Investing Activities


(40,571)



(15,295)


Net Cash (Used) Provided by Financing Activities


(4,276)



1,119


Net (Decrease) Increase in Cash and Cash Equivalents


(11,900)



3,479


Cash and Cash Equivalents, Beginning of Period


174,463



149,541








Cash and Cash Equivalents, End of Period


$

162,563



$

153,020


 

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SOURCE American Woodmark Corporation