Press Release

American Woodmark Corporation Announces Third Quarter Results

Company Release - 2/27/2017 6:30 AM ET

WINCHESTER, Va., Feb. 27, 2017 /PRNewswire/ -- American Woodmark Corporation (NASDAQ: AMWD) today announced results for its third fiscal quarter ended January 31, 2017.

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 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




2017


2016


2017


2016











Net Sales


$

249,285



$

218,632



$

771,511



$

706,122


Cost of Sales & Distribution


197,689



174,034



604,446



555,299



Gross Profit


51,596



44,598



167,065



150,823


Sales & Marketing Expense


18,519



16,674



52,128



49,176


G&A Expense


11,476



9,183



33,083



30,647



Operating Income


21,601



18,741



81,854



71,000


Interest & Other (Income) Expense


(172)



58



(309)



63


Income Tax Expense


7,220



6,670



28,312



25,586



Net Income


$

14,553



$

12,013



$

53,851



$

45,351












Earnings Per Share:









Weighted Average Shares Outstanding - Diluted


16,381,223



16,457,308



16,400,842



16,450,394












Income Per Diluted Share


$

0.89



$

0.73



$

3.28



$

2.76


 

 

Condensed Consolidated Balance Sheet

(Unaudited)




January 31


 April 30




2017


2016







Cash & Cash Equivalents


$

163,216



$

174,463


Investments - certificates of deposit


56,750



25,750


Customer Receivables


59,488



55,813


Inventories


41,268



39,319


Other Current Assets


7,015



6,864



Total Current Assets


327,737



302,209


Property, Plant & Equipment


103,123



99,332


Investments - certificates of deposit


21,500



18,250


Other Assets


37,999



46,569



Total Assets


$

490,359



$

466,360








Current Portion - Long-Term Debt


$

1,577



$

1,574


Accounts Payable & Accrued Expenses


94,559



90,739



Total Current Liabilities


96,136



92,313


Long-Term Debt


24,463



22,145


Other Liabilities


41,716



71,141



Total Liabilities


162,315



185,599


Stockholders' Equity


328,044



280,761



Total Liabilities & Stockholders' Equity


$

490,359



$

466,360


 

 

Condensed Consolidated Statements of Cash Flows

(Unaudited)




Nine Months Ended




January 31




2017


2016







Net Cash Provided by Operating Activities


$

51,664



$

53,561


Net Cash Used by Investing Activities


(51,734)



(33,679)


Net Cash Used by Financing Activities


(11,177)



(4,744)


Net (Decrease) Increase in Cash and Cash Equivalents


(11,247)



15,138


Cash and Cash Equivalents, Beginning of Period


174,463



149,541








Cash and Cash Equivalents, End of Period


$

163,216



$

164,679


 

 

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SOURCE American Woodmark Corporation