Press Release

American Woodmark Corporation Announces First Quarter Results

Company Release - 8/22/2017 6:30 AM ET

WINCHESTER, Va., Aug. 22, 2017 /PRNewswire/ -- American Woodmark Corporation (NASDAQ: AMWD) today announced results for its first fiscal quarter ended July 31, 2017.

Net sales for the first fiscal quarter increased 7% to $276.8 million compared with the same quarter of the prior fiscal year.  The Company experienced growth in both the new construction and dealer channels during the first quarter of fiscal year 2018.

Net income was $22.3 million ($1.36 per diluted share) for the first quarter of the current fiscal year compared with $21.7 million ($1.32 per diluted share) for the first quarter of the prior fiscal year.  The Company benefited $0.13 per diluted share in the first quarter of the current fiscal year and $0.06 per diluted share in the first quarter of the prior fiscal year from a lower tax rate due to a benefit from stock-based compensation transactions.

Gross profit for the first quarter of the current fiscal year was 21.1% of net sales compared with 23.0% in the same quarter of the prior year.  Gross profit in the current quarter was unfavorably impacted by higher transportation costs, material inflation and higher healthcare costs.  The prior year quarter benefited from an unusually low healthcare spend.

Selling, general and administrative costs for the first quarter of the current fiscal year were 10.0% of net sales compared with 10.6% 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 and lower incentive compensation costs.

The Company generated net cash from operating activities of $26.6 million during the first quarter of fiscal year 2018 compared with $32.9 million during the same period in the prior year.  The decline in the Company's cash from operating activities was driven primarily by higher inventories to support increased sales and lower increases in accounts payable.  Net cash used by investing activities was $21.2 million during the first quarter of the current fiscal year compared with $40.6 million during the same period of the prior year due to a $25.5 million reduced investment in certificates of deposit which was partially offset by increased investment in property, plant and equipment.  Net cash used by financing activities of $6.8 million increased $2.5 million during the first quarter of the current fiscal year compared to the same period in the prior year as the company repurchased 56,700 shares of common stock at a cost of $5.6 million, a $0.5 million increase from the prior year, and proceeds from the exercise of stock options decreased $0.8 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




2017


2016







Net Sales


$

276,827



$

258,150


Cost of Sales & Distribution


218,333



198,833



Gross Profit


58,494



59,317


Sales & Marketing Expense


18,153



16,463


G&A Expense


9,507



10,932



Operating Income


30,834



31,922


Interest & Other (Income) Expense


(538)



(38)


Income Tax Expense


9,091



10,299



Net Income


$

22,281



$

21,661








Earnings Per Share:





Weighted Average Shares Outstanding - Diluted


16,355,045



16,380,983








Income Per Diluted Share


$

1.36



$

1.32


 


 

Condensed Consolidated Balance Sheet

(Unaudited)




July 31


 April 30




2017


2017







Cash & Cash Equivalents


$

175,597



$

176,978


Investments - certificates of deposit


54,750



51,750


Customer Receivables


62,771



63,115


Inventories


44,477



42,859


Other Current Assets


4,828



4,526



Total Current Assets


342,423



339,228


Property, Plant & Equipment


115,427



107,933


Investments - certificates of deposit


27,000



20,500


Other Assets


32,359



33,612



Total Assets


$

517,209



$

501,273








Current Portion - Long-Term Debt


$

1,691



$

1,598


Accounts Payable & Accrued Expenses


97,473



99,899



Total Current Liabilities


99,164



101,497


Long-Term Debt


16,211



15,279


Other Liabilities


29,413



32,048



Total Liabilities


144,788



148,824


Stockholders' Equity


372,421



352,449



Total Liabilities & Stockholders' Equity


$

517,209



$

501,273


 

 

Condensed Consolidated Statements of Cash Flows

(Unaudited)




Three Months Ended




July 31




2017


2016







Net Cash Provided by Operating Activities


$

26,570



$

32,947


Net Cash Used by Investing Activities


(21,178)



(40,571)


Net Cash Used by Financing Activities


(6,773)



(4,276)


Net Decrease in Cash and Cash Equivalents


(1,381)



(11,900)


Cash and Cash Equivalents, Beginning of Period


176,978



174,463








Cash and Cash Equivalents, End of Period


$

175,597



$

162,563


 

 

 

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SOURCE American Woodmark Corporation