Press Release

American Woodmark Corporation Announces Second Quarter Results

Company Release - 12/1/2017 6:01 AM ET

WINCHESTER, Va., Dec. 1, 2017 /PRNewswire/ -- American Woodmark Corporation (NASDAQ: AMWD) today announced results for its second fiscal quarter ended October 31, 2017.

Second Fiscal Quarter Ended October 31, 2017 Results

Net sales for the second fiscal quarter increased 4% to $274.8 million compared with the same quarter of the prior fiscal year.  Net sales for the first six months of the current fiscal year increased 6% to $551.6 million from the comparable period of the prior fiscal year.  The Company experienced growth in both the new construction and dealer channels during the second quarter of fiscal year 2018.

Net income was $19.8 million ($1.21 per diluted share) for the second quarter of the current fiscal year compared with $17.6 million ($1.07 per diluted share) in the same quarter of the prior fiscal year.  The Company was negatively impacted $0.02 per diluted share in the quarter due to a reduction in the domestic production deduction benefit resulting from discretionary pension contributions approved during the quarter.  Net income for the first six months of the current fiscal year was $42.0 million ($2.58 per diluted share) compared with $39.3 million ($2.39 per diluted share) for the same period of the prior fiscal year.

Gross profit for the second quarter of the current fiscal year was 20.9% of net sales compared with 21.3% in the same quarter of the prior fiscal year.  Gross profit for the first six months of the current fiscal year was 21.0% of net sales compared with 22.1% for the same period in the prior year.  Gross profit in the current quarter was impacted by higher transportation costs and material inflation.  Gross profit for the first six months of the current fiscal year was unfavorably impacted by higher transportation costs, material inflation and higher healthcare costs.

Selling, general and administrative costs for the second quarter of the fiscal year 2018 were 9.7% of net sales compared with 10.5% in the same quarter of the prior fiscal year.  Selling, general and administrative costs for the first six months of the current fiscal year were 9.8% of net sales compared with 10.5% 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, lower incentive compensation costs and on-going expense control.

The Company generated net cash from operating activities of $41.8 million during the first half of fiscal year 2018 compared with $40.1 million during the same period in the prior year.  The increase in the Company's cash from operating activities was driven primarily by lower increases in customer receivables and higher operating profitability which was partially offset by higher inventories to support increased sales and lower increases in accounts payable.  Net cash used by investing activities was $31.1 million during the first half of the current fiscal year compared with $50.4 million during the same period of the prior year due to a $28.5 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 $25.1 million increased $16.6 million during the first half of the current fiscal year compared to the same period in the prior year as the company repurchased 251,241 shares of common stock at a cost of $23.5 million, a $13.1 million increase from the prior year, and proceeds from the exercise of stock options decreased $1.0 million.

Agreement to Acquire RSI Home Products, Inc.

Earlier today American Woodmark Corporation publicly announced that it has entered into a definitive agreement and plan of merger with RSI Home Products, Inc. ("RSI"), a leading manufacturer of kitchen and bath cabinetry and home storage products.  The Company will host a conference call with investors, December 1, 2017 at 11:00 EST to discuss the second quarter results and the agreement to acquire RSI.  The live broadcast of American Woodmark Corporation's conference call will be available on-line at: www.americanwoodmark.com on Friday, December 1, beginning at 11:00 a.m. (Eastern Time). The online replay will follow immediately and continue for 30 days.  A telephonic replay will be available from 2:00 p.m. (Eastern Time) December 1 through 2:00 p.m. (Eastern Time) December 12, by dialing 719-457-0820 and entering passcode 9813605.  A presentation, which will accompany the call, will be available at www.americanwoodmark.com and will remain available after the call.

About American Woodmark Corporation

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.

Forward-Looking Statements

Safe harbor statement under the Private Securities Litigation Reform Act of 1995: All forward-looking 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




2017


2016


2017


2016











Net sales


$

274,769



$

264,076



$

551,596



$

522,226

Cost of sales & distribution


217,434



207,924



435,767



406,757


Gross profit


57,335



56,152



115,829



115,469

Sales & marketing expense


18,077



17,146



36,230



33,609

General & administrative expense


8,443



10,675



17,950



21,607


Operating income


30,815



28,331



61,649



60,253

Interest expense & other income


(648)



(99)



(1,186)



(137)

Income tax expense


11,708



10,793



20,799



21,092


Net income


$

19,755



$

17,637



$

42,036



$

39,298











Earnings Per Share:









Weighted average shares outstanding - diluted


16,268,078



16,440,321



16,319,224



16,410,652











Income per diluted share


$

1.21



$

1.07



$

2.58



$

2.39

 

 

Condensed Consolidated Balance Sheet

(Unaudited)




October 31


 April 30




2017


2017







Cash & cash equivalents


$

162,545



$

176,978


Investments - certificates of deposit


57,500



51,750


Customer receivables


66,211



63,115


Inventories


46,723



42,859


Other current assets


9,189



4,526



Total current assets


342,168



339,228


Property, plant & equipment


121,732



107,933


Investments - certificates of deposit


24,250



20,500


Other assets


25,155



33,612



Total assets


$

513,305



$

501,273








Current portion - long-term debt


$

1,710



$

1,598


Accounts payable & accrued expenses


98,500



99,899



Total current liabilities


100,210



101,497


Long-term debt


16,087



15,279


Other liabilities


21,865



32,048



Total liabilities


138,162



148,824


Stockholders' equity


375,143



352,449



Total liabilities & stockholders' equity


$

513,305



$

501,273












 

 

Condensed Consolidated Statements of Cash Flows

(Unaudited)




Six Months Ended




October 31




2017


2016







Net cash provided by operating activities


$

41,838



$

40,146


Net cash used by investing activities


(31,136)



(50,417)


Net cash used by financing activities


(25,135)



(8,548)


Net decrease in cash and cash equivalents


(14,433)



(18,819)


Cash and cash equivalents, beginning of period


176,978



174,463








Cash and cash equivalents, end of period


$

162,545



$

155,644


 

 

View original content:http://www.prnewswire.com/news-releases/american-woodmark-corporation-announces-second-quarter-results-300564939.html

SOURCE American Woodmark Corporation