WINCHESTER, Va., Nov. 25, 2014 /PRNewswire/ -- American Woodmark
Corporation (NASDAQ: AMWD) today announced results for its second
fiscal quarter ended October 31,
2014.
Net sales for the second fiscal quarter increased 14% to
$217.7 million compared with the same
quarter of the prior fiscal year. Net sales for the first six
months of the current fiscal year increased 17% to $429.6 million from the comparable period of the
prior fiscal year. The Company experienced growth in both the
remodeling and new construction channels during the second quarter
of fiscal year 2015, with new construction growth exceeding
20%.
Net income was $7.7 million
($0.48 per diluted share) for the
second quarter of the current fiscal year compared with
$5.3 million ($0.34 per diluted share) for the second quarter
of the prior fiscal year.
Net income for the first six months of fiscal year 2015 was
$16.9 million ($1.07 per diluted share) compared with
$11.9 million ($0.77 per diluted share) for the same period of
the prior fiscal year. Exclusive of one-time tax credits, the
Company generated $15.8 million
($1.00 per diluted share) of net
income for the first six months of the current fiscal year compared
with $11.9 million ($0.77 per diluted share) for the same period of
the prior fiscal year
Gross profit for the second quarter of the current fiscal year
was 17.0% of net sales compared with 16.9% in the same quarter of
the prior year. Gross profit for the first six months of the
current fiscal year was 17.2% of net sales compared with 17.9% 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 that was partially offset by material
inflation, costs associated with crewing and infrastructure to
support higher levels of sales and installation activity, costs
associated with new product launches and higher employee benefit
costs. Gross profit for the first six months of the current
fiscal year was favorably impacted by higher sales volume and
improved operating efficiency that was more than offset by material
inflation and costs associated with crewing and infrastructure to
support higher levels of sales and installation activity.
Selling, general and administrative costs for the second quarter
of fiscal year 2015 were 11.3% of net sales compared with 12.3% in
the same quarter of the prior year. Selling, general and
administrative costs for the first six months of the current fiscal
year were 11.2% of net sales compared with 12.5% for the same
period in the prior year. The improvement in the Company's
operating expense ratio was driven by favorable leverage from
increased sales and on-going expense control.
The Company generated net cash from operating activities of
$18.6 million during the first half
of fiscal year 2015 compared with $15.8
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 partially
offset by changes in working capital, which included increases in
inventory levels to support higher sales. Net cash used by
investing activities was $26.0
million during the first half of the current fiscal year
compared with $5.8 million during the
same period of the prior year due primarily to an $18.0 million investment in short-term
certificates of deposit and increased investment in property, plant
and equipment. Net cash provided by financing activities
decreased $9.0 million during the
first half of the current fiscal year compared to the same period
in the prior year as the company repurchased 163,326 shares of
common stock at a cost of $5.1
million and proceeds from the exercise of stock options
decreased $3.6 million.
On November 20, 2014, the Board of
Directors authorized an additional stock repurchase program of up
to $25 million of the Company's
outstanding common shares. Management expects to fund share
repurchases using available cash and cash generated from
operations.
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 nine service centers
across the country.
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
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Unaudited
Financial Highlights
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(in thousands, except
share data)
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Operating
Results
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Three Months
Ended
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Six Months
Ended
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October
31
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October
31
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2014
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2013
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2014
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2013
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Net Sales
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$
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217,693
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$
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190,532
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$
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429,610
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$
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368,627
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Cost of Sales &
Distribution
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180,712
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158,258
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355,515
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302,638
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Gross
Profit
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36,981
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32,274
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74,095
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65,989
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Sales & Marketing
Expense
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16,296
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15,867
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31,811
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30,351
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G&A
Expense
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8,245
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7,590
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16,656
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15,991
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Restructuring
Charges, net
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—
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31
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3
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113
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Insurance
Proceeds
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—
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—
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—
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(94)
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Operating
Income
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12,440
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8,786
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25,625
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19,628
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Interest & Other
(Income) Expense
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118
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155
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249
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315
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Income Tax
Expense
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4,651
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3,360
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8,467
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7,387
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Net Income
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$
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7,671
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$
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5,271
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$
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16,909
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$
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11,926
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Earnings Per
Share:
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Weighted Average
Shares Outstanding - Diluted
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15,960,236
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15,581,605
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15,864,560
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15,479,180
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Income Per Diluted
Share
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$
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0.48
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$
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0.34
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$
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1.07
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$
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0.77
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Condensed
Consolidated Balance Sheet
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October
31
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April
30
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2014
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2014
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Cash & Cash
Equivalents
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$
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130,863
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$
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135,700
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Investments -
certificates of deposit
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18,000
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—
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Customer
Receivables
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54,784
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46,475
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Inventories
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35,335
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31,523
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Other Current
Assets
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12,231
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11,718
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Total Current
Assets
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251,213
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225,416
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Property, Plant &
Equipment
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76,202
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74,049
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Other
Assets
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28,170
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30,599
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Total
Assets
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$
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355,585
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$
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330,064
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Current Portion -
Long-Term Debt
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$
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1,316
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$
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1,146
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Accounts Payable
& Accrued Expenses
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78,292
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75,273
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Total Current
Liabilities
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79,608
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76,419
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Long-Term
Debt
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20,315
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20,453
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Other
Liabilities
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40,924
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42,647
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Total
Liabilities
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140,847
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139,519
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Stockholders'
Equity
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214,738
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190,545
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Total Liabilities
& Stockholders' Equity
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$
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355,585
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$
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330,064
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Condensed
Consolidated Statements of Cash Flows
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Six Months
Ended
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October
31
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2014
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2013
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Net Cash Provided by
Operating Activities
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$
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18,637
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$
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15,812
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Net Cash Used by
Investing Activities
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(25,984)
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(5,796)
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Free Cash
Flow
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(7,347)
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10,016
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Net Cash Provided by
Financing Activities
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2,510
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11,517
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Net Increase
(Decrease) in Cash and Cash Equivalents
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(4,837)
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21,533
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Cash and Cash
Equivalents, Beginning of Period
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135,700
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96,971
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Cash and Cash
Equivalents, End of Period
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$
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130,863
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$
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118,504
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To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/american-woodmark-corporation-announces-second-quarter-results-300000715.html
SOURCE American Woodmark Corporation