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