Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries American Woodmark Corporation Announces First Quarter Results By: American Woodmark Corporation via Business Wire August 29, 2023 at 16:05 PM EDT Fiscal First Quarter 2024 Financial Highlights: Net sales decreased 8.2% year-over-year to $498.3 million Net income increased 89% year-over-year to $37.9 million GAAP EPS of $2.28; Adjusted EPS of $2.78 Adjusted EBITDA increased 33% year-over-year to $75.2 million Cash provided by operating activities of $86.7 million, free cash flow of $72.5 million Repurchased 328,295 shares for $22.1 million American Woodmark Corporation (NASDAQ: AMWD) (the "Company") today announced results for its first fiscal quarter ended July 31, 2023. “Our team delivered strong financial performance in the first quarter of fiscal year 2024 despite the softening demand environment,” said Scott Culbreth, President and CEO. “Net sales and Adjusted EBITDA exceeded our expectations for the quarter as improved operational performance continues. The Company’s net sales outlook remains unchanged from the prior outlook but we now expect stronger Adjusted EBITDA performance consistent with the improvements needed to meet our long-term goals.” First Quarter Results Net sales for the first quarter of fiscal 2024 decreased $44.6 million, or 8.2%, to $498.3 million compared with the same quarter of the prior fiscal year. Net income was $37.9 million ($2.28 per diluted share) compared with $20.1 million ($1.21 per diluted share) in the same quarter of the prior fiscal year. Net income for the first quarter of fiscal 2024 increased $17.8 million due to operational improvements in our manufacturing facilities, a stabilizing supply chain and reduced overhead spending, partially offset by a decrease in net sales and a $4.9 million pre-tax charge related to the plywood case. Adjusted EPS per diluted share was $2.78 for the first quarter of fiscal 2024 compared with $1.71 in the same quarter of the prior fiscal year. Adjusted EBITDA for the first quarter of fiscal 2024 increased $18.7 million, or 33.0%, to $75.2 million, or 15.1% of net sales, compared to $56.5 million, or 10.4% of net sales, for the same quarter of the prior fiscal year. Balance Sheet & Cash Flow As of July 31, 2023, the Company had $89.7 million in cash plus access to $323.2 million of additional availability under its revolving credit facility. Also, as of July 31, 2023, the Company had $206.3 million in term loan debt and $163.8 million drawn on its revolving credit facility. Cash provided by operating activities for the current fiscal quarter was $86.7 million and free cash flow totaled $72.5 million. The Company repurchased 328,295 shares, or approximately 2% of shares outstanding, for $22.1 million during the first quarter of fiscal 2024. Fiscal 2024 Financial Outlook For fiscal 2024 (which includes the now completed first quarter) the Company expects: Low double digit net sales decline year-over-year Adjusted EBITDA in the range of $225 million to $245 million “Our teams improved Adjusted EBITDA by 470 BPS to $75.2 million, or 15.1% of net sales, despite the decline in sales of 8.2% during the first quarter of fiscal 2024. Our team continues to deliver on the commitment to improving our results,” said Paul Joachimczyk, Senior Vice President and Chief Financial Officer. “Given our strong performance at the start of the fiscal year, we are increasing our fiscal year 2024 Adjusted EBITDA outlook by $20 million which expands the range to $225 million to $245 million.” Our Adjusted EBITDA outlook excludes the impact of certain income and expense items that management believes are not part of underlying operations. These items may include restructuring costs, interest expense, stock-based compensation expense, and certain tax items. Our management cannot estimate on a forward-looking basis the impact of these income and expense items on its reported net income, which could be significant, are difficult to predict, and may be highly variable. As a result, the Company does not provide a reconciliation to the closest corresponding GAAP financial measure for its Adjusted EBITDA outlook. About American Woodmark American Woodmark celebrates the creativity in all of us. With over 8,800 employees and more than a dozen brands, we’re one of the nation’s largest cabinet manufacturers. From inspiration to installation, we help people find their unique style and turn their home into a space for self-expression. By partnering with major home centers, builders, and independent dealers and distributors, we spark the imagination of homeowners and designers and bring their vision to life. Across our service and distribution centers, our corporate office, and manufacturing facilities, you’ll always find the same commitment to customer satisfaction, integrity, teamwork, and excellence. Visit americanwoodmark.com to learn more and start building something distinctly your own. Use of Non-GAAP Financial Measures We have presented certain financial measures in this press release which have not been prepared in accordance with U.S. generally accepted accounting principles (GAAP). Definitions of our non-GAAP financial measures and a reconciliation to the most directly comparable financial measure calculated in accordance with GAAP are provided below following the financial highlights under the heading "Non-GAAP Financial Measures." 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, including our Annual Report on Form 10-K. 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, 2023 2022 Net sales $ 498,255 $ 542,893 Cost of sales & distribution 388,646 456,146 Gross profit 109,609 86,747 Sales & marketing expense 24,360 25,766 General & administrative expense 35,594 30,180 Restructuring charges, net (172 ) — Operating income 49,827 30,801 Interest expense, net 2,437 4,053 Pension settlement, net — (239 ) Other (income) expense, net (1,075 ) 226 Income tax expense 10,615 6,691 Net income $ 37,850 $ 20,070 Earnings Per Share: Weighted average shares outstanding - diluted 16,589,481 16,619,916 Net income per diluted share $ 2.28 $ 1.21 Condensed Consolidated Balance Sheet (Unaudited) July 31, April 30, 2023 2023 Cash & cash equivalents $ 89,650 $ 41,732 Customer receivables 117,763 119,163 Inventories 167,539 190,699 Other current assets 19,160 16,661 Total current assets 394,112 368,255 Property, plant and equipment, net 223,810 219,415 Operating lease assets, net 96,609 99,526 Customer relationship intangibles, net 19,028 30,444 Goodwill 767,612 767,612 Other assets 29,458 33,546 Total assets $ 1,530,629 $ 1,518,798 Current portion - long-term debt $ 2,177 $ 2,263 Short-term operating lease liabilities 25,231 24,778 Accounts payable & accrued expenses 148,094 151,083 Total current liabilities 175,502 178,124 Long-term debt 369,362 369,396 Deferred income taxes 9,817 11,930 Long-term operating lease liabilities 77,806 81,370 Other liabilities 3,777 4,190 Total liabilities 636,264 645,010 Stockholders' equity 894,365 873,788 Total liabilities & stockholders' equity $ 1,530,629 $ 1,518,798 Condensed Consolidated Statements of Cash Flows (Unaudited) Three Months Ended July 31, 2023 2022 Net cash provided by operating activities $ 86,721 $ 37,295 Net cash used by investing activities (14,223 ) (4,560 ) Net cash used by financing activities (24,580 ) (21,364 ) Net increase in cash and cash equivalents 47,918 11,371 Cash and cash equivalents, beginning of period 41,732 22,325 Cash and cash equivalents, end of period $ 89,650 $ 33,696 Non-GAAP Financial Measures We have reported our financial results in accordance with U.S. generally accepted accounting principles (GAAP). In addition, we have discussed our financial results using the non-GAAP measures described below. Management believes all of these non-GAAP financial measures provide an additional means of analyzing the current period's results against the corresponding prior period's results. However, these non-GAAP financial measures should be viewed in addition to, and not as a substitute for, the Company's reported results prepared in accordance with GAAP. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. EBITDA, Adjusted EBITDA and Adjusted EBITDA margin We use EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin in evaluating the performance of our business, and we use each in the preparation of our annual operating budgets and as indicators of business performance and profitability. We believe EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin allow us to readily view operating trends, perform analytical comparisons and identify strategies to improve operating performance. We define EBITDA as net income (loss) adjusted to exclude (1) income tax expense (benefit), (2) interest expense, net, (3) depreciation and amortization expense, (4) amortization of customer relationship intangibles and trademarks. We define Adjusted EBITDA as EBITDA adjusted to exclude (1) expenses related to the acquisition of RSI Home Products, Inc. ("RSI acquisition") and the subsequent restructuring charges that the Company incurred related to the acquisition, (2) non-recurring restructuring charges, (3) net gain/loss on debt forgiveness and modification, (4) stock-based compensation expense, (5) gain/loss on asset disposals, (6) change in fair value of foreign exchange forward contracts, and (7) pension settlement charges. We believe Adjusted EBITDA, when presented in conjunction with comparable GAAP measures, is useful for investors because management uses Adjusted EBITDA in evaluating the performance of our business. We define Adjusted EBITDA margin as Adjusted EBITDA as a percentage of net sales. Adjusted EPS per diluted share We use Adjusted EPS per diluted share in evaluating the performance of our business and profitability. Management believes that this measure provides useful information to investors by offering additional ways of viewing the Company's results by providing an indication of performance and profitability excluding the impact of unusual and/or non-cash items. We define Adjusted EPS per diluted share as diluted earnings per share excluding the per share impact of (1) expenses related to the RSI acquisition and the subsequent restructuring charges that the Company incurred related to the RSI acquisition, (2) non-recurring restructuring charges, (3) the amortization of customer relationship intangibles and trademarks, (4) net gain/loss on debt forgiveness and modification, (5) pension settlement charges, and (6) the tax benefit of RSI acquisition expenses and subsequent restructuring charges, the net gain on debt forgiveness and modification and the amortization of customer relationship intangibles and trademarks. The amortization of intangible assets is driven by the RSI acquisition and will recur in future periods. Management has determined that excluding amortization of intangible assets from our definition of Adjusted EPS per diluted share will better help it evaluate the performance of our business and profitability and we have also received similar feedback from some of our investors. Free cash flow To better understand trends in our business, we believe that it is helpful to subtract amounts for capital expenditures consisting of cash payments for property, plant and equipment and cash payments for investments in displays from cash flows from continuing operations which is how we define free cash flow. Management believes this measure gives investors an additional perspective on cash flow from operating activities in excess of amounts required for reinvestment. It also provides a measure of our ability to repay our debt obligations. Net leverage Net leverage is a performance measure that we believe provides investors a more complete understanding of our leverage position and borrowing capacity after factoring in cash and cash equivalents that eventually could be used to repay outstanding debt. We define net leverage as net debt (total debt less cash and cash equivalents) divided by the trailing 12 months Adjusted EBITDA. A reconciliation of these non-GAAP financial measures and the most directly comparable measures calculated and presented in accordance with GAAP are set forth on the following tables: Reconciliation of EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin Three Months Ended July 31, (in thousands) 2023 2022 Net income (GAAP) $ 37,850 $ 20,070 Add back: Income tax expense 10,615 6,691 Interest expense, net 2,437 4,053 Depreciation and amortization expense 11,745 12,430 Amortization of customer relationship intangibles 11,417 11,417 EBITDA (Non-GAAP) $ 74,064 $ 54,661 Add back: Acquisition and restructuring related expenses (1) 20 20 Non-recurring restructuring charges, net (2) (172 ) — Pension settlement, net — (239 ) Change in fair value of foreign exchange forward contracts (3) (1,015 ) 238 Stock-based compensation expense 2,247 1,635 Loss on asset disposal 7 177 Adjusted EBITDA (Non-GAAP) $ 75,151 $ 56,492 Net Sales $ 498,255 $ 542,893 Net income margin (GAAP) 7.6 % 3.7 % Adjusted EBITDA margin (Non-GAAP) 15.1 % 10.4 % (1) Acquisition and restructuring related expenses are comprised of expenses related to the RSI acquisition and the subsequent restructuring charges that the Company incurred related to the acquisition. (2) Non-recurring restructuring charges are comprised of expenses incurred related to the nationwide reduction-in-force implemented in the third and fourth quarters of fiscal 2023. (3) In the normal course of business the Company is subject to risk from adverse fluctuations in foreign exchange rates. The Company manages these risks through the use of foreign exchange forward contracts. The changes in the fair value of the forward contracts are recorded in other (income) expense, net in the operating results. Reconciliation of Net Income to Adjusted Net Income Three Months Ended July 31, (in thousands, except share data) 2023 2022 Net income (GAAP) $ 37,850 $ 20,070 Add back: Acquisition and restructuring related expenses 20 20 Non-recurring restructuring charges, net (172 ) — Pension settlement, net — (239 ) Amortization of customer relationship intangibles and trademarks 11,417 11,417 Tax benefit of add backs (2,940 ) (2,900 ) Adjusted net income (Non-GAAP) $ 46,175 $ 28,368 Weighted average diluted shares (GAAP) 16,589,481 16,619,916 EPS per diluted share (GAAP) $ 2.28 $ 1.21 Adjusted EPS per diluted share (Non-GAAP) $ 2.78 $ 1.71 Free Cash Flow Three Months Ended July 31, 2023 2022 Net cash provided by operating activities $ 86,721 $ 37,295 Less: Capital expenditures (1) 14,227 4,575 Free cash flow $ 72,494 $ 32,720 (1) Capital expenditures consist of cash payments for property, plant and equipment and cash payments for investments in displays. Net Leverage Twelve Months Ended July 31, (in thousands) 2023 Net income (GAAP) $ 111,504 Add back: Income tax expense 32,886 Interest expense, net 14,378 Depreciation and amortization expense 47,393 Amortization of customer relationship intangibles 45,667 EBITDA (Non-GAAP) $ 251,828 Add back: Acquisition and restructuring related expenses (1) 80 Non-recurring restructuring charges, net (2) 1,353 Pension settlement 232 Net gain on debt modification (2,089 ) Change in fair value of foreign exchange forward contracts (3) (1,254 ) Stock-based compensation expense 8,008 Loss on asset disposal 880 Adjusted EBITDA (Non-GAAP) $ 259,038 As of July 31, 2023 Current maturities of long-term debt $ 2,177 Long-term debt, less current maturities 369,362 Total debt 371,539 Less: cash and cash equivalents (89,650 ) Net debt $ 281,889 Net leverage (4) 1.09 (1) Acquisition and restructuring related expenses are comprised of expenses related to the RSI acquisition and the subsequent restructuring charges that the Company incurred related to the acquisition. (2) Non-recurring restructuring charges are comprised of expenses incurred related to the nationwide reduction-in-force implemented in the third and fourth quarters of fiscal 2023. (3) In the normal course of business the Company is subject to risk from adverse fluctuations in foreign exchange rates. The Company manages these risks through the use of foreign exchange forward contracts. The changes in the fair value of the forward contracts are recorded in other (income) expense, net in the operating results. (4) Net debt divided by Adjusted EBITDA for the twelve months ended July 31, 2023. View source version on businesswire.com: https://www.businesswire.com/news/home/20230829524422/en/Contacts Kevin Dunnigan VP & Treasurer 540-665-9100 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
American Woodmark Corporation Announces First Quarter Results By: American Woodmark Corporation via Business Wire August 29, 2023 at 16:05 PM EDT Fiscal First Quarter 2024 Financial Highlights: Net sales decreased 8.2% year-over-year to $498.3 million Net income increased 89% year-over-year to $37.9 million GAAP EPS of $2.28; Adjusted EPS of $2.78 Adjusted EBITDA increased 33% year-over-year to $75.2 million Cash provided by operating activities of $86.7 million, free cash flow of $72.5 million Repurchased 328,295 shares for $22.1 million American Woodmark Corporation (NASDAQ: AMWD) (the "Company") today announced results for its first fiscal quarter ended July 31, 2023. “Our team delivered strong financial performance in the first quarter of fiscal year 2024 despite the softening demand environment,” said Scott Culbreth, President and CEO. “Net sales and Adjusted EBITDA exceeded our expectations for the quarter as improved operational performance continues. The Company’s net sales outlook remains unchanged from the prior outlook but we now expect stronger Adjusted EBITDA performance consistent with the improvements needed to meet our long-term goals.” First Quarter Results Net sales for the first quarter of fiscal 2024 decreased $44.6 million, or 8.2%, to $498.3 million compared with the same quarter of the prior fiscal year. Net income was $37.9 million ($2.28 per diluted share) compared with $20.1 million ($1.21 per diluted share) in the same quarter of the prior fiscal year. Net income for the first quarter of fiscal 2024 increased $17.8 million due to operational improvements in our manufacturing facilities, a stabilizing supply chain and reduced overhead spending, partially offset by a decrease in net sales and a $4.9 million pre-tax charge related to the plywood case. Adjusted EPS per diluted share was $2.78 for the first quarter of fiscal 2024 compared with $1.71 in the same quarter of the prior fiscal year. Adjusted EBITDA for the first quarter of fiscal 2024 increased $18.7 million, or 33.0%, to $75.2 million, or 15.1% of net sales, compared to $56.5 million, or 10.4% of net sales, for the same quarter of the prior fiscal year. Balance Sheet & Cash Flow As of July 31, 2023, the Company had $89.7 million in cash plus access to $323.2 million of additional availability under its revolving credit facility. Also, as of July 31, 2023, the Company had $206.3 million in term loan debt and $163.8 million drawn on its revolving credit facility. Cash provided by operating activities for the current fiscal quarter was $86.7 million and free cash flow totaled $72.5 million. The Company repurchased 328,295 shares, or approximately 2% of shares outstanding, for $22.1 million during the first quarter of fiscal 2024. Fiscal 2024 Financial Outlook For fiscal 2024 (which includes the now completed first quarter) the Company expects: Low double digit net sales decline year-over-year Adjusted EBITDA in the range of $225 million to $245 million “Our teams improved Adjusted EBITDA by 470 BPS to $75.2 million, or 15.1% of net sales, despite the decline in sales of 8.2% during the first quarter of fiscal 2024. Our team continues to deliver on the commitment to improving our results,” said Paul Joachimczyk, Senior Vice President and Chief Financial Officer. “Given our strong performance at the start of the fiscal year, we are increasing our fiscal year 2024 Adjusted EBITDA outlook by $20 million which expands the range to $225 million to $245 million.” Our Adjusted EBITDA outlook excludes the impact of certain income and expense items that management believes are not part of underlying operations. These items may include restructuring costs, interest expense, stock-based compensation expense, and certain tax items. Our management cannot estimate on a forward-looking basis the impact of these income and expense items on its reported net income, which could be significant, are difficult to predict, and may be highly variable. As a result, the Company does not provide a reconciliation to the closest corresponding GAAP financial measure for its Adjusted EBITDA outlook. About American Woodmark American Woodmark celebrates the creativity in all of us. With over 8,800 employees and more than a dozen brands, we’re one of the nation’s largest cabinet manufacturers. From inspiration to installation, we help people find their unique style and turn their home into a space for self-expression. By partnering with major home centers, builders, and independent dealers and distributors, we spark the imagination of homeowners and designers and bring their vision to life. Across our service and distribution centers, our corporate office, and manufacturing facilities, you’ll always find the same commitment to customer satisfaction, integrity, teamwork, and excellence. Visit americanwoodmark.com to learn more and start building something distinctly your own. Use of Non-GAAP Financial Measures We have presented certain financial measures in this press release which have not been prepared in accordance with U.S. generally accepted accounting principles (GAAP). Definitions of our non-GAAP financial measures and a reconciliation to the most directly comparable financial measure calculated in accordance with GAAP are provided below following the financial highlights under the heading "Non-GAAP Financial Measures." 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, including our Annual Report on Form 10-K. 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, 2023 2022 Net sales $ 498,255 $ 542,893 Cost of sales & distribution 388,646 456,146 Gross profit 109,609 86,747 Sales & marketing expense 24,360 25,766 General & administrative expense 35,594 30,180 Restructuring charges, net (172 ) — Operating income 49,827 30,801 Interest expense, net 2,437 4,053 Pension settlement, net — (239 ) Other (income) expense, net (1,075 ) 226 Income tax expense 10,615 6,691 Net income $ 37,850 $ 20,070 Earnings Per Share: Weighted average shares outstanding - diluted 16,589,481 16,619,916 Net income per diluted share $ 2.28 $ 1.21 Condensed Consolidated Balance Sheet (Unaudited) July 31, April 30, 2023 2023 Cash & cash equivalents $ 89,650 $ 41,732 Customer receivables 117,763 119,163 Inventories 167,539 190,699 Other current assets 19,160 16,661 Total current assets 394,112 368,255 Property, plant and equipment, net 223,810 219,415 Operating lease assets, net 96,609 99,526 Customer relationship intangibles, net 19,028 30,444 Goodwill 767,612 767,612 Other assets 29,458 33,546 Total assets $ 1,530,629 $ 1,518,798 Current portion - long-term debt $ 2,177 $ 2,263 Short-term operating lease liabilities 25,231 24,778 Accounts payable & accrued expenses 148,094 151,083 Total current liabilities 175,502 178,124 Long-term debt 369,362 369,396 Deferred income taxes 9,817 11,930 Long-term operating lease liabilities 77,806 81,370 Other liabilities 3,777 4,190 Total liabilities 636,264 645,010 Stockholders' equity 894,365 873,788 Total liabilities & stockholders' equity $ 1,530,629 $ 1,518,798 Condensed Consolidated Statements of Cash Flows (Unaudited) Three Months Ended July 31, 2023 2022 Net cash provided by operating activities $ 86,721 $ 37,295 Net cash used by investing activities (14,223 ) (4,560 ) Net cash used by financing activities (24,580 ) (21,364 ) Net increase in cash and cash equivalents 47,918 11,371 Cash and cash equivalents, beginning of period 41,732 22,325 Cash and cash equivalents, end of period $ 89,650 $ 33,696 Non-GAAP Financial Measures We have reported our financial results in accordance with U.S. generally accepted accounting principles (GAAP). In addition, we have discussed our financial results using the non-GAAP measures described below. Management believes all of these non-GAAP financial measures provide an additional means of analyzing the current period's results against the corresponding prior period's results. However, these non-GAAP financial measures should be viewed in addition to, and not as a substitute for, the Company's reported results prepared in accordance with GAAP. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. EBITDA, Adjusted EBITDA and Adjusted EBITDA margin We use EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin in evaluating the performance of our business, and we use each in the preparation of our annual operating budgets and as indicators of business performance and profitability. We believe EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin allow us to readily view operating trends, perform analytical comparisons and identify strategies to improve operating performance. We define EBITDA as net income (loss) adjusted to exclude (1) income tax expense (benefit), (2) interest expense, net, (3) depreciation and amortization expense, (4) amortization of customer relationship intangibles and trademarks. We define Adjusted EBITDA as EBITDA adjusted to exclude (1) expenses related to the acquisition of RSI Home Products, Inc. ("RSI acquisition") and the subsequent restructuring charges that the Company incurred related to the acquisition, (2) non-recurring restructuring charges, (3) net gain/loss on debt forgiveness and modification, (4) stock-based compensation expense, (5) gain/loss on asset disposals, (6) change in fair value of foreign exchange forward contracts, and (7) pension settlement charges. We believe Adjusted EBITDA, when presented in conjunction with comparable GAAP measures, is useful for investors because management uses Adjusted EBITDA in evaluating the performance of our business. We define Adjusted EBITDA margin as Adjusted EBITDA as a percentage of net sales. Adjusted EPS per diluted share We use Adjusted EPS per diluted share in evaluating the performance of our business and profitability. Management believes that this measure provides useful information to investors by offering additional ways of viewing the Company's results by providing an indication of performance and profitability excluding the impact of unusual and/or non-cash items. We define Adjusted EPS per diluted share as diluted earnings per share excluding the per share impact of (1) expenses related to the RSI acquisition and the subsequent restructuring charges that the Company incurred related to the RSI acquisition, (2) non-recurring restructuring charges, (3) the amortization of customer relationship intangibles and trademarks, (4) net gain/loss on debt forgiveness and modification, (5) pension settlement charges, and (6) the tax benefit of RSI acquisition expenses and subsequent restructuring charges, the net gain on debt forgiveness and modification and the amortization of customer relationship intangibles and trademarks. The amortization of intangible assets is driven by the RSI acquisition and will recur in future periods. Management has determined that excluding amortization of intangible assets from our definition of Adjusted EPS per diluted share will better help it evaluate the performance of our business and profitability and we have also received similar feedback from some of our investors. Free cash flow To better understand trends in our business, we believe that it is helpful to subtract amounts for capital expenditures consisting of cash payments for property, plant and equipment and cash payments for investments in displays from cash flows from continuing operations which is how we define free cash flow. Management believes this measure gives investors an additional perspective on cash flow from operating activities in excess of amounts required for reinvestment. It also provides a measure of our ability to repay our debt obligations. Net leverage Net leverage is a performance measure that we believe provides investors a more complete understanding of our leverage position and borrowing capacity after factoring in cash and cash equivalents that eventually could be used to repay outstanding debt. We define net leverage as net debt (total debt less cash and cash equivalents) divided by the trailing 12 months Adjusted EBITDA. A reconciliation of these non-GAAP financial measures and the most directly comparable measures calculated and presented in accordance with GAAP are set forth on the following tables: Reconciliation of EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin Three Months Ended July 31, (in thousands) 2023 2022 Net income (GAAP) $ 37,850 $ 20,070 Add back: Income tax expense 10,615 6,691 Interest expense, net 2,437 4,053 Depreciation and amortization expense 11,745 12,430 Amortization of customer relationship intangibles 11,417 11,417 EBITDA (Non-GAAP) $ 74,064 $ 54,661 Add back: Acquisition and restructuring related expenses (1) 20 20 Non-recurring restructuring charges, net (2) (172 ) — Pension settlement, net — (239 ) Change in fair value of foreign exchange forward contracts (3) (1,015 ) 238 Stock-based compensation expense 2,247 1,635 Loss on asset disposal 7 177 Adjusted EBITDA (Non-GAAP) $ 75,151 $ 56,492 Net Sales $ 498,255 $ 542,893 Net income margin (GAAP) 7.6 % 3.7 % Adjusted EBITDA margin (Non-GAAP) 15.1 % 10.4 % (1) Acquisition and restructuring related expenses are comprised of expenses related to the RSI acquisition and the subsequent restructuring charges that the Company incurred related to the acquisition. (2) Non-recurring restructuring charges are comprised of expenses incurred related to the nationwide reduction-in-force implemented in the third and fourth quarters of fiscal 2023. (3) In the normal course of business the Company is subject to risk from adverse fluctuations in foreign exchange rates. The Company manages these risks through the use of foreign exchange forward contracts. The changes in the fair value of the forward contracts are recorded in other (income) expense, net in the operating results. Reconciliation of Net Income to Adjusted Net Income Three Months Ended July 31, (in thousands, except share data) 2023 2022 Net income (GAAP) $ 37,850 $ 20,070 Add back: Acquisition and restructuring related expenses 20 20 Non-recurring restructuring charges, net (172 ) — Pension settlement, net — (239 ) Amortization of customer relationship intangibles and trademarks 11,417 11,417 Tax benefit of add backs (2,940 ) (2,900 ) Adjusted net income (Non-GAAP) $ 46,175 $ 28,368 Weighted average diluted shares (GAAP) 16,589,481 16,619,916 EPS per diluted share (GAAP) $ 2.28 $ 1.21 Adjusted EPS per diluted share (Non-GAAP) $ 2.78 $ 1.71 Free Cash Flow Three Months Ended July 31, 2023 2022 Net cash provided by operating activities $ 86,721 $ 37,295 Less: Capital expenditures (1) 14,227 4,575 Free cash flow $ 72,494 $ 32,720 (1) Capital expenditures consist of cash payments for property, plant and equipment and cash payments for investments in displays. Net Leverage Twelve Months Ended July 31, (in thousands) 2023 Net income (GAAP) $ 111,504 Add back: Income tax expense 32,886 Interest expense, net 14,378 Depreciation and amortization expense 47,393 Amortization of customer relationship intangibles 45,667 EBITDA (Non-GAAP) $ 251,828 Add back: Acquisition and restructuring related expenses (1) 80 Non-recurring restructuring charges, net (2) 1,353 Pension settlement 232 Net gain on debt modification (2,089 ) Change in fair value of foreign exchange forward contracts (3) (1,254 ) Stock-based compensation expense 8,008 Loss on asset disposal 880 Adjusted EBITDA (Non-GAAP) $ 259,038 As of July 31, 2023 Current maturities of long-term debt $ 2,177 Long-term debt, less current maturities 369,362 Total debt 371,539 Less: cash and cash equivalents (89,650 ) Net debt $ 281,889 Net leverage (4) 1.09 (1) Acquisition and restructuring related expenses are comprised of expenses related to the RSI acquisition and the subsequent restructuring charges that the Company incurred related to the acquisition. (2) Non-recurring restructuring charges are comprised of expenses incurred related to the nationwide reduction-in-force implemented in the third and fourth quarters of fiscal 2023. (3) In the normal course of business the Company is subject to risk from adverse fluctuations in foreign exchange rates. The Company manages these risks through the use of foreign exchange forward contracts. The changes in the fair value of the forward contracts are recorded in other (income) expense, net in the operating results. (4) Net debt divided by Adjusted EBITDA for the twelve months ended July 31, 2023. View source version on businesswire.com: https://www.businesswire.com/news/home/20230829524422/en/Contacts Kevin Dunnigan VP & Treasurer 540-665-9100
Fiscal First Quarter 2024 Financial Highlights: Net sales decreased 8.2% year-over-year to $498.3 million Net income increased 89% year-over-year to $37.9 million GAAP EPS of $2.28; Adjusted EPS of $2.78 Adjusted EBITDA increased 33% year-over-year to $75.2 million Cash provided by operating activities of $86.7 million, free cash flow of $72.5 million Repurchased 328,295 shares for $22.1 million
American Woodmark Corporation (NASDAQ: AMWD) (the "Company") today announced results for its first fiscal quarter ended July 31, 2023. “Our team delivered strong financial performance in the first quarter of fiscal year 2024 despite the softening demand environment,” said Scott Culbreth, President and CEO. “Net sales and Adjusted EBITDA exceeded our expectations for the quarter as improved operational performance continues. The Company’s net sales outlook remains unchanged from the prior outlook but we now expect stronger Adjusted EBITDA performance consistent with the improvements needed to meet our long-term goals.” First Quarter Results Net sales for the first quarter of fiscal 2024 decreased $44.6 million, or 8.2%, to $498.3 million compared with the same quarter of the prior fiscal year. Net income was $37.9 million ($2.28 per diluted share) compared with $20.1 million ($1.21 per diluted share) in the same quarter of the prior fiscal year. Net income for the first quarter of fiscal 2024 increased $17.8 million due to operational improvements in our manufacturing facilities, a stabilizing supply chain and reduced overhead spending, partially offset by a decrease in net sales and a $4.9 million pre-tax charge related to the plywood case. Adjusted EPS per diluted share was $2.78 for the first quarter of fiscal 2024 compared with $1.71 in the same quarter of the prior fiscal year. Adjusted EBITDA for the first quarter of fiscal 2024 increased $18.7 million, or 33.0%, to $75.2 million, or 15.1% of net sales, compared to $56.5 million, or 10.4% of net sales, for the same quarter of the prior fiscal year. Balance Sheet & Cash Flow As of July 31, 2023, the Company had $89.7 million in cash plus access to $323.2 million of additional availability under its revolving credit facility. Also, as of July 31, 2023, the Company had $206.3 million in term loan debt and $163.8 million drawn on its revolving credit facility. Cash provided by operating activities for the current fiscal quarter was $86.7 million and free cash flow totaled $72.5 million. The Company repurchased 328,295 shares, or approximately 2% of shares outstanding, for $22.1 million during the first quarter of fiscal 2024. Fiscal 2024 Financial Outlook For fiscal 2024 (which includes the now completed first quarter) the Company expects: Low double digit net sales decline year-over-year Adjusted EBITDA in the range of $225 million to $245 million “Our teams improved Adjusted EBITDA by 470 BPS to $75.2 million, or 15.1% of net sales, despite the decline in sales of 8.2% during the first quarter of fiscal 2024. Our team continues to deliver on the commitment to improving our results,” said Paul Joachimczyk, Senior Vice President and Chief Financial Officer. “Given our strong performance at the start of the fiscal year, we are increasing our fiscal year 2024 Adjusted EBITDA outlook by $20 million which expands the range to $225 million to $245 million.” Our Adjusted EBITDA outlook excludes the impact of certain income and expense items that management believes are not part of underlying operations. These items may include restructuring costs, interest expense, stock-based compensation expense, and certain tax items. Our management cannot estimate on a forward-looking basis the impact of these income and expense items on its reported net income, which could be significant, are difficult to predict, and may be highly variable. As a result, the Company does not provide a reconciliation to the closest corresponding GAAP financial measure for its Adjusted EBITDA outlook. About American Woodmark American Woodmark celebrates the creativity in all of us. With over 8,800 employees and more than a dozen brands, we’re one of the nation’s largest cabinet manufacturers. From inspiration to installation, we help people find their unique style and turn their home into a space for self-expression. By partnering with major home centers, builders, and independent dealers and distributors, we spark the imagination of homeowners and designers and bring their vision to life. Across our service and distribution centers, our corporate office, and manufacturing facilities, you’ll always find the same commitment to customer satisfaction, integrity, teamwork, and excellence. Visit americanwoodmark.com to learn more and start building something distinctly your own. Use of Non-GAAP Financial Measures We have presented certain financial measures in this press release which have not been prepared in accordance with U.S. generally accepted accounting principles (GAAP). Definitions of our non-GAAP financial measures and a reconciliation to the most directly comparable financial measure calculated in accordance with GAAP are provided below following the financial highlights under the heading "Non-GAAP Financial Measures." 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, including our Annual Report on Form 10-K. 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, 2023 2022 Net sales $ 498,255 $ 542,893 Cost of sales & distribution 388,646 456,146 Gross profit 109,609 86,747 Sales & marketing expense 24,360 25,766 General & administrative expense 35,594 30,180 Restructuring charges, net (172 ) — Operating income 49,827 30,801 Interest expense, net 2,437 4,053 Pension settlement, net — (239 ) Other (income) expense, net (1,075 ) 226 Income tax expense 10,615 6,691 Net income $ 37,850 $ 20,070 Earnings Per Share: Weighted average shares outstanding - diluted 16,589,481 16,619,916 Net income per diluted share $ 2.28 $ 1.21 Condensed Consolidated Balance Sheet (Unaudited) July 31, April 30, 2023 2023 Cash & cash equivalents $ 89,650 $ 41,732 Customer receivables 117,763 119,163 Inventories 167,539 190,699 Other current assets 19,160 16,661 Total current assets 394,112 368,255 Property, plant and equipment, net 223,810 219,415 Operating lease assets, net 96,609 99,526 Customer relationship intangibles, net 19,028 30,444 Goodwill 767,612 767,612 Other assets 29,458 33,546 Total assets $ 1,530,629 $ 1,518,798 Current portion - long-term debt $ 2,177 $ 2,263 Short-term operating lease liabilities 25,231 24,778 Accounts payable & accrued expenses 148,094 151,083 Total current liabilities 175,502 178,124 Long-term debt 369,362 369,396 Deferred income taxes 9,817 11,930 Long-term operating lease liabilities 77,806 81,370 Other liabilities 3,777 4,190 Total liabilities 636,264 645,010 Stockholders' equity 894,365 873,788 Total liabilities & stockholders' equity $ 1,530,629 $ 1,518,798 Condensed Consolidated Statements of Cash Flows (Unaudited) Three Months Ended July 31, 2023 2022 Net cash provided by operating activities $ 86,721 $ 37,295 Net cash used by investing activities (14,223 ) (4,560 ) Net cash used by financing activities (24,580 ) (21,364 ) Net increase in cash and cash equivalents 47,918 11,371 Cash and cash equivalents, beginning of period 41,732 22,325 Cash and cash equivalents, end of period $ 89,650 $ 33,696 Non-GAAP Financial Measures We have reported our financial results in accordance with U.S. generally accepted accounting principles (GAAP). In addition, we have discussed our financial results using the non-GAAP measures described below. Management believes all of these non-GAAP financial measures provide an additional means of analyzing the current period's results against the corresponding prior period's results. However, these non-GAAP financial measures should be viewed in addition to, and not as a substitute for, the Company's reported results prepared in accordance with GAAP. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. EBITDA, Adjusted EBITDA and Adjusted EBITDA margin We use EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin in evaluating the performance of our business, and we use each in the preparation of our annual operating budgets and as indicators of business performance and profitability. We believe EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin allow us to readily view operating trends, perform analytical comparisons and identify strategies to improve operating performance. We define EBITDA as net income (loss) adjusted to exclude (1) income tax expense (benefit), (2) interest expense, net, (3) depreciation and amortization expense, (4) amortization of customer relationship intangibles and trademarks. We define Adjusted EBITDA as EBITDA adjusted to exclude (1) expenses related to the acquisition of RSI Home Products, Inc. ("RSI acquisition") and the subsequent restructuring charges that the Company incurred related to the acquisition, (2) non-recurring restructuring charges, (3) net gain/loss on debt forgiveness and modification, (4) stock-based compensation expense, (5) gain/loss on asset disposals, (6) change in fair value of foreign exchange forward contracts, and (7) pension settlement charges. We believe Adjusted EBITDA, when presented in conjunction with comparable GAAP measures, is useful for investors because management uses Adjusted EBITDA in evaluating the performance of our business. We define Adjusted EBITDA margin as Adjusted EBITDA as a percentage of net sales. Adjusted EPS per diluted share We use Adjusted EPS per diluted share in evaluating the performance of our business and profitability. Management believes that this measure provides useful information to investors by offering additional ways of viewing the Company's results by providing an indication of performance and profitability excluding the impact of unusual and/or non-cash items. We define Adjusted EPS per diluted share as diluted earnings per share excluding the per share impact of (1) expenses related to the RSI acquisition and the subsequent restructuring charges that the Company incurred related to the RSI acquisition, (2) non-recurring restructuring charges, (3) the amortization of customer relationship intangibles and trademarks, (4) net gain/loss on debt forgiveness and modification, (5) pension settlement charges, and (6) the tax benefit of RSI acquisition expenses and subsequent restructuring charges, the net gain on debt forgiveness and modification and the amortization of customer relationship intangibles and trademarks. The amortization of intangible assets is driven by the RSI acquisition and will recur in future periods. Management has determined that excluding amortization of intangible assets from our definition of Adjusted EPS per diluted share will better help it evaluate the performance of our business and profitability and we have also received similar feedback from some of our investors. Free cash flow To better understand trends in our business, we believe that it is helpful to subtract amounts for capital expenditures consisting of cash payments for property, plant and equipment and cash payments for investments in displays from cash flows from continuing operations which is how we define free cash flow. Management believes this measure gives investors an additional perspective on cash flow from operating activities in excess of amounts required for reinvestment. It also provides a measure of our ability to repay our debt obligations. Net leverage Net leverage is a performance measure that we believe provides investors a more complete understanding of our leverage position and borrowing capacity after factoring in cash and cash equivalents that eventually could be used to repay outstanding debt. We define net leverage as net debt (total debt less cash and cash equivalents) divided by the trailing 12 months Adjusted EBITDA. A reconciliation of these non-GAAP financial measures and the most directly comparable measures calculated and presented in accordance with GAAP are set forth on the following tables: Reconciliation of EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin Three Months Ended July 31, (in thousands) 2023 2022 Net income (GAAP) $ 37,850 $ 20,070 Add back: Income tax expense 10,615 6,691 Interest expense, net 2,437 4,053 Depreciation and amortization expense 11,745 12,430 Amortization of customer relationship intangibles 11,417 11,417 EBITDA (Non-GAAP) $ 74,064 $ 54,661 Add back: Acquisition and restructuring related expenses (1) 20 20 Non-recurring restructuring charges, net (2) (172 ) — Pension settlement, net — (239 ) Change in fair value of foreign exchange forward contracts (3) (1,015 ) 238 Stock-based compensation expense 2,247 1,635 Loss on asset disposal 7 177 Adjusted EBITDA (Non-GAAP) $ 75,151 $ 56,492 Net Sales $ 498,255 $ 542,893 Net income margin (GAAP) 7.6 % 3.7 % Adjusted EBITDA margin (Non-GAAP) 15.1 % 10.4 % (1) Acquisition and restructuring related expenses are comprised of expenses related to the RSI acquisition and the subsequent restructuring charges that the Company incurred related to the acquisition. (2) Non-recurring restructuring charges are comprised of expenses incurred related to the nationwide reduction-in-force implemented in the third and fourth quarters of fiscal 2023. (3) In the normal course of business the Company is subject to risk from adverse fluctuations in foreign exchange rates. The Company manages these risks through the use of foreign exchange forward contracts. The changes in the fair value of the forward contracts are recorded in other (income) expense, net in the operating results. Reconciliation of Net Income to Adjusted Net Income Three Months Ended July 31, (in thousands, except share data) 2023 2022 Net income (GAAP) $ 37,850 $ 20,070 Add back: Acquisition and restructuring related expenses 20 20 Non-recurring restructuring charges, net (172 ) — Pension settlement, net — (239 ) Amortization of customer relationship intangibles and trademarks 11,417 11,417 Tax benefit of add backs (2,940 ) (2,900 ) Adjusted net income (Non-GAAP) $ 46,175 $ 28,368 Weighted average diluted shares (GAAP) 16,589,481 16,619,916 EPS per diluted share (GAAP) $ 2.28 $ 1.21 Adjusted EPS per diluted share (Non-GAAP) $ 2.78 $ 1.71 Free Cash Flow Three Months Ended July 31, 2023 2022 Net cash provided by operating activities $ 86,721 $ 37,295 Less: Capital expenditures (1) 14,227 4,575 Free cash flow $ 72,494 $ 32,720 (1) Capital expenditures consist of cash payments for property, plant and equipment and cash payments for investments in displays. Net Leverage Twelve Months Ended July 31, (in thousands) 2023 Net income (GAAP) $ 111,504 Add back: Income tax expense 32,886 Interest expense, net 14,378 Depreciation and amortization expense 47,393 Amortization of customer relationship intangibles 45,667 EBITDA (Non-GAAP) $ 251,828 Add back: Acquisition and restructuring related expenses (1) 80 Non-recurring restructuring charges, net (2) 1,353 Pension settlement 232 Net gain on debt modification (2,089 ) Change in fair value of foreign exchange forward contracts (3) (1,254 ) Stock-based compensation expense 8,008 Loss on asset disposal 880 Adjusted EBITDA (Non-GAAP) $ 259,038 As of July 31, 2023 Current maturities of long-term debt $ 2,177 Long-term debt, less current maturities 369,362 Total debt 371,539 Less: cash and cash equivalents (89,650 ) Net debt $ 281,889 Net leverage (4) 1.09 (1) Acquisition and restructuring related expenses are comprised of expenses related to the RSI acquisition and the subsequent restructuring charges that the Company incurred related to the acquisition. (2) Non-recurring restructuring charges are comprised of expenses incurred related to the nationwide reduction-in-force implemented in the third and fourth quarters of fiscal 2023. (3) In the normal course of business the Company is subject to risk from adverse fluctuations in foreign exchange rates. The Company manages these risks through the use of foreign exchange forward contracts. The changes in the fair value of the forward contracts are recorded in other (income) expense, net in the operating results. (4) Net debt divided by Adjusted EBITDA for the twelve months ended July 31, 2023. View source version on businesswire.com: https://www.businesswire.com/news/home/20230829524422/en/