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 Announces Fiscal Fourth Quarter and Fiscal Year Results By: American Woodmark Corporation via Business Wire May 23, 2024 at 16:05 PM EDT Fiscal Fourth Quarter 2024 Financial Highlights: Net sales decreased 5.8% year-over-year to $453.3 million Net income decreased 11.1% year-over-year to $26.8 million GAAP EPS of $1.69; Adjusted EPS of $1.70 Adjusted EBITDA decreased 16.2% year-over-year to $54.7 million Cash provided by operating activities of $43.3 million, free cash flow of $6.8 million Repurchased 170,571 shares for $15.9 million Fiscal 2024 Financial Highlights: Net sales decreased 10.6% year-over-year to $1,847.5 million Net income increased 24.0% year-over-year to $116.2 million GAAP EPS of $7.15; Adjusted EPS of $8.53 Adjusted EBITDA increased 5.2% year-over-year to $252.8 million Cash provided by operating activities of $230.8 million, free cash flow of $138.5 million Repurchased 1,108,715 shares for $87.7 million American Woodmark Corporation (NASDAQ: AMWD) (the "Company") today announced results for its fourth fiscal quarter ended April 30, 2024 and its fiscal year ended April 30, 2024. “Our teams delivered another strong quarter despite the soft remodel market demand environment,” said Scott Culbreth, President and CEO. “Net sales and Adjusted EBITDA exceeded our expectations for the quarter as the demand environment began to improve. For the full fiscal year, our teams grew Adjusted EBITDA to $252.8 million and improved Adjusted EBITDA margin by over 200 bps despite a 10.6% reduction in net sales, which demonstrated our strategic focus on automation and operational excellence is working. Our net sales outlook for fiscal year 2025 is for low single digit growth as we look to grow across all channels. We will continue to invest in the business through automation, capacity and digital transformation to operate as one company allowing us to achieve our long-term targets.” Fourth Quarter Results Net sales for the fourth quarter of fiscal 2024 decreased $27.8 million, or 5.8%, to $453.3 million compared with the same quarter of the prior fiscal year. Net income was $26.8 million ($1.69 per diluted share) compared with $30.1 million ($1.80 per diluted share) in the same quarter of the prior fiscal year. Net income for the fourth quarter of fiscal 2024 decreased $3.3 million due primarily to a decrease in net sales and the one-time startup costs for our new locations in Hamlet, North Carolina and Monterrey, Mexico. Adjusted EPS per diluted share was $1.70 for the fourth quarter of fiscal 2024 compared with $2.21 in the same quarter of the prior fiscal year. Adjusted EBITDA for the fourth quarter of fiscal 2024 decreased $10.6 million, or 16.2%, to $54.7 million, or 12.1% of net sales, compared to $65.3 million, or 13.6% of net sales, for the same quarter of the prior fiscal year. Fiscal Year Results Net sales for the fiscal year ended April 30, 2024 decreased 10.6% to $1,847.5 million from the prior fiscal year. Net income for the current fiscal year was $116.2 million ($7.15 per diluted share) compared with net income of $93.7 million ($5.62 per diluted share) for the prior fiscal year. Net income for fiscal 2024 increased primarily due to the result of pricing better matching inflationary pressures and overall increased efficiencies across our existing operating locations. These benefits were partially offset by one time startup costs and inefficiencies driven by our new locations in Hamlet, North Carolina and Monterrey, Mexico, which will continue to ramp up production throughout the calendar year. Adjusted EPS per diluted share was $8.53 for the current fiscal year compared with $7.62 for the prior fiscal year. Adjusted EBITDA for the current fiscal year was $252.8 million, or 13.7% of net sales, compared to $240.4 million, or 11.6% of net sales, for the prior fiscal year. Balance Sheet & Cash Flow As of April 30, 2024, the Company had $87.4 million in cash plus access to $322.9 million of additional availability under its revolving credit facility. Also, as of April 30, 2024, 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 year was $230.8 million and free cash flow totaled $138.5 million. The Company repurchased 170,571 shares, or approximately 1.1% of shares outstanding, for $15.9 million during the fourth quarter of fiscal 2024, and 1,108,715 shares, or approximately 7.1% of shares outstanding, for $87.7 million during fiscal 2024. As of April 30, 2024, $89.5 million of funds remained available from the amounts authorized by the Board to repurchase the Company's common stock. Fiscal 2025 Financial Outlook For fiscal 2025 the Company expects: Low single digit net sales increase year-over-year Adjusted EBITDA in the range of $235 million to $255 million “Given the strong operational and commercial performance that our teams delivered in our fiscal year 2024, we are projecting our fiscal 2025 net sales to increase low single digits and deliver Adjusted EBITDA in the range of $235 to $255 million,” said Paul Joachimczyk, Senior Vice President and Chief Financial Officer. 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 Twelve Months Ended April 30, April 30, 2024 2023 2024 2023 Net sales $ 453,278 $ 481,095 $ 1,847,502 $ 2,066,200 Cost of sales & distribution 369,179 384,392 1,469,695 1,708,676 Gross profit 84,099 96,703 377,807 357,524 Sales & marketing expense 23,613 22,821 92,603 94,602 General & administrative expense 22,262 33,916 124,008 125,045 Restructuring charges, net — 215 (198 ) 1,525 Operating income 38,224 39,751 161,394 136,352 Interest expense, net 1,885 3,216 8,207 15,994 Pension settlement, net — (55 ) — (7 ) Other expense (income), net 1,742 850 1,219 (232 ) Net gain on debt modification — (2,089 ) — (2,089 ) Income tax expense 7,799 7,688 35,752 28,963 Net income $ 26,798 $ 30,141 $ 116,216 $ 93,723 Earnings Per Share: Weighted average shares outstanding - diluted 15,881,015 16,735,892 16,260,222 16,685,359 Net income per diluted share $ 1.69 $ 1.80 $ 7.15 $ 5.62 Condensed Consolidated Balance Sheet (Unaudited) April 30, 2024 2023 Cash & cash equivalents $ 87,398 $ 41,732 Customer receivables 117,559 119,163 Inventories 159,101 190,699 Income taxes receivable 14,548 — Other current assets 24,104 16,661 Total current assets 402,710 368,255 Property, plant & equipment, net 272,461 219,415 Operating lease assets, net 126,383 99,526 Customer relationship intangibles, net — 30,444 Goodwill 767,612 767,612 Other assets 24,699 33,546 Total assets $ 1,593,865 $ 1,518,798 Current portion - long-term debt $ 2,722 $ 2,263 Short-term operating lease liabilities 27,409 24,778 Accounts payable & accrued expenses 165,595 151,083 Total current liabilities 195,726 178,124 Long-term debt 371,761 369,396 Deferred income taxes 5,002 11,930 Long-term operating lease liabilities 106,573 81,370 Other liabilities 4,427 4,190 Total liabilities 683,489 645,010 Stockholders' equity 910,376 873,788 Total liabilities & stockholders' equity $ 1,593,865 $ 1,518,798 Condensed Consolidated Statements of Cash Flows (Unaudited) Twelve Months Ended April 30, 2024 2023 Net cash provided by operating activities $ 230,750 $ 198,837 Net cash used by investing activities (92,191 ) (45,337 ) Net cash used by financing activities (92,893 ) (134,093 ) Net increase in cash and cash equivalents 45,666 19,407 Cash and cash equivalents, beginning of period 41,732 22,325 Cash and cash equivalents, end of period $ 87,398 $ 41,732 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 Adjusted EBITDA as net income adjusted to exclude (1) income tax expense, (2) interest expense, net, (3) depreciation and amortization expense, (4) amortization of customer relationship intangibles and trademarks, (5) 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, (6) non-recurring restructuring charges, (7) stock-based compensation expense, (8) gain/loss on asset disposals, (9) change in fair value of foreign exchange forward contracts, (10) net gain/loss on debt forgiveness and modification, and (11) 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 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/loss on debt forgiveness and modification and the amortization of customer relationship intangibles and trademarks. 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. 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 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 Twelve Months Ended April 30, April 30, (in thousands) 2024 2023 2024 2023 Net income (GAAP) $ 26,798 $ 30,141 $ 116,216 $ 93,723 Add back: Income tax expense 7,799 7,688 35,752 28,963 Interest expense, net 1,885 3,216 8,207 15,994 Depreciation and amortization expense 12,596 11,499 48,337 48,077 Amortization of customer relationship intangibles and trademarks — 11,417 30,444 45,667 EBITDA (Non-GAAP) $ 49,078 $ 63,961 $ 238,956 $ 232,424 Add back: Acquisition and restructuring related expenses (1) — 20 47 80 Non-recurring restructuring charges, net (2) — 215 (198 ) 1,525 Pension settlement, net — (55 ) — (7 ) Net gain on debt modification — (2,089 ) — (2,089 ) Change in fair value of foreign exchange forward contracts (3) 1,785 904 1,544 — Stock-based compensation expense 3,496 2,147 10,682 7,396 Loss on asset disposal 319 171 1,742 1,050 Adjusted EBITDA (Non-GAAP) $ 54,678 $ 65,274 $ 252,773 $ 240,379 Net Sales $ 453,278 $ 481,095 $ 1,847,502 $ 2,066,200 Net income margin (GAAP) 5.9 % 6.3 % 6.3 % 4.5 % Adjusted EBITDA margin (Non-GAAP) 12.1 % 13.6 % 13.7 % 11.6 % (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 permanent layoffs that occurred during the third and fourth quarters of fiscal 2023 and the closure of the manufacturing plant in Humboldt, Tennessee. (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 in the operating results. Reconciliation of Net Income to Adjusted Net Income Three Months Ended Twelve Months Ended April 30, April 30, (in thousands, except share data) 2024 2023 2024 2023 Net income (GAAP) $ 26,798 $ 30,141 $ 116,216 $ 93,723 Add back: Acquisition and restructuring related expenses — 20 47 80 Non-recurring restructuring charges, net — 215 (198 ) 1,525 Pension settlement, net — (55 ) — (7 ) Amortization of customer relationship intangibles and trademarks — 11,417 30,444 45,667 Net gain on debt modification — (2,089 ) — (2,089 ) Tax benefit of add backs 121 (2,589 ) (7,785 ) (11,791 ) Adjusted net income (Non-GAAP) $ 26,919 $ 37,060 $ 138,724 $ 127,108 Weighted average diluted shares (GAAP) 15,881,015 16,735,892 16,260,222 16,685,359 EPS per diluted share (GAAP) $ 1.69 $ 1.80 $ 7.15 $ 5.62 Adjusted EPS per diluted share (Non-GAAP) $ 1.70 $ 2.21 $ 8.53 $ 7.62 Free Cash Flow Twelve Months Ended April 30, 2024 2023 Cash provided by operating activities $ 230,750 $ 198,837 Less: Capital expenditures (1) 92,241 45,380 Free cash flow $ 138,509 $ 153,457 (1) Capital expenditures consist of cash payments for property, plant and equipment and cash payments for investments in displays. Net Leverage Twelve Months Ended April 30, (in thousands) 2024 Net income (GAAP) $ 116,216 Add back: Income tax expense 35,752 Interest expense, net 8,207 Depreciation and amortization expense 48,337 Amortization of customer relationship intangibles and trademarks 30,444 EBITDA (Non-GAAP) $ 238,956 Add back: Acquisition and restructuring related expenses (1) 47 Non-recurring restructuring charges, net (2) (198 ) Change in fair value of foreign exchange forward contracts (3) 1,544 Stock-based compensation expense 10,682 Loss on asset disposal 1,742 Adjusted EBITDA (Non-GAAP) $ 252,773 As of April 30, 2024 Current maturities of long-term debt $ 2,722 Long-term debt, less current maturities 371,761 Total debt 374,483 Less: cash and cash equivalents (87,398 ) Net debt $ 287,085 Net leverage (3) 1.14 (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 permanent layoffs that occurred during the third and fourth quarters of fiscal 2023. (3) Net debt divided by Adjusted EBITDA for the twelve months ended April 30, 2024. View source version on businesswire.com: https://www.businesswire.com/news/home/20240523900427/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 Announces Fiscal Fourth Quarter and Fiscal Year Results By: American Woodmark Corporation via Business Wire May 23, 2024 at 16:05 PM EDT Fiscal Fourth Quarter 2024 Financial Highlights: Net sales decreased 5.8% year-over-year to $453.3 million Net income decreased 11.1% year-over-year to $26.8 million GAAP EPS of $1.69; Adjusted EPS of $1.70 Adjusted EBITDA decreased 16.2% year-over-year to $54.7 million Cash provided by operating activities of $43.3 million, free cash flow of $6.8 million Repurchased 170,571 shares for $15.9 million Fiscal 2024 Financial Highlights: Net sales decreased 10.6% year-over-year to $1,847.5 million Net income increased 24.0% year-over-year to $116.2 million GAAP EPS of $7.15; Adjusted EPS of $8.53 Adjusted EBITDA increased 5.2% year-over-year to $252.8 million Cash provided by operating activities of $230.8 million, free cash flow of $138.5 million Repurchased 1,108,715 shares for $87.7 million American Woodmark Corporation (NASDAQ: AMWD) (the "Company") today announced results for its fourth fiscal quarter ended April 30, 2024 and its fiscal year ended April 30, 2024. “Our teams delivered another strong quarter despite the soft remodel market demand environment,” said Scott Culbreth, President and CEO. “Net sales and Adjusted EBITDA exceeded our expectations for the quarter as the demand environment began to improve. For the full fiscal year, our teams grew Adjusted EBITDA to $252.8 million and improved Adjusted EBITDA margin by over 200 bps despite a 10.6% reduction in net sales, which demonstrated our strategic focus on automation and operational excellence is working. Our net sales outlook for fiscal year 2025 is for low single digit growth as we look to grow across all channels. We will continue to invest in the business through automation, capacity and digital transformation to operate as one company allowing us to achieve our long-term targets.” Fourth Quarter Results Net sales for the fourth quarter of fiscal 2024 decreased $27.8 million, or 5.8%, to $453.3 million compared with the same quarter of the prior fiscal year. Net income was $26.8 million ($1.69 per diluted share) compared with $30.1 million ($1.80 per diluted share) in the same quarter of the prior fiscal year. Net income for the fourth quarter of fiscal 2024 decreased $3.3 million due primarily to a decrease in net sales and the one-time startup costs for our new locations in Hamlet, North Carolina and Monterrey, Mexico. Adjusted EPS per diluted share was $1.70 for the fourth quarter of fiscal 2024 compared with $2.21 in the same quarter of the prior fiscal year. Adjusted EBITDA for the fourth quarter of fiscal 2024 decreased $10.6 million, or 16.2%, to $54.7 million, or 12.1% of net sales, compared to $65.3 million, or 13.6% of net sales, for the same quarter of the prior fiscal year. Fiscal Year Results Net sales for the fiscal year ended April 30, 2024 decreased 10.6% to $1,847.5 million from the prior fiscal year. Net income for the current fiscal year was $116.2 million ($7.15 per diluted share) compared with net income of $93.7 million ($5.62 per diluted share) for the prior fiscal year. Net income for fiscal 2024 increased primarily due to the result of pricing better matching inflationary pressures and overall increased efficiencies across our existing operating locations. These benefits were partially offset by one time startup costs and inefficiencies driven by our new locations in Hamlet, North Carolina and Monterrey, Mexico, which will continue to ramp up production throughout the calendar year. Adjusted EPS per diluted share was $8.53 for the current fiscal year compared with $7.62 for the prior fiscal year. Adjusted EBITDA for the current fiscal year was $252.8 million, or 13.7% of net sales, compared to $240.4 million, or 11.6% of net sales, for the prior fiscal year. Balance Sheet & Cash Flow As of April 30, 2024, the Company had $87.4 million in cash plus access to $322.9 million of additional availability under its revolving credit facility. Also, as of April 30, 2024, 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 year was $230.8 million and free cash flow totaled $138.5 million. The Company repurchased 170,571 shares, or approximately 1.1% of shares outstanding, for $15.9 million during the fourth quarter of fiscal 2024, and 1,108,715 shares, or approximately 7.1% of shares outstanding, for $87.7 million during fiscal 2024. As of April 30, 2024, $89.5 million of funds remained available from the amounts authorized by the Board to repurchase the Company's common stock. Fiscal 2025 Financial Outlook For fiscal 2025 the Company expects: Low single digit net sales increase year-over-year Adjusted EBITDA in the range of $235 million to $255 million “Given the strong operational and commercial performance that our teams delivered in our fiscal year 2024, we are projecting our fiscal 2025 net sales to increase low single digits and deliver Adjusted EBITDA in the range of $235 to $255 million,” said Paul Joachimczyk, Senior Vice President and Chief Financial Officer. 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 Twelve Months Ended April 30, April 30, 2024 2023 2024 2023 Net sales $ 453,278 $ 481,095 $ 1,847,502 $ 2,066,200 Cost of sales & distribution 369,179 384,392 1,469,695 1,708,676 Gross profit 84,099 96,703 377,807 357,524 Sales & marketing expense 23,613 22,821 92,603 94,602 General & administrative expense 22,262 33,916 124,008 125,045 Restructuring charges, net — 215 (198 ) 1,525 Operating income 38,224 39,751 161,394 136,352 Interest expense, net 1,885 3,216 8,207 15,994 Pension settlement, net — (55 ) — (7 ) Other expense (income), net 1,742 850 1,219 (232 ) Net gain on debt modification — (2,089 ) — (2,089 ) Income tax expense 7,799 7,688 35,752 28,963 Net income $ 26,798 $ 30,141 $ 116,216 $ 93,723 Earnings Per Share: Weighted average shares outstanding - diluted 15,881,015 16,735,892 16,260,222 16,685,359 Net income per diluted share $ 1.69 $ 1.80 $ 7.15 $ 5.62 Condensed Consolidated Balance Sheet (Unaudited) April 30, 2024 2023 Cash & cash equivalents $ 87,398 $ 41,732 Customer receivables 117,559 119,163 Inventories 159,101 190,699 Income taxes receivable 14,548 — Other current assets 24,104 16,661 Total current assets 402,710 368,255 Property, plant & equipment, net 272,461 219,415 Operating lease assets, net 126,383 99,526 Customer relationship intangibles, net — 30,444 Goodwill 767,612 767,612 Other assets 24,699 33,546 Total assets $ 1,593,865 $ 1,518,798 Current portion - long-term debt $ 2,722 $ 2,263 Short-term operating lease liabilities 27,409 24,778 Accounts payable & accrued expenses 165,595 151,083 Total current liabilities 195,726 178,124 Long-term debt 371,761 369,396 Deferred income taxes 5,002 11,930 Long-term operating lease liabilities 106,573 81,370 Other liabilities 4,427 4,190 Total liabilities 683,489 645,010 Stockholders' equity 910,376 873,788 Total liabilities & stockholders' equity $ 1,593,865 $ 1,518,798 Condensed Consolidated Statements of Cash Flows (Unaudited) Twelve Months Ended April 30, 2024 2023 Net cash provided by operating activities $ 230,750 $ 198,837 Net cash used by investing activities (92,191 ) (45,337 ) Net cash used by financing activities (92,893 ) (134,093 ) Net increase in cash and cash equivalents 45,666 19,407 Cash and cash equivalents, beginning of period 41,732 22,325 Cash and cash equivalents, end of period $ 87,398 $ 41,732 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 Adjusted EBITDA as net income adjusted to exclude (1) income tax expense, (2) interest expense, net, (3) depreciation and amortization expense, (4) amortization of customer relationship intangibles and trademarks, (5) 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, (6) non-recurring restructuring charges, (7) stock-based compensation expense, (8) gain/loss on asset disposals, (9) change in fair value of foreign exchange forward contracts, (10) net gain/loss on debt forgiveness and modification, and (11) 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 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/loss on debt forgiveness and modification and the amortization of customer relationship intangibles and trademarks. 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. 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 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 Twelve Months Ended April 30, April 30, (in thousands) 2024 2023 2024 2023 Net income (GAAP) $ 26,798 $ 30,141 $ 116,216 $ 93,723 Add back: Income tax expense 7,799 7,688 35,752 28,963 Interest expense, net 1,885 3,216 8,207 15,994 Depreciation and amortization expense 12,596 11,499 48,337 48,077 Amortization of customer relationship intangibles and trademarks — 11,417 30,444 45,667 EBITDA (Non-GAAP) $ 49,078 $ 63,961 $ 238,956 $ 232,424 Add back: Acquisition and restructuring related expenses (1) — 20 47 80 Non-recurring restructuring charges, net (2) — 215 (198 ) 1,525 Pension settlement, net — (55 ) — (7 ) Net gain on debt modification — (2,089 ) — (2,089 ) Change in fair value of foreign exchange forward contracts (3) 1,785 904 1,544 — Stock-based compensation expense 3,496 2,147 10,682 7,396 Loss on asset disposal 319 171 1,742 1,050 Adjusted EBITDA (Non-GAAP) $ 54,678 $ 65,274 $ 252,773 $ 240,379 Net Sales $ 453,278 $ 481,095 $ 1,847,502 $ 2,066,200 Net income margin (GAAP) 5.9 % 6.3 % 6.3 % 4.5 % Adjusted EBITDA margin (Non-GAAP) 12.1 % 13.6 % 13.7 % 11.6 % (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 permanent layoffs that occurred during the third and fourth quarters of fiscal 2023 and the closure of the manufacturing plant in Humboldt, Tennessee. (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 in the operating results. Reconciliation of Net Income to Adjusted Net Income Three Months Ended Twelve Months Ended April 30, April 30, (in thousands, except share data) 2024 2023 2024 2023 Net income (GAAP) $ 26,798 $ 30,141 $ 116,216 $ 93,723 Add back: Acquisition and restructuring related expenses — 20 47 80 Non-recurring restructuring charges, net — 215 (198 ) 1,525 Pension settlement, net — (55 ) — (7 ) Amortization of customer relationship intangibles and trademarks — 11,417 30,444 45,667 Net gain on debt modification — (2,089 ) — (2,089 ) Tax benefit of add backs 121 (2,589 ) (7,785 ) (11,791 ) Adjusted net income (Non-GAAP) $ 26,919 $ 37,060 $ 138,724 $ 127,108 Weighted average diluted shares (GAAP) 15,881,015 16,735,892 16,260,222 16,685,359 EPS per diluted share (GAAP) $ 1.69 $ 1.80 $ 7.15 $ 5.62 Adjusted EPS per diluted share (Non-GAAP) $ 1.70 $ 2.21 $ 8.53 $ 7.62 Free Cash Flow Twelve Months Ended April 30, 2024 2023 Cash provided by operating activities $ 230,750 $ 198,837 Less: Capital expenditures (1) 92,241 45,380 Free cash flow $ 138,509 $ 153,457 (1) Capital expenditures consist of cash payments for property, plant and equipment and cash payments for investments in displays. Net Leverage Twelve Months Ended April 30, (in thousands) 2024 Net income (GAAP) $ 116,216 Add back: Income tax expense 35,752 Interest expense, net 8,207 Depreciation and amortization expense 48,337 Amortization of customer relationship intangibles and trademarks 30,444 EBITDA (Non-GAAP) $ 238,956 Add back: Acquisition and restructuring related expenses (1) 47 Non-recurring restructuring charges, net (2) (198 ) Change in fair value of foreign exchange forward contracts (3) 1,544 Stock-based compensation expense 10,682 Loss on asset disposal 1,742 Adjusted EBITDA (Non-GAAP) $ 252,773 As of April 30, 2024 Current maturities of long-term debt $ 2,722 Long-term debt, less current maturities 371,761 Total debt 374,483 Less: cash and cash equivalents (87,398 ) Net debt $ 287,085 Net leverage (3) 1.14 (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 permanent layoffs that occurred during the third and fourth quarters of fiscal 2023. (3) Net debt divided by Adjusted EBITDA for the twelve months ended April 30, 2024. View source version on businesswire.com: https://www.businesswire.com/news/home/20240523900427/en/Contacts Kevin Dunnigan VP & Treasurer 540-665-9100
Fiscal Fourth Quarter 2024 Financial Highlights: Net sales decreased 5.8% year-over-year to $453.3 million Net income decreased 11.1% year-over-year to $26.8 million GAAP EPS of $1.69; Adjusted EPS of $1.70 Adjusted EBITDA decreased 16.2% year-over-year to $54.7 million Cash provided by operating activities of $43.3 million, free cash flow of $6.8 million Repurchased 170,571 shares for $15.9 million Fiscal 2024 Financial Highlights: Net sales decreased 10.6% year-over-year to $1,847.5 million Net income increased 24.0% year-over-year to $116.2 million GAAP EPS of $7.15; Adjusted EPS of $8.53 Adjusted EBITDA increased 5.2% year-over-year to $252.8 million Cash provided by operating activities of $230.8 million, free cash flow of $138.5 million Repurchased 1,108,715 shares for $87.7 million
American Woodmark Corporation (NASDAQ: AMWD) (the "Company") today announced results for its fourth fiscal quarter ended April 30, 2024 and its fiscal year ended April 30, 2024. “Our teams delivered another strong quarter despite the soft remodel market demand environment,” said Scott Culbreth, President and CEO. “Net sales and Adjusted EBITDA exceeded our expectations for the quarter as the demand environment began to improve. For the full fiscal year, our teams grew Adjusted EBITDA to $252.8 million and improved Adjusted EBITDA margin by over 200 bps despite a 10.6% reduction in net sales, which demonstrated our strategic focus on automation and operational excellence is working. Our net sales outlook for fiscal year 2025 is for low single digit growth as we look to grow across all channels. We will continue to invest in the business through automation, capacity and digital transformation to operate as one company allowing us to achieve our long-term targets.” Fourth Quarter Results Net sales for the fourth quarter of fiscal 2024 decreased $27.8 million, or 5.8%, to $453.3 million compared with the same quarter of the prior fiscal year. Net income was $26.8 million ($1.69 per diluted share) compared with $30.1 million ($1.80 per diluted share) in the same quarter of the prior fiscal year. Net income for the fourth quarter of fiscal 2024 decreased $3.3 million due primarily to a decrease in net sales and the one-time startup costs for our new locations in Hamlet, North Carolina and Monterrey, Mexico. Adjusted EPS per diluted share was $1.70 for the fourth quarter of fiscal 2024 compared with $2.21 in the same quarter of the prior fiscal year. Adjusted EBITDA for the fourth quarter of fiscal 2024 decreased $10.6 million, or 16.2%, to $54.7 million, or 12.1% of net sales, compared to $65.3 million, or 13.6% of net sales, for the same quarter of the prior fiscal year. Fiscal Year Results Net sales for the fiscal year ended April 30, 2024 decreased 10.6% to $1,847.5 million from the prior fiscal year. Net income for the current fiscal year was $116.2 million ($7.15 per diluted share) compared with net income of $93.7 million ($5.62 per diluted share) for the prior fiscal year. Net income for fiscal 2024 increased primarily due to the result of pricing better matching inflationary pressures and overall increased efficiencies across our existing operating locations. These benefits were partially offset by one time startup costs and inefficiencies driven by our new locations in Hamlet, North Carolina and Monterrey, Mexico, which will continue to ramp up production throughout the calendar year. Adjusted EPS per diluted share was $8.53 for the current fiscal year compared with $7.62 for the prior fiscal year. Adjusted EBITDA for the current fiscal year was $252.8 million, or 13.7% of net sales, compared to $240.4 million, or 11.6% of net sales, for the prior fiscal year. Balance Sheet & Cash Flow As of April 30, 2024, the Company had $87.4 million in cash plus access to $322.9 million of additional availability under its revolving credit facility. Also, as of April 30, 2024, 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 year was $230.8 million and free cash flow totaled $138.5 million. The Company repurchased 170,571 shares, or approximately 1.1% of shares outstanding, for $15.9 million during the fourth quarter of fiscal 2024, and 1,108,715 shares, or approximately 7.1% of shares outstanding, for $87.7 million during fiscal 2024. As of April 30, 2024, $89.5 million of funds remained available from the amounts authorized by the Board to repurchase the Company's common stock. Fiscal 2025 Financial Outlook For fiscal 2025 the Company expects: Low single digit net sales increase year-over-year Adjusted EBITDA in the range of $235 million to $255 million “Given the strong operational and commercial performance that our teams delivered in our fiscal year 2024, we are projecting our fiscal 2025 net sales to increase low single digits and deliver Adjusted EBITDA in the range of $235 to $255 million,” said Paul Joachimczyk, Senior Vice President and Chief Financial Officer. 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 Twelve Months Ended April 30, April 30, 2024 2023 2024 2023 Net sales $ 453,278 $ 481,095 $ 1,847,502 $ 2,066,200 Cost of sales & distribution 369,179 384,392 1,469,695 1,708,676 Gross profit 84,099 96,703 377,807 357,524 Sales & marketing expense 23,613 22,821 92,603 94,602 General & administrative expense 22,262 33,916 124,008 125,045 Restructuring charges, net — 215 (198 ) 1,525 Operating income 38,224 39,751 161,394 136,352 Interest expense, net 1,885 3,216 8,207 15,994 Pension settlement, net — (55 ) — (7 ) Other expense (income), net 1,742 850 1,219 (232 ) Net gain on debt modification — (2,089 ) — (2,089 ) Income tax expense 7,799 7,688 35,752 28,963 Net income $ 26,798 $ 30,141 $ 116,216 $ 93,723 Earnings Per Share: Weighted average shares outstanding - diluted 15,881,015 16,735,892 16,260,222 16,685,359 Net income per diluted share $ 1.69 $ 1.80 $ 7.15 $ 5.62 Condensed Consolidated Balance Sheet (Unaudited) April 30, 2024 2023 Cash & cash equivalents $ 87,398 $ 41,732 Customer receivables 117,559 119,163 Inventories 159,101 190,699 Income taxes receivable 14,548 — Other current assets 24,104 16,661 Total current assets 402,710 368,255 Property, plant & equipment, net 272,461 219,415 Operating lease assets, net 126,383 99,526 Customer relationship intangibles, net — 30,444 Goodwill 767,612 767,612 Other assets 24,699 33,546 Total assets $ 1,593,865 $ 1,518,798 Current portion - long-term debt $ 2,722 $ 2,263 Short-term operating lease liabilities 27,409 24,778 Accounts payable & accrued expenses 165,595 151,083 Total current liabilities 195,726 178,124 Long-term debt 371,761 369,396 Deferred income taxes 5,002 11,930 Long-term operating lease liabilities 106,573 81,370 Other liabilities 4,427 4,190 Total liabilities 683,489 645,010 Stockholders' equity 910,376 873,788 Total liabilities & stockholders' equity $ 1,593,865 $ 1,518,798 Condensed Consolidated Statements of Cash Flows (Unaudited) Twelve Months Ended April 30, 2024 2023 Net cash provided by operating activities $ 230,750 $ 198,837 Net cash used by investing activities (92,191 ) (45,337 ) Net cash used by financing activities (92,893 ) (134,093 ) Net increase in cash and cash equivalents 45,666 19,407 Cash and cash equivalents, beginning of period 41,732 22,325 Cash and cash equivalents, end of period $ 87,398 $ 41,732 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 Adjusted EBITDA as net income adjusted to exclude (1) income tax expense, (2) interest expense, net, (3) depreciation and amortization expense, (4) amortization of customer relationship intangibles and trademarks, (5) 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, (6) non-recurring restructuring charges, (7) stock-based compensation expense, (8) gain/loss on asset disposals, (9) change in fair value of foreign exchange forward contracts, (10) net gain/loss on debt forgiveness and modification, and (11) 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 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/loss on debt forgiveness and modification and the amortization of customer relationship intangibles and trademarks. 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. 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 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 Twelve Months Ended April 30, April 30, (in thousands) 2024 2023 2024 2023 Net income (GAAP) $ 26,798 $ 30,141 $ 116,216 $ 93,723 Add back: Income tax expense 7,799 7,688 35,752 28,963 Interest expense, net 1,885 3,216 8,207 15,994 Depreciation and amortization expense 12,596 11,499 48,337 48,077 Amortization of customer relationship intangibles and trademarks — 11,417 30,444 45,667 EBITDA (Non-GAAP) $ 49,078 $ 63,961 $ 238,956 $ 232,424 Add back: Acquisition and restructuring related expenses (1) — 20 47 80 Non-recurring restructuring charges, net (2) — 215 (198 ) 1,525 Pension settlement, net — (55 ) — (7 ) Net gain on debt modification — (2,089 ) — (2,089 ) Change in fair value of foreign exchange forward contracts (3) 1,785 904 1,544 — Stock-based compensation expense 3,496 2,147 10,682 7,396 Loss on asset disposal 319 171 1,742 1,050 Adjusted EBITDA (Non-GAAP) $ 54,678 $ 65,274 $ 252,773 $ 240,379 Net Sales $ 453,278 $ 481,095 $ 1,847,502 $ 2,066,200 Net income margin (GAAP) 5.9 % 6.3 % 6.3 % 4.5 % Adjusted EBITDA margin (Non-GAAP) 12.1 % 13.6 % 13.7 % 11.6 % (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 permanent layoffs that occurred during the third and fourth quarters of fiscal 2023 and the closure of the manufacturing plant in Humboldt, Tennessee. (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 in the operating results. Reconciliation of Net Income to Adjusted Net Income Three Months Ended Twelve Months Ended April 30, April 30, (in thousands, except share data) 2024 2023 2024 2023 Net income (GAAP) $ 26,798 $ 30,141 $ 116,216 $ 93,723 Add back: Acquisition and restructuring related expenses — 20 47 80 Non-recurring restructuring charges, net — 215 (198 ) 1,525 Pension settlement, net — (55 ) — (7 ) Amortization of customer relationship intangibles and trademarks — 11,417 30,444 45,667 Net gain on debt modification — (2,089 ) — (2,089 ) Tax benefit of add backs 121 (2,589 ) (7,785 ) (11,791 ) Adjusted net income (Non-GAAP) $ 26,919 $ 37,060 $ 138,724 $ 127,108 Weighted average diluted shares (GAAP) 15,881,015 16,735,892 16,260,222 16,685,359 EPS per diluted share (GAAP) $ 1.69 $ 1.80 $ 7.15 $ 5.62 Adjusted EPS per diluted share (Non-GAAP) $ 1.70 $ 2.21 $ 8.53 $ 7.62 Free Cash Flow Twelve Months Ended April 30, 2024 2023 Cash provided by operating activities $ 230,750 $ 198,837 Less: Capital expenditures (1) 92,241 45,380 Free cash flow $ 138,509 $ 153,457 (1) Capital expenditures consist of cash payments for property, plant and equipment and cash payments for investments in displays. Net Leverage Twelve Months Ended April 30, (in thousands) 2024 Net income (GAAP) $ 116,216 Add back: Income tax expense 35,752 Interest expense, net 8,207 Depreciation and amortization expense 48,337 Amortization of customer relationship intangibles and trademarks 30,444 EBITDA (Non-GAAP) $ 238,956 Add back: Acquisition and restructuring related expenses (1) 47 Non-recurring restructuring charges, net (2) (198 ) Change in fair value of foreign exchange forward contracts (3) 1,544 Stock-based compensation expense 10,682 Loss on asset disposal 1,742 Adjusted EBITDA (Non-GAAP) $ 252,773 As of April 30, 2024 Current maturities of long-term debt $ 2,722 Long-term debt, less current maturities 371,761 Total debt 374,483 Less: cash and cash equivalents (87,398 ) Net debt $ 287,085 Net leverage (3) 1.14 (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 permanent layoffs that occurred during the third and fourth quarters of fiscal 2023. (3) Net debt divided by Adjusted EBITDA for the twelve months ended April 30, 2024. View source version on businesswire.com: https://www.businesswire.com/news/home/20240523900427/en/