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American Woodmark Corporation Announces First Quarter Results

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American Woodmark Corporation Announces First Quarter Results

PR Newswire

WINCHESTER, Va., Aug. 27, 2018 /PRNewswire/ -- American Woodmark Corporation (NASDAQ:AMWD) (the "Company") today announced results for its first fiscal quarter ended July 31, 2018.

Fiscal First Quarter 2019

Net sales for the first fiscal quarter increased 55% to $429.0 million compared with the same quarter of the prior fiscal year.  The current first fiscal quarter results include three months of results from the Company's acquisition of RSI Home Products, Inc. ("RSI"), which closed December 29, 2017.  Excluding the impact of the RSI acquisition, net sales for the first fiscal quarter increased 8% to $299.0 million compared with the same quarter of the prior fiscal year.  Excluding the impact of the RSI acquisition, the Company experienced growth in all channels during the first quarter of fiscal year 2019.

Net income was $24.8 million ($1.41 per diluted share) for the first quarter of the current fiscal year compared with $22.3 million ($1.36 per diluted share) in the same quarter of the prior fiscal year.  Net income was positively impacted by the RSI acquisition and additional sales volumes which were partially offset by restructuring charges of $2.4 million, intangible amortization of $12.3 million and raw material inflation.  Adjusted EPS per diluted share was $2.04 for the first quarter of the current fiscal year compared with $1.36 in the same quarter of the prior fiscal year.

Adjusted EBITDA was $68.1 million, or 15.9% of net sales compared to $37.4 million, or 13.5% of net sales for the same quarter of the prior fiscal year.  The increase is primarily due to sales growth in the quarter and the inclusion of three months of results for RSI.

"We are very pleased with our solid performance for the first quarter of our new fiscal year", said Cary Dunston, Chairman and CEO.  "We experienced growth in all channels, over-indexing the market as a whole.  Our integration work remains on plan as we have come together as one team with a clear vision for success."

Cash provided by operating activities for the first fiscal quarter was $52.9 million.  Free cash flow totaled $41.4 million for the first fiscal quarter.  Additionally, the Company paid down $63.0 million of its term loan facility during the first fiscal quarter.

On August 23, 2018, the Company's Board of Directors reinstated the Company's previously suspended stock repurchase program, subject to the approval of certain changes to the Company's existing credit facility currently being negotiated with lenders.  The Company previously announced the suspension of its stock repurchase program in December 2017 in connection with its then-proposed acquisition of RSI.  Approximately $36 million remains available under the program for repurchases.

About American Woodmark

American Woodmark Corporation manufactures and distributes kitchen, bath and home organization products for the remodeling and new home construction markets.  Its products are sold on a national basis directly to home centers, builders and through a network of independent dealers and distributors.  At July 31, 2018, the Company operated eighteen manufacturing facilities in the United States and Mexico and seven primary service centers located throughout the United States.

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




2018


2017







Net sales


$

428,962



$

276,827


Cost of sales & distribution


333,226



218,469



Gross profit


95,736



58,358


Sales & marketing expense


22,938



18,198


General & administrative expense


29,830



9,527


Restructuring charges


2,441





Operating income


40,527



30,633


Interest expense & other income


7,988



(739)


Income tax expense


7,772



9,091



Net income


$

24,767



$

22,281








Earnings Per Share:





Weighted average shares outstanding - diluted


17,618,943



16,355,045








Net income per diluted share


$

1.41



$

1.36


 

 

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