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Quanex Building Products Announces Fourth Quarter and Fiscal Year 2018 Results

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Underlying Sales Growth of ~6% in Fiscal 2018
Working Capital Management Helped Boost Free Cash Flow by ~73% in Fiscal 2018
Gross Margin Expansion of >200 Basis Points in NA Cabinet Components Segment in 4Q18

HOUSTON, Dec. 10, 2018 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation (NYSE:NX) ("Quanex" or the "Company") today announced its results for the quarter and fiscal year ended October 31, 2018. 

Bill Griffiths, Chairman, President and Chief Executive Officer, commented, "The free cash flow profile of our business is strong and our disciplined management of working capital was exceptional during the fourth quarter.  As a result, and consistent with our plans to return capital to shareholders, we repurchased approximately $32 million in stock during the fourth quarter while maintaining our leverage ratio of 2.0x.  In addition, we paid down approximately $28 million of bank debt in fiscal 2018.  Looking ahead, we remain committed to maintaining a healthy balance sheet and returning capital to shareholders.

"Market growth and price increases led to underlying growth of approximately 6% in fiscal 2018; however, net sales in August and September were softer than anticipated.  Overall, fourth quarter results were impacted by elevated SG&A expense due to a rise in unforeseen medical costs coupled with higher annual incentive accruals, which are based on a modified free cash flow metric.  At the same time, as a result of operational improvements and better pricing, we achieved gross margin expansion for the second consecutive quarter and for the full fiscal year in our North American Cabinet Components segment."  

Fourth Quarter and Fiscal Year 2018 Results Summary  

The Company reported the following selected financial results: 

    Three Months Ended October 31,   Twelve Months Ended October 31,
     2018    2017    2018    2017
Net Sales   $244.1   $233.0   $889.8   $866.6
Net Income   $6.5   $10.7   $26.3   $18.7
Diluted EPS   $0.19   $0.31   $0.75   $0.54
                 
Adjusted Net Income   $7.6   $13.1   $22.7   $27.0
Adjusted Diluted EPS   $0.22   $0.37   $0.65   $0.77
Adjusted EBITDA   $25.2   $33.3   $90.9   $99.0
                 
Cash provided by operating activities   $56.2   $33.3   $104.6   $79.8
Free Cash Flow   $50.8   $25.8   $78.1   $45.2

(See Non-GAAP Terminology Definitions and Disclaimers section, Non-GAAP Financial Measure Disclosure table, Selected Segment Data table and Free Cash Flow Reconciliation table for additional information)

The increases in net sales were mainly driven by market growth combined with price increases largely related to raw material inflation recovery and a favorable foreign exchange impact.  (See Sales Analysis table for additional information)

The decreases in adjusted earnings were mostly due to the negative impact of inflationary pressures and an increase in selling, general and administrative expense.  The increase in selling, general and administrative expense was driven by elevated medical costs and higher annual incentive accruals. Results for the fourth quarter and full fiscal year 2017 included a benefit of $2.0 million and $4.0 million, respectively, related to legal expense reimbursement from one of the Company's insurance carriers.  (See Non-GAAP Terminology Definitions and Disclaimers section, Non-GAAP Financial Measure Disclosure table and Selected Segment Data table for additional information)          

As previously disclosed, Quanex repurchased 1.9 million shares in a privately negotiated transaction at $16.86 per share during the fourth quarter of 2018 and has approximately $28 million remaining under its current share repurchase program. 

As of October 31, 2018, the Company's leverage ratio of Net Debt to LTM Adjusted EBITDA was unchanged at 2.0x.  (See Non-GAAP Terminology Definitions and Disclaimers section for additional information) 

Outlook

Bill Griffiths, Chairman, President and Chief Executive Officer, stated, "It is clear that, at a macro level, expectations for growth in the new construction segment are dropping; however, we believe the repair and remodel segment will continue to strengthen, and Quanex is more weighted to this segment than new construction.  Accordingly, we expect revenue growth of 4% to 6% in fiscal 2019.

"It is also clear that inflation is here to stay, and while we are very confident that we can recover this through pricing, realizing significant margin expansion will be challenging.  Therefore, we expect to generate between $97 million and $107 million in Adjusted EBITDA in fiscal 2019."  (See Forward Looking Statements and Non-GAAP Terminology Definitions and Disclaimers sections for additional information)

Conference Call and Webcast Information

The Company has scheduled a conference call for Tuesday, December 11, 2018, at 11:00 a.m. ET (10:00 a.m. CT).  To participate in the conference call dial (877) 388-2139 for domestic callers and (541) 797-2983 for international callers, in both cases using the conference passcode 6995087, and ask for the Quanex call a few minutes prior to the start time.  A link to the live audio webcast will also be available on the Company's website at http://www.quanex.com in the Investors section under Presentations & Events.  A telephonic replay of the call will be available approximately two hours after the live broadcast ends and will be accessible through December 18, 2018.  To access the replay dial (855) 859-2056 for domestic callers and (404) 537-3406 for international callers, in both cases referencing conference passcode 6995087. 

About Quanex

Quanex Building Products Corporation is an industry-leading manufacturer of components sold to Original Equipment Manufacturers (OEMs) in the building products industry.  Quanex designs and produces energy-efficient fenestration products in addition to kitchen and bath cabinet components.

For more information contact Scott Zuehlke, Vice President, Investor Relations & Treasurer, at 713-877-5327 or scott.zuehlke@quanex.com.

Non-GAAP Terminology Definitions and Disclaimers

Adjusted Net Income (Loss) (defined as net income further adjusted to exclude purchase price accounting inventory step-ups, transaction costs, gain/loss on the sale of fixed assets, restructuring charges, other net adjustments related to foreign currency transaction gain/loss and effective tax rates reflecting impacts of adjustments on a with and without basis) and Adjusted EPS are non-GAAP financial measures that Quanex believes provide a consistent basis for comparison between periods and more accurately reflects operational performance, as they are not influenced by certain income or expense items not affecting ongoing operations. EBITDA (defined as net income or loss before interest, taxes, depreciation and amortization and other, net) and Adjusted EBITDA (defined as EBITDA further adjusted to exclude purchase price accounting inventory step-ups, transaction costs, gain/loss on the sale of fixed assets, and restructuring charges) are non-GAAP financial measures that the Company uses to measure operational performance and assist with financial decision-making.  When Quanex provides expectations for Adjusted EBITDA on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and corresponding GAAP measures is generally not available without unreasonable effort.  Net Debt is calculated using the sum of current maturities of long-term debt and long-term debt, minus cash and cash equivalents.  The leverage ratio of Net Debt to LTM Adjusted EBITDA is a financial measure that the Company believes is useful to investors and financial analysts in evaluating Quanex's leverage.  In addition, with certain limited adjustments, this leverage ratio is the basis for a key covenant in the Company's credit agreement.  Free Cash Flow is a non-GAAP measure calculated using cash provided by operating activities less capital expenditures.   Free Cash Flow is measured before application of certain contractual commitments (including capital lease obligations), and accordingly is not a true measure of Quanex's residual cash flow available for discretionary expenditures.  The Company believes that the presented non-GAAP measures provide a consistent basis for comparison between periods, and will assist investors in understanding Quanex's financial performance when comparing results to other investment opportunities.  The presented non-GAAP measures may not be the same as those used by other companies.  The Company does not intend for this information to be considered in isolation or as a substitute for other measures prepared in accordance with U.S. GAAP. 

Forward Looking Statements

Statements that use the words "estimated," "expect," "could," "should," "believe," "will," "might," or similar words reflecting future expectations or beliefs are forward-looking statements. The forward-looking statements include, but are not limited to, the Company's future operating results, future financial condition, future uses of cash and other expenditures, expenses and tax rates, expectations relating to Quanex's industry, and the Company's future growth, including any guidance discussed in this press release.  The statements and guidance set forth in this release are based on current expectations.  Actual results or events may differ materially from this release.  For a complete discussion of factors that may affect Quanex's future performance, please refer to the Company's Annual Report on Form 10-K for the fiscal year ended October 31, 2017, under the sections entitled "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors".  Any forward-looking statements in this press release are made as of the date hereof, and Quanex undertakes no obligation to update or revise any forward-looking statements to reflect new information or events.  When the Company provides expectations for Adjusted EBITDA on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and corresponding GAAP measures is generally not available without unreasonable effort.  Certain items required for such a reconciliation are outside of Quanex's control and/or cannot be reasonably predicted or estimated, such as the provision for income taxes.

QUANEX BUILDING PRODUCTS CORPORATION   
CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME   
(In thousands, except per share data)   
(Unaudited)   
                   
    Three Months Ended October 31,   Twelve Months Ended October 31,  
     2018     2017     2018     2017   
                   
Net sales   $   244,086     $   232,959     $   889,785     $   866,555    
Cost of sales       187,776         178,325         696,567         672,162    
Selling, general and administrative       31,486         23,142         103,535         97,981    
Restructuring charges       635         1,467         1,486         4,550    
Depreciation and amortization       12,548         13,794         51,822         57,495    
Operating income       11,641         16,231         36,375         34,367    
Interest expense       (3,516 )       (2,469 )       (11,100 )       (9,595 )  
Other, net       28         158         178         730    
Income before income taxes       8,153         13,920         25,453         25,502    
Income tax (expense) benefit       (1,661 )       (3,188 )       875         (6,819 )  
Net income   $   6,492     $   10,732     $   26,328     $   18,683    
                   
Income per common share, basic   $   0.19     $   0.31     $   0.76     $   0.55    
Income per common share, diluted   $   0.19     $   0.31     $   0.75     $   0.54    
                   
Weighted average common shares outstanding:                  
Basic       34,508         34,493         34,701         34,230    
Diluted       34,732         35,169         35,025         34,837    
                   
Cash dividends per share   $   0.08     $   0.04     $   0.20     $   0.16    
                   

 

QUANEX BUILDING PRODUCTS CORPORATION 
CONDENSED CONSOLIDATED BALANCE SHEETS 
(In thousands) 
(Unaudited) 
           
    October 31, 2018   October 31, 2017  
ASSETS          
Current assets:          
Cash and cash equivalents   $   29,003     $   17,455    
Accounts receivable, net       84,014         79,411    
Inventories, net        69,365         87,529    
Prepaid and other current assets       7,296         7,406    
Total current assets       189,678         191,801    
Property, plant and equipment, net       201,370         211,131    
Goodwill        219,627         222,194    
Intangible assets, net       121,919         139,778    
Other assets       9,255         8,975    
Total assets   $   741,849     $   773,879    
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
Current liabilities:          
Accounts payable   $   52,389     $   44,150    
Accrued liabilities       45,968         38,871    
Income taxes payable       2,780         2,192    
Current maturities of long-term debt       1,224         21,242    
Total current liabilities       102,361         106,455    
Long-term debt       209,332         218,184    
Deferred pension and postretirement benefits       4,218         4,433    
Deferred income taxes       17,215         21,960    
Liabilities for uncertain tax positions       606         591    
Other liabilities       13,965         15,409    
Total liabilities       347,697         367,032    
Stockholders' equity:          
Common stock       374         375    
Additional paid-in-capital       254,678         255,719    
Retained earnings       242,834         225,704    
Accumulated other comprehensive loss       (30,705 )       (25,076 )  
Treasury stock at cost       (73,029 )       (49,875 )  
Total stockholders' equity       394,152         406,847    
Total liabilities and stockholders' equity   $   741,849     $   773,879    
           

 

QUANEX BUILDING PRODUCTS CORPORATION   
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW   
(In thousands)   
(Unaudited)   
         
  Twelve Months Ended October 31,  
   2018    2017 (1)  
Operating activities:        
Net income $   26,328     $   18,683    
Adjustments to reconcile net income to cash provided by operating activities:        
Depreciation and amortization     51,822         57,495    
Stock-based compensation     1,874         5,189    
Deferred income tax     (5,631 )       (112 )  
(Gain) loss on the disposition of capital assets     (142 )       1,528    
Charge for deferred loan costs     1,064         -    
Other, net     135         1,741    
Changes in assets and liabilities:        
(Increase) decrease in accounts receivable     (5,550 )       5,378    
Decrease (increase) in inventory     17,530         (3,240 )  
Decrease in other current assets     217         186    
Increase (decrease) in accounts payable     8,325         (4,893 )  
Increase (decrease) in accrued liabilities     6,892         (7,521 )  
Increase in income taxes payable     676         4,670    
Increase (decrease) in deferred pension and postretirement benefits     2,038         (271 )  
(Decrease) Increase in other long-term liabilities     (523 )       1,382    
Other, net     (444 )       (437 )  
Cash provided by operating activities     104,611         79,778    
Investing activities:        
Acquisitions, net of cash acquired     -         (8,497 )  
Capital expenditures     (26,484 )       (34,564 )  
Proceeds from disposition of capital assets     432         1,937    
Cash used for investing activities     (26,052 )       (41,124 )  
Financing activities:        
Borrowings under credit facilities     268,500         53,500    
Repayments of credit facility borrowings     (296,250 )       (98,875 )  
Debt issuance costs     (1,001 )       -     
Repayments of other long-term debt     (1,798 )       (2,722 )  
Common stock dividends paid     (7,020 )       (5,516 )  
Issuance of common stock     4,746         7,953    
Payroll tax paid to settle shares forfeited upon vesting of stock     (960 )       (976 )  
Purchase of treasury stock     (32,034 )       -    
Cash used for financing activities     (65,817 )       (46,636 )  
Effect of exchange rate changes on cash and cash equivalents     (1,194 )       (89 )  
Decrease in cash and cash equivalents     11,548         (8,071 )  
Cash and cash equivalents at beginning of period     17,455         25,526    
Cash and cash equivalents at end of period $   29,003     $   17,455    
         
(1) Updated to reflect adoption of ASU 2016-09.        
         

 

QUANEX BUILDING PRODUCTS CORPORATION   
FREE CASH FLOW RECONCILIATION  
(In thousands)   
(Unaudited)   
   
The following table reconciles the Company's calculation of Free Cash Flow, a non-GAAP measure, to its most directly comparable GAAP measure.  The Company defines Free Cash Flow as cash provided by operating activities less capital expenditures.
 
                   
    Three Months Ended October 31,   Twelve Months Ended October 31,  
     2018     2017     2018     2017   
Cash provided by operating activities   $56,158     $33,313         104,611         79,778    
Capital expenditures     (5,386 )     (7,466 )     (26,484 )     (34,564 )  
Free Cash Flow   $50,772     $25,847     $78,127     $45,214    

 

QUANEX BUILDING PRODUCTS CORPORATION   
NON-GAAP FINANCIAL MEASURE DISCLOSURE   
(In thousands, except per share data)   
(Unaudited)   
                                           
                                           
 Reconciliation of Adjusted Net Income and Adjusted EPS   Three Months Ended
October 31, 2018
    Three Months Ended
October 31, 2017
    Twelve Months Ended
October 31, 2018
    Twelve Months Ended
October 31, 2017
   
    Net
Income
  Diluted
EPS
    Net
Income
  Diluted
EPS
    Net
Income
  Diluted
EPS
    Net
Income
  Diluted
EPS
   
Net income as reported   $   6,492     $   0.19       $   10,732     $   0.31       $   26,328     $   0.75       $   18,683     $   0.54      
Reconciling items from below       1,085         0.03           2,337         0.06           (3,642 )       (0.11 )         8,303         0.23      
Adjusted net income and adjusted EPS   $   7,577     $   0.22       $   13,069     $   0.37       $   22,686     $   0.65       $   26,986     $   0.77      
                                           
Reconciliation of Adjusted EBITDA   Three Months Ended
October 31, 2018
    Three Months Ended
October 31, 2017
    Twelve Months Ended
October 31, 2018
    Twelve Months Ended
October 31, 2017
   
                                           
    Reconciliation         Reconciliation         Reconciliation         Reconciliation        
Net income as reported   $   6,492           $   10,732           $   26,328           $   18,683          
Income tax expense (benefit)       1,661               3,188               (875 )             6,819          
Other, net       (28 )             (158 )             (178 )             (730 )        
Interest expense       3,516               2,469               11,100               9,595          
Depreciation and amortization       12,548               13,794               51,822               57,495          
EBITDA       24,189               30,025               88,197               91,862          
Reconciling items from below       1,043               3,263               2,693               7,156          
Adjusted EBITDA   $   25,232           $   33,288           $   90,890           $   99,018          
                                           
Reconciling Items   Three Months Ended
October 31, 2018
    Three Months Ended
October 31, 2017
    Twelve Months Ended
October 31, 2018
    Twelve Months Ended
October 31, 2017
   
    Income
Statement
  Reconciling
Items
    Income
Statement
  Reconciling
Items
    Income
Statement
  Reconciling
Items
    Income
Statement
  Reconciling
Items
   
Net sales   $   244,086     $   -        $   232,959     $   -        $   889,785     $   -        $   866,555     $   -       
Cost of sales       187,776         (300 )  (1  )       178,325         -            696,567         (300 )  (1  )       672,162         (104 )  (2  )  
Selling, general and administrative       31,486         (108 )  (3  )       23,142         (1,796 )  (3  )       103,535         (907 )  (3  )       97,981         (2,502 )  (3  )  
Restructuring charges       635         (635 )  (4  )       1,467         (1,467 )  (4  )       1,486         (1,486 )  (4  )       4,550         (4,550 )  (4  )  
EBITDA       24,189         1,043           30,025         3,263           88,197         2,693           91,862         7,156      
Depreciation and amortization       12,548         -            13,794         (731 )  (5  )       51,822         (852 )  (6  )       57,495         (6,233 )  (5  )  
Operating income       11,641         1,043           16,231         3,994           36,375         3,545           34,367         13,389      
Interest expense       (3,516 )       1,064           (2,469 )       -            (11,100 )       1,064           (9,595 )       -       
Other, net       28         (14 )  (7  )       158         (111 )  (7  )       178         (102 )  (7  )       730         (625 )  (7  )  
Income before income taxes       8,153         2,093           13,920         3,883           25,453         4,507           25,502         12,764      
Income tax (expense) benefit       (1,661 )       (1,008 )  (8  )       (3,188 )       (1,546 )  (8  )       875         (8,149 )  (8  )       (6,819 )       (4,461 )  (8  )  
Net income (loss)   $   6,492     $   1,085       $   10,732     $   2,337       $   26,328     $   (3,642 )     $   18,683     $   8,303      
                                           
Diluted earnings per share   $   0.19           $   0.31           $   0.75           $   0.54          
                                           
(1) LIFO inventory reserve adjustment.   
(2) Relates to purchase price accounting inventory step-up impact from HL Plastics acquisition.   
(3) Transaction and advisory fees and in 2017, the loss on the sale of a plant in 4Q17.                  
(4) Restructuring charges relate to the closure of several manufacturing plant facilities.   
(5) Accelerated depreciation and amortization for restructured PP&E and intangible assets.     
(6) Accelerated depreciation for a plant re-layout in the North American Cabinet Components segment.     
(7) Foreign currency transaction gains.     
(8) Impact on a with and without basis.  Twelve months ended October 31, 2018 includes $6.5 million adjustment related to the Tax Cuts and Jobs Act.     
                                           

 

QUANEX BUILDING PRODUCTS CORPORATION   
SELECTED SEGMENT DATA   
(In thousands)   
(Unaudited)   
                       
This table provides operating income (loss), EBITDA, and Adjusted EBITDA by reportable segment.  Non-operating expense and income tax expense are not allocated to the reportable segments.   
    NA Engineered
Components
  EU Engineered
Components
  NA Cabinet
Components
  Unallocated
Corp & Other
  Total  
Three months ended October 31, 2018                      
Net sales   $   135,086     $   44,491     $   66,108     $   (1,599 )   $   244,086    
Cost of sales       102,129         31,634         54,996         (983 )       187,776    
Selling, general and administrative       14,755         5,971         5,605         5,155         31,486    
Restructuring charges       629         -          6         -          635    
Depreciation and amortization       6,687         2,278         3,444         139         12,548    
Operating income (loss)       10,886         4,608         2,057         (5,910 )       11,641    
Depreciation and amortization       6,687         2,278         3,444         139         12,548    
EBITDA       17,573         6,886         5,501         (5,771 )       24,189    
LIFO inventory reserve adjustment       -          -          -          300         300    
Transaction and advisory fees       -          -          -          108         108    
Restructuring charges       629         -          6         -          635    
Adjusted EBITDA    $   18,202     $   6,886     $   5,507     $   (5,363 )   $   25,232    
Adjusted EBITDA Margin %     13.5 %     15.5 %     8.3 %         10.3 %  
                       
Three months ended October 31, 2017                      
Net sales   $   131,380     $   41,830     $   61,110     $   (1,361 )   $   232,959    
Cost of sales       97,523         29,572         52,214         (984 )       178,325    
Selling, general and administrative       14,076         5,449         3,887         (270 )       23,142    
Restructuring charges       1,357         -          110         -          1,467    
Depreciation and amortization       7,932         2,080         3,650         132         13,794    
Operating income (loss)       10,492         4,729         1,249         (239 )       16,231    
Depreciation and amortization       7,932         2,080         3,650         132         13,794    
EBITDA       18,424         6,809         4,899         (107 )       30,025    
Transaction and advisory fees       -          -          -          169         169    
Loss on sale of plant       1,627         -          -          -          1,627    
Restructuring charges       1,357         -          110         -          1,467    
Adjusted EBITDA    $   21,408     $   6,809     $   5,009     $   62     $   33,288    
Adjusted EBITDA Margin %     16.3 %     16.3 %     8.2 %         14.3 %  
                       
Twelve months ended October 31, 2018                      
Net sales   $   485,366     $   159,973     $   249,813     $   (5,367 )   $   889,785    
Cost of sales       371,285         114,894         214,062         (3,674 )       696,567    
Selling, general and administrative       53,992         22,770         17,973         8,800         103,535    
Restructuring charges       1,357         -          129         -          1,486    
Depreciation and amortization       27,248         9,607         14,401         566         51,822    
Operating income (loss)       31,484         12,702         3,248         (11,059 )       36,375    
Depreciation and amortization       27,248         9,607         14,401         566         51,822    
EBITDA       58,732         22,309         17,649         (10,493 )       88,197    
LIFO inventory reserve adjustment       -          -          -          300         300    
Transaction and advisory fees       -          -          -          907         907    
Restructuring charges       1,357         -          129         -          1,486    
Adjusted EBITDA    $   60,089     $   22,309     $   17,778     $   (9,286 )   $   90,890    
Adjusted EBITDA Margin %     12.4 %     13.9 %     7.1 %         10.2 %  
                       
Twelve months ended October 31, 2017                      
Net sales   $   474,878     $   147,963     $   248,808     $   (5,094 )   $   866,555    
Cost of sales       357,806         104,876         213,257         (3,777 )       672,162    
Selling, general and administrative       52,889         20,581         16,626         7,885         97,981    
Restructuring charges       3,564         -          986         -          4,550    
Depreciation and amortization       34,308         8,833         13,811         543         57,495    
Operating income (loss)       26,311         13,673         4,128         (9,745 )       34,367    
Depreciation and amortization       34,308         8,833         13,811         543         57,495    
EBITDA       60,619         22,506         17,939         (9,202 )       91,862    
Transaction related costs       -          -          -          497         497    
Mexico restructuring, loss on disposal of fixed assets       -          -          190         -          190    
One-time employee benefit adjustment       -          -          188         -          188    
PPA-Inventory Step-up       -          104         -          -          104    
Loss on sale of plant       1,627         -          -          -          1,627    
Restructuring charges       3,564         -          986         -          4,550    
Adjusted EBITDA    $   65,810     $   22,610     $   19,303     $   (8,705 )   $   99,018    
Adjusted EBITDA Margin %     13.9 %     15.3 %     7.8 %         11.4 %  
                       

 

QUANEX BUILDING PRODUCTS CORPORATION   
SALES ANALYSIS   
(In thousands)   
(Unaudited)   
                   
     Three Months Ended    Twelve Months Ended  
    October 31, 2018   October 31, 2017   October 31, 2018   October 31, 2017  
                   
NA Engineered Components:                
  United States - fenestration (1) $   114,299     $   110,659     $   412,000     $   399,694    
  International - fenestration     11,552         9,334         39,309         34,279    
  United States - non-fenestration (2)     4,693         5,673         18,211         25,263    
  International - non-fenestration     4,542         5,714         15,846         15,642    
    $   135,086     $   131,380     $   485,366     $   474,878    
EU Engineered Components  (3):                
  United States - fenestration $   -     $   -     $   -     $   303    
  International - fenestration (4)     37,816         37,015         135,415         129,140    
  International - non-fenestration     6,675         4,815         24,558         18,520    
    $   44,491     $   41,830     $   159,973     $   147,963    
NA Cabinet Components:                
  United States - fenestration $   4,096     $   5,597     $   14,596     $   17,083    
  United States - non-fenestration (5)     61,442         54,977         232,990         229,550    
  International - non-fenestration     570         536         2,227         2,175    
    $   66,108     $   61,110     $   249,813     $   248,808    
Unallocated Corporate & Other:                
  Eliminations $   (1,599 )   $   (1,361 )   $   (5,367 )   $   (5,094 )  
    $   (1,599 )   $   (1,361 )   $   (5,367 )   $   (5,094 )  
                   
Net Sales $   244,086     $   232,959     $   889,785     $   866,555    
                   
(1) Reflects the loss of revenue associated with eliminated products of $1.0 million and $12.7 million for the three and twelve months ended October 31, 2018.  
(2) Reflects the loss of revenue associated with eliminated products of $1.9 million and $9.4 million for the three and twelve months ended October 31, 2018.  
(3) Reflects a loss of $0.6 million and gain of $8.7 million in revenue associated with foreign currency exchange rate impacts for the three and twelve months ended October 31, 2018.  
(4) Reflects loss of revenue associated with eliminated products of $0.4 million and $7.1 million for the three and twelve months ended October 31, 2018.  
(5) Reflects the loss of revenue associated with eliminated products of $3.9 million for the twelve months ended October 31, 2018.          
                   

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