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Quanex Building Products Announces Second Quarter 2019 Results

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Margin Expansion in All Operating Segments
Strong Growth Continues in EU Fenestration Segment
Solid Free Cash Flow Generation
Continue to Target Fiscal Year-End 2019 Leverage Ratio of 1.5x - 2.0x

HOUSTON, June 04, 2019 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation (NYSE:NX) ("Quanex" or the "Company") today announced its results for the three months ended April 30, 2019.

Bill Griffiths, Chairman, President and Chief Executive Officer, stated, "We performed well during the second quarter from an operational standpoint and realized margin expansion in all segments, including an almost 400 basis point increase in our European Fenestration segment.  On a consolidated basis, we realized margin expansion of approximately 70 basis points.  On the revenue side, solid growth of more than 15%, excluding foreign exchange impact, in our European Fenestration segment was somewhat offset by softer sales in the U.S., mainly due to inclement weather and customer inventory destocking.  Despite this softness in the U.S., sales in our North American Fenestration segment grew at 1.0% during the quarter, which compares favorably to Ducker's latest window shipment estimate of negative 4.0% growth for the three months ended March 31, 2019.  We also more than doubled the amount of free cash flow generated during the quarter, which allowed us to pay down $5 million in bank debt and buyback approximately $2.7 million in stock.  

"We continue to expect margin expansion on a consolidated basis for the full year as operational efficiency gains continue, volume ramps into the selling season and we benefit from pricing actions that were implemented early this year.  Going forward, our intention is to continue deleveraging the balance sheet while opportunistically repurchasing stock.  Our growth expectations for the full year haven't materially changed with respect to our North American and European Fenestration segments; however, top line results in our North American Cabinet Components segment have been weaker than expected, but consistent with the latest industry data.  As such, we now expect full year 2019 consolidated revenue growth of 2% to 3%, but we are converting well and are maintaining our Adjusted EBITDA guidance of $97 million to $107 million."  (See Forward Looking Statements and Non-GAAP Terminology Definitions and Disclaimers sections for additional information)             

Second Quarter 2019 Results Summary  

The Company reported the following selected financial results:

    Three Months Ended April 30,
    2019   2018
Net Sales   $218.2   $214.2
Net (Loss) Income   ($24.0)   $4.1
Diluted EPS   ($0.73)   $0.12
         
Adjusted Net Income   $6.3   $4.8
Adjusted Diluted EPS   $0.19   $0.14
Adjusted EBITDA   $23.4   $21.3
         
Cash provided by operating activities   $20.4   $13.4
Free Cash Flow   $13.6   $6.0
(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 increase in net sales during the second quarter of 2019 was largely due to above market growth in the European Fenestration segment coupled with price increases related to raw material inflation recovery. (See Sales Analysis table for additional information)

The decrease in reported earnings was primarily the result of a $30.0 million, or $0.91 per diluted share, non-cash goodwill impairment in the North American Cabinet Components segment, mostly due to softer than expected sales.  The increase in adjusted earnings was mainly attributable to operational efficiency gains and the successful implementation of pricing initiatives. 

As of April 30, 2019, Quanex's leverage ratio of Net Debt to LTM Adjusted EBITDA decreased to 2.3x.  Quanex continues to expect to end fiscal 2019 with a leverage ratio between 1.5x and 2.0x.  (See Non-GAAP Terminology Definitions and Disclaimers section for additional information)

Share Repurchases

The Company's Board of Directors authorized a $60 million share repurchase program in September of 2018.  Repurchases under this program will be made in open market transactions or privately negotiated transactions, subject to market conditions, applicable legal requirements and other relevant factors.  The program does not have an expiration date or a limit on the number of shares that may be repurchased.  During the three months ended April 30, 2019, Quanex repurchased 171,016 shares of common stock for approximately $2.7 million at an average price of $15.71 per share.  As of April 30, 2019, approximately $23.3 million remained under the existing share repurchase authorization.  

Recent Events

The Company's Board of Directors declared a quarterly cash dividend of $0.08 per share on Quanex's common stock, payable June 28, 2019, to shareholders of record on June 14, 2019.

Conference Call and Webcast Information

The Company has scheduled a conference call for Wednesday, June 5, 2019, 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 4390268, 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 June 12, 2019.  To access the replay dial (855) 859-2056 for domestic callers and (404) 537-3406 for international callers, in both cases referencing conference passcode 4390268. 

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.  The Company is not able to provide reconciliations of Adjusted EBITDA to GAAP financial measures because certain items required for such reconciliations are outside of Quanex's control and/or cannot be reasonably predicted, such as the provision for income taxes.  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, 2018, 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.

 
 
QUANEX BUILDING PRODUCTS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF NET (LOSS) INCOME
(In thousands, except per share data)
(Unaudited)
                                 
    Three Months Ended April 30,   Six Months Ended April 30,
      2019     2018 (1)     2019     2018 (1)
                                 
Net sales   $ 218,203     $ 214,212     $ 415,011     $ 405,878  
Cost of sales     171,378       169,030       329,935       323,546  
Selling, general and administrative     23,722       23,863       51,748       47,971  
Restructuring charges     84       242       187       608  
Depreciation and amortization     12,404       13,310       24,976       26,583  
Asset impairment charges     29,978       -       29,978       -  
Operating (loss) income     (19,363 )     7,767       (21,813 )     7,170  
Interest expense     (2,602 )     (2,502 )     (5,044 )     (4,943 )
Other, net     (54 )     264       202       689  
(Loss) income before income taxes     (22,019 )     5,529       (26,655 )     2,916  
Income tax (expense) benefit     (1,955 )     (1,393 )     (968 )     6,167  
Net (loss) income   $ (23,974 )   $ 4,136     $ (27,623 )   $ 9,083  
                                 
(Loss) income per common share, basic   $ (0.73 )   $ 0.12     $ (0.84 )   $ 0.26  
(Loss) income per common share, diluted   $ (0.73 )   $ 0.12     $ (0.84 )   $ 0.26  
                                 
Weighted average common shares outstanding:                                
Basic     32,951       34,796       33,026       34,731  
Diluted     32,951       35,115       33,026       35,166  
                                 
Cash dividends per share   $ 0.08     $ 0.04     $ 0.16     $ 0.08  
                                 
(1) Updated to reflect adoption of ASU 2017-07.                                
                                 

 

QUANEX BUILDING PRODUCTS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
                 
    April 30, 2019
    October 31, 2018 (1)
ASSETS                
Current assets:                
Cash and cash equivalents   $ 20,262     $ 29,003  
Accounts receivable, net     80,646       84,014  
Inventories, net     86,581       70,730  
Prepaid and other current assets     8,458       7,296  
Total current assets     195,947       191,043  
Property, plant and equipment, net     197,182       201,370  
Goodwill     190,638       219,627  
Intangible assets, net     114,921       121,919  
Other assets     8,354       9,255  
Total assets   $ 707,042     $ 743,214  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
Current liabilities:                
Accounts payable   $ 48,743     $ 52,389  
Accrued liabilities     31,554       45,968  
Income taxes payable     2,971       2,780  
Current maturities of long-term debt     1,082       1,224  
Total current liabilities     84,350       102,361  
Long-term debt     224,743       209,332  
Deferred pension and postretirement benefits     5,797       4,218  
Deferred income taxes     16,417       17,510  
Other liabilities     14,847       14,571  
Total liabilities     346,154       347,992  
Stockholders' equity:                
Common stock     374       374  
Additional paid-in-capital     253,679       254,678  
Retained earnings     210,406       243,904  
Accumulated other comprehensive loss     (28,127 )     (30,705 )
Treasury stock at cost     (75,444 )     (73,029 )
Total stockholders' equity     360,888       395,222  
Total liabilities and stockholders' equity   $ 707,042     $ 743,214  
                 
(1) Updated to reflect accounting change to FIFO cost method.    
     
     

 

QUANEX BUILDING PRODUCTS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(In thousands)
(Unaudited)
                 
    Six Months Ended April 30,
      2019       2018  
Operating activities:                
Net (loss) income   $ (27,623 )   $ 9,083  
Adjustments to reconcile net (loss) income to cash provided by operating activities:                
Depreciation and amortization     24,976       26,583  
Stock-based compensation     1,043       211  
Deferred income tax     (1,256 )     (8,087 )
Asset impairment charges     29,978       -  
Other, net     1,078       (321 )
Changes in assets and liabilities:                
Decrease in accounts receivable     3,479       3,357  
Increase in inventory     (15,522 )     (4,623 )
Decrease in other current assets     (681 )     (1,047 )
(Decrease) increase in accounts payable     (2,617 )     378  
Decrease in accrued liabilities     (14,716 )     (5,220 )
Increase in income taxes payable     183       25  
Increase in deferred pension and postretirement benefits     1,567       1,457  
Decrease in other long-term liabilities     (131 )     (38 )
Other, net     385       (143 )
Cash provided by operating activities     143       21,615  
Investing activities:                
Capital expenditures     (13,022 )     (15,213 )
Proceeds from disposition of capital assets       298         180  
Cash used for investing activities       (12,724 )       (15,033 )
Financing activities:                
Borrowings under credit facilities       57,500         21,500  
Repayments of credit facility borrowings       (42,500 )       (34,000 )
Repayments of other long-term debt       (784 )       (442 )
Common stock dividends paid       (5,335 )       (2,800 )
Issuance of common stock       27         2,564  
Payroll tax paid to settle shares forfeited upon vesting of stock       (322 )       (706 )
Purchase of treasury stock       (4,702 )       -  
Cash provided by (used for) financing activities       3,884         (13,884 )
Effect of exchange rate changes on cash and cash equivalents       (44 )       (55 )
Decrease in cash and cash equivalents       (8,741 )       (7,357 )
Cash and cash equivalents at beginning of period       29,003         17,455  
Cash and cash equivalents at end of period   $   20,262     $   10,098  
                 
                 

 

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 April 30,   Six Months Ended April 30,
      2019       2018       2019       2018  
Cash provided by operating activities   $ 20,386     $ 13,423     $ 143     $ 21,615  
Capital expenditures     (6,751 )     (7,402 )     (13,022 )     (15,213 )
Free Cash Flow   $ 13,635     $ 6,021     $ (12,879 )   $ 6,402  
                                 
                                 

 

QUANEX BUILDING PRODUCTS CORPORATION
NON-GAAP FINANCIAL MEASURE DISCLOSURE
(In thousands, except per share data)
(Unaudited)
                                         
                                         
    Three Months Ended     Three Months Ended     Six Months Ended     Six Months Ended  
Reconciliation of Adjusted Net Income and Adjusted EPS   April 30, 2019     April 30, 2018     April 30, 2019     April 30, 2018  
    Net
Income
  Diluted
EPS
    Net
Income
  Diluted
EPS
    Net
Income
  Diluted
EPS
    Net
Income
  Diluted
EPS
 
Net (loss) income as reported   $ (23,974 )   $ (0.73 )     $ 4,136     $ 0.12       $ (27,623 )   $ (0.84 )     $ 9,083     $ 0.26    
Reconciling items from below     30,250       0.92         665       0.02         31,584       0.96         (5,555 )     (0.16 )  
Adjusted net income and adjusted EPS   $ 6,276     $ 0.19       $ 4,801     $ 0.14       $ 3,961     $ 0.12       $ 3,528     $ 0.10    
                                         
Reconciliation of Adjusted EBITDA   Three Months Ended
April 30, 2019
    Three Months Ended
April 30, 2018
    Six Months Ended
April 30, 2019
    Six Months Ended
April 30, 2018
 
    Reconciliation         Reconciliation         Reconciliation         Reconciliation      
Net (loss) income as reported   $ (23,974 )         $ 4,136           $ (27,623 )         $ 9,083        
Income tax expense (benefit)     1,955             1,393             968             (6,167 )      
Other, net     54             (264 )           (202 )           (689 )      
Interest expense     2,602             2,502             5,044             4,943        
Depreciation and amortization     12,404             13,310             24,976             26,583        
EBITDA     (6,959 )           21,077             3,163             33,753        
Reconciling items from below     30,311             244             32,282             622        
Adjusted EBITDA   $ 23,352           $ 21,321           $ 35,445           $ 34,375        
                                         
Reconciling Items   Three Months Ended
April 30, 2019
    Three Months Ended
April 30, 2018
    Six Months Ended
April 30, 2019
    Six Months Ended
April 30, 2018
 
    Income
Statement
  Reconciling
Items
    Income
Statement
  Reconciling
Items
    Income
Statement
  Reconciling
Items
    Income
Statement
  Reconciling
Items
 
Net sales   $ 218,203     $ -       $ 214,212     $ -       $ 415,011     $ -       $ 405,878     $ -    
Cost of sales     171,378       -         169,030       -         329,935       -         323,546       -    
Selling, general and administrative     23,722       (249 )  (1)      23,863       (2 )  (1)     51,748       (2,117 )  (1)     47,971       (14 )  (1)
Restructuring charges     84       (84 )  (2)      242       (242 )  (2)     187       (187 )  (2)     608       (608 )  (2)
Asset impairment charges     29,978       (29,978 )  (3)      -       -         29,978       (29,978 )  (3)     -       -    
EBITDA     (6,959 )     30,311         21,077       244         3,163       32,282         33,753       622    
Depreciation and amortization     12,404       -         13,310       (504 )  (4)     24,976       -         26,583       (852 )  (4)
Operating loss     (19,363 )     30,311         7,767       748         (21,813 )     32,282         7,170       1,474    
Interest expense     (2,602 )     -         (2,502 )     -         (5,044 )     -         (4,943 )     -    
Other, net     (54 )     24    (5)      264       132    (5)     202       45    (5)     689       (167 )  (5) 
(Loss) income before income taxes     (22,019 )     30,335         5,529       880         (26,655 )     32,327         2,916       1,307    
Income tax (expense) benefit     (1,955 )     (85 ) (6)     (1,393 )     (215 )  (6)     (968 )     (743 )  (6)     6,167       (6,862 )  (6)
Net (loss) income   $ (23,974 )   $ 30,250       $ 4,136     $ 665       $ (27,623 )   $ 31,584       $ 9,083     $ (5,555 )  
                                         
Diluted (loss) earnings per share   $ (0.73 )         $ 0.12           $ (0.84 )         $ 0.26        
                                         
(1) Transaction and advisory fees, and in the six months ended April 30,2019, $1.2 million of severance related to a reorganization.
(2) Restructuring charges relate to the closure of several manufacturing plant facilities.
(3) Asset impairment charges relate to a goodwill impairment in the North American Cabinet Components segment.
(4) Accelerated depreciation for plant re-layout in the North American Cabinet Components segment.
(5) Foreign currency transaction losses (gains).
(6) Impact on a with and without basis.  Six months ended April 30, 2019 and 2018 include $0.2 million and $6.5 million, respectively, adjustment related to the Tax Cuts and Jobs Act. 
 
 


QUANEX BUILDING PRODUCTS CORPORATION 
SELECTED SEGMENT DATA 
(In thousands) 
(Unaudited) 
                     
This table provides operating (loss) income, EBITDA, and Adjusted EBITDA by reportable segment.  Non-operating expense and income tax expense are not allocated to the reportable segments. 
                                         
    NA Fenestration (1)   EU Fenestration (1)   NA Cabinet
Components
  Unallocated
Corp & Other
  Total
Three months ended April 30, 2019                                        
Net sales   $   115,346     $   41,623     $   62,836     $   (1,602 )   $   218,203  
Cost of sales       90,031         28,906         53,699         (1,258 )       171,378  
Selling, general and administrative       12,213         5,696         4,505         1,308         23,722  
Restructuring charges       84         -          -          -          84  
Depreciation and amortization       6,758         2,219         3,305         122         12,404  
Asset impairment charges       -          -          29,978         -          29,978  
Operating income (loss)       6,260         4,802         (28,651 )       (1,774 )       (19,363 )
Depreciation and amortization       6,758         2,219         3,305         122         12,404  
EBITDA       13,018         7,021         (25,346 )       (1,652 )       (6,959 )
Asset impairment charges       -          -          29,978         -          29,978  
Transaction and advisory fees       -          -          -          249         249  
Restructuring charges       84         -          -          -          84  
Adjusted EBITDA    $   13,102     $   7,021     $   4,632     $   (1,403 )   $   23,352  
Adjusted EBITDA Margin %     11.4 %     16.9 %     7.4 %             10.7 %
                                         
Three months ended April 30, 2018 (2)                                        
Net sales   $   114,157     $   38,824     $   62,668     $   (1,437 )   $   214,212  
Cost of sales       88,385         27,589         54,135         (1,079 )       169,030  
Selling, general and administrative (3)       13,343         6,178         4,454         (112 )       23,863  
Restructuring charges       238         -          4         -          242  
Depreciation and amortization       6,808         2,527         3,839         136         13,310  
Operating income (loss)       5,383         2,530         236         (382 )       7,767  
Depreciation and amortization       6,808         2,527         3,839         136         13,310  
EBITDA       12,191         5,057         4,075         (246 )       21,077  
Transaction and advisory fees       -          -          -          2         2  
Restructuring charges       238         -          4         -          242  
Adjusted EBITDA    $   12,429     $   5,057     $   4,079     $   (244 )   $   21,321  
Adjusted EBITDA Margin %     10.9 %     13.0 %     6.5 %             10.0 %
                                         
Six months ended April 30, 2019                                        
Net sales   $   224,395     $   76,877     $   116,688     $   (2,949 )   $   415,011  
Cost of sales       177,184         53,431         101,555         (2,235 )       329,935  
Selling, general and administrative       25,290         11,406         9,430         5,622         51,748  
Restructuring charges       187         -          -          -          187  
Depreciation and amortization       13,630         4,456         6,644         246         24,976  
Asset impairment charges       -          -          29,978         -          29,978  
Operating income (loss)       8,104         7,584         (30,919 )       (6,582 )       (21,813 )
Depreciation and amortization       13,630         4,456         6,644         246         24,976  
EBITDA       21,734         12,040         (24,275 )       (6,336 )       3,163  
Asset impairment charges       -          -          29,978         -          29,978  
Transaction and advisory fees       -          -          -          2,117         2,117  
Restructuring charges       187         -          -          -          187  
Adjusted EBITDA    $   21,921     $   12,040     $   5,703     $   (4,219 )   $   35,445  
Adjusted EBITDA Margin %     9.8 %     15.7 %     4.9 %             8.5 %
                                         
Six months ended April 30, 2018 (2)                                        
Net sales   $   216,883     $   72,820     $   118,590     $   (2,415 )   $   405,878  
Cost of sales       168,482         52,421         104,351         (1,708 )       323,546  
Selling, general and administrative (3)       26,845         11,506         9,088         532         47,971  
Restructuring charges       489         -          119         -          608  
Depreciation and amortization       13,819         4,976         7,525         263         26,583  
Operating income (loss)       7,248         3,917         (2,493 )       (1,502 )       7,170  
Depreciation and amortization       13,819         4,976         7,525         263         26,583  
EBITDA       21,067         8,893         5,032         (1,239 )       33,753  
Transaction related costs       -          -          -          14         14  
Restructuring charges       489         -          119         -          608  
Adjusted EBITDA    $   21,556     $   8,893     $   5,151     $   (1,225 )   $   34,375  
Adjusted EBITDA Margin %     9.9 %     12.2 %     4.3 %             8.5 %
                     
(1) NA Fenestration and EU Fenestration were previously named "NA Engineered Components" and "EU Engineered Components," respectively.        
(2) Updated to reflect the adoption of ASU 2017-07.                    
(3) Updated to reflect a reduction in corporate allocations of $0.3 and $0.9 million during the three and six months ended April 30, 2018 due to a change in allocation methodology during the fourth quarter of 2018. 
 
 

 

QUANEX BUILDING PRODUCTS CORPORATION
SALES ANALYSIS
(In thousands)
(Unaudited)
                 
     Three Months Ended    Six Months Ended
    April 30, 2019   April 30, 2018   April 30, 2019   April 30, 2018
                 
NA Fenestration:              
  United States - fenestration $   99,144     $   97,005     $   193,029     $   184,787  
  International - fenestration     8,096         8,897         16,302         15,906  
  United States - non-fenestration     4,803         4,697         8,308         8,843  
  International - non-fenestration     3,303         3,558         6,756         7,347  
    $   115,346     $   114,157     $   224,395     $   216,883  
EU Fenestration (1):              
  International - fenestration $   34,973     $   32,847     $   65,696     $   62,716  
  International - non-fenestration     6,650         5,977         11,181         10,104  
    $   41,623     $   38,824     $   76,877     $   72,820  
NA Cabinet Components:              
  United States - fenestration $   2,997     $   3,403     $   6,349     $   6,850  
  United States - non-fenestration     59,220         58,698         109,181         110,703  
  International - non-fenestration     619         567         1,158         1,037  
    $   62,836     $   62,668     $   116,688     $   118,590  
Unallocated Corporate & Other:              
  Eliminations $   (1,602 )   $   (1,437 )   $   (2,949 )   $   (2,415 )
    $   (1,602 )   $   (1,437 )   $   (2,949 )   $   (2,415 )
                 
Net Sales $   218,203     $   214,212     $   415,011     $   405,878  
                 
(1) Reflects reductions of $2.8 million and $4.4 million in revenue associated with foreign currency exchange rate impacts for the three and six months ended April 30, 2019.
                 

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