American Woodmark Fourth Quarter Sales Up 26 percent

WINCHESTER, Va.  - American Woodmark Corporation (NASDAQ: AMWD) today announced results for its fourth quarter ended April 30, 2013.

Net sales rose by 26% compared with the fourth quarter of the prior fiscal year to $171.1 million. The Company experienced double digit sales gains in each of its sales channels during the fourth quarter of fiscal year 2013, led by new construction sales growth of more than 40%. Net sales rose by 22% to $630.4 million during the Company's entire fiscal year 2013.

The Company generated $5.1 million of net income, or 34 cents per diluted share, during the fourth quarter of its fiscal year 2013, exclusive of an insurance recovery and restructuring charges that combined to increase net income by less than $0.1 million and by less than one cent per diluted share. The Company's results were substantially more favorable than in the fourth quarter of its prior fiscal year, when the net loss was ($1.6 million) or ($0.11) per diluted share, exclusive of a $0.7 million after-tax write-down of slow-moving inventories and $3.6 million of after-tax restructuring charges. Including all of these items, net income reported in the fourth quarter of fiscal year 2013 was $5.2 million, or 34 cents per diluted share, compared with a net loss in the fourth quarter of fiscal year 2012 of ($6.0 million), or ($0.42) per diluted share.

The Company generated net income for the entire fiscal year 2013 of $10.0 million, or 68 cents per diluted share, exclusive of the insurance recovery and restructuring charges that combined to reduce net income by $0.3 million, or 2 cents per diluted share. The Company's results were substantially more favorable than the loss it experienced in fiscal year 2012 of ($10.8 million), or ($0.76) per share, exclusive of after-tax restructuring charges of $10.0 million. Inclusive of all of these items, net income reported for fiscal year 2013 was $9.8 million, or 66 cents per diluted share, compared with a net loss in fiscal year 2012 of ($20.8 million), or ($1.45) per diluted share.

Gross profit for the fourth quarter of fiscal year 2013 was 18.9% of net sales, compared with 12.7% in the prior year's fourth quarter. Gross profit for the entire fiscal year 2013 was 16.3% of net sales, compared with 12.9% in the prior fiscal year. Gross profit was favorably impacted by reductions in labor and overhead costs associated with the Company's previous restructuring actions, by the beneficial impact of higher sales volume and the absence of the prior year's inventory write-down. This favorability was partially offset by the impact of rising materials costs.  

Selling, general and administrative costs were 13.7% of net sales in the fourth quarter of fiscal year 2013, improved from 15.2% of net sales in the prior year's fourth quarter. Selling, general and administrative costs improved to 13.5% of net sales for the entire fiscal year 2013, down from 16.2% of net sales in the prior fiscal year. The improvement in the Company's operating expense ratio was driven by increased sales levels that enabled favorable leverage combined with cost savings from modifications to the Company's retirement programs, which more than offset increases in costs related to the increased sales levels and increased performance-based compensation.

The Company generated free cash flow (defined as cash provided by operating activities net of cash used for investing activities) of  $20.3 million during the fourth quarter of fiscal year 2013, compared with $0.3 million in the prior year's fourth quarter. The substantial improvement in the Company's free cash flow was driven by the improvement in the Company's operating profitability and favorability from the timing of the Company's collections from its customers and payments to its vendors, which offset unfavorability from this same factor earlier in the Company's fiscal year.

American Woodmark Corporation manufactures and distributes kitchen cabinets and vanities for the remodeling and new home construction markets.  Its products are sold on a national basis directly to home centers, major builders and through a network of independent distributors.  The Company presently operates nine manufacturing facilities and nine service centers across the country.


AMERICAN WOODMARK CORPORATION











Unaudited Financial Highlights











(in thousands, except share data)











Operating Results














Three Months Ended


Twelve Months Ended




April 30


April 30




2013


2012


2013


2012











Net Sales


$           171,079


$           136,221


$           630,437


$           515,814

Cost of Sales & Distribution


138,767


118,855


527,781


449,339


Gross Profit


32,312


17,366


102,656


66,475

Sales & Marketing Expense


14,826


14,116


57,402


58,271

G&A Expense


8,598


6,549


27,575


25,329

Restructuring Charges


454


5,959


1,433


16,321

Insurance Proceeds


(576)


-


(975)


-


Operating Income (Loss)


9,010


(9,258)


17,221


(33,446)

Interest & Other (Income) Expense


132


(54)


481


(158)

Income Tax Expense (Benefit)


3,688


(3,224)


6,982


(12,502)


Net Income (Loss)


$               5,190


$             (5,980)


$               9,758


$           (20,786)











Earnings Per Share:









Weighted Average Shares Outstanding - Diluted


15,178,970


14,382,784


14,832,688


14,343,630











Income (Loss) Per Diluted Share


$                 0.34


$               (0.42)


$                 0.66


$               (1.45)











Net income (loss), as reported


$               5,190


$             (5,980)


$               9,758


$           (20,786)

Restructuring Charges, net of tax


277


3,635


874


9,956

Insurance proceeds, net of tax


(351)


-


(595)


-

Net income (loss), excluding restructuring charges and insurance proceeds


$               5,116


$             (2,345)


$             10,037


$           (10,830)











Income (Loss) Per Diluted Share, excluding restructuring charges and insurance proceeds   


$                 0.34


$               (0.16)


$                 0.68


$               (0.76)











Condensed Consolidated Balance Sheet


















 April 30 


 April 30 








2013


2012











Cash & Cash Equivalents






$             96,971


$             66,620

Customer Receivables






39,044


32,533

Inventories






29,338


22,340

Other Current Assets






12,565


9,609


Total Current Assets






177,918


131,102

Property, Plant & Equipment






74,064


75,375

Restricted Cash






-


7,064

Other Assets






42,011


51,580


Total Assets






$           293,993


$           265,121











Current Portion - Long-Term Debt






$               1,155


$                  875

Accounts Payable & Accrued Expenses






67,953


58,346


Total Current Liabilities






69,108


59,221

Long-Term Debt






23,594


23,790

Other Liabilities






55,096


52,090


Total Liabilities






147,798


135,101

Stockholders' Equity






146,195


130,020


Total Liabilities & Stockholders' Equity






$           293,993


$           265,121











Condensed Consolidated Statements of Cash Flows


















Twelve Months Ended








April 30








2013


2012











Net Cash Provided by Operating Activities






$             24,527


$             16,053

Net Cash Used by Investing Activities






(6,117)


(9,918)

Free Cash Flow






18,410


6,135











Net Cash Provided by Financing Activities






11,941


5,065

Net Increase in Cash and Cash Equivalents






30,351


11,200

Cash and Cash Equivalents, Beginning of Period






66,620


55,420











Cash and Cash Equivalents, End of Period






$             96,971


$             66,620











 

SOURCE American Woodmark Corporation

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