Photo By American Woodmark
WINCHESTER, Va. — American Woodmark released very positive preliminary financial results for year-over-year quarterly and fiscal time frames on May 25, but it did so with a caveat.
American Woodmark's preliminary fiscal fourth quarter 2023 financial highlights included net sales that decreased 4.1% year-over-year to $481.1 million while net income increased 108% year-over-year to $30.1 million. Its net sales for the fiscal year ended April 30, 2023, increased 11.3% to $2,066.2 million from the prior fiscal year. Net income for the current fiscal year was $93.7 million ($5.62 per diluted share) compared with net loss of $29.7 million ($1.79 per diluted share) for the prior fiscal year. Net income for fiscal 2023 increased primarily due to an increase in net sales largely as a result of price increases and increased efficiencies, and the absence of onetime pension settlement charges of $68.5 million related to the termination of the Company's pension plan in the prior year.
“We delivered our anticipated strong financial performance in the fourth quarter of fiscal year 2023,” said Scott Culbreth, President and CEO. “Our free cash flow generation of $153.5 million in fiscal year 2023 is helping fund our internal investments for growth in fiscal year 2024. The strengthening in our operational performance throughout the year combined with the platform changes we began executing in fiscal year 2023, gives us the confidence that we can deliver strong margin performance in the dynamic market conditions.”
The caveat, however, is an issue that the company doesn't have direct control over. Culbreth said: One matter that could impact our financial results for the fourth quarter and fiscal year ending April 30, 2023 relates to a final determination around the treatment of antidumping and countervailing duties for imported Vietnamese plywood, which we have previously disclosed.
"If a final determination is made by the United States Department of Commerce to include two of the Company’s Vietnamese plywood vendors on the ineligible for certification list, it could impact our financial statements for the fiscal fourth quarter and full-year results.
"Net income (and the non-GAAP financial numbers derived from net income) could be impacted and therefore should be considered estimates, however net sales will not change. The company estimates the maximum potential impact on net income (and the non-GAAP financial numbers derived from net income) for prior purchases related to these duties to be an additional charge of approximately $4.0 million, net of tax. A final determination is currently scheduled to be made prior to the filing of the company's Form 10-K and if the Company's two Vietnamese plywood vendors are included, the company plans to vigorously appeal such determination."
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