WINCHESTER, VA - American Woodmark Corporation (NASDAQ: AMWD) today announced results for its third fiscal quarter ended January 31, 2015.

Net sales for the third fiscal quarter increased 12% to $189.0 million compared with the same quarter of the prior fiscal year.  Net sales for the first nine months of the current fiscal year increased 15% to $618.6 million from the comparable period of the prior fiscal year.  The Company experienced growth in both the remodeling and new construction channels during the third quarter of fiscal year 2015, with new construction growth exceeding 15%.

Net income was $7.3 million ($0.45 per diluted share) for the third quarter of the current fiscal year compared with $2.9 million ($0.18 per diluted share) for the third quarter of the prior fiscal year.  Exclusive of one-time tax credits, the Company generated $7.1 million ($0.44 per diluted share) of net income for the third quarter of the current fiscal year compared with $2.9 million ($0.18 per diluted share) for the same period of the prior fiscal year.

Net income for the first nine months of fiscal year 2015 was $24.2 million ($1.52 per diluted share) compared with $14.8 million ($0.95 per diluted share) for the same period of the prior fiscal year.  Exclusive of one-time tax credits, the Company generated $23.0 million ($1.44 per diluted share) of net income for the first nine months of the current fiscal year compared with $14.8 million ($0.95 per diluted share) for the same period of the prior fiscal year.

Gross profit for the third quarter of the current fiscal year was 18.6% of net sales compared with 15.4% in the same quarter of the prior year.  Gross profit for the first nine months of the current fiscal year was 17.7% of net sales compared with 17.1% for the same period in the prior year.  Gross profit in the current quarter was favorably impacted by higher sales volume and improved operating efficiency.  Gross profit for the first nine months of the current fiscal year was favorably impacted by higher sales volume and improved operating efficiency that was partially offset by material inflation and costs associated with crewing and infrastructure to support higher levels of sales and installation activity.

Selling, general and administrative costs for the third quarter of fiscal year 2015 were 12.8% of net sales compared with 12.4% in the same quarter of the prior year.  Selling, general and administrative costs for the first nine months of the current fiscal year were 11.7% of net sales compared with 12.5% for the same period in the prior year.  The increase in the Company's operating expense ratio in the current quarter was driven by higher performance based compensation costs.  The improvement in the Company's operating expense ratio for the nine-month period was driven by favorable leverage from increased sales and on-going expense control.

The Company generated net cash from operating activities of $36.0 million during the first nine months of fiscal year 2015 compared with $23.5 million during the same period in the prior year.  The improvement in the Company's cash from operating activities was driven primarily by higher operating profitability and lower increases in customer receivables, which was partially offset by increases in inventory levels to support higher sales.  Net cash used by investing activities was $43.5 million during the first nine months of the current fiscal year compared with $8.3 million during the same period of the prior year due primarily to a $29.5 million investment in short-term certificates of deposit and increased investment in property, plant and equipment.  Net cash provided by financing activities decreased $9.5 million during the first nine months of the current fiscal year compared to the same period in the prior year, as the Company repurchased 163,326 shares of common stock at a cost of $5.1 million and proceeds from the exercise of stock options decreased $4.4 million.

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 seven service centers across the country.

AMERICAN WOODMARK CORPORATION

Unaudited Financial Highlights

(in thousands, except share data)

Operating Results

Three Months Ended

Nine Months Ended

January 31

January 31

2015

2014

2015

2014

Net Sales

$

188,963

$

169,033

$

618,573

$

537,660

Cost of Sales & Distribution

153,846

143,032

509,361

445,670

Gross Profit

35,117

26,001

109,212

91,990

Sales & Marketing Expense

16,010

14,287

47,821

44,638

G&A Expense

8,054

6,564

24,710

22,555

Restructuring Charges, net

3

48

6

161

Insurance Proceeds

(94)

Operating Income

11,050

5,102

36,675

24,730

Interest & Other (Income) Expense

74

149

323

464

Income Tax Expense

3,694

2,052

12,161

9,439

Net Income

$

7,282

$

2,901

$

24,191

$

14,827

Earnings Per Share:

Weighted Average Shares Outstanding - Diluted

16,131,140

15,827,666

15,953,420

15,595,342

Income Per Diluted Share

$

0.45

$

0.18

$

1.52

$

0.95

 Condensed Consolidated Balance Sheet

January 31

 April 30

2015

2014

Cash & Cash Equivalents

$

132,525

$

135,700

Investments - certificates of deposit

29,500

Customer Receivables

48,173

46,475

Inventories

34,871

31,523

Other Current Assets

12,573

11,718

Total Current Assets

257,642

225,416

Property, Plant & Equipment

79,774

74,049

Other Assets

25,931

30,599

Total Assets

$

363,347

$

330,064

Current Portion - Long-Term Debt

$

1,439

$

1,146

Accounts Payable & Accrued Expenses

76,857

75,273

Total Current Liabilities

78,296

76,419

Long-Term Debt

20,274

20,453

Other Liabilities

38,495

42,647

Total Liabilities

137,065

139,519

Stockholders' Equity

226,282

190,545

Total Liabilities & Stockholders' Equity

$

363,347

$

330,064

 Condensed Consolidated Statements of Cash Flows

Nine Months Ended

January 31

2015

2014

Net Cash Provided by Operating Activities

$

35,997

$

23,544

Net Cash Used by Investing Activities

(43,516)

(8,277)

Free Cash Flow

(7,519)

15,267

Net Cash Provided by Financing Activities

4,344

13,815

Net Increase (Decrease) in Cash and Cash Equivalents

(3,175)

29,082

Cash and Cash Equivalents, Beginning of Period

135,700

96,971

Cash and Cash Equivalents, End of Period

$

132,525

$

126,053

   SOURCE American Woodmark Corporation

Have something to say? Share your thoughts with us in the comments below.