American Woodmark Cabinetry Sales Rose 12 Percent 3rd Quarter

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

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