WINCHESTER, Va. - American Woodmark Corporation (NASDAQ: AMWD) today announced results for its first fiscal quarter ended July 31, 2013.

Net sales rose by 20% compared with the first quarter of the prior fiscal year to $178.1 million. The Company experienced growth in both the remodel and new construction sales channels during the first quarter of fiscal year 2014, led by new construction growth of more than 40%.

Exclusive of after-tax restructuring charges, the Company generated $6.7 million ($0.43 per diluted share) of net income during the first quarter of fiscal year 2014 versus $1.0 million ($0.07 per diluted share) of net income in the prior year. Inclusive of after-tax restructuring charges, the Company generated $6.7 million ($0.43 per diluted share) of net income during the first quarter of fiscal 2014 versus $0.6 million ($0.04 per diluted share) of net income during the same quarter in the prior year.

Gross profit for the first quarter of fiscal year 2014 was 18.9% of net sales, compared with 14.9% in the first quarter of the prior year. Gross profit was favorably impacted by higher sales volume and improved operating efficiencies. This favorability was partially offset by the impact of rising material costs and expenses under the Company's pay-for-performance plans.

Selling, general and administrative costs were 12.8% of net sales in the first quarter of fiscal year 2014, an improvement from 13.6% of net sales in the prior year's first quarter. The improvement in the Company's operating expense ratio was driven by a combination of favorable leverage from increased sales levels and cost savings from modifications to the Company's retirement programs, which were only partially offset by increases in both costs related to higher sales activity and increased performance-based compensation.

The Company generated free cash flow (defined as cash provided/(used) by operating activities net of cash used for investing activities) of $(0.7) million during the first quarter of fiscal year 2014, compared with $(5.6) million during the same period in the prior year. The improvement in the Company's free cash flow was driven primarily by higher operating profitability and timing associated with tax payments. These improvements were partially offset by the lack of proceeds from asset sales in the prior year and by increased accounts receivable due to both higher sales activity and timing associated with payments from customers.

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

July 31

2013

2012

Net Sales

$

178,095

$

148,252

Cost of Sales & Distribution

144,380

126,209

Gross Profit

33,715

22,043

Sales & Marketing Expense

14,484

14,520

G&A Expense

8,401

5,639

Restructuring Charges

82

777

Insurance Proceeds

(94)

0

Operating Income

10,842

1,107

Interest & Other (Income) Expense

160

92

Income Tax Expense

4,027

454

Net Income

$

6,655

$

561

Earnings Per Share:

Weighted Average Shares Outstanding - Diluted

15,373,260

14,576,158

Income Per Diluted Share

$

0.43

$

0.04

Condensed Consolidated Balance Sheet

July 31

April 30

2013

2013

Cash & Cash Equivalents

$

100,440

$

96,971

Customer Receivables

45,276

39,044

Inventories

30,767

29,338

Other Current Assets

11,629

12,565

Total Current Assets

188,112

177,918

Property, Plant & Equipment

73,884

74,064

Other Assets

41,836

42,011

Total Assets

$

303,832

$

293,993

Current Portion - Long-Term Debt

$

1,231

$

1,155

Accounts Payable & Accrued Expenses

66,176

67,953

Total Current Liabilities

67,407

69,108

Long-Term Debt

23,618

23,594

Other Liabilities

54,431

55,096

Total Liabilities

145,456

147,798

Stockholders' Equity

158,376

146,195

Total Liabilities & Stockholders' Equity

$

303,832

$

293,993

Condensed Consolidated Statements of Cash Flows

Three Months Ended

July 31,

2013

2012

Net Cash Provided (Used) by Operating Activities

$

2,260

$

(3,772)

Net Cash Used by Investing Activities

(2,950)

(1,863)

Free Cash Flow

(690)

(5,635)

Net Cash Provided (Used) by Financing Activities

4,159

(185)

Net Increase (Decrease) in Cash and Cash Equivalents

3,469

(5,820)

Cash and Cash Equivalents, Beginning of Period

96,971

66,620

Cash and Cash Equivalents, End of Period

$

100,440

$

60,800

 

Source: American Woodmark Corporation

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