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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