EAGAN, Minn.-- Norcraft Companies, L.P. (Norcraft) today reports financial results for the first quarter ended March 31, 2012.
FINANCIAL RESULTS
First Quarter of Fiscal 2012 Compared with First Quarter of Fiscal 2011
Net sales increased $3.7 million, or 5.7%, from $64.2 million for the first quarter of 2011 to $67.9 million for the same quarter of 2012. Income from operations increased $0.5 million, or 11.7%, from $4.2 million for the first quarter of 2011 to $4.7 million for the same quarter of 2012. Net loss increased $1.3 million from $1.2 million for the first quarter of 2011 to $2.5 million for the same quarter of 2012.
Adjusted EBITDA (a non-GAAP measure and defined in the attached table) was $8.0 million for the first quarter of 2012 compared to $7.6 million for the same quarter of 2011.
"We are pleased with our results in the first quarter as we grew sales and profit more than expected. However, we anticipate the balance of 2012 will be very challenging in the highly competitive cabinet industry where consumers are continuing to be cautious about big- ticket purchases. As such, we will continue introducing new products and programs to compete in this difficult market," commented President and CEO, Mark Buller.
GENERAL
Norcraft Companies is a leader in manufacturing, assembling and finishing kitchen and bathroom cabinetry in the U.S. and parts of Canada. We provide our customers with a single source for a broad range of high-quality cabinetry, including stock, semi-custom and custom cabinets manufactured in both framed and frameless, or full access, construction. We market our products through six main brands: Mid Continent Cabinetry, Norcraft Cabinetry, UltraCraft, StarMark Cabinetry, Fieldstone Cabinetry and Brookwood.
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Norcraft Companies, L.P. |
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Consolidated Balance Sheet |
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(dollar amounts in thousands) |
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ASSETS |
March 31, 2012 (unaudited) |
December 31, 2011
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Current assets: |
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Cash and cash equivalents |
$ 28,730 |
$ 24,185 |
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Trade accounts receivable, net |
22,867 |
20,092 |
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Inventories |
19,096 |
17,503 |
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Prepaid and other current assets |
1,567 |
1,835 |
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Total current assets |
72,260 |
63,615 |
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Property, plant and equipment, net |
26,885 |
27,434 |
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Other assets: |
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Goodwill |
88,485 |
88,479 |
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Intangible assets, net |
75,835 |
77,732 |
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Display cabinets, net |
5,959 |
5,842 |
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Other |
490 |
568 |
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Total other assets |
170,769 |
172,621 |
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Total assets |
$ 269,914 |
$ 263,670 |
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LIABILITIES AND MEMBER'S EQUITY |
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Current liabilities: |
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Accounts payable |
$ 9,357 |
$ 6,566 |
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Accrued expenses |
19,495 |
13,775 |
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Total current liabilities |
28,852 |
20,341 |
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Long-term debt |
240,000 |
240,000 |
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Unamortized premium on bonds payable |
156 |
166 |
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Other liabilities |
108 |
108 |
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Total Liabilities |
269,116 |
260,615 |
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Commitments and contingencies |
- |
- |
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Member's equity (deficit) |
(834) |
1,646 |
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Accumulated other comprehensive income |
1,632 |
1,409 |
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Member's equity |
798 |
3,055 |
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Total liabilities and member's equity |
$ 269,914 |
$ 263,670 |
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Norcraft Companies, L.P. |
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Consolidated Statements of Operation |
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(dollar amounts in thousands) |
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(unaudited) |
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Three Months Ended March 31, |
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2012 |
2011 |
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Net sales |
$ 67,862 |
$ 64,188 |
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Cost of sales |
49,942 |
47,585 |
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Gross profit |
17,920 |
16,603 |
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Selling, general and administrative expenses |
13,179 |
12,360 |
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Income from operations |
4,741 |
4,243 |
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Other expense: |
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Interest expense, net |
6,450 |
5,027 |
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Amortization of deferred financing costs |
780 |
370 |
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Other, net |
27 |
24 |
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Total other expense |
7,257 |
5,421 |
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Net loss |
(2,516) |
(1,178) |
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Other comprehensive income: |
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Foreign currency translation adjustment |
223 |
262 |
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Total other comprehensive income |
223 |
262 |
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Comprehensive loss |
$ (2,293) |
$ (916) |
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Norcraft Companies, L.P. |
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Consolidated Statement of Cash Flows |
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(dollar amounts in thousands) |
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(unaudited) |
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Three Months Ended |
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March 31, |
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2012 |
2011 |
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Cash flows from operating activities: |
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Net loss |
$ (2,516) |
$ (1,178) |
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Adjustments to reconcile net loss to net cash provided by |
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operating activities: |
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Depreciation and amortization of property, plant and equipment |
1,157 |
1,286 |
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Amortization: |
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Customer relationships |
1,117 |
1,117 |
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Deferred financing costs |
780 |
370 |
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Display cabinets |
1,019 |
948 |
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Discount amortization/accreted interest |
(10) |
122 |
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Provision for uncollectible accounts receivable |
(14) |
11 |
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Provision for obsolete and excess inventories |
69 |
(96) |
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Provision for warranty claims |
757 |
666 |
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Stock compensation expense |
46 |
45 |
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Gain on disposal of assets |
(1) |
- |
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Change in operating assets and liabilities: |
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Trade accounts receivable |
(2,678) |
(3,980) |
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Inventories |
(1,625) |
(2,073) |
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Prepaid expenses |
269 |
57 |
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Other assets |
78 |
77 |
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Accounts payable and accrued expenses |
7,719 |
3,211 |
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Net cash provided by operating activities |
6,167 |
583 |
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Cash flows from investing activities: |
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Proceeds from sale of property and equipment |
2 |
4 |
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Purchase of property, plant and equipment |
(484) |
(755) |
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Additions to display cabinets |
(1,136) |
(1,289) |
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Net cash used in investing activities |
(1,618) |
(2,040) |
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Cash flows from financing activities: |
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Distributions to member |
(10) |
(2,618) |
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Net cash used in financing activities |
(10) |
(2,618) |
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Effect of exchange rates on cash and cash equivalents |
6 |
(38) |
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Net increase in cash and cash equivalents |
4,545 |
(4,113) |
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Cash and cash equivalents, beginning of the period |
24,185 |
28,657 |
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Cash and cash equivalents, end of period |
$ 28,730 |
$ 24,544 |
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