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.

Norcraft Companies, L.P.

Consolidated Balance Sheet

(dollar amounts in thousands)

 ASSETS

March 31,

 2012

(unaudited)

December 31,

2011

 

Current assets:

Cash and cash equivalents

$     28,730

$        24,185

Trade accounts receivable, net

22,867

20,092

Inventories

19,096

17,503

Prepaid and other current assets

1,567

1,835

Total current assets

72,260

63,615

Property, plant and equipment, net

26,885

27,434

Other assets:

Goodwill

88,485

88,479

Intangible assets, net

75,835

77,732

Display cabinets, net

5,959

5,842

Other

490

568

Total other assets

170,769

172,621

Total assets

$    269,914

$     263,670

LIABILITIES AND MEMBER'S EQUITY

Current liabilities:

Accounts payable

$        9,357

$          6,566

Accrued expenses

19,495

13,775

Total current liabilities

28,852

20,341

Long-term debt

240,000

240,000

Unamortized premium on bonds payable

156

166

Other liabilities

108

108

Total Liabilities

269,116

260,615

Commitments and contingencies

-

-

Member's equity (deficit)

(834)

1,646

Accumulated other comprehensive income

1,632

1,409

Member's equity

798

3,055

Total liabilities and member's equity

$     269,914

$      263,670

 

Norcraft Companies, L.P.

Consolidated Statements of Operation

(dollar amounts in thousands)

(unaudited)

Three Months Ended

March 31,

2012

2011

Net sales

$       67,862

$     64,188

Cost of sales

49,942

47,585

Gross profit

17,920

16,603

Selling, general and administrative expenses

13,179

12,360

Income from operations

4,741

4,243

Other expense:

Interest expense, net

6,450

5,027

Amortization of deferred financing costs

780

370

Other, net

27

24

Total other expense

7,257

5,421

Net loss

(2,516)

(1,178)

Other comprehensive income:

Foreign currency translation adjustment

223

262

Total other comprehensive income

223

262

Comprehensive loss

$       (2,293)

$       (916)

 

 

 

Norcraft Companies, L.P.

Consolidated Statement of Cash Flows

(dollar amounts in thousands)

(unaudited)

Three Months Ended

March 31,

2012

2011

Cash flows from operating activities:

Net loss

$          (2,516)

$       (1,178)

Adjustments to reconcile net loss to net cash provided by

operating activities:

Depreciation and amortization of property, plant and equipment

1,157

1,286

Amortization:

Customer relationships

1,117

1,117

Deferred financing costs

780

370

Display cabinets

1,019

948

Discount amortization/accreted interest

(10)

122

Provision for uncollectible accounts receivable

(14)

11

Provision for obsolete and excess inventories

69

(96)

Provision for warranty claims

757

666

Stock compensation expense

46

45

Gain on disposal of assets

(1)

-

Change in operating assets and liabilities:

Trade accounts receivable

(2,678)

(3,980)

Inventories

(1,625)

(2,073)

Prepaid expenses

269

57

Other assets

78

77

Accounts payable and accrued expenses

7,719

3,211

Net cash provided by operating activities

6,167

583

Cash flows from investing activities:

Proceeds from sale of property and equipment

2

4

Purchase of property, plant and equipment

(484)

(755)

Additions to display cabinets

(1,136)

(1,289)

Net cash used in investing activities

(1,618)

(2,040)

Cash flows from financing activities:

Distributions to member

(10)

(2,618)

Net cash used in financing activities

(10)

(2,618)

Effect of exchange rates on cash and cash equivalents

6

(38)

Net increase in cash and cash equivalents

4,545

(4,113)

Cash and cash equivalents, beginning of the period

24,185

28,657

Cash and cash equivalents, end of period

$         28,730

$       24,544

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