EAGAN, Minn. - Norcraft Companies, L.P. (Norcraft) today reported financial results for the fourth quarter and fiscal year ended December 31, 2011.
FINANCIAL RESULTS
Fourth Quarter of Fiscal 2011 Compared with Fourth Quarter of Fiscal 2010
Net sales increased $1.7 million, or 2.8%, from $60.7 million for the fourth quarter of 2010 compared to $62.4 million for the same quarter of 2011. Income from operations was flat at $3.8 million for the fourth quarter of 2010 and 2011. Net loss increased $1.9 million, or 121.1%, from $1.5 million for the fourth quarter of 2010 to $3.4 million in the same quarter of 2011.
Adjusted EBITDA (as defined in the attached table) was $7.1 million for the fourth quarter of 2010 compared to $7.2 million for the same quarter of 2011.
Fiscal 2011 Compared with Fiscal 2010
Net sales increased $6.7 million, or 2.6%, from $262.6 million for fiscal 2010 compared to $269.3 million for fiscal 2011. Income from operations decreased by $2.4 million, or 9.4%, from $24.7 million for fiscal 2010 compared to $22.3 million for fiscal 2011. Net income (loss) decreased $6.9 million, or 216.9%, from net income $3.2 million for fiscal 2010 to a net loss of $3.7 million in fiscal 2011.
Adjusted EBITDA (as defined in the attached table) was $38.0 million for fiscal 2010 compared to $35.8 million for fiscal 2011.
"The soft industry demand caused by difficult economic conditions persisted through 2011, and we anticipate 2012 will also be very challenging. While we are optimistic about the longer-term recovery and growth in the new home construction and home improvement markets, the timing and strength of such recovery remain extremely difficult to predict with certainty. As a result, we plan to continue introducing new products and programs to compete in this difficult market," commented President and CEO, Mark Buller.
CONFERENCE CALL
Norcraft has scheduled a conference call on Wednesday, March 28, 2012 at 10:00 a.m. Eastern Time. To participate, dial 888-339-2688 and use the pass code 54284143. A telephonic replay will be available by calling 888-286-8010 and using pass code 69769532.
GENERAL
Norcraft Companies is a leader in manufacturing, assembling and finishing kitchen and bathroom cabinetry in the U.S. 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.
-Selected Financial Data Tables Follow-
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Norcraft Companies, L.P. Consolidated Balance Sheet (dollar amounts in thousands) (unaudited) |
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ASSETS |
December 31, |
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2011 |
2010 |
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Current assets: |
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Cash and cash equivalents |
$ 24,185 |
$ 28,657 |
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|
Trade accounts receivable, net |
20,092 |
17,982 |
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Inventories |
17,503 |
17,363 |
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Prepaid and other current assets |
1,835 |
1,558 |
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Total current assets |
63,615 |
65,560 |
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Property, plant and equipment, net |
27,434 |
30,199 |
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Other assets: |
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Goodwill |
88,479 |
88,483 |
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Intangible assets, net |
77,732 |
76,379 |
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Display cabinets, net |
5,842 |
5,016 |
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Other |
568 |
754 |
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Total other assets |
172,621 |
170,632 |
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Total assets |
$ 263,670 |
$ 266,391 |
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LIABILITIES AND MEMBER'S EQUITY |
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Current liabilities: |
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Accounts payable |
$ 6,566 |
$ 7,678 |
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Accrued expenses |
13,775 |
16,200 |
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Total current liabilities |
20,341 |
23,878 |
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Long-term debt |
240,000 |
180,000 |
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Unamortized premium (discount) on bonds payable |
166 |
(2,414) |
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Other liabilities |
108 |
153 |
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Commitments and contingencies |
- |
- |
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Member's equity |
3,055 |
64,774 |
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Total liabilities and member's equity |
$ 263,670 |
$ 266,391 |
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Norcraft Companies, L.P. Consolidated Statement of Operations (dollar amounts in thousands) (unaudited) |
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Three Months Ended December 31, |
Year Ended December 31, |
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2011 |
2010 |
2011 |
2010 |
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Net sales |
$ 62,362 |
$ 60,691 |
$ 269,305 |
$ 262,568 |
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Cost of sales |
45,630 |
45,013 |
195,853 |
187,482 |
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Gross profit |
16,732 |
15,678 |
73,452 |
75,086 |
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Selling, general and |
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administrative expenses |
12,956 |
11,934 |
51,099 |
50,402 |
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Income from operations |
3,776 |
3,744 |
22,353 |
24,684 |
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Other expense: |
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Interest expense, net |
6,443 |
5,014 |
23,549 |
20,091 |
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Amortization of deferred |
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financing costs |
788 |
348 |
2,454 |
1,376 |
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Other, net |
(22) |
(65) |
81 |
26 |
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Total other expense |
7,209 |
5,297 |
26,084 |
21,493 |
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Net income (loss) |
$ (3,433) |
$ (1,553) |
$ (3,731) |
$ 3,191 |
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Source: Norcraft Companies, L.P.
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