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-

Norcraft Companies, L.P.

Consolidated Balance Sheet 

(dollar amounts in thousands) 

(unaudited)

ASSETS

December 31,

2011

2010

Current assets:

Cash and cash equivalents

$ 24,185

$ 28,657

Trade accounts receivable, net

20,092

17,982

Inventories

17,503

17,363

Prepaid and other current assets

1,835

1,558

Total current assets

63,615

65,560

Property, plant and equipment, net

27,434

30,199

Other assets:

Goodwill

88,479

88,483

Intangible assets, net

77,732

76,379

Display cabinets, net

5,842

5,016

Other

568

754

Total other assets

172,621

170,632

Total assets

$ 263,670

$ 266,391

LIABILITIES AND MEMBER'S EQUITY

Current liabilities:

Accounts payable

$ 6,566

$ 7,678

Accrued expenses

13,775

16,200

Total current liabilities

20,341

23,878

Long-term debt

240,000

180,000

Unamortized premium (discount) on bonds payable

166

(2,414)

Other liabilities

108

153

Commitments and contingencies

-

-

Member's equity

3,055

64,774

Total liabilities and member's equity

$ 263,670

$ 266,391

 

Norcraft Companies, L.P.

Consolidated Statement of Operations

(dollar amounts in thousands) 

(unaudited)

Three Months Ended

December 31,

Year Ended

December 31,

2011

2010

2011

2010

Net sales

$ 62,362

$ 60,691

$ 269,305

$ 262,568

Cost of sales

45,630

45,013

195,853

187,482

Gross profit

16,732

15,678

73,452

75,086

Selling, general and

administrative expenses

12,956

11,934

51,099

50,402

Income from operations

3,776

3,744

22,353

24,684

Other expense:

Interest expense, net

6,443

5,014

23,549

20,091

Amortization of deferred

financing costs

788

348

2,454

1,376

Other, net

(22)

(65)

81

26

Total other expense

7,209

5,297

26,084

21,493

Net income (loss)

$ (3,433)

$ (1,553)

$ (3,731)

$ 3,191

Source: Norcraft Companies, L.P.

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