WINCHESTER, Va., Nov. 24, 2010  -- American Woodmark Corporation (Nasdaq: AMWD) today announced results for the second quarter of its fiscal year 2011, that ended on October 31, 2010.

Net sales rose by 3% compared with the second quarter of the prior fiscal year to $107,613,000. Net sales rose by 6% during the six-month period ended October 31, 2010 compared with the comparable period of the prior fiscal year, to $216,916,000. The Company's sales results in each of its sales channels approximated the overall rate of increase during the second quarter of fiscal year 2011.

The Company generated a net loss of ($7,384,000) or ($0.52) per diluted share during the second quarter of fiscal year 2011, compared with a net loss of ($5,279,000) or ($0.37) per diluted share in the second quarter of its prior fiscal year. The Company generated a net loss of ($10,802,000) or ($0.76) per diluted share in the six-month period ended October 31, 2010, compared with a net loss of ($11,685,000) or ($0.83) per diluted share in the comparable period of the prior fiscal year. The Company's results in the three- and six-month periods of the prior fiscal year included $146,000 and $1,742,000 of net-of-tax restructuring charges relating to cost reduction initiatives completed in the prior fiscal year. Exclusive of these charges, net loss for the three- and six-month periods ended October 31, 2009 was ($5,133,000) or ($0.36) per diluted share, and ($9,943,000) or ($0.70) per diluted share, respectively.

Gross profit for the second quarter of fiscal year 2011 was 9.1% of net sales, compared with 12.2% in the second quarter of the prior fiscal year. Gross profit was 11.2% of net sales during the first six months of fiscal year 2011, compared with 12.0% of net sales during the comparable period of the prior fiscal year. The decline in gross profit margin during the three- and six-month periods primarily reflected the unfavorable impact of increased sales promotion costs that were included as either reductions of sales or increases to cost of sales during the second quarter of fiscal year 2011.

Selling, general and administrative costs were 20.3% of net sales in the second quarter of fiscal year 2011, up from 20.1% of net sales in the second quarter of the prior fiscal year. Selling, general and administrative costs were 19.3% of net sales in the first six months of fiscal year 2011, down slightly from 19.7% in the comparable period of the prior fiscal year. The Company's operating expense ratio was relatively consistent with prior year levels, as increased sales and marketing costs were offset by reductions in general and administrative expense.

The Company generated positive free cash flow (defined as cash provided by operating activities net of cash used for investing activities) of $5.5 million in the second quarter of fiscal year 2011, compared with negative free cash flow generated in the second quarter of the prior fiscal year of $2.0 million. The Company's improvement in free cash flow was aided by the receipt of its federal income tax refund and by proceeds from the sale of a closed plant.


AMERICAN WOODMARK CORPORATION


Unaudited Financial Highlights


(in thousands, except share data)












Operating Results














Three Months Ended


Six Months Ended




October 31


October 31




2010


2009


2010


2009












Net Sales

$    107,613


$    104,068


$     216,916


$    204,903


Cost of Sales & Distribution

97,797


91,399


192,713


180,400



Gross Profit

9,816


12,669


24,203


24,503


Sales & Marketing Expense

15,805


14,510


29,908


27,859


G&A Expense

6,040


6,380


11,862


12,607


Restructuring Charges

16


233


39


2,787



Operating Loss

(12,045)


(8,454)


(17,606)


(18,750)


Interest & Other (Income) Expense

(87)


(7)


(113)


(53)


Income Tax Benefit

(4,574)


(3,168)


(6,691)


(7,012)



Net Loss

$      (7,384)


$      (5,279)


$     (10,802)


$    (11,685)












Earnings Per Share:









Weighted Average Shares Outstanding - Diluted

14,240,178


14,138,091


14,231,165


14,125,859












Loss Per Diluted Share

$        (0.52)


$        (0.37)


$         (0.76)


$        (0.83)

























Condensed Consolidated Balance Sheet












October 31


April 30





2010


2010









Cash & Cash Equivalents


$        55,866


$   53,233


Customer Receivables


27,721


27,524


Inventories


23,982


25,239


Other Current Assets


10,186


17,048



Total Current Assets


117,755


123,044


Property, Plant & Equipment


107,059


114,107


Restricted Cash


14,419


14,419


Other Assets


31,827


30,863



Total Assets


$      271,060


$ 282,433









Current Portion - Long-Term Debt


$             926


$        893


Accounts Payable & Accrued Expenses


45,869


48,686



Total Current Liabilities


46,795


49,579


Long-Term Debt


25,275


25,582


Other Liabilities


34,233


31,954



Total Liabilities


106,303


107,115


Stockholders' Equity


164,757


175,318



Total Liabilities & Stockholders' Equity


$      271,060


$ 282,433











Condensed Consolidated Statements of Cash Flows








Six Months Ended



October 31



2010


2009







Net Cash Provided/(Used) by Operating Activities

$   7,591


$ (6,438)


Net Cash Used by Investing Activities

(2,426)


(4,595)


Free Cash Flow

5,165


(11,033)







Net Cash Used by Financing Activities

(2,532)


(2,397)


Net Increase/(Decrease) in Cash and Cash Equivalents

2,633


(13,430)


Cash and Cash Equivalents, Beginning of Period

53,233


82,821







Cash and Cash Equivalents, End of Period

$ 55,866


$ 69,391








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 eleven manufacturing facilities and nine service centers across the country.

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