American Woodmark Corporation Announces First Quarter Results
WINCHESTER, Va., Aug. 22, 2017 /PRNewswire/ -- American Woodmark Corporation (NASDAQ: AMWD) today announced results for its first fiscal quarter ended July 31, 2017.
Net sales for the first fiscal quarter increased 7% to $276.8 million compared with the same quarter of the prior fiscal year. The Company experienced growth in both the new construction and dealer channels during the first quarter of fiscal year 2018.
Net income was $22.3 million ($1.36 per diluted share) for the first quarter of the current fiscal year compared with $21.7 million ($1.32 per diluted share) for the first quarter of the prior fiscal year. The Company benefited $0.13 per diluted share in the first quarter of the current fiscal year and $0.06 per diluted share in the first quarter of the prior fiscal year from a lower tax rate due to a benefit from stock-based compensation transactions.
Gross profit for the first quarter of the current fiscal year was 21.1% of net sales compared with 23.0% in the same quarter of the prior year. Gross profit in the current quarter was unfavorably impacted by higher transportation costs, material inflation and higher healthcare costs. The prior year quarter benefited from an unusually low healthcare spend.
Selling, general and administrative costs for the first quarter of the current fiscal year were 10.0% of net sales compared with 10.6% in the same quarter of the prior year. The decrease in the Company's operating expense ratio was driven by favorable leverage from increased sales and lower incentive compensation costs.
The Company generated net cash from operating activities of $26.6 million during the first quarter of fiscal year 2018 compared with $32.9 million during the same period in the prior year. The decline in the Company's cash from operating activities was driven primarily by higher inventories to support increased sales and lower increases in accounts payable. Net cash used by investing activities was $21.2 million during the first quarter of the current fiscal year compared with $40.6 million during the same period of the prior year due to a $25.5 million reduced investment in certificates of deposit which was partially offset by increased investment in property, plant and equipment. Net cash used by financing activities of $6.8 million increased $2.5 million during the first quarter of the current fiscal year compared to the same period in the prior year as the company repurchased 56,700 shares of common stock at a cost of $5.6 million, a $0.5 million increase from the prior year, and proceeds from the exercise of stock options decreased $0.8 million.
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 nine manufacturing facilities and seven service centers across the country.
Safe harbor statement under the Private Securities Litigation Reform Act of 1995: All forward?looking statements made by the Company involve material risks and uncertainties and are subject to change based on factors that may be beyond the Company's control. Accordingly, the Company's future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to, those described in the Company's filings with the Securities and Exchange Commission and the Annual Report to Shareholders. The Company does not undertake to publicly update or revise its forward looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.
AMERICAN WOODMARK CORPORATION
Unaudited Financial Highlights
(in thousands, except share data)
Operating Results
Three Months Ended
July 31
2017 2016
---- ----
Net Sales $276,827 $258,150
Cost of Sales & Distribution 218,333 198,833
------- -------
Gross Profit 58,494 59,317
Sales & Marketing Expense 18,153 16,463
G&A Expense 9,507 10,932
----- ------
Operating Income 30,834 31,922
Interest & Other (Income)
Expense (538) (38)
Income Tax Expense 9,091 10,299
----- ------
Net Income $22,281 $21,661
Earnings Per Share:
Weighted Average Shares
Outstanding -Diluted 16,355,045 16,380,983
Income Per Diluted Share $1.36 $1.32
Condensed Consolidated Balance Sheet
(Unaudited)
July 31 April 30
2017 2017
---- ----
Cash & Cash Equivalents $175,597 $176,978
Investments -certificates
of deposit 54,750 51,750
Customer Receivables 62,771 63,115
Inventories 44,477 42,859
Other Current Assets 4,828 4,526
----- -----
Total Current Assets 342,423 339,228
Property, Plant &
Equipment 115,427 107,933
Investments -certificates
of deposit 27,000 20,500
Other Assets 32,359 33,612
------ ------
Total Assets $517,209 $501,273
Current Portion - Long-
Term Debt $1,691 $1,598
Accounts Payable & Accrued
Expenses 97,473 99,899
------ ------
Total Current Liabilities 99,164 101,497
Long-Term Debt 16,211 15,279
Other Liabilities 29,413 32,048
------ ------
Total Liabilities 144,788 148,824
Stockholders' Equity 372,421 352,449
------- -------
Total Liabilities & Stockholders'
Equity $517,209 $501,273
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended
July 31
2017 2016
---- ----
Net
Cash
Provided
by
Operating
Activities $26,570 $32,947
Net
Cash
Used
by
Investing
Activities (21,178) (40,571)
Net
Cash
Used
by
Financing
Activities (6,773) (4,276)
------ ------
Net
Decrease
in
Cash
and
Cash
Equivalents (1,381) (11,900)
Cash
and
Cash
Equivalents,
Beginning
of
Period 176,978 174,463
------- -------
Cash
and
Cash
Equivalents,
End
of
Period $175,597 $162,563
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SOURCE American Woodmark Corporation
