Attached files
| file | filename |
|---|---|
| 8-K - FY10 Q3 EARNINGS RELEASE - AMERICAN WOODMARK CORP | awc8kearningsq3fy10.htm |
News
Release
|
P.O.
Box 1980
Winchester, VA
22604-8090
|
FOR IMMEDIATE
RELEASE
Contact: Glenn
Eanes
Vice President and
Treasurer
540-665-9100
AMERICAN
WOODMARK CORPORATION
ANNOUNCES THIRD QUARTER
RESULTS
WINCHESTER,
Virginia (February 19, 2010) -- American Woodmark Corporation (NASDAQ: AMWD)
today announced results for the third quarter of its fiscal year 2010, that
ended on January 31, 2010.
Net sales
declined 32% compared with the third quarter of the prior fiscal year to
$89,230,000. Net sales declined 27% to $294,133,000 during the
nine-month period ended January 31, 2010 compared with the comparable period of
the prior fiscal year. The Company’s sales declines in its remodeling sales
channel exceeded the Company’s overall rate of decline during the third quarter
of fiscal year 2010.
The
Company generated a net loss of ($9,121,000) or ($0.64) per diluted share during
the third quarter of fiscal year 2010, compared with net income of $23,000 or
$0.00 per diluted share in the third quarter of its prior fiscal year. The
Company generated a net loss of ($20,807,000) or ($1.47) per diluted share in
the nine-month period ended January 31, 2010, compared with a net loss of
($301,000) or ($0.02) per diluted share in the comparable period of the prior
fiscal year.
The
Company announced several initiatives to reduce costs during the fourth quarter
of its prior fiscal year including the permanent closure of two manufacturing
plants, the suspension of operations at a third plant, and a reduction-in-force
of salaried personnel. The Company successfully completed these initiatives
during the first quarter of fiscal year 2010. In connection with these
initiatives, the Company recorded a net-of-tax restructuring benefit of $32,000,
or $0.00 per diluted share during its third quarter, and charges of
($1,710,000), or ($0.12) per diluted share, during the nine-month period ended
January 31, 2010. Exclusive of restructuring activities, net loss for the third
quarter of fiscal year 2010 was ($9,153,000), or ($0.65) per diluted share, and
($19,097,000) or ($1.35) per diluted share for the nine-month period ended
January 31, 2010.
Gross
profit for the third quarter of fiscal year 2010 was 6.6% of net sales, compared
with 15.5% in the third quarter of the prior fiscal year. Gross profit was 10.3%
of net sales during the first nine months of fiscal year 2010, compared with
15.3% of net sales during the comparable period of the prior fiscal year. The
decline in gross profit margin during the three and nine-month periods primarily
reflected the unfavorable impact of inefficiencies in direct labor and
manufacturing overhead costs stemming from the impact of lower sales volumes.
Partly offsetting these adverse factors were favorable impacts from lower fuel
and material costs, as well as reduced manufacturing overhead costs related to
the aforementioned plant closures.
Selling,
general and administrative costs were 23.0% of net sales in the third quarter of
fiscal year 2010, up from 15.9% of net sales in the third quarter of the prior
fiscal year. Selling, general and administrative costs were 20.7% of net sales
in the first nine months of fiscal year 2010, up from 15.7% in the comparable
period of the prior fiscal year. The Company’s operating expense ratio increased
during fiscal year 2010 due primarily to the reduction in sales, an increase in
sales promotional costs, and a benefit recorded in the prior year’s second
quarter relating to a terminated retiree health care plan.
The
Company generated positive free cash flow of $2.9 million (defined as cash
provided by operating activities net of cash used for investing activities) in
the third quarter of fiscal year 2010, compared with positive free cash flow
generated in the third quarter of the prior fiscal year of $5.3 million. The
decline in free cash flow compared with prior year was driven by the increased
net loss, which was partially offset by a reduction in working capital
deployed.
During
the quarter, the Company terminated its primary
credit facility with Bank of America, N.A. and entered into a $35 million
secured revolving line of credit agreement with Wells Fargo Bank, N.A. Pursuant
to the terms of the new credit agreement, $14.3 million of the Company’s cash
serves as security for this agreement, and was classified as restricted cash as
of January 31, 2010.
-MORE-
AMWD
Announces Third Quarter Results
Page
2
February
19, 2010
Commenting
on the Company’s third quarter performance, Chairman and CEO Kent Guichard
stated: “The Company’s sales comparison to the prior year’s third quarter was
adversely impacted by home center promotional activity which emphasized the
Company’s value price points last year. The Company continues to
actively pursue and achieve market share gains, and absent the impact of the
prior year promotions, believes it gained sustainable market share during the
third quarter. The Company’s net loss during the latest
quarter and for the fiscal year reflect our ongoing strategy to retain the
organizational and production capacity to service our customers as demand for
new construction and big ticket remodeling projects recovers. The
Company’s financial position remains outstanding, as evidenced by its generation
of free cash flow during the quarter and its ability to obtain an improved
credit facility at competitive rates and terms despite the ongoing credit
crunch.”
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.
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.
-MORE-
AMWD
Announces Third Quarter Results
Page
3
February
19, 2010
AMERICAN WOODMARK CORPORATION
Unaudited Financial
Highlights
(in thousands, except share data)
|
Operating
Results
|
||||||||||||||||
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
|
January
31
|
January
31
|
|||||||||||||||
|
2010
|
2009
|
2010
|
2009
|
|||||||||||||
|
Net
Sales
|
$ | 89,230 | $ | 131,153 | $ | 294,133 | $ | 405,245 | ||||||||
|
Cost
of Sales & Distribution
|
83,318 | 110,768 | 263,718 | 343,332 | ||||||||||||
|
Gross
Profit
|
5,912 | 20,385 | 30,415 | 61,913 | ||||||||||||
|
Sales
& Marketing Expense
|
14,189 | 14,759 | 42,048 | 45,450 | ||||||||||||
|
G&A
Expense
|
6,370 | 6,118 | 18,977 | 18,094 | ||||||||||||
|
Restructuring
charges
|
(51 | ) | -- | 2,736 | -- | |||||||||||
|
Operating
Loss
|
(14,596 | ) | (492 | ) | (33,346 | ) | (1,631 | ) | ||||||||
|
Interest
& Other (Income) Expense
|
(2 | ) | (156 | ) | (55 | ) | (745 | ) | ||||||||
|
Income
Tax Benefit
|
(5,473 | ) | (359 | ) | (12,484 | ) | (585 | ) | ||||||||
|
Net
Loss
|
$ | (9,121 | ) | $ | 23 | $ | (20,807 | ) | $ | (301 | ) | |||||
|
Earnings
Per Share:
|
||||||||||||||||
|
Weighted
Average Shares Outstanding - Diluted
|
14,160,256 | 14,055,327 | 14,137,325 | 14,644,859 | ||||||||||||
|
Loss
Per Diluted Share
|
$ | (0.64 | ) | $ | 0.00 | $ | (1.47 | ) | $ | (0.02 | ) | |||||
|
Condensed
Consolidated Balance Sheet
|
||||||||
|
January
31,
|
April
30,
|
|||||||
|
2010
|
2009
|
|||||||
|
Cash
& Cash Equivalents
|
$ | 56,288 | $ | 82,821 | ||||
|
Customer
Receivables
|
19,878 | 26,944 | ||||||
|
Inventories
|
23,470 | 32,684 | ||||||
|
Other
Current Assets
|
19,504 | 11,089 | ||||||
|
Total
Current Assets
|
119,140 | 153,538 | ||||||
|
Property,
Plant & Equipment
|
118,524 | 132,928 | ||||||
|
Restricted
Cash
|
14,339 | -- | ||||||
|
Other
Assets
|
22,365 | 17,271 | ||||||
|
Total
Assets
|
$ | 274,368 | $ | 303,737 | ||||
|
Current
Portion - Long-Term Debt
|
$ | 889 | $ | 859 | ||||
|
Accounts
Payable & Accrued Expenses
|
44,891 | 57,308 | ||||||
|
Total
Current Liabilities
|
45,780 | 58,167 | ||||||
|
Long-Term
Debt
|
25,736 | 26,475 | ||||||
|
Other
Liabilities
|
18,955 | 15,413 | ||||||
|
Total
Liabilities
|
90,471 | 100,055 | ||||||
|
Shareholders'
Equity
|
183,897 | 203,682 | ||||||
|
Total
Liabilities & Shareholders' Equity
|
$ | 274,368 | $ | 303,737 | ||||
|
-MORE-
|
||||||||
AMWD
Announces Third Quarter Results
Page
4
February
19, 2010
|
Condensed
Consolidated Statements of Cash Flows
|
||||||||
|
Nine
Months Ended
|
||||||||
|
January
31
|
||||||||
|
2010
|
2009
|
|||||||
|
Net
Cash Provided (Used) by Operating Activities
|
$ | (804 | ) | $ | 26,009 | |||
|
Net
Cash Used by Investing Activities
|
(7,310 | ) | (11,196 | ) | ||||
|
Free
Cash Flow
|
$ | (8,114 | ) | $ | 14,813 | |||
|
Net
Cash Used by Financing Activities
|
(18,419 | ) | (7,060 | ) | ||||
|
Net
Increase/(Decrease) in Cash and Cash Equivalents
|
(26,533 | ) | 7,753 | |||||
|
Cash
and Cash Equivalents, Beginning of Period
|
82,821 | 56,932 | ||||||
|
Cash
and Cash Equivalents, End of Period
|
$ | 56,288 | $ | 64,685 | ||||
|
-END-
|
||||||||