American Woodmark Corporation Announces Fourth Quarter Results

American Woodmark Corporation today announced results for its fourth fiscal quarter ended April 30, 2022, and its fiscal year ended April 30, 2022.

Net sales for the fourth fiscal quarter increased $28.3 million, or 6.0%, to $501.7 million compared with the same quarter of the prior fiscal year. The Company experienced growth across all sales channels during the fourth quarter of fiscal 2022 as market demand remained strong. Net sales for the current fiscal year increased $113.2 million, or 6.5%, to $1,857.2 million from the prior fiscal year.

Net income was $14.5 million ($0.87 per diluted share) for the fourth quarter of fiscal 2022 compared with $3.6 million ($0.21 per diluted share) in the same quarter of the prior fiscal year. Net income for the fourth quarter of fiscal 2022 increased $10.9 million due to an increase in net sales and the absence of a pre-tax loss on debt modification of $13.8 million incurred in the fourth quarter of the prior year, partially offset by higher material and logistics costs. Net loss for the current fiscal year was $29.7 million ($1.79 per diluted share) compared with net income of $61.2 million ($3.59 per diluted share) for the prior fiscal year. Net income for fiscal 2022 decreased primarily due to onetime pension settlement charges of $68.5 million related to the termination of the Company’s pension plan, while the Company also experienced continued pressures in raw material increases, supply chain disruptions and continued labor challenges. Adjusted EPS per diluted share was $1.38 for the fourth quarter of fiscal 2022 compared with $1.32 in the same quarter of the prior fiscal year and $3.29 for the current fiscal year compared with $6.54 for the prior fiscal year.

Adjusted EBITDA for the fourth fiscal quarter was $44.5 million, or 8.9% of net sales, compared to $48.2 million, or 10.2% of net sales, for the same quarter of the prior fiscal year. Adjusted EBITDA for the current fiscal year was $138.0 million, or 7.4% of net sales, compared to $226.5 million, or 13.0% of net sales, for the prior fiscal year.

“Our teams delivered sales growth across all channels for the fiscal fourth quarter. Adjusted EBITDA margins of 8.9% for the fiscal fourth quarter were the strongest of the fiscal year, although they were negatively impacted by rising fuel costs and material inflation. We are in process or have completed, depending upon the channel, an additional set of pricing actions that will further offset inflationary impacts beginning in July,” said Scott Culbreth, President and CEO. “We expect significant Adjusted EBITDA margin improvement in fiscal year 2023 versus current levels as price realization better matches inflationary impacts, we improve costs through productivity initiatives, and we increase our production levels as staffing improves.”

Cash provided by operating activities for the current fiscal year was $24.4 million and free cash flow totaled $(27.1) million. As of April 30, 2022, the Company had $22.3 million of cash on hand with $237.5 million in term loan debt and $263 million drawn on the revolving credit facility plus access to $237 million of additional availability under its revolving credit facility. The Company paid down a net of $13.5 million of its term loan facility during the current fiscal year and completed $25.0 million of share repurchases.

Effective May 1, 2021, the Company changed its accounting method for inventory costing for inventories which previously utilized a last-in, first-out (“LIFO”) basis to a first-in, first-out (“FIFO”) basis. All prior periods presented have been retrospectively adjusted to apply the effects of the change.

For the full fourth quarter results, click here.

About American Woodmark

American Woodmark celebrates the creativity in all of us. With over 10,000 employees and more than a dozen brands, we’re one of the nation’s largest cabinet manufacturers. From inspiration to installation, we help people find their unique style and turn their home into a space for self-expression. By partnering with major home centers, builders, and independent dealers and distributors, we spark the imagination of homeowners and designers and bring their vision to life. Across our service and distribution centers, our corporate office, and manufacturing facilities, you’ll always find the same commitment to customer satisfaction, integrity, teamwork, and excellence. Visit americanwoodmark.com to learn more and start building something distinctly your own.

Contact:

Kevin Dunnigan – Treasury Director – (540) 665-9100

Source: American Woodmark Corporation