American Woodmark Corporation Announces Third Quarter Results

American Woodmark Corporation (the “Company”) announced results for its third fiscal quarter ended January 31, 2024.

Fiscal Third Quarter 2024 Financial Highlights:

•       Net sales decreased 12.2% year-over-year to $422.1 million

•       Net income increased 44.1% year-over-year to $21.2 million

•       GAAP EPS of $1.32; Adjusted EPS of $1.66

•       Adjusted EBITDA decreased 0.7% year-over-year to $50.6 million

•       Cash provided by operating activities of $43.7 million; free cash flow of $21.8 million

•       Repurchased 215,629 shares for $19.6 million

Fiscal First Nine Months 2024 Financial Highlights:

•       Net sales decreased 12.0% year-over-year to $1,394.2 million

•       Net income increased 40.6% year-over-year to $89.4 million

•       GAAP EPS of $5.46; Adjusted EPS of $6.83

•       Adjusted EBITDA increased 13.1% year-over-year to $198.1 million

•       Cash provided by operating activities of $187.4 million; free cash flow of $131.7 million

•       Repurchased 938,144 shares for $71.8 million

“As our teams have demonstrated throughout the fiscal year, we delivered strong financial performance in the third quarter of fiscal year 2024 despite the slowing demand environment,” said Scott Culbreth, President and CEO. “Consistent with the first half of fiscal year 2024 performance, net sales and Adjusted EBITDA exceeded our expectations as improved operational performance continues. The Company’s net sales outlook for the remainder of the fiscal year remains unchanged from the prior outlook but we now expect stronger Adjusted EBITDA performance.”

Third Quarter Results

Net sales for the third quarter of fiscal 2024 decreased $58.6 million, or 12.2%, to $422.1 million compared with the same quarter of the prior fiscal year. Net income was $21.2 million ($1.32 per diluted share and 5.0% of net sales) compared with $14.7 million ($0.88 per diluted share and 3.1% of net sales) in the same quarter of the prior fiscal year. Net income for the third quarter of fiscal 2024 increased $6.5 million due to favorable product mix and pricing matching inflationary cost impacts, operational improvements in our manufacturing facilities, a stabilizing supply chain and reduced overhead spending, offset by a decrease in net sales. Adjusted EPS per diluted share was $1.66 for the third quarter of fiscal 2024 compared with $1.46 in the same quarter of the prior fiscal year. Adjusted EBITDA for the third quarter of fiscal 2024 decreased $0.4 million, or 0.7%, to $50.6 million, or 12.0% of net sales, compared to $51.0 million, or 10.6% of net sales, for the same quarter of the prior fiscal year. 

Fiscal Year to Date Results

Net sales for the first nine months of fiscal 2024 decreased $190.9 million, or 12.0%, to $1,394.2 million compared with the same period of the prior fiscal year. Net income was $89.4 million ($5.46 per diluted share and 6.4% of net sales) compared with $63.6 million ($3.82 per diluted share and 4.0% of net sales) in the same period of the prior fiscal year. Net income for the first nine months of fiscal 2024 increased $25.8 million due to favorable product mix and pricing matching inflationary cost impacts, operational improvements in our manufacturing facilities, a stabilizing supply chain and reduced overhead spending, offset by a decrease in net sales and a $4.9 million pre-tax charge related to Antidumping and Countervailing Duty Orders on Vietnamese plywood imports recognized in the first quarter of fiscal 2024, which we have previously disclosed. Adjusted EPS per diluted share was $6.83 for the first nine months of fiscal 2024 compared with $5.40 in the same period of the prior fiscal year. Adjusted EBITDA for the first nine months of fiscal 2024 increased $23.0 million, or 13.1%, to $198.1 million, or 14.2% of net sales, compared to $175.1 million, or 11.0%of net sales, for the same period of the prior fiscal year.

Balance Sheet & Cash Flow

As of January 31, 2024, the Company had $97.8 million in cash plus access to $322.9 million of additional availability under its revolving credit facility. Also, as of January 31, 2024, the Company had $206.3 million in term loan debt and $163.8 million drawn on its revolving credit facility.  

Cash provided by operating activities for the first nine months of fiscal 2024 was $187.4 million and free cash flow totaled $131.7 million. The Company repurchased 215,629 shares, or approximately 1.4% of shares outstanding, for $19.6 million during the third quarter of fiscal 2024, and 938,144 shares, or approximately 5.9% of shares outstanding, for $71.8 million during the first nine months of fiscal 2024. As of January 31, 2024, $105.4 million of funds remained available from the amounts authorized by the Board to repurchase the Company’s common stock.

Fiscal 2024 Financial Outlook

For the full fiscal year 2024, including the third fiscal quarter results, the Company is:

•       Reaffirming low double digit net sales decline year-over-year, with high single digit declines in the fourth fiscal quarter

•       Increasing and narrowing the Adjusted EBITDA outlook to the range of $247 million to $253 million

“During the recently completed third fiscal quarter, our teams improved Adjusted EBITDA by 140 BPS to $50.6 million, or 12.0% of net sales. Our teams have sustained performance throughout the year to help deliver on the commitment to improving our results,” said Paul Joachimczyk, Senior Vice President and Chief Financial Officer. “Given our strong performance for the first three quarters of the fiscal year, we are narrowing and increasing our range for the full fiscal year 2024 Adjusted EBITDA outlook to $247 million to $253 million.”

Our Adjusted EBITDA outlook excludes the impact of certain income and expense items that management believes are not part of underlying operations. These items may include restructuring costs, interest expense, stock-based compensation expense, and certain tax items. Our management cannot estimate on a forward-looking basis the impact of these income and expense items on its reported net income, which could be significant, are difficult to predict, and may be highly variable. As a result, the Company does not provide a reconciliation to the closest corresponding GAAP financial measure for its Adjusted EBITDA outlook.

For the full third quarter results, click here.

About American Woodmark

American Woodmark celebrates the creativity in all of us. With over 8,800 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 – VP & Treasury Director – (540) 665-9100

Source: American Woodmark Corporation