American Woodmark Corporation Announces First Quarter Results

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

Fiscal First Quarter 2025 Financial Highlights:

• Net sales of $459.1 million
• Net income of $29.6 million
• GAAP EPS of $1.89
• Adjusted EBITDA of $62.9 million; 13.7% of net sales
• Cash provided by operating activities of $40.8 million; free cash flow of $29.4 million
• Repurchased 271,460 shares for $24.0 million

“Our team delivered net sales growth in the new construction market, but this was more than offset by weaker than projected demand in the remodel market,” said Scott Culbreth, President and CEO. “Softer demand in the remodel market is expected to continue and we have seen a recent slowdown in new construction single family starts. Despite these macroeconomic demand challenges, we continue to target share gains in all channels to ensure our performance exceeds market demand for the fiscal year.”

First Quarter Results

Net sales for the first quarter of fiscal 2025 decreased $39.1 million, or 7.9%, to $459.1 million compared with the same quarter last fiscal year. Net income was $29.6 million ($1.89 per diluted share and 6.5% of net sales) compared with $37.9 million ($2.28 per diluted share and 7.6% of net sales) last fiscal year. Net income decreased $8.2 million due to a decrease in net sales combined with an unfavorable mark-to-market adjustment on our foreign currency hedging instruments of $6.3 million, partially offset by the roll-off of acquisition-related intangible asset amortization of $11.4 million, which ended in the third quarter of the prior fiscal year, non-recurring pre-tax charge related to the plywood case last fiscal year of $4.9 million, and lower year-over-year incentive compensation. Adjusted EPS per diluted share was $1.89 for the first quarter of fiscal 2025 compared with $2.78 last fiscal year. Adjusted EBITDA for the first quarter of fiscal 2025 decreased $12.3 million, or 16.3%, to $62.9 million, or 13.7% of net sales, compared with $75.2 million, or 15.1% of net sales, last fiscal year. 

Balance Sheet & Cash Flow

As of July 31, 2024, the Company had $89.3 million in cash plus access to $322.9 million of additional availability under its revolving credit facility. Also, as of July 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 current fiscal quarter was $40.8 million and free cash flow totaled $29.4 million. The Company repurchased 271,460 shares, or approximately 1.8% of shares outstanding, for $24.0 million during the first quarter of fiscal 2025. As of July 31, 2024, $65.4 million of funds remained available from the amounts authorized by the Board to repurchase the Company’s common stock.

Fiscal 2025 Financial Outlook

For fiscal 2025 (which includes the now completed first quarter) the Company expects:

• Low single-digit decline in net sales year-over-year
• Adjusted EBITDA in the range of $225 million to $245 million

“During the first fiscal quarter, we achieved an Adjusted EBITDA of $62.9 million, representing 13.7% of net sales. This outcome was influenced by the weaker sales in the repair and remodel market during the quarter. Despite this, our teams remain dedicated to optimizing our platform expansion investments and have continued making operational improvements, positioning us well for when macro housing conditions improve,” stated Paul Joachimczyk, Senior Vice President and Chief Financial Officer. “We remain committed to investing back in the business and continued returns to our shareholders by repurchasing 1.8% of our shares outstanding.”

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 full 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