American Woodmark Corporation Announces Second Quarter Results

American Woodmark Corporation (the “Company”) announced results for its second quarter of fiscal 2023 which ended October 31, 2022.

Net sales for the second quarter of fiscal 2023 increased $108.3 million, or 23.9%, to $561.5 million compared with the same quarter of the prior fiscal year. Net sales for the first six months of the current fiscal year increased 23.3% to $1,104.4 million from the comparable period of the prior fiscal year. The Company experienced growth in all sales channels during the second quarter and first half of fiscal 2023 versus the prior year periods.

Net income was $28.8 million ($1.73 per diluted share) for the second quarter of fiscal 2023 compared with net income of $2.0 million ($0.12 per diluted share) in the same quarter of the prior fiscal year. Net income for the second quarter of fiscal 2023 increased due to an increase in net sales largely as a result of price increases and increased efficiencies, partially offset by higher material and logistics costs. Net income for the first six months of the current fiscal year was $48.9 million ($2.94 per diluted share) compared with $5.0 million ($0.30 per diluted share) for the same period of the prior fiscal year. Net income margin was 5.1% for the second quarter of fiscal 2023 compared to 0.4% for the same period in the prior fiscal year and 4.4% for the first six months of the current fiscal year compared with 0.6% for the same period of the prior fiscal year. Adjusted EPS per diluted share was $2.24 for the second quarter of fiscal 2023 compared with $0.62 in the same quarter of the prior fiscal year and $3.94 for the first six months of the current fiscal year compared with $1.32 for the same period of the prior fiscal year.

Adjusted EBITDA for the second quarter of fiscal 2023 increased $36.8 million, or 119.6%, to $67.6 million, or 12.0% of net sales, compared to $30.8 million, or 6.8% of net sales, for the same quarter of the prior fiscal year. Adjusted EBITDA for the first six months of fiscal 2023 increased $61.2 million, or 97.3%, to $124.1 million, or 11.2% of net sales, compared to $62.9 million, or 7.0% of net sales, for the same period of the prior fiscal year.

Cash provided by operating activities for the first six months of fiscal 2023 was $55.4 million and free cash flow totaled $44.4 million. This $81.7 million increase in free cash flows versus the first six months of fiscal 2022 was primarily due to changes in our operating cash flows, specifically, higher net income and accrued expenses, in addition to lower capital spending which was partially offset by higher inventory positions. As of October 31, 2022, the Company had $44.8 million of cash and cash equivalents on hand with no term loan debt maturities until July 2023 plus access to $239.4 million of additional availability under its revolving facility. The Company paid down $21.2 million of its debt during the first six months of the current fiscal year.

“During the second quarter of fiscal 2023, our teams delivered sales growth of 23.9% and improved Adjusted EBITDA by 119.6% to $67.6 million,” said Scott Culbreth, President and CEO. “As stated in previous quarters, we committed to improving our results as price realization better matched inflationary impacts and we improved our costs through operating efficiency initiatives. Our team has delivered on this commitment during the first half of the fiscal year and I thank each of them for their efforts.”

For the full second 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 – Vice President & Treasury Director – (540) 665-9100

Source: American Woodmark Corporation