American Woodmark Announces First Quarter Results

American Woodmark Corporation (the “Company”) announced results for its first fiscal quarter ended July 31, 2023.

“Our team delivered strong financial performance in the first quarter of fiscal year 2024 despite the softening demand environment,” said Scott Culbreth, President and CEO. “Net sales and Adjusted EBITDA exceeded our expectations for the quarter as improved operational performance continues. The Company’s net sales outlook remains unchanged from the prior outlook but we now expect stronger Adjusted EBITDA performance consistent with the improvements needed to meet our long-term goals.” 

Fiscal First Quarter 2024 Financial Highlights:

•       Net sales decreased 8.2% year-over-year to $498.3 million

•       Net income increased 89% year-over-year to $37.9 million

•       GAAP EPS of $2.28; Adjusted EPS of $2.78

•       Adjusted EBITDA increased 33% year-over-year to $75.2 million

•       Cash provided by operating activities of $86.7 million, free cash flow of $72.5 million

•       Repurchased 328,295 shares for $22.1 million

First Quarter Results

Net sales for the first quarter of fiscal 2024 decreased $44.6 million, or 8.2%, to $498.3 million compared with the same quarter of the prior fiscal year. Net income was $37.9 million ($2.28 per diluted share) compared with $20.1 million ($1.21 per diluted share) in the same quarter of the prior fiscal year. Net income for the first quarter of fiscal 2024 increased $17.8 million due to operational improvements in our manufacturing facilities, a stabilizing supply chain and reduced overhead spending, partially offset by a decrease in net sales and a $4.9 million pre-tax charge related to the plywood case. Adjusted EPS per diluted share was $2.78 for the first quarter of fiscal 2024 compared with $1.71 in the same quarter of the prior fiscal year. Adjusted EBITDA for the first quarter of fiscal 2024 increased $18.7 million, or 33.0%, to $75.2 million, or 15.1% of net sales, compared to $56.5 million, or 10.4% of net sales, for the same quarter of the prior fiscal year. 

Balance Sheet & Cash Flow

As of July 31, 2023, the Company had $89.7 million in cash plus access to $323.2 million of additional availability under its revolving credit facility. Also, as of July 31, 2023, 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 $86.7 million and free cash flow totaled $72.5 million. The Company repurchased 328,295 shares, or approximately 2% of shares outstanding, for $22.1 million during the first quarter of fiscal 2024.

Fiscal 2024 Financial Outlook

For fiscal 2024 (which includes the now completed first quarter) the Company expects:

•       Low double digit net sales decline year-over-year

•       Adjusted EBITDA in the range of $225 million to $245 million

“Our teams improved Adjusted EBITDA by 470 BPS to $75.2 million, or 15.1% of net sales, despite the decline in sales of 8.2% during the first quarter of fiscal 2024. Our team continues to deliver on the commitment to improving our results,” said Paul Joachimczyk, Senior Vice President and Chief Financial Officer. “Given our strong performance at the start of the fiscal year, we are increasing our fiscal year 2024 Adjusted EBITDA outlook by $20 million which expands the range to $225 million to $245 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.

To view the full first 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 – Vice President & Treasury Director – (540) 665-9100

Source: American Woodmark Corporation