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American Woodmark Corporation Announces Fourth Quarter Results and Authorization of a $100 Million Stock Buyback Program

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American Woodmark Corporation (NASDAQ: AMWD) (the "Company") today announced results for its fourth fiscal quarter ended April 30, 2021.

Net sales for the fourth fiscal quarter increased $74.2 million, or 18.6%, to $473.4 million compared with the same quarter of the prior fiscal year. The Company experienced double-digit growth across all channels (repair and remodel and new construction) during the fourth quarter of fiscal 2021 as market demand recovered with consumer confidence remaining strong. Net sales for the current fiscal year increased $93.7 million, or 5.7%, to $1,744.0 million from the prior fiscal year.

Net income was $2.8 million ($0.17 per diluted share) for the fourth quarter of fiscal 2021 compared with $13.0 million ($0.77 per diluted share) in the same quarter of the prior fiscal year. Net income for the fourth quarter of fiscal 2021 decreased $10.2 million due to a pre-tax loss on debt modification of $13.8 million and higher material and logistics costs, offset by an increase in net sales. Net income for the current fiscal year was $58.8 million ($3.45 per diluted share) compared with $74.9 million ($4.42 per diluted share) for the prior fiscal year. Net income for fiscal 2021 decreased primarily due to a pre-tax loss on debt modification of $13.8 million. The Company also incurred net pre-tax restructuring costs of $5.8 million during fiscal 2021 related to the permanent layoffs due to COVID-19 announced in the fourth quarter of fiscal 2020 and the first quarter of fiscal 2021 and the closure of its Humboldt, Tennessee manufacturing plant announced in June 2020. Adjusted EPS per diluted share was $1.28 for the fourth quarter of fiscal 2021 compared with $1.33 in the same quarter of the prior fiscal year and $6.40 for the current fiscal year compared with $6.59 for the prior fiscal year.

Adjusted EBITDA for the fourth fiscal quarter was $47.2 million, or 10.0% of net sales, compared to $53.4 million, or 13.4% of net sales, for the same quarter of the prior fiscal year. Adjusted EBITDA for the current fiscal year was $223.2 million, or 12.8% of net sales, compared to $236.0 million, or 14.3% of net sales, for the prior fiscal year.

"During the fourth quarter of fiscal 2021, our teams delivered exceptional sales growth across all channels and were able to restructure our debt to increase liquidity and reduce interest expense," said Scott Culbreth, President and CEO. "Our focus remains on increasing production to match the strong demand environment and mitigate inflationary pressures in material, logistics and labor through pricing and productivity."

Cash provided by operating activities for the current fiscal year was $151.8 million and free cash flow totaled $105.4 million. As of April 30, 2021, the Company had $91.1 million of cash on hand with $243.8 million term loan debt and $264 million drawn on the revolving credit facility plus access to $236 million of additional availability under its revolving credit facility. The Company paid down $80 million of its term loan facility during the current fiscal year and completed $20.0 million of share repurchases.

On May 25, 2021, the Board of Directors authorized a stock repurchase program of up to $100 million of the Company's outstanding common shares. In conjunction with this authorization the Board of Directors cancelled the $50 million existing authorization, of which the Company had repurchased $20 million in the fourth quarter of fiscal 2021. Any repurchases under the stock repurchase program are subject to market conditions, the Company’s cash requirements for other purposes, compliance with applicable laws and regulations and contractual covenants and any other factors management may deem relevant at the time of such repurchases. The Company is not obligated to make any stock repurchases in the future.

About American Woodmark

American Woodmark Corporation manufactures and distributes kitchen, bath and home organization products for the remodeling and new home construction markets. Its products are sold on a national basis directly to home centers, builders and through a network of independent dealers and distributors. At April 30, 2021, the Company operated seventeen manufacturing facilities in the United States and Mexico and eight primary service centers and one distribution center located throughout the United States.

Use of Non-GAAP Financial Measures

We have presented certain financial measures in this press release which have not been prepared in accordance with U.S. generally accepted accounting principles (GAAP). Definitions of our non-GAAP financial measures and a reconciliation to the most directly comparable financial measure calculated in accordance with GAAP are provided below following the financial highlights under the heading "Non-GAAP Financial Measures."

Safe harbor statement under the Private Securities Litigation Reform Act of 1995: All forward-looking statements made by the Company involve material risks and uncertainties and are subject to change based on factors that may be beyond the Company's control. Accordingly, the Company's future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to, those described in the Company's filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K. The Company does not undertake to publicly update or revise its forward looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.

(AMWD-ER)

AMERICAN WOODMARK CORPORATION

 

Unaudited Financial Highlights

 

(in thousands, except share data)

 

Operating Results

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

April 30

 

April 30

 

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

 

Net sales

 

$

473,390

 

 

$

399,197

 

 

$

1,744,014

 

 

$

1,650,333

 

Cost of sales & distribution

 

399,584

 

 

323,928

 

 

1,424,739

 

 

1,321,147

 

Gross profit

 

73,806

 

 

75,269

 

 

319,275

 

 

329,186

 

Sales & marketing expense

 

26,096

 

 

21,069

 

 

89,464

 

 

83,608

 

General & administrative expense

 

25,869

 

 

27,088

 

 

112,283

 

 

113,334

 

Restructuring charges, net

 

444

 

 

189

 

 

5,848

 

 

(18

)

Operating income

 

21,397

 

 

26,923

 

 

111,680

 

 

132,262

 

Interest expense, net

 

5,371

 

 

6,579

 

 

23,128

 

 

29,027

 

Other expense, net

 

14,045

 

 

3,386

 

 

11,117

 

 

2,687

 

Income tax (benefit) expense

 

(846

)

 

3,945

 

 

18,672

 

 

25,687

 

Net income

 

$

2,827

 

 

$

13,013

 

 

$

58,763

 

 

$

74,861

 

 

 

 

 

 

 

 

 

 

Earnings Per Share:

 

 

 

 

 

 

 

 

Weighted average shares outstanding - diluted

 

Stock AMWD logo
American Woodmark Corp

NASDAQ:AMWD

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AMWD Stock Data

1.52B
15.66M
1.44%
97.23%
2.28%
Wood Kitchen Cabinet and Countertop Manufacturing
Manufacturing
Link
United States of America
WINCHESTER

About AMWD

american woodmark corporation (awc)(nasdaq:amwd) is a leading manufacturer and distributor of kitchen and bath cabinets for the remodeling and new home construction markets. headquartered in winchester, va., is a fully integrated, just in time (jit) cabinet manufacturer. the company operates 9 manufacturing facilities, in arizona, georgia, indiana, kentucky, maryland, tennessee, virginia, and west virginia, and 9 builder centers across the country. all american woodmark products are certified by the kitchen cabinet manufacturers association (kcma) environmental stewardship program. all cabinetry comes with american woodmark’s tufftech® and beautyguard® finishes to resist scuffs, scratches, fading and moisture. american woodmark manufactures cabinets under four major brands: our american woodmark™ brand, which includes an extensive collection of coordinated moldings and accessories, can be found exclusively at the home depot. our shenandoah cabinetry® brand is available exclus