American Woodmark Corporation Announces Second Quarter Results

WINCHESTER, Va., Dec. 1, 2017 /PRNewswire/ -- American Woodmark Corporation (NASDAQ: AMWD) today announced results for its second fiscal quarter ended October 31, 2017.

Second Fiscal Quarter Ended October 31, 2017 Results

Net sales for the second fiscal quarter increased 4% to $274.8 million compared with the same quarter of the prior fiscal year.  Net sales for the first six months of the current fiscal year increased 6% to $551.6 million from the comparable period of the prior fiscal year.  The Company experienced growth in both the new construction and dealer channels during the second quarter of fiscal year 2018.

Net income was $19.8 million ($1.21 per diluted share) for the second quarter of the current fiscal year compared with $17.6 million ($1.07 per diluted share) in the same quarter of the prior fiscal year.  The Company was negatively impacted $0.02 per diluted share in the quarter due to a reduction in the domestic production deduction benefit resulting from discretionary pension contributions approved during the quarter.  Net income for the first six months of the current fiscal year was $42.0 million ($2.58 per diluted share) compared with $39.3 million ($2.39 per diluted share) for the same period of the prior fiscal year.

Gross profit for the second quarter of the current fiscal year was 20.9% of net sales compared with 21.3% in the same quarter of the prior fiscal year.  Gross profit for the first six months of the current fiscal year was 21.0% of net sales compared with 22.1% for the same period in the prior year.  Gross profit in the current quarter was impacted by higher transportation costs and material inflation.  Gross profit for the first six months of the current fiscal year was unfavorably impacted by higher transportation costs, material inflation and higher healthcare costs.

Selling, general and administrative costs for the second quarter of the fiscal year 2018 were 9.7% of net sales compared with 10.5% in the same quarter of the prior fiscal year.  Selling, general and administrative costs for the first six months of the current fiscal year were 9.8% of net sales compared with 10.5% for the same period in the prior year.  The improvement in the Company's operating expense ratio in the current quarter and the first six months of the current fiscal year was driven by favorable leverage from increased sales, lower incentive compensation costs and on-going expense control.

The Company generated net cash from operating activities of $41.8 million during the first half of fiscal year 2018 compared with $40.1 million during the same period in the prior year.  The increase in the Company's cash from operating activities was driven primarily by lower increases in customer receivables and higher operating profitability which was partially offset by higher inventories to support increased sales and lower increases in accounts payable.  Net cash used by investing activities was $31.1 million during the first half of the current fiscal year compared with $50.4 million during the same period of the prior year due to a $28.5 million reduced investment in certificates of deposit which was partially offset by increased investment in property, plant and equipment.  Net cash used by financing activities of $25.1 million increased $16.6 million during the first half of the current fiscal year compared to the same period in the prior year as the company repurchased 251,241 shares of common stock at a cost of $23.5 million, a $13.1 million increase from the prior year, and proceeds from the exercise of stock options decreased $1.0 million.

Agreement to Acquire RSI Home Products, Inc.

Earlier today American Woodmark Corporation publicly announced that it has entered into a definitive agreement and plan of merger with RSI Home Products, Inc. ("RSI"), a leading manufacturer of kitchen and bath cabinetry and home storage products.  The Company will host a conference call with investors, December 1, 2017 at 11:00 EST to discuss the second quarter results and the agreement to acquire RSI.  The live broadcast of American Woodmark Corporation's conference call will be available on-line at: www.americanwoodmark.com on Friday, December 1, beginning at 11:00 a.m. (Eastern Time). The online replay will follow immediately and continue for 30 days.  A telephonic replay will be available from 2:00 p.m. (Eastern Time)December 1 through 2:00 p.m. (Eastern Time)December 12, by dialing 719-457-0820 and entering passcode 9813605.  A presentation, which will accompany the call, will be available at www.americanwoodmark.com and will remain available after the call.

About American Woodmark Corporation

American Woodmark Corporation manufactures and distributes kitchen cabinets and vanities for the remodeling and new home construction markets.  Its products are sold on a national basis directly to home centers, major builders and through a network of independent distributors.  The Company presently operates nine manufacturing facilities and seven service centers across the country.

Forward-Looking Statements

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 and the Annual Report to Shareholders.  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.

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SOURCE American Woodmark Corporation