American Woodmark Corporation Announces Third Quarter Results
American Woodmark Corporation (the “Company”) announced results for its third fiscal quarter ended January 31, 2021.
Net sales for the third fiscal quarter increased $36.2 million, or 9.1%, to $432.0 million, compared with the same quarter of the prior fiscal year. The Company experienced growth across all channels, with low double-digit growth in the repair and remodel sales channel and mid-single digit growth in our new construction sales channel during the third quarter of fiscal 2021 as market demand recovered with consumer confidence remaining strong. Net sales for the first nine months of the current fiscal year increased $19.5 million, or 1.6%, to $1,270.6 million from the comparable period of the prior fiscal year.
Net income was $17.2 million ($1.01 per diluted share) for the third quarter of fiscal 2021 compared with $12.8 million ($0.75 per diluted share) in the same quarter of the prior fiscal year. Net income for the third quarter of fiscal 2021 increased $4.4 million due to an increase in net sales, offset by higher material and logistics costs. In addition, the Company made an investment to establish a distribution center and continued to enhance our labor benefits for our hourly workforce. Net income for the first nine months of the current fiscal year was $55.9 million ($3.28 per diluted share) compared with $61.8 million ($3.65 per diluted share) for the same period of the prior fiscal year. The Company had a pre-tax $0.8 million restructuring related gain during the third quarter of fiscal 2021, which was driven by a gain of $2.3 million from its sale of its Humboldt, Tennessee manufacturing facility. The Company incurred net pre-tax restructuring costs of $5.4 million during the first nine months of 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 $1.50 for the third quarter of fiscal 2021 compared with $1.30 in the same quarter of the prior fiscal year and $5.12 for the first nine months of the current fiscal year compared with $5.27 for the same period of the prior fiscal year.
Adjusted EBITDA for the third fiscal quarter increased $4.0 million, or 7.9%, to $54.1 million, or 12.5% of net sales, compared to $50.1 million, or 12.7% of net sales, for the same quarter of the prior fiscal year. Adjusted EBITDA for the first nine months of the fiscal year was $176.0 million, or 13.9% of net sales, compared to $182.6 million, or 14.6% of net sales, for the same period of the prior fiscal year.
“Our teams delivered positive sales growth across all channels, achieved adjusted EBITDA margins of 12.5% and we paid down an additional $40.0 million of our term loan facility during the third fiscal quarter,” said Scott Culbreth, President and CEO. “Looking forward our focus will be on continuing to increase production to match a strong demand environment and mitigate inflationary pressures in material, logistics and labor.”
Cash provided by operating activities for the first nine months of the current fiscal year was $107.5 million and free cash flow totaled $74.3 million. As of January 31, 2021, the Company had $91.8 million of cash on hand with no term loan debt maturities until December 2022 plus access to $93.0 million of additional availability under its revolving credit facility. The Company paid down $80.0 million of its term loan facility during the first nine months of the current fiscal year.
For the full third quarter results, click here.
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 January 31, 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.
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Source: American Woodmark Corporation