Exhibit 99.1
News Release
P. O. Box 1980
Winchester, VA 22604-8090
FOR IMMEDIATE RELEASE
Contact: Glenn Eanes
Treasurer
540-665-9100
AMERICAN WOODMARK CORPORATION
ANNOUNCES THIRD QUARTER
DECLARES CASH DIVIDEND
Winchester, Virginia (February 24, 2004) — American Woodmark Corporation (Nasdaq/NM: AMWD) today announced results for the third quarter ended January 31, 2004.
Net sales increased 19.2% from the prior year to $162,859,000. Sales growth in the third quarter was the result of continued growth in both the remodel and new construction sectors across all channels of distribution.
Net income for the quarter was $7,650,000 or $0.92 per diluted share, compared to $6,757,000 or $0.80 per diluted share, in the prior year. Net income was within previously released forward guidance of $0.90 to $0.95 per diluted share.
Gross profit of 20.8% was down from 22.2% the previous year due primarily to increases in product material costs and employee benefit expenses. Higher material costs were due to increased raw material prices, particularly hardwood lumber, particle board and plywood. Employee benefit expenses increased due to additional pension and medical expenses. The increases in material costs and benefit expenses were partly offset by improved labor efficiencies, lower freight expense and leverage on overhead costs with higher volume.
Selling, general and administrative cost decreased from 14.0% of net sales to 13.0% primarily due to cost management efforts and leverage created by higher volume.
Looking forward to the fourth fiscal quarter, ending April 30, 2004, the Company anticipates an increase in net sales of 15% to 20% over the prior year. The Company expects to experience solid growth in both the new construction and the remodel sectors. Margins should continue to improve from the third fiscal quarter of the current year due to improved productivity and increased capacity utilization. Based on higher volume and improved gross profit, the Company believes that net income will be in the range of $1.00 to $1.05 per diluted share.
The Board of Directors has approved a quarterly cash dividend of $0.05 per share to be paid on March 22, 2004, to shareholders of record on March 8, 2004.
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 home manufacturers and through a network of independent distributors. The Company presently operates thirteen manufacturing facilities and ten service centers across the country.
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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AMERICAN WOODMARK CORPORATION
Unaudited Financial Highlights
(in thousands, except share data)
Operating Results
Three Months Ended January 31 | Nine Months Ended January 31 | |||||||||||
2004 | 2003 | 2004 | 2003 | |||||||||
Net Sales | $ | 162,859 | $ | 136,684 | $ | 487,186 | $ | 419,125 | ||||
Cost of Sales & Distribution |
| 129,054 |
| 106,314 |
| 385,014 |
| 317,709 | ||||
Gross Profit |
| 33,805 |
| 30,370 |
| 102,172 |
| 101,416 | ||||
Sales & Marketing Expense | 14,447 | 13,309 | 44,886 | 41,044 | ||||||||
G&A Expense | 6,789 | 5,764 | 18,552 | 18,671 | ||||||||
Operating Income | 12,569 | 11,297 | 38,734 | 41,701 | ||||||||
Interest & Other Income/Expense | 138 | 189 | 471 | 192 | ||||||||
Income Tax Expense | 4,781 | 4,351 | 14,933 | 16,359 | ||||||||
Net Income | $ | 7,650 | $ | 6,757 | $ | 23,330 | $ | 25,150 | ||||
Earnings Per Share: | ||||||||||||
Weighted Average Shares Outstanding – Diluted | 8,325,616 | 8,399,513 | 8,322,680 | 8,438,568 | ||||||||
Earnings Per Diluted Share | $ | 0.92 | $ | 0.80 | $ | 2.80 | $ | 2.98 | ||||
Balance Sheet
January 31 2004 | April 30 2003 | |||||
Cash & Cash Equivalents | $ | 27,820 | $ | 15,512 | ||
Customer Receivables | 47,606 | 40,615 | ||||
Inventories | 49,291 | 44,986 | ||||
Other Current Assets | 9,909 | 11,239 | ||||
Total Current Assets | 134,626 | 112,352 | ||||
Property, Plant & Equipment | 136,405 | 136,551 | ||||
Other Assets | 19,044 | 13,825 | ||||
Total Assets | $ | 290,075 | $ | 262,728 | ||
Current Portion – Long-Term Debt | $ | 949 | $ | 932 | ||
Accounts Payable & Accrued Expenses | 67,174 | 62,866 | ||||
Total Current Liabilities | 68,123 | 63,798 | ||||
Long-Term Debt | 18,096 | 19,016 | ||||
Other Liabilities | 21,730 | 19,815 | ||||
Total Liabilities | 107,949 | 102,629 | ||||
Stockholders’ Equity | 182,126 | 160,099 | ||||
Total Liabilities & Stockholders’ Equity | $ | 290,075 | $ | 262,728 | ||