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 FOURTH QUARTER
WINCHESTER, Virginia (June 9, 2004) — American Woodmark Corporation (Nasdaq/NM: AMWD) today announced results for the fourth quarter ended April 30, 2004.
Net sales increased 25% from the prior year to $180,361,000. The Company had previously issued forward guidance that anticipated growth of 15% to 20%. The stronger than expected demand in the fourth quarter was due to higher than forecast orders in the remodeling sector and the effect of new construction starts in excess of 2.0 million annualized units.
Net income for the quarter was $8,378,000, or $1.00 per diluted share, compared to $7,554,000, or $0.91 per diluted share, in the prior year. Net income was within previously released forward guidance of $1.00 to $1.05 per diluted share.
Gross profit of 19.6% was down from 21.7% 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 leverage on freight expense and overhead cost with higher volume.
Selling and marketing expense decreased from 9.8% to 8.2% of net sales due to cost management efforts and leverage created by higher volume. General and administrative cost increased from 3.2% of net sales to 3.8% due to cost associated with the Company’s pay-for-performance employee incentive plans.
For the fiscal year, net sales were $667,547,000, an increase of 18% over fiscal 2003. The Company’s gross margin of 20.6% in fiscal 2004 compared to 23.6% in the prior year. Net income for fiscal 2004 was $31,707,000 or $3.80 per diluted share compared with $32,704,000 or $3.89 per diluted share for the prior year.
Looking forward to the first fiscal quarter ending July 31, 2004, the Company anticipates an increase in net sales of 15% to 20% over the prior year driven by solid growth in both the new construction and the remodel sectors. The Company believes that net income will be in the range of $1.00 to $1.05 per diluted share.
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 April 30 | Twelve Months Ended April 30 | ||||||||||||
| 2004 | 2003 | 2004 | 2003 | ||||||||||
Net Sales | $ | 180,361 | $ | 144,341 | $ | 667,547 | $ | 563,466 | |||||
Cost of Sales & Distribution | 145,024 | 113,016 | 530,038 | 430,725 | |||||||||
Gross Profit | 35,337 | 31,325 | 137,509 | 132,741 | |||||||||
Sales & Marketing Expense | 14,767 | 14,113 | 59,653 | 55,157 | |||||||||
G&A Expense | 6,900 | 4,652 | 25,452 | 23,323 | |||||||||
Operating Income | 13,670 | 12,560 | 52,404 | 54,261 | |||||||||
Interest & Other (Income) Expense | (64) | 176 | 408 | 368 | |||||||||
Income Tax Expense | 5,356 | 4,830 | 20,289 | 21,189 | |||||||||
Net Income | $ | 8,378 | $ | 7,554 | $ | 31,707 | $ | 32,704 | |||||
Earnings Per Share: | |||||||||||||
Weighted Average Shares Outstanding – Diluted | 8,371,640 | 8,282,166 | 8,333,962 | 8,400,174 | |||||||||
Earnings Per Diluted Share | $ | 1.00 | $ | 0.91 | $ | 3.80 | $ | 3.89 | |||||
Balance Sheet
April 30 2004 | April 30 2003 | |||||
Cash & Cash Equivalents | $ | 29,432 | $ | 15,512 | ||
Customer Receivables | 48,286 | 40,615 | ||||
Inventories | 54,921 | 44,986 | ||||
Other Current Assets | 12,019 | 11,239 | ||||
Total Current Assets | 144,658 | 112,352 | ||||
Property, Plant & Equipment | 143,136 | 136,551 | ||||
Other Assets | 19,257 | 13,825 | ||||
Total Assets | $ | 307,051 | $ | 262,728 | ||
Current Portion – Long-Term Debt | $ | 988 | $ | 932 | ||
Accounts Payable & Accrued Expenses | 74,332 | 62,866 | ||||
Total Current Liabilities | 75,320 | 63,798 | ||||
Long-Term Debt | 18,028 | 19,016 | ||||
Other Liabilities | 20,558 | 19,815 | ||||
Total Liabilities | 113,906 | 102,629 | ||||
Stockholders’ Equity | 193,145 | 160,099 | ||||
Total Liabilities & Stockholders’ Equity | $ | 307,051 | $ | 262,728 | ||