Exhibit 99.1
News Release
®
P. O. Box 1980
Winchester, VA 22604-8090
FOR IMMEDIATE RELEASE
Contact: Glenn Eanes
Vice President and Treasurer
540-665-9100
AMERICAN WOODMARK CORPORATION
ANNOUNCES SECOND QUARTER RESULTS
________________________________________________________________________
Cash Dividend Declared
WINCHESTER, Virginia (November 25, 2008) -- American Woodmark Corporation (NASDAQ: AMWD) today announced results for the second quarter of its fiscal year 2009, that ended on October 31, 2008.
Net sales declined 16% as compared with the second quarter of the prior fiscal year, to $134,939,000. Net sales also declined 16% during the six-month period ended October 31, 2008, compared with the comparable period of the prior fiscal year. The Company experienced remodeling sales declines in the low teens during both the three and six-month periods, and new construction sales declines approximating 20% in both periods as compared with prior year.
The Company generated a net loss of $481,000, or $0.03 per diluted share during its second quarter of fiscal year 2009, compared with net income of $1.2 million, or $0.08 per diluted share, in the second quarter of the prior fiscal year. The Company generated a net loss of $324,000, or $0.02 per diluted share during the six-month period ended October 31, 2008, compared with net income of $6,256,000, or $0.42 per diluted share, during the comparable six-month period of the prior fiscal year.
Gross profit for the second quarter of fiscal year 2009 was 14.4% of net sales, compared with 17.3% of net sales in the second quarter of the prior fiscal year. Gross profit was 15.2% of net sales during the first six months of fiscal year 2009, as compared with 19.0% of net sales during the comparable period of the prior fiscal year. The decline in gross profit margin during the three and six-month periods primarily reflected the unfavorable impact of inefficiencies in overhead and freight costs stemming from lower sales volumes, as well as the impact of higher fuel and petroleum-related costs upon both freight and materials costs.
Selling, general and administrative costs were 15.2% of net sales in the second quarter of fiscal 2009, down from 16.5% of net sales in the second quarter of the prior fiscal year. Selling, general and administrative costs were 15.6% of net sales in the first six months of fiscal year 2009, down from 16.3% in the comparable period of the prior fiscal year. The Company’s operating expenses during the second quarter of fiscal year 2009 were $5.8 million less than in the comparable period of the prior fiscal year, driven primarily by reductions in bad debt expense, headcount and other volume-related costs.
The Company generated free cash flow of $2.1 million in the second quarter of fiscal 2009 (defined as cash provided by operating activities net of cash used for investing activities), and used this cash to return $1.3 million to its shareholders primarily through maintenance of the Company’s regular quarterly dividend. The Company generated free cash flow of $2.4 million in the prior year’s second quarter.
The Company announced a quarterly cash dividend of $0.09 per share to be paid on December 22, 2008, to shareholders of record on December 8, 2008.
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 fourteen manufacturing facilities and nine 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 October 31
| | | Six Months Ended October 31
|
| | | 2008
| | 2007
| | | 2008
| | 2007
|
Net Sales | | $ | 134,939 | | | $ | 160,231 | | | $ | 274,092 | | | $ | 326,287 | |
Cost of Sales & Distribution | | | 115,471 | | | | 132,522 | | | | 232,564 | | | | 264,269 | |
| | | | | | | | |
| | | | | | | | |
Gross Profit | | | 19,468 | | | | 27,709 | | | | 41,528 | | | | 62,018 | |
Sales & Marketing Expense | | | 15,122 | | | | 18,525 | | | | 30,691 | | | | 38,743 | |
G&A Expense | | | 5,435 | | | | 7,859 | | | | 11,976 | | | | 14,526 | |
| | | | | | | | |
| | | | | | | | |
Operating Income (Loss) | | | (1,089 | ) | | | 1,325 | | | | (1,139 | ) | | | 8,749 | |
Interest & Other (Income) Expense | | | (328 | ) | | | (349 | ) | | | (589 | ) | | | (860 | ) |
Income Tax Expense (Benefit) | | | (280 | ) | | | 522 | | | | (226 | ) | | | 3,353 | |
| | | | | | | | |
| | | | | | | | |
Net Income (Loss) | | $ | (481 | ) | | $ | 1,152 | | | $ | (324 | ) | | $ | 6,256 | |
| | | | | | | |
| | | | | | |
Earnings Per Share: | | | | | | | | | | | | | |
Weighted Average Shares Outstanding – Diluted | | | 14,031,376 | | | 14,483,283 | | | | 14,050,490 | | | 14,774,162 |
Earnings (Loss) Per Diluted Share | | $ | (0.03) | | $ | 0.08 | | | $ | (0.02) | | $ | 0.42 |
|
Balance Sheet |
| | |
| | | October 31 2008
| | April 30 2008
| |
Cash & Cash Equivalents | | $ | 61,055 | | $ | 56,932 | |
Customer Receivables | | | 32,200 | | | 27,744 | |
Inventories | | | 41,236 | | | 46,981 | |
Other Current Assets | | | 10,188 | | | 11,731 | |
| | | | | | | |
|
Total Current Assets | | | 144,679 | | | 143,388 | |
Property, Plant & Equipment | | | 141,960 | | | 150,840 | |
Other Assets | | | 20,045 | | | 20,571 | |
| | | | | | | |
|
Total Assets | | $ | 306,684 | | $ | 314,799 | |
| | | | | | | |
|
Current Portion – Long-Term Debt | | $ | 841 | | $ | 864 | |
Accounts Payable & Accrued Expenses | | | 53,013 | | | 55,170 | |
| | | | | | | |
|
Total Current Liabilities | | | 53,854 | | | 56,034 | |
Long-Term Debt | | | 25,751 | | | 26,043 | |
Other Liabilities | | | 14,700 | | | 18,088 | |
| | | | | | | |
|
Total Liabilities | | | 94,305 | | | 100,165 | |
Stockholders’ Equity | | | 212,379 | | | 214,634 | |
| | | | | | | |
|
Total Liabilities & Stockholders’ Equity | | $ | 306,684 | | $ | 314,799 | |
| | | | | | | |
|
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AMERICAN WOODMARK CORPORATION
Unaudited Financial Highlights
(in thousands, except share data)
Condensed Consolidated Statements of Cash Flows
| | | Six Months Ended
October 31
| |
| | 2008
| | 2007
| |
Net Cash Provided by Operating Activities | | $ | 16,506 | | | $ | 18,800 | |
Net Cash Used by Investing Activities | | | (6,990 | ) | | | (10,643 | ) |
Free Cash Flow | | | 9,516 | | | | 8,157 | |
| | | | | | | | |
Net Cash Used by Financing Activities | | | (5,393 | ) | | | (20,080 | ) |
| | | | | | | |
|
Net Increase/(Decrease) in Cash and Cash Equivalents | | | 4,123 | | | | (11,923 | ) |
Cash and Cash Equivalents, Beginning of Period | | | 56,932 | | | | 58,125 | |
| | | | | | | |
|
Cash and Cash Equivalent, End of Period | | $ | 61,055 | | | $ | 46,202 | |
| | | | | | | |
|
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