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 THIRD QUARTER RESULTS
________________________________________________________________________
WINCHESTER, Virginia (February 19, 2009) -- American Woodmark Corporation (NASDAQ: AMWD) today announced results for the third quarter of its fiscal year 2009, ended January 31, 2009.
Net sales declined 1% as compared with the third quarter of the prior fiscal year, to $131,153,000. Net sales declined 12% during the nine-month period ended January 31, 2009, compared with the comparable period of the prior fiscal year. The Company experienced an increase in its remodeling sales during the three-month period, as the Company benefited from consumers rotating to the Company’s value price point, driven in part by retail promotional incentives. The Company experienced continued weakness in its new construction sales, which declined to a greater extent than earlier in the Company’s fiscal year.
The Company generated net income of $23,000, or $0.00 per diluted share during its third quarter of fiscal year 2009, compared with a net loss of $2.0 million, or $0.14 per diluted share, in the third quarter of the prior fiscal year. The Company generated a net loss of $301,000, or $0.02 per diluted share during the nine-month period ended January 31, 2009, compared with net income of $4,235,000, or $0.29 per diluted share, during the comparable nine-month period of the prior fiscal year.
Gross profit for the third quarter of fiscal year 2009 was 15.5% of net sales, compared with 13.3% of net sales in the third quarter of the prior fiscal year. Gross profit was 15.3% of net sales during the first nine months of fiscal year 2009, as compared with 17.4% of net sales during the comparable period of the prior fiscal year. The improvement in gross profit margin during the three-month period primarily reflected the absence of severance and separation costs that aggregated 1.0% of net sales in the prior year’s third quarter, as well as lower headcount-related and fuel costs. The beneficial impact of these improvements was partially offset by the continued inflationary impact upon materials costs. The decline in gross margin during the nine-month period 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 15.9% of net sales in the third quarter of fiscal 2009, down from 16.9% of net sales in the third quarter of the prior fiscal year. Selling, general and administrative costs were 15.7% of net sales in the first nine months of fiscal year 2009, down from 16.5% in the comparable period of the prior fiscal year. The Company’s operating expenses during the third quarter of fiscal year 2009 continued to be lower than in the prior fiscal year, driven primarily by reductions in headcount and other volume-related costs.
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The Company generated free cash flow of $5.3 million in the third 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.
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 January 31
| | | Nine Months Ended January 31
|
| | | 2009
| | 2008
| | | 2009
| | 2008
|
Net Sales | | $ | 131,153 | | | $ | 132,837 | | | $ | 405,245 | | | $ | 459,124 | |
Cost of Sales & Distribution | | | 110,768 | | | | 115,125 | | | | 343,332 | | | | 379,393 | |
| | | | | | | | |
| | | | | | | | |
Gross Profit | | | 20,385 | | | | 17,712 | | | | 61,913 | | | | 79,731 | |
Sales & Marketing Expense | | | 14,759 | | | | 16,547 | | | | 45,450 | | | | 55,290 | |
G&A Expense | | | 6,118 | | | | 5,931 | | | | 18,094 | | | | 20,457 | |
| | | | | | | | |
| | | | | | | | |
Operating Income (Loss) | | | (492 | ) | | | (4,766 | ) | | | (1,631 | ) | | | 3,984 | |
Interest & Other (Income) Expense | | | (156 | ) | | | (353 | ) | | | (745 | ) | | | (1,212 | ) |
Income Tax Expense (Benefit) | | | (359 | ) | | | (2,392 | ) | | | (585 | ) | | | 961 | |
| | | | | | | | |
| | | | | | | | |
Net Income (Loss) | | $ | 23 | | | $ | (2,021 | ) | | $ | (301 | ) | | $ | 4,235 | |
| | | | | | | |
| | | | | | |
Earnings Per Share: | | | | | | | | | | | | | |
Weighted Average Shares Outstanding – Diluted | | | 14,055,327 | | | 14,368,723 | | | | 14,049,549 | | | 14,644,859 |
Earnings (Loss) Per Diluted Share | | $ | 0.00 | | $ | (0.14) | | | $ | (0.02) | | $ | 0.29 |
|
|
Balance Sheet |
| | |
| | | January 31 2009
| | April 30 2008
| |
Cash & Cash Equivalents | | $ | 64,685 | | $ | 56,932 | |
Customer Receivables | | | 33,682 | | | 27,744 | |
Inventories | | | 39,011 | | | 46,981 | |
Other Current Assets | | | 10,491 | | | 11,731 | |
| | | | | | | |
|
Total Current Assets | | | 147,869 | | | 143,388 | |
Property, Plant & Equipment | | | 136,988 | | | 150,840 | |
Other Assets | | | 21,147 | | | 20,571 | |
| | | | | | | |
|
Total Assets | | $ | 306,004 | | $ | 314,799 | |
| | | | | | | |
|
Current Portion – Long-Term Debt | | $ | 854 | | $ | 864 | |
Accounts Payable & Accrued Expenses | | | 54,538 | | | 55,170 | |
| | | | | | | |
|
Total Current Liabilities | | | 55,392 | | | 56,034 | |
Long-Term Debt | | | 25,334 | | | 26,043 | |
Other Liabilities | | | 12,126 | | | 18,088 | |
| | | | | | | |
|
Total Liabilities | | | 92,852 | | | 100,165 | |
Stockholders’ Equity | | | 213,152 | | | 214,634 | |
| | | | | | | |
|
Total Liabilities & Stockholders’ Equity | | $ | 306,004 | | $ | 314,799 | |
| | | | | | | |
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AMERICAN WOODMARK CORPORATION
Unaudited Financial Highlights
(in thousands, except share data)
Condensed Consolidated Statements of Cash Flows
| | | Nine Months Ended
October 31
| |
| | 2009
| | 2008
| |
Net Cash Provided by Operating Activities | | $ | 26,009 | | | $ | 39,316 | |
Net Cash Used by Investing Activities | | | (11,196 | ) | | | (15,472 | ) |
Free Cash Flow | | | 14,813 | | | | 23,844 | |
| | | | | | | | |
Net Cash Used by Financing Activities | | | (7,060 | ) | | | (26,538 | ) |
| | | | | | | |
|
Net Increase/(Decrease) in Cash and Cash Equivalents | | | 7,753 | | | | (2,694 | ) |
Cash and Cash Equivalents, Beginning of Period | | | 56,932 | | | | 58,125 | |
| | | | | | | |
|
Cash and Cash Equivalent, End of Period | | $ | 64,685 | | | $ | 55,431 | |
| | | | | | | |
|
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