WINCHESTER, Virginia (November 24, 2009) -- American Woodmark Corporation (NASDAQ: AMWD) today announced results for the second quarter of its fiscal year 2010, that ended on October 31, 2009.
Net sales declined 23% compared with the second quarter of the prior fiscal year to $104,068,000. Net sales declined 25% during the six-month period ended October 31, 2009, compared with the comparable period of the prior fiscal year. The Company’s sales declines in each of its sales channels approximated the overall rate of decline during the second quarter of fiscal year 2010.
The Company generated a net loss of ($5,279,000) or ($0.37) per diluted share during the second quarter of fiscal year 2010, compared with a net loss of ($481,000) or ($0.03) per diluted share in the second quarter of its prior fiscal year. The Company generated a net loss of ($11,685,000) or ($0.83) per diluted share in the six-month period ended October 31, 2009, compared with a net loss of ($324,000) or ($0.02) per diluted share in the comparable period of the prior fiscal year.
The Company previously announced several initiatives to reduce costs during the fourth quarter of its prior fiscal year, including the permanent closure of two manufacturing plants, the suspension of operations at a third plant, and a reduction-in-force of salaried personnel. The Company successfully completed these initiatives during the first quarter of fiscal year 2010. In connection with these initiatives, the Company recorded net-of-tax restructuring charges of ($146,000), or ($0.01) per diluted share during its second quarter, and ($1,742,000), or ($0.12) per diluted share, during the six-month period ending October 31, 2009. Exclusive of these charges, net loss for the second quarter of fiscal year 2010 was ($5,133,000), or ($0.36) per diluted share, and ($9,943,000) or ($0.70) per diluted share for the six-month period ended October 31, 2009.
Gross profit for the second quarter of fiscal year 2010 was 12.2% of net sales, compared with 14.4% in the second quarter of the prior fiscal year. Gross profit was 12.0% of net sales during the first six months of fiscal year 2010, compared with 15.2% 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 direct labor and manufacturing overhead costs stemming from the impact of lower sales volumes. Partly offsetting these adverse factors were favorable impacts from lower fuel and material costs, as well as reduced manufacturing overhead costs related to the plant closures.
Selling, general and administrative costs were 20.1% of net sales in the second quarter of fiscal year 2010, up from 15.2% of net sales in the second quarter of the prior fiscal year. Selling, general and administrative costs were 19.7% of net sales in the first six months of fiscal year 2010, up from 15.6% in the comparable period of the prior fiscal year. The Company’s operating expense ratio increased during fiscal year 2010 due primarily to the reduction in sales and to the absence of a credit that occurred in the prior year relating to a terminated retiree health care plan.
