Exhibit 99.1
News Release
[LOGO] AMERICAN WOODMARK®
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 FIRST QUARTER
Winchester, Virginia (August 25, 2003) — American Woodmark Corporation (Nasdaq/NM: AMWD) today announced results for the first quarter ended July 31, 2003.
Net sales increased 12.7% over the prior year to a record $154,932,000. The Company had previously issued forward guidance that anticipated growth of 8% to 10%. Actual sales performance was the result of better than expected demand across all channels of distribution.
Gross profit of 21.8% was down from 26.0% the previous year and from the Company’s forward guidance of 23.0%. The decline from the Company’s guidance was driven primarily by a shift in product mix and by variances in regional demand. Total shipments included a higher percentage of products at lower price points as the Company completed a roll-out of the in-stock retail program in over 300 new and retrofit stores. The decline from the previous year was due to the shift in product mix, higher pension and benefit costs, increased distribution expenses caused by extended shipping lanes required to meet the geographic mix of incoming demand and the overhead costs associated with new capacity.
Selling, general and administrative costs decreased to 13.8% of net sales from 14.9% the previous year due to the Company’s performance-based employee incentive plans.
Net income for the quarter was $7,453,000, or $0.90 per diluted share, compared with $9,254,000, or $1.09 per diluted share, in the same period of the prior year.
Looking forward to the second fiscal quarter ending October 31, 2003, the Company anticipates healthy demand in both the new construction and remodeling markets. The Company currently expects net sales will increase by 10% to 15% over the prior year. The Company expects gross margins to improve to 23% based on a more normalized product and channel mix. With the higher volumes and improving gross margins, the Company currently believes that net income for the second quarter 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 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 | |||||||
July 31 2003 | July 31 2002 | ||||||
Net Sales | $ | 154,932 | $ | 137,468 | |||
Cost of Sales & Distribution | 121,099 | 101,704 | |||||
Gross Profit | 33,833 | 35,764 | |||||
Sales & Marketing Expense | 15,383 | 13,746 | |||||
G&A Expense | 5,944 | 6,764 | |||||
Operating Income | 12,506 | 15,254 | |||||
Interest & Other Income/Expense | 228 | (41 | ) | ||||
Income Tax Expense | 4,825 | 6,041 | |||||
Net Income | $ | 7,453 | $ | 9,254 | |||
Earnings Per Share: | |||||||
Weighted Average Shares Outstanding – Diluted | 8,298,405 | 8,512,162 | |||||
Diluted Earnings Per Share | $ | 0.90 | $ | 1.09 | |||
Balance Sheet | |||||||
July 31 2003 | April 30 2003 | ||||||
Cash & Cash Equivalents | $ | 19,115 | $ | 15,512 | |||
Customer Receivables | 48,055 | 40,615 | |||||
Inventories | 47,591 | 44,986 | |||||
Other Current Assets | 8,570 | 11,239 | |||||
Total Current Assets | 123,331 | 112,352 | |||||
Property, Plant & Equipment | 135,314 | 136,551 | |||||
Other Assets | 15,381 | 13,825 | |||||
Total Assets | $ | 274,026 | $ | 262,728 | |||
Current Portion – Long-Term Debt | $ | 930 | $ | 932 | |||
Accounts Payable & Accrued Expenses | 65,366 | 62,866 | |||||
Total Current Liabilities | 66,296 | 63,798 | |||||
Long-Term Debt | 18,990 | 19,016 | |||||
Other Liabilities | 21,236 | 19,815 | |||||
Total Liabilities | 106,522 | 102,629 | |||||
Stockholders’ Equity | 167,504 | 160,099 | |||||
Total Liabilities & Stockholders’ Equity | $ | 274,026 | $ | 262,728 | |||
