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Section 1: 8-K (8-K)

Document
 
 
 
 
 
 
 
 
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported):
December 1, 2017
 
 
American Woodmark Corporation
(Exact name of registrant as specified in its charter)
 
 
Virginia
 
000-14798
 
54-1138147
(State or other jurisdiction
 
(Commission
 
(IRS Employer
of incorporation)
 
File Number)
 
Identification No.)
 
3102 Shawnee Drive, Winchester, Virginia
 
22601
(Address of principal executive offices)
 
(Zip Code)
 
Registrant’s telephone number, including area code:
(540) 665-9100
 
Not applicable
(Former name or former address, if changed since last report)
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))




American Woodmark Corporation


ITEM 2.02    RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On December 1, 2017, the Registrant issued a press release announcing results for its second quarter of fiscal year 2018 ended October 31, 2017. The press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.

ITEM 9.01    FINANCIAL STATEMENTS AND EXHIBITS

(d)    Exhibits

Exhibit 99.1Registrant’s Press Release dated December 1, 2017.





SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


AMERICAN WOODMARK CORPORATION
(Registrant)



 
 
/s/ M. SCOTT CULBRETH
 
/s/ S. CARY DUNSTON
 
 
 
M. Scott Culbreth
 
S. Cary Dunston
Senior Vice President and Chief Financial Officer
 
President & Chief Executive Officer
 
 
 
Date: December 1, 2017
 
Date: December 1, 2017
Signing on behalf of the registrant and as principal financial officer
 
Signing on behalf of the registrant and as principal executive officer
 
 
 



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Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit
AMWD Announces Second Quarter Results
Page 1
December 1, 2017



Exhibit 99.1

391307835_awc_logoa03a02a01a01a11.jpg
 
 
 
P. O. Box 1980
 
Winchester, VA 22604-8090

 



Contact:
Kevin Dunnigan
Assistant Treasurer
540-665-9100




AMERICAN WOODMARK CORPORATION ANNOUNCES SECOND QUARTER RESULTS

WINCHESTER, Virginia (December 1, 2017) -- American Woodmark Corporation (NASDAQ: AMWD) today announced results for its second fiscal quarter ended October 31, 2017.

Second Fiscal Quarter Ended October 31, 2017 Results

Net sales for the second fiscal quarter increased 4% to $274.8 million compared with the same quarter of the prior fiscal year. Net sales for the first six months of the current fiscal year increased 6% to $551.6 million from the comparable period of the prior fiscal year. The Company experienced growth in both the new construction and dealer channels during the second quarter of fiscal year 2018.

Net income was $19.8 million ($1.21 per diluted share) for the second quarter of the current fiscal year compared with $17.6 million ($1.07 per diluted share) in the same quarter of the prior fiscal year. The Company was negatively impacted $0.02 per diluted share in the quarter due to a reduction in the domestic production deduction benefit resulting from discretionary pension contributions approved during the quarter. Net income for the first six months of the current fiscal year was $42.0 million ($2.58 per diluted share) compared with $39.3 million ($2.39 per diluted share) for the same period of the prior fiscal year.

Gross profit for the second quarter of the current fiscal year was 20.9% of net sales compared with 21.3% in the same quarter of the prior fiscal year. Gross profit for the first six months of the current fiscal year was 21.0% of net sales compared with 22.1% for the same period in the prior year. Gross profit in the current quarter was impacted by higher transportation costs and material inflation. Gross profit for the first six months of the current fiscal year was unfavorably impacted by higher transportation costs, material inflation and higher healthcare costs.

Selling, general and administrative costs for the second quarter of the fiscal year 2018 were 9.7% of net sales compared with 10.5% in the same quarter of the prior fiscal year. Selling, general and administrative costs for the first six months of the current fiscal year were 9.8% of net sales compared with 10.5% for the same period in the prior year. The improvement in the Company’s operating expense ratio in the current quarter and the first six months of the current fiscal year was driven by favorable leverage from increased sales, lower incentive compensation costs and on-going expense control.

The Company generated net cash from operating activities of $41.8 million during the first half of fiscal year 2018 compared with $40.1 million during the same period in the prior year. The increase in the Company’s cash from operating activities was driven primarily by lower increases in customer receivables and higher operating profitability which was partially offset by higher inventories to support increased sales and lower increases in accounts payable. Net cash used by investing activities was $31.1 million during the first half of the current fiscal year compared with $50.4 million during the same period of the prior year due to a $28.5 million reduced investment in certificates of deposit which was partially offset by increased investment in property, plant and equipment. Net cash used by financing activities of $25.1 million increased $16.6 million during the first half of the current fiscal year compared to the same period in the prior year as the company repurchased 251,241 shares of common stock at

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AMWD Announces Second Quarter Results
Page 2
December 1, 2017



a cost of $23.5 million, a $13.1 million increase from the prior year, and proceeds from the exercise of stock options decreased $1.0 million.

Agreement to Acquire RSI Home Products, Inc.

Earlier today American Woodmark Corporation publicly announced that it has entered into a definitive agreement and plan of merger with RSI Home Products, Inc. (“RSI”), a leading manufacturer of kitchen and bath cabinetry and home storage products. The Company will host a conference call with investors, December 1, 2017 at 11:00 EST to discuss the second quarter results and the agreement to acquire RSI. The live broadcast of American Woodmark Corporation's conference call will be available on-line at: www.americanwoodmark.com on Friday, December 1, beginning at 11:00 a.m. (Eastern Time). The online replay will follow immediately and continue for 30 days. A telephonic replay will be available from 2:00 p.m. (Eastern Time) December 1 through 2:00 p.m. (Eastern Time) December 12, by dialing 719-457-0820 and entering passcode 9813605. A presentation, which will accompany the call, will be availbale at www.americanwoodmark.com and will remain available after the call.

About American Woodmark Corporation

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 nine manufacturing facilities and seven service centers across the country.

Forward-Looking Statements

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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AMWD Announces Second Quarter Results
Page 3
December 1, 2017



AMERICAN WOODMARK CORPORATION










Unaudited Financial Highlights










(in thousands, except share data)










Operating Results













Three Months Ended

Six Months Ended



October 31

October 31



2017

2016

2017

2016










Net sales

$
274,769


$
264,076


$
551,596


$
522,226

Cost of sales & distribution

217,434


207,924


435,767


406,757


Gross profit

57,335


56,152


115,829


115,469

Sales & marketing expense

18,077


17,146


36,230


33,609

General & administrative expense

8,443


10,675


17,950


21,607


Operating income

30,815


28,331


61,649


60,253

Interest expense & other income

(648
)

(99
)

(1,186
)

(137
)
Income tax expense

11,708


10,793


20,799


21,092


Net income

$
19,755


$
17,637


$
42,036


$
39,298











Earnings Per Share:








Weighted average shares outstanding - diluted

16,268,078


16,440,321


16,319,224


16,410,652











Income per diluted share

$
1.21


$
1.07


$
2.58


$
2.39




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AMWD Announces Second Quarter Results
Page 4
December 1, 2017



Condensed Consolidated Balance Sheet
(Unaudited)



October 31

 April 30



2017

2017






Cash & cash equivalents

$
162,545


$
176,978

Investments - certificates of deposit

57,500


51,750

Customer receivables

66,211


63,115

Inventories

46,723


42,859

Other current assets

9,189


4,526


Total current assets

342,168


339,228

Property, plant & equipment

121,732


107,933

Investments - certificates of deposit
 
24,250

 
20,500

Other assets

25,155


33,612


Total assets

$
513,305


$
501,273







Current portion - long-term debt

$
1,710


$
1,598

Accounts payable & accrued expenses

98,500


99,899


Total current liabilities

100,210


101,497

Long-term debt

16,087


15,279

Other liabilities

21,865


32,048


Total liabilities

138,162


148,824

Stockholders' equity

375,143


352,449


Total liabilities & stockholders' equity

$
513,305


$
501,273


Condensed Consolidated Statements of Cash Flows
(Unaudited)



Six Months Ended



October 31



2017

2016






Net cash provided by operating activities

$
41,838


$
40,146

Net cash used by investing activities

(31,136
)

(50,417
)
Net cash used by financing activities

(25,135
)

(8,548
)
Net decrease in cash and cash equivalents

(14,433
)

(18,819
)
Cash and cash equivalents, beginning of period

176,978


174,463







Cash and cash equivalents, end of period

$
162,545


$
155,644




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