American Woodmark Corporation Announces Record Fourth Quarter.Business Editors WINCHESTER Winchester, town, England Winchester (wĭn`chĭstər), town (1991 pop. 34,127) and district, county seat of Hampshire, S central England. , Va.--(BUSINESS WIRE)--June 26, 2001 American Woodmark American Woodmark is a fully integrated, stock and semi-custom, just-in-time cabinet manufacturer, headquartered in Winchester, Virginia. The company operates 15 manufacturing facilities, in Arizona, Georgia, Indiana, Kentucky, Maryland, Minnesota, Oklahoma, Tennessee, Virginia, Corporation (Nasdaq/NM:AMWD) today announced results for the fourth quarter ended April 30, 2001. Net income for the quarter increased 119% to a record $6,990,000 from $3,191,000 the prior year. Net income per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share increased to $0.85 from $0.39 in fiscal 2000. Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight increased 10% from the prior year to a record $109,575,000. Net sales increased 12% prior to the impact from the required adoption of Staff Accounting Bulletin No. 101, "Revenue Recognition in Financial Statements," during the fourth quarter of fiscal 2001. Excluding the impact of the Company's exit from the custom cabinet and original equipment markets since the prior year, net sales grew 15%. Higher sales were the result of continued growth with the Company's strategic partners in all channels of distribution. Current and prior year net sales, gross margin and selling, general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. have been adjusted to reflect the Company's required adoption of the Financial Accounting Standards Board's Emerging Issues Task Force Issue No. 00-22, "Accounting for Points and Certain Other Time-Based or Volume-Based Sales Incentive Noun 1. sales incentive - remuneration offered to a salesperson for exceeding some predetermined sales goal bonus, incentive - an additional payment (or other remuneration) to employees as a means of increasing output Offers and Offers for Free Products or Services to be Delivered in the Future." Reported gross margins improved to 28.2% from 24.9% the previous year as the Company gained leverage on all the significant components of cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold . Material costs were lower as the Company was able to negotiate price reductions from suppliers on certain commodities as a result of a short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. decline in general market demand for these materials. Labor costs improved due to increases in productivity. Delivery and overhead costs overhead costs see fixed costs. improved due to leverage generated by increased capacity utilization Capacity Utilization measures the rate at which a firm makes use of their capital productive capacities, such as factories and machinery. Capacity Utilization generally rises when the economy is healthy and falls when demand softens. . Selling, general and administrative costs increased primarily due to costs relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company's employee incentive plans and customer promotions. For the fiscal year, net sales were $416,668,000, an increase of 10% from fiscal 2000. The Company's gross margins improved to 25.3% in fiscal 2001 from 24.3% in the prior year. Net income for fiscal 2001 was $17,420,000, or $2.14 per diluted share, compared with $14,467,000, or $1.79 per diluted share, for the prior year. Excluding the cumulative effect of adopting SAB SAB Spontaneous abortion. See Abortion. 101, net income was $19,003,000, or $2.34 per share. The economic outlook for the period covered by the Company's first fiscal quarter ending July July: see month. 31, 2001, remains uncertain. The Company expects new construction in relevant markets to remain solid. Remodeling remodeling /re·mod·el·ing/ (re-mod´el-ing) reorganization or renovation of an old structure. bone remodeling activity, however, is likely to experience both strength and weakness by geographical ge·o·graph·ic also ge·o·graph·i·cal adj. 1. Of or relating to geography. 2. Concerning the topography of a specific region. ge region. Based on anticipated market activity and the Company's market position, the Company currently expects net sales for the first fiscal quarter ending July 31, 2001, to increase approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 15% over the prior year. Primarily as the result of higher utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be of capacity, the Company anticipates net income of $0.85 to $0.90 per diluted share for the first quarter. 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 home manufacturers and through a network of independent distributors. The Company presently operates eleven manufacturing facilities and five service centers across the country. Safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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 Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. 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.
AMERICAN WOODMARK CORPORATION
Unaudited Financial Highlights
(in thousands, except share data)
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Operating Results
Three Months Ended
April 30
-----------------------
2001 2000
---------- ----------
Net Sales $109,575 $99,268
Cost of Sales & Distribution 78,649 74,512
---------- ----------
Gross Profit 30,926 24,756
Restructuring costs -- 1,530
SG&A Expense 19,733 17,367
---------- ----------
Operating Income 11,193 5,859
Interest & Other Income/Expense 443 206
Income Tax Expense 3,760 2,462
---------- ----------
Income before cumulative effect
of accounting changes $6,990 $3,191
========== ==========
Cumulative effect of accounting changes $ -- $ --
Net Income $6,990 $3,191
========== ==========
Earnings Per Share:
Weighted Average Shares
Outstanding - Diluted 8,202,021 8,081,540
Earnings Per Diluted Share:
Before cumulative effect of
accounting changes $0.85 $0.39
After cumulative effect of
accounting changes $0.85 $0.39
Twelve Months Ended
April 30
--------------------------
2001 2000
----------- -----------
Net Sales $416,668 $377,374
Cost of Sales & Distribution 311,217 285,859
----------- -----------
Gross Profit 105,451 91,515
Restructuring costs -- 1,530
SG&A Expense 73,086 65,324
----------- -----------
Operating Income 32,365 24,661
Interest & Other Income/Expense 1,591 106
Income Tax Expense 11,771 10,088
----------- -----------
Income before cumulative effect
of accounting changes $19,003 $14,467
=========== ===========
Cumulative effect of accounting changes (1,583) $ --
Net Income $17,420 $14,467
=========== ===========
Earnings Per Share:
Weighted Average Shares
Outstanding - Diluted 8,144,133 8,095,172
Earnings Per Diluted Share:
Before cumulative effect of
accounting changes $2.34 $1.79
After cumulative effect of
accounting changes $2.14 $1.79
Balance Sheet
April 30 April 30
2001 2000
-------- --------
Cash & Cash Equivalents $1,714 $4,183
Customer Receivables 29,410 35,813
Inventories 30,267 22,739
Other Current Assets 6,488 4,900
-------- --------
Total Current Assets 67,879 67,635
Property, Plant & Equipment 93,641 86,954
Other Assets 18,848 12,067
-------- --------
Total Assets $180,368 $166,656
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Current Portion - Long-Term Debt $2,118 $1,876
Accounts Payable & Accrued Expenses 43,101 43,708
-------- --------
Total Current Liabilities 45,219 45,584
Long-Term Debt 16,819 22,009
Other Liabilities 8,817 6,451
-------- --------
Total Liabilities 70,855 74,044
Stockholders' Equity 109,513 92,612
-------- --------
Total Liabilities &
Stockholders' Equity $180,368 $166,656
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