American Woodmark Corporation Announces Second 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)--Nov. 28, 2000 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 second quarter ended October October: see month. 31, 2000. Net income for the quarter was $3,522,000, or $0.43 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, compared with net income of $4,100,000, or $0.51 per diluted share, in the prior year. 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 8% from the prior year to $107,209,000. Excluding the impact of the Company's exit from the custom cabinet and original equipment markets since the prior year, sales growth in the second quarter was 14%. Overall demand during the quarter was below the Company's expectations due to a below average fall selling season, primarily in the Company's remodeling remodeling /re·mod·el·ing/ (re-mod´el-ing) reorganization or renovation of an old structure. bone remodeling business. Gross margin of 25.6% was essentially flat with the previous year. Anticipated improvements in gross margin were not realized due to higher manufacturing overhead and distribution costs distribution costs distribute npl → Vertriebskosten pl . Higher overhead costs overhead costs see fixed costs. were the result of expenses related to underutilized production capacity. Higher distribution costs were the result of increases in freight The price or compensation paid for the transportation of goods by a carrier. Freight is also applied to the goods transported by such carriers. The liability of a carrier for freight damaged, lost, or destroyed during shipment is determined by contract, statute, or charges from third-party carriers and rising fuel surcharges. Selling, general and administrative cost administrative cost Managed care A cost incurred by the 'business' end of a health care facility or university–eg, staffing and personnel costs, nursing home and hospital administration, insurance, and overhead expenses. Cf Indirect costs. increased to 19.7% of net sales, from 19.2% the prior year due primarily to promotional expenses Noun 1. promotional expense - the cost of promoting a product business expense, trade expense - ordinary and necessary expenses incurred in a taxpayer's business or trade for the introduction of the new Thomasville Thomasville. 1 City (1990 pop. 17,457), seat of Thomas co., SW Ga., near the Fla. line; inc. 1831. It is a farm trade center, with a large fresh-vegetable market. product line. The Company currently expects net sales for the third fiscal quarter ending January January: see month. 31, 2001, to increase between 10% and 12% over the prior year. Based on the continued underutilization of capacity at these anticipated volumes during the winter months, the Company would expect gross margins in the third quarter to be similar to those experienced during the second quarter of the current fiscal year. As a result, the Company believes that net income will approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. prior year performance at $0.30 to $0.35 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 home manufacturers and through a network of independent distributors. The Company presently operates ten 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)
Operating Results
Three Months Ended
October 31
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2000 1999
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Net Sales $107,209 $99,259
Cost of Sales & Distribution 79,800 73,750
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Gross Profit 27,409 25,509
SG&A Expense 21,098 19,041
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Operating Income 6,311 6,468
Interest & Other (Income)/Expense 447 (259)
Income Tax Expense 2,342 2,627
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Net Income $3,522 $4,100
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Earnings Per Share:
Weighted Average Shares
Outstanding - Diluted 8,150,963 8,083,737
Earnings Per Share - Diluted $0.43 $0.51
Six Months Ended
October 31
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2000 1999
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Net Sales $213,700 $193,436
Cost of Sales & Distribution 157,099 141,854
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Gross Profit 56,601 51,582
SG&A Expense 41,538 37,461
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Operating Income 15,063 14,121
Interest & Other (Income)/Expense 683 (190)
Income Tax Expense 5,752 5,597
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Net Income $8,628 $8,714
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Earnings Per Share:
Weighted Average Shares
Outstanding - Diluted 8,126,936 8,099,015
Earnings Per Share - Diluted $1.06 $1.08
Balance Sheet
October 31 April 30
2000 2000
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Cash & Cash Equivalents $ 863 $ 4,183
Customer Receivables 35,586 35,813
Inventories 26,719 22,739
Other Current Assets 6,018 4,900
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Total Current Assets 69,186 67,635
Property, Plant & Equipment 96,854 86,954
Other Assets 14,174 12,067
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Total Assets $ 180,214 $ 166,656
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Current Portion - Long-Term Debt $ 1,874 $ 1,876
Accounts Payable & Accrued Expenses 43,012 43,708
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Total Current Liabilities 44,886 45,584
Long-Term Debt 26,500 22,009
Other Liabilities 7,335 6,451
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Total Liabilities 78,721 74,044
Stockholders' Equity 101,493 92,612
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Total Liabilities &
Stockholders' Equity $ 180,214 $ 166,656
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