American Woodmark Corporation Announces Third Quarter; Declares Cash Dividend.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)--Feb. 27, 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 third quarter ended January January: see month. 31, 2001. Net income for the quarter increased 29% to $3,299,000 from $2,562,000 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 $0.41 from $0.32 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 $101,179,000. Excluding the impact of the Company's exit from the custom cabinet and original equipment markets since the prior year, sales growth in the third quarter was 15%. Overall demand during the quarter was in line with the Company's expectations as disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). in the November November: see month. 28, 2000, press release. Gross margins increased to 26.0% from 24.3% the previous year as improvements in material 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 were partly offset by higher distribution expenses. Material utilization improved as a result of product mix and price reductions in certain raw materials. Higher distribution expenses were the result of increases in standard freight rates Noun 1. freight rate - the charge for transporting something by common carrier; "we pay the freight"; "the freight rate is usually cheaper" freightage, freight from third-party carriers and 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 20.1% 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 and costs incurred to support the continued rollout of new product lines. The economic outlook for the period covered by the Company's fiscal fourth quarter is clearly uncertain. The Company expects new construction activity to remain solid and remodeling remodeling /re·mod·el·ing/ (re-mod´el-ing) reorganization or renovation of an old structure. bone remodeling activity to experience some softness versus 1999 and 2000. Based on anticipated market activity and the Company's market position, the Company currently expects net sales for the fourth fiscal quarter ending April 30, 2001, to increase between 8% and 10% over the prior year. The Company expects gross margins in the fourth quarter of the current year to be similar to the 27% experienced in the same period of the prior year. The Company anticipates net income will be in the range of $0.50 to $0.55 per diluted share for the fourth quarter. The Company announced a quarterly cash dividend of $0.05 per share to be paid on March 26, 2001, to shareholders of record on March 12, 2001. 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)
Operating Results
Three Months Ended
January 31
2001 2000
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Net Sales $101,179 $91,746
Cost of Sales & Distribution 74,871 69,493
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Gross Profit 26,308 22,253
SG&A Expense 20,340 17,572
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Operating Income 5,968 4,681
Interest & Other Income/Expense 464 90
Income Tax Expense 2,205 2,029
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Net Income $3,299 $2,562
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Earnings Per Share:
Weighted Average Shares
Outstanding - Diluted 8,131,562 8,077,645
Earnings Per Diluted Share $0.41 $0.32
Nine Months Ended
January 31
2001 2000
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Net Sales $314,879 $285,182
Cost of Sales & Distribution 231,970 211,347
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Gross Profit 82,909 73,835
SG&A Expense 61,878 55,033
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Operating Income 21,031 18,802
Interest & Other Income/Expense 1,147 (100)
Income Tax Expense 7,957 7,626
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Net Income $11,927 $11,276
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Earnings Per Share:
Weighted Average Shares
Outstanding - Diluted 8,124,137 8,092,168
Earnings Per Diluted Share $1.47 $1.39
Balance Sheet
January 31 April 30
2001 2000
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Cash & Cash Equivalents $ 424 $ 4,183
Customer Receivables 33,911 35,813
Inventories 25,954 22,739
Other Current Assets 4,875 4,900
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Total Current Assets 65,164 67,635
Property, Plant & Equipment 94,994 86,954
Other Assets 15,472 12,067
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Total Assets $ 175,630 $ 166,656
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Current Portion - Long-Term Debt $ 2,062 $ 1,876
Accounts Payable &
Accrued Expenses 36,893 43,708
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Total Current Liabilities 38,955 45,584
Long-Term Debt 24,270 22,009
Other Liabilities 7,677 6,451
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Total Liabilities 70,902 74,044
Stockholders' Equity 104,728 92,612
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Total Liabilities &
Stockholders' Equity $ 175,630 $ 166,656
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