American Woodmark Corporation Announces Third 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)--Feb. 23, 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 third quarter ended January January: see month. 31, 2000. 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 13% from the prior year to $91,746,000. Net income for the quarter was $2,562,000, or $0.32 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 $3,587,000, or $0.44 per diluted share, in the prior year. Higher sales in the third quarter were the result of new products introduced over the past year, a shift in mix to higher-end products, additional outlets in the home center channel and overall market share gains. Strong demand with the Company's strategic partners was partially offset by the planned exit from certain non-strategic channels of distribution. The Company withdrew from these channels in order to reduce the overall growth rate, to rebalance incoming Incoming is a 3-D shooter developed by Rage Software and published by Interplay. The PC version was released in late 1998, and the Dreamcast version, a launch title for the console, was released in 1998 in Japan and in 1999 in the rest of the world. demand and capacity, and to reserve future capacity for strategic partners. Gross margins declined to 24.3% from 27.2% the previous year due to higher labor, overhead and distribution costs distribution costs distribute npl → Vertriebskosten pl . The Company experienced higher labor costs due to the impact of new and inexperienced in·ex·pe·ri·ence n. 1. Lack of experience. 2. Lack of the knowledge gained from experience. in production employees hired to support the Company's growth. Higher overhead costs overhead costs see fixed costs. were the result of start-up Start-up The earliest stage of a new business venture. expenses incurred at new facilities constructed to support the increased demand for the Company's products. Higher distribution costs 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 and fuel surcharges. The Company continued its aggressive capital expenditure program that began in the fourth quarter of fiscal 1998 to increase overall production capacity and relieve re·lieve v. 1. To cause a lessening or alleviation of something, such as pain, tension, or a symptom. 2. To free an individual from pain, anxiety, or distress. specific production constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. . By the end of the third quarter, the Company had increased capacity sufficiently to service both current demand and anticipated 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. growth. The Company will continue a capital investment plan consistent with projected increases in long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. demand. American Woodmark Corporation manufactures and distributes kitchen cabinets and vanities, for the remodeling remodeling /re·mod·el·ing/ (re-mod´el-ing) reorganization or renovation of an old structure. bone 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 dealers and 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 fillings 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
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2000 1999
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Net Sales $ 91,746 $ 81,186
Cost of Sales & Distribution 69,493 59,089
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Gross Profit 22,253 22,097
SG&A Expense 17,572 16,374
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Operating Income 4,681 5,723
Interest & Other Income/Expense 90 (30)
Income Tax Expense 2,029 2,166
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Net Income $ 2,562 $ 3,587
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Earnings Per Share:
Weighted Average Shares
Outstanding - Diluted 8,077,645 8,085,101
Earnings Per Diluted Share $ 0.32 $ 0.44
Nine Months Ended
January 31
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2000 1999
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Net Sales $ 285,182 $ 233,260
Cost of Sales & Distribution 211,347 166,606
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Gross Profit 73,835 66,654
SG&A Expense 55,033 46,347
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Operating Income 18,802 20,307
Interest & Other Income/Expense (100) (324)
Income Tax Expense 7,626 7,995
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Net Income $ 11,276 $ 12,636
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Earnings Per Share:
Weighted Average Shares
Outstanding - Diluted 8,092,168 8,022,835
Earnings Per Diluted Share $ 1.39 $ 1.58
Balance Sheet
January 31 April 30
2000 1999
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Cash & Cash Equivalents $ 832 $ 14,165
Customer Receivables 31,761 38,925
Inventories 22,515 18,008
Other Current Assets 5,041 3,423
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Total Current Assets 60,149 74,521
Property, Plant & Equipment 80,738 53,739
Other Assets 14,946 12,349
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Total Assets $ 155,833 $ 140,609
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Current Portion - Long-Term Debt $ 1,860 $ 1,974
Loans Payable 7,900 --
Accounts Payable & Accrued Expenses 39,510 43,061
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Total Current Liabilities 49,270 45,035
Long-Term Debt 9,733 11,435
Other Liabilities 7,323 5,802
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Total Liabilities 66,326 62,272
Stockholders' Equity 89,507 78,337
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Total Liabilities &
Stockholders' Equity $ 155,833 $ 140,609
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