American Woodmark Corporation Updates Fourth Quarter Earnings Expectations.Business Editors WINCHESTER, Va.--(BUSINESS WIRE)--May 31, 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 updated fourth quarter expectations as outlined in the forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. included in the Company's third quarter press release dated February 27, 2001. The Company expects consolidated 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 to increase 12% versus the 8% to 10% anticipated in the February release. Excluding the impact of the Company's exit from the custom cabinet and original equipment markets since the prior year, sales growth is expected to be approximately 15%. The stronger than anticipated revenue is due to the combination of continued strength in the new construction markets serviced by the Company and regional strength in retail demand. The Company expects net income of between $0.83 and $0.85 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 versus the $0.50 to $0.55 per share anticipated in the February release and a current analyst estimate consensus of $0.54 per share. The better than anticipated earnings is due to the combination of higher than anticipated revenue, leverage on the Company's fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). , continuing improvement in productivity and a decrease in the acquisition cost of certain raw materials. The decrease in certain raw materials was the result of a short-term decline in demand for these materials from other primary users, particularly the furniture industry. The Company expects this situation to be temporary as suppliers are already in the process of rebalancing Rebalancing The process of realigning the weightings of one's portfolio of assets. Notes: For example, if your portfolio's proportion of stock has grown too large for your intended assets weightings and risk tolerance, you might rebalance by selling some stock and putting production with market demand. The Company expects to announce full results for the fourth fiscal quarter and for the full fiscal year ended April 30, 2001, on or about June 26, 2001. 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 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 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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