UNITED STATES | ||||||
SECURITIES AND EXCHANGE COMMISSION | ||||||
Washington, D.C. 20549 | ||||||
FORM 8-K | ||||||
CURRENT REPORT | ||||||
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934 | ||||||
Date of Report (Date of earliest event reported): | March 9, 2018 | |||||
American Woodmark Corporation | ||||||
(Exact name of registrant as specified in its charter) | ||||||
Virginia | 000-14798 | 54-1138147 | ||||
(State or other jurisdiction | (Commission | (IRS Employer | ||||
of incorporation) | File Number) | Identification No.) | ||||
3102 Shawnee Drive, Winchester, Virginia | 22601 | |||||
(Address of principal executive offices) | (Zip Code) | |||||
Registrant’s telephone number, including area code: | (540) 665-9100 | |||||
Not applicable | ||||||
(Former name or former address, if changed since last report) | ||||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): | ||||||
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||||
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||||
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||||
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
/s/ M. SCOTT CULBRETH | /s/ S. CARY DUNSTON | |
M. Scott Culbreth | S. Cary Dunston | |
Senior Vice President and Chief Financial Officer | President & Chief Executive Officer | |
Date: March 9, 2018 | Date: March 9, 2018 | |
Signing on behalf of the registrant and as principal financial officer | Signing on behalf of the registrant and as principal executive officer | |
P. O. Box 1980 | |
Winchester, VA 22604-8090 |
Contact: | Kevin Dunnigan Assistant Treasurer 540-665-9100 |
AMERICAN WOODMARK CORPORATION ANNOUNCES THIRD QUARTER RESULTS |
AMERICAN WOODMARK CORPORATION | |||||||||||||||||
Unaudited Financial Highlights | |||||||||||||||||
(in thousands, except share data) | |||||||||||||||||
Operating Results | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
January 31 | January 31 | ||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||
Net sales | $ | 292,791 | $ | 249,285 | $ | 844,387 | $ | 771,511 | |||||||||
Cost of sales & distribution | 242,412 | 197,689 | 678,179 | 604,446 | |||||||||||||
Gross profit | 50,379 | 51,596 | 166,208 | 167,065 | |||||||||||||
Sales & marketing expense | 19,167 | 18,519 | 55,397 | 52,128 | |||||||||||||
General & administrative expense | 23,492 | 11,476 | 41,442 | 33,083 | |||||||||||||
Operating income | 7,720 | 21,601 | 69,369 | 81,854 | |||||||||||||
Interest expense & other income | 3,956 | (172 | ) | 2,770 | (309 | ) | |||||||||||
Income tax expense | 1,768 | 7,220 | 22,567 | 28,312 | |||||||||||||
Net income | $ | 1,996 | $ | 14,553 | $ | 44,032 | $ | 53,851 | |||||||||
Earnings Per Share: | |||||||||||||||||
Weighted average shares outstanding - diluted | 16,690,760 | 16,381,223 | 16,461,509 | 16,400,842 | |||||||||||||
Net income per diluted share | $ | 0.12 | $ | 0.89 | $ | 2.67 | $ | 3.28 |
Condensed Consolidated Balance Sheet | |||||||||
(Unaudited) | |||||||||
January 31 | April 30 | ||||||||
2018 | 2017 | ||||||||
Cash & cash equivalents | $ | 139,624 | $ | 176,978 | |||||
Investments - certificates of deposit | 8,000 | 51,750 | |||||||
Customer receivables | 121,777 | 63,115 | |||||||
Inventories | 108,003 | 42,859 | |||||||
Other current assets | 37,665 | 4,526 | |||||||
Total current assets | 415,069 | 339,228 | |||||||
Property, plant & equipment | 210,628 | 107,933 | |||||||
Investments - certificates of deposit | 2,500 | 20,500 | |||||||
Trademarks | 9,722 | — | |||||||
Customer relationship intangibles | 270,194 | — | |||||||
Goodwill | 765,743 | — | |||||||
Other assets | 28,133 | 33,612 | |||||||
Total assets | $ | 1,701,989 | $ | 501,273 | |||||
Current portion - long-term debt | $ | 14,864 | $ | 1,598 | |||||
Accounts payable & accrued expenses | 167,832 | 99,899 | |||||||
Total current liabilities | 182,696 | 101,497 | |||||||
Long-term debt | 881,585 | 15,279 | |||||||
Other liabilities | 75,062 | 32,048 | |||||||
Total liabilities | 1,139,343 | 148,824 | |||||||
Stockholders' equity | 562,646 | 352,449 | |||||||
Total liabilities & stockholders' equity | $ | 1,701,989 | $ | 501,273 |
Condensed Consolidated Statements of Cash Flows | |||||||||
(Unaudited) | |||||||||
Nine Months Ended | |||||||||
January 31 | |||||||||
2018 | 2017 | ||||||||
Net cash provided by operating activities | $ | 48,881 | $ | 51,664 | |||||
Net cash used by investing activities | (28,355 | ) | (51,734 | ) | |||||
Net cash used by financing activities | (57,880 | ) | (11,177 | ) | |||||
Net decrease in cash and cash equivalents | (37,354 | ) | (11,247 | ) | |||||
Cash and cash equivalents, beginning of period | 176,978 | 174,463 | |||||||
Cash and cash equivalents, end of period | $ | 139,624 | $ | 163,216 |
Reconciliation of Net Sales and Percentage of Net Sales Excluding RSI | ||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||
January 31, | January 31, | |||||||||||||||||||||
(in thousands) | 2018 | 2017 | Percent Change | 2018 | 2017 | Percent Change | ||||||||||||||||
Net sales excluding RSI | $ | 254,220 | $ | 249,285 | 2 | % | $ | 805,816 | $ | 771,511 | 4 | % | ||||||||||
RSI sales | 38,571 | — | — | 38,571 | — | — | ||||||||||||||||
Net Sales | $ | 292,791 | $ | 249,285 | 17 | % | 844,387 | 771,511 | 9 | % |
Reconciliation of Adjusted Non-GAAP Financial Measures to the GAAP Equivalents | ||||||||||||||||
(in thousands) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
January 31, | January 31, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Net income (GAAP) | $ | 1,996 | $ | 14,553 | $ | 44,032 | $ | 53,851 | ||||||||
Add back: | ||||||||||||||||
Income tax expense | 1,768 | 7,220 | 22,567 | 28,312 | ||||||||||||
Interest expense | 4,498 | 447 | 4,603 | 776 | ||||||||||||
Depreciation and amortization expense | 6,602 | 4,846 | 17,579 | 13,719 | ||||||||||||
Amortization of customer lists and trademarks | 4,083 | — | 4,083 | — | ||||||||||||
EBITDA (Non-GAAP) | $ | 18,947 | $ | 27,066 | $ | 92,864 | $ | 96,658 | ||||||||
Add back: | ||||||||||||||||
Acquisition related expenses | 10,163 | 728 | 10,163 | 728 | ||||||||||||
Inventory step-up amortization (1) | 6,334 | — | 6,334 | — | ||||||||||||
Stock compensation expense | 897 | 828 | 2,506 | 2,477 | ||||||||||||
Loss on asset disposal | 147 | 111 | 280 | 286 | ||||||||||||
Interest income | (463 | ) | (614 | ) | (1,716 | ) | (1,001 | ) | ||||||||
Adjusted EBITDA (Non-GAAP) | $ | 36,025 | $ | 28,119 | $ | 110,431 | $ | 99,148 | ||||||||
Net Sales | $ | 292,791 | $ | 249,285 | $ | 844,387 | $ | 771,511 | ||||||||
Adjusted EBITDA margin (Non-GAAP) | 12.3 | % | 11.3 | % | 13.1 | % | 12.9 | % |
Reconciliation of Net Income to Adjusted Net Income | ||||||||||||||||
(in thousands, except share data) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
January 31, | January 31, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Net income (GAAP) | $ | 1,996 | $ | 14,553 | $ | 44,032 | $ | 53,851 | ||||||||
Add back: | ||||||||||||||||
Acquisition related expenses | 10,163 | 728 | 10,163 | 728 | ||||||||||||
Inventory step-up amortization (1) | 6,334 | — | 6,334 | — | ||||||||||||
Tax benefit of acquisition expenses and inventory step-up | (4,438 | ) | (261 | ) | (4,438 | ) | (261 | ) | ||||||||
Adjusted net income (Non-GAAP) | $ | 14,055 | $ | 15,020 | $ | 56,091 | $ | 54,318 | ||||||||
Weighted average diluted shares | 16,690,760 | 16,381,223 | 16,461,509 | 16,400,842 | ||||||||||||
Adjusted EPS per diluted share (Non-GAAP) | $ | 0.84 | $ | 0.92 | $ | 3.41 | $ | 3.31 |
Free Cash Flow | |||||||||
Nine Months Ended | |||||||||
January 31, | |||||||||
2018 | 2017 | ||||||||
Cash provided by operating activities | $ | 48,881 | $ | 51,664 | |||||
Capital expenditures (2) | 32,919 | 17,521 | |||||||
Free cash flow | $ | 81,800 | $ | 69,185 |