UNITED STATES SECURITIES AND EXCHANGE COMMISSION | ||||||
Washington, D.C. 20549 | ||||||
FORM 10-K | ||||||
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||
For the fiscal year ended | April 30, 2018 | |||||
or | ||||||
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||
For the transition period from | to | |||||
Commission File Number: | 000-14798 | |||||
American Woodmark Corporation | ||||||
(Exact name of registrant as specified in its charter) | ||||||
Virginia | 54-1138147 | |||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||
561 Shady Elm Road, Winchester, Virginia | 22602 | |||||
(Address of principal executive offices) | (Zip Code) | |||||
(Registrant's telephone number, including area code) | (540) 665-9100 | |||||
Securities registered pursuant to Section 12(b) of the Act: | ||||||
Title of each class | Name of each exchange on which registered | |||||
Common Stock (no par value) | NASDAQ Global Select Market | |||||
Securities registered pursuant to Section 12(g) of the Act: None |
Large accelerated filer | [X] | Accelerated filer | [ ] | |
Non-accelerated filer | [ ] | (Do not check if a smaller reporting company) | Smaller reporting company | [ ] |
Emerging growth company | [ ] | |||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with an new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ] |
PART I | ||
Item 1. | 2 | |
Item 1A. | 5 | |
Item 1B. | 12 | |
Item 2. | 12 | |
Item 3. | 13 | |
Item 4. | 13 | |
14 | ||
PART II | ||
Item 5. | 15 | |
Item 6. | 17 | |
Item 7. | 18 | |
Item 7A. | 29 | |
Item 8. | 30 | |
Item 9. | 63 | |
Item 9A. | 63 | |
Item 9B. | 63 | |
PART III | ||
Item 10. | 63 | |
Item 11. | 64 | |
Item 12. | 64 | |
Item 13. | 64 | |
Item 14. | 65 | |
PART IV | ||
Item 15. | 65 | |
Item 16. | 69 | |
SIGNATURES | 70 |
• | introduction of non-native invasive organisms into new environments; |
• | recessionary trends in international markets; |
• | legal and regulatory changes and the burdens and costs of our compliance with a variety of laws, including export controls, import and customs trade restrictions and tariffs; |
• | increases in transportation costs or transportation delays; |
• | work stoppages and labor strikes; |
• | fluctuations in exchange rates, particularly the value of the U.S. dollar relative to other currencies; and |
• | political unrest, terrorism and economic instability. |
LOCATION | DESCRIPTION |
Allegany County, MD | Manufacturing Facility |
Anaheim, CA | Office/ Manufacturing Facility* |
Austin, TX | Satellite Service Center* |
Berryville, VA | Service Center* |
Bradenton, FL | Satellite Service Center* |
Commerce City, CO | Satellite Service Center* |
Coppell, TX | Service Center* |
Dallas, TX | Manufacturing Facility* |
Dallas, TX | Manufacturing Facility |
Fort Myers, FL | Satellite Service Center* |
Gas City, IN | Manufacturing Facility |
Hamlet, NC | Manufacturing Facility* |
Hardy County, WV | Manufacturing Facility* |
Houston, TX | Satellite Service Center* |
Humboldt, TN | Manufacturing Facility |
LOCATION | DESCRIPTION |
Huntersville, NC | Service Center* |
Jackson, GA | Manufacturing Facility |
Kingman, AZ | Manufacturing Facility |
Kennesaw, GA | Service Center* |
Las Vegas, NV | Satellite Service Center* |
Lincolnton, NC | Manufacturing Facility* |
Mira Loma, CA | Manufacturing Facility* |
Mooresville, NC | Office (Sales)* |
Montgomeryville, PA | Satellite Service Center* |
Monticello, KY | Manufacturing Facility |
Orange, VA | Manufacturing Facility |
Orlando, FL | Service Center* |
Phoenix, AZ | Service Center* |
Raleigh, NC | Satellite Service Center* |
Rancho Cordova, CA | Service Center* |
Roswell, GA | Office (Sales)* |
San Antonio, TX | Satellite Service Center* |
Tampa, FL | Satellite Service Center* |
Tijuana, Mexico | Manufacturing Facility* |
Tijuana, Mexico | Manufacturing Facility* |
Tijuana, Mexico | Manufacturing Facility* |
Toccoa, GA | Manufacturing Facility |
Tucson, AZ | Satellite Service Center* |
Winchester, VA | Current Corporate Office |
Winchester, VA | Former Corporate Office* (lease terminated effective May 31, 2018) |
Name | Age | Position(s) Held During Past Five Years | |
S. Cary Dunston | 53 | Company Chairman from August 2017 to present; Company President and Chief Executive Officer from August 2015 to present; Company President and Chief Operating Officer from August 2014 to August 2015; Company Executive Vice President and Chief Operating Officer from August 2013 to August 2014; Company Executive Vice President, Operations from September 2012 to August 2013; Company Senior Vice President, Manufacturing and Supply Chain Services from October 2006 to September 2012. | |
M. Scott Culbreth | 47 | Company Senior Vice President and Chief Financial Officer from February 2014 to present; Chief Financial Officer of Piedmont Hardware Brands from September 2013 to February 2014; Vice President, Finance – Various Segments from 2009 to September 2013 for Newell Rubbermaid. | |
R. Perry Campbell | 53 | Company Senior Vice President of Sales and Marketing from March 2016 to present; Company Senior Vice President and General Manager, New Construction from August 2013 to March 2016; Company Vice President and General Manager, New Construction from May 2011 to August 2013. | |
Robert J. Adams, Jr. | 52 | Company Senior Vice President of Value Stream Operations from August 2015 to present; Company Vice President of Value Stream Operations from September 2012 to August 2015; Company Vice President of Manufacturing and Engineering from April 2012 to September 2012; Company Vice President of Engineering from July 2008 to April 2012. |
MARKET PRICE | |||
(in dollars) | High | Low | |
FISCAL 2018 | |||
First quarter | $101.20 | $87.30 | |
Second quarter | 100.35 | 79.15 | |
Third quarter | 140.05 | 89.00 | |
Fourth quarter | 138.75 | 82.20 | |
FISCAL 2017 | |||
First quarter | $82.34 | $60.80 | |
Second quarter | 89.57 | 72.60 | |
Third quarter | 84.15 | 69.65 | |
Fourth quarter | 93.10 | 71.75 |
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | ||||||||
American Woodmark Corporation | $100.00 | $89.18 | $150.67 | $216.46 | $273.11 | $244.27 | |||||||
Russell 2000 Index | 100.00 | 120.50 | 132.19 | 124.33 | 156.20 | 174.22 | |||||||
S&P Household Durables Index | 100.00 | 117.82 | 138.11 | 142.95 | 164.16 | 152.42 |
FISCAL YEARS ENDED APRIL 30 | |||||||||||||||||||
(Dollars in millions except per share data) | 20181,2 | 20172 | 2016 | 20153 | 20143 | ||||||||||||||
FINANCIAL STATEMENT DATA | |||||||||||||||||||
Net sales | $ | 1,250.3 | $ | 1,030.2 | $ | 947.0 | $ | 825.5 | $ | 726.5 | |||||||||
Operating income | 107.7 | 108.2 | 93.2 | 54.7 | 34.1 | ||||||||||||||
Net income | 63.1 | 71.2 | 58.7 | 35.5 | 20.5 | ||||||||||||||
Earnings per share: | |||||||||||||||||||
Basic | 3.80 | 4.38 | 3.61 | 2.25 | 1.34 | ||||||||||||||
Diluted | 3.77 | 4.34 | 3.57 | 2.21 | 1.31 | ||||||||||||||
Depreciation and amortization expense | 45.0 | 18.7 | 16.5 | 14.5 | 14.5 | ||||||||||||||
Total assets | 1,645.3 | 501.3 | 466.4 | 398.8 | 330.0 | ||||||||||||||
Long-term debt, less current maturities | 809.9 | 15.3 | 22.1 | 21.4 | 20.4 | ||||||||||||||
Total shareholders' equity | 581.7 | 352.4 | 280.8 | 229.8 | 190.5 | ||||||||||||||
Average shares outstanding | |||||||||||||||||||
Basic | 16.6 | 16.3 | 16.3 | 15.8 | 15.3 | ||||||||||||||
Diluted | 16.7 | 16.4 | 16.4 | 16.0 | 15.7 | ||||||||||||||
PERCENT OF SALES | |||||||||||||||||||
Gross profit | 20.4 | % | 21.8 | % | 21.1 | % | 18.5 | % | 17.1 | % | |||||||||
Selling, general and administrative expenses | 11.8 | 11.3 | 11.2 | 11.9 | 12.5 | ||||||||||||||
Income before income taxes | 7.6 | 10.6 | 9.7 | 6.6 | 4.5 | ||||||||||||||
Net income | 5.1 | 6.9 | 6.2 | 4.3 | 2.7 | ||||||||||||||
RATIO ANALYSIS | |||||||||||||||||||
Current ratio | 2.1 | 3.3 | 3.3 | 3.2 | 2.8 | ||||||||||||||
Inventory turnover4 | 13.5 | 19.6 | 19.8 | 19.9 | 19.8 | ||||||||||||||
Collection period - days5 | 33.6 | 32.5 | 31.2 | 31.6 | 32.8 | ||||||||||||||
Percentage of capital (long-term debt plus equity): | |||||||||||||||||||
Long-term debt, less current maturities | 58.2 | % | 4.2 | % | 7.4 | % | 8.5 | % | 9.7 | % | |||||||||
Equity | 41.8 | 95.8 | 92.6 | 91.4 | 90.3 | ||||||||||||||
Return on equity6 | 13.5 | 22.5 | 23.0 | 16.9 | 12.2 |
1 | The fiscal 2018 year results include four months of RSI activity. See Note B--Acquisition of RSI Home Products, Inc. for further details. |
2 | The Company incurred corporate business development expenses. During fiscal 2018, these expenses decreased operating income, net income and earnings per share by $12.9 million, $12.9 million and $0.77, respectively. During fiscal 2017, these expense decreased operating income, net income and earnings per share by $2.7 million, $2.7 million and $0.16, respectively. |
3 | The Company announced plans to realign its manufacturing network during fiscal 2012. During fiscal 2014, the credits related to these initiatives increased operating income, net income and earnings per share by $0.2 million, $0.1 million and $0.01, respectively. During fiscal 2015, the credits related to these initiatives increased operating income, net income and earnings per share by $0.2 million, $0.1 million and $0.01, respectively. |
4 | Based on average beginning and ending inventory. |
5 | Based on the ratio of average monthly customer receivables to average sales per day. |
6 | Based on net income divided by average beginning and ending shareholders equity. |
PERCENTAGE OF NET SALES | ||||||||
Fiscal Years Ended April 30 | ||||||||
2018 | 2017 | 2016 | ||||||
Net sales | 100.0 | % | 100.0 | % | 100.0 | % | ||
Cost of sales and distribution | 79.6 | 78.2 | 78.9 | |||||
Gross profit | 20.4 | 21.8 | 21.1 | |||||
Selling and marketing expenses | 6.2 | 6.9 | 7.0 | |||||
General and administrative expenses | 5.6 | 4.4 | 4.3 | |||||
Operating income | 8.6 | 10.5 | 9.8 | |||||
Interest expense/other (income) expense | 1.0 | (0.1 | ) | 0.1 | ||||
Income before income taxes | 7.6 | 10.6 | 9.7 | |||||
Income tax expense | 2.5 | 3.7 | 3.5 | |||||
Net income | 5.1 | 6.9 | 6.2 |
• | the loss of or a reduction in business from one or more of our key customers; |
• | negative developments in the U.S. housing market or general economy and the impact of such developments on our and our customers’ business, operations and access to financing; |
• | competition from other manufacturers and the impact of such competition on pricing and promotional levels; |
• | an inability to develop new products or respond to changing consumer preferences and purchasing practices; |
• | a failure to effectively manage manufacturing operations, alignment and capacity or an inability to maintain the quality of our products; |
• | the impairment of goodwill, other intangible assets or our long-lived assets; |
• | an inability to obtain raw materials in a timely manner or fluctuations in raw material and energy costs; |
• | information systems interruptions or intrusions or the unauthorized release of confidential information concerning customers, employees or other third parties; |
• | the cost of compliance with, or liabilities related to, environmental or other governmental regulations or changes in governmental or industry regulatory standards, especially with respect to health and safety and the environment; |
• | a failure to attract and retain certain members of management or other key employees or other negative labor developments, including increases in the cost of labor; |
• | risks associated with the implementation of our growth strategy; |
• | risks related to sourcing and selling products internationally and doing business globally; |
• | unexpected costs resulting from a failure to maintain acceptable quality standards; |
• | changes in tax laws or the interpretations of existing tax laws; |
• | the occurrence of significant natural disasters, including earthquakes, fires, floods, and hurricanes or tropical storms; |
• | the unavailability of adequate capital for our business to grow and compete; |
• | increased buying power of large customers and the impact on our ability to maintain or raise prices; |
• | the effect of the RSI Acquisition on our ability to retain customers, maintain relationships with suppliers and hire and retain key personnel; |
• | our ability to successfully integrate RSI into our business and operations and the risk that the anticipated economic benefits, costs savings and other synergies in connection with the RSI Acquisition are not fully realized or take longer to realize than expected; and |
• | limitations on operating our business as a result of covenant restrictions under our indebtedness, and our ability to pay amounts due under our credit facilities, our senior notes and our other indebtedness. |
• | The unemployment rate improved by 11% compared to April 2017, falling to 3.9% as of April 2018 according to data provided by the U.S. Department of Labor; |
• | Increases in single family housing starts during the Company’s fiscal 2018 of 9%, as compared to the Company’s fiscal 2017, according to the U.S. Department of Commerce; |
• | Mortgage interest rates increased with a 30-year fixed mortgage rate of 4.47% in April 2018, an increase of approximately 42 basis points compared to April 2017; |
• | The median price of existing homes sold in the U.S. rose by 5.3% during the Company’s fiscal 2018, according to data provided by the National Association of Realtors; |
• | Consumer sentiment, as reported by the University of Michigan, averaged 4% higher during the Company’s fiscal 2018 than in its prior fiscal year; and |
• | Cabinet sales, as reported by members of the Kitchen Cabinet Manufacturers Association (KCMA), increased by 3% during fiscal 2018 versus the prior fiscal year, suggesting an increase in both new construction and remodeling sales of cabinets. |
FISCAL YEARS ENDED APRIL 30 | |||||||||||||||||
(Dollars in thousands) | 2018 | 2017 | 2016 | 2018 vs. 2017 PERCENT CHANGE | 2017 vs. 2016 PERCENT CHANGE | ||||||||||||
Net sales | $ | 1,250,274 | $ | 1,030,248 | $ | 947,045 | 21 | % | 9 | % | |||||||
Gross profit | 255,403 | 224,636 | 199,694 | 14 | 12 | ||||||||||||
Selling and marketing expenses | 77,843 | 70,979 | 66,489 | 10 | 7 | ||||||||||||
General and administrative expenses | 69,855 | 45,419 | 40,045 | 54 | 13 | ||||||||||||
Interest expense (income), net | 13,054 | 521 | 129 | 2,406 | 304 |
Reconciliation of Net Sales and Percentage of Net Sales Excluding RSI | ||||||||||||||||||
FISCAL YEARS ENDED APRIL 30, | ||||||||||||||||||
(Dollars in thousands) | 2018 | 2017 | 2016 | 2018 vs. 2017 PERCENT CHANGE | 2017 vs. 2016 PERCENT CHANGE | |||||||||||||
Net sales excluding RSI | $ | 1,072,550 | $ | 1,030,248 | $ | 947,045 | 4 | % | 9 | % | ||||||||
RSI sales | 177,724 | — | — | — | ||||||||||||||
Net Sales | $ | 1,250,274 | $ | 1,030,248 | $ | 947,045 | 21 | % | 9 | % |
Reconciliation of Adjusted Non-GAAP Financial Measures to the GAAP Equivalents | ||||||||||||
FISCAL YEARS ENDED APRIL 30, | ||||||||||||
(Dollars in thousands) | 2018 | 2017 | 2016 | |||||||||
Net income (GAAP) | $ | 63,141 | $ | 71,199 | $ | 58,723 | ||||||
Add back: | ||||||||||||
Income tax expense | 31,619 | 37,726 | 33,063 | |||||||||
Interest expense (income), net | 13,054 | (521 | ) | 129 | ||||||||
Depreciation and amortization expense | 28,671 | 18,682 | 16,456 | |||||||||
Amortization of customer relationship intangibles and trademarks | 16,333 | — | ||||||||||
EBITDA (Non-GAAP) | $ | 152,818 | $ | 127,086 | $ | 108,371 | ||||||
Add back: | ||||||||||||
Acquisition related expenses | 12,902 | 2,686 | — | |||||||||
Inventory step-up amortization (1) | 6,334 | — | — | |||||||||
Stock compensation expense | 3,097 | 3,469 | 3,609 | |||||||||
Loss on asset disposal | 615 | 444 | 1,576 | |||||||||
Adjusted EBITDA (Non-GAAP) | $ | 175,766 | $ | 133,685 | $ | 113,556 | ||||||
Net Sales | $ | 1,250,274 | $ | 1,030,248 | $ | 947,045 | ||||||
Adjusted EBITDA margin (Non-GAAP) | 14.1 | % | 13.0 | % | 12.0 | % |
Adjusted EPS per diluted share | ||||||||||||
FISCAL YEARS ENDED APRIL 30, | ||||||||||||
(Dollars in thousands, except share and per share data) | 2018 | 2017 | 2016 | |||||||||
Net income (GAAP) | $ | 63,141 | $ | 71,199 | $ | 58,723 | ||||||
Add back: | ||||||||||||
Acquisition related expenses | 12,902 | 2,686 | — | |||||||||
Amortization of intangibles | 16,333 | — | — | |||||||||
Inventory step-up amortization (1) | 6,334 | — | — | |||||||||
Tax benefit of add backs | (10,970 | ) | (969 | ) | — | |||||||
Adjusted net income (Non-GAAP) | $ | 87,740 | $ | 72,916 | $ | 58,723 | ||||||
Weighted average diluted shares | 16,744,705 | 16,398,240 | 16,441,571 | |||||||||
Adjusted EPS per diluted share (Non-GAAP) | $ | 5.24 | $ | 4.45 | $ | 3.57 |
FISCAL YEARS ENDED APRIL 30 | |||||||||||||||||||
(in thousands) | Total Amounts | 2019 | 2020-2021 | 2022-2023 | 2024 and Thereafter | ||||||||||||||
Term Loans | $ | 460,000 | $ | — | $ | 85,000 | $ | 375,000 | $ | — | |||||||||
The Senior Notes | 350,000 | — | — | — | 350,000 | ||||||||||||||
Economic development loans | 4,439 | 2,189 | 177 | 408 | 1,665 | ||||||||||||||
Capital lease obligations | 7,245 | 1,948 | 3,128 | 1,352 | 817 | ||||||||||||||
Other long-term debt | 6,660 | — | — | — | 6,660 | ||||||||||||||
Operating lease obligations | 93,841 | 15,536 | 29,548 | 16,731 | 32,026 | ||||||||||||||
Pension contributions1 | 7,507 | 2,327 | 3,050 | 2,000 | 130 | ||||||||||||||
Total | $ | 929,692 | $ | 22,000 | $ | 120,903 | $ | 395,491 | $ | 391,298 |
1 | The estimated cost of the Company’s two defined benefit pension plans is determined annually based upon the discount rate and other assumptions at fiscal year-end. Future pension funding contributions beyond fiscal 2024 have not been determined at this time. |
(in millions) | IMPACT OF 1% INCREASE | IMPACT OF 1% DECREASE | |||||
(decrease) increase | |||||||
Effect on annual pension expense | $ | (1.3 | ) | $ | 1.2 | ||
Effect on projected pension benefit obligation | $ | (20.5 | ) | $ | 26.1 |
APRIL 30 | |||||||
(in thousands, except share and per share data) | 2018 | 2017 | |||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 78,410 | $ | 176,978 | |||
Investments - certificates of deposit | 8,000 | 51,750 | |||||
Customer receivables, net | 136,355 | 63,115 | |||||
Inventories | 104,801 | 42,859 | |||||
Income taxes receivable | 25,996 | 301 | |||||
Prepaid expenses and other | 10,805 | 4,225 | |||||
Total Current Assets | 364,367 | 339,228 | |||||
Property, plant and equipment, net | 218,102 | 107,933 | |||||
Investments - certificates of deposit | 1,500 | 20,500 | |||||
Customer relationships intangibles, net | 258,778 | — | |||||
Trademarks, net | 8,889 | — | |||||
Goodwill, net | 767,451 | — | |||||
Promotional displays, net | 12,189 | 5,745 | |||||
Deferred income taxes | 732 | 18,047 | |||||
Other assets | 13,337 | 9,820 | |||||
TOTAL ASSETS | $ | 1,645,345 | $ | 501,273 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable | $ | 71,096 | $ | 41,312 | |||
Current maturities of long-term debt | 4,143 | 1,598 | |||||
Accrued compensation and related expenses | 48,682 | 36,162 | |||||
Accrued marketing expenses | 19,289 | 8,655 | |||||
Other accrued expenses | 27,245 | 13,770 | |||||
Total Current Liabilities | 170,455 | 101,497 | |||||
Long-term debt, less current maturities | 809,897 | 15,279 | |||||
Deferred income taxes | 71,563 | — | |||||
Defined benefit pension liabilities | 6,960 | 28,032 | |||||
Other long-term liabilities | 4,805 | 4,016 | |||||
Shareholders' Equity | |||||||
Preferred stock, $1.00 par value; 2,000,000 shares authorized, none issued | — | — | |||||
Common stock, no par value; 40,000,000 shares authorized; issued and outstanding shares: at April 30, 2018: 17,503,922, at April 30, 2017: 16,232,775 | 361,158 | 168,835 | |||||
Retained earnings | 269,576 | 224,031 | |||||
Accumulated other comprehensive loss - | |||||||
Defined benefit pension plans | (49,069 | ) | (40,417 | ) | |||
Total Shareholders' Equity | 581,665 | 352,449 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,645,345 | $ | 501,273 |
FISCAL YEARS ENDED APRIL 30 | |||||||||||
(in thousands, except per share data) | 2018 | 2017 | 2016 | ||||||||
Net sales | $ | 1,250,274 | $ | 1,030,248 | $ | 947,045 | |||||
Cost of sales and distribution | 994,871 | 805,612 | 747,351 | ||||||||
Gross Profit | 255,403 | 224,636 | 199,694 | ||||||||
Selling and marketing expenses | 77,843 | 70,979 | 66,489 | ||||||||
General and administrative expenses | 69,855 | 45,419 | 40,045 | ||||||||
Operating Income | 107,705 | 108,238 | 93,160 | ||||||||
Interest expense (income), net | 13,054 | (521 | ) | 129 | |||||||
Other (income) expense | (109 | ) | (166 | ) | 1,245 | ||||||
Income Before Income Taxes | 94,760 | 108,925 | 91,786 | ||||||||
Income tax expense | 31,619 | 37,726 | 33,063 | ||||||||
Net Income | $ | 63,141 | $ | 71,199 | $ | 58,723 | |||||
SHARE INFORMATION | |||||||||||
Earnings per share | |||||||||||
Basic | $ | 3.80 | $ | 4.38 | $ | 3.61 | |||||
Diluted | 3.77 | 4.34 | 3.57 |
FISCAL YEARS ENDED APRIL 30 | |||||||||||
(in thousands) | 2018 | 2017 | 2016 | ||||||||
Net income | $ | 63,141 | $ | 71,199 | $ | 58,723 | |||||
Other comprehensive income (loss) net of tax: | |||||||||||
Change in pension benefits, net of deferred taxes | |||||||||||
of $(50), $(4,391), and $4,110, respectively | 88 | 6,868 | (6,428 | ) | |||||||
Total Comprehensive Income | $ | 63,229 | $ | 78,067 | $ | 52,295 |
ACCUMULATED | ||||||||||||||||||
OTHER | TOTAL | |||||||||||||||||
COMMON STOCK | RETAINED | COMPREHENSIVE | SHAREHOLDERS' | |||||||||||||||
(in thousands, except share data) | SHARES | AMOUNT | EARNINGS | LOSS | EQUITY | |||||||||||||
Balance, May 1, 2015 | 16,079,671 | $ | 150,001 | $ | 120,698 | $ | (40,857 | ) | $ | 229,842 | ||||||||
Net income | — | — | 58,723 | — | 58,723 | |||||||||||||
Other comprehensive loss, | ||||||||||||||||||
net of tax | — | — | — | (6,428 | ) | (6,428 | ) | |||||||||||
Stock-based compensation | — | 3,609 | — | — | 3,609 | |||||||||||||
Adjustments to excess tax | ||||||||||||||||||
benefit from stock-based | ||||||||||||||||||
compensation | — | 4,559 | — | — | 4,559 | |||||||||||||
Exercise of stock-based | ||||||||||||||||||
compensation awards, net of | ||||||||||||||||||
amounts withheld for taxes | 375,928 | 5,288 | — | — | 5,288 | |||||||||||||
Stock repurchases | (243,143 | ) | (1,928 | ) | (14,665 | ) | — | (16,593 | ) | |||||||||
Employee benefit plan | ||||||||||||||||||
contributions | 31,585 | 1,761 | — | — | 1,761 | |||||||||||||
Balance, April 30, 2016 | 16,244,041 | $ | 163,290 | $ | 164,756 | $ | (47,285 | ) | $ | 280,761 | ||||||||
Net income | — | — | 71,199 | — | 71,199 | |||||||||||||
Other comprehensive loss, | ||||||||||||||||||
net of tax | — | — | — | 6,868 | 6,868 | |||||||||||||
Stock-based compensation | — | 3,469 | — | — | 3,469 | |||||||||||||
Exercise of stock-based | ||||||||||||||||||
compensation awards, net of | ||||||||||||||||||
amounts withheld for taxes | 122,772 | 633 | — | — | 633 | |||||||||||||
Stock repurchases | (178,118 | ) | (1,483 | ) | (11,924 | ) | — | (13,407 | ) | |||||||||
Employee benefit plan | ||||||||||||||||||
contributions | 44,080 | 2,926 | — | — | 2,926 | |||||||||||||
Balance, April 30, 2017 | 16,232,775 | $ | 168,835 | $ | 224,031 | $ | (40,417 | ) | $ | 352,449 | ||||||||
Net income | — | — | 63,141 | — | 63,141 | |||||||||||||
Adoption of ASU 2018-02 | — | — | 8,740 | (8,740 | ) | — | ||||||||||||
Other comprehensive income, | ||||||||||||||||||
net of tax | — | — | — | 88 | 88 | |||||||||||||
Stock-based compensation | — | 3,097 | — | — | 3,097 | |||||||||||||
Exercise of stock-based | ||||||||||||||||||
compensation awards, net of | ||||||||||||||||||
amounts withheld for taxes | 86,927 | (1,513 | ) | (1,513 | ) | |||||||||||||
Stock issuance related to acquisition | 1,457,568 | 189,849 | — | — | 189,849 | |||||||||||||
Stock repurchases | (309,612 | ) | (2,664 | ) | (26,336 | ) | (29,000 | ) | ||||||||||
Employee benefit plan | ||||||||||||||||||
contributions | 36,264 | 3,554 | 3,554 | |||||||||||||||
Balance, April 30, 2018 | 17,503,922 | $ | 361,158 | $ | 269,576 | $ | (49,069 | ) | $ | 581,665 |
FISCAL YEARS ENDED APRIL 30 | |||||||||||
(in thousands) | 2018 | 2017 | 2016 | ||||||||
OPERATING ACTIVITIES | |||||||||||
Net income | $ | 63,141 | $ | 71,199 | $ | 58,723 | |||||
Adjustments to reconcile net income to net cash and | |||||||||||
cash equivalents provided by operating activities: | |||||||||||
Depreciation and amortization | 45,004 | 18,682 | 16,456 | ||||||||
Net loss on disposal of property, plant and equipment | 615 | 444 | 1,576 | ||||||||
Loss on extinguishment of debt | 257 | — | — | ||||||||
Stock-based compensation expense | 3,097 | 3,469 | 3,609 | ||||||||
Deferred income taxes | 21,404 | 9,899 | 11,629 | ||||||||
Pension contributions in excess of expense | (20,928 | ) | (27,840 | ) | (4,732 | ) | |||||
Excess tax benefit from stock-based compensation | — | — | (4,968 | ) | |||||||
Contributions of employer stock to employee benefit plan | 3,554 | 2,926 | 1,761 | ||||||||
Other non-cash items | 14 | 318 | (663 | ) | |||||||
Changes in operating assets and liabilities (net of acquired assets and liabilities): | |||||||||||
Customer receivables | (18,786 | ) | (7,780 | ) | (9,938 | ) | |||||
Inventories | 2,802 | (4,925 | ) | (4,276 | ) | ||||||
Income taxes receivable | (7,295 | ) | — | — | |||||||
Prepaid expenses and other assets | (7,492 | ) | (207 | ) | (4,585 | ) | |||||
Accounts payable | (858 | ) | 6,301 | 723 | |||||||
Accrued compensation and related expenses | (2,525 | ) | 773 | 5,269 | |||||||
Income taxes payable | — | — | (1,791 | ) | |||||||
Marketing and other accrued expenses | 4,771 | 3,821 | 5,811 | ||||||||
Net Cash Provided by Operating Activities | 86,775 | 77,080 | 74,604 | ||||||||
INVESTING ACTIVITIES | |||||||||||
Payments to acquire property, plant and equipment | (47,590 | ) | (21,811 | ) | (28,685 | ) | |||||
Proceeds from sales of property, plant and equipment | 27 | 37 | 846 | ||||||||
Acquisition of business, net of cash acquired | (57,200 | ) | — | — | |||||||
Purchases of certificates of deposit | (25,000 | ) | (85,000 | ) | (46,750 | ) | |||||
Maturities of certificates of deposit | 87,750 | 56,750 | 38,250 | ||||||||
Investment in promotional displays | (2,303 | ) | (3,720 | ) | (4,434 | ) | |||||
Net Cash Used by Investing Activities | (44,316 | ) | (53,744 | ) | (40,773 | ) | |||||
FINANCING ACTIVITIES | |||||||||||
Payments of long-term debt | (96,572 | ) | (11,731 | ) | (1,547 | ) | |||||
Proceeds from long-term debt | 734 | 3,477 | 3,196 | ||||||||
Excess tax benefit from stock-based compensation | — | — | 4,968 | ||||||||
Proceeds from issuance of common stock and other | 1,289 | 2,366 | 8,114 | ||||||||
Repurchase of common stock | (29,000 | ) | (13,407 | ) | (16,593 | ) | |||||
Withholding of employee taxes related to stock-based compensation | (2,803 | ) | (1,734 | ) | (2,826 | ) | |||||
Debt issuance cost | (14,675 | ) | — | — |
Notes receivable, net | — | 208 | (4,221 | ) | |||||||
Net Cash Used by Financing Activities | (141,027 | ) | (20,821 | ) | (8,909 | ) | |||||
Net (Decrease) Increase in Cash and Cash Equivalents | (98,568 | ) | 2,515 | 24,922 | |||||||
Cash and Cash Equivalents, Beginning of Year | 176,978 | 174,463 | 149,541 | ||||||||
Cash and Cash Equivalents, End of Year | $ | 78,410 | $ | 176,978 | $ | 174,463 |
Supplemental cash flow information: | |||||||||||
Non-cash investing and financing activities: | |||||||||||
Long-term debt related to funding acquisition | $ | 300,000 | $ | — | $ | — | |||||
Long-term debt issued to satisfy outstanding debt | $ | 600,000 | $ | — | $ | — | |||||
Long-term debt satisfied from issuance of debt | $ | (602,750 | ) | $ | — | $ | — | ||||
Stock issuance in connection with acquisition | $ | 189,849 | $ | — | $ | — | |||||
Property, plant and equipment | $ | 5,530 | $ | — | $ | — | |||||
Net other assets and liabilities related to acquisition | $ | 7,169 | $ | — | $ | — | |||||
Cash paid during the period for: | |||||||||||
Interest | $ | 5,919 | $ | 596 | $ | 776 | |||||
Income taxes | $ | 18,219 | $ | 27,302 | $ | 24,510 |
Goodwill | $ | 767,451 | ||
Customer relationship intangibles | 274,000 | |||
Property, plant and equipment | 86,275 | |||
Inventories | 66,293 | |||
Customer receivables | 54,649 | |||
Income taxes receivable | 18,450 | |||
Trademarks | 10,000 | |||
Prepaid expenses and other | 4,571 | |||
Leasehold interests | 151 | |||
Total identifiable assets and goodwill acquired | 1,281,840 | |||
Debt | 602,313 | |||
Deferred income taxes | 67,368 | |||
Accrued expenses | 29,777 | |||
Accounts payable | 25,113 | |||
Notes payable | 2,988 | |||
Income taxes payable | 49 | |||
Total liabilities assumed | 727,608 | |||
Total accounting consideration | $ | 554,232 |
FISCAL YEARS ENDED APRIL 30, | ||||||||
(in thousands) | 2018 | 2017 | ||||||
Net Sales | $ | 1,613,663 | $ | 1,623,441 | ||||
Net Income (1) | $ | 67,388 | $ | 93,798 | ||||
Net earnings per share - basic | $ | 3.83 | $ | 5.30 | ||||
Net earnings per share - diluted | $ | 3.80 | $ | 5.26 |
APRIL 30 | |||||||
(in thousands) | 2018 | 2017 | |||||
Gross customer receivables | $ | 142,622 | $ | 66,373 | |||
Less: | |||||||
Allowance for doubtful accounts | (259 | ) | (148 | ) | |||
Allowance for returns and discounts | (6,008 | ) | (3,110 | ) | |||
Net customer receivables | $ | 136,355 | $ | 63,115 |
APRIL 30 | |||||||
(in thousands) | 2018 | 2017 | |||||
Raw materials | $ | 41,728 | $ | 18,230 | |||
Work-in-process | 44,905 | 18,704 | |||||
Finished goods | 34,111 | 19,372 | |||||
Total FIFO inventories | 120,744 | 56,306 | |||||
Reserve to adjust inventories to LIFO value | (15,943 | ) | (13,447 | ) | |||
Total inventories | $ | 104,801 | $ | 42,859 |
APRIL 30 | |||||||
(in thousands) | 2018 | 2017 | |||||
Land | $ | 4,751 | $ | 3,581 | |||
Buildings and improvements | 112,757 | 81,172 | |||||
Buildings and improvements - capital leases | 11,202 | 11,202 | |||||
Machinery and equipment | 274,723 | 187,836 | |||||
Machinery and equipment - capital leases | 30,270 | 29,378 | |||||
Construction in progress | 10,931 | 10,838 | |||||
444,634 | 324,007 | ||||||
Less accumulated amortization and depreciation | (226,532 | ) | (216,074 | ) | |||
Total | $ | 218,102 | $ | 107,933 |
APRIL 30 | |||||||
(in thousands) | 2018 | 2017 | |||||
Customer relationship intangibles, acquired December 29, 2017 | $ | 274,000 | $ | — | |||
Less accumulated amortization | (15,222 | ) | — | ||||
Total | $ | 258,778 | $ | — |
APRIL 30 | |||||||
(in thousands) | 2018 | 2017 | |||||
Trademarks, acquired December 29, 2017 | $ | 10,000 | $ | — | |||
Less accumulated amortization | (1,111 | ) | — | ||||
Total | $ | 8,889 | $ | — |
FISCAL YEARS ENDING APRIL 30 | |||||||||||||||||||||||||||
(in thousands) | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 AND THERE- AFTER | TOTAL OUTSTANDING | ||||||||||||||||||||
Term loans | $ | — | $ | 35,000 | $ | 50,000 | $ | 62,500 | $ | 312,500 | $ | — | $ | 460,000 | |||||||||||||
The Senior Notes | — | — | — | — | — | 350,000 | 350,000 | ||||||||||||||||||||
Economic development loans | 2,189 | 88 | 89 | 201 | 207 | 1,665 | 4,439 | ||||||||||||||||||||
Capital lease obligations | 1,948 | 1,786 | 1,342 | 713 | 639 | 817 | 7,245 | ||||||||||||||||||||
Other long-term debt | — | — | — | — | — | 6,660 | 6,660 | ||||||||||||||||||||
Total | $ | 4,137 | $ | 36,874 | $ | 51,431 | $ | 63,414 | $ | 313,346 | $ | 359,142 | $ | 828,344 | |||||||||||||
Debt issuance costs | $ | (14,304 | ) | ||||||||||||||||||||||||
Current maturities | $ | (4,143 | ) | ||||||||||||||||||||||||
Total long-term debt | $ | 809,897 |
FISCAL YEARS ENDED APRIL 30 | |||||||||||
(in thousands, except per share amounts) | 2018 | 2017 | 2016 | ||||||||
Numerator used in basic and diluted earnings per common share: | |||||||||||
Net income | $ | 63,141 | $ | 71,199 | $ | 58,723 | |||||
Denominator: | |||||||||||
Denominator for basic earnings per common share - | |||||||||||
weighted-average shares | 16,631 | 16,259 | 16,256 | ||||||||
Effect of dilutive securities: | |||||||||||
Stock options and restricted stock units | 114 | 139 | 186 | ||||||||
Denominator for diluted earnings per common share - | |||||||||||
weighted-average shares and assumed conversions | 16,745 | 16,398 | 16,442 | ||||||||
Net earnings per share | |||||||||||
Basic | $ | 3.80 | $ | 4.38 | $ | 3.61 | |||||
Diluted | $ | 3.77 | $ | 4.34 | $ | 3.57 |
FISCAL YEAR ENDED APRIL 30 | |||
2016 | |||
Weighted-average fair value of grants | $ | 18.59 | |
Expected volatility | 29.8 | % | |
Expected term in years | 5.8 | ||
Risk-free interest rate | 2.16 | % | |
Expected dividend yield | 0.0 | % |
NUMBER OF OPTIONS | WEIGHTED AVERAGE REMAINING CONTRACTUAL TERM | WEIGHTED AVERAGE EXERCISE PRICE | AGGREGATE INTRINSIC VALUE (in thousands) | |||||||
Outstanding at April 30, 2015 | 398,075 | 5.0 | $28.46 | $ | 8,851 | |||||
Granted | 30,700 | 9.1 | 57.11 | — | ||||||
Exercised | (287,975 | ) | — | 27.99 | 11,089 | |||||
Cancelled or expired | (14,167 | ) | — | 40.43 | — | |||||
Outstanding at April 30, 2016 | 126,633 | 5.8 | $35.15 | $ | 4,773 | |||||
Granted | — | — | — | — | ||||||
Exercised | (71,715 | ) | — | 33.00 | 2,597 | |||||
Cancelled or expired | — | — | — | — | ||||||
Outstanding at April 30, 2017 | 54,918 | 5.6 | $37.95 | $ | 2,963 | |||||
Granted | — | — | — | — | ||||||
Exercised | (36,950 | ) | — | 34.90 | 1,748 | |||||
Cancelled or expired | — | — | — | — | ||||||
Outstanding at April 30, 2018 | 17,968 | 4.5 | $44.23 | $ | 682 | |||||
Vested and expected to vest in the future at April 30, 2018 | 17,968 | 4.5 | $44.23 | $ | 682 | |||||
Exercisable at April 30, 2018 | 9,266 | 2.1 | $32.14 | $ | 464 |
OPTIONS OUTSTANDING | OPTIONS EXERCISABLE | ||||||||||
OPTION PRICE | REMAINING | EXERCISE | EXERCISE | ||||||||
PER SHARE | OPTIONS | LIFE | PRICE | OPTIONS | PRICE | ||||||
$22.77-$23.96 | 6,800 | 0.2 | $23.09 | 6,800 | $23.09 | ||||||
$57.11 | 11,168 | 7.1 | $57.11 | 2,466 | 57.11 | ||||||
17,968 | 9,266 |
PERFORMANCE-BASED RSUs | SERVICE-BASED RSUs | TOTAL RSUs | WEIGHTED AVERAGE GRANT DATE FAIR VALUE | |||||||
Issued and outstanding, April 30, 2015 | 210,944 | 103,850 | 314,794 | $27.15 | ||||||
Granted | 48,201 | 22,349 | 70,550 | $57.83 | ||||||
Cancelled due to non-achievement of performance goals | (19,657 | ) | — | (19,657 | ) | $29.92 | ||||
Settled in common stock | (89,665 | ) | (46,950 | ) | (136,615 | ) | $19.57 | |||
Forfeited | (9,056 | ) | (3,537 | ) | (12,593 | ) | $40.99 | |||
Issued and outstanding, April 30, 2016 | 140,767 | 75,712 | 216,479 | $40.88 | ||||||
Granted | 36,058 | 25,322 | 61,380 | $66.58 | ||||||
Cancelled due to non-achievement of performance goals | (4,270 | ) | — | (4,270 | ) | $64.55 | ||||
Settled in common stock | (45,509 | ) | (32,300 | ) | (77,809 | ) | $37.09 | |||
Forfeited | (1,979 | ) | (1,280 | ) | (3,259 | ) | $49.40 | |||
Issued and outstanding, April 30, 2017 | 125,067 | 67,454 | 192,521 | $50.09 | ||||||
Granted | 33,080 | 22,250 | 55,330 | $95.62 | ||||||
Cancelled due to non-achievement of performance goals | — | — | — | — | ||||||
Settled in common stock | (51,191 | ) | (28,447 | ) | (79,638 | ) | $32.96 | |||
Forfeited | (9,305 | ) | (6,198 | ) | (15,503 | ) | $71.91 | |||
Issued and outstanding, April 30, 2018 | 97,651 | 55,059 | 152,710 | $73.34 |
(in thousands) | 2018 | 2017 | 2016 | ||||||||
Cost of sales and distribution | $ | 667 | $ | 665 | $ | 608 | |||||
Selling and marketing expenses | 756 | 1,066 | 1,079 | ||||||||
General and administrative expenses | 1,674 | 1,738 | 1,922 | ||||||||
Stock-based compensation expense, before income taxes | $ | 3,097 | $ | 3,469 | $ | 3,609 |
APRIL 30 | |||||||
(in thousands) | 2018 | 2017 | |||||
CHANGE IN PROJECTED BENEFIT OBLIGATION | |||||||
Projected benefit obligation at beginning of year | $ | 165,173 | $ | 174,096 | |||
Interest cost | 5,727 | 5,772 |
APRIL 30 | |||||||
(in thousands) | 2018 | 2017 | |||||
CHANGE IN PROJECTED BENEFIT OBLIGATION | |||||||
Actuarial gains | (2,596 | ) | (4,672 | ) | |||
Benefits paid | (4,881 | ) | (10,023 | ) | |||
Projected benefit obligation at end of year | $ | 163,423 | $ | 165,173 | |||
CHANGE IN PLAN ASSETS | |||||||
Fair value of plan assets at beginning of year | $ | 137,141 | $ | 106,965 | |||
Actual return on plan assets | 4,884 | 12,895 | |||||
Company contributions | 19,319 | 27,304 | |||||
Benefits paid | (4,881 | ) | (10,023 | ) | |||
Fair value of plan assets at end of year | $ | 156,463 | $ | 137,141 | |||
Funded status of the plans | $ | (6,960 | ) | $ | (28,032 | ) |
APRIL 30 | |||||||||||
(in thousands) | 2018 | 2017 | 2016 | ||||||||
COMPONENTS OF NET PERIODIC PENSION BENEFIT COST | |||||||||||
Interest cost | $ | 5,727 | $ | 5,772 | $ | 7,014 | |||||
Expected return on plan assets | (8,936 | ) | (8,079 | ) | (8,142 | ) | |||||
Recognized net actuarial loss | 1,601 | 1,771 | 1,412 | ||||||||
Pension benefit cost | $ | (1,608 | ) | $ | (536 | ) | $ | 284 |
FISCAL YEARS ENDED APRIL 30 | |||
2018 | 2017 | ||
WEIGHTED-AVERAGE ASSUMPTIONS TO DETERMINE BENEFIT OBLIGATIONS | |||
Discount rate | 4.18 % | 4.12 % |
FISCAL YEARS ENDED APRIL 30 | |||||
2018 | 2017 | 2016 | |||
WEIGHTED-AVERAGE ASSUMPTIONS TO DETERMINE NET PERIODIC PENSION BENEFIT COST | |||||
Discount rate | 4.12 % | 4.06 % | 4.19% | ||
Expected return on plan assets | 6.5 % | 7.5 % | 7.5 % |
FISCAL YEAR | BENEFIT PAYMENTS (in thousands) | ||
2019 | $ | 6,251 | |
2020 | 6,625 | ||
2021 | 7,037 | ||
2022 | 7,395 | ||
2023 | 7,768 | ||
Years 2024-2028 | 43,988 |
FAIR VALUE MEASUREMENTS AT APRIL 30, 2018 | |||||||||||||
(in thousands) | TOTAL | QUOTED PRICES IN ACTIVE MARKETS (LEVEL 1) | SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | |||||||||
Cash Equivalents | $ | 448 | $ | 448 | — | — | |||||||
Equity Funds: | |||||||||||||
US Equity | 37,421 | 37,421 | — | — | |||||||||
International Equity | 25,135 | 25,135 | — | ||||||||||
Fixed Income Funds: | |||||||||||||
Investment Grade Fixed Income | 93,459 | 93,459 | — | — | |||||||||
Total plan assets | $ | 156,463 | $ | 156,463 | — | — |
FAIR VALUE MEASUREMENTS AT APRIL 30, 2017 | |||||||||||||
FAIR VALUE MEASUREMENTS AT | FAIR VALUE MEASUREMENTS AT | FAIR VALUE MEASUREMENTS AT | FAIR VALUE MEASUREMENTS AT | FAIR VALUE MEASUREMENTS AT | FAIR VALUE MEASUREMENTS AT | FAIR VALUE MEASUREMENTS AT | FAIR VALUE MEASUREMENTS AT | ||||||
(in thousands) | TOTAL | QUOTED PRICES IN ACTIVE MARKETS (LEVEL 1) | SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | |||||||||
Cash Equivalents | $ | 295 | $ | 295 | — | — | |||||||
Equity Funds: | |||||||||||||
Mutual Fund Equity | 78,335 | 78,335 | — | — | |||||||||
Fixed Income Funds: | |||||||||||||
Mutual Fund Tax Income | 45,290 | 45,290 | — | — | |||||||||
Plan assets at fair value | 123,920 | $ | 123,920 | — | — | ||||||||
Common Collective Funds: | |||||||||||||
Capital Preservation Fund1 | 13,221 | ||||||||||||
Total plan assets | $ | 137,141 |
PLAN ASSET ALLOCATION | |||||
2018 | 2018 | 2017 | |||
APRIL 30 | TARGET | ACTUAL | ACTUAL | ||
Equity Funds | 40.0 % | 40.0 % | 57.0 % | ||
Fixed Income Funds | 60.0 % | 60.0 % | 43.0 % | ||
Total | 100.0 % | 100.0 % | 100.0 % |
FISCAL YEARS ENDED APRIL 30 | |||||||||||
(in thousands) | 2018 | 2017 | 2016 | ||||||||
CURRENT EXPENSE | |||||||||||
Federal | $ | 8,668 | $ | 23,638 | $ | 18,239 | |||||
State | 1,290 | 4,189 | 3,195 | ||||||||
Foreign | 257 | — | — | ||||||||
Total current expense | 10,215 | 27,827 | 21,434 | ||||||||
DEFERRED EXPENSE | |||||||||||
Federal | 17,833 | 8,607 | 10,179 | ||||||||
State | 3,642 | 1,292 | 1,450 | ||||||||
Foreign | (71 | ) | — | — | |||||||
Total deferred expense | 21,404 | 9,899 | 11,629 | ||||||||
Total expense | 31,619 | 37,726 | 33,063 | ||||||||
Other comprehensive income (loss) | 50 | 4,391 | (4,110 | ) | |||||||
Total comprehensive income tax expense | $ | 31,669 | $ | 42,117 | $ | 28,953 |
FISCAL YEARS ENDED APRIL 30 | ||||||||
2018 | 2017 | 2016 | ||||||
Federal statutory rate | 30.4 | % | 35.0 | % | 35.0 | % | ||
Effect of: | ||||||||
Federal income tax credits | (0.5 | )% | (0.2 | )% | — | % | ||
Acquisition and integration costs | 1.2 | — | — | |||||
Stock compensation | (2.4 | ) | (1.3 | ) | — | |||
Meals and entertainment | 0.3 | 0.3 | 0.3 | |||||
Effect of Tax Act | 1.2 | — | — | |||||
Domestic production deduction | (0.8 | ) | (2.2 | ) | (2.5 | ) | ||
Other | 0.4 | (0.3 | ) | (0.1 | ) | |||
Total | (0.6 | )% | (3.7 | )% | (2.3 | )% | ||
Effective federal income tax rate | 29.8 | % | 31.3 | % | 32.7 | % | ||
State income taxes, net of federal tax effect | 3.6 | 3.3 | 3.3 | |||||
Effective income tax rate | 33.4 | % | 34.6 | % | 36.0 | % |
APRIL 30 | |||||||
(in thousands) | 2018 | 2017 | |||||
Deferred tax assets: | |||||||
Pension benefits | $ | — | $ | 8,852 | |||
Accounts receivable | 4,772 | 6,938 | |||||
Product liability | 2,180 | 1,272 | |||||
Employee benefits | 6,513 | 7,914 | |||||
State tax credit carryforwards | 3,937 | 4,083 | |||||
Other | 2,865 | 862 | |||||
Gross deferred tax assets, before valuation allowance | 20,267 | 29,921 | |||||
Valuation allowance | (2,467 | ) | (2,446 | ) | |||
Gross deferred tax assets, after valuation allowance | 17,800 | 27,475 | |||||
Deferred tax liabilities: | |||||||
Pension benefits | 1,035 | — | |||||
Inventory | 240 | 297 | |||||
Depreciation | 21,076 | 9,131 | |||||
Intangibles | 65,294 | — | |||||
Other | 986 | — | |||||
88,631 | 9,428 | ||||||
Net deferred tax (liability) asset | $ | (70,831 | ) | $ | 18,047 |
April 30 | ||||||||
(in thousands) | 2018 | 2017 | ||||||
Change in Unrecognized Tax Benefits | ||||||||
Balance at beginning of year | $ | 28 | $ | 30 | ||||
Reductions for tax positions of prior years | — | (2 | ) | |||||
Acquisitions, divestures, and other | 900 | — | ||||||
Balance at end of year | $ | 928 | $ | 28 |
APRIL 30 | |||||||
(in thousands) | 2018 | 2017 | |||||
PRODUCT WARRANTY RESERVE | |||||||
Beginning balance | $ | 3,262 | $ | 2,926 | |||
Acquisition | 119 | — | |||||
Accrual for warranties | 21,374 | 18,552 | |||||
Settlements | (20,710 | ) | (18,216 | ) | |||
Ending balance at fiscal year end | $ | 4,045 | $ | 3,262 |
FISCAL YEAR | OPERATING (in thousands) | CAPITAL (in thousands) | |||||
2019 | $ | 15,536 | $ | 2,138 | |||
2020 | 15,416 | 1,889 | |||||
2021 | 14,132 | 1,422 | |||||
2022 | 9,321 | 750 | |||||
2023 | 7,410 | 662 | |||||
2024 (and thereafter) | 32,026 | 828 | |||||
$ | 93,841 | $ | 7,689 | ||||
Less amounts representing interest (2% - 6.5%) | (444 | ) | |||||
Total obligations under capital leases | $ | 7,245 |
PERCENT OF ANNUAL GROSS SALES | |||||
2018 | 2017 | 2016 | |||
Customer A | 25.4% | 20.7% | 23.9% | ||
Customer B | 16.4% | 16.5% | 17.2% |
FAIR VALUE MEASUREMENTS AS OF APRIL 30, 2018 | |||||||||||
(in thousands) | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||
ASSETS: | |||||||||||
Certificates of deposit | $ | 9,500 | $ | — | $ | — | |||||
Mutual funds | 1,057 | — | — | ||||||||
Total assets at fair value | $ | 10,557 | $ | — | $ | — | |||||
FAIR VALUE MEASUREMENTS AS OF APRIL 30, 2017 | |||||||||||
(in thousands) | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||
ASSETS: | |||||||||||
Money market funds | $ | 50,146 | $ | — | $ | — | |||||
Mutual funds | 1,038 | — | — | ||||||||
Certificates of deposit | 72,250 | — | — | ||||||||
Total assets at fair value | $ | 123,434 | $ | — | $ | — |
FISCAL 2018 | 07/31/17 | 10/31/17 | 01/31/18 | 04/30/18 | |||||||||||
(in thousands, except per share amounts) | |||||||||||||||
Net sales | $ | 276,827 | $ | 274,769 | $ | 292,791 | $ | 405,887 | |||||||
Gross profit | 58,494 | 57,335 | 50,379 | 89,195 | |||||||||||
Income before income taxes | 31,372 | 31,463 | 3,764 | 28,161 | |||||||||||
Net income | 22,281 | 19,755 | 1,996 | 19,109 | |||||||||||
Earnings per share | |||||||||||||||
Basic | $ | 1.37 | $ | 1.22 | $ | 0.12 | $ | 1.09 | |||||||
Diluted | $ | 1.36 | $ | 1.21 | $ | 0.12 | $ | 1.08 | |||||||
FISCAL 2017 | 07/31/16 | 10/31/16 | 01/31/17 | 04/30/17 | |||||||||||
(in thousands, except per share amounts) | |||||||||||||||
Net sales | $ | 258,150 | $ | 264,076 | $ | 249,285 | $ | 258,737 | |||||||
Gross profit | 59,317 | 56,152 | 51,596 | 57,571 | |||||||||||
Income before income taxes | 31,960 | 28,430 | 21,773 | 26,762 | |||||||||||
Net income | 21,661 | 17,637 | 14,553 | 17,348 | |||||||||||
Earnings per share | |||||||||||||||
Basic | $ | 1.33 | $ | 1.08 | $ | 0.90 | $ | 1.07 | |||||||
Diluted | $ | 1.32 | $ | 1.07 | $ | 0.89 | $ | 1.06 |
/s/ S. CARY DUNSTON |
S. Cary Dunston |
Chairman and Chief Executive Officer |
/s/ M. SCOTT CULBRETH |
M. Scott Culbreth |
Senior Vice President and Chief Financial Officer |
Equity Compensation Plan Information | ||||||||||
Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) | |||||||
(a) | (b) | (c) | ||||||||
Equity compensation plans approved by security holders(1) | — | — | 841,504 | |||||||
Options | 17,968 | $ | 42.23 | — | ||||||
Performance-based restricted stock units | 97,651 | N/A | (2) | — | ||||||
Service-based restricted stock units | 55,059 | N/A | (2) | — | ||||||
Equity compensation plans not approved by security holders(3) | — | — | — | |||||||
Total | 170,678 | $42.23 | 841,504 |
(a)1. | Financial Statements |
(a)2. | Financial Statement Schedules |
(a)3. | Exhibits |
Agreement and Plan of Merger, dated as of November 30, 2017, among RSI Home Products, Inc., American Woodmark Corporation, Alliance Merger Sub, Inc. and Ronald M. Simon, solely in his capacity as the Stockholder Representative (incorporated by reference to Exhibit 2.1 to the Registrant’s Form 8-K as filed on December 1, 2017; Commission File No. 000-14798) | |
Articles of Incorporation as amended effective August 12, 1987 (incorporated by reference to Exhibit 3.1 to the Registrant’s Form 10-Q for the quarter ended January 31, 2003; Commission File No. 000-14798). | |
Articles of Amendment to the Articles of Incorporation effective September 10, 2004 (incorporated by reference to Exhibit 3.1 to the Registrant’s Form 8-K as filed on August 31, 2004; Commission File No. 000-14798). | |
Bylaws - as amended and restated effective August 24, 2017 (incorporated by reference to Exhibit 3.1 to the Registrant’s Form 8-K as filed on May 26, 2017; Commission File No. 000-14798). | |
4.1 | The Articles of Incorporation and Bylaws of the Registrant as currently in effect (incorporated by reference to Exhibits 3.1 and 3.2). |
Indenture, dated as of March 16, 2015, by and among RSI Home Products, Inc., the guarantors from time to time party thereto and Wells Fargo Bank, National Association, as Trustee and Collateral Agent (incorporated by reference to Exhibit 4.2 to the Registrant’s Form 10-Q for the quarter ended January 31, 2018; Commission File No. 000-14798). | |
Supplemental Indenture, dated as of December 15, 2017, among RSI Home Products, Inc., the guarantors party thereto and Wells Fargo Bank, National Association, as Trustee and Collateral Agent (incorporated by reference to Exhibit 4.3 to the Registrant’s Form 10-Q for the quarter ended January 31, 2018; Commission File No. 000-14798). | |
Second Supplemental Indenture, dated as of February 9, 2018, among RSI Home Products, Inc., the guarantors party thereto and Wells Fargo Bank, National Association, as Trustee and Collateral Agent (incorporated by reference to Exhibit 4.4 to the Registrant’s Form 10-Q for the quarter ended January 31, 2018; Commission File No. 000-14798). | |
Indenture, dated as of February 12, 2018, among American Woodmark Corporation, the guarantors from time to time party thereto and Wells Fargo Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.1 to the Registrant’s Form 8-K as filed on February 14, 2018; Commission File No. 000-14798). | |
Pursuant to Regulation S-K, Item 601(b)(4)(iii), instruments that define the rights of holders of the Registrant's long-term debt securities, where the long-term debt securities authorized under each such instrument do not exceed 10% of the Registrant's total assets, have been omitted and will be furnished to the Securities and Exchange Commission upon request. | |
Credit Agreement, dated as of December 2, 2009, between the Company and Wells Fargo Bank, N.A. (incorporated by reference to Exhibit 10.1 to the Registrant’s Form 10-Q for the quarter ended October 31, 2009; Commission File No. 000-14798). | |
Revolving Line of Credit Note, dated as of December 2, 2009, made by the Company in favor of Wells Fargo Bank, N.A. (incorporated by reference to Exhibit 10.3 to the Registrant’s Form 10-Q for the quarter ended October 31, 2009; Commission File No. 000-14798). | |
Amendment to Revolving Line of Credit Note and Credit Agreement, dated as of January 3, 2012, made by the Company in favor of Wells Fargo Bank, N.A. (incorporated by reference to Exhibit 10.1 to the Registrant’s Form 10-Q for the quarter ended January 31, 2012; Commission File No. 000-14798). | |
Second Amendment to Revolving Line of Credit Note and Credit Agreement, dated as of May 29, 2012, between the Company and Wells Fargo Bank, N.A. (incorporated by reference to Exhibit 10.1(e) of the Registrant’s Form 10-K for the fiscal year ended April 30, 2012; Commission File No. 000-14798 ). | |
Third Amendment to Revolving Line of Credit Note and Credit Agreement, dated as of March 18, 2013, between the Company and Wells Fargo Bank, N.A. (incorporated by reference to Exhibit 10.1 to the Registrant’s Form 8-K as filed on March 19, 2013; Commission File No. 000-14798). | |
Security Agreement (Financial Assets), dated as of April 26, 2012, between the Company and Wells Fargo Bank, N.A. (incorporated by reference to Exhibit 10.1 of the Registrant’s Form 10-Q for the quarter ended July 31, 2012; Commission File No. 000-14798). | |
Addendum to Security Agreement (Financial Assets), effective as of April 26, 2012, made by the Company in favor of Wells Fargo Bank, N.A. (incorporated by reference to Exhibit 10.1(i) of the Registrant’s Form 10-K for the fiscal year ended April 30, 2012; Commission File No. 000-14798). | |
Security Agreement, dated as of May 29, 2012, made by the Company in favor of Wells Fargo Bank, N.A. (incorporated by reference to Exhibit 10.1(j) of the Registrant’s Form 10-K for the fiscal year ended April 30, 2012; Commission File No. 000-14798). | |
Fifth Amendment to Revolving Line of Credit Note and Fourth Amendment to Credit Agreement, dated as of September 26, 2014, effective as of September 1, 2014, between the Company and Wells Fargo Bank, N.A. (incorporated by reference to Exhibit 10.1 to the Registrant's Form 8-K as filed on September 30, 2014; Commission File No. 000-14798). | |
Loan Agreement, dated as of February 9, 2005, by and between the Company and the Maryland Economic Development Corporation (incorporated by reference to Exhibit 10.1(n) to the Registrant’s Form 10-K for the fiscal year ended April 30, 2005; Commission File No. 000-14798). | |
First Amendment to Loan Agreement, dated as of April 4, 2008, by and between the Company and Maryland Economic Development Corporation (incorporated by reference to Exhibit 10.1(d) to the Registrant’s Form 10-K for the fiscal year ended April 30, 2008; Commission File No. 000-14798). | |
Second Amendment to Loan Agreement, dated as of April 23, 2013, by and between the Company and Maryland Economic Development Corporation (incorporated by reference to Exhibit 10.1(k) to the Registrant’s Form 10-K for the fiscal year ended April 30, 2013; Commission File No. 000-14798). | |
Commitment Letter, dated as of November 30, 2017, among American Woodmark Corporation, Wells Fargo Bank, National Association, and Wells Fargo Securities, LLC (incorporated by reference to Exhibit 10.1 to the Registrant’s Form 8-K as filed on December 1, 2017; Commission File No. 000-14798). |
Credit Agreement, dated as of December 29, 2017, by and among American Woodmark Corporation, as Borrower, the Lenders referred to therein as Lenders and Wells Fargo Bank, National Association, as Administrative Agent, Swingline Lender and Issuer Lender (incorporated by reference to Exhibit 10.1 to the Registrant’s Form 8-K as filed on January 5, 2018; Commission File No. 000-14798). | |
Collateral Agreement, dated as of December 29, 2017, by American Woodmark Corporation and certain of its subsidiaries, as Grantors, in favor of Wells Fargo Bank, National Association, as Administrative Agent (incorporated by reference to Exhibit 10.2 to the Registrant’s Form 8-K as filed on January 5, 2018; Commission File No. 000-14798). | |
Joinder Agreement, dated as of February 12, 2018, by American Woodmark Corporation and each of its subsidiary named therein in favor of Wells Fargo Bank, National Association, as Administrative Agent, for the benefit of the Secured Parties (incorporated by reference to Exhibit 10.3 to the Registrant’s Form 10-Q for the quarter ended January 31, 2018; Commission File No. 000-14798). | |
10.6 (a)(i) | Lease and Agreement, dated as of November 1, 1984, between the Company and Amwood Associates (incorporated by reference to Exhibit 10.6(a) to the Registrant’s Form S-1 for the fiscal year ended April 30, 1986; Commission File No. 33-6245). |
Fourth Amendment to Lease and Agreement, dated as of April 1, 2011, between the Company and Amwood Associates (incorporated by reference to Exhibit 10.6 of the Registrant’s Form 10-K for the fiscal year ended April 30, 2012; Commission File No. 000-14798). | |
Lease, dated as of December 15, 2000, between the Company and the Industrial Development Board of The City of Humboldt, Tennessee (incorporated by reference to Exhibit 10.6(d) to the Registrant’s Form 10-K for the fiscal year ended April 30, 2001; Commission File No. 000-14798). | |
Second Amended and Restated 2004 Stock Incentive Plan for Employees (incorporated by reference to Appendix A to the Registrant’s DEF-14A as filed on June 28, 2013; Commission File No. 000-14798).* | |
2006 Non-Employee Directors Equity Ownership Plan (incorporated by reference to Appendix A to the Registrant's DEF-14A as filed on July 12, 2006; Commission File No. 000-14798).* | |
Amendment to 2006 Non-Employee Directors Equity Ownership Plan, dated as of August 27, 2009 (incorporated by reference to Exhibit 10.4 to the Registrant’s Form 10-Q for the quarter ended July 31, 2009; Commission File No. 000-14798).* | |
2015 Non-Employee Directors Restricted Stock Unit Plan (incorporated by reference to Appendix A to the Registrant's Definitive Proxy Statement on Schedule 14A as filed on June 30, 2015; Commission File No. 000-14798). | |
Form of Grant Letter used in connection with awards of stock options granted under the Company’s Second Amended and Restated 2004 Stock Incentive Plan for Employees (incorporated by reference to Exhibit 10.5 to the Registrant’s Form 8-K as filed on June 5, 2013; Commission File No. 000-14798).* | |
Form of Grant Letter used in connection with awards of service-based restricted stock units granted under the Company’s Second Amended and Restated 2004 Stock Incentive Plan for Employees (incorporated by reference to Exhibit 10.6 to the Registrant’s Form 8-K as filed on June 5, 2013; Commission File No. 000-14798).* | |
Form of Grant Letter used in connection with awards of performance-based restricted stock units granted under the Company’s Second Amended and Restated 2004 Stock Incentive Plan for Employees (incorporated by reference to Exhibit 10.7 to the Registrant’s Form 8-K as filed on June 5, 2013; Commission File No. 000-14798).* | |
Form of Grant Letter used in connection with restricted stock unit awards granted under the Company's Second Amended and Restated 2004 Stock Incentive Plan for Employees (incorporated by reference to Exhibit 10.1 to the Registrant’s Form 8-K as filed on June 10, 2016; Commission File No. 000-14798).* | |
Employment Agreement for Mr. M. Scott Culbreth (incorporated by reference to Exhibit 10.1 to the Registrant’s Form 8-K as filed on August 27, 2014; Commission File No. 000-14798).* | |
Employment Agreement for Mr. R. Perry Campbell (incorporated by reference to Exhibit 10.2 to the Registrant’s Form 8-K as filed on August 27, 2014; Commission File No. 000-14798).* | |
Employment Agreement for Mr. S. Cary Dunston (incorporated by reference to Exhibit 10.1 to the Registrant’s Form 8-K as filed on August 31, 2015; Commission File No. 000-14798).* | |
Letter of Understanding for Mr. Kent Guichard (incorporated by reference to Exhibit 10.2 to the Registrant’s Form 8-K as filed on August 31, 2015; Commission File No. 000-14798).* | |
Employment Agreement for Mr. Robert Adams (incorporated by reference to Exhibit 10.3 to the Registrant’s Form 8-K as filed on August 31, 2015; Commission File No. 000-14798).* |
10.10 (a) | Promissory Note, dated July 30, 1998, made by the Company in favor of Amende Cabinet Corporation, a wholly owned subsidiary of the Company (incorporated by reference to Exhibit 10.10(f) to the Registrant’s Form 10-K for the fiscal year ended April 30, 1999; Commission File No. 000-14798). |
Loan Agreement, dated as of December 31, 2001, between the Company and Amende Cabinet Corporation, a wholly owned subsidiary of the Company (incorporated by reference to Exhibit 10.10(k) to the Registrant’s Form 10-K for the fiscal year ended April 30, 2002; Commission File No. 000-14798). | |
Equipment Lease, dated as of June 30, 2004, between the Company and the West Virginia Economic Development Authority (incorporated by reference to Exhibit 10.1(l) to the Registrant's Form 10-Q for the quarter ended July 31, 2004; Commission File No. 000-14798). | |
West Virginia Facility Lease, dated as of July 30, 2004, between the Company and the West Virginia Economic Development Authority (incorporated by reference to Exhibit 10.1(m) to the Registrant’s Form 10-Q for the quarter ended July 31, 2004; Commission File No. 000-14798). | |
2016 Employee Stock Incentive Plan (incorporated by reference to Exhibit A to the Registrant’s Definitive Proxy Statement on Schedule 14A as filed on June 29, 2016; Commission File No. 000-14798). | |
Form of Grant Letter used in connection with awards of service-based restricted stock units granted under the Company's 2016 Employee Stock Incentive Plan (incorporated by reference to Exhibit 10.1(a) to the Registrant’s Form 10-Q for the quarter ended July 31, 2017; Commission File No. 000-14798).* | |
Form of Grant Letter used in connection with awards of performance-based restricted stock units granted under the Company's 2016 Employee Stock Incentive Plan (incorporated by reference to Exhibit 10.1(b) to the Registrant’s Form 10-Q for the quarter ended July 31, 2017; Commission File No. 000-14798).* | |
Form of Grant Letter used in connection with awards of cultural-based restricted stock units granted under the Company's 2016 Employee Stock Incentive Plan (incorporated by reference to Exhibit 10.1(c) to the Registrant’s Form 10-Q for the quarter ended July 31, 2017; Commission File No. 000-14798).* | |
Shareholders Agreement, dated as of November 30, 2017, by and among American Woodmark Corporation and the shareholders party thereto (incorporated by reference to Exhibit 10.4 to the Registrant’s Form 10-Q for the quarter ended January 31, 2018; Commission File No. 000-14798). | |
Subsidiary of the Company (Filed Herewith). | |
Consent of KPMG LLP, Independent Registered Public Accounting Firm (Filed Herewith). | |
Certification of the Chief Executive Officer Pursuant to Rule 13a-14(a) of the Exchange Act (Filed Herewith). | |
Certification of the Chief Financial Officer Pursuant to Rule 13a-14(a) of the Exchange Act (Filed Herewith). | |
Certification of the Chief Executive Officer and Chief Financial Officer Pursuant to Rule 13a-14(b) of the Exchange Act and 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Furnished Herewith). | |
101 | Interactive Data File for the Registrant’s Annual Report on Form 10-K for the year ended April 30, 2018 formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Income (Loss); (iv) Consolidated Statements of Shareholders’ Equity, (v) Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements (Filed Herewith). |
Description (a) | Balance at Beginning of Year | Additions (Reductions) Charged to Cost and Expenses | Other | Deductions | Balance at End of Year | ||||||||||||||
Year ended April 30, 2018: | |||||||||||||||||||
Allowance for doubtful accounts | $ | 148 | $ | 169 | $ | 78 | $ | (136 | ) | (b) | $ | 259 | |||||||
Reserve for cash discounts | $ | 979 | $ | 11,999 | (c) | $ | 584 | $ | (11,935 | ) | (d) | $ | 1,627 | ||||||
Reserve for sales returns and allowances | $ | 2,131 | $ | 11,318 | (c) | $ | 1,829 | $ | (10,897 | ) | $ | 4,381 | |||||||
Year ended April 30, 2017: | |||||||||||||||||||
Allowance for doubtful accounts | $ | 171 | $ | 200 | $ | — | $ | (223 | ) | (b) | $ | 148 | |||||||
Reserve for cash discounts | $ | 827 | $ | 10,027 | (c) | $ | — | $ | (9,875 | ) | (d) | $ | 979 | ||||||
Reserve for sales returns and allowances | $ | 1,782 | $ | 7,962 | (c) | $ | — | $ | (7,613 | ) | $ | 2,131 | |||||||
Year ended April 30, 2016: | |||||||||||||||||||
Allowance for doubtful accounts | $ | 173 | $ | 108 | $ | — | $ | (110 | ) | (b) | $ | 171 | |||||||
Reserve for cash discounts | $ | 746 | $ | 9,570 | (c) | $ | — | $ | (9,489 | ) | (d) | $ | 827 | ||||||
Reserve for sales returns and allowances | $ | 1,594 | $ | 7,833 | (c) | $ | — | $ | (7,645 | ) | $ | 1,782 |
(a) | All reserves relate to accounts receivable. |
(b) | Principally write-offs, net of collections. |
(c) | Reduction of gross sales. |
(d) | Cash discounts granted. |
American Woodmark Corporation | ||
(Registrant) | ||
June 29, 2018 | /s/ S. CARY DUNSTON | |
S. Cary Dunston Chairman and Chief Executive Officer |
June 29, 2018 | /s/ S. CARY DUNSTON | June 29, 2018 | /s/ M. SCOTT CULBRETH | |||
S. Cary Dunston Chairman and Chief Executive Officer (Principal Executive Officer) Director | M. Scott Culbreth Senior Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) | |||||
June 29, 2018 | /s/ ANDREW B. COGAN | June 29, 2018 | /s/ JAMES G. DAVIS, JR. | |||
Andrew B. Cogan Director | James G. Davis, Jr. Director | |||||
June 29, 2018 | /s/ MARTHA M. HAYES | June 29, 2018 | /s/ DANIEL T. HENDRIX | |||
Martha M. Hayes Director | Daniel T. Hendrix Director | |||||
June 29, 2018 | /s/ CAROL B. MOERDYK | June 29, 2018 | /s/ DAVID W. MOON | |||
Carol B. Moerdyk Director | David W. Moon Director | |||||
June 29, 2018 | /s/ VANCE W. TANG | |||||
Vance W. Tang Director | ||||||
Name of Subsidiary | Jurisdiction of Incorporation |
Amende Cabinet Corporation | Virginia |
RSI Home Products, Inc. | Delaware |
Phocus Asia Limited | Hong Kong |
Phocus China Limited | People's Republic of China |
Professional Cabinet Solutions | California |
RSI Home Products, S. De R.L. De C.V. (99.9%) | Mexico |
RSI Home Products Manufacturing, Inc. | Delaware |
RSI Home Products, S. De R.L. De C.V. (0.1%) | Mexico |
RSI Home Products Sales, Inc. | Delaware |
RSI Home Products Management, Inc. | Delaware |
1. | I have reviewed this report on Form 10-K of American Woodmark Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: June 29, 2018 | /s/ S. CARY DUNSTON |
S. Cary Dunston | |
Chairman and Chief Executive Officer | |
(Principal Executive Officer) |
1. | I have reviewed this report on Form 10-K of American Woodmark Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: June 29, 2018 | /s/ M. SCOTT CULBRETH |
M. Scott Culbreth | |
Senior Vice President and Chief Financial Officer | |
(Principal Financial Officer) |
1. | The Annual Report on Form 10-K of American Woodmark Corporation (the "Company") for the annual period ended April 30, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: June 29, 2018 | /s/ S. CARY DUNSTON |
S. Cary Dunston | |
Chairman and Chief Executive Officer | |
(Principal Executive Officer) | |
Date: June 29, 2018 | /s/ M. SCOTT CULBRETH |
M. Scott Culbreth | |
Senior Vice President and Chief Financial Officer | |
(Principal Financial Officer) |
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Document and Entity Information - USD ($) |
12 Months Ended | ||
---|---|---|---|
Apr. 30, 2018 |
Jun. 22, 2018 |
Oct. 31, 2017 |
|
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | Apr. 30, 2018 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | AMERICAN WOODMARK CORP | ||
Entity Central Index Key | 0000794619 | ||
Trading Symbol | amwd | ||
Current Fiscal Year End Date | --04-30 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Common Stock, Shares Outstanding | 17,546,622 | ||
Entity Public Float | $ 1,366,648,307 |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Apr. 30, 2018 |
Apr. 30, 2017 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 1.00 | $ 1.00 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, no par value | $ 0 | $ 0 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 17,503,922 | 16,232,775 |
Common stock, shares outstanding | 17,503,922 | 16,232,775 |
Consolidated Statements of Income - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Apr. 30, 2018 |
Apr. 30, 2017 |
Apr. 30, 2016 |
|
Income Statement [Abstract] | |||
Net sales | $ 1,250,274 | $ 1,030,248 | $ 947,045 |
Cost of sales and distribution | 994,871 | 805,612 | 747,351 |
Gross Profit | 255,403 | 224,636 | 199,694 |
Selling and marketing expenses | 77,843 | 70,979 | 66,489 |
General and administrative expenses | 69,855 | 45,419 | 40,045 |
Operating Income | 107,705 | 108,238 | 93,160 |
Interest expense (income), net | 13,054 | (521) | 129 |
Other (income) expense | (109) | (166) | 1,245 |
Income Before Income Taxes | 94,760 | 108,925 | 91,786 |
Income tax expense | 31,619 | 37,726 | 33,063 |
Net Income | $ 63,141 | $ 71,199 | $ 58,723 |
Earnings per share | |||
Basic (usd per share) | $ 3.80 | $ 4.38 | $ 3.61 |
Diluted (usd per share) | $ 3.77 | $ 4.34 | $ 3.57 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
12 Months Ended | ||
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Apr. 30, 2018 |
Apr. 30, 2017 |
Apr. 30, 2016 |
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Statement of Comprehensive Income [Abstract] | |||
Net income | $ 63,141 | $ 71,199 | $ 58,723 |
Other comprehensive income (loss) net of tax: | |||
Change in pension benefits, net of deferred taxes of $9,510, $3,944 and $2,905, respectively | 88 | 6,868 | (6,428) |
Total Comprehensive Income | $ 63,229 | $ 78,067 | $ 52,295 |
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands |
12 Months Ended | ||
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Apr. 30, 2018 |
Apr. 30, 2017 |
Apr. 30, 2016 |
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Statement of Comprehensive Income [Abstract] | |||
Other comprehensive income (loss) | $ 50 | $ 4,391 | $ (4,110) |
Summary of Significant Accounting Policies |
12 Months Ended |
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Apr. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies American Woodmark Corporation (“American Woodmark,” the “Company,” “we,” “our” or “us”) manufactures and distributes kitchen, bath and home organization products for the remodeling and new home construction markets. Its products are sold on a national basis directly to home centers, builders and through a network of independent dealers and distributors. The Company operates within a single reportable segment primarily within the U.S.; long-lived assets and sales outside the U.S. are not significant. The following is a description of the Company’s significant accounting policies: Principles of Consolidation and Basis of Presentation: The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Inter-company accounts and transactions have been eliminated in consolidation. Revenue Recognition: The Company recognizes revenue when product is delivered to the customer and title has passed. Revenue is based on invoice price less allowances for sales returns, cash discounts and other deductions. Cost of Sales and Distribution: Cost of sales and distribution includes all costs associated with the manufacture and distribution of the Company’s products including the costs of shipping and handling. Advertising Costs: Advertising costs are expensed as incurred. Advertising expenses for fiscal years 2018, 2017 and 2016 were $40.1 million, $41.0 million and $38.1 million, respectively. Cash and Cash Equivalents: Cash in excess of operating requirements is invested in money market accounts which are carried at cost (which approximates fair value). The Company considers all highly liquid short-term investments with an original maturity of three months or less when purchased to be cash equivalents. Cash equivalents were $50.1 million at April 30, 2017. There were no cash equivalents at April 30, 2018. Investments in Certificates of Deposit: The Company invests excess cash in certificates of deposit which are carried at cost (which approximates fair value). Certificates of deposit with original maturities greater than three months and remaining maturities less than one year are classified as current assets. Certificates of deposit with remaining maturities greater than one year are classified as long-term assets. Inventories: Inventories are stated at lower of cost or market. Inventory costs are determined by the last-in, first-out (LIFO) method and for certain subsidiaries by the first-in, first-out (FIFO) method. The LIFO cost reserve is determined in the aggregate for inventory and is applied as a reduction to inventories determined on the FIFO method. FIFO inventory cost approximates replacement cost. Property, Plant and Equipment: Property, plant and equipment is stated on the basis of cost less accumulated depreciation. Depreciation is provided by the straight-line method over the estimated useful lives of the related assets, which range from 15 to 30 years for buildings and improvements and 3 to 12 years for machinery and equipment. Assets under capital leases are amortized over the shorter of their estimated useful lives or the term of the related lease. Impairment of Long-Lived Assets: The Company reviews its long-lived assets for impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. During fiscal years 2018, 2017 and 2016, the Company concluded no impairment existed. Goodwill and Other Intangible Assets: Goodwill represents the excess of purchase price over the fair value of net assets acquired. The Company does not amortize goodwill but evaluates for impairment annually, or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. In accordance with the accounting standards, an entity has the option first to assess qualitative factors to determine whether events and circumstances indicate that it is more likely than not that goodwill is impaired. If after such assessment an entity concludes that the asset is not impaired, then the entity is not required to take further action. However, if an entity concludes otherwise, then it is required to determine the fair value of the asset using a quantitative impairment test, and if impaired, the associated assets must be written down to fair value. During fiscal years 2018, 2017 and 2016, the Company concluded no impairment existed. Intangible assets consist of customer relationship intangibles and trademarks. The Company amortizes the cost of other intangible assets over their estimated useful lives, which range from 3 to 6 years, unless such lives are deemed indefinite. During fiscal years 2018, 2017 and 2016, the Company concluded no impairment existed. Promotional Displays: The Company invests in promotional displays in retail stores to demonstrate product features, product and quality specifications and to serve as a training tool for retail kitchen designers. The Company invests in these long-lived productive assets to provide the aforementioned benefits. The Company's investment in promotional displays is carried at cost less applicable amortization. Amortization is provided by the straight-line method on an individual display basis over periods of 30 to 60 months (the estimated period of benefit). Promotional display amortization expense for fiscal years 2018, 2017 and 2016 was $4.5 million, $3.4 million and $3.4 million, respectively, and is included in selling and marketing expenses. Income Taxes: The Company accounts for deferred income taxes utilizing the asset and liability method, whereby deferred tax assets and liabilities are recognized based on the tax effects of temporary differences between the financial statement amounts and the tax basis of assets and liabilities, using enacted tax rates in effect for the year in which these items are expected to reverse. At each reporting date, the Company evaluates the need for a valuation allowance to adjust deferred tax assets and liabilities to an amount that more likely than not will be realized. Pensions: The Company has two non-contributory defined benefit pension plans covering many of the Company’s employees hired before April 30, 2012. Both defined benefit pension plans were frozen effective April 30, 2012. The Company recognizes the overfunded or underfunded status of its defined benefit pension plans, measured as the difference between the fair value of plan assets and the benefit obligation, in its consolidated balance sheets. The Company also recognizes the actuarial gains and losses and the prior service costs, credits and transition costs as a component of other comprehensive income (loss), net of tax. Stock-Based Compensation: The Company recognizes stock-based compensation expense based on the grant date fair value over the requisite service period. Self Insurance: The Company is self-insured for certain costs related to employee medical coverage, workers’ compensation liability, general liability, auto liability and property insurance. The Company maintains stop-loss coverage with third-party insurers to limit total exposure. The Company establishes a liability at each balance sheet date based on estimates for a variety of factors that influence the Company’s ultimate cost. In the event that actual experience is substantially different from the estimates, the financial results for the period could be adversely affected. The Company believes that the methodologies used to estimate insurance liabilities are an accurate reflection of the liabilities as of the date of the balance sheet. Recent Accounting Pronouncements: In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, “Revenue from Contracts with Customers: Topic 606.” ASU 2014-09 supersedes the revenue recognition requirements in “Accounting Standard Codification 605 - Revenue Recognition” and most industry-specific guidance. The standard requires that entities recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. ASU 2014-09 permits the use of either the retrospective or cumulative effect transition method. In August 2015, the FASB issued ASU No. 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date." ASU 2015-14 defers the effective date of ASU 2014-09 by one year to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that period. The Company does not expect the adoption of ASU 2014-09 and ASU 2015-14 to have a material impact on results of operations, cash flows and financial position. The Company is continuing its assessment of the new standard, including the impact on processes, accounting policies, disclosures and internal controls over financial reporting. The Company is continuing to evaluate the impact of ASU 2014-09 primarily to determine the transition method to utilize at adoption and the additional disclosures required. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)." ASU 2016-02 requires lessees to recognize most leases on-balance sheet, which will increase reported assets and liabilities. Lessor accounting remains substantially similar to current U.S. GAAP. ASU 2016-02 supersedes "Topic 840 - Leases." ASU 2016-02 is effective for public companies for annual and interim periods in fiscal years beginning after December 15, 2018. ASU 2016-02 mandates a modified retrospective transition method for all entities. The Company is currently assessing the impact that ASU 2016-02 will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Shares-Based Payment Accounting.” ASU 2016-09 is intended to improve the accounting for share-based payment transactions as part of the FASB’s simplification initiative. ASU 2016-09 changes several aspects of the accounting for share-based payment award transactions, including: (1) accounting for income taxes; (2) classification of excess tax benefits on the statement of cash flows; (3) forfeitures; (4) minimum statutory tax withholding requirements; and (5) classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax-withholding purposes. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, and interim periods within those years for public companies. The Company early adopted this standard as of May 1, 2016. As a result, during fiscal 2017, it recognized the excess tax benefit of $1.3 million as income tax benefit on the condensed consolidated statements of income (adopted prospectively). The adoption did not impact the existing classification of the awards. Excess tax benefits from stock based compensation is now classified in net income in the statement of cash flows instead of being separately stated in financing activities for the twelve months ended April 30, 2017 (adopted prospectively). Additionally, the Company reclassified $2.8 million and $1.4 million of employee withholding taxes paid from operating activities into financing activities in the statement of cash flows for the twelve month periods ended April 30, 2016 and 2015, respectively, as required by ASU 2016-09 (adopted retrospectively). Following the adoption of the new standard, the Company elected to continue estimating the number of awards expected to be forfeited and adjust its estimate on an ongoing basis. In March 2017, the FASB issued ASU No. 2017-07, "Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." ASU 2017-07 requires an employer to disaggregate the service cost component from the other components of net benefit (income) cost. The other components of net benefit (income) cost are required to be presented in the income statement separately from the service cost component and outside of operating income. The amendments also allow only the service cost component of net benefit (income) cost to be eligible for capitalization. The amendments in this ASU are effective for fiscal years beginning after December 15, 2017. The amendments in this ASU should be applied (1) retrospectively for the presentation of the service cost component and the other components of net periodic pension (income) cost and net periodic postretirement benefit (income) cost on the income statement, and (2) prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension (income) cost and net periodic postretirement benefit (income) cost in assets. The Company is evaluating the effect this guidance will have on its results of operations, cash flows and financial position. In February 2018, the FASB issued ASU No. 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, to address a specific consequence of the Tax Act by allowing a reclassification from accumulated other comprehensive income (loss) to retained earnings for stranded tax effects resulting from the Tax Act's reduction of the U.S. federal corporate income tax rate. The standard is effective for all entities for annual periods beginning after December 15, 2018, with early adoption permitted, and is to be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act is recognized. The Company early adopted this ASU on April 30, 2018 and as a result recorded a net increase to retained earnings and decrease to accumulated other comprehensive income (loss) of $8.7 million to reclassify the income tax effects of the Tax Act on the Company’s pension plans. Other than those effects related to the Tax Act, the Company’s policy is to release stranded tax effects related to its pension plan from other comprehensive income only upon termination or full settlement of the plan. Use of Estimates: The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during each reporting period. Actual results could differ from those estimates. Reclassifications: Certain reclassifications have been made to prior period balances to conform to the current year presentation. |
Acquisition of RSI Home Products, Inc. (the "RSI Acquisition") |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition of RSI Home Products, Inc. (the RSI Acquisition) | Acquisition of RSI Home Products, Inc. (the "RSI Acquisition") On November 30, 2017, American Woodmark, Alliance Merger Sub, Inc. ("Merger Sub"), RSI Home Products, Inc. ("RSI") and Ronald M. Simon, as the RSI stockholder representative, entered into a merger agreement (the "Merger Agreement"), pursuant to which the parties agreed to merge Merger Sub with and into RSI pursuant to the terms and subject to the conditions set forth in the Merger Agreement, with RSI continuing as the surviving corporation and as a wholly owned subsidiary of American Woodmark. On December 29, 2017 (the "Acquisition Date"), the Company consummated the RSI Acquisition pursuant to the terms of the Merger Agreement. As a result of the merger of Merger Sub with and into RSI, Merger Sub’s separate corporate existence ceased, and RSI continued as the surviving corporation and a wholly owned subsidiary of American Woodmark. RSI is a leading manufacturer of kitchen and bath cabinetry and home organization products. The acquisition is expected to enable the Company to make further progress in implementing its business strategy of increasing operational efficiency to drive enhanced profitability, leveraging differentiated service platforms to grow revenue, and continuing to deepen relationships within its existing customer base. In connection with the RSI Acquisition, on December 29, 2017, the Company entered into a credit agreement (the "Credit Agreement") with a syndicate of lenders and Wells Fargo Bank, National Association ("Wells Fargo"), as administrative agent, providing for a $100 million, 5-year revolving loan facility with a $25 million sub-facility for the issuance of letters of credit (the “Revolving Facility”), a $250 million, 5-year initial term loan facility (the "Initial Term Loan") and a $250 million delayed draw term loan facility (the "Delayed Draw Term Loan" and, together with the Revolving Facility and the Initial Term Loan, the "Credit Facilities") (See Note G--Loans Payable and Long-Term Debt for further details). American Woodmark used the full proceeds of the Initial Term Loan and approximately $50 million in loans under the Revolving Facility, together with cash on its balance sheet, to fund the cash portion of the RSI Acquisition consideration and its transaction fees and expenses. At the closing of the RSI Acquisition, American Woodmark assumed approximately $589 million (including accrued interest) of RSI’s indebtedness consisting largely of RSI’s 6½% Senior Secured Second Lien Notes due 2023 (the "RSI Notes"). (See Note G--Loans Payable and Long-Term Debt). Preliminary Allocation of Purchase Price to Assets Acquired and Liabilities Assumed As consideration for the RSI Acquisition, American Woodmark paid total accounting consideration of $554.2 million including cash consideration of $364.4 million, net of cash acquired, and 1,457,568 newly issued shares of American Woodmark common stock valued at $189.8 million based on $130.25 per share, which was the closing stock price on the Acquisition Date. The consideration paid was subject to a working capital adjustment by which the consideration was adjusted as the amount of working capital delivered at the Acquisition Date was less than a target amount. The working capital adjustment has been finalized and the accounting consideration does reflect the adjustment to the estimated working capital reflected in the consideration paid at the Acquisition Date. The Company accounted for the acquisition of RSI as a business combination, which requires the Company to record the assets acquired and liabilities assumed at fair value. The amount by which the purchase price exceeds the fair value of net assets acquired is recorded as goodwill. The Company has commenced the appraisals necessary to assess the fair values of the tangible and intangible assets acquired and liabilities assumed and the amount of goodwill to be recognized as of the Acquisition Date. The amounts recorded for certain assets and liabilities are preliminary in nature and are subject to adjustment as additional information is obtained about the facts and circumstances that existed as of the Acquisition Date. The final determination of the fair values of certain assets and liabilities will be completed within the measurement period of up to one year from the Acquisition Date permitted under GAAP. The final values may also result in changes to depreciation and amortization expense related to certain assets such as buildings, equipment and intangible assets. Any potential adjustments made could be material in relation to the preliminary values presented in the table below. The following table summarizes the allocation of the preliminary purchase price as of the Acquisition Date, which is based on the accounting consideration of $554.2 million, to the estimated fair value of assets acquired and liabilities assumed (in thousands):
The fair value of the assets acquired and liabilities assumed were preliminarily determined using income, market and cost valuation methodologies. The fair value of debt acquired was determined using Level 1 inputs as quoted prices in active markets for identical liabilities were available. The fair value measurements, aside from debt, were estimated using significant inputs that are not observable in the market and thus represent Level 3 measurements as defined in Accounting Standards Codification (ASC) 820. The income approach was primarily used to value the customer relationship intangibles and trademarks. The income approach determines value for an asset or liability based on the present value of cash flows projected to be generated over the remaining economic life of the asset or liability being measured. Both the amount and the duration of the cash flows are considered from a market participant perspective. Our estimates of market participant net cash flows considered historical and projected product pricing, operational performance including company specific synergies, product life cycles, material and labor pricing, and other relevant customer, contractual and market factors. The net cash flows are discounted to present value using a discount rate that reflects the relative risk of achieving the cash flow and the time value of money. The market approach is a valuation technique that uses prices and other relevant information generated by market transactions involving identical or comparable assets, liabilities, or a group of assets or liabilities. The cost approach estimates value by determining the current cost of replacing an asset with another of equivalent economic utility. The cost to replace a given asset reflects the estimated reproduction or replacement cost for the property, less an allowance for loss in value due to depreciation. The cost and market approaches were used to value inventory, while the cost approach was the primary approach used to value property, plant and equipment. The preliminary purchase price allocation resulted in the recognition of $767.5 million of goodwill, which is not expected to be amortizable for tax purposes. The goodwill recognized is attributable to expected revenue synergies generated by the integration of the Company’s products with RSI's, cost synergies resulting from purchasing and manufacturing activities, and intangible assets that do not qualify for separate recognition, such as the assembled workforce of RSI. Customer receivables were recorded at the contractual amounts due of $57.1 million, less an allowance for returns and discounts of $2.4 million, and an allowance for doubtful accounts of $0.1 million, which approximates their fair value. Determining the fair value of assets acquired and liabilities assumed requires the exercise of significant judgment, including the amount and timing of expected future cash flows, long-term growth rates and discount rates. The cash flows employed in the valuation are based on the Company’s best estimates of future sales, earnings and cash flows after considering factors such as general market conditions, expected future customer orders, contracts with suppliers, labor costs, changes in working capital, long term business plans and recent operating performance. Use of different estimates and judgments could yield different results. Impact to Financial Results for the Fiscal Year Ended April 30, 2018 RSI’s financial results have been included in our consolidated financial results for the period from the Acquisition Date to April 30, 2018. As a result, our consolidated financial results for the fiscal year ended April 30, 2018 do not reflect a full year of RSI results. From December 29, 2017 to April 30, 2018, RSI generated net sales of approximately $177.7 million and an operating income of approximately $9.1 million, inclusive of intangible amortization and adjustments to account for the acquisition, including a $6.3 million charge to cost of sales as a result of the step-up of inventory as of the Acquisition Date to fair value. The Company incurred approximately $12.9 million of transaction costs associated with the RSI Acquisition during the twelve months ended April 30, 2018 which the Company expensed as incurred. These costs are included in general and administrative expenses on the Consolidated Statements of Income. Supplemental Pro Forma Financial Information (unaudited) The following table presents summarized unaudited pro forma financial information as if RSI had been included in the Company’s financial results for the entire fiscal years ended April 30, 2018 and 2017:
(1) Includes stock compensation expense of $17.5 million and $7.4 million for the fiscal year ended April 30, 2018 and 2017, respectively, calculated under the intrinsic value method in measuring stock-based liability awards related to stock-based grants made by RSI prior to the RSI Acquisition. The unaudited supplemental pro forma financial data above assumes the RSI Acquisition occurred on May 1, 2016 and has been calculated after applying the Company’s accounting policies and adjusting the historical results of RSI with pro forma adjustments, net of a statutory tax rate of 34.4% and 40.4% for the fiscal years ended April 30, 2018 and 2017, respectively. Significant pro forma adjustments include the recognition of additional amortization expense related to acquired intangible assets (net of historical amortization expense of RSI), additional interest expense related to the initial term loan facility used to finance the acquisition, and elimination of the inventory fair value step-up expense and transaction related expenses which are non-recurring in nature. These adjustments assume the application of fair value adjustments to intangibles and that the $300.0 million borrowed under the Credit Agreement occurred on May 1, 2016 and are as follows: amortization expense, net of tax, of $20.0 million and $27.2 million for the fiscal years ended April 30, 2018 and 2017, respectively; interest expense, net of tax, (including amortization expense related to $6.7 million of debt issuance costs, which are being amortized over a period of 5 years) of $2.4 million and $4.4 million for the fiscal years ended April 30, 2018 and 2017, respectively. The following amounts have been excluded: inventory fair value step-up expense, net of tax, of $4.1 million for the fiscal year ended April 30, 2018; and transaction expense add-back, net of tax, of $8.5 million and $1.6 million for the fiscal years ended April 30, 2018 and 2017. The unaudited supplemental pro forma financial information does not reflect the realization of any expected ongoing cost or revenue synergies relating to the integration of the two companies. Further, the pro forma data should not be considered indicative of the results that would have occurred if the RSI Acquisition, related financing and associated issuance of Senior Notes (defined herein) and repurchase or redemption of the RSI Notes had been actually consummated on May 1, 2016, nor are they indicative of future results. |
Customer Receivables |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Customer Receivables | Customer Receivables The components of customer receivables were:
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Inventories |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories The components of inventories were:
Of the total inventory of $104.8 million, $56.6 million is carried under the FIFO method and $48.2 is carried under the LIFO methods of accounting. |
Property, Plant and Equipment |
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Property, Plant and Equipment | Property, Plant and Equipment The components of property, plant and equipment were:
Amortization and depreciation expense on property, plant and equipment amounted to $21.9 million, $14.2 million and $11.6 million in fiscal years 2018, 2017 and 2016, respectively. Accumulated amortization on capital leases included in the above table amounted to $30.0 million and $29.7 million as of April 30, 2018 and 2017, respectively. |
Loans Payable and Long-Term Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Payable and Long-Term Debt | Loans Payable and Long-Term Debt Maturities of long-term debt are as follows:
The Credit Facilities On December 29, 2017, the Company entered into the Credit Agreement, which provides for the Revolving Facility, the Initial Term Loan and the Delayed Draw Term Loan. Also on December 29, 2017, the Company borrowed the entire $250 million available under the Initial Term Loan and approximately $50 million under the Revolving Facility to fund, in part, the cash portion of the RSI Acquisition consideration and the Company’s transaction fees and expenses related to the RSI Acquisition. On February 12, 2018, the Company borrowed the entire $250 million under the Delayed Draw Term Loan in connection with the refinancing of the RSI Notes as discussed below or to repay, in part, amounts outstanding under the Revolving Facility. In connection with its entry into the Credit Agreement, the Company terminated its prior $35 million revolving credit facility with Wells Fargo. The Company is required to make specified quarterly installments on both the Initial Term Loan and the Delayed Draw Loan. As of April 30, 2018, $230 million remained outstanding on each of the Initial Term Loan and Delayed Draw Term Loan and no amount was outstanding on the Revolving Facility. The Credit Facilities mature on December 29, 2022. Amounts outstanding under the Credit Facilities bear interest based on a fluctuating rate measured by reference to either, at the Company’s option, a base rate plus an applicable margin or LIBOR plus an applicable margin, with the applicable margin being determined by reference to the Company’s then-current “Total Funded Debt to EBITDA Ratio.” The Company will also incur a quarterly commitment fee on the average daily unused portion of the Revolving Facility during the applicable quarter at a rate per annum also determined by reference to the Company’s then-current “Total Funded Debt to EBITDA Ratio.” In addition, a letter of credit fee will accrue on the face amount of any outstanding letters of credit at a per annum rate equal to the applicable margin on LIBOR loans, payable quarterly in arrears. As of April 30, 2018, the applicable margin with respect to base rate loans and LIBOR loans was 1.25% and 2.25%, respectively, and the commitment fee was 0.30%. The Credit Agreement includes negative covenants restricting the ability of the Company and its subsidiaries to incur additional indebtedness, create additional liens on its assets, make certain investments, dispose of its assets or engage in a merger or other similar transaction or engage in transactions with affiliates, subject, in each case, to the various exceptions and conditions described in the Credit Agreement. The negative covenants further restrict the Company’s ability to make certain restricted payments, including the payment of dividends, in certain limited circumstances. As of April 30, 2108, the Company was in compliance with the restrictive covenants included in the Credit Agreement. The Credit Agreement also includes financial covenants that require the Company to maintain a Fixed Charge Coverage Ratio (as defined in the Credit Agreement) of no less than 1.25 to 1.00 and a Total Secured Debt to EBITDA Ratio (as defined in the Credit Agreement) of no more than 2.50 to 1.00. The Credit Agreement further requires that the Company not exceed a specified Total Funded Debt to EBITDA Ratio (as defined in the Credit Agreement). The Total Funded Debt to EBITDA Ratio currently applicable to the Company is 3.75 to 1.00 and will decrease to 3.50 to 1.00 beginning April 30, 2019 and to 3.25 to 1.00 beginning April 30, 2020. At April 30, 2018, the Company’s Fixed Charge Coverage Ratio was 3.12, its Total Secured Debt to EBITDA Ratio was 1.87 and its Total Funded Debt to EBITDA Ratio was 3.25. As of April 30, 2018, the Company’s obligations under the Credit Agreement were guaranteed by the Company’s subsidiaries and the obligations of the Company and its subsidiaries were secured by a pledge of substantially all of their respective personal property. The Senior Notes On February 12, 2018, the Company issued $350 million in aggregate principal amount of 4.875% Senior Notes due 2026 (the “Senior Notes”). The Senior Notes will mature on March 15, 2026. Proceeds from the sale of the Senior Notes were used to refinance the RSI Notes, as discussed below, and to repay, in part, amounts outstanding under the Revolving Facility. Interest on the Senior Notes is payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2018. The Senior Notes are, and will be, fully and unconditionally guaranteed by each of the Company’s current and future wholly-owned domestic subsidiaries that guarantee the Company’s obligations under the Credit Agreement. The indenture governing the Senior Notes restricts the ability of the Company and the Company’s “restricted subsidiaries” to, as applicable, (i) incur additional indebtedness or issue certain preferred shares, (ii) create liens, (iii) pay dividends, redeem or repurchase stock or make other distributions or restricted payments, (iv) make certain investments, (v) create restrictions on the ability of the “restricted subsidiaries” to pay dividends to the Company or make other intercompany transfers, (vi) transfer or sell assets, (vii) merge or consolidate with a third party and (viii) enter into certain transactions with affiliates of the Company, subject, in each case, to certain qualifications and exceptions as described in the indenture. As of April 30, 2108, the Company was in compliance with all covenants under the indenture governing the Senior Notes. At April 30, 2018, the book value of the Senior Notes was $350 million and the fair value was $339 million, based on Level 2 inputs. See Note O -- Fair Value Measurements for a discussion of Level 2 inputs. The RSI Notes On December 29, 2017, as a result of the closing of the RSI Acquisition, the Company assumed, through its acquisition of all of the equity interests of RSI, the RSI Notes. As of December 29, 2017, the RSI Notes had a fair value of $602.3 million. The Company utilized the proceeds from the issuance of the Senior Notes and borrowings under the Delayed Draw Term Loan, together with cash on hand, to (A) fund (i) the redemption of $115 million in aggregate principal amount of the RSI Notes on February 26, 2018, (ii) the purchase of approximately $449.1 million in aggregate principal amount of the RSI Notes on February 12, 2018 pursuant to a tender offer that commenced on January 29, 2018 and (iii) the redemption of approximately $10.9 million in aggregate principal amount of the RSI Notes on February 28, 2018 pursuant to a make-whole call, and (B) repaid $30 million of the amount borrowed under the Revolving Facility in connection with the closing of the RSI Acquisition. As a result of these redemptions and the tender offer, none of the RSI Notes remain outstanding. Other RSI Debt On December 29, 2017, the Company also assumed, through its acquisition of all of the equity interests of RSI, $2.8 million of subordinated promissory notes payable to certain current and former RSI employees. The promissory notes each have a term of 5 years, bear interest at rates ranging from 1.01% to 2.12% per annum, may be prepaid by RSI at any time without penalty and are due in annual installments of principal and interest on their respective anniversary dates. The notes were issued in exchange for the cancellation of vested stock options of RSI either upon the termination of the applicable employee or immediately prior to the expiration of such options. During the fourth fiscal quarter of fiscal 2018 these notes were repaid in full. Economic Development Loans In 2005, the Company entered into two separate loan agreements with the Maryland Economic Development Corporation and the County Commissioners of Allegany County as part of the Company’s capital investment and operations at the Allegany County, Maryland site. These loan agreements were amended in 2013 and 2008. The aggregate balance of these loan agreements was $2.2 million as of April 30, 2018 and 2017. The loan agreements expire at December 31, 2018 and bear interest at a fixed rate of 3% per annum. These loan agreements are secured by mortgages on the manufacturing facility constructed in Allegany County, Maryland. These loan agreements defer principal and interest during the term of the obligation and forgive any outstanding balance at December 31, 2018, if the Company complies with certain employment levels at the facility. In 2015, the Company entered into a $1.5 million loan agreement with the West Virginia Economic Development Authority as part of the Company's capital investment and operations at the South Branch plant located in Hardy County, West Virginia. The loan agreement expires on February 1, 2025 and bears interest at a fixed rate of 3% per annum. The loan agreement is secured by certain equipment. It defers principal and interest during the term of the obligation and forgives any outstanding balance at December 31, 2018, if the Company complies with certain employment levels at the facility. In 2016, the Company entered into a $0.8 million loan agreement with the West Virginia Economic Development authority as part of the Company's capital investment and operations at the South Branch plant located in Hardy County, West Virginia. The loan agreement expires on June 1, 2026 and bears interest at a fixed rate of 3% per annum. The loan agreement is secured by certain equipment. It defers principal and interest during the term of the obligation and forgives any outstanding balance at December 31, 2018, if the Company complies with certain employment levels at the facility. Capital Lease Obligations From 2014 through 2018, the Company entered into a total of 12 capitalized lease agreements in the aggregate amount of $2.0 million with First American Financial Bancorp related to financing computer equipment. Each lease has a term of 48 months and an interest rate between 3.5% and 6.5%. The leases require quarterly rental payments. The aggregate outstanding amount under all of these leases as of April 30, 2018 and 2017 was $0.9 million and $1.4 million, respectively. From 2014 through 2018, the Company entered into a total of 19 capitalized lease agreements in the aggregate amount of $3.2 million with e-Plus Group related to financing computer equipment. There are 15 leases with a term of 51 months and 4 leases with a term of 36 months. All leases have an interest rate between 3.5% and 6.5%. The leases require monthly rental payments. The aggregate outstanding amount under all of these leases as of April 30, 2018 and 2017 was $2.2 million and $1.0 million, respectively. In 2004, the Company entered into a lease agreement with the West Virginia Economic Development Authority as part of the Company’s capital investment and operations at the South Branch plant located in Hardy County, West Virginia. This capital lease agreement is a $10 million term obligation, which expires June 30, 2024, bearing interest at a fixed rate of 2% per annum. The lease requires monthly rental payments. The outstanding amounts owed as of April 30, 2018 and 2017 were $3.8 million and $4.4 million, respectively. Other Long-term Debt On January 25, 2016 the Company entered into a New Markets Tax Credit ("NMTC") financing agreement, pursuant to section 45D of the Internal Revenue Code of 1986, as amended, and Kentucky Revised Statutes Sections 141.432 through 141.434, to take advantage of a tax credit related to working capital and capital improvements at its Monticello, Kentucky facility. This financing agreement was structured with unrelated third party financial institutions (the "Investors"), their wholly-owned investment funds ("Investment Funds") and their wholly-owned community development entities ("CDEs") in connection with our participation in qualified transactions under the NMTC program. In exchange for substantially all of the benefits derived from the tax credits, the Investors made a contribution of $2.3 million, net of syndication fees, to the project. Upon closing the transaction, a wholly owned subsidiary of the Company provided a $4.3 million loan receivable to the Investment Funds, which is included in other long term assets in the accompanying consolidated balance sheets. The Company also entered into loan agreements aggregating $6.6 million payable to the CDEs sponsoring the project. The loans have a term of 30 years with an aggregate interest rate of approximately 1.2%. As of April 30, 2018 and 2017, the Company had drawn $6.7 million and $5.9 million, respectively, of the loan proceeds, which is included in long-term debt in the accompanying consolidated balance sheets. The NMTC is subject to recapture for a period of seven years, the compliance period. During the compliance period, the Company is required to comply with various regulations and contractual provisions that apply to the NMTC arrangement. We do not anticipate any credit recaptures will be required in connection with this arrangement. This transaction also includes a put/call feature which becomes enforceable at the end of the compliance period whereby we may be obligated or entitled to repurchase the Investors’ interest in the Investment Funds. The value attributable to the put/call is nominal. Direct costs of $0.3 million incurred in structuring the financing arrangement are deferred and will be recognized as expense over the term of the loans (30 years). Certain of the Company's loan agreements limit the amount and type of indebtedness the Company can incur and require the Company to maintain specified financial ratios measured on a quarterly basis. In addition to the assets previously discussed, certain of the Company’s property, plant and equipment are pledged as collateral under certain loan agreements and the capital lease arrangements. The Company was in compliance with all covenants contained in its loan agreements and capital leases at April 30, 2018. Principle Payments Subsequent to Year End Since year-end, $40 million has been paid toward the principle of the Credit Facilities. |
Earnings Per Share |
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Earnings Per Share | Earnings Per Share The following table summarizes the computations of basic and diluted earnings per share:
There were no potentially dilutive securities for the fiscal years ended April 30, 2018, 2017 and 2016, which were excluded from the calculation of net earnings per share. |
Stock-Based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation The Company has two types of stock-based compensation awards in effect for its employees and directors. The Company has issued stock options since 1986 and restricted stock units ("RSUs") since fiscal 2010. Total compensation expense related to stock-based awards for the fiscal years ended April 30, 2018, 2017 and 2016 was $3.1 million, $3.5 million and $3.6 million, respectively. The Company recognizes stock-based compensation costs net of an estimated forfeiture rate for those shares expected to vest on a straight-line basis over the requisite service period of the award. The Company estimates the forfeiture rates based upon its historical experience. Stock Incentive Plans At April 30, 2018, the Company had stock option and RSU awards outstanding under three different plans: (1) second amended and restated 2004 stock incentive plan for employees; (2) 2006 non-employee directors equity ownership plan; and (3) 2015 non-employee directors equity ownership plan. As of April 30, 2018, there were 841,504 shares of common stock available for future stock-based compensation awards under the Company’s stock incentive plans. Methodology Assumptions For purposes of valuing stock option grants, the Company has identified one employee group and one non-employee director group, based upon observed option exercise patterns. The Company uses the Black-Scholes option-pricing model to value the Company’s stock options for each of the groups. Using this option-pricing model, the fair value of each stock option award is estimated on the date of grant. The fair value of the Company’s stock option awards is expensed on a straight-line basis over the vesting period of the stock options. The expected volatility assumption is based on the historical volatility of the Company’s stock over a term equal to the expected term of the option granted. The expected term of stock option awards granted is derived from the Company’s historical exercise experience and represents the period of time that stock option awards granted are expected to be outstanding for each of the identified groups. The expected term assumption incorporates the contractual term of an option grant, which is generally ten years for employees and from four to ten years for non-employee directors, as well as the vesting period of an award, which is typically three years. The risk-free interest rate is based on the implied yield on a U.S. Treasury constant maturity with a remaining term equal to the expected term of the option granted. For purposes of determining the fair value of RSUs, the Company uses the closing stock price of its common stock as reported on the NASDAQ Global Select Market on the date of grant. The fair value of the Company’s RSU awards is expensed on a straight-line basis over the vesting period of the RSUs to the extent the Company believes it is probable the related performance criteria, if any, will be met. The risk-free interest rate is based on the implied yield on a U.S. Treasury constant maturity with a remaining term equal to the vesting period of the RSU grant. The Company did not grant stock options during the fiscal years ended April 30, 2018 and 2017.
Stock Option Activity Stock options granted and outstanding under each of the Company’s plans vest evenly over a three-year period and have contractual terms of ten years. The exercise price of all stock options granted is equal to the fair market value of the Company’s common stock on the option grant date. The following table presents a summary of the Company’s stock option activity for the fiscal years ended April 30, 2018, 2017 and 2016 (remaining contractual term in years and exercise prices are weighted-averages):
The aggregate intrinsic value in the previous table of the outstanding options on April 30, 2018 represents the total pre-tax intrinsic value (the excess, if any, of the Company’s closing stock price on the last trading day of fiscal 2018 over the exercise price, multiplied by the number of in-the-money options) of the shares of the Company’s common stock that would have been received by the option holders had all option holders exercised their options on April 30, 2018. This amount changes based upon the fair market value of the Company’s common stock. The total fair value of options vested for the fiscal years ended April 30, 2018, 2017 and 2016 was $0.3 million, $0.6 million and $0.7 million, respectively. Cash received from option exercises for the fiscal years ended April 30, 2018, 2017 and 2016, was an aggregate of $1.3 million, $2.4 million and $8.1 million, respectively. The actual tax benefit realized for the tax deduction from option exercises of stock option awards totaled $0.0 million, $1.0 million and $4.3 million for the fiscal years ended April 30, 2018, 2017 and 2016, respectively. The following table summarizes information about stock options outstanding at April 30, 2018 (remaining lives in years and exercise prices are weighted-averages):
Restricted Stock Unit Activity: The Company’s RSUs granted to employees cliff-vest over a three-year period from date of grant, while RSUs granted to non-employee directors vest daily over a two-year period from date of grant. Directors were granted service-based RSUs only, while employees were awarded both service-based and performance-based RSUs ("PBRSUs") in fiscal years 2018, 2017 and 2016. The PBRSUs granted in fiscal 2018 and 2017 are earned based on achievement of a number of goals pertaining to the Company’s financial performance during three one-year performance periods and the achievement of certain cultural goals for the three-year period. Employees who satisfy the vesting criteria will receive a proportional amount of PBRSUs based upon the Compensation Committee’s assessment of the Company’s achievement of the performance criteria. The following table contains a summary of the Company’s RSU activity for the fiscal years ended April 30, 2018, 2017 and 2016:
As of April 30, 2018, there was $4.9 million of total unrecognized compensation expense related to unvested RSUs granted under the Company’s stock-based compensation plans. This expense is expected to be recognized over a weighted-average period of 1.6 years. For the fiscal years ended April 30, 2018, 2017 and 2016 stock-based compensation expense was allocated as follows:
Restricted Stock Tracking Units: During fiscal 2018, the Board of Directors of the Company approved grants of 4,496 cash-settled performance-based restricted stock tracking units ("RSTUs") and 2,519 cash-settled service-based RSTUs for more junior level employees who previously received RSU grants under the Company’s shareholder approved plan. Each performance-based RSTU entitles the recipient to receive a payment in cash equal to the fair market value of a share of the Company’s common stock as of the payment date if applicable performance and cultural conditions are met and the recipient remains continuously employed with the Company until the units vest. The service-based RSTUs entitle the recipients to receive a payment in cash equal to the fair market value of a share of our common stock as of the payment date if they remain continuously employed with the Company until the units vest. The RSTUs cliff-vest three years from the grant date. The fair value of each cash-settled RSTU award is remeasured at the end of each reporting period and the liability is adjusted, and related expense recorded, based on the new fair value. The Company recognized expense of $0.4 million, $0.8 million and $0.8 million related to RSTUs for the fiscal years ended April 30, 2018, 2017 and 2016, respectively. A liability for payment of the RSTUs is included in the Company's balance sheets in the amount of $1.0 million and $1.5 million as of April 30, 2018 and 2017, respectively. |
Employee Benefit and Retirement Plans |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit and Retirement Plans | Employee Benefit and Retirement Plans Retirement Savings Plans American Woodmark In fiscal 1990, the Company instituted the American Woodmark Investment Savings Stock Ownership Plan and effective January 1, 2016 the plan name was changed to the American Woodmark Corporation Retirement Savings Plan. Under this plan, all employees who are at least 18 years old and have been employed by the Company for at least six consecutive months are eligible to receive Company stock through a discretionary profit-sharing contribution and a 401(k) matching contribution based upon the employee's contribution to the plan. Discretionary profit-sharing contributions ranging from 0-5% of net income, based on predetermined net income levels of the Company, may be made annually in the form of Company stock. The Company recognized expenses for profit-sharing contributions of $3.7 million, $3.6 million and $2.9 million in fiscal years 2018, 2017 and 2016, respectively. The Company matches 100% of an employee’s annual 401(k) contributions to the plan up to 4% of annual compensation. RSI The Company has a defined-contribution 401(k) profit sharing plan (“401(k) plan”) for all non-union employees. Employees are eligible to contribute to the 401(k) plan 60 days after starting employment. Under the 401(k) plan, employees may contribute up to 60 percent of their compensation, subject to an annual contribution limit prescribed by the Internal Revenue Service. The Company has elected to make safe harbor matching contributions of up to four percent of each participant’s eligible compensation. The Company’s safe harbor contributions vest immediately. The expense for 401(k) matching contributions for both plans was $8.0 million, $7.2 million and $6.6 million, in fiscal years 2018, 2017 and 2016, respectively. Pension Benefits The Company has two defined benefit pension plans covering many of the Company’s employees hired prior to April 30, 2012. These plans provide defined benefits based on years of service and final average earnings (for salaried employees) or benefit rate (for hourly employees). Effective April 30, 2012, the Company froze all future benefit accruals under the Company’s hourly and salaried defined benefit pension plans. Included in accumulated other comprehensive loss at April 30, 2018 is $66.1 million ($49.1 million net of tax) related to net unrecognized actuarial losses that have not yet been recognized in net periodic pension benefit costs. The Company expects to recognize $1.6 million ($1.2 million net of tax) in net actuarial losses in net periodic pension benefit costs during fiscal 2019. The Company uses an April 30 measurement date for its benefit plans. The following provides a reconciliation of benefit obligations, plan assets and funded status of the Company’s non-contributory defined benefit pension plans as of April 30:
The accumulated benefit obligation for both pension plans was $163.4 million and $165.2 million at April 30, 2018 and 2017, respectively.
The components of net periodic pension benefit cost do not include service costs or prior service costs due to the plans being frozen. Actuarial Assumptions: The discount rate at April 30 was used to measure the year-end benefit obligations and the earnings effects for the subsequent year. Actuarial assumptions used to determine benefit obligations and earnings effects for the pension plans follow:
The Company bases the discount rate on a current yield curve developed from a portfolio of high-quality fixed-income investments with maturities consistent with the projected benefit payout period. The long-term rate of return on assets is determined based on consideration of historical and forward-looking returns and the current and expected asset allocation strategy. Beginning with the April 30, 2016 measurement, the Company refined the method used to determine the service and interest cost components of its net periodic benefit cost. Previously, the cost was determined using a single weighted-average discount rate derived from the yield curve. Under the refined method, known as the spot rate approach, individual spot rates along the yield curve that correspond with the timing of each benefit payment will be used. The Company believes this change provides a more precise measurement of service and interest costs by improving the correlation between projected cash outflows and corresponding spot rates on the yield curve. Compared to the previous method, the spot rate approach decreased the service and interest components of the benefit costs in fiscal 2017. There was no impact on the total benefit obligation. The Company accounted for this change prospectively as a change in accounting estimate. In developing the expected long-term rate of return assumption for the assets of the defined benefit pension plans, the Company evaluated input from its third party pension plan asset managers, including their review of asset class return expectations and long-term inflation assumptions. The Company amortizes experience gains and losses, as well as the effects of changes in actuarial assumptions and plan provisions, over the average remaining lifetime of the active participants. Contributions: The Company funds the pension plans in amounts sufficient to meet minimum funding requirements under applicable employee benefit and tax laws plus additional amounts the Company deems appropriate. The Company expects to contribute $2.3 million to its pension plans in fiscal 2019. The Company made contributions of $19.3 million and $27.3 million to its pension plans in fiscal 2018 and 2017, respectively. Estimated Future Benefit Payments: The following benefit payments are expected to be paid:
Plan Assets: Pension assets by major category and the type of fair value measurement as of April 30, 2018 and 2017 are presented in the following tables:
1As discussed in Note A, investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have been removed from the total plan assets in the fair value hierarchy. Investment Strategy: The Company has established formal investment policies for the assets associated with its pension plans. The objectives of the investment strategies include preservation of capital and long-term growth of capital while avoiding excessive risk. Target allocation percentages are established at an asset class level by the Company’s Pension Committee. Target allocation ranges are guidelines, not limitations, and the Pension Committee may approve allocations above or below a target range. During a period of uncertainty in the equity and fixed income markets, the Pension Committee may suspend the Target Asset Allocation and manage the investment mix as it sees reasonable, prudent and in the best interest of the plans to better protect the value of the plan assets. The Company’s pension plans’ weighted-average asset allocations at April 30, 2018 and 2017, by asset category, were as follows:
Within the broad categories outlined in the preceding table, the Company has the following specific allocations as a percentage of total funds invested: 60% Bond and 40% Equity. |
Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes Comprehensive tax legislation enacted through the Tax Act on December 22, 2017, significantly modified U.S. corporate income tax law. In addition to the law's corporate income tax rate reduction, several other provisions are pertinent to the Company's financial statements and related disclosures for the year ended April 30, 2018 or will have an impact on taxes in future years. The Company recognized the income tax effects of the 2017 Tax Act in accordance with Staff Accounting Bulletin No. 118 (“SAB 118”) which provides SEC guidance on the application of ASC 740, Income Taxes, in the reporting period in which the 2017 Tax Act was signed into law. Accordingly, the Company’s financial statements as of January 31, 2018 reflected provisional amounts for those impacts for which the accounting under ASC 740 was incomplete, but a reasonable estimate could be determined. For items under the Tax act for which no reasonable estimate could be determined at the time, the Company continued to apply the tax law in effect prior to the enactment of the Tax Act. As of April 30, 2018, the Company is still in the process of completing the accounting for the impact of the Tax Act. We recorded a provisional expense of $1.6 million related to the re-valuation of U.S. deferred taxes as of January 31, 2018. During the three months ending April 30, 2018, we have further refined the calculation of the impact to reflect actual full-year activity and adjusted the provisional expense to $1.0 million. The Company may further adjust these amounts in future periods if our interpretation of the Tax Act changes or as additional guidance from the U.S. Treasury becomes available. We had not recorded an estimate of the impact of the Tax Act on the existing deferred tax assets related to executive compensation as of January 31, 2018 as no reasonable estimate could be made at the time. During the three months ending April 30, 2018, we have determined that a reasonable estimate of the impact is a reduction in deferred tax asset and a related expense of $0.1 million. This estimate is provisional and the Company may further adjust these amounts in future periods if our interpretation of the Tax Act changes or as additional guidance from the U.S. Treasury becomes available. Income tax expense was comprised of the following:
The Company's effective income tax rate varied from the federal statutory rate as follows:
Note that the Company's federal statutory rate for 2018 is calculated by using a blended rate comprising of the pre-Tax Act 35% federal statutory rate from May 1, 2017 through December 31, 2017 and 21% for the period from January 1, 2018 through April 30, 2018. Due to the adoption of ASU 2016-09 in fiscal year 2017, excess tax benefits of stock compensation were recorded in tax expense while in previous years excess benefits were recorded in additional paid-in-capital and therefore, did not impact the effective tax rate. The significant components of deferred tax assets and liabilities were as follows:
We have not recorded deferred income taxes applicable to undistributed earnings of foreign subsidiaries that are indefinitely reinvested in foreign operations. Undistributed earnings that are indefinitely reinvested in foreign operations are not significant as of April 30, 2018. The Company has recorded a valuation allowance related to deferred tax assets for certain state investment tax credit (ITC) carryforwards. Deferred tax assets are reduced by a valuation allowance when, after considering all positive and negative evidence, it is determined that it is more likely than not that some portion, or all, of the deferred tax asset will not be realized. In fiscal 2018, the Company reassessed the valuation allowance related to ITCs and released $21 thousand of the valuation allowance recorded in fiscal 2016. The gross amount of state tax credit carryforwards related to state ITCs as of April 30, 2018 and 2017 was $5.2 million and $6.1 million. These credits expire in various years beginning in fiscal 2020. Net of the federal impact and related valuation allowance, the Company recorded $1.5 million and $1.6 million of deferred tax assets related to these credits, as of April 30, 2018 and 2017. The Company accounts for ITCs under the deferral method, under which the tax benefit from the ITC is deferred and amortized into income tax expense over the book life of the related property. As of April 30, 2018 and 2017, a deferred credit balance of $1.3 million and $1.5 million, respectively, is included in other liabilities on the balance sheet. |
Accounting for Uncertainty in Income Taxes |
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Apr. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting for Uncertainty in Income Taxes | Accounting for Uncertainty in Income Taxes The Company accounts for its income tax uncertainties in accordance with ASC Topic 740, “Income Taxes.” The following table summarizes the activity related to unrecognized tax benefits, excluding the federal tax benefit of state tax deductions:
The Company operates in multiple tax jurisdictions and, in the normal course of business, its tax returns are subject to examination by various taxing authorities. Such examinations may result in future assessments by these taxing authorities, and the Company has accrued a liability when it believes that it is not more likely than not that it will realize the benefits of tax positions that it has taken or for the amount of any tax benefit that exceeds the cumulative probability threshold in accordance with accounting standards. As of April 30, 2018, Federal tax years 2014 through 2017 remain subject to examination. The Company believes that adequate provisions have been made for all tax returns subject to examination. The Company is currently not under federal audit. If the liability for uncertain tax positions is released the entire amount would impact the Company’s effective tax rate. |
Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Legal Matters The Company is involved in suits and claims in the normal course of business, including without limitation product liability and general liability claims, and claims pending before the Equal Employment Opportunity Commission. On at least a quarterly basis, the Company consults with its legal counsel to ascertain the reasonable likelihood that such claims may result in a loss. As required by ASC Topic 450, “Contingencies” (ASC 450), the Company categorizes the various suits and claims into three categories according to their likelihood for resulting in potential loss: those that are probable, those that are reasonably possible and those that are deemed to be remote. Where losses are deemed to be probable and estimable, accruals are made. Where losses are deemed to be reasonably possible, a range of loss estimates is determined and considered for disclosure. In determining these loss range estimates, the Company considers known values of similar claims and consultation with independent counsel. The Company believes that the aggregate range of loss stemming from the various suits and asserted and unasserted claims which were deemed to be either probable or reasonably possible is not material as of April 30, 2018. Product Warranty The Company estimates outstanding warranty costs based on the historical relationship between warranty claims and revenues. The warranty accrual is reviewed monthly to verify that it properly reflects the remaining obligation based on the anticipated expenditures over the balance of the obligation period. Adjustments are made when actual warranty claim experience differs from estimates. Warranty claims are generally made within two months of the original shipment date. The following is a reconciliation of the Company’s warranty liability:
Lease Agreements The Company leases certain office buildings, manufacturing buildings, service centers and equipment. Total rental expenses under operating leases amounted to approximately $17.0 million, $10.9 million and $9.8 million, in fiscal years 2018, 2017 and 2016, respectively. Minimum rental commitments as of April 30, 2018, under noncancellable leases with terms in excess of one year are as follows:
Related Parties During fiscal 1985, prior to becoming a publicly held corporation, the Company entered into an agreement with a partnership which includes certain former executive officers and current significant shareholders of the Company to lease the Company’s headquarters building which was constructed and is owned by the partnership. The Company has subsequently renewed this lease in accordance with Company policy and procedures which includes approval by the Board of Directors. In considering the renewal of this lease, the Company assessed the lease terms in relation to market terms for comparable properties. Based upon this review, the Company believes that the rent under the lease was in line with market rates that could be obtained at arm’s length from unaffiliated third parties. In April 2017, the Company gave notice that it would be terminating the lease on May 31, 2018 and the lease was terminated on that date. Under this agreement, rental expense was $0.5 million, $0.5 million and $0.5 million, in fiscal years 2018, 2017 and 2016, respectively. As of April 30, 2018 rent due during the remaining term of the lease is approximately $43 thousand (included in the preceding table). |
Credit Concentration |
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Risks and Uncertainties [Abstract] | |||||||||||||||||||||||||||||||||||||
Credit Concentration | Credit Concentration Credit is extended to customers based on an evaluation of each customer's financial condition and generally collateral is not required. The Company's customers operate in the new home construction and home remodeling markets. The Company maintains an allowance for bad debt based upon management's evaluation and judgment of potential net loss. The allowance is estimated based upon historical experience, the effects of current developments and economic conditions and of each customer’s current and anticipated financial condition. Estimates and assumptions are periodically reviewed and updated. Any resulting adjustments to the allowance are reflected in current operating results. At April 30, 2018, the Company's two largest customers, Customers A and B, represented 30.8% and 25.5% of the Company's gross customer receivables, respectively. At April 30, 2017, Customers A and B represented 8.2% and 20.7% of the Company’s gross customer receivables, respectively. The following table summarizes the percentage of sales to the Company's two largest customers for the last three fiscal years:
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements The Company utilizes the hierarchy of fair value measurements to classify certain of its assets and liabilities based upon the following definitions: Level 1 – Investments with quoted prices in active markets for identical assets or liabilities. The Company’s cash equivalents are invested in money market funds, mutual funds and certificates of deposit. The Company’s mutual fund investment assets represent contributions made and invested on behalf of the Company’s named executive officers in a supplementary employee retirement plan. Level 2 – Investments with observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. The Company has no Level 2 assets or liabilities. Level 3 – Investments with unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company has no Level 3 assets or liabilities. The fair value measurement of assets held by the Company’s defined benefit pension plans is discussed in Note J. The Company's financial instruments include cash and equivalents, marketable securities and other investments; accounts receivable and accounts payable; and short- and long-term debt. The carrying values of cash and equivalents, accounts receivable and payable and short--term debt on the Consolidated Balance Sheets approximate their fair value due to the short maturities of these items. The following table summarizes the fair value of assets that are recorded in the Company’s consolidated financial statements as of April 30, 2018 and 2017 at fair value on a recurring basis:
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Quarterly Financial Data (Unaudited) |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited)
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Schedule II - Valuation and Qualifying Accounts |
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SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule II - Valuation and Qualifying Accounts | Schedule II - Valuation and Qualifying Accounts AMERICAN WOODMARK CORPORATION (In Thousands)
Item 16. Form 10-K Summary None. |
Summary of Significant Accounting Policies (Policy) |
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Apr. 30, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation: The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Inter-company accounts and transactions have been eliminated in consolidation. |
Revenue Recognition | Revenue Recognition: The Company recognizes revenue when product is delivered to the customer and title has passed. Revenue is based on invoice price less allowances for sales returns, cash discounts and other deductions. |
Cost of Sales and Distribution | Cost of Sales and Distribution: Cost of sales and distribution includes all costs associated with the manufacture and distribution of the Company’s products including the costs of shipping and handling. |
Advertising Costs | Advertising Costs: Advertising costs are expensed as incurred. |
Cash and Cash Equivalents and Investments in Certificates of Deposit | Cash and Cash Equivalents: Cash in excess of operating requirements is invested in money market accounts which are carried at cost (which approximates fair value). The Company considers all highly liquid short-term investments with an original maturity of three months or less when purchased to be cash equivalents. Cash equivalents were $50.1 million at April 30, 2017. There were no cash equivalents at April 30, 2018. Investments in Certificates of Deposit: The Company invests excess cash in certificates of deposit which are carried at cost (which approximates fair value). |
Inventories | Inventories: |
Property, Plant and Equipment | Property, Plant and Equipment: Property, plant and equipment is stated on the basis of cost less accumulated depreciation. Depreciation is provided by the straight-line method over the estimated useful lives of the related assets, which range from 15 to 30 years for buildings and improvements and 3 to 12 years for machinery and equipment. Assets under capital leases are amortized over the shorter of their estimated useful lives or the term of the related lease. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets: The Company reviews its long-lived assets for impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. During fiscal years 2018, 2017 and 2016, the Company concluded no impairment existed |
Promotional Displays | Promotional Displays: The Company invests in promotional displays in retail stores to demonstrate product features, product and quality specifications and to serve as a training tool for retail kitchen designers. The Company invests in these long-lived productive assets to provide the aforementioned benefits. The Company's investment in promotional displays is carried at cost less applicable amortization. Amortization is provided by the straight-line method on an individual display basis over periods of 30 to 60 months (the estimated period of benefit). |
Income Taxes | Income Taxes: The Company accounts for deferred income taxes utilizing the asset and liability method, whereby deferred tax assets and liabilities are recognized based on the tax effects of temporary differences between the financial statement amounts and the tax basis of assets and liabilities, using enacted tax rates in effect for the year in which these items are expected to reverse. At each reporting date, the Company evaluates the need for a valuation allowance to adjust deferred tax assets and liabilities to an amount that more likely than not will be realized. |
Pensions | Pensions: The Company has two non-contributory defined benefit pension plans covering many of the Company’s employees hired before April 30, 2012. Both defined benefit pension plans were frozen effective April 30, 2012. The Company recognizes the overfunded or underfunded status of its defined benefit pension plans, measured as the difference between the fair value of plan assets and the benefit obligation, in its consolidated balance sheets. The Company also recognizes the actuarial gains and losses and the prior service costs, credits and transition costs as a component of other comprehensive income (loss), net of tax. |
Stock-Based Compensation | Stock-Based Compensation: The Company recognizes stock-based compensation expense based on the grant date fair value over the requisite service period. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements: |
Use of Estimates | Use of Estimates: The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during each reporting period. Actual results could differ from those estimates. |
Reclassifications | Reclassifications: Certain reclassifications have been made to prior period balances to conform to the current year presentation. |
Acquisition of RSI Home Products, Inc. (the "RSI Acquisition") (Tables) |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preliminary Purchase Price Allocation | The following table summarizes the allocation of the preliminary purchase price as of the Acquisition Date, which is based on the accounting consideration of $554.2 million, to the estimated fair value of assets acquired and liabilities assumed (in thousands):
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Supplemental Pro Forma Financial Information | The following table presents summarized unaudited pro forma financial information as if RSI had been included in the Company’s financial results for the entire fiscal years ended April 30, 2018 and 2017:
(1) Includes stock compensation expense of $17.5 million and $7.4 million for the fiscal year ended April 30, 2018 and 2017, respectively, calculated under the intrinsic value method in measuring stock-based liability awards related to stock-based grants made by RSI prior to the RSI Acquisition. |
Customer Receivables (Tables) |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components Of Customer Receivables | The components of customer receivables were:
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Inventories (Tables) |
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Components Of Inventories | The components of inventories were:
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Property, Plant and Equipment (Tables) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components Of Property, Plant And Equipment | The components of property, plant and equipment were:
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Loans Payable and Long-Term Debt (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Debt Maturities | Maturities of long-term debt are as follows:
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Earnings Per Share (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Earnings (Loss) Per Share, Basic And Diluted | The following table summarizes the computations of basic and diluted earnings per share:
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Stock-Based Compensation (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Weighted Average Assumptions And Valuation Of Stock Options | The Company did not grant stock options during the fiscal years ended April 30, 2018 and 2017.
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Schedule Of Stock Option Activity | The following table presents a summary of the Company’s stock option activity for the fiscal years ended April 30, 2018, 2017 and 2016 (remaining contractual term in years and exercise prices are weighted-averages):
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Schedule Of Stock Options Oustanding Activity | The following table summarizes information about stock options outstanding at April 30, 2018 (remaining lives in years and exercise prices are weighted-averages):
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Summary Of RSU's Activity | The following table contains a summary of the Company’s RSU activity for the fiscal years ended April 30, 2018, 2017 and 2016:
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Stock-Based Compensation Expense Allocated | For the fiscal years ended April 30, 2018, 2017 and 2016 stock-based compensation expense was allocated as follows:
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Employee Benefit and Retirement Plans (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation Of Benefit Obligations, Plan Assets, And Funded Status | The following provides a reconciliation of benefit obligations, plan assets and funded status of the Company’s non-contributory defined benefit pension plans as of April 30:
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Net Periodic Pension Cost | The accumulated benefit obligation for both pension plans was $163.4 million and $165.2 million at April 30, 2018 and 2017, respectively.
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Schedule Of Assumptions Used To Determine Benenfit Obligations And Earnings Effects For Pension Plans | The discount rate at April 30 was used to measure the year-end benefit obligations and the earnings effects for the subsequent year. Actuarial assumptions used to determine benefit obligations and earnings effects for the pension plans follow:
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Schedule Of Expected Future Benefit Payments | The following benefit payments are expected to be paid:
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Schedule Of Pension Assets By Major Category Of Plan Assets And Type Of Fair Value Measurements | Pension assets by major category and the type of fair value measurement as of April 30, 2018 and 2017 are presented in the following tables:
1 |
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Schedule Of Allocation Of Plan Assets | The Company’s pension plans’ weighted-average asset allocations at April 30, 2018 and 2017, by asset category, were as follows:
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Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Income Tax Expense | Income tax expense was comprised of the following:
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Schedule Of Effective Income Tax Rate Reconciliation | The Company's effective income tax rate varied from the federal statutory rate as follows:
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Schedule Of Significant Components Of Deferred Tax Assets And Liabilities | The significant components of deferred tax assets and liabilities were as follows:
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Accounting for Uncertainty in Income Taxes (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity Related to Unrecognized Tax Benefits | The following table summarizes the activity related to unrecognized tax benefits, excluding the federal tax benefit of state tax deductions:
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Commitments and Contingencies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation Of Warranty Liability | The following is a reconciliation of the Company’s warranty liability:
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Schedule Of Minimum Rental Requirements | Minimum rental commitments as of April 30, 2018, under noncancellable leases with terms in excess of one year are as follows:
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Credit Concentration (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||
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Apr. 30, 2018 | |||||||||||||||||||||||||||||||||||||
Risks and Uncertainties [Abstract] | |||||||||||||||||||||||||||||||||||||
Summary Of Percentage Of Sales | The following table summarizes the percentage of sales to the Company's two largest customers for the last three fiscal years:
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Fair Value Measurements (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Of Assets On Recurring Basis | The following table summarizes the fair value of assets that are recorded in the Company’s consolidated financial statements as of April 30, 2018 and 2017 at fair value on a recurring basis:
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Quarterly Financial Data (Unaudited) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Quarterly Financial Information |
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Acquisition of RSI Home Products, Inc. (the "RSI Acquisition") (Supplemental Pro Forma Financial Information) (Details) - RSI Home Products, Inc. [Member] - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |
---|---|---|
Apr. 30, 2018 |
Apr. 30, 2017 |
|
Business Acquisition [Line Items] | ||
Net Sales | $ 1,613,663 | $ 1,623,441 |
Net Income | $ 67,388 | $ 93,798 |
Net earnings per share - basic (usd per share) | $ 3.83 | $ 5.30 |
Net earnings per share - diluted (usd per share) | $ 3.80 | $ 5.26 |
Pro Forma [Member] | ||
Business Acquisition [Line Items] | ||
Stock compensation expense | $ 17,500 | $ 7,400 |
Customer Receivables (Components Of Customer Receivables) (Details) - USD ($) $ in Thousands |
Apr. 30, 2018 |
Apr. 30, 2017 |
---|---|---|
Receivables [Abstract] | ||
Gross customer receivables | $ 142,622 | $ 66,373 |
Allowance for doubtful accounts | (259) | (148) |
Allowance for returns and discounts | (6,008) | (3,110) |
Net customer receivables | $ 136,355 | $ 63,115 |
Inventories (Details) - USD ($) $ in Thousands |
Apr. 30, 2018 |
Apr. 30, 2017 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 41,728 | $ 18,230 |
Work-in-process | 44,905 | 18,704 |
Finished goods | 34,111 | 19,372 |
Total FIFO inventories | 120,744 | 56,306 |
Reserve to adjust inventories to LIFO value | (15,943) | (13,447) |
Total inventory | 104,801 | $ 42,859 |
Carried under FIFO | 56,600 | |
Carried under LIFO | $ 48,200 |
Earnings Per Share (Schedule Of Earnings (Loss) Per Share, Basic And Diluted) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 30, 2018 |
Jan. 31, 2018 |
Oct. 31, 2017 |
Jul. 31, 2017 |
Apr. 30, 2017 |
Jul. 31, 2016 |
Oct. 31, 2016 |
Jan. 31, 2017 |
Apr. 30, 2018 |
Apr. 30, 2017 |
Apr. 30, 2016 |
|
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 19,109 | $ 1,996 | $ 19,755 | $ 22,281 | $ 17,348 | $ 21,661 | $ 17,637 | $ 14,553 | $ 63,141 | $ 71,199 | $ 58,723 |
Denominator for basic earnings per common share - weighted-average shares | 16,631 | 16,259 | 16,256 | ||||||||
Stock options and restricted stock units | 114 | 139 | 186 | ||||||||
Denominator for diluted earnings (loss) per common share - weighted-average shares and assumed conversions | 16,745 | 16,398 | 16,442 | ||||||||
Net earnings per share, Basic (usd per share) | $ 1.09 | $ 0.12 | $ 1.22 | $ 1.37 | $ 1.07 | $ 1.33 | $ 1.08 | $ 0.90 | $ 3.80 | $ 4.38 | $ 3.61 |
Net earnings per share, Diluted (usd per share) | $ 1.08 | $ 0.12 | $ 1.21 | $ 1.36 | $ 1.06 | $ 1.32 | $ 1.07 | $ 0.89 | $ 3.77 | $ 4.34 | $ 3.57 |
Earnings Per Share (Narrative) (Details) - shares |
12 Months Ended | ||
---|---|---|---|
Apr. 30, 2018 |
Apr. 30, 2017 |
Apr. 30, 2016 |
|
Earnings Per Share [Abstract] | |||
Potentially dilutive shares | 0 | 0 |
Stock-Based Compensation (Schedule Of Weighted Average Assumptions And Valuation Of Stock Options) (Details) |
12 Months Ended |
---|---|
Apr. 30, 2016
$ / shares
| |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Weighted-average fair value of grants | $ 18.59 |
Expected volatility | 29.80% |
Expected term in years | 5 years 9 months 18 days |
Risk-free interest rate | 2.20% |
Expected dividends yield | 0.00% |
Stock-Based Compensation (Stock-Based Compensation Expense Allocated) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Apr. 30, 2018 |
Apr. 30, 2017 |
Apr. 30, 2016 |
|
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense, before income taxes | $ 3,097 | $ 3,469 | $ 3,609 |
Cost Of Sales And Distribution [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense, before income taxes | 667 | 665 | 608 |
Selling And Marketing Expense [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense, before income taxes | 756 | 1,066 | 1,079 |
General And Administrative Expense [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense, before income taxes | $ 1,674 | $ 1,738 | $ 1,922 |
Employee Benefit and Retirement Plans (Reconciliation Of Benefit Obligations, Plan Assets, And Funded Status) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Apr. 30, 2018 |
Apr. 30, 2017 |
Apr. 30, 2016 |
|
Retirement Benefits [Abstract] | |||
Projected benefit obligation at beginning of year | $ 165,173 | $ 174,096 | |
Interest cost | 5,727 | 5,772 | $ 7,014 |
Acturial (gains) and losses | (2,596) | (4,672) | |
Benefits paid | (4,881) | (10,023) | |
Projected benefit obligation at end of year | 163,423 | 165,173 | 174,096 |
Fair value of plan assets at beginning of year | 137,141 | 106,965 | |
Actual return on plan assets | 4,884 | 12,895 | |
Company contributions | 19,319 | 27,304 | |
Benefits paid | (4,881) | (10,023) | |
Fair value of plan assets at end of year | 156,463 | 137,141 | $ 106,965 |
Funded status of the plan | $ (6,960) | $ (28,032) |
Employee Benefit and Retirement Plans (Net Periodic Pension Cost) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Apr. 30, 2018 |
Apr. 30, 2017 |
Apr. 30, 2016 |
|
Retirement Benefits [Abstract] | |||
Interest cost | $ 5,727 | $ 5,772 | $ 7,014 |
Expected return on plan assets | (8,936) | (8,079) | (8,142) |
Recognized net actuarial loss | 1,601 | 1,771 | 1,412 |
Pension benefit cost | $ (1,608) | $ (536) | $ 284 |
Employee Benefit and Retirement Plans (Schedule Of Assumptions Used To Determine Benenfit Obligations And Earnings Effects For Pension Plans) (Details) |
12 Months Ended | ||
---|---|---|---|
Apr. 30, 2018 |
Apr. 30, 2017 |
Apr. 30, 2016 |
|
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.18% | 4.12% | |
Pension Plan, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.12% | 4.06% | 4.19% |
Expected return on plan assets | 6.50% | 7.50% | 7.50% |
Employee Benefit and Retirement Plans (Schedule Of Expected Future Benefit Payments) (Details) $ in Thousands |
Apr. 30, 2018
USD ($)
|
---|---|
Retirement Benefits [Abstract] | |
2018 | $ 6,251 |
2019 | 6,625 |
2020 | 7,037 |
2021 | 7,395 |
2022 | 7,768 |
Years 2023-2027 | $ 43,988 |
Employee Benefit and Retirement Plans (Schedule Of Allocation Of Plan Assets) (Details) |
Apr. 30, 2018 |
Apr. 30, 2017 |
---|---|---|
Defined Benefit Plan Disclosure [Line Items] | ||
Plan asset target allocation | 100.00% | |
Plan asset actual allocation | 100.00% | 100.00% |
Equity Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan asset target allocation | 40.00% | |
Plan asset actual allocation | 40.00% | 57.00% |
Fixed Income Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan asset target allocation | 60.00% | |
Plan asset actual allocation | 60.00% | 43.00% |
Income Taxes (Schedule Of Income Tax Expense) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Apr. 30, 2018 |
Apr. 30, 2017 |
Apr. 30, 2016 |
|
CURRENT EXPENSE | |||
Federal | $ 8,668 | $ 23,638 | $ 18,239 |
State | 1,290 | 4,189 | 3,195 |
Foreign | 257 | 0 | 0 |
Total current expense | 10,215 | 27,827 | 21,434 |
DEFERRED EXPENSE | |||
Federal | 17,833 | 8,607 | 10,179 |
State | 3,642 | 1,292 | 1,450 |
Deferred Foreign Income Tax Expense (Benefit) | (71) | 0 | 0 |
Total deferred expense | 21,404 | 9,899 | 11,629 |
Total expense | 31,619 | 37,726 | 33,063 |
Other comprehensive income (loss) | 50 | 4,391 | (4,110) |
Total comprehensive income tax expense | $ 31,669 | $ 42,117 | $ 28,953 |
Income Taxes (Schedule Of Effective Income Tax Rate Reconciliation) (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Apr. 30, 2018 |
Apr. 30, 2017 |
Apr. 30, 2016 |
|
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 30.40% | 35.00% | 35.00% |
Federal income tax credits | (0.50%) | (0.20%) | (0.00%) |
Acquisition and integration costs | 1.20% | 0.00% | 0.00% |
Stock compensation | (2.40%) | (1.30%) | (0.00%) |
Meals and entertainment | 0.30% | 0.30% | 0.30% |
Effect of Tax Act | 1.20% | (0.00%) | (0.00%) |
Domestic production deduction | (0.80%) | (2.20%) | (2.50%) |
Other | 0.40% | (0.30%) | (0.10%) |
Total | (0.60%) | (3.70%) | (2.30%) |
Effective federal income tax rate | 29.80% | 31.30% | 32.70% |
State income taxes, net of federal tax effect | 3.60% | 3.30% | 3.30% |
Effective income tax rate | 33.40% | 34.60% | 36.00% |
Income taxes paid |
Income Taxes (Schedule Of Significant Components Of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands |
Apr. 30, 2018 |
Apr. 30, 2017 |
---|---|---|
Deferred tax assets: | ||
Pension benefits | $ 0 | $ 8,852 |
Accounts receivable | 4,772 | 6,938 |
Product liability | 2,180 | 1,272 |
Employee benefits | 6,513 | 7,914 |
Other | 2,865 | 862 |
Gross deferred tax assets, before valuation allowance | 20,267 | 29,921 |
Valuation allowance | (2,467) | (2,446) |
Gross deferred tax assets, after valuation allowance | 17,800 | 27,475 |
Deferred tax liabilities: | ||
Pension benefits | 1,035 | 0 |
Inventory | 240 | 297 |
Depreciation | 21,076 | 9,131 |
Intangibles | 65,294 | 0 |
Other | 986 | 0 |
Total | 88,631 | 9,428 |
Net deferred tax liability | (70,831) | |
Net deferred tax asset | 18,047 | |
State [Member] | ||
Deferred tax assets: | ||
State tax credit carryforwards | $ 3,937 | $ 4,083 |
Income Taxes (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Jan. 31, 2018 |
Apr. 30, 2018 |
Apr. 30, 2018 |
Apr. 30, 2017 |
|
Tax Credit Carryforward [Line Items] | ||||
Provisional expense | $ 1.6 | $ 1.0 | ||
State [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Gross amount of state tax credit carryforwards | 5.2 | $ 5.2 | $ 6.1 | |
Net deferred tax assets related to tax credit carryforwards | 1.5 | 1.5 | 1.6 | |
State [Member] | Other Liabilities [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Net deferred tax assets related to tax credit carryforwards | $ 1.3 | 1.3 | $ 1.5 | |
Investment Tax Credit Carryforward [Member] | State [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Decrease in valuation allowance | $ 0.0 |
Accounting for Uncertainty in Income Taxes (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Apr. 30, 2018 |
Apr. 30, 2017 |
|
Change in Unrecognized Tax Benefits | ||
Balance at beginning of year | $ 28 | $ 30 |
Reductions for tax positions of prior years | 0 | (2) |
Acquisitions, divestures, and other | 900 | 0 |
Balance at end of year | $ 928 | $ 28 |
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Apr. 30, 2018 |
Apr. 30, 2017 |
Apr. 30, 2016 |
|
Commitments And Contingencies [Line Items] | |||
Warranty claims, period from original ship date | 2 months | ||
Total rental expenses | $ 17.0 | $ 10.9 | $ 9.8 |
Significant Shareholders [Member] | |||
Commitments And Contingencies [Line Items] | |||
Reltaed party rent expense | 0.5 | $ 0.5 | $ 0.5 |
Rent expense from remaining term | $ 0.0 |
Commitments and Contingencies (Reconciliation Of Warranty Liability) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Apr. 30, 2018 |
Apr. 30, 2017 |
|
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Beginning balance | $ 3,262 | $ 2,926 |
Acquisition | 119 | 0 |
Accrual for warranties | 21,374 | 18,552 |
Settlements | (20,710) | (18,216) |
Ending balance at fiscal year end | $ 4,045 | $ 3,262 |
Commitments and Contingencies (Schedule Of Minimum Rental Requirements) (Details) $ in Thousands |
Apr. 30, 2018
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
2018 | $ 15,536 |
2019 | 15,416 |
2020 | 14,132 |
2021 | 9,321 |
2022 | 7,410 |
2023 (and thereafter) | 32,026 |
Total, Operating | 93,841 |
Capital Leases, Future Minimum Payments, Net Present Value [Abstract] | |
2018 | 2,138 |
2019 | 1,889 |
2020 | 1,422 |
2021 | 750 |
2022 | 662 |
2023 (and thereafter) | 828 |
Total, Capital | 7,689 |
Less amounts representing interest (2%) | (444) |
Total obligations under capital leases | $ 7,245 |
Minimum [Member] | |
Capital Leased Assets [Line Items] | |
Capital leases, interest rate, effective percentage | 2.00% |
Maximum [Member] | |
Capital Leased Assets [Line Items] | |
Capital leases, interest rate, effective percentage | 6.50% |
Credit Concentration (Details) |
12 Months Ended | ||
---|---|---|---|
Apr. 30, 2018 |
Apr. 30, 2017 |
Apr. 30, 2016 |
|
Accounts Receivable [Member] | Customer A [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 30.80% | 8.20% | |
Accounts Receivable [Member] | Customer B [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 25.50% | 20.70% | |
Sales Revenue, Gross [Member] | Customer A [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 25.40% | 20.70% | 23.90% |
Sales Revenue, Gross [Member] | Customer B [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 16.40% | 16.50% | 17.20% |
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 30, 2018 |
Jan. 31, 2018 |
Oct. 31, 2017 |
Jul. 31, 2017 |
Apr. 30, 2017 |
Jul. 31, 2016 |
Oct. 31, 2016 |
Jan. 31, 2017 |
Apr. 30, 2018 |
Apr. 30, 2017 |
Apr. 30, 2016 |
|
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 405,887 | $ 292,791 | $ 274,769 | $ 276,827 | $ 258,737 | $ 258,150 | $ 264,076 | $ 249,285 | $ 1,250,274 | $ 1,030,248 | $ 947,045 |
Gross profit | 89,195 | 50,379 | 57,335 | 58,494 | 57,571 | 59,317 | 56,152 | 51,596 | 255,403 | 224,636 | 199,694 |
Income before income taxes | 28,161 | 3,764 | 31,463 | 31,372 | 26,762 | 31,960 | 28,430 | 21,773 | 94,760 | 108,925 | 91,786 |
Net income | $ 19,109 | $ 1,996 | $ 19,755 | $ 22,281 | $ 17,348 | $ 21,661 | $ 17,637 | $ 14,553 | $ 63,141 | $ 71,199 | $ 58,723 |
Earnings per share | |||||||||||
Basic (usd per share) | $ 1.09 | $ 0.12 | $ 1.22 | $ 1.37 | $ 1.07 | $ 1.33 | $ 1.08 | $ 0.90 | $ 3.80 | $ 4.38 | $ 3.61 |
Diluted (usd per share) | $ 1.08 | $ 0.12 | $ 1.21 | $ 1.36 | $ 1.06 | $ 1.32 | $ 1.07 | $ 0.89 | $ 3.77 | $ 4.34 | $ 3.57 |
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