EX-99.1 2 ex99120214308k.htm EX-99.1 Document


Exhibit 99.1
awlogoa11.jpg
P. O. Box 1980
Winchester, VA 22604-8090


Contact:Kevin Dunnigan
Treasury Director
540-665-9100



AMERICAN WOODMARK CORPORATION ANNOUNCES FOURTH QUARTER RESULTS AND AUTHORIZATION OF A $100 MILLION STOCK BUYBACK PROGRAM

WINCHESTER, Virginia (May 27, 2021) -- American Woodmark Corporation (NASDAQ: AMWD) (the "Company") today announced results for its fourth fiscal quarter ended April 30, 2021.

Net sales for the fourth fiscal quarter increased $74.2 million, or 18.6%, to $473.4 million compared with the same quarter of the prior fiscal year. The Company experienced double-digit growth across all channels (repair and remodel and new construction) during the fourth quarter of fiscal 2021 as market demand recovered with consumer confidence remaining strong. Net sales for the current fiscal year increased $93.7 million, or 5.7%, to $1,744.0 million from the prior fiscal year.

Net income was $2.8 million ($0.17 per diluted share) for the fourth quarter of fiscal 2021 compared with $13.0 million ($0.77 per diluted share) in the same quarter of the prior fiscal year. Net income for the fourth quarter of fiscal 2021 decreased $10.2 million due to a pre-tax loss on debt modification of $13.8 million and higher material and logistics costs, offset by an increase in net sales. Net income for the current fiscal year was $58.8 million ($3.45 per diluted share) compared with $74.9 million ($4.42 per diluted share) for the prior fiscal year. Net income for fiscal 2021 decreased primarily due to a pre-tax loss on debt modification of $13.8 million. The Company also incurred net pre-tax restructuring costs of $5.8 million during fiscal 2021 related to the permanent layoffs due to COVID-19 announced in the fourth quarter of fiscal 2020 and the first quarter of fiscal 2021 and the closure of its Humboldt, Tennessee manufacturing plant announced in June 2020. Adjusted EPS per diluted share was $1.28 for the fourth quarter of fiscal 2021 compared with $1.33 in the same quarter of the prior fiscal year and $6.40 for the current fiscal year compared with $6.59 for the prior fiscal year.

Adjusted EBITDA for the fourth fiscal quarter was $47.2 million, or 10.0% of net sales, compared to $53.4 million, or 13.4% of net sales, for the same quarter of the prior fiscal year. Adjusted EBITDA for the current fiscal year was $223.2 million, or 12.8% of net sales, compared to $236.0 million, or 14.3% of net sales, for the prior fiscal year.

“During the fourth quarter of fiscal 2021, our teams delivered exceptional sales growth across all channels and were able to restructure our debt to increase liquidity and reduce interest expense," said Scott Culbreth, President and CEO. "Our focus remains on increasing production to match the strong demand environment and mitigate inflationary pressures in material, logistics and labor through pricing and productivity."

Cash provided by operating activities for the current fiscal year was $151.8 million and free cash flow totaled $105.4 million. As of April 30, 2021, the Company had $91.1 million of cash on hand with $243.8 million term loan debt and $264 million drawn on the revolving credit facility plus access to $236 million of additional availability under its revolving credit facility. The Company paid down $80 million of its term loan facility during the current fiscal year and completed $20.0 million of share repurchases.

On May 25, 2021, the Board of Directors authorized a stock repurchase program of up to $100 million of the Company's outstanding common shares. In conjunction with this authorization the Board of Directors cancelled the $50 million existing authorization, of which the Company had repurchased $20 million in the fourth quarter of fiscal 2021. Any repurchases under the stock repurchase program are subject to market conditions, the Company’s cash requirements for other purposes, compliance with applicable laws and regulations and contractual covenants and any other factors management may deem relevant at the time of such repurchases. The Company is not obligated to make any stock repurchases in the future.

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AMWD Announces Fourth Quarter Results
Page 2
May 27, 2021



About American Woodmark

American Woodmark Corporation 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.  At April 30, 2021, the Company operated seventeen manufacturing facilities in the United States and Mexico and eight primary service centers and one distribution center located throughout the United States.

Use of Non-GAAP Financial Measures

We have presented certain financial measures in this press release which have not been prepared in accordance with U.S. generally accepted accounting principles (GAAP). Definitions of our non-GAAP financial measures and a reconciliation to the most directly comparable financial measure calculated in accordance with GAAP are provided below following the financial highlights under the heading "Non-GAAP Financial Measures." 

Safe harbor statement under the Private Securities Litigation Reform Act of 1995: All forward-looking statements made by the Company involve material risks and uncertainties and are subject to change based on factors that may be beyond the Company's control. Accordingly, the Company's future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to, those described in the Company's filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K. The Company does not undertake to publicly update or revise its forward looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.
(AMWD-ER)
AMERICAN WOODMARK CORPORATION
Unaudited Financial Highlights
(in thousands, except share data)
Operating Results
Three Months EndedTwelve Months Ended
April 30April 30
2021202020212020
Net sales$473,390 $399,197 $1,744,014 $1,650,333 
Cost of sales & distribution399,584 323,928 1,424,739 1,321,147 
Gross profit73,806 75,269 319,275 329,186 
Sales & marketing expense26,096 21,069 89,464 83,608 
General & administrative expense25,869 27,088 112,283 113,334 
Restructuring charges, net444 189 5,848 (18)
Operating income21,397 26,923 111,680 132,262 
Interest expense, net5,371 6,579 23,128 29,027 
Other expense, net14,045 3,386 11,117 2,687 
Income tax (benefit) expense(846)3,945 18,672 25,687 
Net income$2,827 $13,013 $58,763 $74,861 
Earnings Per Share:
Weighted average shares outstanding - diluted17,022,472 16,965,119 17,036,730 16,952,480 
Net income per diluted share$0.17 $0.77 $3.45 $4.42 



AMWD Announces Fourth Quarter Results
Page 3
May 27, 2021


Condensed Consolidated Balance Sheet
(Unaudited)
April 30 April 30
20212020
Cash & cash equivalents$91,071 $97,059 
Customer receivables146,866 106,344 
Inventories140,282 111,836 
Other current assets13,861 9,933 
Total current assets392,080 325,172 
Property, plant & equipment, net204,002 203,824 
Operating lease assets, net 123,118 127,668 
Trademarks, net— 2,222 
Customer relationship intangibles, net121,778 167,444 
Goodwill767,612 767,612 
Other assets27,924 28,864 
Total assets$1,636,514 $1,622,806 
Current portion - long-term debt$8,322 $2,216 
Short-term operating lease liabilities19,994 18,896 
Accounts payable & accrued expenses192,131 134,494 
Total current liabilities220,447 155,606 
Long-term debt513,450 594,921 
Deferred income taxes38,348 52,935 
Long-term operating lease liabilities109,628 112,454 
Other liabilities11,745 6,352 
Total liabilities893,618 922,268 
Stockholders' equity742,896 700,538 
Total liabilities & stockholders' equity$1,636,514 $1,622,806 

Condensed Consolidated Statements of Cash Flows
(Unaudited)
Twelve Months Ended
April 30
20212020
Net cash provided by operating activities$151,763 $177,542 
Net cash used by investing activities(42,429)(38,916)
Net cash used by financing activities(115,322)(99,223)
Net increase (decrease) in cash and cash equivalents(5,988)39,403 
Cash and cash equivalents, beginning of period97,059 57,656 
Cash and cash equivalents, end of period$91,071 $97,059 





AMWD Announces Fourth Quarter Results
Page 4
May 27, 2021


Non-GAAP Financial Measures

We have reported our financial results in accordance with generally accepted accounting principles (GAAP). In addition, we have discussed our financial results using the non-GAAP measures described below.

Management believes all of these non-GAAP financial measures provide an additional means of analyzing the current period’s results against the corresponding prior period’s results. However, these non-GAAP financial measures should be viewed in addition to, and not as a substitute for, the Company’s reported results prepared in accordance with GAAP. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.

Adjusted EPS per diluted share

We use Adjusted EPS per diluted share in evaluating the performance of our business and profitability. Management believes that this measure provides useful information to investors by offering additional ways of viewing the Company’s results by providing an indication of performance and profitability excluding the impact of unusual and/or non-cash items. We define Adjusted EPS per diluted share as diluted earnings per share excluding the per share impact of (1) expenses related to the acquisition of RSI Home Products, Inc. ("RSI acquisition") and the subsequent restructuring charges that the Company incurred related to the RSI acquisition, (2) non-recurring restructuring charges, (3) the amortization of customer relationship intangibles and trademarks, (4) net gain/loss on debt forgiveness and modification and (5) the tax benefit of RSI acquisition expenses and subsequent restructuring charges, the net gain/loss on debt forgiveness and modification and the amortization of customer relationship intangibles and trademarks. The amortization of intangible assets is driven by the RSI acquisition and will recur in future periods. Management has determined that excluding amortization of intangible assets from our definition of Adjusted EPS per diluted share will better help it evaluate the performance of our business and profitability and we have also received similar feedback from some of our investors.

Adjusted EBITDA and Adjusted EBITDA margin

We use Adjusted EBITDA and Adjusted EBITDA margin in evaluating the performance of our business, and we use each in the preparation of our annual operating budgets and as indicators of business performance and profitability. We believe Adjusted EBITDA and Adjusted EBITDA margin allow us to readily view operating trends, perform analytical comparisons and identify strategies to improve operating performance.

We define Adjusted EBITDA as net income adjusted to exclude (1) income tax expense, (2) interest expense, net, (3) depreciation and amortization expense, (4) amortization of customer relationship intangibles and trademarks, (5) expenses related to the RSI acquisition and the subsequent restructuring charges that the Company incurred related to the acquisition, (6) non-recurring restructuring charges, (7) stock-based compensation expense, (8) gain/loss on asset disposals, (9) change in fair value of foreign exchange forward contracts and (10) net gain/loss on debt forgiveness and modification. We believe Adjusted EBITDA, when presented in conjunction with comparable GAAP measures, is useful for investors because management uses Adjusted EBITDA in evaluating the performance of our business.

We define Adjusted EBITDA margin as Adjusted EBITDA as a percentage of net sales.

Free cash flow

To better understand trends in our business, we believe that it is helpful to subtract amounts for capital expenditures consisting of cash payments for property, plant and equipment and cash payments for investments in displays from cash flows from continuing operations which is how we define free cash flow. Management believes this measure gives investors an additional perspective on cash flow from operating activities in excess of amounts required for reinvestment. It also provides a measure of our ability to repay our debt obligations.

Net leverage

Net leverage is a performance measure that we believe provides investors a more complete understanding of our leverage position and borrowing capacity after factoring in cash and cash equivalents that eventually could be used to repay outstanding debt.




AMWD Announces Fourth Quarter Results
Page 5
May 27, 2021


We define net leverage as net debt (total debt less cash and cash equivalents) divided by the trailing 12 months Adjusted EBITDA.

A reconciliation of these non-GAAP financial measures and the most directly comparable measures calculated and presented in accordance with GAAP are set forth on the following tables:
Reconciliation of EBITDA, Adjusted EBITDA and Adjusted EBITDA margin
Three Months EndedTwelve Months Ended
April 30April 30
(in thousands)2021202020212020
Net income (GAAP)$2,827 $13,013 $58,763 $74,861 
Add back:
Income tax (benefit) expense(846)3,945 18,672 25,687 
Interest expense, net5,371 6,579 23,128 29,027 
Depreciation and amortization expense12,390 12,901 51,100 49,513 
Amortization of customer relationship intangibles and trademarks11,417 12,250 47,889 49,000 
EBITDA (Non-GAAP)$31,159 $48,688 $199,552 $228,088 
Add back:
Acquisition and restructuring related expenses (1)20 61 174 32 
Non-recurring restructuring charges, net (2)444 189 5,848 189 
Net loss on debt modification 13,792 — 13,792 — 
Change in fair value of foreign exchange forward contracts (3)618 1,346 (1,102)1,102 
Stock-based compensation expense1,055 867 4,598 3,989 
Loss on asset disposal149 2,279 384 2,629 
Adjusted EBITDA (Non-GAAP)$47,237 $53,430 $223,246 $236,029 
Net Sales$473,390 $399,197 $1,744,014 $1,650,333 
Adjusted EBITDA margin (Non-GAAP)10.0 %13.4 %12.8 %14.3 %

(1) Acquisition and restructuring related expenses are comprised of expenses related to the acquisition of RSI Home Products, Inc. and the subsequent restructuring charges that the Company incurred related to the acquisition.
(2) Non-recurring restructuring charges are comprised of expenses incurred related to the permanent layoffs due to COVID-19 and the closure of the manufacturing plant in Humboldt, Tennessee. The fiscal year ended April 30, 2021 includes accelerated depreciation expense of $1.3 million and gain on asset disposal of $2.2 million related to Humboldt.
(3) In the normal course of business the Company is subject to risk from adverse fluctuations in foreign exchange rates. The Company manages these risks through the use of foreign exchange forward contracts. The changes in the fair value of the forward contracts are recorded in other income in the operating results.




AMWD Announces Fourth Quarter Results
Page 6
May 27, 2021


Reconciliation of Net Income to Adjusted Net Income
Three Months EndedTwelve Months Ended
April 30April 30
(in thousands, except share data)2021202020212020
Net income (GAAP)$2,827 $13,013 $58,763 $74,861 
Add back:
Acquisition and restructuring related expenses20 61 174 32 
Non-recurring restructuring charges, net 444 189 5,848 189 
Amortization of customer relationship intangibles and trademarks11,417 12,250 47,889 49,000 
Net loss on debt modification13,792 — 13,792 — 
Tax benefit of add backs(6,749)(2,978)(17,467)(12,305)
Adjusted net income (Non-GAAP)$21,751 $22,535 $108,999 $111,777 
Weighted average diluted shares17,022,472 16,965,119 17,036,730 16,952,480 
Adjusted EPS per diluted share (Non-GAAP)$1.28 $1.33 $6.40 $6.59 

Free Cash Flow
Twelve Months Ended
April 30,
20212020
Cash provided by operating activities$151,763 $177,542 
Less: Capital expenditures (1)46,318 40,739 
Free cash flow$105,445 $136,803 

(1) Capital expenditures consist of cash payments for property, plant and equipment and cash payments for investments in displays.



AMWD Announces Fourth Quarter Results
Page 7
May 27, 2021


Net Leverage
Twelve Months Ended
April 30
(in thousands)2021
Net income (GAAP)$58,763 
Add back:
Income tax expense18,672 
Interest expense, net23,128 
Depreciation and amortization expense51,100 
Amortization of customer relationship intangibles and trademarks47,889 
EBITDA (Non-GAAP)$199,552 
Add back:
Acquisition and restructuring related expenses (1)174 
Non-recurring restructuring charges, net (2)5,848 
Net loss on debt modification13,792 
Change in fair value of foreign exchange forward contracts (3)(1,102)
Stock-based compensation expense4,598 
Loss on asset disposal384 
Adjusted EBITDA (Non-GAAP)$223,246 
As of
April 30
2021
Current maturities of long-term debt$8,322 
Long-term debt, less current maturities513,450 
Total debt521,772 
Less: cash and cash equivalents(91,071)
Net debt$430,701 
Net leverage (4)1.93 

(1) Acquisition and restructuring related expenses are comprised of expenses related to the acquisition of RSI Home Products, Inc. and the subsequent restructuring charges that the Company incurred related to the acquisition.
(2) Non-recurring restructuring charges are comprised of expenses incurred related to the permanent layoffs due to COVID-19 and the closure of the manufacturing plant in Humboldt, Tennessee.
(3) In the normal course of business the Company is subject to risk from adverse fluctuations in foreign exchange rates. The Company manages these risks through the use of foreign exchange forward contracts. The changes in the fair value of the forward contracts are recorded in other income in the operating results.
(4) Net debt divided by Adjusted EBITDA for the twelve months ended April 30, 2021.

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