Group 1 - American Woodmark (NASDAQ: AMWD) reported fiscal Q3 results that were mostly in line with MasterBrand Cabinets (MBC) [1] - The results indicate that current investment decisions are influenced by the performance of these companies [1]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended January 31, 2025 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) Vi ...

Financial Data and Key Metrics Changes - The company reported net sales of $397.6 million, a decline of 5.8% compared to the prior year, which was below expectations due to softer demand in the remodel market and a significant decline in new construction activity [7][23] - Adjusted EBITDA was $38.4 million, representing 9.7% of net sales, down from 12% the previous year, indicating a 230 basis point decline [12][26] - Gross profit as a percentage of net sales decreased by 420 basis points to 15% from 19.2% reported last year [24] - Adjusted net income was $15.9 million or $1.05 per diluted share, down from $25.1 million or $1.56 per diluted share last year [26] Business Line Data and Key Metrics Changes - New construction net sales decreased by 10.4%, while repair and remodel net sales were down 2.3% [24] - The home center made-to-order business was roughly flat year-over-year, while the stock kitchen business saw mid-single-digit growth [8] - The distribution business experienced a double-digit decline due to slowed new construction activity [9] Market Data and Key Metrics Changes - Single-family housing starts showed negative comparisons versus the prior year, indicating a slowdown in the market [9] - The company noted a rotation down in its made-to-order new construction offerings, leading to an unfavorable mix impact [10] Company Strategy and Development Direction - The company is focused on three main strategic pillars: growth, digital transformation, and platform design [17] - Recent initiatives include the conversion of distribution business customers to the new brand 1951 Cabinetry and the launch of new finishes and styles [18][19] - The company announced the closure of its Orange, Virginia manufacturing location to consolidate production and improve operational efficiencies [20][27] Management's Comments on Operating Environment and Future Outlook - Management expressed that demand trends are expected to remain challenging, with a projected mid-single-digit decline in net sales for the full fiscal year [14] - Concerns regarding consumer sentiment, inflation risks, and interest rates were highlighted as macroeconomic challenges [14] - Management remains optimistic that mortgage rate relief and increased consumer confidence could benefit the business in the long term [11] Other Important Information - The company had a cash balance of $43.5 million at the end of the third fiscal quarter, with access to an additional $314.2 million under its revolving credit facility [13] - Free cash flows totaled $31.5 million year-to-date, a decrease from $131.7 million in the prior year, primarily due to changes in operating cash flows [28] Q&A Session Summary Question: What portion of your reduced guide is attributed to the slower R&R environment and builders reducing inventory? - Management indicated that both factors were key contributors to the overall comp rate for the quarter and that the full-year outlook assumes a similar operating environment in Q4 [38] Question: Have you begun to see any positive impacts from the hurricanes last fall or potentially the fires in Southern California? - Management noted some positive comps in Florida from hurricane-impacted stores, but nothing material for the overall quarter [40] Question: Can you discuss pricing considerations and the options you're contemplating? - Management stated that if tariffs come through and cannot be fully mitigated, pricing action will likely be necessary, with discussions ongoing about potential surcharges or list price changes [44][47] Question: Is dealer demand bottoming, and is there a sense of stabilization in that part of the demand world? - Management expressed hope that demand is bottoming out, with expectations for an increase in the future, particularly in the second half of 2025 [50][51] Question: Can you quantify the impact of mix headwinds within the new construction business? - Management confirmed a rotation down in product offerings, with builders trying to lower price points to improve affordability, leading to a decrease in the number of cabinets going into homes [55][56]

Financial Performance - Net sales for the third quarter of fiscal 2025 decreased by $24.5 million, or 5.8%, to $397.6 million compared to the same quarter last fiscal year[3]. - Net income for the third quarter was $16.6 million, or $1.09 per diluted share, representing 4.2% of net sales, down from $21.2 million, or $1.32 per diluted share, in the same quarter last year[3]. - Adjusted EBITDA for the third quarter decreased by $12.2 million, or 24.0%, to $38.4 million, or 9.7% of net sales, compared to $50.6 million, or 12.0% of net sales, last fiscal year[3]. - For the first nine months of fiscal 2025, net sales decreased by $85.0 million, or 6.1%, to $1,309.2 million compared to the same period of the prior fiscal year[6]. - Adjusted EPS per diluted share for the first nine months of fiscal 2025 was $5.28, down from $6.81 in the same period of the prior fiscal year[6]. - For the three months ended January 31, 2025, net income was $16,571,000, a decrease of 22.5% compared to $21,227,000 for the same period in 2024[28]. - Adjusted EBITDA for the three months ended January 31, 2025, was $38,445,000, down 24% from $50,615,000 in the prior year[28]. - Adjusted EBITDA margin for the three months ended January 31, 2025, was 9.7%, compared to 12.0% for the same period in 2024[28]. - Adjusted EPS per diluted share for the three months ended January 31, 2025, was $1.05, down from $1.56 in the same period of 2024[31]. - Net sales for the three months ended January 31, 2025, were $397,580,000, a decrease of 5.5% from $422,102,000 in the prior year[28]. - The company reported a net income margin of 4.2% for the three months ended January 31, 2025, compared to 5.0% for the same period in 2024[28]. Cash Flow and Capital Management - Cash provided by operating activities for the first nine months was $63.7 million, with free cash flow totaling $31.5 million[7]. - The company repurchased 132,075 shares for $12.6 million during the third quarter and 752,412 shares for $69.1 million during the first nine months of fiscal 2025[8]. - Free cash flow for the nine months ended January 31, 2025, was $31,490,000, a decline of 76% from $131,697,000 in the same period of 2024[33]. - As of January 31, 2025, the company had $43.5 million in cash and access to $314.2 million under its revolving credit facility[7]. Restructuring and Costs - Total pre-tax restructuring costs related to the closure of the Orange, Virginia manufacturing plant are expected to be between $6.0 million and $8.5 million[3]. - The company incurred restructuring charges of $520,000 in the three months ended January 31, 2025, related to workforce reductions and facility closures[29]. Future Outlook - The company expects a mid-single digit decline in net sales for the full fiscal year and an Adjusted EBITDA range of $210 million to $215 million[2][11]. - Net leverage as of January 31, 2025, was 1.53, calculated as net debt of $331,860,000 divided by trailing 12 months Adjusted EBITDA of $216,209,000[35]. Adjustments in Reporting - The company adjusted its definition of Adjusted EPS per diluted share to exclude changes in fair value of foreign exchange forward contracts starting in the second quarter of fiscal 2025[25].

American Woodmark Corporation (NASDAQ:AMWD) Q2 2025 Earnings Conference Call November 26, 2024 8:30 AM ET Company Participants Paul Joachimczyk - SVP and CFO Scott Culbreth - President and CEO Conference Call Participants Trevor Allinson - Wolfe Research Garik Shmois - Loop Capital Steven Ramsey - Thompson Research Group Adam Baumgarten - Zelman & Associates Tim Wojs - Baird Operator Good day, everyone, and welcome to the American Woodmark Corporation's Second Fiscal Quarter 2025 Conference Call. Today's ca ...

Financial Performance - Net sales for the three months ended October 31, 2024, were $452,482,000, a decrease of 4.5% compared to $473,867,000 for the same period in 2023[14] - Gross profit for the three months ended October 31, 2024, was $85,711,000, down 16.9% from $103,159,000 in the prior year[14] - Operating income for the three months ended October 31, 2024, was $42,603,000, a decrease of 6.5% compared to $45,464,000 in the same period of 2023[14] - Net income for the three months ended October 31, 2024, was $27,686,000, down 8.7% from $30,341,000 in the prior year[14] - The company reported a total comprehensive income of $25,783,000 for the three months ended October 31, 2024, down from $29,355,000 in the prior year[17] - Net income for the six months ended October 31, 2024, was $57,319,000, a decrease of 16% compared to $68,191,000 for the same period in 2023[23] - Basic net earnings per share for the three months ended October 31, 2024, were $1.81, compared to $1.86 for the same period in 2023[14] - Basic earnings per share for the six months ended October 31, 2024, was $3.71, compared to $4.16 for the same period in 2023, reflecting a decrease of 10.8%[43] - Adjusted EPS per diluted share for Q2 fiscal 2025 was $2.08, down from $2.50 in Q2 fiscal 2024[124] Assets and Liabilities - Total assets increased to $1,609,875,000 as of October 31, 2024, compared to $1,593,865,000 as of April 30, 2024[11] - Total current liabilities rose to $208,568,000 as of October 31, 2024, compared to $195,726,000 in the previous period[11] - Shareholders' equity increased to $915,062,000 as of October 31, 2024, from $910,376,000 as of April 30, 2024[11] - The company’s total outstanding debt under the Term Loan Facility was approximately $200 million as of October 31, 2024[60] - Total long-term debt as of October 31, 2024, was $367.981 million[66] - Cash and cash equivalents at the end of the period on October 31, 2024, were $87,398,000, compared to $41,732,000 at the end of the same period in 2023[26] Cash Flow and Financing Activities - Operating cash flow for the six months ended October 31, 2024, was $52,733,000, down from $143,722,000 in the prior year, reflecting a significant decline[23] - The company reported cash provided by operations of $52.7 million in the first six months of fiscal 2025, a decrease from $143.7 million in the same period of fiscal 2024[128] - During the first six months of fiscal 2025, net cash used by financing activities was $60.8 million, an increase from $55.2 million in the same period of the prior fiscal year, primarily due to $56.5 million in common stock repurchases, which increased by $4.4 million year-over-year[135] - The company repurchased $56,493,000 worth of common stock during the financing activities for the six months ended October 31, 2024[23] - A total of $32.5 million of common shares were repurchased during the second quarter of fiscal 2025, with $33.0 million remaining available for repurchases as of October 31, 2024[154] Expenses and Charges - The company incurred restructuring charges of $1,133,000 for the three months ended October 31, 2024, compared to a net gain of $(26,000) in the same period of 2023[14] - Total stock-based compensation expense for the six months ended October 31, 2024, was $5,805,000, compared to $4,402,000 in the same period of 2023, indicating an increase of 31.8%[23] - The company’s stock-based compensation expense for the six months ended October 31, 2024, was $5.805 million, compared to $4.402 million for the same period in 2023, reflecting an increase of 31.9%[46] - General and administrative expenses decreased by $14.8 million or 42.2% during the second quarter of fiscal 2025 compared to the same period of the prior year[106] Market and Economic Conditions - The unemployment rate increased to 4.1% as of October 2024 compared to 3.9% as of October 2023[96] - Mortgage interest rates decreased to approximately 6.7% in October 2024, a decrease of approximately 107 basis points compared to the same period in the prior year[96] - The inflation rate as of October 2024 was 2.6%, compared to 3.2% in October 2023[96] Future Outlook - The company expects a low single-digit decline in net sales for fiscal 2025 due to a softer repair and remodel market, partially offset by growth in the new construction market[125] - Adjusted EBITDA guidance for fiscal 2025 is set between $225 million and $235 million, impacted by manufacturing deleverage due to lower sales[125] - The company plans to continue investing in digital transformation and automation while being opportunistic in share repurchases[126] Compliance and Legal Matters - As of October 31, 2024, the Company was in compliance with all covenants included in the A&R Credit Agreement[64] - The company is involved in ordinary litigation incidental to its business but is not party to any material litigation[149]

Financial Performance - Net sales for Q2 FY2025 were $452.5 million, a decrease of $21.4 million or 4.5% compared to the same quarter last fiscal year[5]. - Net income for Q2 FY2025 was $27.7 million, representing 6.1% of net sales, down from $30.3 million or 6.4% of net sales in the same quarter last year[5]. - Adjusted EBITDA for Q2 FY2025 decreased by $12.1 million, or 16.8%, to $60.2 million, which is 13.3% of net sales[5]. - For the first six months of FY2025, net sales totaled $911.6 million, a decline of $60.5 million or 6.2% year-over-year[6]. - Adjusted EPS for Q2 FY2025 was $2.08, down from $2.50 in the same quarter last fiscal year[5]. - Adjusted EBITDA for the second quarter of fiscal 2025 was $60,187 thousand, compared to $72,329 thousand in the same quarter of 2024, reflecting a decline of approximately 16.8%[33]. - Net sales for the second quarter of fiscal 2025 were $452,482 thousand, down from $473,867 thousand in the same quarter of 2024, a decrease of about 4.4%[33]. - Adjusted EPS per diluted share for the second quarter of fiscal 2025 was $2.08, compared to $2.50 in the same quarter of 2024, a decline of approximately 16.8%[34]. - Net income margin (GAAP) for the second quarter of fiscal 2025 was 6.1%, slightly down from 6.4% in the same quarter of 2024[33]. Cash Flow and Liquidity - As of October 31, 2024, the company had $56.7 million in cash and access to $313.2 million under its revolving credit facility[9]. - Net cash provided by operating activities decreased to $52,733 thousand in 2024 from $143,722 thousand in 2023, representing a decline of approximately 63.3%[22]. - Free cash flow for the six months ended October 2024 was $30,141 thousand, down from $109,880 thousand in the same period of 2023, a decrease of about 72.6%[35]. - Cash and cash equivalents at the end of the period were $56,717 thousand in 2024, down from $96,381 thousand in 2023, a decrease of approximately 41.2%[22]. Debt and Financing - The company refinanced its senior secured debt facility, establishing a $500 million revolving loan facility and a $200 million term loan facility[9]. - Current maturities of long-term debt amount to $7,831 million[38]. - Long-term debt, less current maturities, totals $367,981 million[38]. - Total debt stands at $375,812 million[38]. - Net debt is $319,095 million[38]. - Net leverage as of October 31, 2024, was calculated based on net debt divided by trailing 12 months Adjusted EBITDA, providing insight into the company's leverage position[31]. - Net leverage ratio is 1.40[38]. Shareholder Actions - The company repurchased 348,877 shares for $32.5 million during Q2 FY2025, and a total of 620,337 shares for $56.5 million in the first six months of FY2025[11]. - The board authorized an additional stock repurchase program of up to $125 million on November 20, 2024[12]. Restructuring and Charges - The company reported a net loss on debt modification of $364 thousand for the second quarter of fiscal 2025, indicating ongoing financial adjustments[34]. - The company incurred restructuring charges of $1,133 thousand in the second quarter of fiscal 2025, reflecting costs associated with workforce reductions[34]. - Restructuring charges are related to workforce reductions in fiscal 2023 and 2025[38]. Foreign Exchange and Acquisitions - The company manages foreign exchange risks through forward contracts[38]. - Acquisition-related expenses include costs from the RSI acquisition[38].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock AMWD NASDAQ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 2024 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 Num ...

U.S. stocks traded mixed toward the end of trading, with the S&P 500 gaining around 0.2% on Tuesday.The Dow traded up 0.01% to 41,242.33 while the NASDAQ rose 0.24% to 17,768.84. The S&P 500 also rose, gaining, 0.20% to 5,628.04.Check This Out: Jim Cramer Believes In Dell CEO, Doesn’t Like B&G FoodsLeading and Lagging SectorsInformation technology shares climbed by 0.7% on Tuesday.In trading on Tuesday, energy shares fell by 1%.Top HeadlineThe S&P CoreLogic Case-Shiller home price index climbed by 6.5% year ...

If you invest in housing stocks, you need to read this cabinetmaker's latest quarterly report.American Woodmark (AMWD -11.39%) stock sold off hard on Tuesday morning, falling 11% through 12:30 p.m. ET after reporting a big earnings miss.Ahead of the fiscal first-quarter 2025 report the company delivered before the opening bell, analysts had forecast the Virginia cabinetmaker would earn $2.40 per share on sales of $476.6 million. Instead, American Woodmark reported a profit of $1.89 per share and sales of $4 ...