[Fiscal First Quarter 2025 Financial Highlights](index=1&type=section&id=Fiscal%20First%20Quarter%202025%20Financial%20Highlights) American Woodmark reported first-quarter fiscal 2025 results with net sales of $459.1 million and net income of $29.6 million, or $1.89 per share, generating $62.9 million in Adjusted EBITDA and $29.4 million in free cash flow, while repurchasing $24.0 million of common stock Q1 FY2025 Key Financial Metrics | Metric | Value (million USD) | | :--- | :--- | | Net Sales | $459.1 | | Net Income | $29.6 | | GAAP EPS (USD) | $1.89 | | Adjusted EBITDA | $62.9 | | Cash from Operations | $40.8 | | Free Cash Flow | $29.4 | - The company repurchased **271,460 shares** for **$24.0 million** during the first quarter[2](index=2&type=chunk)[5](index=5&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management noted new construction market sales growth was offset by weaker remodel market demand, a softness expected to persist, while focusing on market share gains, platform optimization, and operational improvements for future recovery - CEO Scott Culbreth stated that net sales growth in the new construction market was more than offset by weaker demand in the remodel market[3](index=3&type=chunk) - The company aims to achieve share gains in all channels to ensure its performance surpasses market demand for the fiscal year[3](index=3&type=chunk) - CFO Paul Joachimczyk noted that despite weaker sales, teams are focused on optimizing platform expansion investments and making operational improvements[7](index=7&type=chunk) [Financial Performance](index=1&type=section&id=Financial%20Performance) For Q1 FY2025, net sales decreased 7.9% year-over-year to $459.1 million, with net income falling to $29.6 million from $37.9 million due to lower sales and a $6.3 million unfavorable mark-to-market adjustment on currency hedges, partially offset by the conclusion of an $11.4 million acquisition-related amortization expense, leading to a 16.3% decrease in Adjusted EBITDA to $62.9 million and a margin contraction to 13.7% Q1 FY2025 vs Q1 FY2024 Performance | Metric | Q1 FY2025 (million USD) | Q1 FY2024 (million USD) | Change (%) | | :--- | :--- | :--- | :--- | | Net Sales | $459.1 | $498.3 | -7.9 | | Net Income | $29.6 | $37.9 | -21.9 | | Diluted EPS (USD) | $1.89 | $2.28 | -17.1 | | Adjusted EBITDA | $62.9 | $75.2 | -16.3 | | Adjusted EBITDA Margin (%) | 13.7 | 15.1 | -1.4 p.p. | - The decrease in net income was primarily due to lower net sales and a **$6.3 million** unfavorable mark-to-market adjustment on foreign currency hedging instruments[4](index=4&type=chunk) - The decline was partly offset by the roll-off of **$11.4 million** in acquisition-related intangible asset amortization, which ended in Q3 of the prior fiscal year[4](index=4&type=chunk) Unaudited Operating Results (in thousands) | Description | Three Months Ended July 31, 2024 (thousand USD) | Three Months Ended July 31, 2023 (thousand USD) | | :--- | :--- | :--- | | Net Sales | $459,128 | $498,255 | | Gross Profit | $92,866 | $109,609 | | Operating Income | $47,027 | $49,827 | | Net Income | $29,633 | $37,850 | | Net Income per Diluted Share (USD) | $1.89 | $2.28 | [Balance Sheet and Cash Flow](index=1&type=section&id=Balance%20Sheet%20and%20Cash%20Flow) As of July 31, 2024, American Woodmark held $89.3 million in cash and had access to an additional $322.9 million under its revolving credit facility, with total debt including a $206.3 million term loan and $163.8 million drawn on its revolver, while generating $40.8 million in operating cash flow and $29.4 million in free cash flow, and returning $24.0 million to shareholders via buybacks - As of July 31, 2024, the company had **$89.3 million** in cash and access to **$322.9 million** of additional availability under its revolving credit facility[5](index=5&type=chunk) Condensed Consolidated Balance Sheet (in thousands) | Account | July 31, 2024 (thousand USD) | April 30, 2024 (thousand USD) | | :--- | :--- | :--- | | Cash & Cash Equivalents | $89,265 | $87,398 | | Total Current Assets | $415,222 | $402,710 | | Total Assets | $1,623,423 | $1,593,865 | | Total Current Liabilities | $209,356 | $195,726 | | Total Liabilities | $709,584 | $683,489 | | Stockholders' Equity | $913,839 | $910,376 | Condensed Cash Flow Statement (in thousands) | Description | Three Months Ended July 31, 2024 (thousand USD) | Three Months Ended July 31, 2023 (thousand USD) | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $40,811 | $86,721 | | Net Cash Used by Investing Activities | ($11,394) | ($14,223) | | Net Cash Used by Financing Activities | ($27,550) | ($24,580) | | Net Increase in Cash | $1,867 | $47,918 | - The company repurchased **271,460 shares** (approx. **1.8%** of shares outstanding) for **$24.0 million**, with **$65.4 million** remaining available for future repurchases[5](index=5&type=chunk) [Fiscal 2025 Financial Outlook](index=1&type=section&id=Fiscal%202025%20Financial%20Outlook) For the full fiscal year 2025, the company anticipates a low single-digit decline in net sales compared to the prior year, with Adjusted EBITDA projected to be in the range of $225 million to $245 million - Expects a low single-digit decline in net sales year-over-year for fiscal 2025[6](index=6&type=chunk) - Forecasts Adjusted EBITDA to be in the range of **$225 million** to **$245 million** for fiscal 2025[7](index=7&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) The company uses non-GAAP financial measures such as EBITDA, Adjusted EBITDA, Adjusted EPS, Free Cash Flow, and Net Leverage to evaluate business performance, adjusting for items like acquisition-related expenses, restructuring charges, stock-based compensation, and changes in fair value of derivatives to provide a clearer view of underlying operations, with detailed reconciliations included for each measure to its closest GAAP equivalent - The company uses non-GAAP measures like **EBITDA**, **Adjusted EBITDA**, **Adjusted EPS**, **Free Cash Flow**, and **Net Leverage** to analyze performance[14](index=14&type=chunk)[15](index=15&type=chunk)[18](index=18&type=chunk) - Adjusted EBITDA excludes items such as restructuring costs, stock-based compensation expense, and changes in fair value of foreign exchange forward contracts[16](index=16&type=chunk) - Adjusted EPS per diluted share excludes items such as non-recurring restructuring charges and the amortization of customer relationship intangibles[18](index=18&type=chunk) [Reconciliation of EBITDA and Adjusted EBITDA](index=6&type=section&id=Reconciliation%20of%20EBITDA%2C%20Adjusted%20EBITDA%20and%20Adjusted%20EBITDA%20margin) In Q1 FY2025, Adjusted EBITDA was $62.9 million (13.7% margin), down from $75.2 million (15.1% margin) in Q1 FY2024, with the reconciliation from GAAP Net Income of $29.6 million including add-backs for taxes, interest, D&A, and a $5.3 million unfavorable change in the fair value of foreign exchange contracts Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Description | Three Months Ended July 31, 2024 (thousand USD) | Three Months Ended July 31, 2023 (thousand USD) | | :--- | :--- | :--- | | **Net Income (GAAP)** | **$29,633** | **$37,850** | | Income Tax Expense | $9,864 | $10,615 | | Interest Expense, Net | $2,290 | $2,437 | | Depreciation and Amortization | $12,802 | $11,745 | | Amortization of Customer Relationship Intangibles | — | $11,417 | | **EBITDA (Non-GAAP)** | **$54,589** | **$74,064** | | Change in Fair Value of Foreign Exchange Forward Contracts | $5,309 | ($1,015) | | Stock-Based Compensation Expense | $2,941 | $2,247 | | Other Adjustments | $58 | ($145) | | **Adjusted EBITDA (Non-GAAP)** | **$62,897** | **$75,151** | [Reconciliation of Adjusted EPS](index=8&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20Net%20Income) For Q1 FY2025, both GAAP EPS and Adjusted EPS were $1.89 per diluted share, compared to the prior-year quarter where GAAP EPS was $2.28 and Adjusted EPS was $2.78, with the prior-year adjustment primarily excluding the amortization of customer relationship intangibles Reconciliation of Net Income to Adjusted Net Income (in thousands, except share data) | Description | Three Months Ended July 31, 2024 (thousand USD) | Three Months Ended July 31, 2023 (thousand USD) | | :--- | :--- | :--- | | **Net Income (GAAP)** | **$29,633** | **$37,850** | | Amortization of Customer Relationship Intangibles | — | $11,417 | | Other Adjustments & Tax Benefit | — | ($3,112) | | **Adjusted Net Income (Non-GAAP)** | **$29,633** | **$46,175** | | **EPS per Diluted Share (GAAP) (USD)** | **$1.89** | **$2.28** | | **Adjusted EPS per Diluted Share (Non-GAAP) (USD)** | **$1.89** | **$2.78** | [Reconciliation of Free Cash Flow](index=8&type=section&id=Free%20Cash%20Flow) The company's free cash flow for Q1 FY2025 was $29.4 million, a significant decrease from $72.5 million in the same period last year, derived by subtracting capital expenditures of $11.4 million from $40.8 million of net cash provided by operating activities Free Cash Flow Calculation (in thousands) | Description | Three Months Ended July 31, 2024 (thousand USD) | Three Months Ended July 31, 2023 (thousand USD) | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $40,811 | $86,721 | | Less: Capital Expenditures | $11,399 | $14,227 | | **Free Cash Flow** | **$29,412** | **$72,494** | [Net Leverage](index=9&type=section&id=Net%20Leverage) As of July 31, 2024, the company's net leverage ratio was 1.19x, based on net debt of $285.6 million (total debt of $374.9 million less $89.3 million cash) and a trailing twelve-month Adjusted EBITDA of $240.5 million Net Leverage Calculation (as of July 31, 2024) | Component | Value (thousand USD) | | :--- | :--- | | Total Debt | $374,879 | | Less: Cash and Cash Equivalents | ($89,265) | | **Net Debt** | **$285,614** | | | | | Trailing 12 Months Adjusted EBITDA | $240,519 | | **Net Leverage (x)** | **1.19** |

Joe Hendrickson Introduction American Woodmark (NASDAQ:AMWD) has seen their share price decline ~16% on a year-to-date basis and nearly 25% since the high reached in March, prompting me to swing around. Simply put, this is a business that should grow over time, being levered toward residential (and some commercial) construction. However, a number of questionable moves by management over the past few years - and respective underperformance - in addition to potential pricing pressure from capacity growth ...

American Woodmark (AMWD) is a Zacks Rank #5 (Strong Sell) as earnings estimates have tracked lower after a recent earnings miss.  The company is the third largest manufacture of kitchen and bath cabinets. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.DescriptionAmerican Woodmark Corp. engages in the manufacture and distribution of kitchen cabinets and vanities for the remodeling and new home construction markets. The company was founded by William F. ...

Sales and Market Share - For the fiscal year ended April 30, 2024, Home Depot and Lowe's combined accounted for approximately 41.6% of net sales[14] - Approximately 41.6% of total net sales during fiscal year 2024 came from Home Depot and Lowe's, indicating a significant reliance on these two customers[38] - Builders represented approximately 42.4% of net sales during fiscal 2024, highlighting the importance of this channel[15] - Independent dealers and distributors accounted for approximately 16.0% of net sales in fiscal 2024, indicating a strong growth opportunity[16] - The company holds an estimated 10% market share in the U.S. cabinet market, ranking as the second or third largest player[31] Manufacturing and Operations - The company operates 18 manufacturing facilities across the U.S. and Mexico, enhancing production capacity and efficiency[17] - A new manufacturing facility in Monterrey, Mexico, began operations in the third quarter of fiscal 2024, expanding production capabilities[17] - The company operates 18 manufacturing facilities in the U.S. and Mexico, enhancing productivity and efficiency through vertical integration and automation[34] - The company has made significant investments in automation to improve productivity and reduce manufacturing costs[17] - Manufacturing expansions and realignments may lead to short-term earnings decreases until capacity and cost savings are realized[52] Financial Performance and Risks - Fluctuating raw material and energy costs could materially impact manufacturing costs and overall financial performance[41] - Economic downturns could lead to longer periods of recession in the cabinetry industry, adversely affecting sales and earnings[44] - The company's consolidated indebtedness could increase vulnerability to economic conditions and reduce liquidity, impacting operations and capital expenditures[61] - Future acquisitions may result in dilution to existing shareholders and could adversely affect financial condition if integration is unsuccessful[74] - Environmental compliance costs and liabilities could materially impact the company's financial condition and operations[69] Customer Relationships and Market Dynamics - The company has an average relationship length of over 20 years with its top 10 customers, indicating strong customer loyalty[33] - Increased buying power of large customers due to consolidation may limit the company's ability to maintain or raise prices, adversely affecting sales and financial position[60] - The company faces competition from both domestic and international manufacturers, which may affect market share and pricing strategies[45] Operational Challenges - The company is exposed to risks associated with global operations, including political, economic, and regulatory changes in the markets where it operates[53] - The company faces risks related to the timely procurement of raw materials, which could adversely affect manufacturing and marketing capabilities[57] - The company does not enter into long-term contracts with suppliers, relying instead on purchase orders, which may lead to sourcing interruptions and inefficiencies[59] - The company is implementing an Enterprise Resource Planning (ERP) system, which may disrupt operations and incur significant costs[67] - The company relies on information technology systems, which are vulnerable to cybersecurity threats that could disrupt operations and harm reputation[68] - The company may face challenges in attracting and retaining qualified personnel, which could impair growth potential and increase costs[75] - Natural disasters or terrorist acts could disrupt manufacturing and distribution, adversely affecting business operations and financial results[78] Strategic Initiatives - The company’s GDP strategy focuses on Growth, Digital Transformation, and Platform Design to drive long-term profitability[10] - The company has established a commitment to operational excellence to manage cost inflation and enhance quality[18] - The company has implemented Right Environment Councils to promote diversity and inclusion across all locations[29] - The OSHA recordable rate was 1.42 during fiscal 2024, which is 57% better than the industry average of 3.3[27]

Investors in American Woodmark Corporation (AMWD) need to pay close attention to the stock based on moves in the options market lately. That is because the Jul 19, 2024 $40 Call had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It ...

American Woodmark Corporation (NASDAQ:AMWD) Q4 2024 Results Conference Call May 23, 2024 4:30 PM ET Company Participants Paul Joachimczyk - Senior Vice President and Chief Financial Officer Scott Culbreth - President and Chief Executive Officer Conference Call Participants Brian Biros - Thompson Research Group Zack Pacheco - Loop Capital Collin Verron - Jefferies Tim Wojs - Baird Operator Good day, and welcome to the American Woodmark Corporation Fourth Fiscal Quarter 2024 Conference Call. Today's call is b ...

American Woodmark (AMWD) came out with quarterly earnings of $1.70 per share, missing the Zacks Consensus Estimate of $1.75 per share. This compares to earnings of $2.21 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -2.86%. A quarter ago, it was expected that this cabinet maker would post earnings of $1.13 per share when it actually produced earnings of $1.66, delivering a surprise of 46.90%.Over the last four quarters, the ...

Exhibit 99.1 American Woodmark American Woodmark Announces Fiscal Fourth Quarter and Fiscal Year Results Fiscal Fourth Quarter 2024 Financial Highlights: • Net sales decreased 5.8% year-over-year to $453.3 million • Net income decreased 11.1% year-over-year to $26.8 million • GAAP EPS of $1.69; Adjusted EPS of $1.70 • Adjusted EBITDA decreased 16.2% year-over-year to $54.7 million • Cash provided by operating activities of $43.3 million, free cash flow of $6.8 million • Repurchased 170,571 shares for $15.9 ...

American Woodmark Corporation (AMWD) is slated to release fourth-quarter fiscal 2024 results on May 23, after market close.In the last reported quarter, the company’s earnings per share (EPS) and net sales surpassed the Zacks Consensus Estimate by 46.9% and 15.1%, respectively. On a year-over-year basis, revenues decreased 12.2%, but adjusted EPS increased 13.7%.American Woodmark’s bottom line topped the consensus mark in the trailing four quarters, an average surprise being 41.3%.Trend in Estimate Revision ...

Company Overview - American Woodmark (AMWD) is currently rated as a 1 (Strong Buy) by Zacks, with an A grade for Value [2] - The stock has a Forward P/E ratio of 9.83, significantly lower than the industry average of 13.66 [2] - Over the past 52 weeks, AMWD's Forward P/E has fluctuated between a high of 11.88 and a low of 7.28, with a median of 10.66 [2] Valuation Metrics - AMWD has a Price-to-Book (P/B) ratio of 1.60, which is attractive compared to the industry's average P/B of 3.45 [2] - The P/B ratio for AMWD has ranged from a high of 1.81 to a low of 0.93 over the past year, with a median of 1.42 [2] - The Price-to-Cash Flow (P/CF) ratio for AMWD stands at 6.95, compared to the industry's average P/CF of 12.14 [3] - AMWD's P/CF has varied between a high of 7.87 and a low of 4.36 over the past year, with a median of 6.36 [3] Investment Outlook - The combination of AMWD's strong valuation metrics suggests that the stock is likely undervalued at present [3] - Considering the strength of its earnings outlook, AMWD is positioned as an impressive value stock currently [3]