American Woodmark (US:AMWD)2024-11-26 21:09Financial 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]