Investors Update: American Woodmark Corporation (NASDAQ: AMWD)

On Tuesday, American Woodmark Corporation (NASDAQ: AMWD) stock recorded daily change of 2.72% to close at $89.88 with the total traded volume of 158,813 shares along average volume of 131173 shares. 52-week range of the stock remained $ 35.3 – 117.7 while its day low price was $87.46 and its hit its day high price at $90.6. Its previous closing value stands at $87.5. AMWD total market capitalization is $1.48B.

American Woodmark Corporation (AMWD) recently reported results for its first fiscal quarter ended July 31, 2020.

Net sales for the first fiscal quarter reduced 8.7% to $390.1M contrast with the same quarter of the previous fiscal year.  The Company experienced declines in all sales channels during the first quarter of fiscal 2021 as both the remodel and new construction markets were negatively influenced by the COVID-19 pandemic.

Net income was $16.5M ($0.97 per diluted share) for the first quarter of fiscal 2021 contrast with $26.9M ($1.59 per diluted share) in the same quarter of the previous fiscal year.  Net income for the first quarter of fiscal 2021 was negatively influenced by lower sales Because of COVID-19, deleveraging of fixed costs across the Company and a decline in efficiency.  The Company incurred pre-tax restructuring costs totaling $3.5M during the first quarter of fiscal 2021 related to the permanent job cuts Because of COVID-19 reported in the fourth quarter of fiscal 2020 and the first quarter of fiscal 2021 and the closure of its Humboldt, Tennessee manufacturing plant reported in June 2020.  Adjusted EPS per diluted share was $1.66 for the first quarter of fiscal 2021 contrast with $2.13 in the same quarter of the previous fiscal year.

Adjusted EBITDA for the first fiscal quarter was $57.0M, or 14.6% of net sales, contrast to $69.6M, or 16.3% of net sales, for the same quarter of the previous fiscal year.

“Our sales and net income were negatively influenced by COVID-19 during our first fiscal quarter, but our teams performed well and drove results that exceeded our initial expectations,” stated Scott Culbreth, President and CEO.  “I want to personally thank all of our employees and suppliers for helping the Company navigate this difficult situation.”

Cash provided by operating activities for the first fiscal quarter was $40.0M and free cash flow totaled $32.2M.  As of July 31, 2020, the Company had $128.1M of cash on hand with no term loan debt maturities until December 2022 plus access to $93.6M of additional availability under its revolving credit facility.

AMWD has a gross margin of 19.50 and an operating margin of 7.10 while its profit margin remained 4.00 for the last 12 months. Its earnings per share (EPS) expected to touch remained -8.60% for this year while earning per share for the next 5-years is expected to reach at 8.00%.

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