American Woodmark Announces Fourth Quarter and Year End Results

May 27, 2024  by HFBusiness Staff in Business Strategy, Industry   

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 million

Fiscal 2024 Financial Highlights:
Net sales decreased 10.6% year-over-year to $1,847.5 million
Net income increased 24.0% year-over-year to $116.2 million
GAAP EPS of $7.15; Adjusted EPS of $8.53
Adjusted EBITDA increased 5.2% year-over-year to $252.8 million
Cash provided by operating activities of $230.8 million, free cash flow of $138.5 million
Repurchased 1,108,715 shares for $87.7 million

“Our teams delivered another strong quarter despite the soft remodel market demand environment,” said Scott Culbreth, president and CEO. “Net sales and Adjusted EBITDA exceeded our expectations for the quarter as the demand environment began to improve. For the full fiscal year, our teams grew Adjusted EBITDA to $252.8 million and improved Adjusted EBITDA margin by over 200 bps despite a 10.6% reduction in net sales, which demonstrated our strategic focus on automation and operational excellence is working.”

“Our net sales outlook for fiscal year 2025 is for low single digit growth as we look to grow across all channels. We will continue to invest in the business through automation, capacity and digital transformation to operate as one company allowing us to achieve our long-term targets.”

Balance Sheet & Cash Flow
As of April 30, 2024, the Company had $87.4 million in cash plus access to $322.9 million of additional availability under its revolving credit facility. Also, as of April 30, 2024, the Company had $206.3 million in term loan debt and $163.8 million drawn on its revolving credit facility.

Cash provided by operating activities for the current fiscal year was $230.8 million and free cash flow totaled $138.5 million. The Company repurchased 170,571 shares, or approximately 1.1% of shares outstanding, for $15.9 million during the fourth quarter of fiscal 2024, and 1,108,715 shares, or approximately 7.1% of shares outstanding, for $87.7 million during fiscal 2024. As of April 30, 2024, $89.5 million of funds remained available from the amounts authorized by the Board to repurchase the Company's common stock.

Fiscal 2025 Financial Outlook

For fiscal 2025 the Company expects:
Low single digit net sales increase year-over-year
Adjusted EBITDA in the range of $235 million to $255 million

“Given the strong operational and commercial performance that our teams delivered in our fiscal year 2024, we are projecting our fiscal 2025 net sales to increase low single digits and deliver Adjusted EBITDA in the range of $235 to $255 million,” said Paul Joachimczyk, senior vice president and chief financial officer.

Our Adjusted EBITDA outlook excludes the impact of certain income and expense items that management believes are not part of underlying operations. These items may include restructuring costs, interest expense, stock-based compensation expense, and certain tax items.

Our management cannot estimate on a forward-looking basis the impact of these income and expense items on its reported net income, which could be significant, are difficult to predict, and may be highly variable. As a result, the Company does not provide a reconciliation to the closest corresponding GAAP financial measure for its Adjusted EBITDA outlook.