On August 27, 2024, American Woodmark Corp (AMWD, Financial) released its 8-K filing for the first fiscal quarter ended July 31, 2024. American Woodmark Corp manufactures and distributes cabinets and vanities for the remodeling and new home construction markets, offering products under brand names such as American Woodmark, Timberlake, Shenandoah Cabinetry, and Waypoint Living Spaces.
Performance Overview
American Woodmark Corp (AMWD, Financial) reported net sales of $459.1 million for the first quarter of fiscal 2025, a decrease of 7.9% compared to the same quarter last fiscal year. This figure fell short of the analyst estimate of $476.60 million. Net income for the quarter was $29.6 million, or $1.89 per diluted share, missing the analyst estimate of $1.96 per share. The company attributed the decline in net sales to weaker than projected demand in the remodel market, which offset growth in the new construction market.
Financial Achievements and Challenges
Despite the challenges, American Woodmark Corp (AMWD, Financial) achieved an adjusted EBITDA of $62.9 million, representing 13.7% of net sales. However, this was a decrease from $75.2 million, or 15.1% of net sales, in the same quarter last fiscal year. The company also repurchased 271,460 shares for $24.0 million during the quarter.
“Our team delivered net sales growth in the new construction market, but this was more than offset by weaker than projected demand in the remodel market,” said Scott Culbreth, President and CEO.
Income Statement Highlights
| Metric | Q1 FY2025 | Q1 FY2024 |
|---|---|---|
| Net Sales | $459.1 million | $498.3 million |
| Net Income | $29.6 million | $37.9 million |
| EPS (Diluted) | $1.89 | $2.28 |
Balance Sheet and Cash Flow
As of July 31, 2024, American Woodmark Corp (AMWD, Financial) had $89.3 million in cash and access to $322.9 million under its revolving credit facility. The company reported $206.3 million in term loan debt and $163.8 million drawn on its revolving credit facility. Cash provided by operating activities was $40.8 million, with free cash flow totaling $29.4 million.
Analysis and Outlook
The company's performance highlights the ongoing challenges in the remodel market, which have impacted overall sales and profitability. However, the growth in the new construction market and strategic share repurchases demonstrate a commitment to long-term value creation. The company's focus on optimizing platform expansion investments and operational improvements positions it well for future market conditions.
“Despite these macroeconomic demand challenges, we continue to target share gains in all channels to ensure our performance exceeds market demand for the fiscal year,” added Culbreth.
For fiscal 2025, American Woodmark Corp (AMWD, Financial) expects a low single-digit decline in net sales year-over-year and adjusted EBITDA in the range of $225 million to $245 million.
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Explore the complete 8-K earnings release (here) from American Woodmark Corp for further details.
