Q1 2025 American Woodmark Corp Earnings Call Transcript
Key Points
- American Woodmark Corp (AMWD) reported adjusted EBITDA of $62.9 million, representing 13.7% of net sales.
- The company has a strong cash balance of $89.3 million and access to an additional $322.9 million under its revolving credit facility.
- Operational excellence efforts continue to drive progress across the enterprise, despite lower volumes.
- The company repurchased 271,000 shares in the quarter, demonstrating confidence in its long-term value.
- Digital transformation and automation efforts are progressing, with significant investments in ERP and CRM systems.
- Net sales declined by 7.9% year-over-year, falling short of expectations due to weaker demand in the remodel channel.
- Gross profit as a percentage of net sales decreased by 180 basis points to 20.2%, impacted by lower sales volumes and increased input costs.
- The repair and remodel market is expected to be down mid-single-digits, with larger discretionary projects projected to decline by high-single-digits.
- Adjusted net income decreased to $29.6 million or $1.89 per diluted share, down from $46.2 million or $2.78 per diluted share last year.
- Free cash flow decreased significantly to $29.4 million from $72.5 million in the prior year, primarily due to higher inventory levels.
Good day, and welcome to the American Woodmark Corporation first fiscal quarter 2025 conference call. Today's call is being recorded, August 27, 2024. During this call, the company may discuss certain non-GAAP financial measures including in our earnings release such as adjusted net income, adjusted EBITDA, adjusted EBITDA margin, free cash flow, net leverage and adjusted EPS per diluted share.
The earnings release, which can be found on our website, americanwoodmark.com, includes definitions of each of these non-GAAP financial measures, the company's rationale for the usage and reconciliation of these non-GAAP financial measures to the most comparable GAAP financial measures.
We also use our website to publish other information that may be important to investors such as investor presentations. We will begin the call by reading the company's safe harbor statement under the Private Securities Litigation Reform Act of 1995. All forward-looking statements may be made by the company involve material risks and uncertainties and are subject to change based on factors that may be beyond the
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