Q2 2025 American Woodmark Corp Earnings Call Transcript
Key Points
- American Woodmark Corp (AMWD) reported positive unit growth in the new construction channel despite overall sales decline.
- The company successfully refinanced its debt with only a slight increase in interest rate exposure.
- Operational excellence improvements and SG&A spending benefits were noted during the quarter.
- American Woodmark Corp (AMWD) has a strong cash position with $56.7 million in cash and access to an additional $313.2 million under its revolving credit facility.
- The company is actively pursuing digital transformation and automation efforts, which are expected to drive future operational efficiencies.
- Net sales declined by 4.5% year-over-year due to softer demand in the remodel market and a slowdown in new construction.
- Gross profit as a percentage of net sales decreased by 290 basis points due to lower sales volumes and increased input costs.
- Adjusted EBITDA margin declined by 200 basis points year-over-year.
- Free cash flow decreased significantly by $79.8 million compared to the prior year.
- The company faces macroeconomic pressures, including high interest rates and lower consumer confidence, impacting large ticket purchases.
Good day, everyone, and welcome to the American Woodmark Corporation's second fiscal quarter 2025 conference call. Today's call is being recorded, November 26, 2024.
During this call, the company may discuss certain non-GAAP financial measures included 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 their usage and a 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'll begin today's call by reading the company's Safe Harbor statement under the Private Securities Litigation Reform Act of 1995. All forward-looking statements made by the company involve material risks and uncertainties and are subject to change based on factors that may be
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