On May 23, 2024, American Woodmark Corp (AMWD, Financial) released its 8-K filing detailing the financial results for its fourth fiscal quarter and fiscal year ended April 30, 2024. American Woodmark Corp manufactures and distributes kitchen cabinets and vanities for the remodeling and new home construction markets. The company offers framed stock cabinets in over 400 different cabinet lines and prices from relatively inexpensive to medium-priced styles. Its products are sold on a national basis across the United States to the remodeling and new home construction markets. The products are sold under the brand names American Woodmark, Simply Woodmark, Timberlake, Shenandoah Cabinetry, Shenandoah Value Series, and Waypoint Living Spaces.
Fourth Quarter Financial Highlights
For the fourth quarter of fiscal 2024, American Woodmark Corp reported a 5.8% year-over-year decrease in net sales to $453.3 million, missing the analyst estimate of $440.86 million. Net income for the quarter decreased by 11.1% year-over-year to $26.8 million, translating to a GAAP EPS of $1.69 and an adjusted EPS of $1.70, which fell short of the estimated $1.83 per share. Adjusted EBITDA also saw a decline of 16.2% year-over-year to $54.7 million.
Fiscal Year 2024 Financial Highlights
Despite the quarterly decline, American Woodmark Corp's annual performance showed resilience. Net sales for the fiscal year decreased by 10.6% to $1,847.5 million, slightly above the estimated $1,835.07 million. However, net income increased by 24.0% year-over-year to $116.2 million, resulting in a GAAP EPS of $7.15 and an adjusted EPS of $8.53, surpassing the annual estimate of $6.89 per share. Adjusted EBITDA for the fiscal year increased by 5.2% to $252.8 million.
Balance Sheet and Cash Flow
As of April 30, 2024, American Woodmark Corp had $87.4 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 for the fiscal year was $230.8 million, with free cash flow totaling $138.5 million. The company repurchased 1,108,715 shares for $87.7 million during the fiscal year.
Performance Analysis
American Woodmark Corp's performance in the fourth quarter was impacted by a decrease in net sales and one-time startup costs for new locations in Hamlet, North Carolina, and Monterrey, Mexico. However, the company's annual performance was bolstered by better pricing strategies and increased operational efficiencies, which offset the decline in net sales. The company's strategic focus on automation and operational excellence has shown positive results, as evidenced by the improvement in adjusted EBITDA margin by over 200 basis points.
Key Financial Metrics
| Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Net Sales | $453.3 million | $481.1 million | $1,847.5 million | $2,066.2 million |
| Net Income | $26.8 million | $30.1 million | $116.2 million | $93.7 million |
| GAAP EPS | $1.69 | $1.80 | $7.15 | $5.62 |
| Adjusted EPS | $1.70 | $2.21 | $8.53 | $7.62 |
| Adjusted EBITDA | $54.7 million | $65.3 million | $252.8 million | $240.4 million |
Commentary
“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.”
Fiscal 2025 Outlook
Looking ahead, American Woodmark Corp expects a low single-digit increase in net sales for fiscal 2025 and projects adjusted EBITDA to be in the range of $235 million to $255 million. The company plans to continue investing in automation, capacity, and digital transformation to achieve its long-term targets.
For more detailed financial information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from American Woodmark Corp for further details.
