American Woodmark Corp. (AMWD, Financial) filed Quarterly Report for the period ended 2009-01-31.
AMERICAN WOODMARK CORP. manufactures and distributes kitchen cabinets and vanities for the remodeling and new home construction markets. Co. currently offers framed stock cabinets in almost 100 different cabinet lines ranging in price from relatively inexpensive to medium priced styles. Styles vary by design and color from natural wood finishes to low- pressure laminate surfaces. The entire product offering includes thirty-three door designs and five colors. American Woodmark Corp. has a market cap of $204.83 million; its shares were traded at around $14.5 with and P/S ratio of 0.34. The dividend yield of American Woodmark Corp. stocks is 2.47%.
General and Administrative Expenses. General and administrative expenses for the third quarter of fiscal 2009 were $6.1 million, or 4.7% of sales, compared with $5.9 million, or 4.5% of sales in the same period in fiscal 2008. For the first nine months of fiscal 2009, general and administrative costs were $18.1 million, or 4.5% of net sales, compared with $20.5 million, or 4.5% of net sales for the same period of fiscal 2008. The slight increase in the third quarter expense compared to the prior year was primarily driven by an increase in bad debt expense. As of January 31, 2009, the Company had receivables from customers with a higher perceived level of risk aggregating $1.7 million, of which $0.8 million had been reserved for potential uncollectibility.
On January 31, 2009, the Company’s cash and cash equivalents totaled $64.7 million, representing increases of $7.8 million and $3.6 million from April 30, 2008 and October 31, 2008, respectively. At January 31, 2009, total short-term and long-term debt was $26.2 million, $0.7 million lower than its balance at April 30, 2008. Long-term debt to capital was 10.6% and 10.8% at January 31, 2009 and April 30, 2008, respectively. The Company’s main source of liquidity is cash generated from operating activities consisting of net earnings adjusted for non-cash operating items, primarily depreciation, amortization and non-cash stock-based compensation expense, and changes in operating assets and liabilities such as receivables, inventories, and payables.
Cash provided by operating activities in the first nine months of fiscal 2009 was $26.0 million, compared with $39.3 million in the comparable period of fiscal 2008. The reduction in cash provided from operations was primarily attributable to a decrease in net income and an increase in customer receivables compared with the prior year’s decline, offset by a reduction of accrued expenses and accounts payable.
The Company’s primary investing activities are capital expenditures and investments in promotional displays. Net cash used for investing activities in the first nine months of fiscal 2009 was $11.2 million, $4.3 million less than in prior year. Additions to property, plant, and equipment for the first nine months of fiscal 2009 were $3.7 million less than in the first nine months of fiscal 2008. Property, plant, and equipment additions made in both periods did not reflect any new plant construction activities. The Company’s investment in promotional displays for the first nine months of fiscal 2009 was $0.5 million less than in the first nine months of fiscal 2008. The Company expects its investments in capital expenditures and promotional displays for fiscal 2009 will be approximately $5 million less than in fiscal 2008.
During the first nine months of fiscal 2009, net cash used by financing activities was $7.1 million, compared with net cash used in the comparable period of fiscal 2008 of $26.5 million. Cash returned to shareholders in the form of stock repurchases and cash dividends aggregated $6.3 million and $26.4 million in the first nine months of fiscal year 2009 and 2008, respectively.
Read the The complete ReportAMWD is in the portfolios of Chuck Akre of Akre Capital Management, LLC.
AMERICAN WOODMARK CORP. manufactures and distributes kitchen cabinets and vanities for the remodeling and new home construction markets. Co. currently offers framed stock cabinets in almost 100 different cabinet lines ranging in price from relatively inexpensive to medium priced styles. Styles vary by design and color from natural wood finishes to low- pressure laminate surfaces. The entire product offering includes thirty-three door designs and five colors. American Woodmark Corp. has a market cap of $204.83 million; its shares were traded at around $14.5 with and P/S ratio of 0.34. The dividend yield of American Woodmark Corp. stocks is 2.47%.
Highlight of Business Operations:
Selling and Marketing Expenses. Selling and marketing expenses for the third quarter of fiscal 2009 were $14.8 million, or 11.3% of sales, compared with $16.5 million, or 12.5% of sales, for the same period in fiscal 2008. For the first nine months of fiscal 2009, selling and marketing costs were $45.5 million, or 11.2% of net sales, compared with $55.3 million, or 12.0% of net sales, for the same period of fiscal 2008. The decrease in selling and marketing expenses resulted from careful management of the Company’s spending, focusing on reducing costs that are not essential to servicing customers or maintaining customer touch points, which remain central to the Company’s strategy of protecting its customer relationships and continuing to gain market share. Cost reductions occurred across several categories of spend, including lower volume-driven costs such as sales promotions, model home installations, promotional literature, and to a lesser extent, reduced headcount levels compared with prior year.General and Administrative Expenses. General and administrative expenses for the third quarter of fiscal 2009 were $6.1 million, or 4.7% of sales, compared with $5.9 million, or 4.5% of sales in the same period in fiscal 2008. For the first nine months of fiscal 2009, general and administrative costs were $18.1 million, or 4.5% of net sales, compared with $20.5 million, or 4.5% of net sales for the same period of fiscal 2008. The slight increase in the third quarter expense compared to the prior year was primarily driven by an increase in bad debt expense. As of January 31, 2009, the Company had receivables from customers with a higher perceived level of risk aggregating $1.7 million, of which $0.8 million had been reserved for potential uncollectibility.
On January 31, 2009, the Company’s cash and cash equivalents totaled $64.7 million, representing increases of $7.8 million and $3.6 million from April 30, 2008 and October 31, 2008, respectively. At January 31, 2009, total short-term and long-term debt was $26.2 million, $0.7 million lower than its balance at April 30, 2008. Long-term debt to capital was 10.6% and 10.8% at January 31, 2009 and April 30, 2008, respectively. The Company’s main source of liquidity is cash generated from operating activities consisting of net earnings adjusted for non-cash operating items, primarily depreciation, amortization and non-cash stock-based compensation expense, and changes in operating assets and liabilities such as receivables, inventories, and payables.
Cash provided by operating activities in the first nine months of fiscal 2009 was $26.0 million, compared with $39.3 million in the comparable period of fiscal 2008. The reduction in cash provided from operations was primarily attributable to a decrease in net income and an increase in customer receivables compared with the prior year’s decline, offset by a reduction of accrued expenses and accounts payable.
The Company’s primary investing activities are capital expenditures and investments in promotional displays. Net cash used for investing activities in the first nine months of fiscal 2009 was $11.2 million, $4.3 million less than in prior year. Additions to property, plant, and equipment for the first nine months of fiscal 2009 were $3.7 million less than in the first nine months of fiscal 2008. Property, plant, and equipment additions made in both periods did not reflect any new plant construction activities. The Company’s investment in promotional displays for the first nine months of fiscal 2009 was $0.5 million less than in the first nine months of fiscal 2008. The Company expects its investments in capital expenditures and promotional displays for fiscal 2009 will be approximately $5 million less than in fiscal 2008.
During the first nine months of fiscal 2009, net cash used by financing activities was $7.1 million, compared with net cash used in the comparable period of fiscal 2008 of $26.5 million. Cash returned to shareholders in the form of stock repurchases and cash dividends aggregated $6.3 million and $26.4 million in the first nine months of fiscal year 2009 and 2008, respectively.
Read the The complete ReportAMWD is in the portfolios of Chuck Akre of Akre Capital Management, LLC.
