American Woodmark Corporation Announces Fourth Quarter Results

WINCHESTER, Va., June 4 /PRNewswire-FirstCall/ -- American Woodmark Corporation (NASDAQ:AMWD) today announced results for its fourth quarter of fiscal year 2008, that ended on April 30, 2008.

Net sales declined 14% as compared with the fourth quarter of the prior fiscal year to $143,302,000. Remodeling sales declined by a mid single-digit percentage and new construction sales declined more than 25% as compared with the fourth quarter of the prior year. Net sales for the fiscal year ended April 30, 2008, declined 21% to $602,426,000 as compared with the prior fiscal year. Sales of core products, which exclude sales of low-margin products that were completely transitioned out of the Company's sales mix in the third quarter of the prior year, declined 16% during the fiscal year.

Net income for the fourth quarter of fiscal 2008 was $36,000, or $0.00 per diluted share, compared with net income of $6,180,000, or $0.40 per diluted share, in the prior year. Net income for fiscal year 2008 was $4,271,000, or $0.29 per diluted share, compared with the prior year's $32,561,000, or $2.04 per diluted share.

Gross profit for the fourth quarter of fiscal 2008 was 16.3% of sales, compared with 20.9% in the previous year. Gross profit for fiscal year 2008 was 17.1% of sales, down from 20.5% in the prior year. The decline in gross profit margin primarily reflected the unfavorable impact of inefficiencies in labor, overhead and freight costs stemming from lower sales volumes, as well as the impact of rising fuel prices upon freight and materials costs.

Selling, general and administrative costs were 16.0% of net sales in the fourth quarter of fiscal 2008, up from 15.5% of net sales in the prior year. Selling, general and administrative costs were 16.4% of net sales in fiscal year 2008, up from 14.0% in the prior year. The Company reduced its operating expenses during the fourth quarter and entire fiscal year 2008 as compared with the comparable prior year periods by 10% and 7%, respectively, driven primarily by reduced performance-based compensation and reduced spending. These reductions in cost were more than offset by the Company's sales decline.

The Company generated free cash flow of $4.7 million in the fourth quarter of fiscal 2008 (defined as cash provided by operating activities net of cash used for investing activities), and used this cash to return $3.2 million to its shareholders in the form of stock repurchases of $1.9 million and dividend payments of $1.3 million. For the fiscal year, the Company generated $28.6 million of free cash flow, and returned $29.6 million to its shareholders in the form of stock repurchases totaling $24.8 million and dividend payments of $4.8 million.

American Woodmark Corporation manufactures and distributes kitchen cabinets and vanities for the remodeling and new home construction markets. Its products are sold on a national basis directly to home centers, major builders and through a network of independent distributors. The Company presently operates fourteen manufacturing facilities and nine service centers across the country.

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 beyond the Company's control. Accordingly, the Company's future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to, those described in the Company's filings with the Securities and Exchange Commission and the Annual Report to Shareholders. The Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.

AMWD-F
AMWD-E

AMERICAN WOODMARK CORPORATION

Unaudited Financial Highlights

(in thousands, except share data)
------------------------------------------------------------------------
Operating Results
-----------------
Three Months Ended Twelve Months Ended
April 30 April 30
--------------------------------------------- 2008 2007 2008 2007
--------- --------- --------- ---------
Net Sales $143,302 $166,131 $602,426 $760,925
Cost of Sales &
Distribution 119,905 131,354 499,299 605,106
--------- --------- --------- --------- Gross Profit 23,397 34,777 103,127 155,819
Sales & Marketing Expense 16,585 18,294 71,875 71,009
G&A Expense 6,414 7,397 26,870 35,402
--------- --------- --------- --------- Operating Income 398 9,086 4,382 49,408
Interest & Other (Income)
Expense (90) (320) (1,303) (1,770)
Income Tax Expense 452 3,226 1,414 18,617
--------- --------- --------- ---------
Net Income $36 $6,180 $4,271 $32,561
--------- --------- --------- ---------
Earnings Per Share:

Weighted Average Shares
Outstanding - Diluted 14,217,668 15,591,792 14,539,545 15,976,417

Earnings Per Diluted
Share $- $0.40 $0.29 $2.04

Balance Sheet
--------------
April 30, April 30,
2008 2007
---------- ---------- Cash & Cash Equivalents $56,932 $58,125
Customer Receivables 27,744 38,074
Inventories 46,981 56,349
Other Current Assets 11,731 11,260
---------- ---------- Total Current Assets 143,388 163,808
Property, Plant & Equipment 150,840 166,821
Other Assets 20,571 18,066
---------- ---------- Total Assets $314,799 $348,695
---------- ----------
Current Portion - Long-Term Debt $864 $854
Accounts Payable & Accrued Expenses 55,170 67,206
---------- ---------- Total Current Liabilities 56,034 68,060
Long-Term Debt 26,043 26,908
Other Liabilities 18,088 27,630
---------- ---------- Total Liabilities 100,165 122,598
Stockholders' Equity 214,634 226,097
---------- ---------- Total Liabilities & Stockholders'
Equity $314,799 $348,695
---------- ----------

Condensed Consolidated Statements of Cash Flows
------------------------------------------------
Twelve Months Ended
April 30

2008 2007
-------- --------
Net Cash Provided by Operating
Activities $47,639 $86,479
Net Cash Used by Investing Activities (19,030) (28,146)
Net Cash Used by Financing Activities (29,802) (48,163)
-------- --------
Net Increase in Cash and Cash
Equivalents (1,193) 10,170
Cash and Cash Equivalents, Beginning
of Period 58,125 47,955
-------- --------
Cash and Cash Equivalents, End of
Period $56,932 $58,125
-------- --------

First Call Analyst:
FCMN Contact:

Source: American Woodmark Corporation

CONTACT: Glenn Eanes, Vice President and Treasurer, American Woodmark
Corporation, +1-540-665-9100

2008-06-04 06:32:03 0376905 PRNEWSWIRE