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Jul 31, 2021

American Woodmark Q1 2022 Earnings Report

Reported an increase in net sales but a decrease in net income due to inflationary pressures.

Key Takeaways

American Woodmark Corporation announced first quarter fiscal 2022 results with net sales increasing by 13.5% to $442.6 million. However, net income decreased to $3.0 million ($0.18 per diluted share) due to rapidly evolving inflationary pressures outpacing pricing actions.

Net sales increased by 13.5% to $442.6 million compared to the same quarter of the prior fiscal year.

Net income decreased to $3.0 million ($0.18 per diluted share) compared to $16.1 million ($0.94 per diluted share) in the prior year.

Adjusted EPS per diluted share was $0.70 compared to $1.63 in the same quarter of the prior fiscal year.

Adjusted EBITDA decreased by 43.1% to $32.1 million, or 7.3% of net sales.

Total Revenue
$443M
Previous year: $390M
+13.5%
EPS
$0.7
Previous year: $1.66
-57.8%
Adjusted EBITDA margin
7.3%
Previous year: 14.6%
-50.0%
Gross Profit
$53.4M
Previous year: $80.1M
-33.3%
Cash and Equivalents
$27.8M
Previous year: $128M
-78.3%
Free Cash Flow
-$8.1M
Previous year: $32.2M
-125.2%
Total Assets
$1.59B
Previous year: $1.67B
-4.7%

American Woodmark

American Woodmark

Forward Guidance

The company focuses on increasing production to match strong demand, reducing backlog, and realizing additional pricing actions to mitigate inflationary pressures in materials, logistics, and labor.

Positive Outlook

  • Focus on increasing production to match a strong demand environment.
  • Reducing backlog.
  • Realizing additional pricing actions to mitigate inflationary pressures in materials.
  • Mitigating inflationary pressures in logistics.
  • Mitigating inflationary pressures in labor.