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Oct 31, 2021
American Woodmark Q2 2022 Earnings Report
Announced second quarter results, with net sales increasing slightly but net income decreasing due to inflationary pressures.
Key Takeaways
American Woodmark Corporation reported a slight increase in net sales for the second quarter of fiscal 2022, but experienced a significant decrease in net income due to inflationary pressures outpacing pricing actions. Adjusted EBITDA margins were below expectations due to labor and supply chain challenges.
Net sales increased by 1.0% to $453.2 million compared to the same quarter of the prior fiscal year.
Net income decreased to $2.0 million ($0.12 per diluted share) compared to $23.1 million ($1.36 per diluted share) in the prior year.
Adjusted EPS per diluted share was $0.62 compared to $2.02 in the same quarter of the prior fiscal year.
Adjusted EBITDA decreased by 53.4% to $30.8 million, or 6.8% of net sales.
Forward Guidance
The company expects Adjusted EBITDA margins to improve as price realization better matches inflationary impacts and productivity and production levels increase.
Positive Outlook
- Confirmed pricing actions expected to increase in the fourth fiscal quarter of 2022 by an additional $36 million versus the second quarter's realized pricing actions, to over $50 million per quarter
- Retention efforts are expected to continue improving staffing levels.
- Incremental production capacity expected to reduce backlog.
- Long-term potential for the business remains strong.
- Expectations for productivity improvements.
Challenges Ahead
- Supply chain challenges remain.
- Labor challenges remain.
- Logistics challenges remain.
- Increased costs associated with supply chain, labor and logistics challenges.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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