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Jan 31, 2024

American Woodmark Q3 2024 Earnings Report

American Woodmark's Q3 2024 financial performance reflected a decrease in net sales but an increase in net income and adjusted EPS, driven by operational improvements and strategic pricing, despite a slowing demand environment.

Key Takeaways

American Woodmark Corporation reported a 12.2% decrease in net sales to $422.1 million for the third quarter of fiscal year 2024, but net income increased by 44.1% to $21.2 million. GAAP EPS was $1.32, and Adjusted EPS was $1.66. The company reaffirmed its outlook for a low double-digit net sales decline for the full fiscal year but increased and narrowed its Adjusted EBITDA outlook to $247 million to $253 million.

Net sales decreased by 12.2% year-over-year to $422.1 million.

Net income increased by 44.1% year-over-year to $21.2 million.

GAAP EPS was reported at $1.32, with an adjusted EPS of $1.66.

The company repurchased 215,629 shares for $19.6 million during the quarter.

Total Revenue
$422M
Previous year: $481M
-12.2%
EPS
$1.66
Previous year: $1.46
+13.7%
Adjusted EBITDA margin
12%
Previous year: 10.6%
+13.2%
Gross Profit
$80.9M
Previous year: $75.3M
+7.4%
Cash and Equivalents
$97.8M
Previous year: $45.8M
+113.5%
Free Cash Flow
$21.8M
Previous year: $47.8M
-54.4%
Total Assets
$1.57B
Previous year: $1.56B
+0.6%

American Woodmark

American Woodmark

Forward Guidance

For the full fiscal year 2024, the company reaffirms a low double digit net sales decline year-over-year, with high single digit declines expected in the fourth fiscal quarter. The Adjusted EBITDA outlook is increased and narrowed to a range of $247 million to $253 million.

Positive Outlook

  • Strong performance for the first three quarters of the fiscal year.
  • Commitment to improving results sustained throughout the year.
  • Adjusted EBITDA outlook increased and narrowed.
  • Improved Adjusted EBITDA by 140 BPS to $50.6 million, or 12.0% of net sales in Q3.
  • Teams have sustained performance throughout the year to help deliver on the commitment to improving our results

Challenges Ahead

  • Reaffirming low double digit net sales decline year-over-year
  • High single digit declines expected in the fourth fiscal quarter
  • Excludes the impact of certain income and expense items that management believes are not part of underlying operations.
  • Management cannot estimate on a forward-looking basis the impact of these income and expense items on its reported net income
  • These items could be significant, are difficult to predict, and may be highly variable.