American Woodmark Corporation (NASDAQ: AMWD) today announced results for its third fiscal quarter ended January 31, 2020.
Net sales for the third fiscal quarter increased 3.0% to $395.8 million compared with the same quarter of the prior fiscal year. The Company experienced growth in the builder and home center channels during the third quarter of fiscal year 2020. Net sales for the first nine months of the current fiscal year increased 1.1% to $1,251.1 million from the comparable period of the prior fiscal year. The Company experienced growth in the builder channel during the first nine months of fiscal year 2020, which was partially offset by declines in the home center and independent dealers and distributors channels.
Net income was $12.8 million ($0.75 per diluted share) for the third quarter of the current fiscal year compared with $18.4 million ($1.07 per diluted share) in the same quarter of the prior fiscal year. Net income for the current quarter was negatively impacted by tariffs, particleboard supply disruption costs and expenses related to the completion of our facility move in California. Net income for the first nine months of the current fiscal year was $61.8 million ($3.65 per diluted share) compared with $61.7 million ($3.53 per diluted share) for the same period of the prior fiscal year. Adjusted EPS per diluted share was $1.30 for the third quarter of the current fiscal year compared with $1.40 in the same quarter of the prior fiscal year and $5.27 for the first nine months of the current fiscal year compared with $5.05 for the same period of the prior fiscal year.
Adjusted EBITDA for the third fiscal quarter was $50.1 million, or 12.7% of net sales, compared to $52.2 million, or 13.6% of net sales, for the same quarter of the prior fiscal year. Adjusted EBITDA for the first nine months of the fiscal year was $182.6 million, or 14.6% of net sales, compared to $181.1 million, or 14.6% of net sales, for the same period of the prior fiscal year.
"Although we believe we experienced good growth relative to the market, our third fiscal quarter financials proved to be challenging due to ongoing volatility in the market and a more prominent impact from cost headwinds," said Cary Dunston, Chairman and CEO. "We had solid growth within our builder, dealer and stock home center businesses, which was partially offset by a decline in our made-to-order home center business. Margins were challenged due to the completion of our facility move in California and the continued cost associated with tariffs and particle board disruption."
Cash provided by operating activities for the first nine months of the current fiscal year was $112.2 million and free cash flow totaled $80.2 million. The Company paid down $90.0 million of its term loan facility during the first nine months of the current fiscal year.
About American Woodmark
American Woodmark Corporation manufactures and distributes kitchen, bath and home organization products for the remodeling and new home construction markets. Its products are sold on a national basis directly to home centers, builders and through a network of independent dealers and distributors. At January 31, 2020, the Company operated eighteen manufacturing facilities in the United States and Mexico and eight primary service centers located throughout the United States.
