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American Woodmark Corporation Announces Fourth Quarter Results

WINCHESTER, Va., June 5, 2012 /PRNewswire/ -- American Woodmark Corporation (NASDAQ: AMWD) today announced results for the fourth quarter of its fiscal year 2012, ending April 30, 2012.

Net sales rose by 10% compared with the fourth quarter of the prior fiscal year to $136,221,000. The Company experienced sales gains of more than 30% in its new construction business that more than offset a modest decline in its remodeling business during the fourth quarter of fiscal year 2012. Net sales rose by 14% during the entire fiscal year 2012 to $515,814,000.

The Company generated a net loss excluding restructuring charges of ($2.3 million) or ($0.16) per diluted share during the fourth quarter of fiscal year 2012, compared with a net loss of ($3.4 million) or ($0.24) per diluted share in the fourth quarter of its prior fiscal year. Results for both periods were impacted by nonrecurring transactions. Results in the fourth quarter of fiscal year 2012 included a $0.7 million after-tax write-down of slow moving inventories. Results in the fourth quarter of fiscal year 2011 included an adverse tax basis adjustment of $1.4 million and an after-tax gain of $0.6 million from the sale of a building. Excluding restructuring charges and these non-recurring items, the Company's net loss improved to ($1.6 million) or ($0.11) per diluted share in the fourth quarter of fiscal year 2012, from ($2.6 million) or ($0.18) per diluted share in the fourth quarter of fiscal year 2011.

The Company's net loss excluding restructuring charges for the entire fiscal year 2012 improved to ($10.8 million) or ($0.76) per diluted share, compared with a net loss of ($20.0 million) or ($1.40) per diluted share in the prior fiscal year. Excluding restructuring charges and the non-recurring items discussed above, the Company's net loss improved to ($10.1 million) or ($0.71) per diluted share in fiscal year 2012, compared with ($19.2 million) or ($1.35) per diluted share in its prior fiscal year.

The Company previously announced several initiatives to reduce capacity and costs, including the permanent closure of two manufacturing plants and the realignment of its retirement program effective April 30, 2012. The two plants ceased operations in April 2012 and May 2012, respectively. In connection with these initiatives, the Company recorded net-of-tax charges during the fourth quarter of fiscal year 2012 of ($3.6 million), or ($0.26) per diluted share, and ($10.0 million) or ($0.69) per diluted share for the entire fiscal year 2012. Inclusive of these charges, net loss for the fourth quarter of fiscal year 2012 was ($6.0 million), or ($0.42) per diluted share, and for the entire fiscal year 2012 was ($20.8 million) or ($1.45) per diluted share.

Gross profit for the fourth quarter of fiscal year 2012 was 12.7% of net sales, compared with 13.2% of net sales in the fourth quarter of the prior fiscal year. Gross profit for the entire fiscal year 2012 was 12.9% of net sales, compared with 11.7% of net sales during the prior fiscal year. Gross profit for both the fourth quarter and the fiscal year was favorably impacted by labor efficiencies and the absorption of fixed overhead costs associated with higher sales volume. However, the aforementioned inventory write-down of 0.8% of net sales, as well as inefficiencies resulting from the Company's restructuring efforts more than offset this favorability in the fourth quarter of 2012. Gross margins were also adversely impacted in the fourth quarter by rising materials and freight costs and by higher sales promotion costs.

Selling, general and administrative costs were 15.2% of net sales in the fourth quarter of fiscal year 2012, improved from 16.5% of net sales in the fourth quarter of the prior fiscal year. Selling, general and administrative costs were 16.2% of net sales for the entire fiscal year 2012, improved from 18.5% in the prior fiscal year. The improvement in the Company's operating expense ratio was driven by increased sales levels that enabled favorable leverage, which more than offset an increase in general and administrative expenses that was driven by increased performance-based compensation.

The Company generated positive free cash flow (defined as cash provided by operating activities net of cash used for investing activities) of $0.3 million during the fourth quarter of fiscal year 2012, compared with positive $4.3 million in the fourth quarter of its prior fiscal year. The Company generated positive free cash flow of $6.1 million during fiscal year 2012, compared with positive $7.7 million in the prior fiscal year. The declines in free cash flow for the fourth quarter and entire fiscal year were driven by outflows pertaining to restructuring activities and the absence of proceeds from the prior year's sale of a building.

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 nine 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.

                                                                   AMERICAN WOODMARK CORPORATION

                                                                   Unaudited Financial Highlights

                                                                 (in thousands, except share data)

                                                                         Operating Results
                                                                         -----------------

                                                                                      Three Months Ended                            Twelve Months Ended
                                                                                           April 30                                       April 30
                                                                                         --------                                      --------
                                                                                            2012                2011                                2012                 2011
                                                                                            ----                ----                                ----                 ----

    Net Sales                                                   $136,221                $124,230            $515,814                            $452,589
    Cost of Sales & Distribution                                                         118,855             107,846                             449,339              399,838
                                                                                         -------             -------                             -------              -------
                                      Gross Profit                                        17,366              16,384                              66,475               52,751
    Sales & Marketing Expense                                                             14,116              15,057                              58,271               61,034
    G&A Expense                                                                            6,549               5,426                              25,329               22,709
    Restructuring Charges                                                                  5,959                   7                              16,321                   62
                                                                                           -----                 ---                              ------                  ---
                                      Operating Loss                                      (9,258)             (4,106)                            (33,446)             (31,054)
    Interest & Other (Income) Expense                                                        (54)               (948)                               (158)              (1,094)
    Income Tax Benefit                                                                    (3,224)                230                             (12,502)              (9,942)
                                                                                          ------                 ---                             -------               ------
                                      Net Loss                                           $(5,980)            $(3,388)                           $(20,786)            $(20,018)


    Earnings Per Share:
    Weighted Average Shares
     Outstanding -Diluted                                                             14,382,784          14,283,033                          14,343,630           14,251,917

    Loss Per Diluted Share                                        $(0.42)                 $(0.24)             $(1.45)                             $(1.40)

    Net loss, as reported                                        $(5,980)                $(3,388)           $(20,786)                           $(20,018)
    Restructuring Charges, net of tax                                                      3,635                   4                               9,956                   39
    Net loss, excluding restructuring
     charges                                                     $(2,345)                $(3,384)           $(10,830)                           $(19,979)
                                                                 =======                 =======            ========                            ========

    Loss Per Diluted Share, excluding
     restructuring charges                                        $(0.16)                 $(0.24)             $(0.76)                             $(1.40)

                                                                Condensed Consolidated Balance Sheet
                                                                ------------------------------------

                                                                                                                            April 30                      April 30
                                                                                                                                     2012                     2011
                                                                                                                                     ----                     ----

    Cash & Cash Equivalents                                                                                  $66,620                             $55,420
    Customer Receivables                                                                                      32,533                              31,067
    Inventories                                                                                               22,340                              24,471
    Other Current Assets                                                                                       9,609                               9,458
                                                                                                               -----                               -----
                                      Total Current Assets                                                                                       131,102              120,416
    Property, Plant & Equipment                                                                               75,375                             100,628
    Restricted Cash                                                                                            7,064                              14,419
    Other Assets                                                                                              51,580                              32,907
                                                                                                              ------                              ------
                                      Total Assets                                                                                              $265,121             $268,370


    Current Portion - Long-Term Debt                                                                            $875                                $928
    Accounts Payable & Accrued
     Expenses                                                                                                 58,346                              49,916
                                                                                                              ------                              ------
                                      Total Current Liabilities                                                                                   59,221               50,844
    Long-Term Debt                                                                                            23,790                              24,655
    Other Liabilities                                                                                         52,090                              38,906
                                                                                                              ------                              ------
                                      Total Liabilities                                                                                          135,101              114,405
    Stockholders' Equity                                                                                     130,020                             153,965
                                                                                                             -------                             -------
                                       Total Liabilities & Stockholders'
                                       Equity                                                                                                   $265,121             $268,370


                                                          Condensed Consolidated Statements of Cash Flows
                                                          -----------------------------------------------

                                                                                                                      Twelve Months Ended
                                                                                                                            April 30
                                                                                                                            --------
                                                                                                                                     2012                     2011
                                                                                                                                     ----                     ----

    Net Cash Provided by Operating
     Activities                                                                                              $16,053                             $13,196
    Net Cash Used by Investing
     Activities                                                                                               (9,918)                             (5,466)
                                                                                                              ------                              ------
    Free Cash Flow                                                                                             6,135                               7,730

    Net Cash Provided (Used) by
     Financing Activities                                                                                      5,065                              (5,543)
                                                                                                               -----                              ------
    Net Increase in Cash and Cash
     Equivalents                                                                                              11,200                               2,187
    Cash and Cash Equivalents,
     Beginning of Period                                                                                      55,420                              53,233
                                                                                                              ------                              ------

    Cash and Cash Equivalents, End of
     Period                                                                                                  $66,620                             $55,420
                                                                                                             =======                             =======

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SOURCE American Woodmark Corporation

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