NASDAQ$AMWD

American Woodmark Corporation · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported sales growth across all channels but experienced a net loss due to one-time pension settlement charges and supply chain challenges.

American Woodmark Corporation reported a 6.4% increase in net sales for the third quarter of fiscal 2022, reaching $459.7 million. However, the company experienced a net loss of $49.3 million, or $2.97 per diluted share, primarily due to one-time pension settlement charges of $69.5 million. Adjusted EPS per diluted share was $0.60, and Adjusted EBITDA decreased by 45.2% to $30.6 million.

  • Net sales increased by 6.4% to $459.7 million compared to the same quarter of the prior fiscal year.
  • Net loss was $49.3 million ($2.97 per diluted share) compared to net income of $18.4 million ($1.08 per diluted share) in the prior year.
  • Adjusted EPS per diluted share was $0.60 compared to $1.57 in the same quarter of the prior fiscal year.
  • Adjusted EBITDA decreased by 45.2% to $30.6 million, or 6.6% of net sales.

Headline financials

Total Revenue

$460M

Previous: $432M+6.4%
EPS (adj)

$0.60

Previous: $1.50-60.0%
Adjusted EBITDA Margin

6.6%

Previous: 12.5%-47.2%
Capital Expenditures

-$29.8M

Previous: -$25.5M-17.0%
Free Cash Flow

-$42.9M

Previous: $82M-152.3%
Net Income

-$49.3M

Previous: $17.2M-386.5%
Operating Income

$5.22M

Previous: $28.6M-81.7%
Gross Profit

$51.8M

Previous: $75.8M-31.7%
Cash & Equivalents

$871K

Previous: $91.8M-99.1%
Total Assets

$1.59B

Previous: $1.66B-3.9%
Stock-Based Comp

$1.01M

Previous: $1.32M-23.6%

Revenue & EPS history

American Woodmark · Revenue · Quarterly

$460M

Q3 2022+6.4%vs Q3 2021
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

The company expects significant Adjusted EBITDA margin improvement versus current levels as price realization better matches inflationary impacts, they improve costs through productivity initiatives, and increase their production levels as staffing improves.

Tailwinds

  • Confirmed pricing actions to increase in the fourth fiscal quarter of 2022 by an additional $25 million versus the third quarter's realized pricing actions, to over approximately $55 million per quarter
  • Staffing levels continue to improve
  • New made-to-order assembly line in our Gas City facility in February which will result in incremental production capacity to reduce our backlog.
  • Expect significant Adjusted EBITDA margin improvement versus current levels as price realization better matches inflationary impacts
  • Improve costs through productivity initiatives

Headwinds

  • Sales were negatively impacted by labor absenteeism as COVID cases increased due to the Omicron variant
  • Supply chain shortages in the later part of December and early January.
  • Adjusted EBITDA margins of 6.6% for the fiscal third quarter were below expectations
  • Current quarter results include $30 million plus of pricing impacts that we realized in the third quarter of fiscal 2022
  • Pension settlement charges of $69.5 million related to the termination of the Company's pension plan

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

+1.1%

Avg return

Earnings day

-1.7%

Avg return

5 days after

-4.3%

Avg return

30 days after

54%

35 / 65 earnings

Positive

+22.5%

Q2 2018

Best reaction

-19.1%

Q3 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026
Q3 2026-0.8%-8.0%-22.8%
Q2 2026+5.3%+6.3%+5.7%
Q1 2026+0.6%-3.7%-2.5%
Q4 2025+3.0%-3.0%-6.1%
Q3 2025-13.0%-16.6%-16.9%
Q2 2025-11.6%-10.0%-18.7%
Q1 2025-11.6%-10.3%-8.6%
Q4 2024-4.6%-6.5%-14.6%
Q3 2024+1.2%-7.7%+0.6%
Q2 2024+16.0%+15.5%+28.9%
Q1 2024+5.7%+10.0%+5.2%
Q4 2023+18.8%+16.1%+29.4%
Q3 2023-10.3%-2.1%-14.5%
Q2 2023+4.3%+3.0%-6.1%
Q1 2023+9.3%+8.4%-6.5%
Q4 2022+3.1%+1.2%-10.8%
Q3 2022+9.6%+13.7%+4.0%
Q2 2022-4.6%-9.7%-12.6%
Q1 2022-13.0%-13.8%-18.7%
Q4 2021-8.5%-6.6%-13.4%
Q3 2021-7.4%-6.5%-3.7%
Q2 2021-12.5%-11.3%-8.9%
Q1 2021-8.0%-5.3%-21.2%
Q4 2020+7.3%+3.7%+17.5%
Q3 2020-19.1%-27.9%-54.6%
Q2 2020-0.3%-2.3%-0.1%
Q1 2020+8.4%+13.2%+19.0%
Q4 2019-13.0%-15.1%-3.7%
Q3 2019+0.5%-0.7%-6.6%
Q2 2019-1.5%-8.2%-16.0%
Q1 2019+1.2%+0.0%-5.9%
Q4 2018+16.3%+16.0%+2.0%
Q3 2018-7.1%-6.3%-17.8%
Q2 2018+22.5%+18.4%+30.8%
Q1 2018-13.9%-14.3%-4.7%
Q4 2017+4.4%+9.2%+6.1%
Q3 2017+6.8%+6.4%+10.8%
Q2 2017-4.5%-3.5%-6.2%
Q1 2017+10.3%+10.2%+4.6%
Q4 2016-13.6%-20.1%-15.9%
Q3 2016-1.7%
Q2 2016+20.5%
Q1 2016+1.1%
Q4 2015+10.0%
Q3 2015+13.7%
Q2 2015-0.8%
Q1 2015+18.9%
Q4 2014+2.0%
Q3 2014-11.9%
Q2 2014+3.0%
Q1 2014+10.4%
Q4 2013-2.9%
Q3 2013+5.8%
Q2 2013+18.3%
Q1 2013+4.6%
Q4 2010+6.3%
Q4 2012+6.3%
Q3 2011-2.0%
Q3 2012-2.0%
Q2 2011-6.4%
Q2 2012-6.4%
Q1 2011-1.9%
Q4 2011-1.9%
Q1 2012+12.6%
Q3 2010+1.7%

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