Briefing.com uses cookies to store information on your computer that is essential to making the site work and to customizing the user experience. By using the site, you consent to the placement of these cookies. Read our cookie policy to learn more and how to withdraw your consent.     
You must subscribe to access archives older
than one year.
Take a free trial of Briefing In Play® now.
Subscribe Here
TERMS OF USE

The Briefing.com RSS (really simple syndication) service is a method by which we offer story headline feeds in XML format to readers of the Briefing.com web site who use RSS aggregators. By using Briefing.com’s RSS service you agree to be bound by these Terms of Use. If you do not agree to the terms and conditions contained in these Terms of Use, we do not consent to provide you with an RSS feed and you should not make use of Briefing.com’s RSS service. The use of the RSS service is also subject to the terms and conditions of the Briefing.com Reader Agreement which governs the use of Briefing.com's entire web site (www.briefing.com) including all information services. These Terms of Use and the Briefing.com Reader Agreement may be changed by Briefing.com at any time without notice.

Use of RSS Feeds:
The Briefing.com RSS service is provided free of charge for use by individuals, as long as the feeds are used for such individual’s personal, non-commercial use. Any other uses, including without limitation the incorporation of advertising into or the placement of advertising associated with or targeted towards the RSS Content, are strictly prohibited. You are required to use the RSS feeds as provided by Briefing.com and you may not edit or modify the text, content or links supplied by Briefing.com. To acquire more extensive licensing rights to Briefing.com content please review this page.

Link to Content Pages:
The RSS service may be used only with those platforms from which a functional link is made available that, when accessed, takes the viewer directly to the display of the full article on the Briefing.com web site. You may not display the RSS content in a manner that does not permit successful linking to, redirection to or delivery of the applicable Briefing.com web site page. You may not insert any intermediate page, “splash” page or any other content between the RSS link and the applicable Briefing.com web site page.

Ownership/Attribution:
Briefing.com retains all ownership and other rights in the RSS content, and any and all Briefing.com logos and trademarks used in connection with the RSS service. You are required to provide appropriate attribution to the Briefing.com web site in connection with your use of the RSS feeds. If you provide this attribution using a graphic we require you to use the Briefing.com web site logo that we have incorporated into the Briefing.com RSS feed.

Right to Discontinue Feeds:
Briefing.com reserves the right to discontinue providing any or all of the RSS feeds at any time and to require you to cease displaying, distributing or otherwise using any or all of the RSS feeds for any reason including, without limitation, your violation of any provision of these Terms of Use or the terms and conditions of the Briefing.com Reader Agreement. Briefing.com assumes no liability for any of your activities in connection with the RSS feeds or for your use of the RSS feeds in connection with your web site.

Briefing.com
Subscribers Log In
 
  • HOME
  • OUR VIEW
    • Page One
    • The Big Picture
  • ANALYSIS
    • Premium Analysis
    • Story Stocks
  • MARKETS
    • Stock Market Update
    • Bond Market Update
    • Market Internals
    • After Hours Report
    • Weekly Wrap
  • CALENDARS
    • Upgrades/Downgrades
    • Economic
    • Stock Splits
    • IPO
    • Earnings
    • Conference Calls
    • Earnings Guidance
  • EMAILS
    • Edit My Profile
  • LEARNING CENTER
    • About Briefing.com
    • Ask An Analyst
    • Analysis
    • General Concepts
    • Strategies
    • Resources
    • Video
  • COMMUNITY
    • Twitter
    • Facebook
    • LinkedIn
    • YouTube
    • Google+
  • SEARCH
Login | Archive | EmailEmail |
HOME > Analysis >Story Stocks >American Woodmark hits the...
Story Stocks® Archive
Last Update: 27-Aug-18 09:05 ET
American Woodmark hits the mark with strong JulQ results; RSI acquisition added a boost (AMWD)

American Woodmark (AMWD 89.90, +4.95, +5.83%) is trading higher today after reporting 1Q19 (Jul) earnings results this morning.

American Woodmark manufactures kitchen cabinets and bathroom vanities for markets including remodeling and new home construction. It sells its products nationwide directly to major builders and home centers such as The Home Depot (HD) and Lowe’s (LOW), with sales through those two centers accounting for over 40% of the company’s gross sales in fiscal 2018, as well as through a network of independent distributors. As of July, the company operates 18 manufacturing facilities in the U.S. and Mexico and has seven primary service centers located throughout the U.S.

The company’s products include framed stock cabinets offered in over 500 different classic, transitional, and contemporary styles, ranging in price from relatively inexpensive to medium-priced. Cabinet lines vary by design, construction, and color; style offerings range from low-pressure laminate surfaces to natural wood finishes utilizing customizable combinations of maple, oak, cherry, and hickory frames, doors, and drawers. Products are sold under the brand names American Woodmark, Simply Woodmark, Timberlake, Shenandoah, and Waypoint Living Spaces. AMWD's business tends to be cyclical, seeing an uptick in sales during fiscal Q2 (Oct) and Q4 (Apr).

Notable activity in American Woodmark’s recent history includes its acquisition in December 2017 of RSI Home Products, one of North America’s largest in-stock and value-based (affordably-priced) cabinet makers. The implied enterprise value for RSI was approximately $1.075 bln, made up of cash, stock, and assumed debt. RSI provides cabinetry solutions, counter tops, and accessories with over 100 styles and finishes for bathrooms, kitchens, and home and garage organization to home centers, builders, dealers, and remodeling contractors.

Turning to the JulQ results, non-GAAP EPS rose 50% year/year to $2.04/share, which was much better than market expectations. Revenue rose 55% year/year to $429 mln, which was in-line with market expectations. The RSI acquisition provided a big portion of this revenue growth. This was the second full quarter to include RSI, and excluding RSI, revenue would have been up just 8% year/year to $299 mln.

As is typical for the company, AMWD did not provide forward guidance. Adjusted EBITDA margin improved to 15.9% from 13.5% in the prior year period. This was primarily due to sales growth in the quarter and the inclusion of three months of results for RSI. As is also usual, the company presented little by way of color in its press release; an earnings call scheduled for this morning 11 a.m. ET was expected to provide further details. However, AMWD management did say that the company experienced growth in all channels, over-indexing the market as a whole.

Of note, AMWD did announce that it has reinstated the company's previously suspended stock repurchase program. AMWD had previously announced the suspension of its stock repurchase program in December 2017 in connection with the RSI acquisition. Approximately $36 mln remains available under the program for repurchases.

The stock is trading higher on the JulQ report, indicating that investors are upbeat about the quarter overall. The stock tends to trade in a choppy pattern with big moves (up and down) around earnings -- the company’s customary lack of earnings guidance perhaps gives investors difficulty setting expectations. Our sense this quarter is that the market may have continued to underestimate the impact of the RSI acquisition on results. The newly combined company continues to be off to a good start.

American Woodmark (AMWD 89.90, +4.95, +5.83%) is trading higher today after reporting 1Q19 (Jul) earnings results this morning. American Woodmark
 
Add this to my Page Alerts.
MARKET PLACE
SPONSORED LINKS
 
  Follow Us On Linkedin  
 
 
LOGIN

CONTACT US
Support
Sitemap
PREMIUM SERVICES
Take a Tour
Compare Services
Request a Demo
INSTITUTIONAL SALES
ADVERTISING

CONTENT LICENSING

EMAILS & NEWSLETTERS
ABOUT US
Our Experts
Management Team

COMMUNITY
MEDIA
Events
News
Awards
PRIVACY STATEMENT
Cookie Policy
Reader Agreement
Policies
Disclaimer
Copyright © Briefing.com, Inc. All rights reserved.
Close
You must log in or register to access this area.
Tip of the Day
Virtual Url Page Popup