The following is a summary of the American Woodmark Corporation (AMWD) Q3 2024 Earnings Call Transcript:
Financial Performance:
American Woodmark reported Q3 net sales of $422.1 million, marking a decrease of 12.2% compared to the previous year.
There was an increase of 140 basis points in the adjusted EBITDA margin, along with an 0.7% decrease in adjusted EBITDA to $50.6 million.
The reported EPS was $1.32 while the adjusted EPS stood at $1.66.
Net sales outlook for 2024 remains unchanged, with an expected low double-digit decline.
The cash balance at the end of Q3 was reported to be $97.8 million while an additional $322.9 million is available under a revolving credit facility.
Year-to-date, free cash flow increased to $131.7 million from $91.5 million last year due to higher net income and lower inventory.
The net leverage of the company stands at 1.5 times the adjusted EBITDA at the end of Q3.
Business Progress:
In the New Construction sector, the company intends on expanding its market share with new and existing customers.
The company has initiated digital transformation efforts including the implementation of new ERP systems and website enhancements to improve the Home Center business.
The company continues to expand its product offering and distribution, launching a new brand, 1951 Cabinetry, and commencing shipments from new locations in Monterrey, Mexico and Hamlet, North Carolina.
Despite the short-term operational costs associated with new locations, it is anticipated that these initiatives will positively impact financials in the rest of the fiscal year.
More details: American Woodmark IR
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