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Quanex Building Products Announces Second Quarter 2018 Results and Reaffirms Full Year 2018 Guidance

Strong Underlying Growth in NA and EU Engineered Components Segments
Price Increases Taking Hold in Response to Inflationary Pressures
Solid Free Cash Flow Generation Further Improves Leverage Ratio

HOUSTON, June 04, 2018 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation (NYSE:NX) (“Quanex” or the “Company”) today announced its results for the three months ended April 30, 2018.

Bill Griffiths, Chairman, President and Chief Executive Officer, commented, “Similar to the first quarter, we continued to see strong underlying growth in both our North American and European Engineered Components segments.  We also generated solid free cash flow during the second quarter, which enabled us to further strengthen our balance sheet by paying down bank debt and improving our leverage ratio.”

Mr. Griffiths continued, “While margins continued to be impacted by inflationary pressures, the margin contraction narrowed compared to the first quarter of 2018 as a result of the implementation of a series of price increases towards the end of the second quarter.  These increases should offset inflationary costs in the second half and together with continued improvements in operating efficiencies we should see margin expansion in the fourth quarter.  This, and the expected positive impact from seasonality, gives us confidence in reaffirming our full year guidance of $890 million to $900 million in revenues and adjusted EBITDA of $103 million to $108 million.”

Second Quarter 2018 Results Summary  

The Company reported the following selected financial results:

         
    Three Months Ended April 30,   Six Months Ended April 30,
    2018   2017   2018   2017
Net Sales   $214.2   $209.1   $405.9   $404.2
Net Income (Loss)   $4.1   $1.5   $9.1   ($2.3)
Diluted EPS   $0.12   $0.04   $0.26   ($0.07)
                 
Adjusted Net Income   $4.8   $3.8   $3.5   $2.4
Adjusted Diluted EPS   $0.14   $0.11   $0.10   $0.07
Adjusted EBITDA   $21.7   $20.5   $34.9   $33.6

(See Non-GAAP Terminology Definitions and Disclaimers section, Non-GAAP Financial Measure Disclosure table and Selected Segment Data table for additional information)

The increase in net sales during the second quarter of 2018 was mainly driven by market and new products growth in addition to price increases largely related to raw material inflation recovery and a favorable foreign exchange impact.  (See Sales Analysis table for additional information)

The increase in earnings was largely due to lower stock-based compensation expense and a lower effective tax rate as a result of the enactment of the Tax Cuts and Jobs Act. 

As of April 30, 2018, the Company’s leverage ratio of Net Debt to LTM Adjusted EBITDA improved to 2.2x and Quanex expects to end fiscal 2018 with this leverage ratio below 2.0x.  (See Non-GAAP Terminology Definitions and Disclaimers section for additional information)

Recent Events

The Company’s Board of Directors declared a quarterly cash dividend of $0.04 per share on Quanex’s common stock, payable June 30, 2018, to shareholders of record on June 15, 2018.

Conference Call and Webcast Information

The Company has scheduled a conference call for Tuesday, June 5, 2018, at 11:00 a.m. ET (10:00 a.m. CT).  To participate in the conference call dial (877) 388-2139 for domestic callers and (541) 797-2983 for international callers, in both cases using the conference passcode 6446248, and ask for the Quanex call a few minutes prior to the start time.  A link to the live audio webcast will also be available on the Company’s website at http://www.quanex.com in the Investors section under Presentations & Events.  A telephonic replay of the call will be available approximately two hours after the live broadcast ends and will be accessible through June 12, 2018.  To access the replay dial (855) 859-2056 for domestic callers and (404) 537-3406 for international callers, in both cases referencing conference passcode 6446248. 

About Quanex

Quanex Building Products Corporation is an industry-leading manufacturer of components sold to Original Equipment Manufacturers (OEMs) in the building products industry.  Quanex designs and produces energy-efficient fenestration products in addition to kitchen and bath cabinet components.

For more information contact Scott Zuehlke, Vice President, Investor Relations & Treasurer, at 713-877-5327 or scott.zuehlke@quanex.com.

Non-GAAP Terminology Definitions and Disclaimers

Adjusted Net Income (Loss) (defined as net income further adjusted to exclude purchase price accounting inventory step-ups, transaction costs, gain/loss on the sale of fixed assets, restructuring charges, other net adjustments related to foreign currency transaction gain/loss and effective tax rates reflecting impacts of adjustments on a with and without basis) and Adjusted EPS are non-GAAP financial measures that Quanex believes provide a consistent basis for comparison between periods and more accurately reflects operational performance, as they are not influenced by certain income or expense items not affecting ongoing operations. EBITDA (defined as net income or loss before interest, taxes, depreciation and amortization and other, net) and Adjusted EBITDA (defined as EBITDA further adjusted to exclude purchase price accounting inventory step-ups, transaction costs, gain/loss on the sale of fixed assets, and restructuring charges) are non-GAAP financial measures that the Company uses to measure operational performance and assist with financial decision-making.  When Quanex provides expectations for Adjusted EBITDA on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and corresponding GAAP measures is generally not available without unreasonable effort.  Net Debt is calculated using the sum of current maturities of long-term debt and long-term debt, minus cash and cash equivalents.  The leverage ratio of Net Debt to LTM Adjusted EBITDA is a financial measure that the Company believes is useful to investors and financial analysts in evaluating Quanex’s leverage.  In addition, with certain limited adjustments, this leverage ratio is the basis for a key covenant in the Company’s credit agreement.  Free Cash Flow is a non-GAAP measure calculated using cash provided by operating activities less capital expenditures.   Quanex believes that the presented non-GAAP measures provide a consistent basis for comparison between periods, and will assist investors in understanding the Company’s financial performance when comparing results to other investment opportunities.  The presented non-GAAP measures may not be the same as those used by other companies.  Quanex does not intend for this information to be considered in isolation or as a substitute for other measures prepared in accordance with U.S. GAAP. 

Forward Looking Statements

Statements that use the words “estimated,” “expect,” “could,” “should,” “believe,” “will,” “might,” or similar words reflecting future expectations or beliefs are forward-looking statements. The forward-looking statements include, but are not limited to, the Company’s future operating results, future financial condition, future uses of cash and other expenditures, expenses and tax rates, expectations relating to Quanex’s industry, and the Company’s future growth, including any guidance discussed in this press release.  The statements and guidance set forth in this release are based on current expectations.  Actual results or events may differ materially from this release.  For a complete discussion of factors that may affect Quanex’s future performance, please refer to the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2017, under the sections entitled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors”.  Any forward-looking statements in this press release are made as of the date hereof, and Quanex undertakes no obligation to update or revise any forward-looking statements to reflect new information or events.

 
QUANEX BUILDING PRODUCTS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME (LOSS)
(In thousands, except per share data)
(Unaudited)
                 
                 
    Three Months Ended April 30,   Six Months Ended April 30,
    2018   2017   2018   2017
                 
Net sales   $ 214,212     $ 209,133     $ 405,878     $ 404,229  
Cost of sales     168,741       162,132       323,181       317,079  
Selling, general and administrative     23,783       26,916       47,859       54,361  
Restructuring charges     242       1,080       608       2,219  
Depreciation and amortization     13,310       14,380       26,583       29,786  
Operating income     8,136       4,625       7,647       784  
Interest expense     (2,502 )     (2,391 )     (4,943 )     (4,551 )
Other, net     (105 )     (135 )     212       526  
Income (loss) before income taxes     5,529       2,099       2,916       (3,241 )
Income tax (expense) benefit     (1,393 )     (637 )     6,167       977  
Net income (loss)   $ 4,136     $ 1,462     $ 9,083     $ (2,264 )
                 
Income (loss) per common share, basic   $ 0.12     $ 0.04     $ 0.26     $ (0.07 )
Income (loss) per common share, diluted   $ 0.12     $ 0.04     $ 0.26     $ (0.07 )
                 
Weighted average common shares outstanding:                
Basic     34,796       34,146       34,731       34,099  
Diluted     35,115       34,769       35,166       34,099  
                 
Cash dividends per share   $ 0.04     $ 0.04     $ 0.08     $ 0.08  
                 

 

       
QUANEX BUILDING PRODUCTS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
         
    April 30, 2018   October 31, 2017
ASSETS        
Current assets:        
Cash and cash equivalents   $ 10,098     $ 17,455  
Accounts receivable, net     76,594       79,411  
Inventories, net     92,928       87,529  
Prepaid and other current assets     8,527       7,406  
Total current assets     188,147       191,801  
Property, plant and equipment, net     209,459       211,131  
Goodwill     224,728       222,194  
Intangible assets, net     133,193       139,778  
Other assets     9,244       8,975  
Total assets   $ 764,771     $ 773,879  
         
LIABILITIES AND STOCKHOLDERS' EQUITY        
Current liabilities:        
Accounts payable   $ 44,492     $ 44,150  
Accrued liabilities     34,576       38,871  
Income taxes payable     2,284       2,192  
Current maturities of long-term debt     16,167       21,242  
Total current liabilities     97,519       106,455  
Long-term debt     210,857       218,184  
Deferred pension and postretirement benefits     5,890       4,433  
Deferred income taxes     14,889       21,960  
Other liabilities     15,290       16,000  
Total liabilities     344,445       367,032  
Stockholders’ equity:        
Common stock     375       375  
Additional paid-in-capital     253,269       255,719  
Retained earnings     230,945       225,704  
Accumulated other comprehensive loss     (19,951 )     (25,076 )
Treasury stock at cost     (44,312 )     (49,875 )
Total stockholders’ equity     420,326       406,847  
Total liabilities and stockholders' equity   $ 764,771     $ 773,879  
         

 

 
QUANEX BUILDING PRODUCTS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(In thousands)
(Unaudited)
       
  Six Months Ended April 30,
  2018   2017 (1)
Operating activities:      
Net income (loss) $ 9,083     $ (2,264 )
Adjustments to reconcile net income (loss) to cash provided by operating activities:    
Depreciation and amortization   26,583       29,786  
Stock-based compensation   211       3,222  
Deferred income tax   (8,087 )     (4,233 )
Other, net   (321 )     1,355  
Changes in assets and liabilities:      
Decrease in accounts receivable   3,357       4,564  
Increase in inventory   (4,623 )     (6,593 )
Increase in other current assets   (1,047 )     (506 )
Increase (decrease) in accounts payable   378       (7,170 )
Decrease in accrued liabilities   (5,220 )     (7,469 )
Increase in income taxes payable   25       3,215  
Increase in deferred pension and postretirement benefits   1,457       1,682  
(Decrease) increase in other long-term liabilities   (38 )     945  
Other, net   (143 )     195  
Cash provided by operating activities   21,615       16,729  
Investing activities:      
Acquisitions, net of cash acquired   -       (8,497 )
Capital expenditures   (15,213 )     (17,550 )
Proceeds from disposition of capital assets   180       593  
Cash used for investing activities   (15,033 )     (25,454 )
Financing activities:      
Borrowings under credit facilities   21,500       53,500  
Repayments of credit facility borrowings   (34,000 )     (52,250 )
Repayments of other long-term debt   (442 )     (1,363 )
Common stock dividends paid   (2,800 )     (2,749 )
Issuance of common stock   2,564       1,726  
Payroll tax paid to settle shares forfeited upon vesting of stock   (706 )     (957 )
Cash used for financing activities   (13,884 )     (2,093 )
Effect of exchange rate changes on cash and cash equivalents   (55 )     (195 )
Decrease in cash and cash equivalents   (7,357 )     (11,013 )
Cash and cash equivalents at beginning of period   17,455       25,526  
Cash and cash equivalents at end of period $ 10,098     $ 14,513  
       
       
(1) Updated to reflect adoption of ASU 2016-09.      
       

 

 
QUANEX BUILDING PRODUCTS CORPORATION
NON-GAAP FINANCIAL MEASURE DISCLOSURE
(In thousands, except per share data)
(Unaudited)
                                           
                                           
    Three Months Ended     Three Months Ended     Six Months Ended     Six Months Ended    
Reconciliation of Adjusted Net Income (Loss) and Adjusted EPS   April 30, 2018     April 30, 2017     April 30, 2018     April 30, 2017    
    Net
Income
  Diluted
EPS
    Net
Income
  Diluted
EPS
    Net
Income
  Diluted
EPS
    Net
Income
  Diluted
EPS
   
Net income (loss) as reported   $ 4,136     $ 0.12       $ 1,462     $ 0.04       $ 9,083     $ 0.26       $ (2,264 )   $ (0.07 )    
Reconciling items from below     665       0.02         2,330       0.07         (5,555 )     (0.16 )       4,688       0.14      
Adjusted net income (loss) and adjusted EPS   $ 4,801     $ 0.14       $ 3,792     $ 0.11       $ 3,528     $ 0.10       $ 2,424     $ 0.07      
                                           
Reconciliation of Adjusted EBITDA   Three Months Ended
April 30, 2018
    Three Months Ended
April 30, 2017
    Six Months Ended
April 30, 2018
    Six Months Ended
April 30, 2017
   
    Reconciliation         Reconciliation         Reconciliation         Reconciliation        
Net income (loss) as reported   $ 4,136           $ 1,462           $ 9,083           $ (2,264 )        
Income tax benefit     1,393             637             (6,167 )           (977 )        
Other, net     105             135             (212 )           (526 )        
Interest expense     2,502             2,391             4,943             4,551          
Depreciation and amortization     13,310             14,380             26,583             29,786          
EBITDA     21,446             19,005             34,230             30,570          
Reconciling items from below     244             1,523             622             2,993          
Adjusted EBITDA   $ 21,690           $ 20,528           $ 34,852           $ 33,563          
                                           
Reconciling Items   Three Months Ended
April 30, 2018
    Three Months Ended
April 30, 2017
    Six Months Ended
April 30, 2018
    Six Months Ended
April 30, 2017
   
    Income
Statement
  Reconciling
Items
    Income
Statement
  Reconciling
Items
    Income
Statement
  Reconciling
Items
    Income
Statement
  Reconciling
Items
   
Net sales   $ 214,212     $ -       $ 209,133     $ -       $ 405,878     $ -       $ 404,229     $ -      
Cost of sales     168,741       -         162,132       (90 )  (1  )     323,181       -         317,079       (104 )  (1  )  
Selling, general and administrative     23,783       (2 )  (2  )     26,916       (353 )  (2  )     47,859       (14 )  (2  )     54,361       (670 )  (2  )  
Restructuring charges     242       (242 )  (3  )     1,080       (1,080 )  (3  )     608       (608 )  (3  )     2,219       (2,219 )  (3  )  
EBITDA     21,446       244         19,005       1,523         34,230       622         30,570       2,993      
Depreciation and amortization     13,310       (504 )  (4  )     14,380       (1,692 )  (5  )     26,583       (852 )  (4  )     29,786       (4,225 )  (5  )  
Operating income     8,136       748         4,625       3,215         7,647       1,474         784       7,218      
Interest expense     (2,502 )     -         (2,391 )     -         (4,943 )     -         (4,551 )     -      
Other, net     (105 )     132    (6  )     (135 )     155    (6  )     212       (167 )  (6  )     526       (475 )  (6  )  
Income (loss) before income taxes     5,529       880         2,099       3,370         2,916       1,307         (3,241 )     6,743      
Income tax (expense) benefit     (1,393 )     (215 )  (7  )     (637 )     (1,040 )  (7  )     6,167       (6,862 )  (7  )     977       (2,055 )  (7  )  
Net income (loss)   $ 4,136     $ 665       $ 1,462     $ 2,330       $ 9,083     $ (5,555 )     $ (2,264 )   $ 4,688      
                                           
Diluted earnings (loss) per share   $ 0.12           $ 0.04           $ 0.26           $ (0.07 )        
                                           
(1) Relates solely to purchase price accounting inventory step-up impact from HL Plastics acquisition.
(2) Acquisition related transaction costs and in 2017, loss on sale of fixed assets related to the closure of a plant and a one-time employee benefit adjustment.
(3) Restructuring charges relate to the closure of several manufacturing plant facilities.
(4) Accelerated depreciation for plant re-layout in the North American Cabinet Components segment.
(5) Accelerated depreciation and amortization for restructured PP&E and intangible assets.
(6) Foreign currency transaction losses (gains).
(7) Impact on a with and without basis.  Six monhs ended April 30, 2018 includes $6.5 million adjustment related to the Tax Cuts and Jobs Act.
                                           

 

 
QUANEX BUILDING PRODUCTS CORPORATION
Segment Reconciliation
(In thousands)
(Unaudited)
                     
The following tables reconcile the Company's segment presentation to account for the transfer of operating facilities from the North American Engineered Components segment to the Cabinet Components segment, as previously reported in our earnings release for the three- and six-months ended April 30, 2017, to the current presentation:
                                     
    NA Engineered
Components
  EU Engineered
Components
  NA Cabinet
Components
  Unallocated
Corp & Other
  Total
Three months ended April 30, 2017                    
As previously reported                    
Net sales   $ 116,410     $ 34,205   $ 59,147     $ (629 )   $ 209,133
Cost of sales     88,424       23,764     50,281       (337 )     162,132
Selling, general and administrative     13,466       5,198     4,401       3,851       26,916
Restructuring costs     914       -     166       -       1,080
Depreciation and amortization     8,669       2,306     3,265       140       14,380
Operating income (loss)   $ 4,937     $ 2,937   $ 1,034     $ (4,283 )   $ 4,625
                     
Reclassification                    
Net sales   $ (5,245 )   $ -   $ 5,933     $ (688 )   $ -
Cost of sales     (4,092 )     -     4,780       (688 )     -
Selling, general and administrative     (56 )     -     56       -       -
Restructuring costs     -       -     -       -       -
Depreciation and amortization     (129 )     -     129       -       -
Operating income (loss)   $ (968 )   $ -   $ 968     $ -     $ -
                     
Current presentation                    
Net sales   $ 111,165     $ 34,205   $ 65,080     $ (1,317 )   $ 209,133
Cost of sales     84,332       23,764     55,061       (1,025 )     162,132
Selling, general and administrative     13,410       5,198     4,457       3,851       26,916
Restructuring costs     914       -     166       -       1,080
Depreciation and amortization     8,540       2,306     3,394       140       14,380
Operating income (loss)   $ 3,969     $ 2,937   $ 2,002     $ (4,283 )   $ 4,625
                     
Six months ended April 30, 2017                    
As previously reported                    
Net sales   $ 227,483     $ 65,774   $ 112,144     $ (1,172 )   $ 404,229
Cost of sales     174,817       46,302     96,518       (558 )     317,079
Selling, general and administrative     27,201       9,970     8,511       8,679       54,361
Restructuring costs     1,480       -     739       -       2,219
Depreciation and amortization     18,747       4,362     6,400       277       29,786
Operating income (loss)   $ 5,238     $ 5,140   $ (24 )   $ (9,570 )   $ 784
                     
Reclassification                    
Net sales   $ (10,235 )   $ -   $ 11,566     $ (1,331 )   $ -
Cost of sales     (8,507 )     -     9,838       (1,331 )     -
Selling, general and administrative     (260 )     -     260       -       -
Restructuring costs     -       -     -       -       -
Depreciation and amortization     (269 )     -     269       -       -
Operating income (loss)   $ (1,199 )   $ -   $ 1,199     $ -     $ -
                     
Current presentation                    
Net sales   $ 217,248     $ 65,774   $ 123,710     $ (2,503 )   $ 404,229
Cost of sales     166,310       46,302     106,356       (1,889 )     317,079
Selling, general and administrative     26,941       9,970     8,771       8,679       54,361
Restructuring costs     1,480       -     739       -       2,219
Depreciation and amortization     18,478       4,362     6,669       277       29,786
Operating income (loss)   $ 4,039     $ 5,140   $ 1,175     $ (9,570 )   $ 784
                     

 

 
QUANEX BUILDING PRODUCTS CORPORATION
SELECTED SEGMENT DATA
(In thousands)
(Unaudited)
                     
This table provides operating income (loss), EBITDA, and Adjusted EBITDA by reportable segment.  Non-operating expense and income tax expense are not allocated to the reportable segments.
                                         
    NA Engineered
Components
  EU Engineered
Components
  NA Cabinet
Components
  Unallocated
Corp & Other
  Total
Three months ended April 30, 2018                    
Net sales   $ 114,157     $ 38,824     $ 62,668     $ (1,437 )   $ 214,212  
Cost of sales     88,130       27,589       54,101       (1,079 )     168,741  
Selling, general and administrative     13,422       6,255       4,522       (416 )     23,783  
Restructuring charges     238       -       4       -       242  
Depreciation and amortization     6,808       2,527       3,839       136       13,310  
Operating income (loss)     5,559       2,453       202       (78 )     8,136  
Depreciation and amortization     6,808       2,527       3,839       136       13,310  
EBITDA     12,367       4,980       4,041       58       21,446  
Transaction related costs     -       -       -       2       2  
Restructuring charges     238       -       4       -       242  
Adjusted EBITDA   $ 12,605     $ 4,980     $ 4,045     $ 60     $ 21,690  
Adjusted EBITDA Margin %     11.0 %     12.8 %     6.5 %         10.1 %
                     
Three months ended April 30, 2017                    
Net sales   $ 111,165     $ 34,205     $ 65,080     $ (1,317 )   $ 209,133  
Cost of sales     84,332       23,764       55,061       (1,025 )     162,132  
Selling, general and administrative     13,410       5,198       4,457       3,851       26,916  
Restructuring charges     914       -       166       -       1,080  
Depreciation and amortization     8,540       2,306       3,394       140       14,380  
Operating income (loss)     3,969       2,937       2,002       (4,283 )     4,625  
Depreciation and amortization     8,540       2,306       3,394       140       14,380  
EBITDA     12,509       5,243       5,396       (4,143 )     19,005  
Transaction related costs     -       -       -       232       232  
Mexico restructuring, loss on sale of fixed assets     -       -       (67 )     -       (67 )
One-time employee benefit adjustment     -       -       188       -       188  
Restructuring charges     914       -       166       -       1,080  
PPA-Inventory Step-up     -       90       -       -       90  
Adjusted EBITDA   $ 13,423     $ 5,333     $ 5,683     $ (3,911 )   $ 20,528  
Adjusted EBITDA Margin %     12.1 %     15.6 %     8.7 %         9.8 %
                     
Six months ended April 30, 2018                    
Net sales   $ 216,883     $ 72,820     $ 118,590     $ (2,415 )   $ 405,878  
Cost of sales     168,157       52,421       104,311       (1,708 )     323,181  
Selling, general and administrative     27,246       11,683       9,310       (380 )     47,859  
Restructuring charges     489       -       119       -       608  
Depreciation and amortization     13,819       4,976       7,525       263       26,583  
Operating income (loss)     7,172       3,740       (2,675 )     (590 )     7,647  
Depreciation and amortization     13,819       4,976       7,525       263       26,583  
EBITDA     20,991       8,716       4,850       (327 )     34,230  
Transaction related costs     -       -       -       14       14  
Restructuring charges     489       -       119       -       608  
Adjusted EBITDA   $ 21,480     $ 8,716     $ 4,969     $ (313 )   $ 34,852  
Adjusted EBITDA Margin %     9.9 %     12.0 %     4.2 %         8.6 %
                     
Six months ended April 30, 2017                    
Net sales   $ 217,248     $ 65,774     $ 123,710     $ (2,503 )   $ 404,229  
Cost of sales     166,310       46,302       106,356       (1,889 )     317,079  
Selling, general and administrative     26,941       9,970       8,771       8,679       54,361  
Restructuring charges     1,480       -       739       -       2,219  
Depreciation and amortization     18,478       4,362       6,669       277       29,786  
Operating income (loss)     4,039       5,140       1,175       (9,570 )     784  
Depreciation and amortization     18,478       4,362       6,669       277       29,786  
EBITDA     22,517       9,502       7,844       (9,293 )     30,570  
Transaction related costs     -       -       -       292       292  
Mexico restructuring, loss on disposal of fixed assets     -       -       190       -       190  
One-time employee benefit adjustment     -       -       188       -       188  
Restructuring charges     1,480       -       739       -       2,219  
PPA-Inventory Step-up     -       104       -       -       104  
Adjusted EBITDA   $ 23,997     $ 9,606     $ 8,961     $ (9,001 )   $ 33,563  
Adjusted EBITDA Margin %     11.0 %     14.6 %     7.2 %         8.3 %
                     

 

 
QUANEX BUILDING PRODUCTS CORPORATION
SALES ANALYSIS
(In thousands)
(Unaudited)
                 
    Three Months Ended   Six Months Ended
    April 30, 2018   April 30, 2017 (1)   April 30, 2018   April 30, 2017 (1)
                 
NA Engineered Components:              
  United States - fenestration (2) $ 97,005     $ 92,327     $ 184,787     $ 182,039  
  International - fenestration   8,897       8,646       15,906       14,986  
  United States - non-fenestration (3)   4,697       6,698       8,843       12,529  
  International - non-fenestration   3,558       3,494       7,347       7,694  
    $ 114,157     $ 111,165     $ 216,883     $ 217,248  
EU Engineered Components  (4):              
  United States - fenestration $ -     $ 79     $ -     $ 114  
  International - fenestration (5)   32,847       30,536       62,716       59,441  
  International - non-fenestration   5,977       3,590       10,104       6,219  
    $ 38,824     $ 34,205     $ 72,820     $ 65,774  
NA Cabinet Components:              
  United States - fenestration $ 3,403     $ 3,363     $ 6,850     $ 6,696  
  United States - non-fenestration (6)   58,698       60,965       110,703       115,655  
  International - non-fenestration   567       752       1,037       1,359  
    $ 62,668     $ 65,080     $ 118,590     $ 123,710  
Unallocated Corporate & Other:              
  Eliminations $ (1,437 )   $ (1,317 )   $ (2,415 )   $ (2,503 )
    $ (1,437 )   $ (1,317 )   $ (2,415 )   $ (2,503 )
                 
Net Sales $ 214,212     $ 209,133     $ 405,878     $ 404,229  
                 
(1) Updated to reflect transfer of operating facilities from NA Engineered Components to NA Cabinet Components.  See Reconciliation for additional details.
(2) Reflects the loss of revenue associated with eliminated products of $3.3 million and $9.1 million for the three and six months ended April 30, 2018.
(3) Reflects the loss of revenue associated with eliminated products of $2.8 million and $4.7 million for the three and six months ended April 30, 2018.
(4) Reflects a gain of $3.6 million and $6.8 million in revenue associated with foreign currency exchange rate impacts for the three and six months ended April 30, 2018.
(5) Reflects loss of revenue associated with eliminated products of $2.1 million and $4.5 million for the three and six months ended April 30, 2018.
(6) Reflects the loss of revenue associated with eliminated products of $1.3 million and $3.7 million for the three and six months ended April 30, 2018.
                 

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Source: Quanex Building Products Corporation

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