Quanex Building Products Corporation Fiscal 2012 First Quarter Results
Reported Operating Loss of
Loss Included
IG Spacer Facilities Consolidation on Budget and Schedule
Repurchased 94,337 Shares of Common Stock
Cash & Equivalents of
First quarter 2012 consolidated net sales were
Earnings Per Diluted Share Segment 1st qtr 2012 1st qtr 2011 As Reported ($0.18) ($0.13) Impact on EPS: Facility Consolidations EPG ($0.04) ($0.05) Warranty Reserve EPG -- ($0.04) Edgetech Net Loss EPG ($0.01) -- Transaction Related Corp -- ($0.03) ERP Implementation Corp ($0.01) --
EPG's first quarter 2012 net sales were
Engineered Products Group (in millions) 1st qtr 2012 1st qtr 2011 Net sales $99.4 $84.0 Operating income $1.8 ($0.7)
At EPG, sales excluding Edgetech for the 12 months ended
Insulating Glass (IG) Spacer Consolidation Program
On
Nichols' first quarter 2012 shipments, net sales and operating loss were 44 million pounds,
The operating loss of
Aluminum Sheet Products (in millions) 1st qtr 2012 1st qtr 2011 Net sales $65.7 $79.1 Operating income ($5.5) $0.6 Shipped pounds 44 52
On
For the 12 months ended
Corporate and Other Items
Corporate expenses in the first quarter were
First Quarter 2012 Balances
At quarter end, Quanex had a cash balance of
Business Outlook
Stagnant residential R&R demand, historically low home starts, elevated residential foreclosures, and stringent credit conditions will create a difficult housing environment in 2012. The company currently expects calendar year 2012 U.S. window shipments to be about 39 million units, which is 8% below Ducker's forecasted shipments of 42.6 million. Quanex, however, remains positive on the long term prospects of its residential and commercial markets and will continue to invest in its future. To that end, the company expects to continue to invest in growth, through both internal programs and acquisitions, as it believes this is the best way to maximize long term returns for shareholders. For 2012, the company estimated capital expenditures of
Dividend Declared
As previously announced on
Financial Statistics as of
Book value per common share:
Definitions:
Book value per common share – calculated as total stockholders' equity as of balance sheet date divided by actual number of common shares outstanding;
Total debt to capitalization – calculated as the sum of both the current and long-term portion of debt, as of balance sheet date, divided by the sum of both the current and long-term portion of debt plus total stockholders' equity as of balance sheet date;
EBITDA – calculated as earnings before interest, taxes, depreciation and amortization;
Return on invested capital – calculated as the total of the prior 12 months net income plus prior 12 months after-tax interest expense and capitalized interest, the sum of which is divided by the trailing five quarters average total debt (current and long term) and total stockholders' equity.
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, references to synergies derived from the acquisition of Edgetech, future operating results of Quanex, the financial condition of Quanex, future uses of cash, expectations relating to the consolidation of the company's IG spacer manufacturing facilities, expectations relating to 2012 expenditures, expenses and tax rates, expectations relating to the company's industry, and the company's future growth. The statements in this release are based on current expectations. Actual results or events may differ materially from this release. Factors that could impact future results may include, without limitation, the effect of both domestic and global economic conditions, the impact of competitive products and pricing, the availability and cost of raw materials, and customer demand. For a more complete discussion of factors that may affect the company's future performance, please refer to the company's 10-K filing on
For additional information, please visit www.quanex.com
QUANEX BUILDING PRODUCTS CORPORATION CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) Three months ended January 31, 2012 2011 Net sales $ 161,579 $ 159,808 Cost of sales (exclusive of items shown separately below) 138,042 139,655 Selling, general and administrative 25,152 20,294 Depreciation and amortization 9,689 7,525 Operating income (loss) (11,304) (7,666) Interest expense (126) (121) Other, net 217 100 Income (loss) from continuing operations before income taxes (11,213) (7,687) Income tax benefit (expense) 4,465 2,959 Income (loss) from continuing operations (6,748) (4,728) Income (loss) from discontinued operations, net of taxes -- (12) Net income (loss) $ (6,748) $ (4,740) Basic earnings per common share: Earnings (loss) from continuing operations $ (0.18) $ (0.13) Income (loss) from discontinued operations -- -- Basic earnings (loss) per share $ (0.18) $ (0.13) Diluted earnings per common share: Earnings (loss) from continuing operations $ (0.18) $ (0.13) Income (loss) from discontinued operations -- -- Diluted earnings (loss) per share $ (0.18) $ (0.13) Weighted average common shares outstanding: Basic 36,547 37,092 Diluted 36,547 37,092
QUANEX BUILDING PRODUCTS CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) January 31, October 31, 2012 2011 Assets $ 81,722 Cash and equivalents $ 89,619 59,847 Accounts receivable, net 81,969 64,150 Inventories 55,842 16,827 Deferred income taxes 11,220 7,448 Prepaid and other current assets 6,423 229,994 Total current assets 245,073 158,960 Property, plant and equipment, net 158,209 7,733 Deferred income taxes 7,669 68,398 Goodwill 69,432 84,836 Intangible assets, net 87,943 15,985 Other assets 16,603 $ 565,906 Total assets $ 584,929 Liabilities and stockholders' equity $ 57,211 Accounts payable $ 66,339 37,379 Accrued liabilities 38,058 352 Current maturities of long-term debt 352 94,942 Total current liabilities 104,749 1,294 Long-term debt 1,314 8,752 Deferred pension and postretirement benefits 7,784 8,512 Liability for uncertain tax positions 8,412 11,058 Non-current environmental reserves 11,221 14,399 Other liabilities 14,223 138,957 Total liabilities 147,703 426,949 Total stockholders' equity 437,226 $ 565,906 Total liabilities and stockholders' equity $ 584,929
QUANEX BUILDING PRODUCTS CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOW (In thousands) (Unaudited) Three months ended January 31, 2012 2011 Operating activities: Net income (loss) $ (6,748) $ (4,740) (Income) loss from discontinued operations -- 12 Adjustments to reconcile net income (loss) to cash provided by (used for) operating activities from continuing operations: Depreciation and amortization 9,706 7,542 Restructuring charges 2,115 1,404 Deferred income taxes (5,457) (3,197) Stock-based compensation 1,602 1,291 Changes in assets and liabilities, net of effects from acquisitions and dispositions: Decrease (increase) in accounts receivable 21,281 37,513 Decrease (increase) in inventory (8,517) (10,889) Decrease (increase) in other current assets (1,046) (598) Increase (decrease) in accounts payable (9,582) (19,164) Increase (decrease) in accrued liabilities (4,482) (9,903) Increase (decrease) in income taxes payable 346 191 Increase (decrease) in deferred pension and postretirement benefits 967 268 Other, net 1,888 952 Cash provided by (used for) operating activities from continuing operations 2,073 682 Cash provided by (used for) operating activities from discontinued operations -- (68) Cash provided by (used for) operating activities 2,073 614 Investing activities: Capital expenditures (8,024) (4,124) Proceeds from executive life insurance -- 683 Other, net -- 74 Cash provided by (used for) investing activities from continuing operations (8,024) (3,367) Cash provided by (used for) investing activities (8,024) (3,367) Financing activities: Repayments of long-term debt (20) (15) Common stock dividends paid (1,470) (1,501) Issuance of common stock from stock option exercises, including related tax benefits 344 579 Purchase of treasury stock (1,284) (1,504) Other, net -- 392 Cash provided by (used for) financing activities from continuing operations (2,430) (2,049) Cash provided by (used for) financing activities from discontinued operations -- (392) Cash provided by (used for) financing activities (2,430) (2,441) Effect of exchange rate changes on cash and equivalents 484 22 LESS: (Increase) decrease in cash and equivalents from discontinued operations -- 460 Increase (decrease) in cash and equivalents from continuing operations (7,897) (4,712) Cash and equivalents at beginning of period 89,619 187,178 Cash and equivalents at end of period $ 81,722 $ 182,466
QUANEX BUILDING PRODUCTS CORPORATION INDUSTRY SEGMENT INFORMATION (In thousands) (Unaudited) Three months ended January 31, 2012 2011 Net Sales: Engineered Products $ 99,393 $ 84,010 Aluminum Sheet Products 65,700 79,138 Building Products 165,093 163,148 Eliminations (3,514) (3,340) Net Sales $ 161,579 $ 159,808 Operating Income (Loss): Engineered Products $ 1,803 $ (649) Aluminum Sheet Products (5,518) 551 Building Products (3,715) (98) Corporate and Other (7,589) (7,568) Operating Income (Loss) $ (11,304) $ (7,666)
CONTACT: Financial Contact:Jeff Galow 713-877-5327 Media ContactValerie Calvert 713-877-5305
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