Quanex Building Products Announces Fourth Quarter and Fiscal Year 2020 Results
Margin Expansion Realized Across All Segments in 4Q20
Balance Sheet & Liquidity Continue to Improve and Remain Strong
~5% Increase in Cash Provided by Operating Activities in FY20
Repaid
The Company reported the following selected financial results:
Three Months Ended |
Twelve Months Ended |
|||||||
2020 | 2019 | 2020 | 2019 | |||||
Gross Margin | ||||||||
Gross Margin % | 25.9% | 23.8% | 22.6% | 22.3% | ||||
Net Income (Loss) | ( |
( |
||||||
Diluted EPS | ( |
( |
||||||
Adjusted Net Income | ||||||||
Adjusted Diluted EPS | ||||||||
Adjusted EBITDA | ||||||||
Adjusted EBITDA Margin % | 15.4% | 14.3% | 12.3% | 11.5% | ||||
Cash Provided by Operating Activities | ||||||||
Free Cash Flow | ||||||||
(See Non-GAAP Terminology Definitions and Disclaimers section, Non-GAAP Financial Measure Disclosure table Selected Segment Data table and Free Cash Flow Reconciliation table for additional information) |
“In addition to the lift provided by strong demand during the fourth quarter, our relentless focus on managing working capital and generating cash continued to bear fruit throughout the fiscal year. As a result, we achieved
Fourth Quarter and Fiscal 2020 Results Summary
The increase in net sales during the three months ended
The increases in earnings for the three months ended
Balance Sheet & Liquidity Update
As of
The Company’s liquidity increased to
Share Repurchases
Quanex’s Board of Directors authorized a
Outlook
*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. Certain items required for such a reconciliation are outside of the Company’s control and/or cannot be reasonably predicted or estimated, such as the provision for income taxes.
Conference Call and Webcast Information
The Company has scheduled a conference call for
About Quanex
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, certain severance charges, gain/loss on the sale of certain fixed assets, restructuring charges, asset impairment 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, certain severance charges, gain/loss on the sale of certain fixed assets, restructuring charges and asset impairment charges) are non-GAAP financial measures that the Company uses to measure operational performance and assist with financial decision-making. 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. Free Cash Flow is measured before application of certain contractual commitments (including capital lease obligations), and accordingly is not a true measure of Quanex’s residual cash flow available for discretionary expenditures. The Company believes that the presented non-GAAP measures provide a consistent basis for comparison between periods, and will assist investors in understanding Quanex’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. The Company does not intend for this information to be considered in isolation or as a substitute for other measures prepared in accordance with
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 following: impacts from public health issues (including pandemics, such as the recent COVID-19 pandemic) on the economy and the demand for Quanex’s products, 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
CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME (LOSS) | ||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended |
Twelve Months Ended |
|||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net sales | $ | 255,405 | $ | 240,369 | $ | 851,573 | 893,841 | |||||||||
Cost of sales | 189,164 | 183,128 | 658,750 | 694,420 | ||||||||||||
Selling, general and administrative | 26,889 | 23,826 | 89,707 | 101,292 | ||||||||||||
Restructuring charges | 145 | 89 | 622 | 370 | ||||||||||||
Depreciation and amortization | 11,378 | 12,428 | 47,229 | 49,586 | ||||||||||||
Asset impairment charges | - | 44,622 | - | 74,600 | ||||||||||||
Operating income (loss) | 27,829 | (23,724 | ) | 55,265 | (26,427 | ) | ||||||||||
Interest expense | (935 | ) | (2,029 | ) | (5,245 | ) | (9,643 | ) | ||||||||
Other, net | 164 | (345 | ) | 280 | 116 | |||||||||||
Income (loss) before income taxes | 27,058 | (26,098 | ) | 50,300 | (35,954 | ) | ||||||||||
Income tax expense | (4,906 | ) | (4,850 | ) | (11,804 | ) | (10,776 | ) | ||||||||
Net income (loss) | $ | 22,152 | $ | (30,948 | ) | $ | 38,496 | $ | (46,730 | ) | ||||||
Earnings (loss) per common share, basic | $ | 0.68 | $ | (0.94 | ) | $ | 1.18 | $ | (1.42 | ) | ||||||
Earnings (loss) per common share, diluted | $ | 0.68 | $ | (0.94 | ) | $ | 1.17 | $ | (1.42 | ) | ||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 32,608 | 32,893 | 32,689 | 32,960 | ||||||||||||
Diluted | 32,811 | 32,893 | 32,821 | 32,960 | ||||||||||||
Cash dividends per share | $ | 0.08 | $ | 0.08 | $ | 0.32 | $ | 0.32 | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(In thousands) | ||||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 51,621 | $ | 30,868 | ||||
Accounts receivable, net | 88,287 | 82,946 | ||||||
Inventories, net | 61,181 | 67,159 | ||||||
Prepaid and other current assets | 6,217 | 9,353 | ||||||
Total current assets | 207,306 | 190,326 | ||||||
Property, plant and equipment, net | 184,104 | 193,600 | ||||||
Operating lease right-of-use assets | 51,824 | - | ||||||
146,154 | 145,563 | |||||||
Intangible assets, net | 93,068 | 107,297 | ||||||
Other assets | 9,129 | 8,324 | ||||||
Total assets | $ | 691,585 | $ | 645,110 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 77,335 | $ | 63,604 | ||||
Accrued liabilities | 38,289 | 39,221 | ||||||
Income taxes payable | 6,465 | 6,183 | ||||||
Current maturities of long-term debt | 692 | 746 | ||||||
Current operating lease liabilities | 7,459 | - | ||||||
Total current liabilities | 130,240 | 109,754 | ||||||
Long-term debt | 116,728 | 156,414 | ||||||
Noncurrent operating lease liabilities | 44,873 | - | ||||||
Deferred pension and postretirement benefits | 10,923 | 13,322 | ||||||
Deferred income taxes | 19,116 | 19,363 | ||||||
Liabilities for uncertain tax positions | 522 | 556 | ||||||
Other liabilities | 13,424 | 15,514 | ||||||
Total liabilities | 335,826 | 314,923 | ||||||
Stockholders’ equity: | ||||||||
Common stock | 373 | 374 | ||||||
Additional paid-in-capital | 253,458 | 254,673 | ||||||
Retained earnings | 213,517 | 185,703 | ||||||
Accumulated other comprehensive loss | (33,024 | ) | (33,817 | ) | ||||
(78,565 | ) | (76,746 | ) | |||||
Total stockholders’ equity | 355,759 | 330,187 | ||||||
Total liabilities and stockholders' equity | $ | 691,585 | $ | 645,110 | ||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW | |||||||
(In thousands) | |||||||
(Unaudited) | |||||||
Twelve Months Ended |
|||||||
2020 | 2019 | ||||||
Operating activities: | |||||||
Net income (loss) | $ | 38,496 | $ | (46,730 | ) | ||
Adjustments to reconcile net income (loss) to cash provided by operating activities: | |||||||
Depreciation and amortization | 47,229 | 49,586 | |||||
Stock-based compensation | 879 | 2,045 | |||||
Deferred income tax | (189 | ) | 3,260 | ||||
Loss on the disposition of capital assets | - | 732 | |||||
Asset impairment charge | - | 74,600 | |||||
Other, net | 1,689 | 2,176 | |||||
Changes in assets and liabilities: | |||||||
(Increase) decrease in accounts receivable | (5,766 | ) | 574 | ||||
Decrease in inventory | 6,119 | 3,797 | |||||
Decrease (increase) in other current assets | 2,896 | (2,014 | ) | ||||
Increase in accounts payable | 15,922 | 8,124 | |||||
Decrease in accrued liabilities | (3,156 | ) | (6,760 | ) | |||
Increase in income taxes payable | 237 | 3,416 | |||||
(Decrease) increase in deferred pension and postretirement benefits | (2,775 | ) | 2,531 | ||||
(Decrease) increase in other long-term liabilities | (236 | ) | 513 | ||||
Other, net | (549 | ) | 522 | ||||
Cash provided by operating activities | 100,796 | 96,372 | |||||
Investing activities: | |||||||
Capital expenditures | (25,726 | ) | (24,883 | ) | |||
Proceeds from disposition of capital assets | 502 | 1,324 | |||||
Cash used for investing activities | (25,224 | ) | (23,559 | ) | |||
Financing activities: | |||||||
Borrowings under credit facilities | 114,500 | 83,500 | |||||
Repayments of credit facility borrowings | (154,000 | ) | (136,000 | ) | |||
Repayments of other long-term debt | (1,027 | ) | (1,526 | ) | |||
Common stock dividends paid | (10,534 | ) | (10,644 | ) | |||
Issuance of common stock | 3,626 | 3,287 | |||||
Payroll tax paid to settle shares forfeited upon vesting of stock | (454 | ) | (330 | ) | |||
Purchase of treasury stock | (7,233 | ) | (9,551 | ) | |||
Cash used for financing activities | (55,122 | ) | (71,264 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | 303 | 316 | |||||
Increase in cash and cash equivalents | 20,753 | 1,865 | |||||
Cash and cash equivalents at beginning of period | 30,868 | 29,003 | |||||
Cash and cash equivalents at end of period | $ | 51,621 | $ | 30,868 | |||
FREE CASH FLOW RECONCILIATION | ||||||||
(In thousands) | ||||||||
(Unaudited) | ||||||||
The following table reconciles the Company's calculation of Free Cash Flow, a non-GAAP measure, to its most directly comparable GAAP measure. The Company defines Free Cash Flow as cash provided by operating activities less capital expenditures. | ||||||||
Three Months Ended |
Twelve Months Ended |
|||||||
2020 | 2019 | 2020 | 2019 | |||||
Cash provided by operating activities | 53,235 | |||||||
Capital expenditures | (5,053) | (7,899) | (25,726) | (24,883) | ||||
Free Cash Flow |
NON-GAAP FINANCIAL MEASURE DISCLOSURE | ||||||||||||||||||||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||||||
Reconciliation of Adjusted Net Income and Adjusted EPS | Three Months Ended |
Three Months Ended |
Twelve Months Ended |
Twelve Months Ended |
||||||||||||||||||||||||||||||||
Net Income |
Diluted EPS | Net Income |
Diluted EPS |
Net Income |
Diluted EPS |
Net (Loss) Income |
Diluted EPS |
|||||||||||||||||||||||||||||
Net income (loss) as reported | $ | 22,152 | $ | 0.68 | $ | (30,948 | ) | $ | (0.94 | ) | $ | 38,496 | $ | 1.17 | $ | (46,730 | ) | $ | (1.42 | ) | ||||||||||||||||
Reconciling items from below | (168 | ) | (0.01 | ) | 44,963 | 1.36 | 2,218 | 0.07 | 78,155 | 2.37 | ||||||||||||||||||||||||||
Adjusted net income and adjusted EPS | $ | 21,984 | $ | 0.67 | $ | 14,015 | $ | 0.42 | $ | 40,714 | $ | 1.24 | $ | 31,425 | $ | 0.95 | ||||||||||||||||||||
Reconciliation of Adjusted EBITDA | Three Months Ended |
Three Months Ended |
Twelve Months Ended |
Twelve Months Ended |
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Reconciliation | Reconciliation | Reconciliation | Reconciliation | |||||||||||||||||||||||||||||||||
Net income (loss) as reported | $ | 22,152 | $ | (30,948 | ) | $ | 38,496 | $ | (46,730 | ) | ||||||||||||||||||||||||||
Income tax expense | 4,906 | 4,850 | 11,804 | 10,776 | ||||||||||||||||||||||||||||||||
Other, net | (164 | ) | 345 | (280 | ) | (116 | ) | |||||||||||||||||||||||||||||
Interest expense | 935 | 2,029 | 5,245 | 9,643 | ||||||||||||||||||||||||||||||||
Depreciation and amortization | 11,378 | 12,428 | 47,229 | 49,586 | ||||||||||||||||||||||||||||||||
EBITDA | 39,207 | (11,296 | ) | 102,494 | 23,159 | |||||||||||||||||||||||||||||||
Reconciling items from below | 145 | 45,727 | 2,020 | 79,504 | ||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 39,352 | $ | 34,431 | $ | 104,514 | $ | 102,663 | ||||||||||||||||||||||||||||
Reconciling Items | Three Months Ended |
Three Months Ended |
Twelve Months Ended |
Twelve Months Ended |
||||||||||||||||||||||||||||||||
Income Statement |
Reconciling Items |
Income Statement |
Reconciling Items |
Income Statement |
Reconciling Items |
Income Statement |
Reconciling Items |
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Net sales | $ | 255,405 | $ | - | $ | 240,369 | $ | - | $ | 851,573 | $ | - | $ | 893,841 | $ | - | ||||||||||||||||||||
Cost of sales | 189,164 | - | 183,128 | - | 658,750 | - | 694,420 | - | ||||||||||||||||||||||||||||
Selling, general and administrative | 26,889 | - | 23,826 | (1,016 | ) | (1) | 89,707 | (1,398 | ) | (1) | 101,292 | (4,534 | ) | (1) | ||||||||||||||||||||||
Restructuring charges | 145 | (145 | ) | (2) | 89 | (89 | ) | (2) | 622 | (622 | ) | (2) | 370 | (370 | ) | (2) | ||||||||||||||||||||
Asset impairment charges | - | - | 44,622 | (44,622 | ) | - | - | 74,600 | (74,600 | ) | (3) | |||||||||||||||||||||||||
EBITDA | 39,207 | 145 | (11,296 | ) | 45,727 | 102,494 | 2,020 | 23,159 | 79,504 | |||||||||||||||||||||||||||
Depreciation and amortization | 11,378 | - | 12,428 | (192 | ) | 47,229 | (968 | ) | (4) | 49,586 | (192 | ) | ||||||||||||||||||||||||
Operating income (loss) | 27,829 | 145 | (23,724 | ) | 45,919 | 55,265 | 2,988 | (26,427 | ) | 79,696 | ||||||||||||||||||||||||||
Interest expense | (935 | ) | - | (2,029 | ) | - | (5,245 | ) | - | (9,643 | ) | - | ||||||||||||||||||||||||
Other, net | 164 | (333 | ) | (5) | (345 | ) | 451 | (5) | 280 | 57 | (5) | 116 | 384 | (5) | ||||||||||||||||||||||
Income (loss) before income taxes | 27,058 | (188 | ) | (26,098 | ) | 46,370 | 50,300 | 3,045 | (35,954 | ) | 80,080 | |||||||||||||||||||||||||
Income tax expense | (4,906 | ) | 20 | (6) | (4,850 | ) | (1,407 | ) | (6) | (11,804 | ) | (827 | ) | (6) | (10,776 | ) | (1,925 | ) | (6) | |||||||||||||||||
Net income (loss) | $ | 22,152 | $ | (168 | ) | $ | (30,948 | ) | $ | 44,963 | $ | 38,496 | $ | 2,218 | $ | (46,730 | ) | $ | 78,155 | |||||||||||||||||
Diluted earnings (loss) per share | $ | 0.68 | $ | (0.94 | ) | $ | 1.17 | $ | (1.42 | ) | ||||||||||||||||||||||||||
(1) Transaction and advisory fees, |
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(2) Restructuring charges relate to the closure of manufacturing plant facilities. | ||||||||||||||||||||||||||||||||||||
(3) Asset impairment charges relate to goodwill impairment in the North American Cabinet Components segment. | ||||||||||||||||||||||||||||||||||||
(4) Accelerated depreciation related to the closure of a North American Cabinet Components plant. | ||||||||||||||||||||||||||||||||||||
(5) Foreign currency transaction losses (gains). | ||||||||||||||||||||||||||||||||||||
(6) Impact on a with and without basis. | ||||||||||||||||||||||||||||||||||||
SELECTED SEGMENT DATA | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
This table provides gross margin, 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 Fenestration | EU Fenestration | NA Components |
Unallocated Corp & Other |
Total | ||||||||||||||||
Three months ended |
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Net sales | $ | 141,983 | $ | 56,823 | $ | 57,465 | $ | (866 | ) | $ | 255,405 | |||||||||
Cost of sales | 105,323 | 36,725 | 47,546 | (430 | ) | 189,164 | ||||||||||||||
Gross Margin | 36,660 | 20,098 | 9,919 | (436 | ) | 66,241 | ||||||||||||||
Gross Margin % | 25.8 | % | 35.4 | % | 17.3 | % | 25.9 | % | ||||||||||||
Selling, general and administrative | 12,883 | 6,739 | 5,270 | 1,997 | 26,889 | |||||||||||||||
Restructuring charges | 67 | - | 78 | - | 145 | |||||||||||||||
Depreciation and amortization | 5,243 | 2,423 | 3,593 | 119 | 11,378 | |||||||||||||||
Operating income (loss) | 18,467 | 10,936 | 978 | (2,552 | ) | 27,829 | ||||||||||||||
Depreciation and amortization | 5,243 | 2,423 | 3,593 | 119 | 11,378 | |||||||||||||||
EBITDA | 23,710 | 13,359 | 4,571 | (2,433 | ) | 39,207 | ||||||||||||||
Restructuring charges | 67 | - | 78 | - | 145 | |||||||||||||||
Adjusted EBITDA | $ | 23,777 | $ | 13,359 | $ | 4,649 | $ | (2,433 | ) | $ | 39,352 | |||||||||
Adjusted EBITDA Margin % | 16.7 | % | 23.5 | % | 8.1 | % | 15.4 | % | ||||||||||||
Three months ended |
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Net sales | $ | 143,183 | $ | 43,794 | $ | 54,266 | $ | (874 | ) | $ | 240,369 | |||||||||
Cost of sales | 107,316 | 29,997 | 46,319 | (504 | ) | 183,128 | ||||||||||||||
Gross Margin | 35,867 | 13,797 | 7,947 | (370 | ) | 57,241 | ||||||||||||||
Gross Margin % | 25.0 | % | 31.5 | % | 14.6 | % | 23.8 | % | ||||||||||||
Selling, general and administrative | 13,215 | 5,532 | 4,925 | 154 | 23,826 | |||||||||||||||
Restructuring charges | 89 | - | - | - | 89 | |||||||||||||||
Depreciation and amortization | 6,846 | 2,176 | 3,276 | 130 | 12,428 | |||||||||||||||
Asset impairment charges | - | - | 44,622 | - | 44,622 | |||||||||||||||
Operating income (loss) | 15,717 | 6,089 | (44,876 | ) | (654 | ) | (23,724 | ) | ||||||||||||
Depreciation and amortization | 6,846 | 2,176 | 3,276 | 130 | 12,428 | |||||||||||||||
EBITDA | 22,563 | 8,265 | (41,600 | ) | (524 | ) | (11,296 | ) | ||||||||||||
Asset impairment charges | - | - | 44,622 | - | 44,622 | |||||||||||||||
LIFO inventory reserve adjustment | - | - | - | 250 | 250 | |||||||||||||||
Transaction and advisory fees | - | - | - | 766 | 766 | |||||||||||||||
Restructuring charges | 89 | - | - | - | 89 | |||||||||||||||
Adjusted EBITDA | $ | 22,652 | $ | 8,265 | $ | 3,022 | $ | 492 | $ | 34,431 | ||||||||||
Adjusted EBITDA Margin % | 15.8 | % | 18.9 | % | 5.6 | % | 14.3 | % | ||||||||||||
Twelve months ended |
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Net sales | $ | 483,415 | $ | 161,054 | $ | 210,099 | $ | (2,995 | ) | $ | 851,573 | |||||||||
Cost of sales | 371,811 | 108,781 | 179,804 | (1,646 | ) | 658,750 | ||||||||||||||
Gross Margin | 111,604 | 52,273 | 30,295 | (1,349 | ) | 192,823 | ||||||||||||||
Gross Margin % | 23.1 | % | 32.5 | % | 14.4 | % | 22.6 | % | ||||||||||||
Selling, general and administrative | 47,845 | 22,729 | 18,738 | 395 | 89,707 | |||||||||||||||
Restructuring charges | 295 | - | 327 | - | 622 | |||||||||||||||
Depreciation and amortization | 23,555 | 9,468 | 13,732 | 474 | 47,229 | |||||||||||||||
Operating income (loss) | 39,909 | 20,076 | (2,502 | ) | (2,218 | ) | 55,265 | |||||||||||||
Depreciation and amortization | 23,555 | 9,468 | 13,732 | 474 | 47,229 | |||||||||||||||
EBITDA | 63,464 | 29,544 | 11,230 | (1,744 | ) | 102,494 | ||||||||||||||
Transaction and advisory fees | - | - | - | 55 | 55 | |||||||||||||||
Executive severance charges | - | - | - | 1,343 | 1,343 | |||||||||||||||
Restructuring charges | 295 | - | 327 | - | 622 | |||||||||||||||
Adjusted EBITDA | $ | 63,759 | $ | 29,544 | $ | 11,557 | $ | (346 | ) | $ | 104,514 | |||||||||
Adjusted EBITDA Margin % | 13.2 | % | 18.3 | % | 5.5 | % | 12.3 | % | ||||||||||||
Twelve months ended |
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Net sales | $ | 503,837 | $ | 164,997 | $ | 229,644 | $ | (4,637 | ) | $ | 893,841 | |||||||||
Cost of sales | 386,194 | 114,136 | 197,263 | (3,173 | ) | 694,420 | ||||||||||||||
Gross Margin | 117,643 | 50,861 | 32,381 | (1,464 | ) | 199,421 | ||||||||||||||
Gross Margin % | 23.3 | % | 30.8 | % | 14.1 | % | 22.3 | % | ||||||||||||
Selling, general and administrative | 50,454 | 22,976 | 18,839 | 9,023 | 101,292 | |||||||||||||||
Restructuring charges | 370 | - | - | - | 370 | |||||||||||||||
Depreciation and amortization | 27,054 | 8,845 | 13,178 | 509 | 49,586 | |||||||||||||||
Asset impairment charges | - | - | 74,600 | - | 74,600 | |||||||||||||||
Operating income (loss) | 39,765 | 19,040 | (74,236 | ) | (10,996 | ) | (26,427 | ) | ||||||||||||
Depreciation and amortization | 27,054 | 8,845 | 13,178 | 509 | 49,586 | |||||||||||||||
EBITDA | 66,819 | 27,885 | (61,058 | ) | (10,487 | ) | 23,159 | |||||||||||||
Asset impairment charges | - | - | 74,600 | - | 74,600 | |||||||||||||||
Transaction and advisory fees | - | - | - | 1,467 | 1,467 | |||||||||||||||
Reorganization and executive severance | - | - | - | 2,301 | 2,301 | |||||||||||||||
Loss on sale of plant | - | - | - | 766 | 766 | |||||||||||||||
Restructuring charges | 370 | - | - | - | 370 | |||||||||||||||
Adjusted EBITDA | $ | 67,189 | $ | 27,885 | $ | 13,542 | $ | (5,953 | ) | $ | 102,663 | |||||||||
Adjusted EBITDA Margin % | 13.3 | % | 16.9 | % | 5.9 | % | 11.5 | % | ||||||||||||
SALES ANALYSIS | |||||||||||||||
(In thousands) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
NA Fenestration: | |||||||||||||||
$ | 125,522 | $ | 127,027 | $ | 427,616 | $ | 439,536 | ||||||||
International - fenestration | 9,301 | 7,631 | 28,585 | 31,106 | |||||||||||
5,500 | 4,771 | 19,279 | 17,061 | ||||||||||||
International - non-fenestration | 1,660 | 3,754 | 7,935 | 16,134 | |||||||||||
$ | 141,983 | $ | 143,183 | $ | 483,415 | $ | 503,837 | ||||||||
EU Fenestration (1): | |||||||||||||||
International - fenestration | $ | 46,699 | 37,599 | $ | 134,432 | 139,638 | |||||||||
International - non-fenestration | 10,124 | 6,195 | 26,622 | 25,359 | |||||||||||
$ | 56,823 | $ | 43,794 | $ | 161,054 | $ | 164,997 | ||||||||
NA Cabinet Components: | |||||||||||||||
$ | 3,381 | $ | 3,235 | $ | 11,842 | $ | 13,144 | ||||||||
53,641 | 50,516 | 196,479 | 214,211 | ||||||||||||
International - non-fenestration | 443 | 515 | 1,778 | 2,289 | |||||||||||
$ | 57,465 | $ | 54,266 | $ | 210,099 | $ | 229,644 | ||||||||
Unallocated Corporate & Other: | |||||||||||||||
Eliminations | $ | (866 | ) | $ | (874 | ) | $ | (2,995 | ) | $ | (4,637 | ) | |||
$ | (866 | ) | $ | (874 | ) | $ | (2,995 | ) | $ | (4,637 | ) | ||||
$ | 255,405 | $ | 240,369 | $ | 851,573 | $ | 893,841 | ||||||||
(1) Reflects |
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Source: Quanex Building Products Corporation