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Quanex Building Products Announces Third Quarter 2020 Results and Provides Updated Full Year 2020 Guidance

Balance Sheet & Liquidity Remain Strong
Repaid $78 Million of Bank Debt
Over 50% Increase in Cash Provided by Operations
Margin Expansion Realized in EU Fenestration Segment
Management Remains Optimistic on Recovery

HOUSTON, Sept. 03, 2020 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation (NYSE:NX) (“Quanex” or the “Company”) today announced its results for the three months ended July 31, 2020.

The Company reported the following selected financial results:

    Three Months Ended July 31,   Nine Months Ended July 31,
      2020       2019       2020       2019  
Net Sales   $212.1     $238.5     $596.2     $653.5  
Gross Margin   $49.7     $57.1     $126.6     $142.2  
Gross Margin %     23.4%       23.9%       21.2%       21.8%  
Net Income (Loss)   $10.8     $11.8     $16.3       ($15.8)  
Diluted EPS   $0.33     $0.36     $0.50       ($0.48)  
                 
Adjusted Net Income   $11.1     $13.7     $18.7     $17.8  
Adjusted Diluted EPS   $0.34     $0.41     $0.57     $0.54  
Adjusted EBITDA   $27.7     $32.8     $65.2     $68.2  
Adjusted EBITDA Margin %     13.1%       13.7%       10.9%       10.4%  
                 
Cash Provided by Operating Activities $45.1     $29.9     $47.6     $30.0  
Free Cash Flow   $40.7     $25.9     $26.9     $13.1  
                 
(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)
                 

George Wilson, President and Chief Executive Officer, stated, “Despite the impact from the COVID-19 pandemic, third quarter results proved better than we expected and exceeded the guidance we provided on our last earnings call. Volumes increased steadily throughout the quarter, especially in Europe, and we remain optimistic on the recovery.  We continue to focus on managing working capital and generating cash.  As a result, we realized an increase of over 50% in cash provided by operating activities as compared to the same period of 2019.  We were also able to repay $78 million of bank debt during the quarter, $50 million of which was drawn as a precautionary measure in response to the pandemic, and our leverage ratio of Net Debt to LTM Adjusted EBITDA improved to a level below where we ended fiscal 2019.  We have worked tirelessly over the past several years to make sure we have a flexible capital structure and a strong balance sheet, which has left our Company well positioned to navigate the challenges presented by the COVID-19 pandemic.”

Consistent with most companies, we withdrew guidance for fiscal 2020 in March due to the uncertainty surrounding the COVID-19 pandemic.  Our results have been negatively impacted by the pandemic; however, we continue to be positively surprised by the pace at which demand for our products has returned. As such, we are now comfortable providing full year 2020 guidance of $832 million to $837 million in net sales and $97 million to $102 million in Adjusted EBITDA*.  (See Non-GAAP Terminology Definitions and Disclaimers section for additional information)

*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.

Third Quarter 2020 Results Summary  

The decrease in net sales during the third quarter of 2020 was largely attributable to softer demand related to the COVID-19 pandemic.  The Company’s two manufacturing facilities in the UK were shut down in compliance with government orders on March 25, 2020, and manufacturing operations at those plants did not restart until mid-to-late May.  However, volume across all segments increased significantly in June and net sales in July exceeded prior year on a consolidated basis. (See Sales Analysis table for additional information)

The decrease in reported earnings was primarily due to reduced operating leverage as a result of softer volumes related to the pandemic.    

Balance Sheet & Liquidity Update

As of July 31, 2020, the Company’s leverage ratio of Net Debt to LTM Adjusted EBITDA improved to 1.1x.  Quanex expects to exit fiscal 2020 with a leverage ratio of Net Debt to LTM Adjusted EBITDA at or below 1.0x.   (See Non-GAAP Terminology Definitions and Disclaimers section for additional information)

The Company’s liquidity increased to $223.2 million as of July 31, 2020, consisting of $41.1 million in cash on hand plus availability under its Senior Secured Revolving Credit Facility due 2023, less letters of credit outstanding.

Share Repurchases

Quanex’s Board of Directors authorized a $60 million share repurchase program in September of 2018.  Repurchases under this program will be made in open market transactions or privately negotiated transactions, subject to market conditions, applicable legal requirements and other relevant factors.  The program does not have an expiration date or a limit on the number of shares that may be repurchased.  The Company did not repurchase any shares of common stock during the three months ended July 31, 2020.  As of July 31, 2020, approximately $11.7 million remained under the existing share repurchase authorization.  

Recent Events

Quanex’s Board of Directors declared a quarterly cash dividend of $0.08 per share on the Company’s common stock, payable September 30, 2020, to shareholders of record on September 16, 2020.

Conference Call and Webcast Information

The Company has scheduled a conference call for Friday, September 4, 2020, 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 6194308, 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 September 11, 2020.  To access the replay dial (855) 859-2056 for domestic callers and (404) 537-3406 for international callers, in both cases referencing conference passcode 6194308. 

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, Senior Vice President, Chief Financial Officer & 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, 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 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 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 October 31, 2019, and the Company’s Quarterly Reports on Form 10-Q 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 INCOME (LOSS)
(In thousands, except per share data)
(Unaudited)

    Three Months Ended July 31,   Nine Months Ended July 31,
      2020       2019       2020       2019  
                 
Net sales   $ 212,096     $ 238,461     $ 596,168     $ 653,472  
Cost of sales     162,427       181,357       469,586       511,292  
Selling, general and administrative     21,973       25,718       62,818       77,466  
Restructuring charges     73       94       477       281  
Depreciation and amortization     11,060       12,182       35,851       37,158  
Asset impairment charges     -       -       -       29,978  
Operating income (loss)     16,563       19,110       27,436       (2,703 )
Interest expense     (1,165 )     (2,570 )     (4,310 )     (7,614 )
Other, net     (220 )     259       116       461  
Income (loss) before income taxes     15,178       16,799       23,242       (9,856 )
Income tax expense     (4,345 )     (4,958 )     (6,898 )     (5,926 )
Net income (loss)   $ 10,833     $ 11,841     $ 16,344     $ (15,782 )
                 
Earnings (loss) per common share, basic   $ 0.33     $ 0.36     $ 0.50     $ (0.48 )
Earnings (loss) per common share, diluted   $ 0.33     $ 0.36     $ 0.50     $ (0.48 )
                 
Weighted average common shares outstanding:                
Basic     32,610       32,899       32,716       32,984  
Diluted     32,739       33,162       32,845       32,984  
                 
Cash dividends per share   $ 0.08     $ 0.08     $ 0.24     $ 0.24  
                 

QUANEX BUILDING PRODUCTS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

  July 31, 2020   October 31, 2019
ASSETS      
Current assets:      
Cash and cash equivalents $ 41,073     $ 30,868  
Accounts receivable, net   84,479       82,946  
Inventories, net   63,939       67,159  
Prepaid and other current assets   7,930       9,353  
Total current assets   197,421       190,326  
Property, plant and equipment, net   186,830       193,600  
Operating lease right-of-use assets   49,644       -  
Goodwill   146,932       145,563  
Intangible assets, net   96,957       107,297  
Other assets   9,007       8,324  
Total assets $ 686,791     $ 645,110  
       
LIABILITIES AND STOCKHOLDERS' EQUITY      
Current liabilities:      
Accounts payable $ 58,676     $ 63,604  
Accrued liabilities   33,916       39,221  
Income taxes payable   6,350       6,183  
Current maturities of long-term debt   690       746  
Current operating lease liabilities   7,307       -  
Total current liabilities   106,939       109,754  
Long-term debt   152,062       156,414  
Noncurrent operating lease liabilities   42,740       -  
Deferred pension and postretirement benefits   11,375       13,322  
Deferred income taxes   20,507       19,363  
Other liabilities   13,230       16,070  
Total liabilities   346,853       314,923  
Stockholders’ equity:      
Common stock   373       374  
Additional paid-in-capital   253,144       254,673  
Retained earnings   193,989       185,703  
Accumulated other comprehensive loss   (28,819 )     (33,817 )
Treasury stock at cost   (78,749 )     (76,746 )
Total stockholders’ equity   339,938       330,187  
Total liabilities and stockholders' equity $ 686,791     $ 645,110  
       

QUANEX BUILDING PRODUCTS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(In thousands)
(Unaudited)

  Nine Months Ended July 31,
    2020       2019  
Operating activities:      
Net income (loss) $ 16,344     $ (15,782 )
Adjustments to reconcile net income (loss) to cash provided by operating activities:      
Depreciation and amortization   35,851       37,158  
Stock-based compensation   513       1,424  
Deferred income tax   438       1,930  
Asset impairment charge   -       29,978  
Other, net   762       1,724  
Changes in assets and liabilities:      
(Increase) decrease in accounts receivable   (1,852 )     323  
Decrease (increase) in inventory   3,553       (14,747 )
Decrease (increase) in other current assets   1,218       (1,022 )
(Decrease) increase in accounts payable   (1,878 )     1,562  
Decrease in accrued liabilities   (7,611 )     (15,366 )
Increase in income taxes payable   107       396  
Increase in deferred pension and postretirement benefits   573       2,351  
Decrease in other long-term liabilities   (181 )     (143 )
Other, net   (276 )     250  
Cash provided by operating activities   47,561       30,036  
Investing activities:      
Capital expenditures   (20,673 )     (16,984 )
Proceeds from disposition of capital assets   131       315  
Cash used for investing activities   (20,542 )     (16,669 )
Financing activities:      
Borrowings under credit facilities   114,500       66,500  
Repayments of credit facility borrowings   (119,000 )     (84,000 )
Repayments of other long-term debt   (791 )     (1,102 )
Common stock dividends paid   (7,910 )     (7,990 )
Issuance of common stock   2,954       2,710  
Payroll tax paid to settle shares forfeited upon vesting of stock   (454 )     (330 )
Purchase of treasury stock   (6,693 )     (6,336 )
Cash used for financing activities   (17,394 )     (30,548 )
Effect of exchange rate changes on cash and cash equivalents   580       (1,171 )
Increase (decrease) in cash and cash equivalents   10,205       (18,352 )
Cash and cash equivalents at beginning of period   30,868       29,003  
Cash and cash equivalents at end of period $ 41,073     $ 10,651  
       

QUANEX BUILDING PRODUCTS CORPORATION
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 July 31,   Nine Months Ended July 31,
      2020       2019       2020       2019  
Cash provided by operating activities   $45,089     $29,893     $47,561     $30,036  
Capital expenditures     (4,360 )     (3,962 )     (20,673 )     (16,984 )
Free Cash Flow   $40,729     $25,931     $26,888     $13,052  
                                 

QUANEX BUILDING PRODUCTS CORPORATION
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     Nine Months Ended     Nine Months Ended  
  July 31, 2020     July 31, 2019     July 31, 2020     July 31, 2019  
    Net Income   Diluted EPS     Net Income   Diluted EPS     Net Income   Diluted EPS     Net (Loss) Income   Diluted EPS  
Net income (loss) as reported   $ 10,833     $ 0.33       $ 11,841     $ 0.36       $ 16,344     $ 0.50       $ (15,782 )   $ (0.48 )  
Reconciling items from below     280       0.01         1,809       0.05         2,387       0.07         33,595       1.02    
Adjusted net income and adjusted EPS   $ 11,113     $ 0.34       $ 13,650     $ 0.41       $ 18,731     $ 0.57       $ 17,813     $ 0.54    
                                         
Reconciliation of Adjusted EBITDA   Three Months Ended
July 31, 2020
    Three Months Ended
July 31, 2019
    Nine Months Ended
July 31, 2020
    Nine Months Ended
July 31, 2019
 
    Reconciliation         Reconciliation         Reconciliation         Reconciliation      
Net income (loss) as reported   $ 10,833           $ 11,841           $ 16,344           $ (15,782 )      
Income tax expense     4,345             4,958             6,898             5,926        
Other, net     220             (259 )           (116 )           (461 )      
Interest expense     1,165             2,570             4,310             7,614        
Depreciation and amortization     11,060             12,182             35,851             37,158        
EBITDA     27,623             31,292             63,287             34,455        
Reconciling items from below     73             1,495             1,875             33,777        
Adjusted EBITDA   $ 27,696           $ 32,787           $ 65,162           $ 68,232        
                                         
Reconciling Items   Three Months Ended
July 31, 2020
    Three Months Ended
July 31, 2019
    Nine Months Ended
July 31, 2020
    Nine Months Ended
July 31, 2019
 
    Income Statement   Reconciling Items     Income Statement   Reconciling Items     Income Statement   Reconciling Items     Income Statement   Reconciling Items  
Net sales   $ 212,096     $ -       $ 238,461     $ -       $ 596,168     $ -       $ 653,472     $ -    
Cost of sales     162,427       -         181,357       -         469,586       -         511,292       -    
Selling, general and administrative     21,973       -         25,718       (1,401 ) (1)     62,818       (1,398 ) (1)     77,466       (3,518 ) (1)
Restructuring charges     73       (73 ) (2)     94       (94 ) (2)     477       (477 ) (2)     281       (281 ) (2)
Asset impairment charges     -       -         -       -         -       -         29,978       (29,978 ) (3)
EBITDA     27,623       73         31,292       1,495         63,287       1,875         34,455       33,777    
Depreciation and amortization     11,060       -         12,182       -         35,851       (968 ) (4)     37,158       -    
Operating income (loss)     16,563       73         19,110       1,495         27,436       2,843         (2,703 )     33,777    
Interest expense     (1,165 )     -         (2,570 )     -         (4,310 )     -         (7,614 )     -    
Other, net     (220 )     458   (5)     259       (112 ) (5)     116       390   (5)     461       (67 ) (5)
Income (loss) before income taxes     15,178       531         16,799       1,383         23,242       3,233         (9,856 )     33,710    
Income tax expense     (4,345 )     (251 ) (6)     (4,958 )     426   (6)     (6,898 )     (846 ) (6)     (5,926 )     (115 ) (6)
Net income (loss)   $ 10,833     $ 280       $ 11,841     $ 1,809       $ 16,344     $ 2,387       $ (15,782 )   $ 33,595    
                                         
Diluted earnings (loss) per share   $ 0.33           $ 0.36           $ 0.50           $ (0.48 )      
                                         
                                         
(1) Transaction and advisory fees, $1.3 million related to executive severance charges in the nine months ended 2020, $1.2 million of executive severance charges in the three and nine months ended 2019, and $1.2 million of severance charges related to a reorganization in the nine months ended 2019.  
(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.  
                                         

QUANEX BUILDING PRODUCTS CORPORATION
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 Cabinet
Components
  Unallocated
Corp & Other
  Total
Three months ended July 31, 2020                    
Net sales   $ 122,386     $ 38,265     $ 51,925     $ (480 )   $ 212,096  
Cost of sales     92,639       25,845       44,218       (275 )     162,427  
Gross Margin     29,747       12,420       7,707       (205 )     49,669  
Gross Margin %     24.3 %     32.5 %     14.8 %         23.4 %
Selling, general and administrative     11,922       4,748       4,634       669       21,973  
Restructuring charges     71       -       2       -       73  
Depreciation and amortization     5,371       2,307       3,264       118       11,060  
Operating income (loss)     12,383       5,365       (193 )     (992 )     16,563  
Depreciation and amortization     5,371       2,307       3,264       118       11,060  
EBITDA     17,754       7,672       3,071       (874 )     27,623  
Restructuring charges     71       -       2       -       73  
Adjusted EBITDA   $ 17,825     $ 7,672     $ 3,073     $ (874 )   $ 27,696  
Adjusted EBITDA Margin %     14.6 %     20.0 %     5.9 %         13.1 %
                     
Three months ended July 31, 2019                    
Net sales   $ 136,259     $ 44,326     $ 58,689     $ (813 )   $ 238,461  
Cost of sales     101,693       30,708       49,389       (433 )     181,357  
Gross Margin     34,566       13,618       9,300       (380 )     57,104  
Gross Margin %     25.4 %     30.7 %     15.8 %         23.9 %
Selling, general and administrative     11,950       6,038       4,484       3,246       25,718  
Restructuring charges     94       -       -       -       94  
Depreciation and amortization     6,578       2,213       3,258       133       12,182  
Operating income (loss)     15,944       5,367       1,558       (3,759 )     19,110  
Depreciation and amortization     6,578       2,213       3,258       133       12,182  
EBITDA     22,522       7,580       4,816       (3,626 )     31,292  
Transaction and advisory fees     -       -       -       250       250  
Severance charges     -       -       -       1,151       1,151  
Restructuring charges     94       -       -       -       94  
Adjusted EBITDA   $ 22,616     $ 7,580     $ 4,816     $ (2,225 )   $ 32,787  
Adjusted EBITDA Margin %     16.6 %     17.1 %     8.2 %         13.7 %
                     
Nine months ended July 31, 2020                    
Net sales   $ 341,432     $ 104,230     $ 152,634     $ (2,128 )   $ 596,168  
Cost of sales     266,489       72,055       132,259       (1,217 )     469,586  
Gross Margin     74,943       32,175       20,375       (911 )     126,582  
Gross Margin %     21.9 %     30.9 %     13.3 %         21.2 %
Selling, general and administrative     34,962       15,990       13,468       (1,602 )     62,818  
Restructuring charges     228       -       249       -       477  
Depreciation and amortization     18,311       7,045       10,139       356       35,851  
Operating income (loss)     21,442       9,140       (3,481 )     335       27,436  
Depreciation and amortization     18,311       7,045       10,139       356       35,851  
EBITDA     39,753       16,185       6,658       691       63,287  
Transaction and advisory fees     -       -       -       55       55  
Executive severance charges     -       -       -       1,343       1,343  
Restructuring charges     228       -       249       -       477  
Adjusted EBITDA   $ 39,981     $ 16,185     $ 6,907     $ 2,089     $ 65,162  
Adjusted EBITDA Margin %     11.7 %     15.5 %     4.5 %         10.9 %
                     
Nine months ended July 31, 2019                    
Net sales   $ 360,654     $ 121,203     $ 175,377     $ (3,762 )   $ 653,472  
Cost of sales     278,877       84,139       150,944       (2,668 )     511,292  
Gross Margin     81,777       37,064       24,433       (1,094 )     142,180  
Gross Margin %     22.7 %     30.6 %     13.9 %         21.8 %
Selling, general and administrative     37,240       17,444       13,914       8,868       77,466  
Restructuring charges     281       -       -       -       281  
Depreciation and amortization     20,208       6,669       9,902       379       37,158  
Asset impairment charges     -       -       29,978       -       29,978  
Operating income (loss)     24,048       12,951       (29,361 )     (10,341 )     (2,703 )
Depreciation and amortization     20,208       6,669       9,902       379       37,158  
EBITDA     44,256       19,620       (19,459 )     (9,962 )     34,455  
Asset impairment charges     -       -       29,978       -       29,978  
Transaction and advisory fees     -       -       -       1,217       1,217  
Severance related to reorganization     -       -       -       2,301       2,301  
Restructuring charges     281       -       -       -       281  
Adjusted EBITDA   $ 44,537     $ 19,620     $ 10,519     $ (6,444 )   $ 68,232  
Adjusted EBITDA Margin %     12.3 %     16.2 %     6.0 %         10.4 %
                     

QUANEX BUILDING PRODUCTS CORPORATION
SALES ANALYSIS
(In thousands)
(Unaudited)

     Three Months Ended    Nine Months Ended
    July 31, 2020   July 31, 2019   July 31, 2020   July 31, 2019
                 
NA Fenestration:              
  United States - fenestration $ 109,455     $ 119,481     $ 302,094     $ 312,509  
  International - fenestration   6,696       7,172       19,284       23,474  
  United States - non-fenestration   4,845       3,982       13,779       12,290  
  International - non-fenestration   1,390       5,624       6,275       12,381  
    $ 122,386     $ 136,259     $ 341,432     $ 360,654  
EU Fenestration (1):              
  International - fenestration $ 31,904     $ 36,342     $ 87,732     $ 102,038  
  International - non-fenestration   6,361       7,984       16,498       19,165  
    $ 38,265     $ 44,326     $ 104,230     $ 121,203  
NA Cabinet Components:              
  United States - fenestration $ 2,666     $ 3,561     $ 8,461     $ 9,909  
  United States - non-fenestration   48,849       54,512       142,838       163,694  
  International - non-fenestration   410       616       1,335       1,774  
    $ 51,925     $ 58,689     $ 152,634     $ 175,377  
Unallocated Corporate & Other:              
  Eliminations $ (480 )   $ (813 )   $ (2,128 )   $ (3,762 )
    $ (480 )   $ (813 )   $ (2,128 )   $ (3,762 )
                 
Net Sales $ 212,096     $ 238,461     $ 596,168     $ 653,472  
                 
(1) Reflects reduction of $0.4 million and $1.6 million in revenue associated with foreign currency exchange rate impacts for the three and nine months ended July 31, 2020, respectively.
 

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Source: Quanex Building Products Corporation