American Woodmark Corporation has released its financial results for the first quarter of fiscal 2025. The company reported a decrease in net sales by $39.1 million, or 7.9%, totaling $459.1 million. Net income also decreased to $29.6 million, which is a drop from $37.9 million in the same quarter of the previous fiscal year. This decrease in net income is attributed to a lower net sales figure combined with an unfavorable mark-to-market adjustment on the company's foreign currency hedging instruments, among other factors.
Adjusted EBITDA for the first quarter of fiscal 2025 decreased by $12.3 million, or 16.3%, to $62.9 million, representing 13.7% of net sales, compared to $75.2 million, or 15.1% of net sales, in the last fiscal year. The company also repurchased 271,460 shares for $24.0 million during this quarter.
As of July 31, 2024, American Woodmark Corporation had $89.3 million in cash with access to $322.9 million of additional availability under its revolving credit facility. The company also had $206.3 million in term loan debt and $163.8 million drawn on its revolving credit facility. Cash provided by operating activities for the quarter was $40.8 million, with free cash flow totaling $29.4 million.
Looking ahead, for the fiscal year 2025, the company anticipates a low single-digit decline in net sales year-over-year and expects adjusted EBITDA in the range of $225 million to $245 million.
In response to the results, Scott Culbreth, President and CEO, remarked on the challenges posed by softer demand in the remodel market and a recent slowdown in new construction single family starts. Despite these macroeconomic challenges, the company remains focused on targeting share gains across all channels to outperform market demand for the fiscal year.
Paul Joachimczyk, Senior Vice President and Chief Financial Officer, highlighted the influence of weaker sales in the repair and remodel market on the achieved adjusted EBITDA of $62.9 million during the first fiscal quarter. He also emphasized the company's commitment to making operational improvements and returning value to shareholders through share repurchases.
The company’s adjusted EBITDA outlook excludes the impact of certain income and expense items that management believes are not part of underlying operations, such as restructuring costs, interest expense, stock-based compensation expense, and certain tax items.
American Woodmark Corporation is one of the nation’s largest cabinet manufacturers, employing over 8,600 individuals and collaborating with numerous brands, home centers, builders, and independent dealers and distributors to help homeowners and designers bring their visions to life.
As always, the company's commitment to customer satisfaction, integrity, teamwork, and excellence remains unwavering.
For more information about American Woodmark Corporation, visit their website. Following these announcements, the company's shares moved -10.0%, and are now trading at a price of $89.86. Check out the company's full 8-K submission here.
