Quanex Building Products Corporation (NYSE:NX)
(“Quanex” or the “Company”) today announced its results for the
three months ended July 31, 2023.
The Company reported the following selected
financial results:
|
Three Months Ended July 31, |
|
Nine Months Ended July 31, |
($ in millions, except per share data) |
2023 |
|
2022 |
|
2023 |
|
2022 |
Net
Sales |
$299.6 |
|
$324.0 |
|
$835.1 |
|
$914.0 |
Gross
Margin |
$78.6 |
|
$72.6 |
|
$197.5 |
|
$201.0 |
Gross Margin % |
26.2% |
|
22.4% |
|
23.7% |
|
22.0% |
Net
Income |
$31.7 |
|
$25.9 |
|
$55.1 |
|
$63.7 |
Diluted
EPS |
$0.96 |
|
$0.78 |
|
$1.67 |
|
$1.91 |
|
|
|
|
|
|
|
|
Adjusted Net
Income |
$31.9 |
|
$26.2 |
|
$59.7 |
|
$64.0 |
Adjusted
Diluted EPS |
$0.97 |
|
$0.79 |
|
$1.81 |
|
$1.92 |
Adjusted
EBITDA |
$48.5 |
|
$44.2 |
|
$108.8 |
|
$113.8 |
Adjusted EBITDA Margin % |
16.2% |
|
13.6% |
|
13.0% |
|
12.5% |
|
|
|
|
|
|
|
|
Cash
Provided by Operating Activities |
$64.1 |
|
$51.7 |
|
$102.6 |
|
$49.9 |
Free Cash
Flow |
$56.7 |
|
$46.0 |
|
$80.1 |
|
$30.4 |
(See Non-GAAP Terminology Definitions and Disclaimers section,
Non-GAAP Financial Measure Disclosure table, Selected Segment Data
table and reconciliation tables for additional information)
George Wilson, President and Chief Executive
Officer, stated, “The results we reported for the three months
ended July 31, 2023 were a record for Quanex from both an earnings
and margin perspective. Demand continued to improve across all
product lines during the third quarter of this year compared to the
first half of the year. In addition, we believe the customer
inventory rebalancing that impacted results in our fenestration
segments in the first half have subsided and did not affect third
quarter results.
“When compared to the third quarter of 2022,
revenue declined in the third quarter of 2023 across all operating
segments as ongoing macroeconomic challenges led to market volume
declines and some pricing pressure, mostly due to surcharge
rollbacks and index pricing decreases in North America as raw
material costs declined. Despite this pressure on the topline, we
converted well and realized margin expansion across all operating
segments. Our continued focus on operational efficiency proved
beneficial and our ability to flex our cost structure to meet
demand trends across product lines also helped improve our
profitability during the quarter.
“We continue to do a good job of managing
working capital and generating cash, which enabled us to pay down
our bank debt by $25 million during the third quarter. In fact, we
are currently on track to generate record free cash flow this year.
In addition, our balance sheet remains strong, and our leverage
ratio improved compared to the second quarter of this year.” (See
Non-GAAP Terminology Definitions and Disclaimers section for
additional information)
Third Quarter 2023 Results
Summary
The Company reported net sales of $299.6 million
during the three months ended July 31, 2023, which represents a
decrease of 7.5% compared to $324.0 million for the same period of
2022. The decrease was mostly attributable to softer market demand
and lower pricing in North America. Quanex realized a
decline in net sales of 4.1% for the third quarter of 2023 in its
North American Fenestration segment. Excluding the contribution
from the LMI Custom Mixing assets we acquired on November 1, 2022,
net sales in the North American Fenestration segment would have
declined by 14.9% year-over-year. The Company reported a decline in
net sales of 23.6% in its North American Cabinet Components segment
and a decrease of 2.8% in net sales in its European Fenestration
segment, excluding foreign exchange impact. (See Sales Analysis
table for additional information)
The increase in earnings for the three months
ended July 31, 2023 was largely attributable to operational
efficiency gains, cost control and a decrease in income tax
expense. As such, Quanex was able to realize margin expansion in
each of its operating segments and on a consolidated basis.
Balance Sheet Update
As of July 31, 2023, Quanex had total debt of
$110.8 million ($57.9 million excluding real-estate leases that are
considered “finance” leases under U.S. GAAP) and the Company’s
leverage ratio of Net Debt to LTM Adjusted EBITDA decreased to 0.3x
(Net Debt free excluding these real-estate leases). As of July 31,
2023, Quanex’s LTM Adjusted EBITDA was $147.5 million and LTM Net
Income, the most directly comparable GAAP measure, was $79.8
million. (See Non-GAAP Terminology Definitions and
Disclaimers section, Net Debt Reconciliation table and Last Twelve
Months Adjusted EBITDA Reconciliation table for additional
information)
Outlook
Mr. Wilson commented, “We were cautiously
optimistic heading into the second half of our fiscal year based on
our belief that we were seeing a return to normal seasonality. Our
third quarter results reinforced that belief. Based on our results
year-to-date, combined with our operational execution, recent
demand trends and conversations with our customers, we are updating
our guidance for fiscal 2023. On a consolidated basis for fiscal
2023, we currently estimate that we will generate net sales of
approximately $1.125 billion, which is towards the lower end of
prior guidance as indicated on our last earnings call; however, we
are increasing our Adjusted EBITDA* guidance to $150 million to
$155 million.
Our capital allocation priorities continue to be
generating cash, paying down debt, evaluating growth opportunities
and opportunistically buying back our stock.”
*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 also scheduled a conference call
for Friday, September 1, 2023 at 11:00 a.m. ET (10:00 a.m. CT) to
discuss the release. A link to the live audio webcast will be
available on Quanex’s website at http://www.quanex.com in the
Investors section under Presentations & Events.
Participants can pre-register for the conference call using the
following link:
https://register.vevent.com/register/BI9e428e0cc86a46139a82d87ee6276d56
Registered participants will receive an email
containing conference call details for dial-in options. To avoid
delays, it is recommended that participants dial into the
conference call ten minutes ahead of the scheduled start time. A
replay will be available for a limited time on the Company’s
website at http://www.quanex.com in the Investors section under
Presentations & Events.
About Quanex
Quanex is a global manufacturer with core
capabilities and broad applications across various end markets. The
Company currently collaborates and partners with leading OEMs to
provide innovative solutions in the window, door, vinyl fencing,
solar, refrigeration and cabinetry markets. Looking ahead,
Quanex plans to leverage its material science expertise and process
engineering to expand into adjacent markets.
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 (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. Net
Debt is defined as total debt (outstanding balance on the revolving
credit facility plus financial lease obligations) less 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 uses the Free Cash Flow metric to measure
operational and cash management performance and assist with
financial decision-making. Free Cash Flow is measured before
application of certain contractual commitments (including capital
lease obligations), and accordingly is not a true measure of the
Company’s residual cash flow available for discretionary
expenditures. Quanex believes Free Cash Flow is useful to investors
in understanding and evaluating the Company’s financial and cash
management performance. 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 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, 2022, 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.
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME(In thousands, except per
share data)(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended July 31, |
|
Nine Months Ended July 31, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
299,640 |
|
|
$ |
324,037 |
|
|
$ |
835,091 |
|
|
$ |
913,970 |
|
Cost of
sales |
|
|
221,065 |
|
|
|
251,446 |
|
|
|
637,586 |
|
|
|
712,931 |
|
Selling,
general and administrative |
|
|
30,516 |
|
|
|
28,822 |
|
|
|
94,631 |
|
|
|
87,774 |
|
Depreciation
and amortization |
|
|
10,596 |
|
|
|
9,734 |
|
|
|
31,672 |
|
|
|
30,554 |
|
Operating
income |
|
|
37,463 |
|
|
|
34,035 |
|
|
|
71,202 |
|
|
|
82,711 |
|
Interest
expense |
|
|
(2,068 |
) |
|
|
(724 |
) |
|
|
(6,571 |
) |
|
|
(1,849 |
) |
Other,
net |
|
|
402 |
|
|
|
398 |
|
|
|
591 |
|
|
|
905 |
|
Income
before income taxes |
|
|
35,797 |
|
|
|
33,709 |
|
|
|
65,222 |
|
|
|
81,767 |
|
Income tax
expense |
|
|
(4,099 |
) |
|
|
(7,801 |
) |
|
|
(10,103 |
) |
|
|
(18,098 |
) |
Net
income |
|
$ |
31,698 |
|
|
$ |
25,908 |
|
|
$ |
55,119 |
|
|
$ |
63,669 |
|
|
|
|
|
|
|
|
|
|
Earnings per
common share, basic |
|
$ |
0.97 |
|
|
$ |
0.79 |
|
|
$ |
1.68 |
|
|
$ |
1.92 |
|
Earnings per
common share, diluted |
|
$ |
0.96 |
|
|
$ |
0.78 |
|
|
$ |
1.67 |
|
|
$ |
1.91 |
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
32,716 |
|
|
|
32,999 |
|
|
|
32,841 |
|
|
|
33,093 |
|
Diluted |
|
|
32,919 |
|
|
|
33,173 |
|
|
|
33,031 |
|
|
|
33,256 |
|
|
|
|
|
|
|
|
|
|
Cash
dividends per share |
|
$ |
0.08 |
|
|
$ |
0.08 |
|
|
$ |
0.24 |
|
|
$ |
0.24 |
|
|
|
|
|
|
|
|
|
|
|
QUANEX
BUILDING PRODUCTS CORPORATIONCONDENSED
CONSOLIDATED BALANCE SHEETS(In thousands)(Unaudited) |
|
|
|
|
|
|
|
July 31, 2023 |
|
October 31, 2022 |
ASSETS |
|
|
|
|
Current
assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
73,252 |
|
|
$ |
55,093 |
|
Accounts receivable, net |
|
|
96,204 |
|
|
|
96,018 |
|
Inventories, net |
|
|
105,368 |
|
|
|
120,890 |
|
Prepaid and other current assets |
|
|
12,764 |
|
|
|
8,664 |
|
Total current assets |
|
|
287,588 |
|
|
|
280,665 |
|
Property,
plant and equipment, net |
|
|
245,912 |
|
|
|
180,400 |
|
Operating
lease right-of-use assets |
|
|
45,804 |
|
|
|
56,000 |
|
Goodwill |
|
|
186,409 |
|
|
|
137,855 |
|
Intangible
assets, net |
|
|
78,617 |
|
|
|
65,035 |
|
Other
assets |
|
|
3,479 |
|
|
|
4,662 |
|
Total assets |
|
$ |
847,809 |
|
|
$ |
724,617 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts payable |
|
$ |
71,464 |
|
|
$ |
77,907 |
|
Accrued liabilities |
|
|
54,237 |
|
|
|
52,114 |
|
Income taxes payable |
|
|
- |
|
|
|
1,049 |
|
Current maturities of long-term debt |
|
|
2,278 |
|
|
|
1,046 |
|
Current operating lease liabilities |
|
|
7,388 |
|
|
|
7,727 |
|
Total current liabilities |
|
|
135,367 |
|
|
|
139,843 |
|
Long-term
debt |
|
|
107,234 |
|
|
|
29,628 |
|
Noncurrent
operating lease liabilities |
|
|
39,291 |
|
|
|
49,286 |
|
Deferred
pension benefits |
|
|
- |
|
|
|
3,917 |
|
Deferred
income taxes |
|
|
23,741 |
|
|
|
22,277 |
|
Other
liabilities |
|
|
16,221 |
|
|
|
14,831 |
|
Total liabilities |
|
|
321,854 |
|
|
|
259,782 |
|
Stockholders’ equity: |
|
|
|
|
Common stock |
|
|
372 |
|
|
|
372 |
|
Additional paid-in-capital |
|
|
250,882 |
|
|
|
251,947 |
|
Retained earnings |
|
|
384,623 |
|
|
|
337,456 |
|
Accumulated other comprehensive loss |
|
|
(31,890 |
) |
|
|
(49,422 |
) |
Treasury stock at cost |
|
|
(78,032 |
) |
|
|
(75,518 |
) |
Total stockholders’ equity |
|
|
525,955 |
|
|
|
464,835 |
|
Total liabilities and stockholders' equity |
|
$ |
847,809 |
|
|
$ |
724,617 |
|
|
|
|
|
|
|
QUANEX
BUILDING PRODUCTS CORPORATIONCONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOW(In
thousands)(Unaudited) |
|
|
|
|
|
Nine Months Ended July 31, |
|
2023 |
|
2022 |
Operating activities: |
|
|
|
Net income |
$ |
55,119 |
|
|
$ |
63,669 |
|
Adjustments to reconcile net income to cash provided by operating
activities: |
|
|
|
Depreciation and amortization |
|
31,672 |
|
|
|
30,554 |
|
Loss on the disposition of capital assets |
|
|
|
Stock-based compensation |
|
1,828 |
|
|
|
1,707 |
|
Deferred income tax |
|
177 |
|
|
|
505 |
|
Other, net |
|
2,423 |
|
|
|
2,647 |
|
Changes in assets and liabilities: |
|
|
|
Decrease (increase) in accounts receivable |
|
9,918 |
|
|
|
(5,306 |
) |
Decrease (increase) in inventory |
|
23,864 |
|
|
|
(48,280 |
) |
Increase in other current assets |
|
(439 |
) |
|
|
(824 |
) |
(Decrease) increase in accounts payable |
|
(15,471 |
) |
|
|
2,765 |
|
Decrease in accrued liabilities |
|
(5,152 |
) |
|
|
(4,721 |
) |
(Decrease) increase in income taxes payable |
|
(3,534 |
) |
|
|
7,522 |
|
Increase (decrease) in deferred pension benefits |
|
22 |
|
|
|
(239 |
) |
Increase in other long-term liabilities |
|
609 |
|
|
|
32 |
|
Other, net |
|
1,523 |
|
|
|
(177 |
) |
Cash
provided by operating activities |
|
102,559 |
|
|
|
49,854 |
|
Investing activities: |
|
|
|
Business acquisition |
|
(91,302 |
) |
|
|
- |
|
Capital expenditures |
|
(22,450 |
) |
|
|
(19,488 |
) |
Proceeds from disposition of capital assets |
|
183 |
|
|
|
134 |
|
Cash used
for investing activities |
|
(113,569 |
) |
|
|
(19,354 |
) |
Financing activities: |
|
|
|
Borrowings under credit facilities |
|
102,000 |
|
|
|
70,500 |
|
Repayments of credit facility borrowings |
|
(60,000 |
) |
|
|
(70,500 |
) |
Debt issuance costs |
|
- |
|
|
|
(1,210 |
) |
Repayments of other long-term debt |
|
(1,954 |
) |
|
|
(1,301 |
) |
Common stock dividends paid |
|
(7,952 |
) |
|
|
(7,916 |
) |
Issuance of common stock |
|
753 |
|
|
|
502 |
|
Payroll tax paid to settle shares forfeited upon vesting of
stock |
|
(567 |
) |
|
|
(1,412 |
) |
Purchase of treasury stock |
|
(5,593 |
) |
|
|
(6,600 |
) |
Cash
provided by (used for) financing activities |
|
26,687 |
|
|
|
(17,937 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
2,482 |
|
|
|
(2,594 |
) |
Decrease in
cash and cash equivalents |
|
18,159 |
|
|
|
9,969 |
|
Cash and
cash equivalents at beginning of period |
|
55,093 |
|
|
|
40,061 |
|
Cash and
cash equivalents at end of period |
$ |
73,252 |
|
|
$ |
50,030 |
|
|
|
|
|
|
QUANEX
BUILDING PRODUCTS CORPORATIONFREE CASH FLOW AND
NET DEBT 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, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Cash
provided by operating activities |
$64,099 |
|
$51,735 |
|
$102,559 |
|
$49,854 |
Capital
expenditures |
(7,376) |
|
(5,703) |
|
(22,450) |
|
(19,488) |
Free
Cash Flow |
$56,723 |
|
$46,032 |
|
$80,109 |
|
$30,366 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table reconciles the Company's Net Debt which is
defined as total debt principal of the Company plus finance lease
obligations minus cash. |
|
|
|
|
|
|
|
|
|
As of July 31, |
|
|
|
2023 |
|
2022 |
|
|
|
|
Revolving
credit facility |
$55,000 |
|
$38,000 |
|
|
|
|
Finance
lease obligations(1) |
55,792 |
|
20,105 |
|
|
|
|
Total
debt(2) |
110,792 |
|
58,105 |
|
|
|
|
Less: Cash
and cash equivalents |
73,252 |
|
50,030 |
|
|
|
|
Net
Debt |
$37,540 |
|
$8,075 |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes $52.9 million and $18.8 million in real estate lease
liabilities considered finance leases under U.S. GAAP as of July
31, 2023 and July 31, 2022, respectively. |
(2) Excludes outstanding letters of credit. |
|
|
|
|
|
|
|
|
|
QUANEX
BUILDING PRODUCTS CORPORATIONNON-GAAP FINANCIAL
MEASURE DISCLOSURELAST TWELVE MONTHS ADJUSTED
EBITDA RECONCILIATION(In thousands, except per share
data)(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Last Twelve Months Adjusted
EBITDA |
|
Three Months Ended July 31, 2023 |
|
Three Months Ended April 30, 2023 |
|
Three Months Ended January 31, 2023 |
|
Three Months Ended October 31, 2022 |
|
Total |
|
|
Reconciliation |
|
Reconciliation |
|
Reconciliation |
|
Reconciliation |
|
Reconciliation |
Net income as reported |
|
$ |
31,698 |
|
|
$ |
21,512 |
|
$ |
1,909 |
|
|
$ |
24,667 |
|
|
$ |
79,786 |
|
Income tax
expense |
|
|
4,099 |
|
|
|
5,551 |
|
|
453 |
|
|
|
3,329 |
|
|
|
13,432 |
|
Other,
net |
|
|
(402 |
) |
|
|
29 |
|
|
(218 |
) |
|
|
(136 |
) |
|
|
(727 |
) |
Interest
expense |
|
|
2,068 |
|
|
|
2,244 |
|
|
2,259 |
|
|
|
710 |
|
|
|
7,281 |
|
Depreciation
and amortization |
|
|
10,596 |
|
|
|
10,456 |
|
|
10,620 |
|
|
|
9,555 |
|
|
|
41,227 |
|
EBITDA |
|
|
48,059 |
|
|
|
39,792 |
|
|
15,023 |
|
|
|
38,125 |
|
|
|
140,999 |
|
Cost of
sales(1) |
|
|
- |
|
|
|
48 |
|
|
- |
|
|
|
- |
|
|
|
48 |
|
Selling,
general and administrative(1),(2) |
|
|
395 |
|
|
|
63 |
|
|
5,448 |
|
|
|
564 |
|
|
|
6,470 |
|
Adjusted
EBITDA |
|
$ |
48,454 |
|
|
$ |
39,903 |
|
$ |
20,471 |
|
|
$ |
38,689 |
|
|
$ |
147,517 |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Loss on damage to
manufacturing facilities caused by weather. |
(2) Transaction and
advisory fees. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QUANEX
BUILDING PRODUCTS CORPORATIONNON-GAAP FINANCIAL
MEASURE DISCLOSURE(In thousands, except per share
data)(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted Net Income and Adjusted
EPS |
|
Three Months EndedJuly 31, 2023 |
|
Three Months EndedJuly 31, 2022 |
|
Nine Months EndedJuly 31, 2023 |
|
Nine Months EndedJuly 31, 2022 |
|
|
|
Net Income |
|
Diluted EPS |
|
Net Income |
|
Diluted EPS |
|
Net Income |
|
Diluted EPS |
|
Net Income |
|
Diluted EPS |
|
Net income as reported |
|
$ |
31,698 |
|
|
$ |
0.96 |
|
|
$ |
25,908 |
|
|
$ |
0.78 |
|
|
$ |
55,119 |
|
|
$ |
1.67 |
|
|
$ |
63,669 |
|
|
$ |
1.91 |
|
|
Net income
reconciling items from below |
|
201 |
|
|
$ |
0.01 |
|
|
257 |
|
|
$ |
0.01 |
|
|
4,550 |
|
|
$ |
0.14 |
|
|
291 |
|
|
$ |
0.01 |
|
|
Adjusted net
income and adjusted EPS |
|
$ |
31,899 |
|
|
$ |
0.97 |
|
|
$ |
26,165 |
|
|
$ |
0.79 |
|
|
$ |
59,669 |
|
|
$ |
1.81 |
|
|
$ |
63,960 |
|
|
$ |
1.92 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted EBITDA |
|
Three Months EndedJuly 31, 2023 |
|
Three Months EndedJuly 31, 2022 |
|
Nine Months EndedJuly 31, 2023 |
|
Nine Months EndedJuly 31, 2022 |
|
|
|
Reconciliation |
|
|
|
|
Reconciliation |
|
|
|
|
Reconciliation |
|
|
|
|
Reconciliation |
|
|
|
|
Net income
as reported |
|
$ |
31,698 |
|
|
|
|
|
$ |
25,908 |
|
|
|
|
|
$ |
55,119 |
|
|
|
|
|
$ |
63,669 |
|
|
|
|
|
Income tax
expense |
|
4,099 |
|
|
|
|
|
7,801 |
|
|
|
|
|
10,103 |
|
|
|
|
|
18,098 |
|
|
|
|
|
Other,
net |
|
(402 |
) |
|
|
|
|
(398 |
) |
|
|
|
|
(591 |
) |
|
|
|
|
(905 |
) |
|
|
|
|
Interest
expense |
|
2,068 |
|
|
|
|
|
724 |
|
|
|
|
|
6,571 |
|
|
|
|
|
1,849 |
|
|
|
|
|
Depreciation
and amortization |
|
10,596 |
|
|
|
|
|
9,734 |
|
|
|
|
|
31,672 |
|
|
|
|
|
30,554 |
|
|
|
|
|
EBITDA |
|
48,059 |
|
|
|
|
|
43,769 |
|
|
|
|
|
102,874 |
|
|
|
|
|
113,265 |
|
|
|
|
|
EBITDA
reconciling items from below |
|
395 |
|
|
|
|
|
419 |
|
|
|
|
|
5,954 |
|
|
|
|
|
550 |
|
|
|
|
|
Adjusted
EBITDA |
|
$ |
48,454 |
|
|
|
|
|
$ |
44,188 |
|
|
|
|
|
$ |
108,828 |
|
|
|
|
|
$ |
113,815 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling Items |
|
Three Months EndedJuly 31, 2023 |
|
Three Months EndedJuly 31, 2022 |
|
Nine Months EndedJuly 31, 2023 |
|
Nine Months EndedJuly 31, 2022 |
|
|
|
Income Statement |
|
Reconciling Items |
|
Income Statement |
|
Reconciling Items |
|
Income Statement |
|
Reconciling Items |
|
Income Statement |
|
Reconciling Items |
|
Net
sales |
|
$ |
299,640 |
|
|
$ |
- |
|
|
$ |
324,037 |
|
|
$ |
- |
|
|
$ |
835,091 |
|
|
$ |
- |
|
|
$ |
913,970 |
|
|
$ |
- |
|
|
Cost of
sales |
|
221,065 |
|
|
- |
|
|
251,446 |
|
|
- |
|
|
637,586 |
|
|
(48 |
) |
(1) |
712,931 |
|
|
- |
|
|
Selling,
general and administrative |
|
30,516 |
|
|
(395 |
) |
(2) |
28,822 |
|
|
(419 |
) |
(2) |
94,631 |
|
|
(5,906 |
) |
(1),(2) |
87,774 |
|
|
(550 |
) |
(2) |
EBITDA |
|
48,059 |
|
|
395 |
|
|
43,769 |
|
|
419 |
|
|
102,874 |
|
|
5,954 |
|
|
113,265 |
|
|
550 |
|
|
Depreciation
and amortization |
|
10,596 |
|
|
- |
|
|
9,734 |
|
|
- |
|
|
31,672 |
|
|
- |
|
|
30,554 |
|
|
- |
|
|
Operating
income |
|
37,463 |
|
|
395 |
|
|
34,035 |
|
|
419 |
|
|
71,202 |
|
|
5,954 |
|
|
82,711 |
|
|
550 |
|
|
Interest
expense |
|
(2,068 |
) |
|
- |
|
|
(724 |
) |
|
- |
|
|
(6,571 |
) |
|
- |
|
|
(1,849 |
) |
|
- |
|
|
Other,
net |
|
402 |
|
|
(126 |
) |
(3) |
398 |
|
|
(82 |
) |
(3) |
591 |
|
|
(36 |
) |
(3) |
905 |
|
|
(164 |
) |
(3) |
Income
before income taxes |
|
35,797 |
|
|
269 |
|
|
33,709 |
|
|
337 |
|
|
65,222 |
|
|
5,918 |
|
|
81,767 |
|
|
386 |
|
|
Income tax
expense |
|
(4,099 |
) |
|
(68 |
) |
(4) |
(7,801 |
) |
|
(80 |
) |
(4) |
(10,103 |
) |
|
(1,368 |
) |
(4) |
(18,098 |
) |
|
(95 |
) |
(4) |
Net
income |
|
$ |
31,698 |
|
|
$ |
201 |
|
|
$ |
25,908 |
|
|
$ |
257 |
|
|
$ |
55,119 |
|
|
$ |
4,550 |
|
|
$ |
63,669 |
|
|
$ |
291 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share |
|
$ |
0.96 |
|
|
|
|
|
$ |
0.78 |
|
|
|
|
|
$ |
1.67 |
|
|
|
|
|
$ |
1.91 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Loss on damage to manufacturing facilities
caused by weather. |
(2) Transaction and advisory fees. |
(3) Foreign currency transaction gains. |
(4)Tax impact of net income reconciling
items. |
|
|
QUANEX
BUILDING PRODUCTS CORPORATIONSELECTED SEGMENT
DATA(In thousands)(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
This table provides
gross margin, operating (loss) income, 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, 2023 |
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
177,081 |
|
|
$ |
67,889 |
|
|
$ |
55,385 |
|
|
$ |
(715 |
) |
|
$ |
299,640 |
|
Cost of sales |
|
|
135,126 |
|
|
|
41,266 |
|
|
|
44,935 |
|
|
|
(262 |
) |
|
|
221,065 |
|
Gross Margin |
|
|
41,955 |
|
|
|
26,623 |
|
|
|
10,450 |
|
|
|
(453 |
) |
|
|
78,575 |
|
Gross Margin % |
|
|
23.7 |
% |
|
|
39.2 |
% |
|
|
18.9 |
% |
|
|
|
|
26.2 |
% |
Selling, general and administrative |
|
|
14,254 |
|
|
|
8,039 |
|
|
|
5,095 |
|
|
|
3,128 |
|
|
|
30,516 |
|
Depreciation and amortization |
|
|
5,033 |
|
|
|
2,434 |
|
|
|
3,084 |
|
|
|
45 |
|
|
|
10,596 |
|
Operating income (loss) |
|
|
22,668 |
|
|
|
16,150 |
|
|
|
2,271 |
|
|
|
(3,626 |
) |
|
|
37,463 |
|
Depreciation and amortization |
|
|
5,033 |
|
|
|
2,434 |
|
|
|
3,084 |
|
|
|
45 |
|
|
|
10,596 |
|
EBITDA |
|
|
27,701 |
|
|
|
18,584 |
|
|
|
5,355 |
|
|
|
(3,581 |
) |
|
|
48,059 |
|
Transaction and advisory fees |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
395 |
|
|
|
395 |
|
Adjusted EBITDA |
|
$ |
27,701 |
|
|
$ |
18,584 |
|
|
$ |
5,355 |
|
|
$ |
(3,186 |
) |
|
$ |
48,454 |
|
Adjusted EBITDA Margin % |
|
|
15.6 |
% |
|
|
27.4 |
% |
|
|
9.7 |
% |
|
|
|
|
16.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
Three months ended July 31, 2022 |
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
184,744 |
|
|
$ |
67,613 |
|
|
$ |
72,480 |
|
|
$ |
(800 |
) |
|
$ |
324,037 |
|
Cost of sales |
|
|
142,970 |
|
|
|
47,212 |
|
|
|
61,543 |
|
|
|
(279 |
) |
|
|
251,446 |
|
Gross Margin |
|
|
41,774 |
|
|
|
20,401 |
|
|
|
10,937 |
|
|
|
(521 |
) |
|
|
72,591 |
|
Gross Margin % |
|
|
22.6 |
% |
|
|
30.2 |
% |
|
|
15.1 |
% |
|
|
|
|
22.4 |
% |
Selling, general and administrative |
|
|
14,644 |
|
|
|
8,256 |
|
|
|
5,335 |
|
|
|
587 |
|
|
|
28,822 |
|
Depreciation and amortization |
|
|
4,044 |
|
|
|
2,327 |
|
|
|
3,273 |
|
|
|
90 |
|
|
|
9,734 |
|
Operating income (loss) |
|
|
23,086 |
|
|
|
9,818 |
|
|
|
2,329 |
|
|
|
(1,198 |
) |
|
|
34,035 |
|
Depreciation and amortization |
|
|
4,044 |
|
|
|
2,327 |
|
|
|
3,273 |
|
|
|
90 |
|
|
|
9,734 |
|
EBITDA |
|
|
27,130 |
|
|
|
12,145 |
|
|
|
5,602 |
|
|
|
(1,108 |
) |
|
|
43,769 |
|
Transaction and advisory fees |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
419 |
|
|
|
419 |
|
Adjusted EBITDA |
|
$ |
27,130 |
|
|
$ |
12,145 |
|
|
$ |
5,602 |
|
|
$ |
(689 |
) |
|
$ |
44,188 |
|
Adjusted EBITDA Margin % |
|
|
14.7 |
% |
|
|
18.0 |
% |
|
|
7.7 |
% |
|
|
|
|
13.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
Nine
months ended July 31, 2023 |
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
487,036 |
|
|
$ |
186,604 |
|
|
$ |
163,577 |
|
|
$ |
(2,126 |
) |
|
$ |
835,091 |
|
Cost of sales |
|
|
382,315 |
|
|
|
119,421 |
|
|
|
136,722 |
|
|
|
(872 |
) |
|
|
637,586 |
|
Gross Margin |
|
|
104,721 |
|
|
|
67,183 |
|
|
|
26,855 |
|
|
|
(1,254 |
) |
|
|
197,505 |
|
Gross Margin % |
|
|
21.5 |
% |
|
|
36.0 |
% |
|
|
16.4 |
% |
|
|
|
|
23.7 |
% |
Selling, general and administrative |
|
|
41,707 |
|
|
|
23,996 |
|
|
|
15,939 |
|
|
|
12,989 |
|
|
|
94,631 |
|
Depreciation and amortization |
|
|
15,328 |
|
|
|
7,135 |
|
|
|
8,988 |
|
|
|
221 |
|
|
|
31,672 |
|
Operating income (loss) |
|
|
47,686 |
|
|
|
36,052 |
|
|
|
1,928 |
|
|
|
(14,464 |
) |
|
|
71,202 |
|
Depreciation and amortization |
|
|
15,328 |
|
|
|
7,135 |
|
|
|
8,988 |
|
|
|
221 |
|
|
|
31,672 |
|
EBITDA |
|
|
63,014 |
|
|
|
43,187 |
|
|
|
10,916 |
|
|
|
(14,243 |
) |
|
|
102,874 |
|
Loss on damage to manufacturing facilities (Cost of sales) |
|
|
35 |
|
|
|
- |
|
|
|
13 |
|
|
|
- |
|
|
|
48 |
|
Loss on damage to manufacturing facilities (SG&A) |
|
|
- |
|
|
|
- |
|
|
|
200 |
|
|
|
- |
|
|
|
200 |
|
Transaction and advisory fees |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
5,706 |
|
|
|
5,706 |
|
Adjusted EBITDA |
|
$ |
63,049 |
|
|
$ |
43,187 |
|
|
$ |
11,129 |
|
|
$ |
(8,537 |
) |
|
$ |
108,828 |
|
Adjusted EBITDA Margin % |
|
|
12.9 |
% |
|
|
23.1 |
% |
|
|
6.8 |
% |
|
|
|
|
13.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
Nine
months ended July 31, 2022 |
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
509,283 |
|
|
$ |
199,954 |
|
|
$ |
207,711 |
|
|
$ |
(2,978 |
) |
|
$ |
913,970 |
|
Cost of sales |
|
|
396,505 |
|
|
|
138,147 |
|
|
|
179,791 |
|
|
|
(1,512 |
) |
|
|
712,931 |
|
Gross Margin |
|
|
112,778 |
|
|
|
61,807 |
|
|
|
27,920 |
|
|
|
(1,466 |
) |
|
|
201,039 |
|
Gross Margin % |
|
|
22.1 |
% |
|
|
30.9 |
% |
|
|
13.4 |
% |
|
|
|
|
22.0 |
% |
Selling, general and administrative |
|
|
43,099 |
|
|
|
24,160 |
|
|
|
15,823 |
|
|
|
4,692 |
|
|
|
87,774 |
|
Depreciation and amortization |
|
|
12,221 |
|
|
|
7,418 |
|
|
|
10,653 |
|
|
|
262 |
|
|
|
30,554 |
|
Operating income (loss) |
|
|
57,458 |
|
|
|
30,229 |
|
|
|
1,444 |
|
|
|
(6,420 |
) |
|
|
82,711 |
|
Depreciation and amortization |
|
|
12,221 |
|
|
|
7,418 |
|
|
|
10,653 |
|
|
|
262 |
|
|
|
30,554 |
|
EBITDA |
|
|
69,679 |
|
|
|
37,647 |
|
|
|
12,097 |
|
|
|
(6,158 |
) |
|
|
113,265 |
|
Transaction and advisory fees |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
550 |
|
|
|
550 |
|
Adjusted EBITDA |
|
$ |
69,679 |
|
|
$ |
37,647 |
|
|
$ |
12,097 |
|
|
$ |
(5,608 |
) |
|
$ |
113,815 |
|
Adjusted EBITDA Margin % |
|
|
13.7 |
% |
|
|
18.8 |
% |
|
|
5.8 |
% |
|
|
|
|
12.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
QUANEX
BUILDING PRODUCTS CORPORATIONSALES
ANALYSIS(In thousands)(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended July 31, |
|
Nine Months Ended July 31, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
NA Fenestration:(1) |
|
|
|
|
|
|
|
|
United States - fenestration |
$ |
138,090 |
|
|
$ |
162,215 |
|
|
$ |
379,613 |
|
|
$ |
447,425 |
|
|
International - fenestration |
|
8,542 |
|
|
|
10,722 |
|
|
|
22,019 |
|
|
|
30,952 |
|
|
United
States - non-fenestration |
|
26,423 |
|
|
|
8,324 |
|
|
|
73,823 |
|
|
|
22,117 |
|
|
International - non-fenestration |
|
4,026 |
|
|
|
3,483 |
|
|
|
11,581 |
|
|
|
8,789 |
|
|
|
$ |
177,081 |
|
|
$ |
184,744 |
|
|
$ |
487,036 |
|
|
$ |
509,283 |
|
EU Fenestration:(2) |
|
|
|
|
|
|
|
|
International - fenestration |
$ |
51,752 |
|
|
$ |
49,041 |
|
|
$ |
142,009 |
|
|
$ |
148,525 |
|
|
International - non-fenestration |
|
16,137 |
|
|
|
18,572 |
|
|
|
44,595 |
|
|
|
51,429 |
|
|
|
$ |
67,889 |
|
|
$ |
67,613 |
|
|
$ |
186,604 |
|
|
$ |
199,954 |
|
NA Cabinet Components: |
|
|
|
|
|
|
|
|
United
States - fenestration |
$ |
4,486 |
|
|
$ |
4,857 |
|
|
$ |
12,613 |
|
|
$ |
13,288 |
|
|
United
States - non-fenestration |
|
50,199 |
|
|
|
66,758 |
|
|
|
148,774 |
|
|
|
191,908 |
|
|
International - non-fenestration |
|
700 |
|
|
|
865 |
|
|
|
2,190 |
|
|
|
2,515 |
|
|
|
$ |
55,385 |
|
|
$ |
72,480 |
|
|
$ |
163,577 |
|
|
$ |
207,711 |
|
Unallocated Corporate & Other: |
|
|
|
|
|
|
|
|
Eliminations |
$ |
(715 |
) |
|
$ |
(800 |
) |
|
$ |
(2,126 |
) |
|
$ |
(2,978 |
) |
|
|
$ |
(715 |
) |
|
$ |
(800 |
) |
|
$ |
(2,126 |
) |
|
$ |
(2,978 |
) |
|
|
|
|
|
|
|
|
|
Net Sales |
$ |
299,640 |
|
|
$ |
324,037 |
|
|
$ |
835,091 |
|
|
$ |
913,970 |
|
|
|
|
|
|
|
|
|
|
(1) Includes the net
sales from the acquisition of LMI of $19.8 million and $54.0
million for the three and nine months ended July 31, 2023,
respectively. |
(2) Reflects an
increase of $2.2 million and a reduction of $8.6 million in revenue
associated with foreign currency exchange rate impacts for the
three and nine months ended July 31, 2023, respectively. |
|
|
|
|
|
|
|
|
|
Quanex (NYSE:NX)
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Quanex (NYSE:NX)
과거 데이터 주식 차트
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