American Woodmark posted a first-quarter gain of $1 million, excluding restructuring charges, to recover from a $2.7 million loss a year ago and a nearly $6 million loss during 4Q 2012, the company announced Tuesday. Yet $500,000 in net-of-tax restructuring costs related to the permanent closure of two plants in April and May dropped net earnings to $600,000.
Sales at the Winchester, Va.-based cabinet and vanity maker , brands include Shenandoah Cabinetry, Timberlake Cabinetry, and Waypoint Living Spaces, rose 13% during the first quarter from a year ago to $148.2 million. Gains in new construction businesses topped 40% while remodeling sales were consistent over the previous quarter, the company said. Gross profit for the quarter nudged upward to 14.9% from 14% of sales a year ago thanks to lower fixed overhead costs resulting from the plant closures and higher sales.
The restructuring also contributed to a $5.6 million loss in free cash flow (operating income net cash used for investing activities) as compared to a $2.1 million gain a year ago.