More than $10 million in restructuring costs figured in American Woodmark's announcement today that its net loss deepened to $9.1 million in its fiscal third quarter ended Jan. 31. Sales rose 7.7% to $120 million at the cabinet maker, which sells to new home builders under the Timberlake Cabinetry brand and under other brand names to The Home Depot, Lowe's and kitchen/bath specialists.
Sales to the new construction business rose 30% in the period from the year before, more than offsetting a "modest decline" in its remodeling business, the Winchester, Va.-based company said in a statement. It didn't elaborate.
Gross profit rose 19.9% to $14.6 million, or 12.2% of net sales, up from a year-earlier 10.9% of sales. But most of that profit was offset by $10.3 million in restructuring charges vs. just $16,000 in the previous fiscal year's third quarter. In December, American Woodmark announced it would permanently close two manufacturing plants, put a previously closed plant up for sale, realign its retirement program, and freeze pension plans effect April 12. Those December announcements represent $6.3 million of the quarter's restructuring charges.
Free cash flow improved by $2.6 million in the quarter, rebounding from a negative $1.8 million in the November-January period of the previous fiscal year.
Net loss for the first nine months of fiscal 2012 totaled $14.8 million, an improvement from the $16.6 million net loss at that point in fiscal 2011, on a 15.6% gain in sales to $379.6 million.