American Woodmark Corp., manufacturer of Timberlake Cabinetry for the new-home construction market as well as private-label brands for The Home Depot and Lowe's, reported a net loss of $1.5 million in its fiscal fourth quarter ended April 30, roughly half the loss it incurred in the year-earlier quarter.
Net sales overall shrank 20% to $112.4 million. Sales in the fiscal fourth quarter related to new construction increased by 20% from the year-earlier period, while "remodeling sales"--presumably related to sales of American Woodmark products sold by the big boxes--""declined in excess of the company's overall rate of decline." It didn't elaborate.
Gross profit in the quarter slipped to 16.5% of net sales from 19.6% in the February-April 2009 period, the company said in its June 4 announcement. Selling, general, and administrative costs increase to 19.9% of net sales from 16.6%.
For the fiscal year ended April 30, American Woodmark posted a net loss of $22.3 million, roughly seven times worse than its $3.2 million loss in fiscal 2009. Sales for the year dropped 26% to $406.5 million.
Gross profit dropped to 12.0% from a year-earlier 16.4%. "The decline in gross profit margin during the fourth quarter and entire fiscal year of 2010 primarily reflected the unfavorable impact of inefficiencies in direct labor and manufacturing overhead costs stemming from lower sales volumes," the company said. " Partly offsetting these adverse factors were favorable impacts from lower fuel and material costs, as well as reduced manufacturing overhead costs related to the plant closures.
The Winchester, Va.-based company launched several cost-cutting initiatives between February and April 2009. They included the permanent closure of two manufacturing plants, suspension of operations at a third plance, and a cut in salaried personnel.
The Company ended fiscal year 2010 with cash, cash equivalents and restricted cash of $67.7 million, and a debt-to-capital ratio of 12.7%.
American Woodmark products are sold under that brand name in The Home Depot, as Shenandoah and Potomac cabinetry in Lowe's stores, and as Timberlake Cabinetry in the new home construction market.
