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Quanex Building Products Announces Second Quarter 2021 Results and Increases Full Year 2021 Guidance Again

Robust Revenue Growth Realized Across All Operating Segments
Significant Margin Expansion in NA and EU Fenestration Segments
Strong Balance Sheet
Repaid $25 Million of Bank Debt
Positive Outlook Remains Intact

HOUSTON, June 03, 2021 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation (NYSE:NX) (“Quanex” or the “Company”) today announced its results for the three months ended April 30, 2021.

The Company reported the following selected financial results:

      Three Months Ended April 30,   Six Months Ended April 30,
($ in millions, except per share data)       2021       2020       2021       2020  
Net Sales     $270.4     $187.5     $500.5     $384.1  
Gross Margin     $61.9     $37.7     $115.6     $76.9  
Gross Margin %       22.9%       20.1%       23.1%       20.0%  
Net Income     $14.5     $5.5     $22.4     $5.5  
Diluted EPS     $0.43     $0.17     $0.67     $0.17  
                   
Adjusted Net Income     $14.6     $6.4     $23.6     $7.6  
Adjusted Diluted EPS     $0.43     $0.19     $0.70     $0.23  
Adjusted EBITDA     $32.2     $21.8     $56.6     $37.5  
Adjusted EBITDA Margin %       11.9%       11.6%       11.3%       9.8%  
                   
Cash Provided by Operating Activities     $32.4     $6.1     $29.0     $2.5  
Free Cash Flow     $27.8       ($0.9)     $19.2       ($13.8)  

 

(See Non-GAAP Terminology Definitions and Disclaimers section, Non-GAAP Financial Measure Disclosure table Selected Segment Data table and Free Cash Flow Reconciliation table for additional information)

George Wilson, President and Chief Executive Officer, commented, “Demand for our products remained high throughout the second quarter of 2021 and as a result we posted another very solid quarter. On a consolidated basis, net sales increased by 44.2% and Adjusted EBITDA margin improved by approximately 30 basis points year-over-year as compared to the second quarter of 2020. Our balance sheet is strong, and we were able to repay $25.0 million in bank debt during the quarter while also repurchasing approximately $2.0 million of our common stock. We will continue to focus on generating cash and paying down debt. Despite inflationary headwinds and labor challenges, we remain optimistic on the global economic outlook and overall trends within the residential housing industry. Our business is performing well, and we are confident in our ability to continue creating value for shareholders.” (See Non-GAAP Terminology Definitions and Disclaimers section for additional information)

Second Quarter 2021 Results Summary   

The robust net sales growth during the three months ended April 30, 2021 was mainly the result of increased demand for the Company’s products across all product lines and operating segments coupled with increased pricing mostly related to raw material cost inflation. More specifically, Quanex posted net sales growth of 34.6% in its North American Fenestration segment, 25.5% in its North American Cabinet Components segment and 92.1% in its European Fenestration segment, excluding the foreign exchange impact. As a reminder, both of the Company’s manufacturing facilities in the U.K. were shut down in late March of 2020 and did not resume operations until mid-to-late May last year. (See Sales Analysis table for additional information)

The increase in earnings for the second quarter of 2021 was mostly due to higher volumes and improved operating leverage. The increase in earnings was somewhat offset by inflationary pressures and an increase in selling, general and administrative expenses, which was largely attributable to more normalized medical costs combined with an increase in stock-based compensation expense that resulted from the shareholder value created by the further appreciation of Quanex’s stock price during the period.  

Balance Sheet & Liquidity Update

As of April 30, 2021, Quanex had total debt of $88.7 million and its leverage ratio of Net Debt to LTM Adjusted EBITDA improved to 0.3x. (See Non-GAAP Terminology Definitions and Disclaimers section and Net Debt and LTM Adjusted EBITDA reconciliation tables for additional information)

The Company’s liquidity increased to $296.8 million as of April 30, 2021, consisting of $49.3 million in cash on hand plus availability under its Senior Secured Revolving Credit Facility due 2023, less letters of credit outstanding.

Share Repurchases

Quanex’s Board of Directors authorized a $60 million share repurchase program in September of 2018. Repurchases under this program will be made in open market transactions or privately negotiated transactions, subject to market conditions, applicable legal requirements, and other relevant factors. The program does not have an expiration date or a limit on the number of shares that may be repurchased. The Company repurchased 80,556 shares of common stock for approximately $2.0 million at an average price of $25.33 per share during the three months ended April 30, 2021. As of April 30, 2021, approximately $7.2 million remained under the existing share repurchase authorization.   

Outlook        

George Wilson, President and Chief Executive Officer, stated, “Our outlook for the balance of the year remains positive and we continue to be optimistic about the economic recovery. We do anticipate ongoing inflationary pressure and challenges with our supply chain and labor. However, based on our strong first half results, ongoing conversations with our customers and the latest macroeconomic indicators for the residential housing industry, we are again raising our expectations for the year. We now expect approximately 20% sales growth in our North American Fenestration segment, approximately 15% sales growth in our North American Cabinet Components segment, and approximately 40% sales growth in our European Fenestration segment. In summary, on a consolidated basis, we now believe we can achieve net sales of approximately $1.04 billion to $1.06 billion, which we expect will generate approximately $125 million to $130 million in Adjusted EBITDA* in fiscal 2021.”

*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 scheduled a conference call for Friday, June 4, 2021, at 11:00 a.m. ET (10:00 a.m. CT). To participate in the conference call dial (877) 388-2139 for domestic callers and (541) 797-2983 for international callers, in both cases using the conference passcode 3483342, and ask for the Quanex call a few minutes prior to the start time. A link to the live audio webcast will also be available on the Company’s website at http://www.quanex.com in the Investors section under Presentations & Events. A telephonic replay of the call will be available approximately two hours after the live broadcast ends and will be accessible through June 11, 2021. To access the replay dial (855) 859-2056 for domestic callers and (404) 537-3406 for international callers, in both cases referencing conference passcode 3483342.  

About Quanex

Quanex Building Products Corporation is an industry-leading manufacturer of components sold to Original Equipment Manufacturers (OEMs) in the building products industry.Quanex designs and produces energy-efficient fenestration products in addition to kitchen and bath cabinet components.   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.   Free Cash Flow is measured before application of certain contractual commitments (including capital lease obligations), and accordingly is not a true measure of Quanex’s residual cash flow available for discretionary expenditures. The Company believes that the presented non-GAAP measures provide a consistent basis for comparison between periods and will assist investors in understanding Quanex’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. The Company 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, 2020, 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.

 

QUANEX BUILDING PRODUCTS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)

    Three Months Ended April 30,   Six Months Ended April 30,  
      2021       2020       2021       2020    
                   
Net sales   $ 270,357     $ 187,475     $ 500,504     $ 384,072    
Cost of sales     208,460       149,732       384,857       307,159    
Selling, general and administrative     29,672       16,713       60,533       40,845    
Restructuring charges     -       251       39       404    
Depreciation and amortization     10,845       11,886       21,860       24,791    
Operating income     21,380       8,893       33,215       10,873    
Interest expense     (640 )     (1,563 )     (1,391 )     (3,145 )  
Other, net     265       300       457       336    
Income before income taxes     21,005       7,630       32,281       8,064    
Income tax expense     (6,454 )     (2,129 )     (9,878 )     (2,553 )  
Net income   $ 14,551     $ 5,501     $ 22,403     $ 5,511    
                   
Earnings per common share, basic   $ 0.44     $ 0.17     $ 0.68     $ 0.17    
Earnings per common share, diluted   $ 0.43     $ 0.17     $ 0.67     $ 0.17    
                   
Weighted average common shares outstanding:                  
Basic     33,355       32,676       33,110       32,770    
Diluted     33,637       32,793       33,444       32,907    
                   
Cash dividends per share   $ 0.08     $ 0.08     $ 0.16     $ 0.16    
                   

 

QUANEX BUILDING PRODUCTS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

    April 30, 2021   October 31, 2020
ASSETS        
Current assets:        
Cash and cash equivalents   $ 49,258     $ 51,621  
Accounts receivable, net     96,521       88,287  
Inventories, net     80,365       61,181  
Prepaid and other current assets     8,361       6,217  
Total current assets     234,505       207,306  
Property, plant and equipment, net     178,466       184,104  
Operating lease right-of-use assets     56,424       51,824  
Goodwill     150,302       146,154  
Intangible assets, net     88,850       93,068  
Other assets     7,025       9,129  
Total assets   $ 715,572     $ 691,585  
         
LIABILITIES AND STOCKHOLDERS' EQUITY        
Current liabilities:        
Accounts payable   $ 83,081     $ 77,335  
Accrued liabilities     41,207       38,289  
Income taxes payable     2,463       6,465  
Current maturities of long-term debt     745       692  
Current operating lease liabilities     8,226       7,459  
Total current liabilities     135,722       130,240  
Long-term debt     87,195       116,728  
Noncurrent operating lease liabilities     48,989       44,873  
Deferred pension and postretirement benefits     10,819       10,923  
Deferred income taxes     22,078       19,116  
Other liabilities     15,672       13,946  
Total liabilities     320,475       335,826  
Stockholders’ equity:        
Common stock     373       373  
Additional paid-in-capital     253,147       253,458  
Retained earnings     230,590       213,517  
Accumulated other comprehensive loss     (23,392 )     (33,024 )
Treasury stock at cost     (65,621 )     (78,565 )
Total stockholders’ equity     395,097       355,759  
Total liabilities and stockholders' equity   $ 715,572     $ 691,585  
         

 

QUANEX BUILDING PRODUCTS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(In thousands)
(Unaudited)

  Six Months Ended April 30,
    2021       2020  
Operating activities:      
Net income $ 22,403     $ 5,511  
Adjustments to reconcile net income to cash provided by operating activities:      
Depreciation and amortization   21,860       24,791  
Stock-based compensation   970       86  
Deferred income tax   2,339       1,194  
Other, net   5,049       463  
Changes in assets and liabilities:      
(Increase) decrease in accounts receivable   (6,726 )     14,682  
Increase in inventory   (18,265 )     (8,363 )
Increase in other current assets   (2,013 )     (559 )
Increase (decrease) in accounts payable   5,584       (16,807 )
Increase (decrease) in accrued liabilities   994       (13,673 )
Decrease in income taxes payable   (4,071 )     (4,052 )
(Decrease) increase in deferred pension and postretirement benefits   (104 )     562  
Increase (decrease) in other long-term liabilities   642       (787 )
Other, net   298       (576 )
Cash provided by operating activities   28,960       2,472  
Investing activities:      
Capital expenditures   (9,799 )     (16,313 )
Proceeds from disposition of capital assets   1,665       33  
Cash used for investing activities   (8,134 )     (16,280 )
Financing activities:      
Borrowings under credit facilities   -       114,500  
Repayments of credit facility borrowings   (30,000 )     (41,000 )
Repayments of other long-term debt   (605 )     (505 )
Common stock dividends paid   (5,330 )     (5,287 )
Issuance of common stock   16,123       2,954  
Payroll tax paid to settle shares forfeited upon vesting of stock   (492 )     (454 )
Purchase of treasury stock   (3,968 )     (6,693 )
Cash (used for) provided by financing activities   (24,272 )     63,515  
Effect of exchange rate changes on cash and cash equivalents   1,083       (323 )
(Decrease) increase in cash and cash equivalents   (2,363 )     49,384  
Cash and cash equivalents at beginning of period   51,621       30,868  
Cash and cash equivalents at end of period $ 49,258     $ 80,252  
       

 

QUANEX BUILDING PRODUCTS CORPORATION
FREE CASH FLOW AND NET DEBT RECONCILIATIONS
(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 April 30,   Six Months Ended April 30,  
      2021   2020   2021   2020  
Cash provided by operating activities     32,355   $6,129   28,960   $2,472  
Capital expenditures     (4,553)   (7,001)   (9,799)   (16,313)  
Free Cash Flow     $27,802   ($872)   $19,161   ($13,841)  
                     
                     
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 April 30,      
      2021   2020          
Revolving Credit Facility     $73,000   $216,000          
Finance Lease Obligations     15,689   15,416          
Total Debt (1)     88,689   231,416          
Less: Cash and cash equivalents     49,258   80,252          
Net Debt     $39,431   $151,164          
                     
(1) Excludes outstanding letters of credit.                    
                     

 

QUANEX BUILDING PRODUCTS CORPORATION
NON-GAAP FINANCIAL MEASURE DISCLOSURE
(In thousands, except per share data)
(Unaudited)

Reconciliation of Adjusted Net Income and Adjusted EPS   Three Months Ended   Three Months Ended   Six Months Ended   Six Months Ended  
  April 30, 2021   April 30, 2020   April 30, 2021   April 30, 2020  
    Net Income   Diluted EPS   Net Income   Diluted EPS   Net Income   Diluted EPS   Net Loss   Diluted EPS  
Net income as reported   $ 14,551   $ 0.43   $ 5,501   $ 0.17   $ 22,403   $ 0.67   $ 5,511   $ 0.17  
Reconciling items from below   3   0.00   890   0.02   1,174   0.03   2,106   0.06  
Adjusted net income and adjusted EPS   $ 14,554   $ 0.43   $ 6,391   $ 0.19   $ 23,577   $ 0.70   $ 7,617   $ 0.23  
                                   
Reconciliation of Adjusted EBITDA   Three Months Ended
April 30, 2021
  Three Months Ended
April 30, 2020
  Six Months Ended
April 30, 2021
  Six Months Ended
April 30, 2020
 
    Reconciliation       Reconciliation       Reconciliation       Reconciliation      
Net income as reported   $ 14,551       $ 5,501       $ 22,403       $ 5,511      
Income tax expense   6,454       2,129       9,878       2,553      
Other, net   (265)       (300)       (457)       (336)      
Interest expense   640       1,563       1,391       3,145      
Depreciation and amortization   10,845       11,886       21,860       24,791      
EBITDA   32,225       20,779       55,075       35,664      
Reconciling items from below   -       1,031       1,478       1,802      
Adjusted EBITDA   $ 32,225       $ 21,810       $ 56,553       $ 37,466      
                                   
Reconciling Items   Three Months Ended
April 30, 2021
  Three Months Ended
April 30, 2020
  Six Months Ended
April 30, 2021
  Six Months Ended
April 30, 2020
 
    Income Statement   Reconciling Items   Income Statement   Reconciling Items   Income Statement   Reconciling Items   Income Statement   Reconciling Items  
Net sales   $ 270,357   -   $ 187,475   $  -   $ 500,504   $  -   $ 384,072   $ -  
Cost of sales   208,460   -   149,732   -   384,857   -   307,159   -  
Selling, general and administrative   29,672   -   16,713   (780) (1) 60,533   (1,439)   40,845   (1,398) (1)
Restructuring charges   -   -   251   (251) (2) 39   (39) (2) 404   (404) (2)
EBITDA   32,225   -   20,779   1,031   55,075   1,478   35,664   1,802  
Depreciation and amortization   10,845   -   11,886   (237) (3) 21,860   -   24,791   (968) (3)
Operating income   21,380   -   8,893   1,268   33,215   1,478   10,873   2,770  
Interest expense   (640)   -   (1,563)   -   (1,391)   -   (3,145)   -  
Other, net   265   4 (4) 300   (128) (4) 457   82 (4) 336   (68) (4)
Income before income taxes   21,005   4   7,630   1,140   32,281   1,560   8,064   2,702  
Income tax expense   (6,454)   (1) (5) (2,129)   (250) (5) (9,878)   (386) (5) (2,553)   (596) (5)
Net income   $ 14,551   $ 3   $ 5,501   $ 890   $ 22,403   $ 1,174   $ 5,511   $ 2,106  
                                   
Diluted earnings per share   $ 0.43       $ 0.17       $ 0.67       $ 0.17      
                                   
                                   
(1) Transaction and advisory fees, $1.4 million related to the loss on a sale of a plant in the six months ended April 30, 2021, $0.8 million and $1.3 million related to executive severance charges in the three and six months ended April 30, 2020, respectively.
(2) Restructuring charges related to the closure of manufacturing plant facilities.  
(3) Accelerated depreciation related to the closure of a North American Cabinet Components plant.  
(4) Foreign currency transaction (losses) gains.  
(5) Impact on a with and without basis.  
                                   

 

QUANEX BUILDING PRODUCTS CORPORATION
NON-GAAP FINANCIAL MEASURE DISCLOSURE
(In thousands)
(Unaudited)

                     
Reconciliation of Last Twelve Months Adjusted EBITDA   Three Months Ended April 30, 2021   Three Months Ended January 31, 2021   Three Months Ended October 31, 2020   Three Months Ended July 31, 2020   Total
    Reconciliation   Reconciliation   Reconciliation   Reconciliation   Reconciliation
Net income as reported   $ 14,551     $ 7,852     $ 22,152     $ 10,833   $ 55,388  
Income tax expense     6,454       3,424       4,906       4,345     19,129  
Other, net     (265 )     (192 )     (164 )     220     (401 )
Interest expense     640       751       935       1,165     3,491  
Depreciation and amortization     10,845       11,015       11,378       11,060     44,298  
EBITDA     32,225       22,850       39,207       27,623     121,905  
Selling, general and administrative (1)     -       1,439       -       -     1,439  
Restructuring charges (2)     -       39       145       73     257  
Adjusted EBITDA   $ 32,225     $ 24,328     $ 39,352     $ 27,696   $ 123,601  
                     
(1) Transaction and advisory fees, loss on the sale of a plant, and executive severance charges.
(2) Restructuring charges relate to the closure of manufacturing plant facilities.
                     

 

QUANEX BUILDING PRODUCTS CORPORATION
SELECTED 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 April 30, 2021                    
Net sales   $ 146,143     $ 61,657     $ 63,562     $ (1,005 )   $ 270,357  
Cost of sales     112,368       41,361       55,162       (431 )     208,460  
Gross Margin     33,775       20,296       8,400       (574 )     61,897  
Gross Margin %     23.1 %     32.9 %     13.2 %         22.9 %
Selling, general and administrative     13,146       7,439       5,379       3,708       29,672  
Depreciation and amortization     4,846       2,607       3,305       87       10,845  
Operating income (loss)     15,783       10,250       (284 )     (4,369 )     21,380  
Depreciation and amortization     4,846       2,607       3,305       87       10,845  
EBITDA     20,629       12,857       3,021       (4,282 )     32,225  
Adjusted EBITDA   $ 20,629     $ 12,857     $ 3,021     $ (4,282 )   $ 32,225  
Adjusted EBITDA Margin %     14.1 %     20.9 %     4.8 %         11.9 %
                     
Three months ended April 30, 2020                    
Net sales   $ 108,593     $ 29,200     $ 50,664     $ (982 )   $ 187,475  
Cost of sales     85,153       20,966       44,198       (585 )     149,732  
Gross Margin     23,440       8,234       6,466       (397 )     37,743  
Gross Margin %     21.6 %     28.2 %     12.8 %         20.1 %
Selling, general and administrative     9,985       5,292       3,981       (2,545 )     16,713  
Restructuring charges     66       -       185       -       251  
Depreciation and amortization     5,961       2,330       3,474       121       11,886  
Operating income (loss)     7,428       612       (1,174 )     2,027       8,893  
Depreciation and amortization     5,961       2,330       3,474       121       11,886  
EBITDA     13,389       2,942       2,300       2,148       20,779  
Executive severance charges     -       -       -       780       780  
Restructuring charges     66       -       185       -       251  
Adjusted EBITDA   $ 13,455     $ 2,942     $ 2,485     $ 2,928     $ 21,810  
Adjusted EBITDA Margin %     12.4 %     10.1 %     4.9 %         11.6 %
                     
Six months ended April 30, 2021                    
Net sales   $ 274,259     $ 110,748     $ 117,556     $ (2,059 )   $ 500,504  
Cost of sales     211,761       73,152       101,036       (1,092 )     384,857  
Gross Margin     62,498       37,596       16,520       (967 )     115,647  
Gross Margin %     22.8 %     33.9 %     14.1 %         23.1 %
Selling, general and administrative     25,516       14,034       10,242       10,741       60,533  
Restructuring charges     39       -       -       -       39  
Depreciation and amortization     9,957       5,125       6,575       203       21,860  
Operating income (loss)     26,986       18,437       (297 )     (11,911 )     33,215  
Depreciation and amortization     9,957       5,125       6,575       203       21,860  
EBITDA     36,943       23,562       6,278       (11,708 )     55,075  
Loss on sale of plant     -       -       -       1,439       1,439  
Restructuring charges     39       -       -       -       39  
Adjusted EBITDA   $ 36,982     $ 23,562     $ 6,278     $ (10,269 )   $ 56,553  
Adjusted EBITDA Margin %     13.5 %     21.3 %     5.3 %         11.3 %
                     
Six months ended April 30, 2020                    
Net sales   $ 219,045     $ 65,966     $ 100,708     $ (1,647 )   $ 384,072  
Cost of sales     173,850       46,210       88,040       (941 )     307,159  
Gross Margin     45,195       19,756       12,668       (706 )     76,913  
Gross Margin %     20.6 %     29.9 %     12.6 %         20.0 %
Selling, general and administrative     23,040       11,242       8,834       (2,271 )     40,845  
Restructuring charges     157       -       247       -       404  
Depreciation and amortization     12,940       4,738       6,875       238       24,791  
Operating income (loss)     9,058       3,776       (3,288 )     1,327       10,873  
Depreciation and amortization     12,940       4,738       6,875       238       24,791  
EBITDA     21,998       8,514       3,587       1,565       35,664  
Transaction and advisory fees     -       -       -       55       55  
Executive severance charges     -       -       -       1,343       1,343  
Restructuring charges     157       -       247       -       404  
Adjusted EBITDA   $ 22,155     $ 8,514     $ 3,834     $ 2,963     $ 37,466  
Adjusted EBITDA Margin %     10.1 %     12.9 %     3.8 %         9.8 %
                     

 

QUANEX BUILDING PRODUCTS CORPORATION
SALES ANALYSIS
(In thousands)
(Unaudited)

    Three Months Ended   Six Months Ended
    April 30, 2021   April 30, 2020   April 30, 2021   April 30, 2020
                 
NA Fenestration:              
  United States - fenestration $ 128,218     $ 95,791     $ 240,518     $ 192,638  
  International - fenestration   8,397       6,153       16,175       12,587  
  United States - non-fenestration   6,293       4,372       11,690       8,935  
  International - non-fenestration   3,235       2,277       5,876       4,885  
    $ 146,143     $ 108,593     $ 274,259     $ 219,045  
EU Fenestration (1):              
  International - fenestration $ 50,835     $ 24,865     $ 92,189     $ 55,829  
  International - non-fenestration   10,822       4,335       18,559       10,137  
    $ 61,657     $ 29,200     $ 110,748     $ 65,966  
NA Cabinet Components:              
  United States - fenestration $ 3,497     $ 2,647     $ 6,471     $ 5,795  
  United States - non-fenestration   60,388       47,540       110,890       93,989  
  International - non-fenestration   (323 )     477       195       924  
    $ 63,562     $ 50,664     $ 117,556     $ 100,708  
Unallocated Corporate & Other:              
  Eliminations $ (1,005 )   $ (982 )   $ (2,059 )   $ (1,647 )
    $ (1,005 )   $ (982 )   $ (2,059 )   $ (1,647 )
                 
Net Sales $ 270,357     $ 187,475     $ 500,504     $ 384,072  
                 
(1) Reflects increase of $2.9 million and $4.8 million in revenue associated with foreign currency exchange rate impacts for the three and six months ended April 30, 2021, respectively.

 

 

 

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Source: Quanex Building Products Corporation