Quanex Building Products Announces Third Quarter 2016 Results
Margin Expansion Continues
Debt Refinancing Complete
Third Quarter 2016 Highlights
- Net sales increased 38% to
$248.1 million compared to$180.2 million in Q3 2015 - Loss from continuing operations of
$4.0 million , driven largely by interest expense related to the debt refinancing, compared to income from continuing operations of$6.5 million in Q3 2015 - Adjusted EBITDA increased 32% to
$33.1 million versus$25.1 million in Q3 2015 - Debt refinancing complete, significantly reducing future annual interest expense
- Year-to-date cash provided by operating activities increased 78% to
$49.1 million compared to$27.5 million during the same period last year
Third Quarter 2016 Results Summary
Three Months Ended July 31, 2016 | Three Months Ended July 31, 2015 | |||||||||||||||||||||||
(In thousands, except per share data) | Results Before Adjustments |
Adjustments | Adjusted Results | Results Before Adjustments |
Adjustments | Adjusted Results | ||||||||||||||||||
Net sales | $ | 248,085 | $ | - | $ | 248,085 | $ | 180,206 | $ | - | $ | 180,206 | ||||||||||||
Cost of sales (1) | 186,631 | (67 | ) | 186,564 | 136,853 | (2,930 | ) | 133,923 | ||||||||||||||||
Selling, general and administrative (2) | 28,551 | (109 | ) | 28,442 | 25,023 | (3,824 | ) | 21,199 | ||||||||||||||||
EBITDA | 32,903 | 176 | 33,079 | 18,330 | 6,754 | 25,084 | ||||||||||||||||||
Depreciation and amortization | 12,973 | - | 12,973 | 8,502 | - | 8,502 | ||||||||||||||||||
Operating income | 19,930 | 176 | 20,106 | 9,828 | 6,754 | 16,582 | ||||||||||||||||||
Interest (expense) benefit (3) | (22,200 | ) | 16,677 | (5,523 | ) | (338 | ) | - | (338 | ) | ||||||||||||||
Other, net (4) | (2,523 | ) | 2,239 | (284 | ) | 566 | (492 | ) | 74 | |||||||||||||||
(Loss) income before income taxes | (4,793 | ) | 19,092 | 14,299 | 10,056 | 6,262 | 16,318 | |||||||||||||||||
Income tax benefit (expense) (5) | 817 | (4,629 | ) | (3,812 | ) | (3,585 | ) | (1,648 | ) | (5,233 | ) | |||||||||||||
(Loss) income from continuing operations | $ | (3,976 | ) | $ | 14,463 | $ | 10,487 | $ | 6,471 | $ | 4,614 | $ | 11,085 | |||||||||||
Diluted earnings per share from continuing operations (6) | $ | (0.12 | ) | $ | 0.30 | $ | 0.19 | $ | 0.32 | |||||||||||||||
(1) Cost of sales adjustments relate solely to purchase price accounting inventory step-up impact from HL Plastics acquisition. | ||||||||||||||||||||||||
(2) Selling, general and administrative adjustments are for acquisition related transaction costs. | ||||||||||||||||||||||||
(3) Interest expense adjustments relate to write off of deferred loan costs, unamortized original issuance discount, and prepayment call premium related to debt refinance. | ||||||||||||||||||||||||
(4) Other, net adjustments relate to foreign currency transaction gains (losses). | ||||||||||||||||||||||||
(5) Effective tax rate reflects impacts of adjustments on a with and without basis. | ||||||||||||||||||||||||
(6) Adjusted EPS is calculated using diluted shares outstanding of 34.5 million shares for three months ended July 31, 2016. | ||||||||||||||||||||||||
Quanex reported net sales of
Adjusted EBITDA increased to
As of
On
Recent Events
The Company’s Board of Directors declared a quarterly cash dividend of
Conference Call and Webcast Information
The Company has scheduled a conference call for
About Quanex
For more information contact
Non-GAAP Terminology Definitions and Disclaimers
Each of the Non-GAAP measures discussed in this Press Release are defined below. More information and reconciliations related to each of these measures can be found in the tables that accompany this Press Release.
EBITDA for each reported period is defined as net income or loss before interest, taxes, depreciation and amortization and other, net.
Adjusted EBITDA for each reported period is defined as EBITDA excluding transaction costs and purchase price accounting adjustments related to inventory step-ups.
LTM Pro Forma Adjusted EBITDA is defined as Adjusted EBITDA for the past twelve months, assuming that the acquisitions of
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, future operating results of Quanex, the future financial condition of Quanex, future uses of cash and other expenditures, expenses and tax rates, expectations relating to the Company’s industry, and Quanex’s future growth, including any guidance discussed in this press release. Guidance is a forward-looking estimate of performance and may not be indicative of actual results. The statements and guidance set forth in this release are based on current expectations. Actual results or events may differ materially from this release. Factors that could impact future results may include, without limitation, the effect of both domestic and global economic conditions, the impact of competitive products and pricing, the availability and cost of raw materials, and customer demand. For a more complete discussion of factors that may affect the Company’s future performance, please refer to the Company’s Annual Report on Form 10-K for the fiscal year ended
QUANEX BUILDING PRODUCTS CORPORATION | |||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) | |||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
(Unaudited) |
|||||||||||||||||
Three Months Ended July 31, | Nine Months Ended July 31, | ||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||
Net sales | $ | 248,085 | $ | 180,206 | $ | 679,013 | $ | 450,069 | |||||||||
Cost of sales | 186,631 | 136,853 | 522,476 | 353,469 | |||||||||||||
Selling, general and administrative | 28,551 | 25,023 | 88,430 | 64,157 | |||||||||||||
Depreciation and amortization | 12,973 | 8,502 | 39,759 | 24,541 | |||||||||||||
Operating income | 19,930 | 9,828 | 28,348 | 7,902 | |||||||||||||
Interest expense | (22,200 | ) | (338 | ) | (34,324 | ) | (624 | ) | |||||||||
Other, net | (2,523 | ) | 566 | (4,036 | ) | 300 | |||||||||||
(Loss) income before income taxes | (4,793 | ) | 10,056 | (10,012 | ) | 7,578 | |||||||||||
Income tax benefit (expense) | 817 | (3,585 | ) | 2,722 | (1,907 | ) | |||||||||||
(Loss) income from continuing operations | (3,976 | ) | 6,471 | (7,290 | ) | 5,671 | |||||||||||
Income from discontinued operations, net of taxes | - | 456 | - | 479 | |||||||||||||
Net (loss) income | $ | (3,976 | ) | $ | 6,927 | $ | (7,290 | ) | $ | 6,150 | |||||||
(Loss) Income per common share: | |||||||||||||||||
From continuing operations | $ | (0.12 | ) | $ | 0.20 | $ | (0.22 | ) | $ | 0.17 | |||||||
From discontinued operations | - | 0.01 | - | 0.01 | |||||||||||||
(Loss) income per common share, basic | $ | (0.12 | ) | $ | 0.21 | $ | (0.22 | ) | $ | 0.18 | |||||||
Diluted (loss) income per common share: | |||||||||||||||||
From continuing operations | $ | (0.12 | ) | $ | 0.19 | $ | (0.22 | ) | $ | 0.17 | |||||||
From discontinued operations | $ | - | $ | 0.01 | $ | - | $ | 0.01 | |||||||||
(Loss) income per common share, diluted | $ | (0.12 | ) | $ | 0.20 | $ | (0.22 | ) | $ | 0.18 | |||||||
Weighted average common shares outstanding: | |||||||||||||||||
Basic | 33,916 | 33,618 | 33,850 | 34,111 | |||||||||||||
Diluted | 33,916 | 34,142 | 33,850 | 34,626 | |||||||||||||
Cash dividends per share | $ | 0.04 | $ | 0.04 | $ | 0.12 | $ | 0.12 | |||||||||
QUANEX BUILDING PRODUCTS CORPORATION |
|||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||||
(In thousands) |
|||||||||
(Unaudited) |
|||||||||
July 31, 2016 | October 31, 2015 (1) | ||||||||
ASSETS | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 32,183 | $ | 23,125 | |||||
Accounts receivable, net | 83,089 | 64,080 | |||||||
Inventories, net | 92,251 | 63,029 | |||||||
Prepaid and other current assets | 11,900 | 7,992 | |||||||
Total current assets | 219,423 | 158,226 | |||||||
Property, plant and equipment, net | 198,213 | 140,672 | |||||||
Deferred income taxes | - | 8,783 | |||||||
Goodwill | 234,522 | 129,770 | |||||||
Intangible assets, net | 162,471 | 120,810 | |||||||
Other assets | 6,865 | 7,989 | |||||||
Total assets | $ | 821,494 | $ | 566,250 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Current liabilities: | |||||||||
Accounts payable | $ | 48,816 | $ | 47,778 | |||||
Accrued liabilities | 52,961 | 37,364 | |||||||
Income taxes payable | 912 | 747 | |||||||
Current maturities of long-term debt | 24,387 | 2,359 | |||||||
Total current liabilities | 127,076 | 88,248 | |||||||
Long-term debt | 277,680 | 54,501 | |||||||
Deferred pension and postretirement benefits | 8,186 | 5,701 | |||||||
Deferred income taxes | 21,758 | - | |||||||
Other liabilities | 13,727 | 22,505 | |||||||
Total liabilities | 448,427 | 170,955 | |||||||
Stockholders’ equity: | |||||||||
Common stock | 376 | 376 | |||||||
Additional paid-in-capital | 253,039 | 250,937 | |||||||
Retained earnings | 209,993 | 222,138 | |||||||
Accumulated other comprehensive loss | (27,932 | ) | (10,049 | ) | |||||
Treasury stock at cost | (62,409 | ) | (68,107 | ) | |||||
Total stockholders’ equity | 373,067 | 395,295 | |||||||
Total liabilities and stockholders' equity | $ | 821,494 | $ | 566,250 | |||||
(1) October 31, 2015 balance sheet reflects adoption of ASU 2015-03 and ASU 2015-17. |
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QUANEX BUILDING PRODUCTS CORPORATION | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW | ||||||||
(In thousands) | ||||||||
(Unaudited) | ||||||||
Nine Months Ended July 31, | ||||||||
2016 | 2015 | |||||||
Operating activities: | ||||||||
Net (loss) income | $ | (7,290 | ) | $ | 6,150 | |||
Adjustments to reconcile net (loss) income to cash provided by operating activities: | ||||||||
Depreciation and amortization | 39,759 | 24,541 | ||||||
Stock-based compensation | 4,587 | 3,391 | ||||||
Deferred income tax | (6,370 | ) | 1,576 | |||||
Excess tax benefit from share-based compensation | (134 | ) | (60 | ) | ||||
Noncash charge for deferred loan costs and debt discount | 15,883 | - | ||||||
Gain on involuntary conversion | - | (1,263 | ) | |||||
Other, net | 543 | 655 | ||||||
Changes in assets and liabilities, net of effects from acquisitions: | ||||||||
Decrease in accounts receivable | 2,035 | 4,328 | ||||||
Increase in inventory | (1,530 | ) | (51 | ) | ||||
Increase in other current assets | (1,239 | ) | (1,568 | ) | ||||
Decrease in accounts payable | (2,092 | ) | (5,236 | ) | ||||
Decrease in accrued liabilities | (2,139 | ) | (5,606 | ) | ||||
Increase (decrease) in income taxes payable | 2,990 | (817 | ) | |||||
Increase in deferred pension and postretirement benefits | 2,485 | 1,873 | ||||||
Increase (decrease) in other long-term liabilities | 894 | (162 | ) | |||||
Other, net | 676 | (202 | ) | |||||
Cash provided by operating activities | 49,058 | 27,549 | ||||||
Investing activities: | ||||||||
Acquisitions, net of cash acquired | (245,904 | ) | (131,689 | ) | ||||
Capital expenditures | (25,938 | ) | (21,918 | ) | ||||
Proceeds from property insurance claim | - | 1,263 | ||||||
Proceeds from disposition of capital assets | 984 | 207 | ||||||
Cash used for investing activities | (270,858 | ) | (152,137 | ) | ||||
Financing activities: | ||||||||
Borrowings under credit facilities | 632,800 | 92,000 | ||||||
Repayments of credit facility borrowings | (389,000 | ) | (8,000 | ) | ||||
Debt issuance costs | (11,795 | ) | - | |||||
Repayments of other long-term debt | (1,825 | ) | (411 | ) | ||||
Common stock dividends paid | (4,101 | ) | (4,158 | ) | ||||
Issuance of common stock | 3,368 | 4,309 | ||||||
Excess tax benefit from share-based compensation | 134 | 60 | ||||||
Purchase of treasury stock | - | (52,719 | ) | |||||
Cash provided by financing activities | 229,581 | 31,081 | ||||||
Effect of exchange rate changes on cash and cash equivalents | 1,277 | 134 | ||||||
Increase (decrease) in cash and cash equivalents | 9,058 | (93,373 | ) | |||||
Cash and cash equivalents at beginning of period | 23,125 | 120,384 | ||||||
Cash and cash equivalents at end of period | $ | 32,183 | $ | 27,011 | ||||
QUANEX BUILDING PRODUCTS CORPORATION | ||||||||||||||||||||||||
NON-GAAP FINANCIAL MEASURE DISCLOSURE | ||||||||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
EBITDA (defined as net income or loss before interest, taxes, depreciation and amortization and other, net) and Adjusted EBITDA (defined as net income or loss before interest, taxes, depreciation and amortization and other, net, excluding transaction costs and purchase price accounting inventory step-ups) are non-GAAP financial measures that Quanex's management uses to measure its operational performance and assist with financial decision-making. The Company believes these non-GAAP measures provide a consistent basis for comparison between periods, and will assist investors in understanding our financial performance when comparing our results to other investment opportunities. The leverage ratio of Net Debt to LTM Pro Forma Adjusted EBITDA is a financial measure that Quanex’s management believes is useful to investors and financial analysts in evaluating the Company’s leverage. In addition, with certain limited adjustments, this leverage ratio is the basis for a key covenant in Quanex’s credit agreements. Net Debt is calculated using the sum of current maturities of long-term debt and long-term debt, minus cash and cash equivalents. LTM Pro Forma Adjusted EBITDA is a non-GAAP financial measure that is calculated assuming that the acquisitions of HL Plastics and Woodcraft Industries occurred at a date prior to the actual date of acquisition. Since pro forma adjustment items to LTM Pro Forma Adjusted EBITDA are not historical in nature, a reconciliation to a comparable GAAP measure for purposes of such ratio is not available without unreasonable effort. Adjusted Income (Loss) from Continuing Operations and Adjusted Diluted Earnings (Loss) from Continuing Operations are non-GAAP financial measures that exclude certain charges and credits because the Company believes that such items are not indicative of its core operating results, are not indicative of trends, and do not provide meaningful comparisons with other reporting periods. Quanex believes the presented non-GAAP measures provide a consistent basis for comparison between periods, and will assist investors in understanding our financial performance when comparing our 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 US GAAP. | ||||||||||||||||||||||||
Three Months Ended July 31, 2016 | Three Months Ended July 31, 2015 | |||||||||||||||||||||||
Results Before Adjustments |
Adjustments | Adjusted Results | Results Before Adjustments |
Adjustments | Adjusted Results | |||||||||||||||||||
Net sales | $ | 248,085 | $ | - | $ | 248,085 | $ | 180,206 | $ | - | $ | 180,206 | ||||||||||||
Cost of sales (1) | 186,631 | (67 | ) | 186,564 | 136,853 | (2,930 | ) | 133,923 | ||||||||||||||||
Selling, general and administrative (2) | 28,551 | (109 | ) | 28,442 | 25,023 | (3,824 | ) | 21,199 | ||||||||||||||||
EBITDA | 32,903 | 176 | 33,079 | 18,330 | 6,754 | 25,084 | ||||||||||||||||||
Depreciation and amortization | 12,973 | - | 12,973 | 8,502 | - | 8,502 | ||||||||||||||||||
Operating income | 19,930 | 176 | 20,106 | 9,828 | 6,754 | 16,582 | ||||||||||||||||||
Interest (expense) benefit (3) | (22,200 | ) | 16,677 | (5,523 | ) | (338 | ) | - | (338 | ) | ||||||||||||||
Other, net (4) | (2,523 | ) | 2,239 | (284 | ) | 566 | (492 | ) | 74 | |||||||||||||||
(Loss) income before income taxes | (4,793 | ) | 19,092 | 14,299 | 10,056 | 6,262 | 16,318 | |||||||||||||||||
Income tax benefit (expense) (5) | 817 | (4,629 | ) | (3,812 | ) | (3,585 | ) | (1,648 | ) | (5,233 | ) | |||||||||||||
(Loss) income from continuing operations | $ | (3,976 | ) | $ | 14,463 | $ | 10,487 | $ | 6,471 | $ | 4,614 | $ | 11,085 | |||||||||||
Diluted earnings per share from continuing operations (6) | $ | (0.12 | ) | $ | 0.30 | $ |
0.19 | $ |
0.32 | |||||||||||||||
Nine Months Ended July 31, 2016 | Nine Months Ended July 31, 2015 | |||||||||||||||||||||||
Results Before Adjustments |
Adjustments | Adjusted Results | Results Before Adjustments |
Adjustments | Adjusted Results | |||||||||||||||||||
Net sales | $ | 679,013 | $ | - | $ | 679,013 | $ | 450,069 | $ | - | $ | 450,069 | ||||||||||||
Cost of sales (1) | 522,476 | (2,638 | ) | 519,838 | 353,469 | (2,930 | ) | 350,539 | ||||||||||||||||
Selling, general and administrative (2) | 88,430 | (4,987 | ) | 83,443 | 64,157 | (3,930 | ) | 60,227 | ||||||||||||||||
EBITDA | 68,107 | 7,625 | 75,732 | 32,443 | 6,860 | 39,303 | ||||||||||||||||||
Depreciation and amortization | 39,759 | - | 39,759 | 24,541 | - | 24,541 | ||||||||||||||||||
Operating income | 28,348 | 7,625 | 35,973 | 7,902 | 6,860 | 14,762 | ||||||||||||||||||
Interest (expense) benefit (3) | (34,324 | ) | 16,677 | (17,647 | ) | (624 | ) | - | (624 | ) | ||||||||||||||
Other, net (4) | (4,036 | ) | 3,879 | (157 | ) | 300 | (183 | ) | 117 | |||||||||||||||
(Loss) income before income taxes | (10,012 | ) | 28,181 | 18,169 | 7,578 | 6,677 | 14,255 | |||||||||||||||||
Income tax benefit (expense) (5) | 2,722 | (7,460 | ) | (4,738 | ) | (1,907 | ) | (1,795 | ) | (3,702 | ) | |||||||||||||
(Loss) income from continuing operations | $ | (7,290 | ) | $ | 20,721 | $ | 13,431 | $ | 5,671 | $ | 4,882 | $ | 10,553 | |||||||||||
Diluted earnings per share from continuing operations (6) | $ |
(0.22 | ) | $ | 0.39 | $ | 0.17 | $ |
0.30 | |||||||||||||||
(1) Cost of sales adjustments relate solely to purchase price accounting inventory step-up impact from HL Plastics and Woodcraft Industries acquisitions. |
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(2) Selling, general and administrative adjustments are for acquisition related transaction costs. | ||||||||||||||||||||||||
(3) Interest expense adjustments relate to write off of deferred loan costs, unamortized original issuance discount, and prepayment call premium related to debt refinance. |
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(4) Other, net adjustments relate to foreign currency transaction gains (losses). |
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(5) Effective tax rate reflects impacts of adjustments on a with and without basis. |
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(6) Adjusted EPS is calculated using diluted shares outstanding of 34.5 million and 34.4 million shares for three and nine months ended July 31, 2016, respectively. |
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QUANEX BUILDING PRODUCTS CORPORATION | |||||||||||||||||||||
SELECTED SEGMENT DATA | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
This table provides operating income (loss), EBITDA, and Adjusted EBITDA by reportable segment. Non-operating expense and income tax expense are not allocated to the reportable segments. For a reconciliation of net income to operating income (loss), see Non-GAAP Financial Measure Disclosure table. | |||||||||||||||||||||
NA Engineered Components | EU Engineered Components | NA Cabinet Components | Unallocated Corp & Other |
Total | |||||||||||||||||
Three months ended July 31, 2016 | |||||||||||||||||||||
Net sales | $ | 150,462 | $ | 40,217 | $ | 58,826 | $ | (1,420 | ) | $ | 248,085 | ||||||||||
Cost of sales | 109,513 | 27,533 | 50,376 | (791 | ) | 186,631 | |||||||||||||||
Operating income (loss) | 18,478 | 4,448 | 980 | (3,976 | ) | 19,930 | |||||||||||||||
Depreciation and amortization | 7,063 | 2,340 | 3,435 | 135 | 12,973 | ||||||||||||||||
EBITDA | 25,541 | 6,788 | 4,415 | (3,841 | ) | 32,903 | |||||||||||||||
Transaction related costs | - | - | - | 109 | 109 | ||||||||||||||||
PPA-Inventory Step-up | - | 67 | - | - | 67 | ||||||||||||||||
Adjusted EBITDA | $ | 25,541 | $ | 6,855 | $ | 4,415 | $ | (3,732 | ) | $ | 33,079 | ||||||||||
Adjusted EBITDA Margin % | 17 | % | 17 | % | 8 | % | 13 | % | |||||||||||||
Three months ended July 31, 2015 | |||||||||||||||||||||
Net sales | $ | 153,508 | $ | 27,997 | $ | - | $ | (1,299 | ) | $ | 180,206 | ||||||||||
Cost of sales | 114,732 | 22,663 | - | (542 | ) | 136,853 | |||||||||||||||
Operating income (loss) | 16,814 | (332 | ) | - | (6,654 | ) | 9,828 | ||||||||||||||
Depreciation and amortization | 7,141 | 1,171 | - | 190 | 8,502 | ||||||||||||||||
EBITDA | 23,955 | 839 | - | (6,464 | ) | 18,330 | |||||||||||||||
Transaction related costs | - | - | - | 3,824 | 3,824 | ||||||||||||||||
PPA-Inventory Step-up | - | 2,930 | - | - | 2,930 | ||||||||||||||||
Adjusted EBITDA | $ | 23,955 | $ | 3,769 | $ | - | $ | (2,640 | ) | $ | 25,084 | ||||||||||
Adjusted EBITDA Margin % | 16 | % | 13 | % | 0 | % | 14 | % | |||||||||||||
Nine months ended July 31, 2016 | |||||||||||||||||||||
Net sales | $ | 406,029 | $ | 110,250 | $ | 166,906 | $ | (4,172 | ) | $ | 679,013 | ||||||||||
Cost of sales | 304,434 | 76,698 | 143,716 | (2,372 | ) | 522,476 | |||||||||||||||
Operating income (loss) | 33,785 | 8,991 | 115 | (14,543 | ) | 28,348 | |||||||||||||||
Depreciation and amortization | 21,424 | 7,191 | 10,709 | 435 | 39,759 | ||||||||||||||||
EBITDA | 55,209 | 16,182 | 10,824 | (14,108 | ) | 68,107 | |||||||||||||||
Transaction related costs | - | - | - | 4,987 | 4,987 | ||||||||||||||||
PPA-Inventory Step-up | - | 351 | 2,287 | - | 2,638 | ||||||||||||||||
Adjusted EBITDA | $ | 55,209 | $ | 16,533 | $ | 13,111 | $ | (9,121 | ) | $ | 75,732 | ||||||||||
Adjusted EBITDA Margin % | 14 | % | 15 | % | 8 | % | 11 | % | |||||||||||||
Nine months ended July 31, 2015 | |||||||||||||||||||||
Net sales | $ | 402,249 | $ | 51,304 | $ | - | $ | (3,484 | ) | $ | 450,069 | ||||||||||
Cost of sales | 314,975 | 40,214 | - | (1,720 | ) | 353,469 | |||||||||||||||
Operating income (loss) | 21,127 | 380 | - | (13,605 | ) | 7,902 | |||||||||||||||
Depreciation and amortization | 21,690 | 1,983 | - | 868 | 24,541 | ||||||||||||||||
EBITDA | 42,817 | 2,363 | - | (12,737 | ) | 32,443 | |||||||||||||||
Transaction related costs | - | - | - | 3,930 | 3,930 | ||||||||||||||||
PPA-Inventory Step-up | - | 2,930 | - | - | 2,930 | ||||||||||||||||
Adjusted EBITDA | $ | 42,817 | $ | 5,293 | $ | - | $ | (8,807 | ) | $ | 39,303 | ||||||||||
Adjusted EBITDA Margin % | 11 | % | 10 | % | 0 | % | 9 | % | |||||||||||||
QUANEX BUILDING PRODUCTS CORPORATION | ||||||||||||||||||||
SALES ANALYSIS | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Sales Bridge for Three Months Ended July 31, 2016 | ||||||||||||||||||||
NA Engineered | EU Engineered | NA Cabinet | Unallocated | |||||||||||||||||
Components | Components | Components | Corporate & Other | Consolidated | ||||||||||||||||
Net sales, three months ended July 31, 2015 | $ | 153,508 | $ | 27,997 | $ | - | $ | (1,299 | ) | $ | 180,206 | |||||||||
Market volume | (263 | ) | 550 | - | (121 | ) | 166 | |||||||||||||
Eliminated products | (1,271 | ) | - | - | (1,271 | ) | ||||||||||||||
Price changes | (640 | ) | (382 | ) | - | - | (1,022 | ) | ||||||||||||
Foreign currency impacts | - | (590 | ) | - | - | (590 | ) | |||||||||||||
Mergers & acquisitions | - | 12,642 | 58,826 | - | 71,468 | |||||||||||||||
Raw material pass through adjustments | (872 | ) | - | - | - | (872 | ) | |||||||||||||
Net Sales, three months ended July 31, 2016 | $ | 150,462 | $ | 40,217 | $ | 58,826 | $ | (1,420 | ) | $ | 248,085 | |||||||||
Sales Bridge for Nine Months Ended July 31, 2016 | ||||||||||||||||||||
NA Engineered | EU Engineered | NA Cabinet | Unallocated | |||||||||||||||||
Components | Components | Components | Corporate & Other | Consolidated | ||||||||||||||||
Net sales, nine months ended July 31, 2015 | $ | 402,249 | $ | 51,304 | $ | - | $ | (3,484 | ) | $ | 450,069 | |||||||||
Market volume | 14,758 | 2,717 | - | (688 | ) | 16,787 | ||||||||||||||
Eliminated products | (4,688 | ) | - | - | - | (4,688 | ) | |||||||||||||
Price changes | (1,393 | ) | (1,368 | ) | - | - | (2,761 | ) | ||||||||||||
Foreign currency impacts | - | (1,774 | ) | - | - | (1,774 | ) | |||||||||||||
Mergers & acquisitions | - | 59,371 | 166,906 | - | 226,277 | |||||||||||||||
Raw material pass through adjustments | (4,897 | ) | - | - | - | (4,897 | ) | |||||||||||||
Net Sales, nine months ended July 31, 2016 | $ | 406,029 | $ | 110,250 | $ | 166,906 | $ | (4,172 | ) | $ | 679,013 | |||||||||