UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________
FORM
_________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
_______________________________
(Exact name of registrant as specified in its charter)
_______________________________
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
(Address of Principal Executive Offices) (Zip Code)
(
(Registrant's telephone number, including area code)
(Former name or former address, if changed since last report)
_______________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
On June 2, 2022, the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
| 99.1 | Press Release dated June 2, 2022 | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Quanex Building Products Corporation | ||
| Date: June 2, 2022 | By: | /s/ SCOTT ZUEHLKE |
| Scott Zuehlke | ||
| SVP, CFO and Treasurer | ||
EXHIBIT 99.1
Quanex Building Products Announces Second Quarter 2022 Results and Increases Full Year 2022 Guidance
Record Revenue and Earnings in 2Q22
Strong Revenue Growth Continues Across All Operating Segments
Balance Sheet & Liquidity Remain Strong
HOUSTON, June 02, 2022 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation (NYSE:NX) (“Quanex” or the “Company”) today announced its results for the three months ended April 30, 2022.
The Company reported the following selected financial results:
| QUANEX BUILDING PRODUCTS CORPORATION | |||||||||
| Q2 2022 Earnings Release | |||||||||
| Three Months Ended April 30, | Six Months Ended April 30, | ||||||||
| ($ in millions, except per share data) | 2022 | 2021 | 2022 | 2021 | |||||
| Net Sales | $322.9 | $270.4 | $589.9 | $500.5 | |||||
| Gross Margin | $73.2 | $61.9 | $128.4 | $115.6 | |||||
| Gross Margin % | 22.7% | 22.9% | 21.8% | 23.1% | |||||
| Net Income | $26.5 | $14.6 | $37.8 | $22.4 | |||||
| Diluted EPS | $0.80 | $0.43 | $1.13 | $0.67 | |||||
| Adjusted Net Income | $26.5 | $14.6 | $37.8 | $23.6 | |||||
| Adjusted Diluted EPS | $0.80 | $0.43 | $1.14 | $0.70 | |||||
| Adjusted EBITDA | $45.2 | $32.2 | $69.6 | $56.6 | |||||
| Adjusted EBITDA Margin % | 14.0% | 11.9% | 11.8% | 11.3% | |||||
| Cash Provided by (Used for) Operating Activities | $19.8 | $32.4 | ($1.9) | $29.0 | |||||
| Free Cash Flow | $13.4 | $27.8 | ($15.7) | $19.2 | |||||
(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, “We reported a record quarter despite ongoing challenges related to inflation and the supply chain. Demand for our products was better than expected during the second quarter, and we started to see the benefit of our pass-through pricing strategy, which drove revenue growth and improved profitability. Inflationary pressures are ongoing, but we still expect further margin expansion in the second half of our fiscal year.
“Managing working capital continues to be a challenge in this inflationary environment as the value of our inventory continues to increase, but overall, our balance sheet and liquidity remain strong. We will be focused on generating cash, paying down debt and opportunistically repurchasing our stock in the second half of this year.” (See Non-GAAP Terminology Definitions and Disclaimers section for additional information)
Second Quarter 2022 Results Summary
The Company reported net sales of $322.9 million during the three months ended April 30, 2022, which represents growth of 19.4% compared to $270.4 million for the same period of 2021. The increase was largely attributable to higher prices related to the pass through of raw material cost inflation. More specifically, Quanex realized net sales growth of 21.7% in its North American Fenestration segment, 14.7% in its North American Cabinet Components segment and 13.0% in its European Fenestration segment, excluding the foreign exchange impact. (See Sales Analysis table for additional information)
The increase in earnings for the three months ended April 30, 2022 was mostly due to increased pricing related to the pass through of raw material cost inflation, higher volumes, and a decrease in SG&A expense, mainly due to lower stock-based compensation.
Balance Sheet & Liquidity Update
As of April 30, 2022, Quanex had total debt of $77.0 million and its leverage ratio of Net Debt to LTM Adjusted EBITDA improved to 0.3x. (See Non-GAAP Terminology Definitions and Disclaimers section for additional information)
The Company’s liquidity increased to $296.5 million as of April 30, 2022, consisting of $38.9 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 authorized a $75 million share repurchase program in December of 2021. 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 Company repurchased 75,000 shares of common stock for approximately $1.6 million at an average price of $20.92 per share during the three months ended April 30, 2022. As of April 30, 2022, approximately $73.4 million remained under the existing share repurchase authorization.
Outlook
Mr. Wilson stated, “We are increasing guidance for fiscal 2022 based on our strong second quarter results combined with the successful implementation of our pass-through pricing strategy and ongoing conversations with our customers. We are very cognizant of the current macro related uncertainties, but we continue to believe that the underlying fundamentals for residential housing are positive and demand for our products remains healthy. For the second half of our fiscal year, we now expect low double-digit revenue growth in our North American Fenestration segment and mid-single digit revenue growth in our North American Cabinet Components and European Fenestration segments. Overall, on a consolidated basis and assuming the current inflation and supply chain challenges do not worsen materially, we estimate this will equate to net sales of $1.18 billion to $1.2 billion, which we expect will generate approximately $150 million to $155 million in Adjusted EBITDA* in fiscal 2022.”
*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 3, 2022, 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 7942145, 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 10, 2022. To access the replay dial (855) 859-2056 for domestic callers and (404) 537-3406 for international callers, in both cases referencing conference passcode 7942145.
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. Quanex uses the Free Cash Flow metric to measure operational and cash management performance and assist with financial decision-making. Free Cash Flow is measured before application of certain contractual commitments (including capital lease obligations), and accordingly is not a true measure of the Company’s residual cash flow available for discretionary expenditures. Quanex believes Free Cash Flow is useful to investors in understanding and evaluating the Company’s financial and cash management performance. Quanex believes that the presented non-GAAP measures provide a consistent basis for comparison between periods and will assist investors in understanding the Company’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. Quanex 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, 2021, 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, | ||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||
| Net sales | $ | 322,893 | $ | 270,357 | $ | 589,933 | $ | 500,504 | |||||||||
| Cost of sales | 249,651 | 208,460 | 461,485 | 384,857 | |||||||||||||
| Selling, general and administrative | 28,129 | 29,672 | 58,952 | 60,533 | |||||||||||||
| Restructuring charges | - | - | - | 39 | |||||||||||||
| Depreciation and amortization | 10,563 | 10,845 | 20,820 | 21,860 | |||||||||||||
| Operating income | 34,550 | 21,380 | 48,676 | 33,215 | |||||||||||||
| Interest expense | (602 | ) | (640 | ) | (1,125 | ) | (1,391 | ) | |||||||||
| Other, net | 453 | 265 | 507 | 457 | |||||||||||||
| Income before income taxes | 34,401 | 21,005 | 48,058 | 32,281 | |||||||||||||
| Income tax expense | (7,879 | ) | (6,454 | ) | (10,297 | ) | (9,878 | ) | |||||||||
| Net income | $ | 26,522 | $ | 14,551 | $ | 37,761 | $ | 22,403 | |||||||||
| Earnings per common share, basic | $ | 0.80 | $ | 0.44 | $ | 1.14 | $ | 0.68 | |||||||||
| Earnings per common share, diluted | $ | 0.80 | $ | 0.43 | $ | 1.13 | $ | 0.67 | |||||||||
| Weighted average common shares outstanding: | |||||||||||||||||
| Basic | 33,157 | 33,355 | 33,140 | 33,110 | |||||||||||||
| Diluted | 33,291 | 33,637 | 33,292 | 33,444 | |||||||||||||
| 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, 2022 | October 31, 2021 | ||||||||
| ASSETS | |||||||||
| Current assets: | |||||||||
| Cash and cash equivalents | $ | 38,900 | $ | 40,061 | |||||
| Accounts receivable, net | 118,195 | 108,309 | |||||||
| Inventories, net | 130,383 | 92,529 | |||||||
| Prepaid and other current assets | 11,442 | 8,148 | |||||||
| Total current assets | 298,920 | 249,047 | |||||||
| Property, plant and equipment, net | 170,307 | 178,630 | |||||||
| Operating lease right-of-use assets | 48,582 | 52,708 | |||||||
| Goodwill | 143,268 | 149,205 | |||||||
| Intangible assets, net | 73,581 | 82,410 | |||||||
| Other assets | 5,832 | 5,323 | |||||||
| Total assets | $ | 740,490 | $ | 717,323 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
| Current liabilities: | |||||||||
| Accounts payable | $ | 88,956 | $ | 86,765 | |||||
| Accrued liabilities | 40,740 | 56,156 | |||||||
| Income taxes payable | 7,851 | 6,038 | |||||||
| Current maturities of long-term debt | 812 | 846 | |||||||
| Current operating lease liabilities | 8,229 | 8,196 | |||||||
| Total current liabilities | 146,588 | 158,001 | |||||||
| Long-term debt | 75,714 | 52,094 | |||||||
| Noncurrent operating lease liabilities | 41,369 | 45,367 | |||||||
| Deferred pension and postretirement benefits | 4,578 | 4,737 | |||||||
| Deferred income taxes | 21,522 | 21,965 | |||||||
| Other liabilities | 14,545 | 15,377 | |||||||
| Total liabilities | 304,316 | 297,541 | |||||||
| Stockholders’ equity: | |||||||||
| Common stock | 373 | 373 | |||||||
| Additional paid-in-capital | 250,756 | 254,162 | |||||||
| Retained earnings | 292,221 | 259,718 | |||||||
| Accumulated other comprehensive loss | (36,197 | ) | (21,770 | ) | |||||
| Treasury stock at cost | (70,979 | ) | (72,701 | ) | |||||
| Total stockholders’ equity | 436,174 | 419,782 | |||||||
| Total liabilities and stockholders' equity | $ | 740,490 | $ | 717,323 | |||||
QUANEX BUILDING PRODUCTS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(In thousands)
(Unaudited)
| Six Months Ended April 30, | ||||||||
| 2022 | 2021 | |||||||
| Operating activities: | ||||||||
| Net income | $ | 37,761 | $ | 22,403 | ||||
| Adjustments to reconcile net income to cash (used for) provided by operating activities: | ||||||||
| Depreciation and amortization | 20,820 | 21,860 | ||||||
| Stock-based compensation | 1,124 | 970 | ||||||
| Deferred income tax | 583 | 2,339 | ||||||
| Other, net | 1,534 | 5,049 | ||||||
| Changes in assets and liabilities: | ||||||||
| Increase in accounts receivable | (13,008 | ) | (6,726 | ) | ||||
| Increase in inventory | (39,771 | ) | (18,265 | ) | ||||
| Increase in other current assets | (3,541 | ) | (2,013 | ) | ||||
| Increase in accounts payable | 7,381 | 5,584 | ||||||
| (Decrease) increase in accrued liabilities | (15,984 | ) | 994 | |||||
| Increase (decrease) in income taxes payable | 1,679 | (4,071 | ) | |||||
| Decrease in deferred pension and postretirement benefits | (159 | ) | (104 | ) | ||||
| Increase in other long-term liabilities | 443 | 642 | ||||||
| Other, net | (743 | ) | 298 | |||||
| Cash (used for) provided by operating activities | (1,881 | ) | 28,960 | |||||
| Investing activities: | ||||||||
| Capital expenditures | (13,785 | ) | (9,799 | ) | ||||
| Proceeds from disposition of capital assets | 36 | 1,665 | ||||||
| Cash used for investing activities | (13,749 | ) | (8,134 | ) | ||||
| Financing activities: | ||||||||
| Borrowings under credit facilities | 70,500 | - | ||||||
| Repayments of credit facility borrowings | (45,500 | ) | (30,000 | ) | ||||
| Repayments of other long-term debt | (432 | ) | (605 | ) | ||||
| Common stock dividends paid | (5,258 | ) | (5,330 | ) | ||||
| Issuance of common stock | 173 | 16,123 | ||||||
| Payroll tax paid to settle shares forfeited upon vesting of stock | (1,412 | ) | (492 | ) | ||||
| Purchase of treasury stock | (1,569 | ) | (3,968 | ) | ||||
| Cash provided by (used for) financing activities | 16,502 | (24,272 | ) | |||||
| Effect of exchange rate changes on cash and cash equivalents | (2,033 | ) | 1,083 | |||||
| Decrease in cash and cash equivalents | (1,161 | ) | (2,363 | ) | ||||
| Cash and cash equivalents at beginning of period | 40,061 | 51,621 | ||||||
| Cash and cash equivalents at end of period | $ | 38,900 | $ | 49,258 | ||||
QUANEX BUILDING PRODUCTS CORPORATION
FREE CASH FLOW AND NET DEBT RECONCILIATION
(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 (used for) operating activities less capital expenditures. | ||||||||||
| Three Months Ended April 30, | Six Months Ended April 30, | |||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||
| Cash provided by (used for) operating activities | 19,770 | 32,355 | ($1,881) | $28,960 | ||||||
| Capital expenditures | (6,415) | (4,553) | (13,785) | (9,799) | ||||||
| Free Cash Flow | $13,355 | $27,802 | ($15,666) | $19,161 | ||||||
| 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, | ||||||||||
| 2022 | 2021 | |||||||||
| Revolving credit facility | $63,000 | $73,000 | ||||||||
| Finance lease obligations | 13,971 | 15,689 | ||||||||
| Total debt(1) | 76,971 | 88,689 | ||||||||
| Less: Cash and cash equivalents | 38,900 | 49,258 | ||||||||
| Net Debt | $38,071 | $39,431 | ||||||||
| (1) Excludes outstanding letters of credit. | ||||||||||
QUANEX BUILDING PRODUCTS CORPORATION
NON-GAAP FINANCIAL MEASURE DISCLOSURE
(In thousands, except per share data)
(Unaudited)
| Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | |||||||||||||||
| Reconciliation of Adjusted Net Income and Adjusted EPS | April 30, 2022 | April 30, 2021 | April 30, 2022 | April 30, 2021 | ||||||||||||||
| Net Income | Diluted EPS | Net Income | Diluted EPS | Net Income | Diluted EPS | Net Income | Diluted EPS | |||||||||||
| Net income as reported | $ 26,522 | $ 0.80 | $ 14,551 | $ 0.43 | $ 37,761 | $ 1.13 | $ 22,403 | $ 0.67 | ||||||||||
| Net Income reconciling items from below | 1 | $ - | 3 | $ - | 34 | $ 0.01 | 1,174 | $ 0.03 | ||||||||||
| Adjusted net income and adjusted EPS | $ 26,523 | $ 0.80 | $ 14,554 | $ 0.43 | $ 37,795 | $ 1.14 | $ 23,577 | $ 0.70 | ||||||||||
| Reconciliation of Adjusted EBITDA | Three Months Ended April 30, 2022 | Three Months Ended April 30, 2021 | Six Months Ended April 30, 2022 | Six Months Ended April 30, 2021 | ||||||||||||||
| Reconciliation | Reconciliation | Reconciliation | Reconciliation | |||||||||||||||
| Net income as reported | $ 26,522 | $ 14,551 | $ 37,761 | $ 22,403 | ||||||||||||||
| Income tax expense | 7,879 | 6,454 | 10,297 | 9,878 | ||||||||||||||
| Other, net | (453) | (265) | (507) | (457) | ||||||||||||||
| Interest expense | 602 | 640 | 1,125 | 1,391 | ||||||||||||||
| Depreciation and amortization | 10,563 | 10,845 | 20,820 | 21,860 | ||||||||||||||
| EBITDA | 45,113 | 32,225 | 69,496 | 55,075 | ||||||||||||||
| EBITDA reconciling items from below | 131 | - | 131 | 1,478 | ||||||||||||||
| Adjusted EBITDA | $ 45,244 | $ 32,225 | $ 69,627 | $ 56,553 | ||||||||||||||
| Reconciling Items | Three Months Ended April 30, 2022 | Three Months Ended April 30, 2021 | Six Months Ended April 30, 2022 | Six Months Ended April 30, 2021 | ||||||||||||||
| Income Statement | Reconciling Items | Income Statement | Reconciling Items | Income Statement | Reconciling Items | Income Statement | Reconciling Items | |||||||||||
| Net sales | $ 322,893 | $ - | $ 270,357 | $ - | $ 589,933 | $ - | $ 500,504 | $ - | ||||||||||
| Cost of sales | 249,651 | - | 208,460 | - | 461,485 | - | 384,857 | - | ||||||||||
| Selling, general and administrative | 28,129 | (131) | (1) | 29,672 | - | 58,952 | (131) | (1) | 60,533 | (1,439) | (1) | |||||||
| Restructuring charges | - | - | - | - | - | - | 39 | (39) | (2) | |||||||||
| EBITDA | 45,113 | 131 | 32,225 | - | 69,496 | 131 | 55,075 | 1,478 | ||||||||||
| Depreciation and amortization | 10,563 | - | 10,845 | - | 20,820 | - | 21,860 | - | ||||||||||
| Operating income | 34,550 | 131 | 21,380 | - | 48,676 | 131 | 33,215 | 1,478 | ||||||||||
| Interest expense | (602) | - | (640) | - | (1,125) | - | (1,391) | - | ||||||||||
| Other, net | 453 | (123) | (3) | 265 | 4 | (3) | 507 | (82) | (3) | 457 | 82 | (3) | ||||||
| Income before income taxes | 34,401 | 8 | 21,005 | 4 | 48,058 | 49 | 32,281 | 1,560 | ||||||||||
| Income tax expense | (7,879) | (7) | (4) | (6,454) | (1) | (4) | (10,297) | (15) | (4) | (9,878) | (386) | (4) | ||||||
| Net income | $ 26,522 | $ 1 | $ 14,551 | $ 3 | $ 37,761 | $ 34 | $ 22,403 | $ 1,174 | ||||||||||
| Diluted earnings per share | $ 0.80 | $ 0.43 | $ 1.13 | $ 0.67 | ||||||||||||||
| (1) Transaction and advisory fees and $1.4 million related to the loss on a sale of a plant in the six months ended April 20, 2021. | ||||||||||||||||||
| (2) Restructuring charges related to the closure of manufacturing plant facilities. | ||||||||||||||||||
| (3) Foreign currency transaction (gains) losses. | ||||||||||||||||||
| (4) Impact on a with and without basis. | ||||||||||||||||||
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, 2022 | ||||||||||||||||||||
| Net sales | $ | 177,908 | $ | 73,427 | $ | 72,878 | $ | (1,320 | ) | $ | 322,893 | |||||||||
| Cost of sales | 137,571 | 49,708 | 63,175 | (803 | ) | 249,651 | ||||||||||||||
| Gross Margin | 40,337 | 23,719 | 9,703 | (517 | ) | 73,242 | ||||||||||||||
| Gross Margin % | 22.7 | % | 32.3 | % | 13.3 | % | 22.7 | % | ||||||||||||
| Selling, general and administrative | 14,078 | 8,601 | 5,218 | 232 | 28,129 | |||||||||||||||
| Depreciation and amortization | 4,038 | 2,522 | 3,917 | 86 | 10,563 | |||||||||||||||
| Operating income (loss) | 22,221 | 12,596 | 568 | (835 | ) | 34,550 | ||||||||||||||
| Depreciation and amortization | 4,038 | 2,522 | 3,917 | 86 | 10,563 | |||||||||||||||
| EBITDA | 26,259 | 15,118 | 4,485 | (749 | ) | 45,113 | ||||||||||||||
| Transaction and advisory fees | - | - | - | 131 | 131 | |||||||||||||||
| Adjusted EBITDA | $ | 26,259 | $ | 15,118 | $ | 4,485 | $ | (618 | ) | $ | 45,244 | |||||||||
| Adjusted EBITDA Margin % | 14.8 | % | 20.6 | % | 6.2 | % | 14.0 | % | ||||||||||||
| 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 | % | ||||||||||||
| Six months ended April 30, 2022 | ||||||||||||||||||||
| Net sales | $ | 324,539 | $ | 132,341 | $ | 135,231 | $ | (2,178 | ) | $ | 589,933 | |||||||||
| Cost of sales | 253,535 | 90,935 | 118,248 | (1,233 | ) | 461,485 | ||||||||||||||
| Gross Margin | 71,004 | 41,406 | 16,983 | (945 | ) | 128,448 | ||||||||||||||
| Gross Margin % | 21.9 | % | 31.3 | % | 12.6 | % | 21.8 | % | ||||||||||||
| Selling, general and administrative | 28,455 | 15,904 | 10,488 | 4,105 | 58,952 | |||||||||||||||
| Depreciation and amortization | 8,177 | 5,091 | 7,380 | 172 | 20,820 | |||||||||||||||
| Operating income (loss) | 34,372 | 20,411 | (885 | ) | (5,222 | ) | 48,676 | |||||||||||||
| Depreciation and amortization | 8,177 | 5,091 | 7,380 | 172 | 20,820 | |||||||||||||||
| EBITDA | 42,549 | 25,502 | 6,495 | (5,050 | ) | 69,496 | ||||||||||||||
| Transaction and advisory fees | - | - | - | 131 | 131 | |||||||||||||||
| Adjusted EBITDA | $ | 42,549 | $ | 25,502 | $ | 6,495 | $ | (4,919 | ) | $ | 69,627 | |||||||||
| Adjusted EBITDA Margin % | 13.1 | % | 19.3 | % | 4.8 | % | 11.8 | % | ||||||||||||
| 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 | % | ||||||||||||
| QUANEX BUILDING PRODUCTS CORPORATION | |||||||||||||||||
| SALES ANALYSIS | |||||||||||||||||
| (In thousands) | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Three Months Ended April 30, | Six Months Ended | ||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||
| NA Fenestration: | |||||||||||||||||
| United States - fenestration | $ | 156,843 | $ | 128,218 | $ | 285,210 | $ | 240,518 | |||||||||
| International - fenestration | 11,094 | 8,397 | 20,230 | 16,175 | |||||||||||||
| United States - non-fenestration | 7,077 | 6,293 | 13,793 | 11,690 | |||||||||||||
| International - non-fenestration | 2,894 | 3,235 | 5,306 | 5,876 | |||||||||||||
| $ | 177,908 | $ | 146,143 | $ | 324,539 | $ | 274,259 | ||||||||||
| EU Fenestration(1): | |||||||||||||||||
| International - fenestration | $ | 54,863 | $ | 50,835 | $ | 99,484 | $ | 92,189 | |||||||||
| International - non-fenestration | 18,564 | 10,822 | 32,857 | 18,559 | |||||||||||||
| $ | 73,427 | $ | 61,657 | $ | 132,341 | $ | 110,748 | ||||||||||
| NA Cabinet Components: | |||||||||||||||||
| United States - fenestration | $ | 4,666 | $ | 3,497 | $ | 8,431 | $ | 6,471 | |||||||||
| United States - non-fenestration | 67,383 | 60,388 | 125,150 | 110,890 | |||||||||||||
| International - non-fenestration | 829 | (323 | ) | 1,650 | 195 | ||||||||||||
| $ | 72,878 | $ | 63,562 | $ | 135,231 | $ | 117,556 | ||||||||||
| Unallocated Corporate & Other: | |||||||||||||||||
| Eliminations | $ | (1,320 | ) | $ | (1,005 | ) | $ | (2,178 | ) | $ | (2,059 | ) | |||||
| $ | (1,320 | ) | $ | (1,005 | ) | $ | (2,178 | ) | $ | (2,059 | ) | ||||||
| Net Sales | $ | 322,893 | $ | 270,357 | $ | 589,933 | $ | 500,504 | |||||||||
| (1) Reflects increase of $3.3 million and $3.7 million in revenue associated with foreign currency exchange rate impacts for the three and six months ended April 30, 2022, respectively. | |||||||||||||||||