Form 8-K
0001423221 False 0001423221 2023-03-09 2023-03-09 iso4217:USD xbrli:shares iso4217:USD xbrli:shares
 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________

FORM 8-K

_________________

CURRENT REPORT

Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  March 9, 2023

_______________________________

Quanex Building Products Corporation

(Exact name of registrant as specified in its charter)

_______________________________

Delaware001-3391326-1561397
(State or Other Jurisdiction of Incorporation)(Commission File Number)(I.R.S. Employer Identification No.)

1800 West Loop South, Suite 1500

Houston, Texas 77027

(Address of Principal Executive Offices) (Zip Code)

(713) 961-4600

(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 classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per shareNXNew York Stock Exchange

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. ☐

 
 
Item 2.02. Results of Operations and Financial Condition.

On March 9, 2023, the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.
     
99.1 Press Release dated March 9, 2023
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: March 9, 2023By: /s/ SCOTT ZUEHLKE        
  Scott Zuehlke
  SVP, CFO and Treasurer
  

 

EdgarFiling

EXHIBIT 99.1

Quanex Building Products Announces First Quarter 2023 Results and Provides Full Year 2023 Guidance

Balance Sheet and Liquidity Remain Strong 
Significant Improvement in Cash Provided by Operating Activities 
Revenue Growth in NA and EU Fenestration Segments, Excluding FX Impact 
Integration of LMI Custom Mixing Assets on Track 
Cautiously Optimistic on Second Half of 2023 
Positive Long-Term View on Residential Housing Market Remains Intact

HOUSTON, March 09, 2023 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation (NYSE:NX) (“Quanex” or the “Company”) today announced its results for the three months ended January 31, 2023.  

The Company reported the following selected financial results:

   Three Months Ended January 31,
($ in millions, except per share data)  2023 2022
Net Sales  $261.9 $267.0
Gross Margin  $51.8 $55.2
Gross Margin %  19.8% 20.7%
Net Income  $1.9 $11.2
Diluted EPS  $0.06 $0.34
      
Adjusted Net Income  $6.1 $11.3
Adjusted Diluted EPS  $0.18 $0.34
Adjusted EBITDA  $20.5 $24.4
Adjusted EBITDA Margin %  7.8% 9.1%
      
Cash Provided by (Used For) Operating Activities  $3.1 ($21.7
Free Cash Flow  ($4.4) ($29.0)

(See Non-GAAP Terminology Definitions and Disclaimers section, Non-GAAP Financial Measure Disclosure table, Selected Segment Data table and reconciliation tables for additional information)

George Wilson, President and Chief Executive Officer, stated, “Our results for the first quarter of 2023 were generally as expected with the only caveat being an elevated level of customer inventory re-balancing initiatives in our fenestration segments. We believe we are seeing a return to what is normal seasonality in our business.   In addition to lower market demand year-over-year, results for the quarter were impacted by higher stock-based compensation expense from the increase in our stock price, one-time transaction and advisory fees, increased interest expense related to rising rates on the debt we incurred to fund the acquisition of LMI Custom Mixing, LLC (“LMI”), and foreign exchange translation. While results in our legacy North American Fenestration segment were impacted by market volume declines and customer inventory rebalancing initiatives, the LMI business performed well and controllable operational performance in the legacy business continues to be strong. Results in our North American Cabinet Components segment were impacted by index related price decreases and soft market demand; however, margins were consistent compared to the same period of last year. Our European Fenestration business performed well despite additional macroeconomic headwinds, including the war in Ukraine and increased energy costs. In fact, after adjusting for the foreign exchange translation impact, we generated revenue growth in Europe and margins held up nicely. As we look ahead, it is important to note that while pricing for raw materials and related surcharges are declining, inflationary pressures still exist in many areas. We are focused on making sure our product pricing takes all factors into account.

“Notwithstanding some near-term macroeconomic challenges, our balance sheet remains strong even after accounting for the debt we borrowed to fund the acquisition of LMI. The integration of LMI is going well, and we have already started realizing synergies. Despite the overall softness compared to the same period of 2022, we were still able to pay down some debt towards the end of the first quarter and our leverage remains low.”

First Quarter 2023 Results Summary   

The Company reported net sales of $261.9 million during the three months ended January 31, 2023, which represents a decrease of 1.9% compared to $267.0 million for the same period of 2022. The decrease was mostly attributable to softer demand, customer inventory rebalancing initiatives and foreign exchange translation impact. Quanex realized net sales growth of 4.3% for the first quarter of 2023 in its North American Fenestration segment, which was driven by the contribution from LMI. Excluding LMI, net sales in the North American Fenestration segment would have declined by approximately 7% year-over-year. The Company reported a decline in net sales of 12.3% in its North American Cabinet Components segment and an increase of 3.9% in net sales in its European Fenestration segment, excluding foreign exchange impact. (See Sales Analysis table for additional information)

The decrease in earnings for the three months ended January 31, 2023 was largely due to lower volumes, one-time transaction and advisory fees, foreign exchange translation, higher interest expense and increased stock-based compensation expense, mostly due to stock price appreciation.

Balance Sheet & Liquidity Update

As of January 31, 2023, the Company had total debt of $155.1 million ($100.0 million excluding real-estate leases that are considered “finance” leases under U.S. GAAP) and Quanex’s leverage ratio of Net Debt to LTM Adjusted EBITDA was 0.8x (0.4x excluding these real-estate leases). As previously disclosed, the Company borrowed $92 million to acquire substantially all the assets of LMI on November 1, 2022. As of January 31, 2023, the Company’s LTM Adjusted EBITDA was $148.6 million and LTM Net Income, the most directly comparable GAAP measure, was $79.0 million.   (See Non-GAAP Terminology Definitions and Disclaimers section, Net Debt Reconciliation table and Last Twelve Months Adjusted EBITDA Reconciliation table for additional information)

Quanex’s liquidity was $263.0 million as of January 31, 2023, consisting of $43.0 million in cash on hand plus availability under its Amended and Restated Senior Secured Revolving Credit Facility due 2027, less letters of credit outstanding.

Outlook        

Mr. Wilson commented, “While the near-term outlook for our business remains somewhat cautious, our long-term view has not changed, and we believe the underlying fundamentals for the residential housing market remain positive. Considering these strong market fundamentals, and our belief that we have returned to a more normalized seasonality pattern, we are cautiously optimistic that demand will improve in the second half of our fiscal year. That said, we are also proactively working to adjust our cost structure to protect margins in the event that second half improvement doesn’t materialize as currently expected. Overall, on a consolidated basis, and assuming fundamentals do not worsen materially, we estimate we will generate net sales of $1.12 billion to $1.16 billion, which we expect will yield approximately $130 million to $142 million in Adjusted EBITDA* in fiscal 2023.

As always, we will stay focused on the things we can control. Our capital allocation priorities are generating cash, paying down debt, evaluating growth opportunities and opportunistically buying back our stock.”

*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 also scheduled a conference call for Friday, March 10, 2023 at 11:00 a.m. ET (10:00 a.m. CT) to discuss the release. A link to the live audio webcast will be available on Quanex’s website at http://www.quanex.com in the Investors section under Presentations & Events.

Participants can pre-register for the conference call using the following link: https://register.vevent.com/register/BIc7e66b8a6c024100847adde656098b34

Registered participants will receive an email containing conference call details for dial-in options. To avoid delays, it is recommended that participants dial into the conference call ten minutes ahead of the scheduled start time. A replay will be available for a limited time on the Company’s website at http://www.quanex.com in the Investors section under Presentations & Events.

About Quanex

Quanex is a global manufacturer with core capabilities and broad applications across various end markets. The Company currently collaborates and partners with leading OEMs to provide innovative solutions in the window, door, vinyl fencing, solar, refrigeration and cabinetry markets.  Looking ahead, Quanex plans to leverage its material science expertise and process engineering to expand into adjacent markets.

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, 2022, 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.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)

  Three Months Ended January 31,
   2023   2022 
     
Net sales $261,916  $267,040 
Cost of sales  210,149   211,834 
Selling, general and administrative  36,744   30,823 
Depreciation and amortization  10,620   10,257 
Operating income  4,403   14,126 
Interest expense  (2,259)  (523)
Other, net  218   54 
Income before income taxes  2,362   13,657 
Income tax expense  (453)  (2,418)
Net income $1,909  $11,239 
     
Earnings per common share, basic $0.06  $0.34 
Earnings per common share, diluted $0.06  $0.34 
     
Weighted average common shares outstanding:    
Basic  32,951   33,124 
Diluted  33,137   33,298 
     
Cash dividends per share $0.08  $0.08 
     


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

  January 31, 2023 October 31, 2022
ASSETS    
Current assets:    
Cash and cash equivalents $43,055  $55,093 
Accounts receivable, net  84,672   96,018 
Inventories, net  127,735   120,890 
Prepaid and other current assets  11,146   8,664 
Total current assets  266,608   280,665 
Property, plant and equipment, net  242,030   180,400 
Operating lease right-of-use assets  45,996   56,000 
Goodwill  184,706   137,855 
Intangible assets, net  83,401   65,035 
Other assets  4,285   4,662 
Total assets $827,026  $724,617 
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities:    
Accounts payable $63,093  $77,907 
Accrued liabilities  46,064   52,114 
Income taxes payable  1,624   1,049 
Current maturities of long-term debt  1,996   1,046 
Current operating lease liabilities  7,213   7,727 
Total current liabilities  119,990   139,843 
Long-term debt  151,682   29,628 
Noncurrent operating lease liabilities  39,725   49,286 
Deferred pension benefits  -   3,917 
Deferred income taxes  23,249   22,277 
Other liabilities  16,692   14,831 
Total liabilities  351,338   259,782 
Stockholders’ equity:    
Common stock  372   372 
Additional paid-in-capital  249,730   251,947 
Retained earnings  336,704   337,456 
Accumulated other comprehensive loss  (38,050)  (49,422)
Treasury stock at cost  (73,068)  (75,518)
Total stockholders’ equity  475,688   464,835 
Total liabilities and stockholders' equity $827,026  $724,617 
     


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

 Three Months Ended January 31,
  2023   2022 
Operating activities:   
Net income$1,909  $11,239 
Adjustments to reconcile net income to cash provided by operating activities:   
Depreciation and amortization 10,620   10,257 
Stock-based compensation 679   552 
Deferred income tax 179   854 
Other, net 1,509   1,218 
Changes in assets and liabilities:   
Decrease in accounts receivable 20,502   8,340 
Decrease (increase) in inventory 645   (25,318)
Increase in other current assets (1,431)  (3,534)
Decrease in accounts payable (21,379)  (8,391)
Decrease in accrued liabilities (12,686)  (18,248)
Increase in income taxes payable 536   1,391 
Increase (decrease) in deferred pension benefits 7   (80)
Increase in other long-term liabilities 1,461   404 
Other, net 584   (335)
Cash provided by (used for) operating activities 3,135   (21,651)
Investing activities:   
Business acquisition (92,000)  - 
Capital expenditures (7,582)  (7,370)
Proceeds from disposition of capital assets 98   10 
Cash used for investing activities (99,484)  (7,360)
Financing activities:   
Borrowings under credit facilities 102,000   28,000 
Repayments of credit facility borrowings (15,000)  (3,000)
Repayments of other long-term debt (579)  (228)
Common stock dividends paid (2,661)  (2,587)
Issuance of common stock 99   55 
Payroll tax paid to settle shares forfeited upon vesting of stock (545)  (1,383)
Cash used for financing activities 83,314   20,857 
Cash provided by financing activities 997   (188)
Decrease in cash and cash equivalents (12,038)  (8,342)
Cash and cash equivalents at beginning of period 55,093   40,061 
Cash and cash equivalents at end of period$43,055  $31,719 
    


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 operating activities less capital expenditures.
      
   Three Months Ended January 31,
    2023   2022 
Cash provided by (used for) operating activities  $3,135   (21,651) 
Capital expenditures   (7,582)   (7,370) 
Free Cash Flow  ($4,447)  ($29,021) 
      
      
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 January 31,
    2023   2022 
Revolving credit facility  $100,000  $63,000 
Finance lease obligations (1)   55,122   15,048 
Total debt (2)   155,122   78,048 
Less: Cash and cash equivalents   43,055   31,719 
Net Debt  $112,067   $46,329  
      
(1) Includes $53.2 million and $13.8 million in real estate lease liabilities considered finance leases under U.S. GAAP for the three months ended January 31, 2023 and January 31, 2022, respectively..
(2) Excludes outstanding letters of credit.     


QUANEX BUILDING PRODUCTS CORPORATION
NON-GAAP FINANCIAL MEASURE DISCLOSURE
LAST TWELVE MONTHS ADJUSTED EBITDA RECONCILIATION
(In thousands, except per share data)
(Unaudited)

Reconciliation of Last Twelve Months Adjusted EBITDA Three Months Ended
January 31, 2023
 Three Months Ended
October 31, 2022
 Three Months Ended
July 31, 2022
 Three Months Ended
April 30, 2022
 Total
  Reconciliation Reconciliation Reconciliation Reconciliation Reconciliation
Net income as reported $1,909  $24,667  $25,908  $26,522  $79,006 
Income tax expense  453   3,329   7,801   7,879   19,462 
Other, net  (218)  (136)  (398)  (453)  (1,205)
Interest expense  2,259   710   724   602   4,295 
Depreciation and amortization  10,620   9,555   9,734   10,563   40,472 
EBITDA  15,023   38,125   43,769   45,113   142,030 
Selling, general and administrative(1)  5,448   564   419   131   6,562 
Adjusted EBITDA $20,471  $38,689  $44,188  $45,244  $148,592 
           
(1) Transaction and advisory fees.


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

          
  Three Months Ended Three Months Ended 
Reconciliation of Adjusted Net Income and Adjusted EPS January 31, 2023 January 31, 2022 
  Net
Income
 Diluted
EPS
 Net
Income
 Diluted
EPS
 
Net income as reported $1,909  $0.06  $11,239  $0.34  
Net income reconciling items from below  4,154  $0.12   33  $-  
Adjusted net income and adjusted EPS $6,063  $0.18  $11,272  $0.34  
          
Reconciliation of Adjusted EBITDA Three Months Ended
January 31, 2023
 Three Months Ended
January 31, 2022
 
  Reconciliation   Reconciliation   
Net income as reported $1,909    $11,239    
Income tax expense  453     2,418    
Other, net  (218)    (54)   
Interest expense  2,259     523    
Depreciation and amortization  10,620     10,257    
EBITDA  15,023     24,383    
EBITDA reconciling items from below  5,448     -    
Adjusted EBITDA $20,471    $24,383    
          
Reconciling Items Three Months Ended
January 31, 2023
 Three Months Ended
January 31, 2022
 
  Income
Statement
 Reconciling
Items
 Income
Statement
 Reconciling
Items
 
Net sales $261,916  $-  $267,040  $-  
Cost of sales  210,149   -   211,834   -  
Selling, general and administrative  36,744   (5,448)(1)  30,823   -  
EBITDA  15,023   5,448   24,383   -  
Depreciation and amortization  10,620   -   10,257   -  
Operating income  4,403   5,448   14,126   -  
Interest expense  (2,259)  -   (523)  -  
Other, net  218   (42)(2)  54   41 (2) 
Income before income taxes  2,362   5,406   13,657   41  
Income tax expense  (453)  (1,252)(3)  (2,418)  (8)(3) 
Net income $1,909  $4,154  $11,239  $33  
          
Diluted earnings per share $0.06    $0.34    
          
          
(1) Transaction and advisory fees. 
(2) Foreign currency transaction (gains) losses. 
(3) 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 January 31, 2023          
Net sales $152,980  $54,952  $54,674  $(690) $261,916 
Cost of sales  124,717   37,703   48,056   (327)  210,149 
Gross Margin  28,263   17,249   6,618   (363)  51,767 
Gross Margin %  18.5%  31.4%  12.1%    19.8%
Selling, general and administrative  13,295   7,505   4,873   11,071   36,744 
Depreciation and amortization  5,245   2,348   2,934   93   10,620 
Operating income (loss)  9,723   7,396   (1,189)  (11,527)  4,403 
Depreciation and amortization  5,245   2,348   2,934   93   10,620 
EBITDA  14,968   9,744   1,745   (11,434)  15,023 
Transaction and advisory fees  -   -   -   5,448   5,448 
Adjusted EBITDA $14,968  $9,744  $1,745  $(5,986) $20,471 
Adjusted EBITDA Margin %  9.8%  17.7%  3.2%    7.8%
           
Three months ended January 31, 2022          
Net sales $146,631  $58,914  $62,353  $(858) $267,040 
Cost of sales  115,964   41,227   55,073   (430)  211,834 
Gross Margin  30,667   17,687   7,280   (428)  55,206 
Gross Margin %  20.9%  30.0%  11.7%    20.7%
Selling, general and administrative  14,377   7,303   5,270   3,873   30,823 
Depreciation and amortization  4,139   2,569   3,463   86   10,257 
Operating income (loss)  12,151   7,815   (1,453)  (4,387)  14,126 
Depreciation and amortization  4,139   2,569   3,463   86   10,257 
EBITDA  16,290   10,384   2,010   (4,301)  24,383 
Adjusted EBITDA $16,290  $10,384  $2,010  $(4,301) $24,383 
Adjusted EBITDA Margin %  11.1%  17.6%  3.2%    9.1%
           

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

  Three Months Ended January 31,
   2023   2022 
     
NA Fenestration:   
 United States - fenestration$120,767  $128,367 
 International - fenestration 5,127   9,136 
 United States - non-fenestration 23,066   6,716 
 International - non-fenestration 4,020   2,412 
  $152,980  $146,631 
EU Fenestration:(1)   
 International - fenestration$42,354  $44,621 
 International - non-fenestration 12,598   14,293 
  $54,952  $58,914 
NA Cabinet Components:   
 United States - fenestration$3,908  $3,765 
 United States - non-fenestration 50,049   57,767 
 International - non-fenestration 717   821 
  $54,674  $62,353 
Unallocated Corporate & Other:   
 Eliminations$(690) $(858)
  $(690) $(858)
     
Net Sales$261,916  $267,040 
     
(1) Reflects a reduction of $6.0 million in revenue associated with foreign currency exchange rate impacts for the three months ended January 31, 2023.