Record Revenue Growth & Earnings in FY21
Balance Sheet & Liquidity Continue to Improve and Remain Strong
Board Authorizes New $75 Million Share Repurchase Program
HOUSTON, Dec. 16, 2021 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation (NYSE:NX) (“Quanex” or the “Company”) today announced its results for the three months and twelve months ended October 31, 2021. The Company also announced that its Board of Directors (the “Board) has authorized a new $75 million share repurchase program to return capital to shareholders.
The Company reported the following selected financial results:
| QUANEX BUILDING PRODUCTS CORPORATION |
|
|
|
|
|
|
|
|
|
| Q4 2021 Earnings Release |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended October 31, |
|
Twelve Months Ended October 31, |
|
| ($ in millions, except per share data) |
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
| Net Sales |
|
|
$291.8 |
|
|
$255.4 |
|
|
$1,072.1 |
|
|
$851.6 |
|
|
| Gross Margin |
|
|
$65.0 |
|
|
$66.2 |
|
|
$240.6 |
|
|
$192.8 |
|
|
| Gross Margin % |
|
|
22.3% |
|
|
|
25.9% |
|
|
|
22.4% |
|
|
|
22.6% |
|
|
| Net Income |
|
|
$20.9 |
|
|
$22.2 |
|
|
$57.0 |
|
|
$38.5 |
|
|
| Diluted EPS |
|
|
$0.62 |
|
|
$0.68 |
|
|
$1.70 |
|
|
$1.17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Net Income |
|
|
$20.8 |
|
|
$22.0 |
|
|
$58.6 |
|
|
$40.7 |
|
|
| Adjusted Diluted EPS |
|
|
$0.62 |
|
|
$0.67 |
|
|
$1.75 |
|
|
$1.24 |
|
|
| Adjusted EBITDA |
|
|
$37.3 |
|
|
$39.4 |
|
|
$126.8 |
|
|
$104.5 |
|
|
| Adjusted EBITDA Margin % |
|
|
12.8% |
|
|
|
15.4% |
|
|
|
11.8% |
|
|
|
12.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash Provided by Operating Activities |
|
|
$31.2 |
|
|
$53.2 |
|
|
$78.6 |
|
|
$100.8 |
|
|
| Free Cash Flow |
|
|
$23.2 |
|
|
$48.2 |
|
|
$54.6 |
|
|
$75.1 |
|
|
(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 the products we manufacture remained strong throughout our fiscal year and that continues today. Despite challenges related to the supply chain and inflation, we reported record revenue growth and record earnings for the year.
“Our liquidity position has improved meaningfully over the past year, and our balance sheet is strong. We were able to pay down $65 million of bank debt in fiscal 2021, and we are very close to being net debt free. We are focused on closing the valuation gap that currently exists between us and our peers. As such, the Board has authorized a new $75 million share repurchase program, which reflects our strong balance sheet, commitment to returning capital to shareholders and overall confidence in the ability of the Company to continue to grow and create value for shareholders over time.” (See Non-GAAP Terminology Definitions and Disclaimers section for additional information)
Fourth Quarter and Fiscal 2021 Results Summary
Quanex reported net sales growth of 14.2% and 25.9% during the three months and twelve months ended October 31, 2021, respectively. The increases were mostly due to improved demand across all product lines and operating segments combined with higher prices primarily related to the pass through of raw material cost inflation. More specifically, for the fourth quarter and full year, the Company posted net sales growth of 10.1% and 19.6%, respectively, in its North American Fenestration segment, 15.9% and 17.1%, respectively, in its North American Cabinet Components segment and 17.6% and 45.6%, respectively, 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 decrease in earnings for the three months ended October 31, 2021 was driven by inflationary pressures and supply chain challenges. The increase in earnings for the twelve months ended October 31, 2021 was largely due to higher volumes, improved operating leverage and better pricing. This increase was somewhat offset by higher raw material costs and an increase in selling, general and administrative expenses.
Balance Sheet & Liquidity Update
As of October 31, 2021, Quanex had total debt of $53.5 million and its leverage ratio of Net Debt to LTM Adjusted EBITDA improved to 0.1x. (See Non-GAAP Terminology Definitions and Disclaimers section for additional information)
The Company’s liquidity increased to $322.6 million as of October 31, 2021, consisting of $40.1 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 $60 million share repurchase program in September of 2018, which is now complete. Repurchases under this program were made in open market transactions or privately negotiated transactions, subject to market conditions, applicable legal requirements, and other relevant factors. The Company repurchased 247,003 shares of common stock for approximately $5.4 million at an average price of $22.03 per share during the three months ended October 31, 2021.
Quanex’s Board recently authorized a new $75 million share repurchase program. 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.
Outlook
George Wilson, President and Chief Executive Officer, stated, “Demand remains strong, but ongoing supply chain disruptions continue to create day-to-day operational challenges and ultimately reduce our visibility in the near-term. Based on current fundamentals, trends, and recent conversations with our customers, we are taking a measured approach to 2022 guidance. As such, we believe it would be premature to give guidance at this time. However, we feel confident in our ability to realize margin expansion on a consolidated basis in fiscal 2022, second half weighted, and we remain cautiously optimistic for the year. We intend to re-visit guidance when we report earnings for the first quarter of 2022.”
Conference Call and Webcast Information
The Company has scheduled a conference call for Friday, December 17, 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 7040256, 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 December 24, 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 7040256.
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, 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 October 31, |
|
Twelve Months Ended October 31, |
|
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
| Net sales |
|
$ |
291,768 |
|
|
$ |
255,405 |
|
|
$ |
1,072,149 |
|
|
$ |
851,573 |
|
|
| Cost of sales |
|
|
226,818 |
|
|
|
189,164 |
|
|
|
831,541 |
|
|
|
658,750 |
|
|
| Selling, general and administrative |
|
|
27,668 |
|
|
|
26,889 |
|
|
|
115,967 |
|
|
|
89,707 |
|
|
| Restructuring charges |
|
|
- |
|
|
|
145 |
|
|
|
39 |
|
|
|
622 |
|
|
| Depreciation and amortization |
|
|
10,189 |
|
|
|
11,378 |
|
|
|
42,732 |
|
|
|
47,229 |
|
|
| Operating income |
|
|
27,093 |
|
|
|
27,829 |
|
|
|
81,870 |
|
|
|
55,265 |
|
|
| Interest expense |
|
|
(542 |
) |
|
|
(935 |
) |
|
|
(2,530 |
) |
|
|
(5,245 |
) |
|
| Other, net |
|
|
109 |
|
|
|
164 |
|
|
|
754 |
|
|
|
280 |
|
|
| Income before income taxes |
|
|
26,660 |
|
|
|
27,058 |
|
|
|
80,094 |
|
|
|
50,300 |
|
|
| Income tax expense |
|
|
(5,762 |
) |
|
|
(4,906 |
) |
|
|
(23,114 |
) |
|
|
(11,804 |
) |
|
| Net income |
|
$ |
20,898 |
|
|
$ |
22,152 |
|
|
$ |
56,980 |
|
|
$ |
38,496 |
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings per common share, basic |
|
$ |
0.63 |
|
|
$ |
0.68 |
|
|
$ |
1.72 |
|
|
$ |
1.18 |
|
|
| Earnings per common share, diluted |
|
$ |
0.62 |
|
|
$ |
0.68 |
|
|
$ |
1.70 |
|
|
$ |
1.17 |
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
| Basic |
|
|
33,191 |
|
|
|
32,608 |
|
|
|
33,193 |
|
|
|
32,689 |
|
|
| Diluted |
|
|
33,454 |
|
|
|
32,811 |
|
|
|
33,495 |
|
|
|
32,821 |
|
|
|
|
|
|
|
|
|
|
|
|
| Cash dividends per share |
|
$ |
0.08 |
|
|
$ |
0.08 |
|
|
$ |
0.32 |
|
|
$ |
0.32 |
|
|
|
|
|
|
|
|
|
|
|
|
QUANEX BUILDING PRODUCTS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
|
|
|
|
|
|
|
October 31, 2021 |
|
October 31, 2020 |
| ASSETS |
|
|
|
|
| Current assets: |
|
|
|
|
| Cash and cash equivalents |
|
$ |
40,061 |
|
|
$ |
51,621 |
|
| Accounts receivable, net |
|
|
108,309 |
|
|
|
88,287 |
|
| Inventories, net |
|
|
92,529 |
|
|
|
61,181 |
|
| Prepaid and other current assets |
|
|
8,148 |
|
|
|
6,217 |
|
| Total current assets |
|
|
249,047 |
|
|
|
207,306 |
|
| Property, plant and equipment, net |
|
|
178,630 |
|
|
|
184,104 |
|
| Operating lease right-of-use assets |
|
|
52,708 |
|
|
|
51,824 |
|
| Goodwill |
|
|
149,205 |
|
|
|
146,154 |
|
| Intangible assets, net |
|
|
82,410 |
|
|
|
93,068 |
|
| Other assets |
|
|
5,323 |
|
|
|
9,129 |
|
| Total assets |
|
$ |
717,323 |
|
|
$ |
691,585 |
|
|
|
|
|
|
| LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
| Current liabilities: |
|
|
|
|
| Accounts payable |
|
$ |
86,765 |
|
|
$ |
77,335 |
|
| Accrued liabilities |
|
|
56,156 |
|
|
|
38,289 |
|
| Income taxes payable |
|
|
6,038 |
|
|
|
6,465 |
|
| Current maturities of long-term debt |
|
|
846 |
|
|
|
692 |
|
| Current operating lease liabilities |
|
|
8,196 |
|
|
|
7,459 |
|
| Total current liabilities |
|
|
158,001 |
|
|
|
130,240 |
|
| Long-term debt |
|
|
52,094 |
|
|
|
116,728 |
|
| Noncurrent operating lease liabilities |
|
|
45,367 |
|
|
|
44,873 |
|
| Deferred pension and postretirement benefits |
|
|
4,737 |
|
|
|
10,923 |
|
| Deferred income taxes |
|
|
21,965 |
|
|
|
19,116 |
|
| Liabilities for uncertain tax positions |
|
|
1,388 |
|
|
|
522 |
|
| Other liabilities |
|
|
13,989 |
|
|
|
13,424 |
|
| Total liabilities |
|
|
297,541 |
|
|
|
335,826 |
|
| Stockholders’ equity: |
|
|
|
|
| Common stock |
|
|
373 |
|
|
|
373 |
|
| Additional paid-in-capital |
|
|
254,162 |
|
|
|
253,458 |
|
| Retained earnings |
|
|
259,718 |
|
|
|
213,517 |
|
| Accumulated other comprehensive loss |
|
|
(21,770 |
) |
|
|
(33,024 |
) |
| Treasury stock at cost |
|
|
(72,701 |
) |
|
|
(78,565 |
) |
| Total stockholders’ equity |
|
|
419,782 |
|
|
|
355,759 |
|
| Total liabilities and stockholders' equity |
|
$ |
717,323 |
|
|
$ |
691,585 |
|
|
|
|
|
|
QUANEX BUILDING PRODUCTS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(In thousands)
(Unaudited)
|
Twelve Months Ended October 31, |
|
|
2021 |
|
|
|
2020 |
|
| Operating activities: |
|
|
|
| Net income |
$ |
56,980 |
|
|
$ |
38,496 |
|
| Adjustments to reconcile net income to cash provided by operating activities: |
|
|
|
| Depreciation and amortization |
|
42,732 |
|
|
|
47,229 |
|
| Loss on the disposition of capital assets |
|
3,039 |
|
|
|
- |
|
| Stock-based compensation |
|
1,970 |
|
|
|
879 |
|
| Deferred income tax |
|
1,785 |
|
|
|
(189 |
) |
| Other, net |
|
2,126 |
|
|
|
1,689 |
|
| Changes in assets and liabilities: |
|
|
|
| Increase in accounts receivable |
|
(19,017 |
) |
|
|
(5,766 |
) |
| (Increase) decrease in inventory |
|
(31,382 |
) |
|
|
6,119 |
|
| (Increase) decrease in other current assets |
|
(1,817 |
) |
|
|
2,896 |
|
| Increase in accounts payable |
|
7,097 |
|
|
|
15,922 |
|
| Increase (decrease) in accrued liabilities |
|
16,212 |
|
|
|
(3,156 |
) |
| (Decrease) increase in income taxes payable |
|
(378 |
) |
|
|
237 |
|
| Decrease in deferred pension and postretirement benefits |
|
(708 |
) |
|
|
(2,775 |
) |
| Increase (decrease) in other long-term liabilities |
|
477 |
|
|
|
(236 |
) |
| Other, net |
|
(528 |
) |
|
|
(549 |
) |
| Cash provided by operating activities |
|
78,588 |
|
|
|
100,796 |
|
| Investing activities: |
|
|
|
| Capital expenditures |
|
(24,008 |
) |
|
|
(25,726 |
) |
| Proceeds from disposition of capital assets |
|
5,300 |
|
|
|
502 |
|
| Cash used for investing activities |
|
(18,708 |
) |
|
|
(25,224 |
) |
| Financing activities: |
|
|
|
| Borrowings under credit facilities |
|
- |
|
|
|
114,500 |
|
| Repayments of credit facility borrowings |
|
(65,000 |
) |
|
|
(154,000 |
) |
| Repayments of other long-term debt |
|
(680 |
) |
|
|
(1,027 |
) |
| Common stock dividends paid |
|
(10,779 |
) |
|
|
(10,534 |
) |
| Issuance of common stock |
|
16,272 |
|
|
|
3,626 |
|
| Payroll tax paid to settle shares forfeited upon vesting of stock |
|
(492 |
) |
|
|
(454 |
) |
| Purchase of treasury stock |
|
(11,182 |
) |
|
|
(7,233 |
) |
| Cash used for financing activities |
|
(71,861 |
) |
|
|
(55,122 |
) |
| Effect of exchange rate changes on cash and cash equivalents |
|
421 |
|
|
|
303 |
|
| (Decrease) increase in cash and cash equivalents |
|
(11,560 |
) |
|
|
20,753 |
|
| Cash and cash equivalents at beginning of period |
|
51,621 |
|
|
|
30,868 |
|
| Cash and cash equivalents at end of period |
$ |
40,061 |
|
|
$ |
51,621 |
|
|
|
|
|
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 October 31, |
|
Twelve Months Ended October 31, |
|
|
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
| Cash provided by operating activities |
|
|
$31,153 |
|
$53,235 |
|
$78,588 |
|
$100,796 |
|
| Capital expenditures |
|
|
(8,002) |
|
(5,053) |
|
(24,008) |
|
(25,726) |
|
| Free Cash Flow |
|
|
$23,151 |
|
$48,182 |
|
$54,580 |
|
$75,070 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 October 31, |
|
|
|
|
|
|
2021 |
|
2020 |
|
|
|
|
|
| Revolving Credit Facility |
|
|
$38,000 |
|
$103,000 |
|
|
|
|
|
| Finance Lease Obligations |
|
|
15,537 |
|
15,321 |
|
|
|
|
|
| Total Debt (1) |
|
|
53,537 |
|
118,321 |
|
|
|
|
|
| Less: Cash and cash equivalents |
|
|
40,061 |
|
51,621 |
|
|
|
|
|
| Net Debt |
|
|
$13,476 |
|
$66,700 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (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 |
|
Twelve Months Ended |
|
Twelve Months Ended |
|
| Reconciliation of Adjusted Net Income and Adjusted EPS |
|
October 31, 2021 |
|
October 31, 2020 |
|
October 31, 2021 |
|
October 31, 2020 |
|
|
|
Net Income |
|
Diluted EPS |
|
Net Income |
|
Diluted EPS |
|
Net Income |
|
Diluted EPS |
|
Net Income |
|
Diluted EPS |
|
| Net income as reported |
|
$ 20,898 |
|
$ 0.62 |
|
$ 22,152 |
|
$ 0.68 |
|
$ 56,980 |
|
$ 1.70 |
|
$ 38,496 |
|
$ 1.17 |
|
| Net Income reconciling items from below |
|
(51) |
|
- |
|
(168) |
|
(0.01) |
|
1,609 |
|
0.05 |
|
2,218 |
|
0.07 |
|
| Adjusted net income and adjusted EPS |
|
$ 20,847 |
|
$ 0.62 |
|
$ 21,984 |
|
$ 0.67 |
|
$ 58,589 |
|
$ 1.75 |
|
$ 40,714 |
|
$ 1.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of Adjusted EBITDA |
|
Three Months Ended October 31, 2021 |
|
Three Months Ended October 31, 2020 |
|
Twelve Months Ended October 31, 2021 |
|
Twleve Months Ended October 31, 2020 |
|
|
|
Reconciliation |
|
|
|
Reconciliation |
|
|
|
Reconciliation |
|
|
|
Reconciliation |
|
|
|
| Net income as reported |
|
$ 20,898 |
|
|
|
$ 22,152 |
|
|
|
$ 56,980 |
|
|
|
$ 38,496 |
|
|
|
| Income tax expense |
|
5,762 |
|
|
|
4,906 |
|
|
|
23,114 |
|
|
|
11,804 |
|
|
|
| Other, net |
|
(109) |
|
|
|
(164) |
|
|
|
(754) |
|
|
|
(280) |
|
|
|
| Interest expense |
|
542 |
|
|
|
935 |
|
|
|
2,530 |
|
|
|
5,245 |
|
|
|
| Depreciation and amortization |
|
10,189 |
|
|
|
11,378 |
|
|
|
42,732 |
|
|
|
47,229 |
|
|
|
| EBITDA |
|
37,282 |
|
|
|
39,207 |
|
|
|
124,602 |
|
|
|
102,494 |
|
|
|
| EBITDA reconciling items from below |
|
- |
|
|
|
145 |
|
|
|
2,160 |
|
|
|
2,020 |
|
|
|
| Adjusted EBITDA |
|
$ 37,282 |
|
|
|
$ 39,352 |
|
|
|
$ 126,762 |
|
|
|
$ 104,514 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciling Items |
|
Three Months Ended October 31, 2021 |
|
Three Months Ended October 31, 2020 |
|
Twelve Months Ended October 31, 2021 |
|
Twleve Months Ended October 31, 2020 |
|
|
|
Income Statement |
|
Reconciling Items |
|
Income Statement |
|
Reconciling Items |
|
Income Statement |
|
Reconciling Items |
|
Income Statement |
|
Reconciling Items |
|
| Net sales |
|
$ 291,768 |
|
$ - |
|
$ 255,405 |
|
$ - |
|
$ 1,072,149 |
|
$ - |
|
$ 851,573 |
|
$ - |
|
| Cost of sales |
|
226,818 |
|
- |
|
189,164 |
|
- |
|
831,541 |
|
(307) |
(1) |
658,750 |
|
- |
|
| Selling, general and administrative |
|
27,668 |
|
- |
|
26,889 |
|
- |
|
115,967 |
|
(1,814) |
(2) |
89,707 |
|
(1,398) |
(2) |
| Restructuring charges |
|
- |
|
- |
|
145 |
|
(145) |
(3) |
39 |
|
(39) |
(3) |
622 |
|
(622) |
(3) |
| EBITDA |
|
37,282 |
|
- |
|
39,207 |
|
145 |
|
124,602 |
|
2,160 |
|
102,494 |
|
2,020 |
|
| Depreciation and amortization |
|
10,189 |
|
- |
|
11,378 |
|
- |
|
42,732 |
|
- |
|
47,229 |
|
(968) |
(4) |
| Operating income |
|
27,093 |
|
- |
|
27,829 |
|
145 |
|
81,870 |
|
2,160 |
|
55,265 |
|
2,988 |
|
| Interest expense |
|
(542) |
|
- |
|
(935) |
|
- |
|
(2,530) |
|
- |
|
(5,245) |
|
- |
|
| Other, net |
|
109 |
|
(63) |
(5) |
164 |
|
(333) |
(5) |
754 |
|
98 |
(5) |
280 |
|
57 |
(5) |
| Income before income taxes |
|
26,660 |
|
(63) |
|
27,058 |
|
(188) |
|
80,094 |
|
2,258 |
|
50,300 |
|
3,045 |
|
| Income tax expense |
|
(5,762) |
|
12 |
(6) |
(4,906) |
|
20 |
(6) |
(23,114) |
|
(649) |
(6) |
(11,804) |
|
(827) |
(6) |
| Net income |
|
$ 20,898 |
|
$ (51) |
|
$ 22,152 |
|
$ (168) |
|
$ 56,980 |
|
$ 1,609 |
|
$ 38,496 |
|
$ 2,218 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted earnings per share |
|
$ 0.62 |
|
|
|
$ 0.68 |
|
|
|
$ 1.70 |
|
|
|
$ 1.17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) Loss on damage to a plant caused by flooding of $0.3 million for the twelve months ended October 31, 2021. |
| (2) Loss on a sale of a plant of $1.8 million in the twelve months ended October 31, 2021 and executive severance charges of $1.3 million in the twelve months ended October 31, 2020. |
| (3) Restructuring charges related to the closure of manufacturing plant facilities. |
| (4) Accelerated depreciation related to the closure of a North American Cabinet Components plant. |
| (5) Foreign currency transaction (gains) losses. |
| (6) 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 October 31, 2021 |
|
|
|
|
|
|
|
|
|
|
| Net sales |
|
$ |
156,255 |
|
|
$ |
69,737 |
|
|
$ |
66,583 |
|
|
$ |
(807 |
) |
|
$ |
291,768 |
|
| Cost of sales |
|
|
122,078 |
|
|
|
49,402 |
|
|
|
55,718 |
|
|
|
(380 |
) |
|
|
226,818 |
|
| Gross Margin |
|
|
34,177 |
|
|
|
20,335 |
|
|
|
10,865 |
|
|
|
(427 |
) |
|
|
64,950 |
|
| Gross Margin % |
|
|
21.9 |
% |
|
|
29.2 |
% |
|
|
16.3 |
% |
|
|
|
|
22.3 |
% |
| Selling, general and administrative |
|
|
14,015 |
|
|
|
8,335 |
|
|
|
5,456 |
|
|
|
(138 |
) |
|
|
27,668 |
|
| Depreciation and amortization |
|
|
4,202 |
|
|
|
2,602 |
|
|
|
3,298 |
|
|
|
87 |
|
|
|
10,189 |
|
| Operating income (loss) |
|
|
15,960 |
|
|
|
9,398 |
|
|
|
2,111 |
|
|
|
(376 |
) |
|
|
27,093 |
|
| Depreciation and amortization |
|
|
4,202 |
|
|
|
2,602 |
|
|
|
3,298 |
|
|
|
87 |
|
|
|
10,189 |
|
| EBITDA |
|
|
20,162 |
|
|
|
12,000 |
|
|
|
5,409 |
|
|
|
(289 |
) |
|
|
37,282 |
|
| Adjusted EBITDA |
|
$ |
20,162 |
|
|
$ |
12,000 |
|
|
$ |
5,409 |
|
|
$ |
(289 |
) |
|
$ |
37,282 |
|
| Adjusted EBITDA Margin % |
|
|
12.9 |
% |
|
|
17.2 |
% |
|
|
8.1 |
% |
|
|
|
|
12.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
| Three months ended October 31, 2020 |
|
|
|
|
|
|
|
|
|
|
| Net sales |
|
$ |
141,983 |
|
|
$ |
56,823 |
|
|
$ |
57,465 |
|
|
$ |
(866 |
) |
|
$ |
255,405 |
|
| Cost of sales |
|
|
105,323 |
|
|
|
36,725 |
|
|
|
47,546 |
|
|
|
(430 |
) |
|
|
189,164 |
|
| Gross Margin |
|
|
36,660 |
|
|
|
20,098 |
|
|
|
9,919 |
|
|
|
(436 |
) |
|
|
66,241 |
|
| Gross Margin % |
|
|
25.8 |
% |
|
|
35.4 |
% |
|
|
17.3 |
% |
|
|
|
|
25.9 |
% |
| Selling, general and administrative |
|
|
12,883 |
|
|
|
6,739 |
|
|
|
5,270 |
|
|
|
1,997 |
|
|
|
26,889 |
|
| Restructuring charges |
|
|
67 |
|
|
|
- |
|
|
|
78 |
|
|
|
- |
|
|
|
145 |
|
| Depreciation and amortization |
|
|
5,243 |
|
|
|
2,423 |
|
|
|
3,593 |
|
|
|
119 |
|
|
|
11,378 |
|
| Operating income (loss) |
|
|
18,467 |
|
|
|
10,936 |
|
|
|
978 |
|
|
|
(2,552 |
) |
|
|
27,829 |
|
| Depreciation and amortization |
|
|
5,243 |
|
|
|
2,423 |
|
|
|
3,593 |
|
|
|
119 |
|
|
|
11,378 |
|
| EBITDA |
|
|
23,710 |
|
|
|
13,359 |
|
|
|
4,571 |
|
|
|
(2,433 |
) |
|
|
39,207 |
|
| Restructuring charges |
|
|
67 |
|
|
|
- |
|
|
|
78 |
|
|
|
- |
|
|
|
145 |
|
| Adjusted EBITDA |
|
$ |
23,777 |
|
|
$ |
13,359 |
|
|
$ |
4,649 |
|
|
$ |
(2,433 |
) |
|
$ |
39,352 |
|
| Adjusted EBITDA Margin % |
|
|
16.7 |
% |
|
|
23.5 |
% |
|
|
8.1 |
% |
|
|
|
|
15.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
| Twelve months ended October 31, 2021 |
|
|
|
|
|
|
|
|
|
|
| Net sales |
|
$ |
578,332 |
|
|
$ |
251,599 |
|
|
$ |
246,075 |
|
|
$ |
(3,857 |
) |
|
$ |
1,072,149 |
|
| Cost of sales |
|
|
450,356 |
|
|
|
172,033 |
|
|
|
211,088 |
|
|
|
(1,936 |
) |
|
|
831,541 |
|
| Gross Margin |
|
|
127,976 |
|
|
|
79,566 |
|
|
|
34,987 |
|
|
|
(1,921 |
) |
|
|
240,608 |
|
| Gross Margin % |
|
|
22.1 |
% |
|
|
31.6 |
% |
|
|
14.2 |
% |
|
|
|
|
22.4 |
% |
| Selling, general and administrative |
|
|
52,959 |
|
|
|
29,894 |
|
|
|
20,828 |
|
|
|
12,286 |
|
|
|
115,967 |
|
| Restructuring charges |
|
|
39 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
39 |
|
| Depreciation and amortization |
|
|
18,730 |
|
|
|
10,373 |
|
|
|
13,263 |
|
|
|
366 |
|
|
|
42,732 |
|
| Operating income (loss) |
|
|
56,248 |
|
|
|
39,299 |
|
|
|
896 |
|
|
|
(14,573 |
) |
|
|
81,870 |
|
| Depreciation and amortization |
|
|
18,730 |
|
|
|
10,373 |
|
|
|
13,263 |
|
|
|
366 |
|
|
|
42,732 |
|
| EBITDA |
|
|
74,978 |
|
|
|
49,672 |
|
|
|
14,159 |
|
|
|
(14,207 |
) |
|
|
124,602 |
|
| Loss on the damage of a plant |
|
|
- |
|
|
|
307 |
|
|
|
- |
|
|
|
- |
|
|
|
307 |
|
| Loss on sale of plant |
|
|
375 |
|
|
|
- |
|
|
|
- |
|
|
|
1,439 |
|
|
|
1,814 |
|
| Restructuring charges |
|
|
39 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
39 |
|
| Adjusted EBITDA |
|
$ |
75,392 |
|
|
$ |
49,979 |
|
|
$ |
14,159 |
|
|
$ |
(12,768 |
) |
|
$ |
126,762 |
|
| Adjusted EBITDA Margin % |
|
|
13.0 |
% |
|
|
19.9 |
% |
|
|
5.8 |
% |
|
|
|
|
11.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
| Twelve months ended October 31, 2020 |
|
|
|
|
|
|
|
|
|
|
| Net sales |
|
$ |
483,415 |
|
|
$ |
161,054 |
|
|
$ |
210,099 |
|
|
$ |
(2,995 |
) |
|
$ |
851,573 |
|
| Cost of sales |
|
|
371,811 |
|
|
|
108,781 |
|
|
|
179,804 |
|
|
|
(1,646 |
) |
|
|
658,750 |
|
| Gross Margin |
|
|
111,604 |
|
|
|
52,273 |
|
|
|
30,295 |
|
|
|
(1,349 |
) |
|
|
192,823 |
|
| Gross Margin % |
|
|
23.1 |
% |
|
|
32.5 |
% |
|
|
14.4 |
% |
|
|
|
|
22.6 |
% |
| Selling, general and administrative |
|
|
47,845 |
|
|
|
22,729 |
|
|
|
18,738 |
|
|
|
395 |
|
|
|
89,707 |
|
| Restructuring charges |
|
|
295 |
|
|
|
- |
|
|
|
327 |
|
|
|
- |
|
|
|
622 |
|
| Depreciation and amortization |
|
|
23,555 |
|
|
|
9,468 |
|
|
|
13,732 |
|
|
|
474 |
|
|
|
47,229 |
|
| Operating income (loss) |
|
|
39,909 |
|
|
|
20,076 |
|
|
|
(2,502 |
) |
|
|
(2,218 |
) |
|
|
55,265 |
|
| Depreciation and amortization |
|
|
23,555 |
|
|
|
9,468 |
|
|
|
13,732 |
|
|
|
474 |
|
|
|
47,229 |
|
| EBITDA |
|
|
63,464 |
|
|
|
29,544 |
|
|
|
11,230 |
|
|
|
(1,744 |
) |
|
|
102,494 |
|
| Transaction and advisory fees |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
55 |
|
|
|
55 |
|
| Executive severance charges |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,343 |
|
|
|
1,343 |
|
| Restructuring charges |
|
|
295 |
|
|
|
- |
|
|
|
327 |
|
|
|
- |
|
|
|
622 |
|
| Adjusted EBITDA |
|
$ |
63,759 |
|
|
$ |
29,544 |
|
|
$ |
11,557 |
|
|
$ |
(346 |
) |
|
$ |
104,514 |
|
| Adjusted EBITDA Margin % |
|
|
13.2 |
% |
|
|
18.3 |
% |
|
|
5.5 |
% |
|
|
|
|
12.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
QUANEX BUILDING PRODUCTS CORPORATION
|
|
| SALES ANALYSIS |
|
| (In thousands) |
|
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
|
October 31, 2021 |
October 31, 2020 |
October 31, 2021 |
|
October 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
| NA Fenestration: |
|
|
|
|
|
|
|
|
|
United States - fenestration |
$ |
137,825 |
|
|
$ |
125,522 |
|
|
$ |
507,634 |
|
|
$ |
427,616 |
|
|
|
International - fenestration |
|
8,854 |
|
|
|
9,301 |
|
|
|
34,610 |
|
|
|
28,585 |
|
|
|
United States - non-fenestration |
|
6,991 |
|
|
|
5,500 |
|
|
|
24,534 |
|
|
|
19,279 |
|
|
|
International - non-fenestration |
|
2,585 |
|
|
|
1,660 |
|
|
|
11,554 |
|
|
|
7,935 |
|
|
|
|
$ |
156,255 |
|
|
$ |
141,983 |
|
|
$ |
578,332 |
|
|
$ |
483,415 |
|
|
| EU Fenestration (1): |
|
|
|
|
|
|
|
|
|
International - fenestration |
$ |
52,439 |
|
|
$ |
46,699 |
|
|
$ |
199,511 |
|
|
$ |
134,432 |
|
|
|
International - non-fenestration |
|
17,298 |
|
|
|
10,124 |
|
|
|
52,088 |
|
|
|
26,622 |
|
|
|
|
$ |
69,737 |
|
|
$ |
56,823 |
|
|
$ |
251,599 |
|
|
$ |
161,054 |
|
|
| NA Cabinet Components: |
|
|
|
|
|
|
|
|
|
United States - fenestration |
$ |
3,615 |
|
|
$ |
3,381 |
|
|
$ |
13,326 |
|
|
$ |
11,842 |
|
|
|
United States - non-fenestration |
|
62,251 |
|
|
|
53,641 |
|
|
|
230,559 |
|
|
|
196,479 |
|
|
|
International - non-fenestration |
|
717 |
|
|
|
443 |
|
|
|
2,190 |
|
|
|
1,778 |
|
|
|
|
$ |
66,583 |
|
|
$ |
57,465 |
|
|
$ |
246,075 |
|
|
$ |
210,099 |
|
|
| Unallocated Corporate & Other: |
|
|
|
|
|
|
|
|
|
Eliminations |
$ |
(807 |
) |
|
$ |
(866 |
) |
|
$ |
(3,857 |
) |
|
$ |
(2,995 |
) |
|
|
|
$ |
(807 |
) |
|
$ |
(866 |
) |
|
$ |
(3,857 |
) |
|
$ |
(2,995 |
) |
|
|
|
|
|
|
|
|
|
|
|
| Net Sales |
$ |
291,768 |
|
|
$ |
255,405 |
|
|
$ |
1,072,149 |
|
|
$ |
851,573 |
|
|
|
|
|
|
|
|
|
|
|
|
| (1) Reflects increase of $2.5 million and $11.8 million in revenue associated with foreign currency exchange rate impacts for the three and twelve months ended October 31, 2021, respectively. |
|
|
|
|
|
|
|
|
|
|
|
