Latest news with #ScottCulbreth
Yahoo
30-05-2025
- Business
- Yahoo
AMWD Q1 Earnings Call: Revenue Below Expectations, Guidance Impacted by Tariff Uncertainty
Cabinet manufacturing company American Woodmark (NASDAQ:AMWD) missed Wall Street's revenue expectations in Q1 CY2025, with sales falling 11.7% year on year to $400.4 million. Its non-GAAP EPS of $1.61 per share was 13.4% above analysts' consensus estimates. Is now the time to buy AMWD? Find out in our full research report (it's free). Revenue: $400.4 million (11.7% year-on-year decline) Adjusted EPS: $1.61 vs analyst estimates of $1.42 (13.4% beat) EBITDA guidance for the upcoming financial year 2026 is $187.5 million at the midpoint, below analyst estimates of $206.4 million Adjusted EBITDA Margin: 11.8% Market Capitalization: $840.2 million American Woodmark's first quarter performance was shaped by declining demand in both the new construction and remodel markets, as persistent uncertainty around tariffs and soft consumer confidence weighed on sales. CEO Scott Culbreth cited a broad-based, low double-digit decline across all channels, with new construction markets such as Florida, Texas, and the Southwest particularly affected. In contrast, the company's Pro business managed a positive comparison against the prior year, supported by targeted product offerings. Management attributed the quarter's margin performance to operational adjustments, including facility improvements and cost-saving initiatives, which partially offset higher input costs and fixed cost deleverage. Looking ahead, management expects challenging demand conditions to persist, especially in the first half of the year, and highlighted significant uncertainty related to tariffs as a major driver of the company's guidance. CFO Paul Joachimczyk stated that adjusted EBITDA projections account for potential tariff-related costs and modeled a wide range of recovery scenarios. CEO Scott Culbreth emphasized that removing tariff uncertainty would be critical, noting, 'when we have day-to-day changes and impacts... projecting is challenging.' The company anticipates a gradual recovery in the second half of the year, contingent on improvements in consumer confidence and a possible reduction in mortgage interest rates to stimulate housing activity. Management attributed the quarter's performance to weaker demand in core housing markets, tariff-related uncertainty, and cost pressures, while pointing to operational improvements and product innovation as partial offsets. Tariff and policy uncertainty: Ongoing uncertainty around tariffs created demand headwinds and complicated planning, as management modeled a variety of cost recovery scenarios based on evolving trade policies. Housing market softness: Declines in both new construction and remodel activity were tied to broader weakness in existing home sales and consumer hesitation, with specific regional declines in Florida, Texas, and the Southwest. Product mix and average order size: The company experienced an unfavorable mix shift in made-to-order offerings, as builders moved toward lower-priced options and reduced cabinet counts per home, impacting revenue and margins. Operational initiatives: Facility expansions in Monterrey, Mexico and Hamlet, North Carolina, as well as automation investments, contributed to improved manufacturing efficiency and are expected to generate ongoing savings. Digital transformation progress: Investments in cloud-based enterprise resource planning (ERP) systems, cybersecurity, and digital content tools have improved performance in digital channels and positioned the company to better serve home center partners and independent dealers. Management expects continued macroeconomic and policy-related headwinds, with tariff impacts, consumer confidence, and housing market trends as the primary factors shaping the outlook. Tariff impact and recovery scenarios: The company's guidance for the year incorporates approximately $20 million in tariff-related costs, with a range of outcomes depending on policy changes and the ability to recover these costs through pricing or operational offsets. Housing and consumer sentiment: Future performance is closely tied to the pace of existing home sales and mortgage rate movements, as management believes higher housing activity and improved consumer confidence would create more opportunities for cabinet sales in both new construction and remodel markets. Cost inflation and automation benefits: Commodity and labor cost inflation are expected to persist, but management plans to mitigate these pressures through productivity improvements and continued automation investments, with initial projects already reducing labor needs and further savings anticipated from facility optimization initiatives. In the quarters ahead, the StockStory team will closely watch (1) the resolution and policy direction of tariffs and their impact on cost recovery, (2) early indicators of a rebound in housing activity and consumer confidence that could lift demand, and (3) the realization of operational savings from automation and facility optimization. Progress in digital transformation and the company's ability to respond to shifting customer preferences will also be important markers of execution. American Woodmark currently trades at a forward P/E ratio of 9.4×. Should you double down or take your chips? The answer lies in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
Yahoo
29-05-2025
- Business
- Yahoo
American Woodmark (NASDAQ:AMWD) Misses Q1 Revenue Estimates
Cabinet manufacturing company American Woodmark (NASDAQ:AMWD) fell short of the market's revenue expectations in Q1 CY2025, with sales falling 11.7% year on year to $400.4 million. Its non-GAAP profit of $1.61 per share was 13.4% above analysts' consensus estimates. Is now the time to buy American Woodmark? Find out in our full research report. Revenue: $400.4 million vs analyst estimates of $428.8 million (11.7% year-on-year decline, 6.6% miss) Adjusted EPS: $1.61 vs analyst estimates of $1.42 (13.4% beat) Adjusted EBITDA: $47.1 million vs analyst estimates of $49.17 million (11.8% margin, 4.2% miss) EBITDA guidance for the upcoming financial year 2026 is $187.5 million at the midpoint, below analyst estimates of $206.4 million Operating Margin: 7.4%, down from 8.4% in the same quarter last year Market Capitalization: $840.2 million 'Demand for our products in the new construction and remodel market were weaker than expected as uncertainty regarding tariff policies and declining consumer confidence slowed foot traffic with builders and retailers. However, our teams continued to execute well and delivered Adjusted EBITDA margins of 11.8% for the fourth fiscal quarter,' said Scott Culbreth, President and CEO. Starting as a small millwork shop, American Woodmark (NASDAQ:AMWD) is a cabinet manufacturing company that helps customers from inspiration to installation. A company's long-term performance is an indicator of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Unfortunately, American Woodmark struggled to consistently increase demand as its $1.71 billion of sales for the trailing 12 months was close to its revenue five years ago. This was below our standards and suggests it's a low quality business. We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. American Woodmark's recent performance shows its demand remained suppressed as its revenue has declined by 9% annually over the last two years. This quarter, American Woodmark missed Wall Street's estimates and reported a rather uninspiring 11.7% year-on-year revenue decline, generating $400.4 million of revenue. Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months. While this projection suggests its newer products and services will catalyze better top-line performance, it is still below the sector average. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. American Woodmark was profitable over the last five years but held back by its large cost base. Its average operating margin of 6.4% was weak for an industrials business. This result isn't too surprising given its low gross margin as a starting point. On the plus side, American Woodmark's operating margin rose by 1.6 percentage points over the last five years. This quarter, American Woodmark generated an operating profit margin of 7.4%, down 1.1 percentage points year on year. Since American Woodmark's gross margin decreased more than its operating margin, we can assume its recent inefficiencies were driven more by weaker leverage on its cost of sales rather than increased marketing, R&D, and administrative overhead expenses. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. American Woodmark's EPS was flat over the last five years, just like its revenue. This performance was underwhelming across the board. Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. Although it wasn't great, American Woodmark's two-year annual EPS declines of 6.7% topped its two-year revenue performance. In Q1, American Woodmark reported EPS at $1.61, down from $1.70 in the same quarter last year. Despite falling year on year, this print easily cleared analysts' estimates. Over the next 12 months, Wall Street expects American Woodmark's full-year EPS of $6.63 to shrink by 6.4%. We enjoyed seeing American Woodmark beat analysts' EPS expectations this quarter. On the other hand, its revenue and EBITDA missed as well as its full-year EBITDA guidance. Overall, this was a weaker quarter. The stock traded down 1.7% to $55.58 immediately after reporting. The latest quarter from American Woodmark's wasn't that good. One earnings report doesn't define a company's quality, though, so let's explore whether the stock is a buy at the current price. The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-05-2025
- Business
- Yahoo
American Woodmark Announces Fiscal Fourth Quarter and Fiscal Year Results
Fiscal Fourth Quarter 2025 Financial Highlights: Net sales decreased 11.7% year-over-year to $400.4 million Net income decreased 4.6% year-over-year to $25.6 million; 6.4% of net sales GAAP EPS of $1.71; Adjusted EPS of $1.61 Adjusted EBITDA decreased 13.9% year-over-year to $47.1 million; 11.8% of net sales Cash provided by operating activities of $44.8 million; free cash flow of $34.2 million Repurchased 417,298 shares for $27.6 million Fiscal 2025 Financial Highlights: Net sales decreased 7.5% year-over-year to $1,709.6 million Net income decreased 14.4% year-over-year to $99.5 million; 5.8% of net sales GAAP EPS of $6.50; Adjusted EPS of $6.90 Adjusted EBITDA decreased 17.5% year-over-year to $208.6 million; 12.2% of net sales Cash provided by operating activities of $108.4 million; free cash flow of $65.7 million Repurchased 1,169,710 shares for $96.7 million WINCHESTER, Va., May 29, 2025--(BUSINESS WIRE)--American Woodmark Corporation (NASDAQ: AMWD) (the "Company") today announced results for its fourth fiscal quarter ended April 30, 2025 and its fiscal year ended April 30, 2025. "Demand for our products in the new construction and remodel market were weaker than expected as uncertainty regarding tariff policies and declining consumer confidence slowed foot traffic with builders and retailers. However, our teams continued to execute well and delivered Adjusted EBITDA margins of 11.8% for the fourth fiscal quarter," said Scott Culbreth, President and CEO. "Demand trends are expected to remain challenging and our outlook for fiscal year 2026 ranges from low-single digit declines to low-single digit increases in net sales for the full fiscal year. We expect to outperform market growth rates but have widened our outlook due to uncertainty related to tariffs with net sales declines expected throughout the first half of the fiscal year." Fourth Quarter Results Net sales for the fourth quarter of fiscal 2025 decreased $52.9 million, or 11.7%, to $400.4 million compared with the same quarter of the prior fiscal year. Net income was $25.6 million ($1.71 per diluted share and 6.4% of net sales) compared with $26.8 million ($1.69 per diluted share) in the same quarter of the prior fiscal year. Net income for the fourth quarter of fiscal 2025 decreased $1.2 million. This was due to a decrease in net sales combined with increases in material and transportation costs. These increases were partially offset by operational efficiencies and reductions in our incentive compensation costs and controlled spending across all functions. Adjusted EPS per diluted share was $1.61 for the fourth quarter of fiscal 2025 compared with $1.781 in the same quarter of the prior fiscal year. Adjusted EBITDA for the fourth quarter of fiscal 2025 decreased $7.6 million, or 13.9%, to $47.1 million, or 11.8% of net sales, compared to $54.7 million, or 12.1% of net sales, for the same quarter of the prior fiscal year. Fiscal Year Results Net sales for the fiscal year ended April 30, 2025 decreased 7.5% to $1,709.6 million from the prior fiscal year. Net income for the current fiscal year was $99.5 million ($6.50 per diluted share and 5.8% of net sales) compared with net income of $116.2 million ($7.15 per diluted share) for the prior fiscal year. Net income for fiscal 2025 decreased due to lower net sales and fixed cost deleverage and rising input costs, partially offset by the roll-off of acquisition-related intangible asset amortization, which ended in the third quarter of the prior fiscal year, operational efficiencies, lower incentive compensation and controlled spending across all functions. Adjusted EPS per diluted share was $6.90 for the current fiscal year compared with $8.601 for the prior fiscal year. Adjusted EBITDA for the current fiscal year was $208.6 million, or 12.2% of net sales, compared to $252.8 million, or 13.7% of net sales, for the prior fiscal year. Balance Sheet & Cash Flow As of April 30, 2025, the Company had $48.2 million in cash plus access to $314.2 million of additional availability under its revolving credit facility. Also, as of April 30, 2025, the Company had $197.5 million in term loan debt and $173.4 million drawn on its revolving credit facility. Cash provided by operating activities for the current fiscal year was $108.4 million and free cash flow totaled $65.7 million. The Company repurchased 417,298 shares, or approximately 2.8% of shares outstanding, for $27.6 million during the fourth quarter of fiscal 2025, and 1,169,710 shares, or approximately 7.5% of shares outstanding, for $96.7 million during fiscal 2025. As of April 30, 2025, $117.8 million of funds remained available from the amounts authorized by the Board to repurchase the Company's common stock. Fiscal 2026 Financial Outlook For fiscal 2026 the Company expects: Low-single digit declines to low-single digit increases in net sales for fiscal 2026 Adjusted EBITDA in the range of $175 million to $200 million "In response to the decline in sales attributable to macroeconomic factors, the teams successfully achieved a solid fourth fiscal quarter performance through operational enhancements and prudent spending measures across all functions," stated Paul Joachimczyk, Senior Vice President and Chief Financial Officer. "For fiscal year 2026, given the wider range expected on net sales and economic uncertainty, our targeted Adjusted EBITDA range is set at $175 million to $200 million." Our Adjusted EBITDA outlook excludes the impact of certain income and expense items that management believes are not part of underlying operations. Other items may include restructuring costs, interest expense, stock-based compensation expense, and certain tax items. Our outlook includes the known impact related to tariffs as of the release date. It does not reflect any other potential tariff impacts on Company expenses or market demand. The Company believes the dynamic nature of the tariffs, particularly related to the uncertainty of implementation, potential timing, and duration, limits its ability to estimate this information. We do not undertake to update this outlook as circumstances evolve. Our management cannot estimate on a forward-looking basis the impact of these income and expense items on its reported net income, which could be significant, are difficult to predict, and may be highly variable. As a result, the Company does not provide a reconciliation to the closest corresponding GAAP financial measure for its Adjusted EBITDA outlook. About American Woodmark American Woodmark celebrates the creativity in all of us. With over 7,800 employees and more than a dozen brands, we're one of the nation's largest cabinet manufacturers. From inspiration to installation, we help people find their unique style and turn their home into a space for self-expression. By partnering with major home centers, builders, and independent dealers and distributors, we spark the imagination of homeowners and designers and bring their vision to life. Across our service and distribution centers, our corporate office, and manufacturing facilities, you'll always find the same commitment to customer satisfaction, integrity, teamwork, and excellence. Visit to learn more and start building something distinctly your own. Use of Non-GAAP Financial Measures We have presented certain financial measures in this press release which have not been prepared in accordance with U.S. generally accepted accounting principles (GAAP). Definitions of our non-GAAP financial measures and a reconciliation to the most directly comparable financial measure calculated in accordance with GAAP are provided below following the financial highlights under the heading "Non-GAAP Financial Measures." Safe harbor statement under the Private Securities Litigation Reform Act of 1995: All forward-looking statements made by the Company involve material risks and uncertainties and are subject to change based on factors that may be beyond the Company's control. Accordingly, the Company's future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to, those described in the Company's filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K. The Company does not undertake to publicly update or revise its forward looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized. AMERICAN WOODMARK CORPORATION Unaudited Financial Highlights (in thousands, except share data) Operating Results Three Months Ended Twelve Months Ended April 30, April 30, 2025 2024 2025 2024 Net sales $ 400,395 $ 453,278 $ 1,709,585 $ 1,847,502 Cost of sales & distribution 332,186 369,179 1,403,035 1,469,695 Gross profit 68,209 84,099 306,550 377,807 Sales & marketing expense 20,626 23,613 86,238 92,603 General & administrative expense 15,093 22,262 75,464 124,008 Restructuring charges, net 2,956 — 4,609 (198 ) Operating income 29,534 38,224 140,239 161,394 Interest expense, net 2,787 1,885 10,341 8,207 Other expense (income), net (5,125 ) 1,742 3,360 1,219 Income tax expense 6,306 7,799 27,082 35,752 Net income $ 25,566 $ 26,798 $ 99,456 $ 116,216 Earnings Per Share: Weighted average shares outstanding - diluted 14,912,419 15,881,015 15,299,261 16,260,222 Net income per diluted share $ 1.71 $ 1.69 $ 6.50 $ 7.15 Condensed Consolidated Balance Sheet (Unaudited) April 30, 2025 2024 Cash & cash equivalents $ 48,195 $ 87,398 Customer receivables 111,171 117,559 Inventories 178,111 159,101 Income taxes receivable 2,567 14,548 Other current assets 24,409 24,104 Total current assets 364,453 402,710 Property, plant & equipment, net 244,989 272,461 Operating lease assets, net 128,907 126,383 Goodwill 767,612 767,612 Other assets 64,608 24,699 Total assets $ 1,570,569 $ 1,593,865 Current portion - long-term debt $ 7,659 $ 2,722 Short-term operating lease liabilities 33,598 27,409 Accounts payable & accrued expenses 141,685 165,595 Total current liabilities 182,942 195,726 Long-term debt 365,825 371,761 Deferred income taxes — 5,002 Long-term operating lease liabilities 102,846 106,573 Other liabilities 2,958 4,427 Total liabilities 654,571 683,489 Stockholders' equity 915,998 910,376 Total liabilities & stockholders' equity $ 1,570,569 $ 1,593,865 Condensed Consolidated Statements of Cash Flows (Unaudited) Twelve Months Ended April 30, 2025 2024 Net cash provided by operating activities $ 108,447 $ 230,750 Net cash used by investing activities (42,658 ) (92,191 ) Net cash used by financing activities (104,992 ) (92,893 ) Net (decrease) increase in cash and cash equivalents (39,203 ) 45,666 Cash and cash equivalents, beginning of period 87,398 41,732 Cash and cash equivalents, end of period $ 48,195 $ 87,398 Non-GAAP Financial Measures We have reported our financial results in accordance with U.S. generally accepted accounting principles (GAAP). In addition, we have discussed our financial results using the non-GAAP measures described below. Management believes all of these non-GAAP financial measures provide an additional means of analyzing the current period's results against the corresponding prior period's results. However, these non-GAAP financial measures should be viewed in addition to, and not as a substitute for, the Company's reported results prepared in accordance with GAAP. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. EBITDA, Adjusted EBITDA and Adjusted EBITDA margin We use EBITDA, Adjusted EBITDA and Adjusted EBITDA margin in evaluating the performance of our business, and we use each in the preparation of our annual operating budgets and as indicators of business performance and profitability. We believe EBITDA, Adjusted EBITDA and Adjusted EBITDA margin allow us to readily view operating trends, perform analytical comparisons and identify strategies to improve operating performance. Additionally, Adjusted EBITDA is a key measurement used in our Term Loans to determine interest rates and financial covenant compliance. We define EBITDA as net income adjusted to exclude (1) income tax expense, (2) interest expense, net, (3) depreciation and amortization expense, and (4) amortization of customer relationship intangibles. We define Adjusted EBITDA as EBITDA adjusted to exclude (1) expenses related to the acquisition of RSI Home Products, Inc. ("RSI acquisition") (2) restructuring charges, net, (3) net gain/loss on debt modification, (4) stock-based compensation expense, (5) gain/loss on asset disposals, and (6) change in fair value of foreign exchange forward contracts. We believe Adjusted EBITDA, when presented in conjunction with comparable GAAP measures, is useful for investors because management uses Adjusted EBITDA in evaluating the performance of our business. We define Adjusted EBITDA margin as Adjusted EBITDA as a percentage of net sales. Adjusted EPS per diluted share We use Adjusted EPS per diluted share in evaluating the performance of our business and profitability. Management believes that this measure provides useful information to investors by offering additional ways of viewing the Company's results by providing an indication of performance and profitability excluding the impact of unusual and/or non-cash items. We define Adjusted EPS per diluted share as diluted earnings per share excluding the per share impact of (1) expenses related to the RSI acquisition, (2) restructuring charges, net, (3) the amortization of customer relationship intangibles, (4) net gain/loss on debt modification, (5) change in fair value of foreign exchange forward contracts, and (6) the tax benefit of RSI acquisition expenses, restructuring charges, the net gain/loss on debt modification, the amortization of customer relationship intangibles, and the change in fair value of foreign exchange forward contracts. The amortization of intangible assets is driven by the RSI acquisition. Management has determined that excluding amortization of intangible assets and change in fair value of foreign exchange forward contracts from our definition of Adjusted EPS per diluted share will better help it evaluate the performance of our business and profitability. During the second quarter of fiscal 2025, the Company changed its definition of Adjusted EPS per diluted share to exclude the change in fair value of foreign exchange forward contracts to be consistent with its definition of Adjusted EBITDA. Free cash flow To better understand trends in our business, we believe that it is helpful to subtract amounts for capital expenditures consisting of cash payments for property, plant and equipment and cash payments for investments in displays from cash from continuing operations which is how we define free cash flow. Management believes this measure gives investors an additional perspective on cash flow from operating activities in excess of amounts required for reinvestment. It also provides a measure of our ability to repay our debt obligations. Net leverage Net leverage is a performance measure that we believe provides investors a more complete understanding of our leverage position and borrowing capacity after factoring in cash and cash equivalents that eventually could be used to repay outstanding debt. We define net leverage as net debt (total debt less cash and cash equivalents) divided by the trailing 12 months Adjusted EBITDA. A reconciliation of these non-GAAP financial measures and the most directly comparable measures calculated and presented in accordance with GAAP are set forth on the following tables: Reconciliation of EBITDA, Adjusted EBITDA and Adjusted EBITDA margin Three Months Ended Twelve Months Ended April 30, April 30, (in thousands) 2025 2024 2025 2024 Net income (GAAP) $ 25,566 $ 26,798 $ 99,456 $ 116,216 Add back: Income tax expense 6,306 7,799 27,082 35,752 Interest expense, net 2,787 1,885 10,341 8,207 Depreciation and amortization expense 14,314 12,596 55,165 48,337 Amortization of customer relationship intangibles — — — 30,444 EBITDA (Non-GAAP) $ 48,973 $ 49,078 $ 192,044 $ 238,956 Add back: Acquisition related expenses (1) — — — 47 Restructuring charges, net (2) 2,956 — 4,609 (198 ) Net gain on debt modification (374 ) — (10 ) — Change in fair value of foreign exchange forward contracts (3) (4,731 ) 1,785 3,535 1,544 Stock-based compensation expense 43 3,496 7,989 10,682 Loss on asset disposal 234 319 463 1,742 Adjusted EBITDA (Non-GAAP) $ 47,101 $ 54,678 $ 208,630 $ 252,773 Net Sales $ 400,395 $ 453,278 $ 1,709,585 $ 1,847,502 Net income margin (GAAP) 6.4 % 5.9 % 5.8 % 6.3 % Adjusted EBITDA margin (Non-GAAP) 11.8 % 12.1 % 12.2 % 13.7 % (1) Acquisition related expenses are comprised of expenses related to the RSI acquisition. (2) Restructuring charges, net are comprised of expenses incurred related to the nationwide reduction-in-force implemented in the third and fourth quarters of fiscal 2023, the reduction in force implemented in the second quarter of fiscal 2025, and the closure of the manufacturing facility located in Orange, Virginia, which was announced in January 2025. (3) In the normal course of business, the Company is subject to risk from adverse fluctuations in foreign exchange rates. The Company manages these risks through the use of foreign exchange forward contracts. The changes in the fair value of the forward contracts are recorded in other expense (income), net in the operating results. Reconciliation of Net Income to Adjusted Net Income Three Months Ended Twelve Months Ended April 30, April 30, (in thousands, except share data) 2025 2024 2025 2024 Net income (GAAP) $ 25,566 $ 26,798 $ 99,456 $ 116,216 Add back: Acquisition related expenses — — — 47 Restructuring charges, net 2,956 — 4,609 (198 ) Amortization of customer relationship intangibles — — — 30,444 Change in fair value of foreign exchange forward contracts (1) (4,731 ) 1,785 3,535 1,544 Net gain on debt modification (374 ) — (10 ) — Tax benefit of add backs 571 (338 ) (2,082 ) (8,182 ) Adjusted net income (Non-GAAP) $ 23,988 $ 28,245 $ 105,508 $ 139,871 Weighted average diluted shares (GAAP) 14,912,419 15,881,015 15,299,261 16,260,222 EPS per diluted share (GAAP) $ 1.71 $ 1.69 $ 6.50 $ 7.15 Adjusted EPS per diluted share (Non-GAAP) $ 1.61 $ 1.78 $ 6.90 $ 8.60 (1) Change in fair value of foreign exchange forward contracts was excluded from Adjusted EPS per diluted share beginning in the second quarter of fiscal 2025 to be consistent with the Company's definition of Adjusted EBITDA. Prior period amounts have been adjusted to conform to current period presentation. Free Cash Flow Twelve Months Ended April 30, 2025 2024 Cash provided by operating activities $ 108,447 $ 230,750 Less: Capital expenditures (1) 42,763 92,241 Free cash flow (Non-GAAP) $ 65,684 $ 138,509 (1) Capital expenditures consist of cash payments for property, plant and equipment and cash payments for investments in displays. Net Leverage Twelve Months Ended April 30, (in thousands) 2025 Net income (GAAP) $ 99,456 Add back: Income tax expense 27,082 Interest expense, net 10,341 Depreciation and amortization expense 55,165 EBITDA (Non-GAAP) $ 192,044 Add back: Restructuring charges, net (1) 4,609 Net gain on debt modification (10 ) Change in fair value of foreign exchange forward contracts (2) 3,535 Stock-based compensation expense 7,989 Loss on asset disposal 463 Adjusted EBITDA (Non-GAAP) $ 208,630 As of April 30, 2025 Current maturities of long-term debt $ 7,659 Long-term debt, less current maturities 365,825 Total debt 373,484 Less: cash and cash equivalents (48,195 ) Net debt $ 325,289 Net leverage (3) 1.56 (1) Restructuring charges, net are comprised of expenses incurred related to the nationwide reduction-in-force implemented in the third and fourth quarters of fiscal 2023, the reduction in force implemented in the second quarter of fiscal 2025, and the closure of the manufacturing facility located in Orange, Virginia, which was announced in January 2025. (2) In the normal course of business the Company is subject to risk from adverse fluctuations in foreign exchange rates. The Company manages these risks through the use of foreign exchange forward contracts. The changes in the fair value of the forward contracts are recorded in other (income) expense, net in the operating results. (3) Net debt divided by Adjusted EBITDA for the twelve months ended April 30, 2025. View source version on Contacts Kevin DunniganVP & Treasurer540-665-9100 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
