Quanex Building Products Announces First Quarter 2024 Results and Provides Full Year 2024 Guidance
- Margin expansion achieved despite market challenges.
- Repaid $5 million in bank debt during the quarter.
- Maintained a strong balance sheet and liquidity position.
- Cautiously optimistic for the second half of 2024.
- Positive long-term view on the residential housing market.
- Net sales decreased to $239.2 million in the first quarter of 2024.
- Improvements in gross margin and adjusted EBITDA.
- Total debt of $65.2 million with a leverage ratio of 0.1x.
- Expecting net sales of approximately $1.1 billion for fiscal 2024.
- Anticipating $145-150 million in Adjusted EBITDA for fiscal 2024.
- None.
Insights
An examination of Quanex Building Products Corporation's financial results reveals several key takeaways that are significant from a financial perspective. Firstly, the gross margin expansion from 19.8% to 21.5% despite a decrease in net sales indicates a strong focus on cost control and operational efficiency. This is particularly notable in an environment of softer market demand and pricing pressures. The ability of the company to repay $5 million in bank debt and maintain a strong balance sheet with a leverage ratio of Net Debt to LTM Adjusted EBITDA at 0.1x is a testament to their cash management and financial prudence.
However, the decline in net sales across its segments, with a notable 21.1% drop in the North American Cabinet Components segment, could be a cause for concern if the trend continues. Despite this, the company's guidance for fiscal 2024 indicates an expected net sales of approximately $1.1 billion and an Adjusted EBITDA of $145 million to $150 million, suggesting confidence in a recovery in the latter half of the year. This guidance, however, should be viewed with caution as it is based on current market conditions and the assumption of improving consumer confidence.
From a market research standpoint, Quanex's performance needs to be contextualized within the broader residential housing market. The company's positive long-term view is supported by the resilience of the housing market and demographic trends that drive demand for housing and related products. Nevertheless, the short-term cautious outlook reflects the current macroeconomic challenges that could affect consumer spending and housing investments. The strategic focus on both organic and inorganic growth opportunities suggests that Quanex is seeking to diversify and strengthen its market position in anticipation of future demand.
The company's ability to navigate pricing pressures and raw material cost fluctuations will be critical in maintaining margins. As a supplier of building products, Quanex's performance is closely tied to construction cycles and consumer confidence, both of which are currently facing headwinds from economic uncertainty. Investors should monitor housing starts, building permits and macroeconomic indicators that could signal shifts in the market that would directly affect Quanex's business.
Analyzing Quanex's financial results from an economic perspective, the impact of macroeconomic factors such as interest rates, inflation and overall economic growth cannot be overstated. The company's cautious stance for the first half of 2024 aligns with broader economic uncertainties that may dampen consumer spending and investment in housing. However, the unchanged leverage ratio and strong liquidity position indicate that the company is well-equipped to weather potential economic downturns.
The seasonality of the business is also an important factor, as evidenced by the historical trend of being a net borrower in the first fiscal quarter. The repayment of bank debt in this typically challenging period suggests that Quanex has a solid seasonal strategy and cash flow management. Looking forward, the company's performance will be influenced by economic policies and the overall health of the economy, which in turn affects the residential housing market and demand for Quanex's products.
Margin Expansion on a Consolidated Basis
Repaid
Balance Sheet and Liquidity Remain Strong
Cautiously Optimistic on Second Half of 2024
Positive Long-Term View on Residential Housing Market Remains Intact
HOUSTON, March 07, 2024 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation (NYSE:NX) (“Quanex” or the “Company”) today announced its results for the three months ended January 31, 2024.
The Company reported the following selected financial results:
| Three Months Ended January 31, | |||||
| ($ in millions, except per share data) | 2024 | 2023 | |||
| Net Sales | |||||
| Gross Margin | |||||
| Gross Margin % | 21.5% | 19.8% | |||
| Net Income | |||||
| Diluted EPS | |||||
| Adjusted Net Income | |||||
| Adjusted Diluted EPS | |||||
| Adjusted EBITDA | |||||
| Adjusted EBITDA Margin % | 8.1% | 7.8% | |||
| Cash Provided by Operating Activities | |||||
| Free Cash Flow | ( | ( | |||
(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, “We were able to realize margin expansion on a consolidated basis for the first quarter of 2024 despite market volume softness related to normal seasonality combined with ongoing macroeconomic challenges, and some pricing pressure. Our focus on generating cash and managing working capital enabled us to pay down our bank debt by
First Quarter 2024 Results Summary
Quanex reported net sales of
The increase in earnings for the three months ended January 31, 2024 was mostly attributable to a decline in raw material costs, a decrease in stock-based compensation expense and lower interest expense.
Balance Sheet Update
As of January 31, 2024, Quanex had total debt of
Outlook
Mr. Wilson commented, “As mentioned on our December call, we entered this year with a somewhat cautious outlook for the first half due to the ongoing macroeconomic challenges, but we remain optimistic that demand for our products will improve in the second half as consumer confidence is restored over time. Based on conversations with our customers, recent demand trends, and the latest macro data, we are now comfortable providing guidance for fiscal 2024. Overall, on a consolidated basis, we estimate we will generate net sales of approximately
*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 8, 2024 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/BI8100cd976cdb4a18aa0a5bcef75a89d8
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, custom mixing 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, | ||||||||
| 2024 | 2023 | |||||||
| Net sales | $ | 239,155 | $ | 261,916 | ||||
| Cost of sales | 187,723 | 210,149 | ||||||
| Selling, general and administrative | 32,363 | 36,744 | ||||||
| Depreciation and amortization | 11,152 | 10,620 | ||||||
| Operating income | 7,917 | 4,403 | ||||||
| Interest expense | (1,068 | ) | (2,259 | ) | ||||
| Other, net | 1,042 | 218 | ||||||
| Income before income taxes | 7,891 | 2,362 | ||||||
| Income tax expense | (1,642 | ) | (453 | ) | ||||
| Net income | $ | 6,249 | $ | 1,909 | ||||
| Earnings per common share, basic | $ | 0.19 | $ | 0.06 | ||||
| Earnings per common share, diluted | $ | 0.19 | $ | 0.06 | ||||
| Weighted average common shares outstanding: | ||||||||
| Basic | 32,825 | 32,951 | ||||||
| Diluted | 33,043 | 33,137 | ||||||
| Cash dividends per share | $ | 0.08 | $ | 0.08 | ||||
| QUANEX BUILDING PRODUCTS CORPORATION | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (In thousands) | ||||||||
| (Unaudited) | ||||||||
| January 31, 2024 | October 31, 2023 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 44,422 | $ | 58,474 | ||||
| Accounts receivable, net | 80,063 | 97,311 | ||||||
| Inventories | 107,478 | 97,959 | ||||||
| Income taxes receivable | 7,642 | 8,298 | ||||||
| Prepaid and other current assets | 13,390 | 11,558 | ||||||
| Total current assets | 252,995 | 273,600 | ||||||
| Property, plant and equipment, net | 253,681 | 250,664 | ||||||
| Operating lease right-of-use assets | 46,370 | 46,620 | ||||||
| Goodwill | 185,439 | 182,956 | ||||||
| Intangible assets, net | 72,008 | 74,115 | ||||||
| Other assets | 2,927 | 3,188 | ||||||
| Total assets | $ | 813,420 | $ | 831,143 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 55,106 | $ | 74,371 | ||||
| Accrued liabilities | 46,478 | 50,319 | ||||||
| Income taxes payable | - | 384 | ||||||
| Current maturities of long-term debt | 2,500 | 2,365 | ||||||
| Current operating lease liabilities | 7,370 | 7,224 | ||||||
| Total current liabilities | 111,454 | 134,663 | ||||||
| Long-term debt | 61,594 | 66,435 | ||||||
| Noncurrent operating lease liabilities | 40,084 | 40,361 | ||||||
| Deferred income taxes | 30,737 | 29,133 | ||||||
| Other liabilities | 14,522 | 14,997 | ||||||
| Total liabilities | 258,391 | 285,589 | ||||||
| Stockholders’ equity: | ||||||||
| Common stock | 371 | 372 | ||||||
| Additional paid-in-capital | 248,715 | 251,576 | ||||||
| Retained earnings | 412,922 | 409,318 | ||||||
| Accumulated other comprehensive loss | (32,060 | ) | (38,141 | ) | ||||
| Treasury stock at cost | (74,919 | ) | (77,571 | ) | ||||
| Total stockholders’ equity | 555,029 | 545,554 | ||||||
| Total liabilities and stockholders' equity | $ | 813,420 | $ | 831,143 | ||||
| QUANEX BUILDING PRODUCTS CORPORATION | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW | |||||||
| (In thousands) | |||||||
| (Unaudited) | |||||||
| Three Months Ended January 31, | |||||||
| 2024 | 2023 | ||||||
| Operating activities: | |||||||
| Net income | $ | 6,249 | $ | 1,909 | |||
| Adjustments to reconcile net income to cash provided by operating activities: | |||||||
| Depreciation and amortization | 11,152 | 10,620 | |||||
| Stock-based compensation | 583 | 679 | |||||
| Deferred income tax | 1,136 | 179 | |||||
| Other, net | 1,790 | 1,509 | |||||
| Changes in assets and liabilities: | |||||||
| Decrease in accounts receivable | 18,147 | 20,502 | |||||
| (Increase) decrease in inventory | (8,756 | ) | 645 | ||||
| Increase in other current assets | (1,680 | ) | (1,431 | ) | |||
| Decrease in accounts payable | (19,044 | ) | (21,379 | ) | |||
| Decrease in accrued liabilities | (7,181 | ) | (12,686 | ) | |||
| Increase in income taxes payable | 264 | 536 | |||||
| Increase in deferred pension benefits | - | 7 | |||||
| Increase in other long-term liabilities | 852 | 1,461 | |||||
| Other, net | 342 | 584 | |||||
| Cash provided by operating activities | 3,854 | 3,135 | |||||
| Investing activities: | |||||||
| Business acquisition | - | (92,000 | ) | ||||
| Capital expenditures | (9,580 | ) | (7,582 | ) | |||
| Proceeds from disposition of capital assets | 31 | 98 | |||||
| Cash used for investing activities | (9,549 | ) | (99,484 | ) | |||
| Financing activities: | |||||||
| Borrowings under credit facilities | - | 102,000 | |||||
| Repayments of credit facility borrowings | (5,000 | ) | (15,000 | ) | |||
| Repayments of other long-term debt | (679 | ) | (579 | ) | |||
| Common stock dividends paid | (2,645 | ) | (2,661 | ) | |||
| Issuance of common stock | 400 | 99 | |||||
| Payroll tax paid to settle shares forfeited upon vesting of stock | (1,193 | ) | (545 | ) | |||
| Cash (used for) provided by financing activities | (9,117 | ) | 83,314 | ||||
| Effect of exchange rate changes on cash and cash equivalents | 760 | 997 | |||||
| Decrease in cash and cash equivalents | (14,052 | ) | (12,038 | ) | |||
| Cash and cash equivalents at beginning of period | 58,474 | 55,093 | |||||
| Cash and cash equivalents at end of period | $ | 44,422 | $ | 43,055 | |||
| 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, | |||||||||
| 2024 | 2023 | ||||||||
| Cash provided by operating activities | |||||||||
| Capital expenditures | (9,580) | (7,582) | |||||||
| Free Cash Flow | ($5,726) | ($4,447) | |||||||
| 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, | |||||||||
| 2024 | 2023 | ||||||||
| Revolving credit facility | |||||||||
| Finance lease obligations(1) | 55,211 | 55,122 | |||||||
| Total debt(2) | 65,211 | 155,122 | |||||||
| Less: Cash and cash equivalents | 44,422 | 43,055 | |||||||
| Net Debt | $20,789 | $112,067 | |||||||
| (1) Includes | |||||||||
| (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, 2024 | Three Months Ended October 31, 2023 | Three Months Ended July 31, 2023 | Three Months Ended April 30, 2023 | Total | |||||||||||||
| Reconciliation | Reconciliation | Reconciliation | Reconciliation | Reconciliation | ||||||||||||||
| Net income as reported | $ | 6,249 | $ | 27,382 | $ | 31,698 | $ | 21,512 | $ | 86,841 | ||||||||
| Income tax expense | 1,642 | 4,442 | 4,099 | 5,551 | 15,734 | |||||||||||||
| Other, net | (1,042 | ) | 6,110 | (402 | ) | 29 | 4,695 | |||||||||||
| Interest expense | 1,068 | 1,565 | 2,068 | 2,244 | 6,945 | |||||||||||||
| Depreciation and amortization | 11,152 | 11,194 | 10,596 | 10,456 | 43,398 | |||||||||||||
| EBITDA | 19,069 | 50,693 | 48,059 | 39,792 | 157,613 | |||||||||||||
| Cost of sales(1) | - | (35 | ) | - | 48 | 13 | ||||||||||||
| Selling, general and administrative(1),(2) | 205 | 109 | 395 | 63 | 772 | |||||||||||||
| Adjusted EBITDA | $ | 19,274 | $ | 50,767 | $ | 48,454 | $ | 39,903 | $ | 158,398 | ||||||||
| (1) Loss on damage to manufacturing facilities caused by weather. | ||||||||||||||||||
| (2) Transaction and advisory fees. | ||||||||||||||||||
| QUANEX BUILDING PRODUCTS CORPORATION | |||||||||||||||||||
| NON-GAAP FINANCIAL MEASURE DISCLOSURE | |||||||||||||||||||
| (In thousands, except per share data) | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Reconciliation of Adjusted Net Income and Adjusted EPS | Three Months Ended January 31, 2024 | Three Months Ended January 31, 2023 | |||||||||||||||||
| Net Income | Diluted EPS | Net Income | Diluted EPS | ||||||||||||||||
| Net income as reported | $ | 6,249 | $ | 0.19 | $ | 1,909 | $ | 0.06 | |||||||||||
| Net income reconciling items from below | (435 | ) | $ | (0.01 | ) | 4,154 | $ | 0.12 | |||||||||||
| Adjusted net income and adjusted EPS | $ | 5,814 | $ | 0.18 | $ | 6,063 | $ | 0.18 | |||||||||||
| Reconciliation of Adjusted EBITDA | Three Months Ended January 31, 2024 | Three Months Ended January 31, 2023 | |||||||||||||||||
| Reconciliation | Reconciliation | ||||||||||||||||||
| Net income as reported | $ | 6,249 | $ | 1,909 | |||||||||||||||
| Income tax expense | 1,642 | 453 | |||||||||||||||||
| Other, net | (1,042 | ) | (218 | ) | |||||||||||||||
| Interest expense | 1,068 | 2,259 | |||||||||||||||||
| Depreciation and amortization | 11,152 | 10,620 | |||||||||||||||||
| EBITDA | 19,069 | 15,023 | |||||||||||||||||
| EBITDA reconciling items from below | 205 | 5,448 | |||||||||||||||||
| Adjusted EBITDA | $ | 19,274 | $ | 20,471 | |||||||||||||||
| Reconciling Items | Three Months Ended January 31, 2024 | Three Months Ended January 31, 2023 | |||||||||||||||||
| Income Statement | Reconciling Items | Income Statement | Reconciling Items | ||||||||||||||||
| Net sales | $ | 239,155 | $ | - | $ | 261,916 | $ | - | |||||||||||
| Cost of sales | 187,723 | - | 210,149 | - | |||||||||||||||
| Selling, general and administrative | 32,363 | (205 | ) | (1 | ) | 36,744 | (5,448 | ) | (1 | ) | |||||||||
| EBITDA | 19,069 | 205 | 15,023 | 5,448 | |||||||||||||||
| Depreciation and amortization | 11,152 | - | 10,620 | - | |||||||||||||||
| Operating income | 7,917 | 205 | 4,403 | 5,448 | |||||||||||||||
| Interest expense | (1,068 | ) | - | (2,259 | ) | - | |||||||||||||
| Other, net | 1,042 | (755 | ) | (2 | ) | 218 | (42 | ) | (2 | ) | |||||||||
| Income before income taxes | 7,891 | (550 | ) | 2,362 | 5,406 | ||||||||||||||
| Income tax expense | (1,642 | ) | 115 | (3 | ) | (453 | ) | (1,252 | ) | (3 | ) | ||||||||
| Net income | $ | 6,249 | $ | (435 | ) | $ | 1,909 | $ | 4,154 | ||||||||||
| Diluted earnings per share | $ | 0.19 | $ | 0.06 | |||||||||||||||
| (1) Transaction and advisory fees. | |||||||||||||||||||
| (2) Pension settlement refund and foreign currency transaction losses (gains). | |||||||||||||||||||
| (3) Tax impact of net income reconciling items. | |||||||||||||||||||
| QUANEX BUILDING PRODUCTS CORPORATION | |||||||||||||||||||||
| SELECTED SEGMENT DATA | |||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| This table provides gross margin, operating income (loss), 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, 2024 | |||||||||||||||||||||
| Net sales | $ | 147,995 | $ | 49,437 | $ | 43,137 | $ | (1,414 | ) | $ | 239,155 | ||||||||||
| Cost of sales | 118,368 | 31,703 | 38,743 | (1,091 | ) | 187,723 | |||||||||||||||
| Gross Margin | 29,627 | 17,734 | 4,394 | (323 | ) | 51,432 | |||||||||||||||
| Gross Margin % | 20.0 | % | 35.9 | % | 10.2 | % | 21.5 | % | |||||||||||||
| Selling, general and administrative(1) | 15,910 | 7,745 | 5,126 | 3,582 | 32,363 | ||||||||||||||||
| Depreciation and amortization | 5,475 | 2,558 | 3,065 | 54 | 11,152 | ||||||||||||||||
| Operating income (loss) | 8,242 | 7,431 | (3,797 | ) | (3,959 | ) | 7,917 | ||||||||||||||
| Depreciation and amortization | 5,475 | 2,558 | 3,065 | 54 | 11,152 | ||||||||||||||||
| EBITDA | 13,717 | 9,989 | (732 | ) | (3,905 | ) | 19,069 | ||||||||||||||
| Transaction and advisory fees | - | - | - | 205 | 205 | ||||||||||||||||
| Adjusted EBITDA | $ | 13,717 | $ | 9,989 | $ | (732 | ) | $ | (3,700 | ) | $ | 19,274 | |||||||||
| Adjusted EBITDA Margin % | 9.3 | % | 20.2 | % | -1.7 | % | 8.1 | % | |||||||||||||
| 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(1) | 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 | % | |||||||||||||
| (1) Includes stock-based compensation expense of | |||||||||||||||||||||
| QUANEX BUILDING PRODUCTS CORPORATION | ||||||||
| SALES ANALYSIS | ||||||||
| (In thousands) | ||||||||
| (Unaudited) | ||||||||
| Three Months Ended October 31, | ||||||||
| 2024 | 2023 | |||||||
| NA Fenestration: | ||||||||
| United States - fenestration | $ | 111,634 | $ | 120,767 | ||||
| International - fenestration | 6,144 | 5,127 | ||||||
| United States - non-fenestration | 25,791 | 23,066 | ||||||
| International - non-fenestration | 4,426 | 4,020 | ||||||
| $ | 147,995 | $ | 152,980 | |||||
| EU Fenestration:(1) | ||||||||
| International - fenestration | $ | 41,751 | $ | 42,354 | ||||
| International - non-fenestration | 7,686 | 12,598 | ||||||
| $ | 49,437 | $ | 54,952 | |||||
| NA Cabinet Components: | ||||||||
| United States - fenestration | $ | 3,675 | $ | 3,908 | ||||
| United States - non-fenestration | 39,179 | 50,049 | ||||||
| International - non-fenestration | 283 | 717 | ||||||
| $ | 43,137 | $ | 54,674 | |||||
| Unallocated Corporate & Other: | ||||||||
| Eliminations | $ | (1,414 | ) | $ | (690 | ) | ||
| $ | (1,414 | ) | $ | (690 | ) | |||
| Net Sales | $ | 239,155 | $ | 261,916 | ||||
| (1) Reflects an increase of | ||||||||
FAQ
What were Quanex Building Products Corporation's (NYSE:NX) net sales for the first quarter of 2024?
How much debt did Quanex have as of January 31, 2024?
What is Quanex's outlook for fiscal 2024?
When is Quanex's conference call scheduled?
Where can participants find the live audio webcast of Quanex's conference call?
