Quanex Building Products Announces Fourth Quarter and Fiscal Year 2021 Results

Rhea-AI Summary

Quanex Building Products Corporation (NYSE:NX) reported record revenue growth and earnings for FY21, with net sales of $1,072.1 million, up 25.9% year-over-year. Gross margin was 22.4%, while net income reached $57 million, resulting in diluted EPS of $1.70. The company achieved a $75 million share repurchase authorization, demonstrating confidence in its strong balance sheet, with a debt leverage ratio of 0.1x. Despite ongoing supply chain challenges and inflation, Quanex remains optimistic about achieving margin expansion as it approaches 2022, although it refrained from providing detailed guidance.

Positive

• Record revenue growth of 25.9% year-over-year.
• Diluted EPS increased to $1.70 from $1.17 year-over-year.
• Strong liquidity position with $322.6 million as of October 31, 2021.
• New $75 million share repurchase program authorized, reflecting confidence in growth.

Negative

• Earnings decreased in Q4 due to inflationary pressures and supply chain challenges.
• Gross margin percentage declined from 25.9% to 22.3% in Q4 2021.

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.

FAQ

What were Quanex's FY21 earnings results?

Quanex reported a net income of $57 million and diluted EPS of $1.70 for FY21.

How much was the new share repurchase program for NX?

The board authorized a new $75 million share repurchase program.

What was the revenue growth percentage for Quanex in FY21?

Quanex experienced a revenue growth of 25.9% in FY21.

How did supply chain issues impact Quanex's earnings?

Supply chain challenges and inflation led to a decrease in earnings for the fourth quarter.

When will Quanex provide guidance for 2022?

Quanex plans to revisit guidance when reporting earnings for the first quarter of 2022.