American Woodmark Corp. (NASDAQ:AMWD) Q2 2021 Earnings Conference Call - Final Transcript

Nov 24, 2020 • 11:00 am ET

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American Woodmark Corp. (NASDAQ:AMWD) Q2 2021 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day and welcome to the American Woodmark Corporation Second Fiscal Quarter 2021 Conference Call. Today's call is being recorded, November 24, 2020.

During this call, the company may discuss certain non-GAAP financial measures included in our earnings release, such as adjusted net income, adjusted EBITDA, adjusted EBITDA margin and free cash flow, net leverage and adjusted EPS per diluted share. The earnings release, which can be found on our website americanwoodmark.com, includes definition of each of these non-GAAP financial measures, the company's rationale for their usage and a reconciliation of these non-GAAP financial measures to the most comparable GAAP financial measures. We also use our website to publish other information that may be important to investors, such as investor presentations.

We will begin the call by reading the company's Safe Harbor statement under the Private Securities Litigation 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 SEC and the Annual Report to shareholders. 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.

I'd now like to turn the call over to Mr. Paul Joachimcyzk, Vice President and CEO [CFO]. Please go ahead, sir.

Executive
Paul Joachimcyzk

Good morning, ladies and gentlemen. Welcome to American Woodmark's second fiscal quarter conference call. Thank you for taking the time to participate. Joining me today is Scott Culbreth, President and CEO. Scott will begin with a review of the quarter and I'll add additional details regarding our financial performance. After our comments, we'll be happy to answer your questions. Scott?

Executive
M. Scott Culbreth

Thank you, Paul. And thanks to everyone for joining us today for our second fiscal quarter earnings call. I hope that you and your loved ones continue to remain safe. Our teams did an exceptional job of delivering results in the quarter.

Our second quarter sales were up 4.8%. Within new construction, our business declined 7.4% versus prior year as we felt the impacts from COVID-related restrictions on prior period starts. Our Timberlake direct business comped positive low single-digits on units, while our frameless PCS business continued to comp negatively in Southern California. Our national builders are optimistic for the remainder of our fiscal year due to strong order growth over the prior months. Capacity of the manufacturing trade base to keep up with demand, rising prices of potential COVID-related restrictions could slow future build rates. Lot supply and community count growth are also key indicators we're watching closely.

Our incoming order rates for the Timberlake business increased throughout the quarter, building backlog across our MTO platform. As a reminder, we level load our