Quanex Building Products Corporation Reports Third Quarter 2014 Results

Quanex Building Products Corporation Reports Third Quarter 2014 Results

• Net sales increased 8.4% to $170 million vs. $157 million in Q3 2013
• Q3 2014 diluted EPS from continuing operations of $0.23 vs. $0.14 in Q3 2013
• Q3 2014 EBITDA increases 19.4% to $21.2 million vs. $17.7 million in Q3 2013

Quanex Building Products Corporation (NYSE:NX), a leading supplier of window and door components, today released results for its third fiscal quarter ended July 31, 2014.

"With the building season in full swing, we saw good top line growth in all of our product lines, resulting in 8.4% revenue growth in the quarter," Chairman, President and CEO Bill Griffiths said. "Despite mixed signals coming from the building and construction sector, our North American fenestration sales for the last 12 months have grown 9% over the prior year. This compares favorably to preliminary U.S. window shipment growth of only 5.5% for the 12 months ended June 30, 2014 as reported by Ducker Worldwide, LLC, a market intelligence firm."

Third quarter 2014 income from continuing operations was $8.6 million compared to income from continuing operations of $5.1 million in the third quarter of 2013. Third quarter 2014 EBITDA was $21.2 million compared to $17.7 million in the third quarter of 2013. The improvement in income from continuing operations and EBITDA results were due to higher volume and lower overhead expenses.

Corporate and Other Items

Third quarter 2014 corporate costs were $5.6 million compared to $11.0 million in the third quarter of 2013. The reduction in corporate costs is primarily related to the cessation of the Company´s ERP implementation in fiscal 2013 and lower incentive related expense in the third quarter of 2014. Third quarter 2014 results included stock-based compensation costs of $0.9 million, compared to $0.4 million in the third quarter of 2013.

Third quarter 2014 cash balances totaled $134 million. For the year, cash provided by operating activities was $9.8 million (inclusive of discontinued operations) compared to $6.6 million in 2013. There were no outstanding borrowings against the revolving credit facility.

Additional information related to third quarter 2014 results, including a reconciliation of EBITDA (defined as net income or loss before interest, taxes, depreciation and amortization and other, net) and to its most comparable GAAP figure, can be found in the supplemental schedules accompanying this press release.