American Woodmark Corporation · NASDAQ:AMWD
American Woodmark — Investor Presentation (April 2019)
30 slides from American Woodmark's investor presentation, Apr 12, 2019
Slide 1: April 2019 Investor Presentation
April 2019 Investor Presentation Exhibit 99.1
Slide 2: Legal Disclosure
Legal Disclosure Forward-Looking Statements This communication contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements as to expected future financial and operating results. These forward-looking statements may be
Slide 3: CEO quote: With our people as our foundation
“With our people as our foundation, there is no limit to what we can accomplish.” Cary Dunston, Chairman & CEO
Slide 4: Creating Value Through People
Creating Value Through People American Woodmark focuses on our culture of caring throughout all levels of the company. This exemplifies our mission statement of creating value through people and our four guiding principles. Customer Satisfaction Provide the best possible quality, service and value t
Slide 5: Meet Our Leadership Team
Meet Our Leadership Team Our leaders operate with integrity, always staying true to American Woodmark's vision. S. Cary Dunston Chairman & CEO M. Scott Culbreth Senior Vice President Chief Financial Officer R. Perry Campbell Senior Vice President Sales and Marketing Rob Adams Senior Vice President V
Slide 6: Executive Summary
Executive Summary A quick look at our market strengths
Slide 7: Strategic Focus
Strategic Focus We make disciplined long-term strategic investments while still paying attention to the market. Superior Customer Experience From design to post-installation services, our focus is on the customer experience across all channels and product platforms. Culture We have a culture that ce
Slide 8: Today: company history
Today No matter how much we’ve grown, we haven’t forgotten what matters most: our employees, our customers and our shareholders. 1989 A revolutionary shift is made to just-in-time manufacturing. The Timberlake® and Shenandoah® brands are created to eliminate channel conflict. 2000s During the econom
Slide 9: A Market Primed for Growth
A Market Primed for Growth Source: Home Improvement Institute (HIRI) Outlook for the US Economy and Home Improvement Spending, May 22, 2018. The market continues to look strong in our category. Projected cabinet industry sales of $17.1 billion by 2021 are driven by a mix of positive indicators in th
Slide 10: One Company
One Company Strategically focused on success
Slide 11: Largest Acquisition in Category History
Largest Acquisition in Category History Acquiring RSI has created an expanded American Woodmark that is well-positioned in an attractive industry. Secured position as second-largest cabinet manufacturer Streamlined low-cost manufacturing Expanded into new categories and product price points
Slide 12: Focused Expansion
Focused Expansion Prior to acquiring RSI, American Woodmark primarily sold stock product. Consistent with our previously communicated expansion strategy, the RSI acquisition presented us with a strategic opportunity to expand our offering of both stock and in-stock products. Priority Expansion Oppor
Slide 13: Combined Company Strength
Combined Company Strength Note: Amounts reflected are based on January 31, 2019 fiscal YTD revenue. American Woodmark + RSI = a diversified portfolio of products across priority sales channels.
Slide 14: The Right Product Mix
The Right Product Mix American Woodmark has a broad range of value-focused solutions for kitchen, bath and home organization. A Strong Portfolio of Brands Over 15 brands supporting the home center, builder and dealer channels. Creating New Brands to Leverage Opportunities Our new Origins by Timberla
Slide 15: Financial Outlook
Financial Outlook FY18 Actuals FY19 Outlook 2 Net Revenue Growth - Core 4% Mid-single digits Net Revenue Growth - Total 21% ~32–33% Adjusted EBITDA Margin 1 14.1% ~14.7–15% Free Cash Flow 1 $37M ~$135M Our combined company performance is poised to see positive growth and cash flow, which will be use
Slide 16: Our Competitive Strengths
Our Competitive Strengths
Slide 17: Competitive Strengths
Competitive Strengths Ensuring that customers receive the products on time, so homeowners are satisfied Understanding channels and how to better serve them Providing the right products at the right price to meet demand Manufacturing an array of products to the highest standard
Slide 18: Home Center Channel
Home Center Channel American Woodmark has focused on the home center channel from our inception in 1980. The acquisition of RSI has allowed us to further diversify within this space. Our low-cost manufacturing and operational excellence allows for an attractive price point. National logistics platfo
Slide 19: Dealer/Distributor Channel
In the midst of the last recession, American Woodmark made a strategic decision to leverage our conservative approach to cash flow to launch a dealer-focused brand, Waypoint Living Spaces®. Why? We foresaw an opportunity to expand into the dealer channel and position ourselves to capitalize on pent-
Slide 20: Builder Channel
American Woodmark has focused on the new construction market for over 25 years and in that time has built the largest cabinetry brand in the builder channel. Our strong market share is driven by our focus on serving builder customers through our local service centers and experienced teams. We’ve bui
Slide 21: New Product: Duraform
New Product: Duraform® Ability to use composite underlayment, which reduces warping Painted look at affordable price point Added durability in comparison to painted cabinets Duraform allows us to provide a flexible alternative to other manufactured or material options. The platform comes with severa
Slide 22: Best-in-Industry Manufacturing Capabilities
Best-in-Industry Manufacturing Capabilities Vertically integrated production and assembly lines Standardized product construction Investments in automation Strategically located labor-intensive manufacturing in lower-cost Mexican facilities Opportunities Available capacity to drive additional sales
Slide 23: An Unmatched National Footprint
An Unmatched National Footprint Coast-to-coast coverage — easy access to most populated areas Flexibility of multiple manufacturing platforms and vertical integration supports a broad product range Service centers support our builder customers
Slide 24: Turnkey Builder Solution
A key competitive advantage is our ability to handle all parts of the process from design to installation. Excellent customer service means we meet the demands of customers, ensuring a consistent experience. Turnkey Builder Solution
Slide 25: Our Support Never Ceases
Our Support Never Ceases When the recession hit in the late 2000s, it caused a major drop in category sales due to dramatically reduced housing starts and remodeling activity. Hit with the need to reduce costs, our competitors reduced resources such as field teams and left customers on their own. Fa
Slide 26: Strategic Outlook
Strategic Outlook Building on our strengths
Slide 27: Planning for the Future
A core component of our success is our focus on staying ahead of the game. Operational Efficiency We continue to invest in technology to increase the efficiency of manufacturing and the quality of our product. Value Stream Fortification We constantly seek to identify consumer solutions that will lea
Slide 28: Why Invest in American Woodmark?
WHY INVEST IN AMERICAN WOODMARK? It’s simple. We are continuing to grow and position ourselves as a leader in the industry, and it’s our key differentiators that set us up for success in all parts of the business. 5 6 4 2 1 3 Leader and innovator in all major sales channels — home center, builder, a
Slide 29: Questions? Contact
Questions? Contact: Kevin Dunnigan Treasury Director (540) 665-9100
Slide 30: Appendix A: Reconciliation of Non-GAAP Financial Measures
Appendix A Reconciliation of Adjusted Non-GAAP Financial Measures to the GAAP Equivalents Year Ended April 30, (in thousands) 2018 Net income (GAAP) $ 63,141 Add back: Income tax expense 31,619 Interest (income) expense, net 13,054 Depreciation and amortization expense 28,671 Amortization of custome
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