# EDGAR Filing Document

**Accession Number:** 0000794619
**File Stem:** 0000794619-23-000004
**Filing Date:** 2023-2
**Character Count:** 27219
**Document Hash:** 64565d87e0cef99911f40710b6d0bd9a
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000794619-23-000004.hdr.sgml**: 20230228

**ACCESSION NUMBER**: 0000794619-23-000004

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20230228

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230228

**DATE AS OF CHANGE**: 20230228

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** AMERICAN WOODMARK CORP
- **CENTRAL INDEX KEY:** 0000794619
- **STANDARD INDUSTRIAL CLASSIFICATION:** MILLWOOD, VENEER, PLYWOOD & STRUCTURAL WOOD MEMBERS [2430]
- **IRS NUMBER:** 541138147
- **STATE OF INCORPORATION:** VA
- **FISCAL YEAR END:** 0430

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-14798
- **FILM NUMBER:** 23678557

**BUSINESS ADDRESS:**
- **STREET 1:** 3102 SHAWNEE DRIVE
- **CITY:** WINCHESTER
- **STATE:** VA
- **ZIP:** 22601
- **BUSINESS PHONE:** (540) 665-9100

**MAIL ADDRESS:**
- **STREET 1:** 3102 SHAWNEE DRIVE
- **CITY:** WINCHESTER
- **STATE:** VA
- **ZIP:** 22601

?xml version="1.0" ? amwd-20230228

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K** 

**CURRENT REPORT**

**Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported): February 28, 2023**

---

| | | |
|:---|:---|:---|
| **American Woodmark Corporation** | **American Woodmark Corporation** | **American Woodmark Corporation** |
| **(Exact name of registrant as specified in its charter)** | **(Exact name of registrant as specified in its charter)** | **(Exact name of registrant as specified in its charter)** |
| **Virginia** | **000-14798** | **54-1138147** |
| **(State or other jurisdiction** | **(Commission** | **(IRS Employer** |
| **of incorporation)** | **File Number)** | **Identification No.)** |

---

---

| | | | |
|:---|:---|:---|:---|
| **561 Shady Elm Road,** | **Winchester,** | **Virginia** | **22602** |
| **(Address of principal executive offices** | **(Address of principal executive offices** | **(Address of principal executive offices** | **(Zip Code)** |

---

**Registrant's telephone number, including area code: <u>(540) 665-9100</u>**

---

| |
|:---|
| **Not applicable** |
| **(Former name or former address, if changed since last report)** |

---

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (<u>see</u> General Instruction A.2. below):

☐&nbsp;&nbsp;&nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐&nbsp;&nbsp;&nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Title of Each Class Trading Symbol Name of Each Exchange on Which Registered <br> Common Stock (no par value) AMWD NASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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**American Woodmark Corporation**

**ITEM 2.02&nbsp;&nbsp;&nbsp;&nbsp;RESULTS OF OPERATIONS AND FINANCIAL CONDITION**

On February 28, 2023, the Registrant issued a press release announcing results for its third quarter of fiscal year 2023 ended January 31, 2023. The press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.

**ITEM 9.01&nbsp;&nbsp;&nbsp;&nbsp;FINANCIAL STATEMENTS AND EXHIBITS**

(d)&nbsp;&nbsp;&nbsp;&nbsp;*Exhibits*

<u>[Exhibit 99.1](ex991202301318k.htm)</u>&nbsp;&nbsp;&nbsp;&nbsp;Registrant's Press Release dated February 28, 2023.

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**<u>SIGNATURES</u>**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

<u>AMERICAN WOODMARK CORPORATION</u>

(Registrant)

---

| | |
|:---|:---|
| /s/ PAUL JOACHIMCZYK | /s/ M. SCOTT CULBRETH |
| **Paul Joachimczyk** | **M. Scott Culbreth** |
| **Senior Vice President and Chief Financial Officer** | **President & Chief Executive Officer** |
| Date: **February 28, 2023** | Date: **February 28, 2023** |
| Signing on behalf of the registrant and as principal financial officer | Signing on behalf of the registrant and as principal executive officer |

---

## Exhibit 99.1

**Exhibit 99.1**

![aw_logoxprixhrzx150xrgbxred.jpg](aw_logoxprixhrzx150xrgbxred.jpg)

---

| |
|:---|
| P. O. Box 1980 |
| Winchester, VA 22604-8090 |

---

---

| | |
|:---|:---|
| **Contact:** | Kevin Dunnigan<br>VP & Treasurer<br>540-665-9100 |

---

**AMERICAN WOODMARK CORPORATION ANNOUNCES THIRD QUARTER RESULTS**

WINCHESTER, Virginia (February 28, 2023) -- American Woodmark Corporation (NASDAQ: AMWD) (the "Company") today announced results for its third quarter of fiscal 2023 which ended January 31, 2023.

Net sales for the third quarter of fiscal 2023 increased $21.0 million, or 4.6%, to $480.7 million compared with the same quarter of the prior fiscal year. Net sales for the first nine months of the current fiscal year increased 16.9% to $1,585.1 million from the comparable period of the prior fiscal year. The Company experienced growth in the builder and independent dealers and distributors sales channels during the third quarter and growth in all sales channels during the first nine months of fiscal 2023 versus the comparable prior year periods.

Net income was $14.7 million ($0.88 per diluted share) for the third quarter of fiscal 2023 compared with a net loss of $49.3 million ($2.97 per diluted share) in the same quarter of the prior fiscal year. Net income for the third quarter of fiscal 2023 increased due to the absence of onetime pension settlement charges of $69.5 million related to the termination of the Company's pension plan in the prior year third quarter and an increase in net sales largely as a result of price increases and increased efficiencies. Net income for the first nine months of the current fiscal year was $63.6 million ($3.82 per diluted share) compared with a net loss of $44.2 million ($2.67 per diluted share) for the same period of the prior fiscal year. Net income margin was 3.1% for the third quarter of fiscal 2023 compared to (10.7)% for the same period in the prior fiscal year and 4.0% for the first nine months of the current fiscal year compared with (3.3)% for the same period of the prior fiscal year. Adjusted EPS per diluted share was $1.46 for the third quarter of fiscal 2023 compared with $0.60 in the same quarter of the prior fiscal year and $5.40 for the first nine months of the current fiscal year compared with $1.92 for the same period of the prior fiscal year.

Adjusted EBITDA for the third quarter of fiscal 2023 increased $20.4 million, or 66.8%, to $51.0 million, or 10.6% of net sales, compared to $30.6 million, or 6.6% of net sales, for the same quarter of the prior fiscal year. Adjusted EBITDA for the first nine months of fiscal 2023 increased $81.6 million, or 87.4%, to $175.1 million, or 11.0% of net sales, compared to $93.5 million, or 6.9% of net sales, for the same period of the prior fiscal year.

Cash provided by operating activities for the first nine months of fiscal 2023 was $110.8 million and free cash flow totaled $91.5 million. The $140.3 million increase in free cash flows versus the first nine months of fiscal 2022 was primarily due to changes in our operating cash flows, specifically, higher net income, and lower customer receivables and, lower capital spending. As of January 31, 2023, the Company had $45.8 million of cash and cash equivalents on hand with no term loan debt maturities until July 2024 plus access to $277.6 million of additional availability under its revolving facility. The Company paid down $67.3 million of its debt during the first nine months of the current fiscal year.

"During the third quarter of fiscal 2023, our teams delivered sales growth of 4.6% and improved Adjusted EBITDA by 66.8% to $51.0 million," said Scott Culbreth, President and CEO. "As stated in previous quarters, we committed to improving our results as price realization better matched inflationary impacts and we improved our costs through operating efficiency initiatives. Our team has delivered on this commitment during the first nine months of the fiscal year and I thank each of them for their efforts. Demand trends did slow during the third fiscal quarter, but we are maintaining our full year outlook for net sales growth of low double digits along with Adjusted EBITDA margins of low double digits."

**About Us**

American Woodmark celebrates the creativity in all of us. With over 10,000 employees and more than a dozen brands, we're one of the nation's largest cabinet manufacturers. From inspiration to installation, we help people find their unique style and turn their home into a space for self-expression. By partnering with major home centers, builders, and independent dealers and

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AMWD Announces Third Quarter Results

February 28, 2023

distributors, we spark the imagination of homeowners and designers and bring their vision to life. Across our service and distribution centers, our corporate office, and manufacturing facilities, you'll always find the same commitment to customer satisfaction, integrity, teamwork, and excellence. Visit americanwoodmark.com to learn more and start building something distinctly your own.

**Use of Non-GAAP Financial Measures**

We have presented certain financial measures in this press release which have not been prepared in accordance with U.S. generally accepted accounting principles (GAAP). Definitions of our non-GAAP financial measures and a reconciliation to the most directly comparable financial measure calculated in accordance with GAAP are provided below following the financial highlights under the heading "Non-GAAP Financial Measures."

*Safe harbor statement under the Private Securities Litigation Reform 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 Securities and Exchange Commission, including our Annual Report on Form 10-K. 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.*

---

| | | | | |
|:---|:---|:---|:---|:---|
| **AMERICAN WOODMARK CORPORATION** | **AMERICAN WOODMARK CORPORATION** | **AMERICAN WOODMARK CORPORATION** | **AMERICAN WOODMARK CORPORATION** | **AMERICAN WOODMARK CORPORATION** |
| **Unaudited Financial Highlights** | **Unaudited Financial Highlights** | **Unaudited Financial Highlights** | **Unaudited Financial Highlights** | **Unaudited Financial Highlights** |
| (in thousands, except share data) | (in thousands, except share data) | (in thousands, except share data) | (in thousands, except share data) | (in thousands, except share data) |
| **Operating Results** | **Operating Results** | **Operating Results** | **Operating Results** | **Operating Results** |
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **January 31,** | **January 31,** | **January 31,** | **January 31,** |
|  | **2023** | **2022** | **2023** | **2022** |
| Net sales | $480713 | $459736 | $1585105 | $1355480 |
| Cost of sales & distribution | 405373 | 407981 | 1324284 | 1198765 |
| Gross profit | 75340 | 51755 | 260821 | 156715 |
| Sales & marketing expense | 21364 | 23383 | 71781 | 67755 |
| General & administrative expense | 28848 | 23281 | 91129 | 71638 |
| Restructuring charges, net | 1310 | (127) | 1310 | 183 |
| Operating income | 23818 | 5218 | 96601 | 17139 |
| Interest expense, net | 4303 | 2668 | 12778 | 7201 |
| Pension settlement, net | 293 | 69452 | 48 | 69452 |
| Other (income) expense, net | (411) | (335) | (1082) | 533 |
| Income tax expense (benefit) | 4905 | (17310) | 21275 | (15801) |
| Net income (loss) | $14728 | $(49257) | $63582 | $(44246) |
| **Earnings Per Share:** |  |  |  |  |
| Weighted average shares outstanding - diluted | 16695714 | 16569881 | 16661234 | 16599369 |
| Net income (loss) per diluted share | $0.88 | $(2.97) | $3.82 | $(2.67) |

---

------

AMWD Announces Third Quarter Results

February 28, 2023

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| | | |
|:---|:---|:---|
| **Condensed Consolidated Balance Sheet** | **Condensed Consolidated Balance Sheet** | **Condensed Consolidated Balance Sheet** |
| (Unaudited) | (Unaudited) | (Unaudited) |
|  | **January 31,** | **April 30,** |
|  | **2023** | **2022** |
| Cash & cash equivalents | $45817 | $22325 |
| Customer receivables | 117742 | 156961 |
| Inventories | 224763 | 228259 |
| Other current assets | 23136 | 21112 |
| Total current assets | 411458 | 428657 |
| Property, plant and equipment, net | 203509 | 213808 |
| Operating lease assets, net | 98766 | 108055 |
| Customer relationship intangibles, net | 41861 | 76111 |
| Goodwill | 767612 | 767612 |
| Other assets | 41167 | 38253 |
| Total assets | $1564373 | $1632496 |
| Current portion - long-term debt | $2546 | $2264 |
| Short-term operating lease liabilities | 22515 | 21985 |
| Accounts payable & accrued expenses | 143059 | 191979 |
| Total current liabilities | 168120 | 216228 |
| Long-term debt | 440684 | 506732 |
| Deferred income taxes | 26901 | 38340 |
| Long-term operating lease liabilities | 83052 | 95084 |
| Other liabilities | 2476 | 3229 |
| Total liabilities | 721233 | 859613 |
| Stockholders' equity | 843140 | 772883 |
| Total liabilities & stockholders' equity | $1564373 | $1632496 |

---

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| | | |
|:---|:---|:---|
| **Condensed Consolidated Statements of Cash Flows** | **Condensed Consolidated Statements of Cash Flows** | **Condensed Consolidated Statements of Cash Flows** |
| (Unaudited) | (Unaudited) | (Unaudited) |
|  | **Nine Months Ended** | **Nine Months Ended** |
|  | **January 31,** | **January 31,** |
|  | **2023** | **2022** |
| Net cash provided (used) by operating activities | $110803 | $(13051) |
| Net cash used by investing activities | (19260) | (35766) |
| Net cash used by financing activities | (68051) | (41383) |
| Net increase (decrease) in cash and cash equivalents | 23492 | (90200) |
| Cash and cash equivalents, beginning of period | 22325 | 91071 |
| Cash and cash equivalents, end of period | $45817 | $871 |

---

------

AMWD Announces Third Quarter Results

February 28, 2023

**Non-GAAP Financial Measures**

We have reported our financial results in accordance with U.S. generally accepted accounting principles (GAAP). In addition, we have discussed our financial results using the non-GAAP measures described below.

Management believes all of these non-GAAP financial measures provide an additional means of analyzing the current period's results against the corresponding prior period's results. However, these non-GAAP financial measures should be viewed in addition to, and not as a substitute for, the Company's reported results prepared in accordance with GAAP. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.

**EBITDA, Adjusted EBITDA and Adjusted EBITDA margin**

We use EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin in evaluating the performance of our business, and we use each in the preparation of our annual operating budgets and as indicators of business performance and profitability. We believe EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin allow us to readily view operating trends, perform analytical comparisons and identify strategies to improve operating performance.

We define Adjusted EBITDA as net income adjusted to exclude (1) income tax expense, (2) interest expense, net, (3) depreciation and amortization expense, (4) amortization of customer relationship intangibles, (5) expenses related to the acquisition of RSI Home Products, Inc. ("RSI acquisition") and the subsequent restructuring charges that the Company incurred related to the acquisition, (6) non-recurring restructuring charges, (7) stock-based compensation expense, (8) gain/loss on asset disposals, (9) change in fair value of foreign exchange forward contracts, and (10) pension settlement charges. We believe Adjusted EBITDA, when presented in conjunction with comparable GAAP measures, is useful for investors because management uses Adjusted EBITDA in evaluating the performance of our business.

We define Adjusted EBITDA margin as Adjusted EBITDA as a percentage of net sales.

**Adjusted EPS per diluted share**

We use Adjusted EPS per diluted share in evaluating the performance of our business and profitability. Management believes that this measure provides useful information to investors by offering additional ways of viewing the Company's results by providing an indication of performance and profitability excluding the impact of unusual and/or non-cash items. We define Adjusted EPS per diluted share as diluted earnings per share excluding the per share impact of (1) expenses related to the RSI acquisition and the subsequent restructuring charges that the Company incurred related to the RSI acquisition, (2) non-recurring restructuring charges, (3) the amortization of customer relationship intangibles, (4) pension settlement charges, and (5) the tax benefit of RSI acquisition expenses and subsequent restructuring charges, the net gain on debt forgiveness and modification and the amortization of customer relationship intangibles and trademarks. The amortization of intangible assets is driven by the RSI acquisition and will recur in future periods. Management has determined that excluding amortization of intangible assets from our definition of Adjusted EPS per diluted share will better help it evaluate the performance of our business and profitability and we have also received similar feedback from some of our investors.

**Free cash flow**

To better understand trends in our business, we believe that it is helpful to subtract amounts for capital expenditures consisting of cash payments for property, plant and equipment and cash payments for investments in displays from cash flows from continuing operations which is how we define free cash flow. Management believes this measure gives investors an additional perspective on cash flow from operating activities in excess of amounts required for reinvestment. It also provides a measure of our ability to repay our debt obligations.

**Net leverage**

Net leverage is a performance measure that we believe provides investors a more complete understanding of our leverage position and borrowing capacity after factoring in cash and cash equivalents that eventually could be used to repay outstanding debt.

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AMWD Announces Third Quarter Results

February 28, 2023

We define net leverage as net debt (total debt less cash and cash equivalents) divided by the trailing 12 months Adjusted EBITDA.

A reconciliation of these non-GAAP financial measures and the most directly comparable measures calculated and presented in accordance with GAAP are set forth on the following tables:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Reconciliation of EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin** | **Reconciliation of EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin** | **Reconciliation of EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin** | **Reconciliation of EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin** | **Reconciliation of EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin** |
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **January 31,** | **January 31,** | **January 31,** | **January 31,** |
| (in thousands) | **2023** | **2022** | **2023** | **2022** |
| Net income (loss) (GAAP) | $14728 | $(49257) | $63582 | $(44246) |
| Add back: |  |  |  |  |
| Income tax expense (benefit) | 4905 | (17310) | 21275 | (15801) |
| Interest expense, net | 4303 | 2668 | 12778 | 7201 |
| Depreciation and amortization expense | 11814 | 12507 | 36578 | 38453 |
| Amortization of customer relationship intangibles | 11416 | 11416 | 34250 | 34250 |
| EBITDA (Non-GAAP) | $47166 | $(39976) | $168463 | $19857 |
| Add back: |  |  |  |  |
| Acquisition and restructuring related expenses (1) | 20 | 20 | 60 | 60 |
| Non-recurring restructuring charges, net (2) | 1310 | (127) | 1310 | 183 |
| Pension settlement, net | 293 | 69452 | 48 | 69452 |
| Change in fair value of foreign exchange forward contracts (3) | (324) | (177) | (904) | (7) |
| Stock-based compensation expense | 1859 | 1006 | 5249 | 3399 |
| Loss on asset disposal | 666 | 365 | 879 | 516 |
| Adjusted EBITDA (Non-GAAP) | $50990 | $30563 | $175105 | $93460 |
| Net Sales | $480713 | $459736 | $1585105 | $1355480 |
| Net income margin (GAAP) | 3.1% | (10.7)% | 4.0% | (3.3)% |
| Adjusted EBITDA margin (Non-GAAP) | 10.6% | 6.6% | 11.0% | 6.9% |

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(1) Acquisition and restructuring related expenses are comprised of expenses related to the RSI acquisition and the subsequent restructuring charges that the Company incurred related to the acquisition.

(2) Non-recurring restructuring charges are comprised of expenses incurred related to the permanent layoffs that occurred during January 2023 and the closure of the manufacturing plant in Humboldt, Tennessee.

(3) In the normal course of business the Company is subject to risk from adverse fluctuations in foreign exchange rates. The Company manages these risks through the use of foreign exchange forward contracts. The changes in the fair value of the forward contracts are recorded in other (income) expense, net in the operating results.

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AMWD Announces Third Quarter Results

February 28, 2023

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| | | | | |
|:---|:---|:---|:---|:---|
| **Reconciliation of Net Income to Adjusted Net Income** | **Reconciliation of Net Income to Adjusted Net Income** | **Reconciliation of Net Income to Adjusted Net Income** | **Reconciliation of Net Income to Adjusted Net Income** | **Reconciliation of Net Income to Adjusted Net Income** |
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **January 31,** | **January 31,** | **January 31,** | **January 31,** |
| (in thousands, except share data) | **2023** | **2022** | **2023** | **2022** |
| Net income (loss) (GAAP) | $14728 | $(49257) | $63582 | $(44246) |
| Add back: |  |  |  |  |
| Acquisition and restructuring related expenses | 20 | 20 | 60 | 60 |
| Non-recurring restructuring charges, net | 1310 | (127) | 1310 | 183 |
| Pension settlement, net | 293 | 69452 | 48 | 69452 |
| Amortization of customer relationship intangibles and trademarks | 11416 | 11416 | 34250 | 34250 |
| Tax benefit of add backs | (3341) | (21586) | (9202) | (27753) |
| Adjusted net income (Non-GAAP) | $24426 | $9918 | $90048 | $31946 |
| Weighted average diluted shares (GAAP) | 16695714 | 16569881 | 16661234 | 16599369 |
| Add back: potentially anti-dilutive shares (1) |  | 40973 |  | 47878 |
| Weighted average diluted shares (Non-GAAP) | 16695714 | 16610854 | 16661234 | 16647247 |
| EPS per diluted share (GAAP) | $0.88 | $(2.97) | $3.82 | $(2.67) |
| Adjusted EPS per diluted share (Non-GAAP) | $1.46 | $0.60 | $5.40 | $1.92 |

---

(1) Potentially dilutive securities for the three- and nine-month periods ended January 31, 2022, respectively, have not been considered in the GAAP calculation of net loss per share as the effect would be anti-dilutive.

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| | | |
|:---|:---|:---|
| **Free Cash Flow** | **Free Cash Flow** | **Free Cash Flow** |
| | **Nine Months Ended** | **Nine Months Ended** |
| | **January 31,** | **January 31,** |
|  | **2023** | **2022** |
| Net cash provided (used) by operating activities | $110803 | $(13051) |
| Less: Capital expenditures (1) | 19283 | 35771 |
| Free cash flow | $91520 | $(48822) |

---

(1) Capital expenditures consist of cash payments for property, plant and equipment and cash payments for investments in displays.

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AMWD Announces Third Quarter Results

February 28, 2023

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| | |
|:---|:---|
| **Net Leverage** | **Net Leverage** |
| | **Twelve Months Ended** |
| | **January 31,** |
| (in thousands) | **2023** |
| Net income (GAAP) | $78106 |
| Add back: |  |
| Income tax expense | 23820 |
| Interest expense, net | 15768 |
| Depreciation and amortization expense | 49064 |
| Amortization of customer relationship intangibles | 45666 |
| EBITDA (Non-GAAP) | $212424 |
| Add back: |  |
| Acquisition and restructuring related expenses (1) | 80 |
| Non-recurring restructuring charges, net (2) | 1310 |
| Pension settlement | (931) |
| Change in fair value of foreign exchange forward contracts (3) | (897) |
| Stock-based compensation expense | 6559 |
| Loss on asset disposal | 1060 |
| Adjusted EBITDA (Non-GAAP) | $219605 |
|  | **As of** |
|  | **January 31,** |
|  | **2023** |
| Current maturities of long-term debt | $2546 |
| Long-term debt, less current maturities | 440684 |
| Total debt | 443230 |
| Less: cash and cash equivalents | (45817) |
| Net debt | $397413 |
| Net leverage (4) | 1.81 |

---

(1) Acquisition and restructuring related expenses are comprised of expenses related to the RSI acquisition and the subsequent restructuring charges that the Company incurred related to the acquisition.

(2) Non-recurring restructuring charges are comprised of expenses incurred related to the permanent layoffs that occurred during January 2023.

(3) In the normal course of business the Company is subject to risk from adverse fluctuations in foreign exchange rates. The Company manages these risks through the use of foreign exchange forward contracts. The changes in the fair value of the forward contracts are recorded in other (income) expense, net in the operating results.

(4) Net debt divided by Adjusted EBITDA for the twelve months ended January 31, 2023.

- END -

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