株探米国株
日本語 英語
エドガーで原本を確認する
0001423221 False 0001423221 2024-12-12 2024-12-12 iso4217:USD xbrli:shares iso4217:USD xbrli:shares
 

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):  December 12, 2024

_______________________________

Quanex Building Products Corporation

(Exact name of registrant as specified in its charter)

_______________________________

Delaware 001-33913 26-1561397
(State or Other Jurisdiction of Incorporation) (Commission File Number) (I.R.S. Employer Identification No.)

945 Bunker Hill Road, Suite 900

Houston, Texas 77024

(Address of Principal Executive Offices) (Zip Code)

(713) 961-4600

(Registrant's telephone number, including area code)

 

(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:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, par value $0.01 per share NX New York Stock Exchange

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

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. ☐

 
 
Item 2.02. Results of Operations and Financial Condition.

On December 12, 2024, the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.
     
99.1   Press Release dated December 12, 2024
104   Cover Page Interactive Data File (embedded within the Inline XBRL document)
 
 

SIGNATURE

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 hereunto duly authorized.

  Quanex Building Products Corporation
     
   
Date: December 12, 2024 By:  /s/ SCOTT ZUEHLKE        
    Scott Zuehlke
    SVP, CFO and Treasurer
   

 

EX-99.1 2 exh_991.htm PRESS RELEASE EdgarFiling

EXHIBIT 99.1

Quanex Building Products Announces Fourth Quarter and Full Year 2024 Results

Contribution from Tyman Acquisition Boosts Results
Margin Expansion Realized on Consolidated Basis for Full Year
$53.75 Million of Debt Repaid Since Closing Tyman Acquisition
Integration of Transformative Acquisition Progressing Ahead of Schedule
Realization of Synergies Ongoing

HOUSTON, Dec. 12, 2024 (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, 2024.  

The Company reported the following selected financial results:

      Three Months Ended October 31,   Twelve Months Ended October 31,
($ in millions, except per share data)     2024   2023   2024   2023
Net Sales     $492.2   $295.5   $1,277.9   $1,130.6
Gross Margin     $117.1   $80.0   $305.6   $277.5
Gross Margin %     23.8%   27.1%   23.9%   24.5%
Net (Loss) Income     ($13.9)   $27.4   $33.1   $82.5
Diluted EPS     ($0.30)   $0.83   $0.90   $2.50
                   
Adjusted Net Income     $28.6   $31.2   $80.4   $90.9
Adjusted Diluted EPS     $0.61   $0.95   $2.19   $2.75
Adjusted EBITDA     $81.1   $50.8   $182.4   $159.6
Adjusted EBITDA Margin %     16.5%   17.2%   14.3%   14.1%
                   
Cash Provided by Operating Activities     $5.5   $44.5   $88.8   $147.1
Free Cash Flow     ($8.2)   $29.6   $51.7   $109.7
(See Non-GAAP Terminology Definitions and Disclaimers section, Non-GAAP Financial Measure Disclosure table, Selected Segment Data table and reconciliation tables for additional information)


George Wilson, Chairman, President and Chief Executive Officer, commented, “On a consolidated basis, results for the fourth quarter and full year were boosted by the contribution from the Tyman acquisition. Results from the legacy Quanex business were in-line with our expectations for both the fourth quarter and full year. We are pleased with profitability despite the soft macro environment we experienced throughout 2024. Overall, we executed on our plan from an operational standpoint, and we executed on our long-term profitable growth strategy by closing on the transformative Tyman acquisition in August. In addition, our continued focus on cash flow and managing working capital enabled us to repay approximately $54 million in debt since closing the acquisition on August 1, 2024.  

“As we transition into 2025, we expect the current demand softness to persist until the spring selling season, but our expectations are that results will improve in the second half of 2025 due to typical seasonality combined with the benefit from unwinding pent up demand as interest rates continue to trend lower and consumer confidence improves. We will continue to focus on integrating the legacy Tyman business and capturing the targeted synergies. We have also settled on a new operating structure that is designed around our core competencies, which should enable us to capitalize on existing commercial opportunities and tap into new innovative solutions.   Furthermore, we continue to be excited about building a stronger, more profitable company over time and creating additional value for our shareholders. We have scheduled an Investor and Analyst Day on February 6, 2025, to unveil the ‘new’ Quanex, which will include providing detail on the revamped operating structure, guidance for 2025 and an update on our long-term profitable growth strategy.”  

Fourth Quarter and Fiscal 2024 Results Summary   

Quanex reported net sales of $492.2 million during the three months ended October 31, 2024, which represents an increase of 66.6% compared to $295.5 million for the same period of 2023. The Company reported net sales of $1.28 billion during the twelve months ended October 31, 2024, which represents an increase of 13.0% compared to $1.13 billion for the same period of 2023. The increases reflect the contribution from the Tyman acquisition that closed on August 1, 2024. Excluding the contribution from Tyman, net sales would have declined by 2.3% for the fourth quarter of 2024 and 5.0% for the full year, largely due to lower volume. Quanex reported a decline in net sales of 4.7% for the fourth quarter of 2024 and a decline of 2.6% in net sales for the full year in its North American Fenestration segment. In its North American Cabinet Components segment, Quanex reported an increase of 1.7% in net sales for the fourth quarter and a decline of 7.9% in net sales for the full year. Excluding foreign exchange impact, the Company realized a decrease in net sales of 1.2% for the fourth quarter and a decrease of 8.9% in net sales for the full year in its European Fenestration segment. In addition, Quanex reported net sales of $203.4 million related to the Tyman acquisition during the fourth quarter of 2024.   (See Sales Analysis table for additional information)

The increase in adjusted earnings for the three months and twelve months ended October 31, 2024 was mostly attributable to the contribution from the Tyman acquisition; however, the increase in adjusted earnings was also due in part to the lower cost of sales, including labor, related to lower volumes and deflation in the price of raw materials. Quanex was able to realize margin expansion in the fourth quarter in its North American Fenestration segment mainly due to effective cost control. In addition, the Company was also able to realize margin expansion on a consolidated basis for the full year, primarily driven by the contribution from the Tyman acquisition.

Balance Sheet & Liquidity Update

The Company borrowed $770 million ($500 Term Loan A and $270 on Senior Secured Revolving Credit Facility) to acquire Tyman on August 1, 2024. Quanex repaid $53.75 million in debt during the fourth quarter of 2024. As of October 31, 2024, the Company had total debt of $776.9 million and Quanex’s leverage ratio of Net Debt to LTM Adjusted EBITDA was 3.7x. As of October 31, 2024, the Company’s LTM Net Income was $33.1 million and LTM Adjusted EBITDA was $182.4 million (See Non-GAAP Terminology Definitions and Disclaimers section, Net Debt Reconciliation table and Last Twelve Months Adjusted EBITDA Reconciliation table for additional information)

The leverage ratio for Quanex’s quarterly debt covenant compliance (“Debt Covenant Leverage Ratio”) for its lenders was 2.3x as of October 31, 2024. The Debt Covenant Leverage Ratio calculation is defined in the Company’s Amendment No. 1 to its Second Amended and Restated Credit Agreement, which was filed with the SEC on June 12, 2024. In general, the main difference is that the Debt Covenant Leverage Ratio excludes real-estate leases that are considered “finance” leases under U.S. GAAP and is calculated on a proforma basis to include Adjusted EBITDA from the Tyman acquisition, $30 million of EBITDA for the synergy target related to the acquisition and only cash from domestic subsidiaries. The Debt Covenant Leverage Ratio would be 2.1x if calculated using the cash and cash equivalents amount on the balance sheet as of October 31, 2024.

Quanex’s liquidity was $343.3 million as of October 31, 2024, consisting of $97.7 million in cash on hand plus availability under its Senior Secured Revolving Credit Facility due 2029, less letters of credit outstanding.

Investor and Analyst Day

The Company announced it will host an Investor and Analyst Day at the New York Stock Exchange, 11 Wall St. New York, NY 1005, on February 6, 2025. The event will begin at 9:00 a.m. ET and conclude at approximately 11:00 a.m. ET. All investors and analysts that plan to attend should RSVP for the event by January 23, 2025, by contacting Quanex’s Senior Vice President, Chief Financial Officer & Treasurer, Scott Zuehlke, by email (scott.zuehlke@quanex.com).

Presentation content and a live audio webcast will be made available on Quanex’s website at http://www.quanex.com in the Investors section under Events & Presentations. A replay of the webcast will be posted following the live event.

Conference Call and Webcast Information

The Company has also scheduled a conference call for Friday, December 13, 2024 at 11:00 a.m. ET (10:00 a.m. CT) to discuss the release. A link to the live audio webcast will be available on Quanex’s website at http://www.quanex.com in the Investors section under Presentations & Events.

Participants can pre-register for the conference call using the following link: https://register.vevent.com/register/BIef39998f168c4cff8d9ed1561cb1cc48

Registered participants will receive an email containing conference call details for dial-in options. To avoid delays, it is recommended that participants dial into the conference call ten minutes ahead of the scheduled start time. A replay will be available for a limited time on the Company’s website at http://www.quanex.com in the Investors section under Presentations & Events.

About Quanex

Quanex is a global manufacturer with core capabilities and broad applications across various end markets. The Company currently collaborates and partners with leading OEMs to provide innovative solutions in the window, door, solar, refrigeration, custom mixing, building access and cabinetry markets.  Looking ahead, Quanex plans to leverage its material science expertise and process engineering to expand into adjacent markets.

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), Adjusted EBITDA and LTM 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) on the economy and the demand for Quanex’s products, timing estimates or any other expectations related to the Acquisition, 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, 2023, 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.

                 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
                 
    Three Months Ended October 31,   Twelve Months Ended October 31,
      2024       2023       2024       2023  
                 
Net sales   $ 492,161     $ 295,492     $ 1,277,862     $ 1,130,583  
Cost of sales     375,111       215,473       972,238       853,059  
Selling, general and administrative     86,891       29,326       190,470       123,957  
Depreciation and amortization     27,329       11,194       60,328       42,866  
Operating income     2,830       39,499       54,826       110,701  
Interest expense     (17,697 )     (1,565 )     (20,593 )     (8,136 )
Other, net     (2,671 )     (6,110 )     7,849       (5,519 )
(Loss) income before income taxes     (17,538 )     31,824       42,082       97,046  
Income tax benefit (expense)     3,621       (4,442 )     (9,023 )     (14,545 )
Net (loss) income   $ (13,917 )   $ 27,382     $ 33,059     $ 82,501  
                 
(Loss) earnings per common share, basic $ (0.30 )   $ 0.84     $ 0.91     $ 2.51  
(Loss) earnings per common share, diluted $ (0.30 )   $ 0.83     $ 0.90     $ 2.50  
                 
Weighted average common shares outstanding:              
Basic     47,015       32,753       36,416       32,819  
Diluted     47,015       32,991       36,648       33,026  
                 
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, 2024   October 31, 2023
ASSETS        
Current assets:        
Cash and cash equivalents   $ 97,744     $ 58,474  
Restricted Cash     5,251       -  
Accounts receivable, net     197,689       97,311  
Inventories     275,550       97,959  
Income taxes receivable     5,937       8,298  
Prepaid and other current assets     29,097       11,558  
Total current assets     611,268       273,600  
Property, plant and equipment, net     402,466       250,664  
Operating lease right-of-use assets     126,715       46,620  
Deferred tax assets     3,845       -  
Goodwill     574,711       182,956  
Intangible assets, net     597,909       74,115  
Other assets     2,874       3,188  
Total assets   $ 2,319,788     $ 831,143  
         
LIABILITIES AND STOCKHOLDERS' EQUITY        
Current liabilities:        
Accounts payable   $ 124,404     $ 74,371  
Accrued liabilities     103,623       50,319  
Income taxes payable     6,620       384  
Current maturities of long-term debt     25,745       2,365  
Current operating lease liabilities     12,475       7,224  
Total current liabilities     272,867       134,663  
Long-term debt     737,198       66,435  
Noncurrent operating lease liabilities     117,560       40,361  
Deferred income taxes     162,304       29,133  
Liabilities for uncertain tax positions     -       250  
Other liabilities     19,113       14,747  
Total liabilities     1,309,042       285,589  
Stockholders’ equity:        
Common stock     513       372  
Additional paid-in-capital     701,008       251,576  
Retained earnings     430,405       409,318  
Accumulated other comprehensive loss     (46,428 )     (38,141 )
Treasury stock at cost     (74,752 )     (77,571 )
Total stockholders’ equity     1,010,746       545,554  
Total liabilities and stockholders' equity   $ 2,319,788     $ 831,143  
         


QUANEX BUILDING PRODUCTS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(In thousands)
(Unaudited)
       
  Twelve Months Ended October 31,
    2024       2023  
Operating activities:      
Net income $ 33,059     $ 82,501  

Adjustments to reconcile net income to cash provided by operating activities:
     
Depreciation and amortization   60,328       42,866  
(Gain) loss on disposition of capital assets   (5,218 )     278  
Stock-based compensation   2,952       2,521  
Deferred income tax   (15,336 )     5,147  
Charge for deferred loan costs and debt discount   3,469       -  
Gain on deal contingent foreign exchange forward currency contract   (6,512 )     -  
Other, net   4,495       1,529  
Changes in assets and liabilities:      
Decrease in accounts receivable   973       6,969  
Decrease in inventory   33,484       30,024  
Decrease (increase) in other current assets   4,297       (1,880 )
Decrease in accounts payable   (35,824 )     (11,611 )
Increase (decrease) in accrued liabilities   6,250       (4,249 )
Increase (decrease) in income taxes receivable   9,139       (9,009 )
(Decrease) increase in other long-term liabilities   (7,155 )     683  
Other, net   411       1,283  
Cash provided by operating activities   88,812       147,052  
Investing activities:      
Business acquisition   (848,614 )     (91,302 )
Capital expenditures   (37,086 )     (37,390 )
Proceeds from disposition of capital assets   15,046       253  
Cash used for investing activities   (870,654 )     (128,439 )
Financing activities:      
Borrowings under credit facilities   785,000       102,000  
Repayments of credit facility borrowings   (83,750 )     (100,000 )
Debt issuance costs   (13,808 )     -  
Borrowings (repayments) of other long-term debt   (296,206 )     (2,567 )
Issuance of common stock   450,633       1,215  
Proceeds from deal contingent foreign exchange forward currency contract   6,512       -  
Common stock dividends paid   (11,972 )     (10,639 )
Payroll tax paid to settle shares forfeited upon vesting of stock   (1,193 )     (567 )
Purchase of treasury stock   -       (5,593 )
Cash provided (used for) by financing activities   835,216       (16,151 )
Effect of exchange rate changes on cash and cash equivalents   (8,853 )     919  
Increase in cash, cash equivalents and restricted cash   44,521       3,381  
Cash, cash equivalents and restricted cash at beginning of period   58,474       55,093  
Cash, cash equivalents and restricted cash at end of period $ 102,995     $ 58,474  
       


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,  
      2024   2023   2024   2023  
Cash provided by operating activities     $5,479   $44,493   $88,812   $147,052  
Capital expenditures     (13,651)   (14,940)   (37,086)   (37,390)  
Free Cash Flow     ($8,172)   $29,553   $51,726   $109,662  
                     
                     
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,      
      2024   2023          
Term loan facility     $493,750   $0          
Revolving credit facility     222,500   15,000          
Finance lease obligations (1)     60,676   55,000          
Total debt (2)     776,926   70,000          
Less: Cash and cash equivalents     97,744   58,474          
Net Debt     $679,182   $11,526          
                     
(1) Includes $50.3 million and $51.5 million in real estate lease liabilities considered finance leases under U.S. GAAP as of October 31, 2024 and October 31, 2023, respectively.      
(2) Excludes outstanding letters of credit.           
                     


QUANEX BUILDING PRODUCTS CORPORATION
NON-GAAP FINANCIAL MEASURE DISCLOSURE
LAST TWELVE MONTHS ADJUSTED EBITDA RECONCILIATION
(In thousands, except per share data)
(Unaudited)
                     
Reconciliation of Last Twelve Months Adjusted EBITDA   Three Months Ended October 31, 2024   Three Months Ended July 31, 2024   Three Months Ended April 30, 2024   Three Months Ended January 31, 2024   Total
   
Reconciliation
  Reconciliation   Reconciliation   Reconciliation   Reconciliation
Net (loss) income as reported   $ (13,917 )   $ 25,350     $ 15,377     $ 6,249     $ 33,059  
Income tax (benefit) expense     (3,621 )     6,688       4,314       1,642       9,023  
Other, net     2,671       (9,474 )     (4 )     (1,042 )     (7,849 )
Interest expense     17,697       878       950       1,068       20,593  
Depreciation and amortization     27,329       10,953       10,894       11,152       60,328  
EBITDA     30,159       34,395       31,531       19,069       115,154  
Cost of sales (1),(2)     887       1,507       631       -       3,025  
Selling, general and administrative (1),(2),(3),(4)     50,004       6,133       7,862       205       64,204  
Adjusted EBITDA   $ 81,050     $ 42,035     $ 40,024     $ 19,274     $ 182,383  
                     
(1) Expense (gain) related to plant closure.    
(2) Loss on damage to manufacturing facilities caused by weather.
(3) Transaction and advisory fees.
(4) Amortization of step-up for purchase price adjustments on inventory and accounts receivable.
                     


QUANEX BUILDING PRODUCTS CORPORATION
NON-GAAP FINANCIAL MEASURE DISCLOSURE
(In thousands, except per share data)
(Unaudited)
                                   
Reconciliation of Adjusted Net Income and Adjusted EPS Three Months Ended
October 31, 2024
  Three Months Ended
October 31, 2023
  Twelve Months Ended
October 31, 2024
  Twelve Months Ended
October 31, 2023
 
    Net Income   Diluted EPS   Net Income   Diluted EPS   Net Income   Diluted EPS   Net Income   Diluted EPS  
Net (loss) income as reported   $ (13,917 )   $ (0.30 )   $ 27,382     $ 0.83     $ 33,059     $ 0.90     $ 82,501     $ 2.50    
Net (loss) income reconciling items from below     42,528     $ 0.91       3,851     $ 0.12       47,303     $ 1.29       8,401     $ 0.25    
Adjusted net income and adjusted EPS   $ 28,611     $ 0.61     $ 31,233     $ 0.95     $ 80,362     $ 2.19     $ 90,902     $ 2.75    
                                   
Reconciliation of Adjusted EBITDA   Three Months Ended
October 31, 2024
  Three Months Ended
October 31, 2023
  Twelve Months Ended
October 31, 2024
  Twelve Months Ended
October 31, 2023
 
    Reconciliation       Reconciliation       Reconciliation       Reconciliation      
Net (loss) income as reported   $ (13,917 )       $ 27,382         $ 33,059         $ 82,501        
Income tax (benefit) expense     (3,621 )         4,442           9,023           14,545        
Other, net     2,671           6,110           (7,849 )         5,519        
Interest expense     17,697           1,565           20,593           8,136        
Depreciation and amortization     27,329           11,194           60,328           42,866        
EBITDA     30,159           50,693           115,154           153,567        
EBITDA reconciling items from below     50,891           74           67,229           6,028        
Adjusted EBITDA   $ 81,050         $ 50,767         $ 182,383         $ 159,595        
                                   
Reconciling Items   Three Months Ended
October 31, 2024
  Three Months Ended
October 31, 2023
  Twelve Months Ended
October 31, 2024
  Twelve Months Ended
October 31, 2023
 
    Income Statement   Reconciling Items   Income Statement   Reconciling Items   Income Statement   Reconciling Items   Income Statement   Reconciling Items  
Net sales   $ 492,161     $ -     $ 295,492     $ -     $ 1,277,862     $ -     $ 1,130,583     $ -    
Cost of sales     375,111       (887 ) (1)   215,473       35   (2)   972,238       (3,025 ) (1)   853,059       (13 ) (2)
Selling, general and administrative     86,891       (50,004 ) (1),(3),(4)   29,326       (109 ) (2),(3)   190,470       (64,204 ) (1),(3),(4)   123,957       (6,015 ) (2),(3)
EBITDA     30,159       50,891       50,693       74       115,154       67,229       153,567       6,028    
Depreciation and amortization     27,329       -       11,194       -       60,328       -       42,866       -    
Operating income     2,830       50,891       39,499       74       54,826       67,229       110,701       6,028    
Interest expense     (17,697 )     -       (1,565 )     -       (20,593 )     -       (8,136 )     -    
Other, net     (2,671 )     3,271   (5)   (6,110 )     5,232   (5)   7,849       (6,738 ) (5)   (5,519 )     5,196   (5)
(Loss) Income before income taxes     (17,538 )     54,162       31,824       5,306       42,082       60,491       97,046       11,224    
Income tax benefit (expense)     3,621       (11,634 ) (6)   (4,442 )     (1,455 ) (6)   (9,023 )     (13,188 ) (6)   (14,545 )     (2,823 ) (6)
Net (loss) income   $ (13,917 )   $ 42,528     $ 27,382     $ 3,851     $ 33,059     $ 47,303     $ 82,501     $ 8,401    
                                   
Diluted (loss) earnings per share   $ (0.30 )       $ 0.83         $ 0.90         $ 2.50        
                                   
                                   
(1) (Expense) gain related to plant closure.  
(2) Loss on damage to manufacturing facilities caused by weather.  
(3) Transaction and advisory fees.        
(4) Amortization of step-up for purchase price adjustments on inventory and accounts receivable.  
(5) Pension settlement (refund) expense, losses (gains) on foreign exchange forward currency contract and foreign currency transaction losses (gains).  
(6)Tax impact of net income reconciling items.  
                                   


QUANEX BUILDING PRODUCTS CORPORATION
SELECTED SEGMENT DATA
(In thousands)
(Unaudited)
                         
This table provides gross margin, operating income (loss), 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   Tyman   Unallocated Corp & Other   Total
Three months ended October 31, 2024                        
Net sales   $ 172,031     $ 65,075     $ 52,761     $ 203,435     $ (1,141 )   $ 492,161  
Cost of sales     127,448       40,258       44,136       163,946       (677 )     375,111  
Gross Margin     44,583       24,817       8,625       39,489       (464 )     117,050  
Gross Margin %     25.9%       38.1%       16.3%       19.4%           23.8%  
Selling, general and administrative (1)     10,072       8,310       5,373       44,453       18,683       86,891  
Depreciation and amortization     5,107       2,715       3,004       16,438       65       27,329  
Operating income (loss)     29,404       13,792       248       (21,402 )     (19,212 )     2,830  
Depreciation and amortization     5,107       2,715       3,004       16,438       65       27,329  
EBITDA     34,511       16,507       3,252       (4,964 )     (19,147 )     30,159  
Expense related to plant closure (Cost of sales)     887       -       -       -       -       887  
Net gain related to plant closure (SG&A)     (5,299 )     -       -       -       -       (5,299 )
Amortization of step-up for purchase price adjustments on inventory and accounts receivable     -       -       -       29,076       -       29,076  
Transaction and advisory fees     -       -       -       10,359       15,868       26,227  
Adjusted EBITDA   $ 30,099     $ 16,507     $ 3,252     $ 34,471     $ (3,279 )   $ 81,050  
Adjusted EBITDA Margin %     17.5%       25.4%       6.2%       16.9%           16.5%  
                         
Three months ended October 31, 2023                        
Net sales   $ 180,446     $ 64,170     $ 51,868     $ -     $ (992 )   $ 295,492  
Cost of sales     135,490       39,070       41,488       -       (575 )     215,473  
Gross Margin     44,956       25,100       10,380       -       (417 )     80,019  
Gross Margin %     24.9%       39.1%       20.0%               27.1%  
Selling, general and administrative (1)     15,272       8,354       5,135       -       565       29,326  
Depreciation and amortization     5,211       2,714       3,220       -       49       11,194  
Operating income (loss)     24,473       14,032       2,025       -       (1,031 )     39,499  
Depreciation and amortization     5,211       2,714       3,220       -       49       11,194  
EBITDA     29,684       16,746       5,245       -       (982 )     50,693  
Loss on damage to manufacturing facilities (Cost of sales)     (35 )     -       -       -       -       (35 )
Loss on damage to manufacturing facilities (SG&A)     -       -       (131 )     -       -       (131 )
Transaction and advisory fees     -       -       -       -       240       240  
Loss on sale of plant     -       -       -       -       -       -  
Adjusted EBITDA   $ 29,649     $ 16,746     $ 5,114     $ -     $ (742 )   $ 50,767  
Adjusted EBITDA Margin %     16.4%       26.1%       9.9%               17.2%  
                         
Twelve months ended October 31, 2024                        
Net sales   $ 650,058     $ 230,712     $ 198,424     $ 203,435     $ (4,767 )   $ 1,277,862  
Cost of sales     498,378       144,585       168,414       163,946       (3,085 )     972,238  
Gross Margin     151,680       86,127       30,010       39,489       (1,682 )     305,624  
Gross Margin %     23.3%       37.3%       15.1%       19.4%           23.9%  
Selling, general and administrative (1)     56,630       31,318       20,727       44,453       37,342       190,470  
Depreciation and amortization     20,994       10,420       12,244       16,438       232       60,328  
Operating income (loss)     74,056       44,389       (2,961 )     (21,402 )     (39,256 )     54,826  
Depreciation and amortization     20,994       10,420       12,244       16,438       232       60,328  
EBITDA     95,050       54,809       9,283       (4,964 )     (39,024 )     115,154  
Expense related to plant closure (Cost of sales)     3,025       -       -       -       -       3,025  
Net gain related to plant closure (SG&A)     (4,196 )     -       -       -       -       (4,196 )
Amortization of step-up for purchase price adjustments on inventory and accounts receivable     -       -       -       29,076       -       29,076  
Transaction and advisory fees     -       -       -       10,359       28,965       39,324  
Adjusted EBITDA   $ 93,879     $ 54,809     $ 9,283     $ 34,471     $ (10,059 )   $ 182,383  
Adjusted EBITDA Margin %     14.4%       23.8%       4.7%       16.9%           14.3%  
                         
Twelve months ended October 31, 2023                        
Net sales   $ 667,482     $ 250,774     $ 215,445     $ -     $ (3,118 )   $ 1,130,583  
Cost of sales     517,805       158,491       178,210       -       (1,447 )     853,059  
Gross Margin     149,677       92,283       37,235       -       (1,671 )     277,524  
Gross Margin %     22.4%       36.8%       17.3%               24.5%  
Selling, general and administrative (1)     56,979       32,350       21,074       -       13,554       123,957  
Depreciation and amortization     20,539       9,849       12,208       -       270       42,866  
Operating income (loss)     72,159       50,084       3,953       -       (15,495 )     110,701  
Depreciation and amortization     20,539       9,849       12,208       -       270       42,866  
EBITDA     92,698       59,933       16,161       -       (15,225 )     153,567  
Loss on damage to manufacturing facilities (Cost of sales)     -       -       13       -       -       13  
Loss on damage to manufacturing facilities (SG&A)     -       -       69       -       -       69  
Transaction and advisory fees     -       -       -       -       5,946       5,946  
Adjusted EBITDA   $ 92,698     $ 59,933     $ 16,243     $ -     $ (9,279 )   $ 159,595  
Adjusted EBITDA Margin %     13.9%       23.9%       7.5%               14.1%  
                         
(1) Includes stock-based compensation expense for the three and twelve months ended October 31, 2024 of $2.0 million and $1.7 million, respectively, and $7.4 million and $9.3 million for the comparable prior year periods.
                         


QUANEX BUILDING PRODUCTS CORPORATION
SALES ANALYSIS
(In thousands)
(Unaudited)
                 
    Three Months Ended October 31,   Twelve Months Ended October 31,
      2024       2023       2024       2023  
                 
NA Fenestration:              
  United States - fenestration $ 128,633     $ 138,783     $ 491,307     $ 518,396  
  International - fenestration   9,323       8,081       29,882       30,100  
  United States - non-fenestration   29,050       29,267       110,246       103,090  
  International - non-fenestration   5,025       4,315       18,623       15,896  
    $ 172,031     $ 180,446     $ 650,058     $ 667,482  
EU Fenestration: (1)              
  International - fenestration $ 54,665     $ 49,862     $ 193,935     $ 191,871  
  International - non-fenestration   10,410       14,308       36,777       58,903  
    $ 65,075     $ 64,170     $ 230,712     $ 250,774  
NA Cabinet Components:              
  United States - fenestration $ 3,710     $ 4,286     $ 14,913     $ 16,899  
  United States - non-fenestration   49,038       47,092       182,494       195,866  
  International - non-fenestration   13       490       1,017       2,680  
    $ 52,761     $ 51,868     $ 198,424     $ 215,445  
Tyman:              
  United States - fenestration $ 127,749     $ -     $ 127,749     $ -  
  International - fenestration   75,082       -       75,082       -  
  United States - non-fenestration   604       -       604       -  
    $ 203,435     $ -     $ 203,435     $ -  
                 
Unallocated Corporate & Other:              
  Eliminations $ (1,141 )   $ (992 )   $ (4,767 )   $ (3,118 )
    $ (1,141 )   $ (992 )   $ (4,767 )   $ (3,118 )
                 
Net Sales $ 492,161     $ 295,492     $ 1,277,862     $ 1,130,583  
                 
(1) Reflects an increase of $1.7 million and $2.5 million in revenue associated with foreign currency exchange rate impacts for the three and twelve months ended October 31, 2024, respectively.