Volume 50, Issue 2 - February 2015

FinancialFlash

Quanex Nets Increase in Revenue in 2014 Despite Slower Fourth Quarter

Quanex Building Products Corp. reported a profit of $5 million for the fourth quarter of fiscal 2014 despite a drop in revenue during the same period last year.

The Houston-based maker of door and window components reported net income of 13 cents per share for the quarter that ended on October 31.


QUANTEX NET SALES

Net sales increased 7.3 percent to
$595 million vs. $555 million in 2013.

Net sales for Quanex slipped to $163.8 million from $166.8 million a year earlier. Most analysts had expected sales of $173.2 million, according to Zacks Investment Research.

In the third quarter, which ended on July 31, the company’s sales increased 8.4 percent to $170 million versus $157 million for the same period in 2013.

Wall Street reacted negatively to the news: The price of the company’s stock fell 8 percent to $18.31 per share. Quanex had climbed 14 percent during the previous 12 months, according to Zacks Investment Research.
The company doesn’t expect business conditions to improve in the new fiscal year.

“For fiscal 2015, Quanex anticipates a slow start, with sluggish growth through the winter months, coupled with a continued drag on earnings from its vinyl business during the first half of 2015,” reads a company statement.

Despite the fourth-quarter setback, fiscal 2014 was a good year for Quanex, CEO Bill Griffiths says.

“Revenues and EBITDA increased 7.3 percent and 38.7 percent, respectively, compared to 2013 results, the highest level since the spin-off of Quanex Building Products Corporation in 2008,” Griffiths says. “Despite a sputtering housing recovery, and a $20 million EBITDA drag on earnings from our vinyl profile business, we made good progress in 2014 and are well positioned for the future. All of our other operations are performing at a high level and managed to offset some of the shortfall in the vinyl business.” says Griffiths.

The company’s 2014 income from continuing operations was $8.3 million, compared to a loss from continuing operations of $12.4 million in 2013. 2014 EBITDA was $48.1 million compared to $34.7 million in 2013.

Quanex Building Products Corp.
Consolidated Statements of Income (Loss)

(In thousands, except per share data) (Unaudited)
3 Months Ended October 31
 
2014
2013
Net Sales
$163,816
$166,843
Operating income (loss)
5,299
(8,553)
Income (loss) before income taxes
5,182
(8,401)
Net income (loss)
$4,956
$(1,206)
Earnings (loss) per common share:
Continuing operations
$0.08
$(0.15)
Discontinued operations
$0.05
$0.12
Diluted earnings (loss) per common share:
Continuing operations
$0.08
$(0.15)
Discontinued operations
$0.05
$0.12
12 Months Ended October 31
 
2014
2013
Net sales
$595,384
$554,867
Operating income (loss)
14,276
(18,821)
Income (loss) before income taxes
13,806
(19,272)
Net income (loss)
$29,234
$(11,703)
Earnings (loss) per common share:
Continuing operations
$0.22
$(0.34)
Discontinued operations
$0.57
$0.02
Diluted earnings (loss) per common share:
Continuing operations
$0.22
$(0.34)
Discontinued operations
$0.56
$0.02




USG
Copyright 2015 Key Communications Inc. All rights reserved.
No reproduction of any type without expressed written permission.