American Woodmark Corporation (NASDAQ:AMWD) Q1 2024 Earnings Conference Call August 29, 2023 4:30 PM ET

Company Participants

Paul Joachimczyk - Senior Vice President and Chief Financial Officer

Scott Culbreth - President and Chief Executive Officer

Conference Call Participants

Julio Romero - Sidoti & Company

Adam Baumgarten - Zelman

Steven Ramsey - Thompson Research Group

Collin Verron - Jefferies

Tim Wojs - Baird

Operator

Good day, and welcome to the American Woodmark Corporation First Fiscal Quarter 2024 Conference Call. Today's call is being recorded, August 29, 2023.

During this call, the company may discuss certain non-GAAP financial measures included in our earnings release such as adjusted net income, adjusted EBITDA, adjusted EBITDA margin, free cash flow, net leverage, and adjusted EPS per diluted share. The earnings release, which can be found on our website, americanwoodmark.com, includes definitions of each of these non-GAAP financial measures and the company's rationale for their usage and a reconciliation of these non-GAAP financial measures to the most comparable GAAP financial measures. We also use our website to publish other information that might be important to our investors such as investor presentations.

We will begin the call by reading the company's 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 and the annual report to shareholders. 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.

I would now like to turn the call over to Paul Joachimczyk, Senior Vice President and CFO. Please go ahead, sir.

Paul Joachimczyk

Good afternoon, and welcome to American Woodmark's first fiscal quarter conference call. Thank you for taking the time today to participate. Joining me is Scott Culbreth, President and CEO. Scott will begin with a review of the quarter, and I'll add additional details regarding our financial performance. After our comments, we'll be happy to answer your questions.

Scott Culbreth

Thank you, Paul, and thanks to everyone for joining us today for our first fiscal quarter earnings call. Our teams delivered net sales of $498.3 million, representing a decline of 8.2% versus the prior year. Within new construction, our business declined 6.4% versus prior year. Builders continue to buy down rates to drive sales and are shifting to our ready-to-move-in build strategy. Cancellations are holding in more historic norms in the 14% to 16% range.