Quanex Building Products Corporation (NYSE:NX) Q2 2022 Earnings Conference Call June 3, 2022 11:00 AM ET
Company Participants
Scott Zuehlke - Senior Vice President, Chief Financial Officer and Treasurer
George Wilson - President and Chief Executive Officer
Conference Call Participants
Daniel Moore - CJS Securities
Julio Romero - Sidoti & Company
Reuben Garner - The Benchmark Company
Christian Zyla - KeyBanc Capital
Operator
Good day and thank you for standing by. Welcome to the Second Quarter 2022 Quanex Building Products Corporation’s Earnings Conference Call. [Operator Instructions] Please be advised that today’s conference is being recorded. I would now like to hand the conference over to your host today, Scott Zuehlke, Senior Vice President, Chief Financial Officer and Treasurer. Please go ahead.
Scott Zuehlke
Thank you for joining the call this morning. On the call with me today is George Wilson, our President and CEO.
This conference call will contain forward-looking statements and some discussion of non-GAAP measures. Forward-looking statements and guidance discussed on this call and in our earnings release are based on current expectations. Actual results or events may differ materially from such statements and guidance, and Quanex undertakes no obligation to update or revise any forward-looking statements to reflect new information or events. For a more detailed description of our forward-looking statement disclaimer and a reconciliation of non-GAAP measures to the most directly comparable GAAP measures, please see our earnings release issued yesterday and posted to our website.
I will now discuss our record financial results for the second quarter. Net sales increased by 19.4% to $322.9 million during the second quarter of 2022 compared to $270.4 million during the second quarter of 2021. The increase was mostly due to higher prices related to the pass-through of raw material cost inflation, and we suspect there may have been some pull forward of demand as price increases are being implemented. More specifically, we realized net sales growth of 21.7% in our North American Fenestration segment, 13% in our European Fenestration segment, excluding the foreign exchange impact, and 14.7% in our North American Cabinet Components segment.
Net income increased by 81.5% to $26.5 million or $0.80 per diluted share during the second quarter of 2022 compared to $14.6 million or $0.43 per diluted share during the second full quarter of 2021. On an adjusted basis, EBITDA for the quarter increased by 40.4% to $45.2 million compared to $32.2 million during the same period of last year. The increase in earnings for the 3 months ended April 30, 2022, was attributable to continued strong demand and increased pricing, coupled with lower SG&A expense, largely due to lower stock-based comp.