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Quanex Building Products Announces Third Quarter 2021 Results and Reaffirms Full Year 2021 Guidance
ソース: Nasdaq GlobeNewswire / 02 9 2021 16:15:01 America/New_York
Solid Net Sales Growth Realized Across All Operating Segments
Strong Balance Sheet
Liquidity Continues to Increase
Repaid $15 Million of Bank DebtHOUSTON, Sept. 02, 2021 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation (NYSE:NX) (“Quanex” or the “Company”) today announced its results for the three months ended July 31, 2021.
The Company reported the following selected financial results:
QUANEX BUILDING PRODUCTS CORPORATION Q3 2021 Earnings Release Three Months Ended July 31, Nine Months Ended July 31, ($ in millions, except per share data) 2021 2020 2021 2020 Net Sales $279.9 $212.1 $780.4 $596.2 Gross Margin $60.0 $49.7 $175.7 $126.6 Gross Margin % 21.4% 23.4% 22.5% 21.2% Net Income $13.6 $10.8 $36.0 $16.3 Diluted EPS $0.41 $0.33 $1.08 $0.50 Adjusted Net Income $14.2 $11.1 $37.8 $18.7 Adjusted Diluted EPS $0.42 $0.34 $1.13 $0.57 Adjusted EBITDA $32.9 $27.7 $89.5 $65.2 Adjusted EBITDA Margin % 11.8% 13.1% 11.5% 10.9% Cash Provided by Operating Activities $18.5 $45.1 $47.4 $47.6 Free Cash Flow $12.3 $40.7 $31.4 $26.9 (See Non-GAAP Terminology Definitions and Disclaimers section, Non-GAAP Financial Measure Disclosure table, Selected Segment Data table and Free Cash Flow Reconciliation table for additional information)
George Wilson, President and Chief Executive Officer, stated, “Demand for our products remained robust across all of our product lines throughout the third quarter of 2021. On a consolidated basis, net sales increased by approximately 32% year-over-year as compared to the third quarter of 2020. General inflation, time lag for index pricing, supply chain challenges and labor constraints all continue to have a negative impact on margins. In addition, our plant in Germany was down for approximately 14 days during the quarter due to flooding in Europe, but the plant was back up and running at full capacity by the end of July. Our balance sheet continues to strengthen, and we were able to repay $15.0 million in bank debt during the quarter while also repurchasing approximately $1.8 million of our common stock. We will remain focused on generating cash and paying down debt in the near-term.” (See Non-GAAP Terminology Definitions and Disclaimers section for additional information)
Third Quarter 2021 Results Summary
The Company reported net sales of $279.9 million during the three months ended July 31, 2021, which represents growth of 32.0% compared to $212.1 million for the same period of 2020. The increase was largely due to increased demand across all product lines and operating segments combined with increased pricing mostly related to the pass through of raw material cost inflation. In detail, Quanex posted net sales growth of 20.8% in its North American Fenestration segment, 19.3% in its North American Cabinet Components segment and 85.8% in its European Fenestration segment, excluding the foreign exchange impact and despite the challenges presented by flooding in Germany as previously noted. As a reminder, both of Quanex’s manufacturing facilities in the U.K. were shut down in late March of 2020 and did not resume operations until mid-to-late May 2020. (See Sales Analysis table for additional information)
The increase in earnings for the third quarter of 2021 was mainly due to higher volumes and improved operating leverage. This increase was somewhat offset by inflationary pressures and an increase in selling, general and administrative expenses, which was mostly attributable to more normalized medical costs combined with an increase in stock-based compensation expense.
Balance Sheet & Liquidity Update
As of July 31, 2021, Quanex had total debt of $74.0 million and its leverage ratio of Net Debt to LTM Adjusted EBITDA improved to 0.2x. (See Non-GAAP Terminology Definitions and Disclaimers section and Net Debt and LTM Adjusted EBITDA reconciliation tables for additional information)
The Company’s liquidity increased to $306.2 million as of July 31, 2021, consisting of $43.7 million in cash on hand plus availability under its Senior Secured Revolving Credit Facility due 2023, less letters of credit outstanding.
Share Repurchases
Quanex’s Board of Directors authorized a $60 million share repurchase program in September of 2018. Repurchases under this program will be made in open market transactions or privately negotiated transactions, subject to market conditions, applicable legal requirements, and other relevant factors. The program does not have an expiration date or a limit on the number of shares that may be repurchased. The Company repurchased 74,257 shares of common stock for approximately $1.8 million at an average price of $23.88 per share during the three months ended July 31, 2021. As of July 31, 2021, approximately $5.4 million remained under the existing share repurchase authorization.
Outlook
George Wilson, President and Chief Executive Officer, commented, “While we remain optimistic on the demand outlook for our products, we do expect inflation, labor costs, and supply chain challenges to continue pressuring margins throughout the fourth quarter of this year. We continue to pass these incremental costs along to our customers through indexes, surcharges, and price increases; however, there are time lags in each case. With this backdrop, on a consolidated basis, we are reaffirming net sales guidance of approximately $1.04 billion to $1.06 billion and Adjusted EBITDA* of $125 million to $130 million in fiscal 2021.”
*When Quanex provides expectations for Adjusted EBITDA on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and corresponding GAAP measures is generally not available without unreasonable effort. Certain items required for such a reconciliation are outside of the Company’s control and/or cannot be reasonably predicted or estimated, such as the provision for income taxes.
Conference Call and Webcast Information
The Company has scheduled a conference call for Friday, September 3, 2021, at 11:00 a.m. ET (10:00 a.m. CT). To participate in the conference call dial (877) 388-2139 for domestic callers and (541) 797-2983 for international callers, in both cases using the conference passcode 6642169, and ask for the Quanex call a few minutes prior to the start time. A link to the live audio webcast will also be available on the Company’s website at http://www.quanex.com in the Investors section under Presentations & Events. A telephonic replay of the call will be available approximately two hours after the live broadcast ends and will be accessible through September 10, 2021. To access the replay dial (855) 859-2056 for domestic callers and (404) 537-3406 for international callers, in both cases referencing conference passcode 6642169.
About Quanex
Quanex Building Products Corporation is an industry-leading manufacturer of components sold to Original Equipment Manufacturers (OEMs) in the building products industry. Quanex designs and produces energy-efficient fenestration products in addition to kitchen and bath cabinet components. For more information contact Scott Zuehlke, Senior Vice President, Chief Financial Officer & Treasurer, at 713-877-5327 or scott.zuehlke@quanex.com.
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) and 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. Free Cash Flow is measured before application of certain contractual commitments (including capital lease obligations), and accordingly is not a true measure of Quanex’s residual cash flow available for discretionary expenditures. The Company believes that the presented non-GAAP measures provide a consistent basis for comparison between periods and will assist investors in understanding Quanex’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. The Company 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, such as the recent COVID-19 pandemic) on the economy and the demand for Quanex’s products, 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, 2020, 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.
QUANEX BUILDING PRODUCTS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)Three Months Ended July 31, Nine Months Ended July 31, 2021 2020 2021 2020 Net sales $ 279,877 $ 212,096 $ 780,381 $ 596,168 Cost of sales 219,866 162,427 604,723 469,586 Selling, general and administrative 27,766 21,973 88,299 62,818 Restructuring charges - 73 39 477 Depreciation and amortization 10,683 11,060 32,543 35,851 Operating income 21,562 16,563 54,777 27,436 Interest expense (597 ) (1,165 ) (1,988 ) (4,310 ) Other, net 188 (220 ) 645 116 Income before income taxes 21,153 15,178 53,434 23,242 Income tax expense (7,474 ) (4,345 ) (17,352 ) (6,898 ) Net income $ 13,679 $ 10,833 $ 36,082 $ 16,344 Earnings per common share, basic $ 0.41 $ 0.33 $ 1.09 $ 0.50 Earnings per common share, diluted $ 0.41 $ 0.33 $ 1.08 $ 0.50 Weighted average common shares outstanding: Basic 33,359 32,610 33,194 32,716 Diluted 33,650 32,739 33,518 32,845 Cash dividends per share $ 0.08 $ 0.08 $ 0.24 $ 0.24 QUANEX BUILDING PRODUCTS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)July 31, 2021 October 31, 2020 ASSETS Current assets: Cash and cash equivalents $ 43,663 $ 51,621 Accounts receivable, net 98,286 88,287 Inventories, net 93,493 61,181 Prepaid and other current assets 9,133 6,217 Total current assets 244,575 207,306 Property, plant and equipment, net 176,032 184,104 Operating lease right-of-use assets 54,811 51,824 Goodwill 150,487 146,154 Intangible assets, net 86,026 93,068 Other assets 7,261 9,129 Total assets $ 719,192 $ 691,585 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 79,167 $ 77,335 Accrued liabilities 52,751 38,289 Income taxes payable 1,327 6,465 Current maturities of long-term debt 839 692 Current operating lease liabilities 8,270 7,459 Total current liabilities 142,354 130,240 Long-term debt 72,439 116,728 Noncurrent operating lease liabilities 47,371 44,873 Deferred pension and postretirement benefits 10,765 10,923 Deferred income taxes 25,252 19,116 Other liabilities 15,622 13,946 Total liabilities 313,803 335,826 Stockholders’ equity: Common stock 373 373 Additional paid-in-capital 253,662 253,458 Retained earnings 241,582 213,517 Accumulated other comprehensive loss (22,968 ) (33,024 ) Treasury stock at cost (67,260 ) (78,565 ) Total stockholders’ equity 405,389 355,759 Total liabilities and stockholders' equity $ 719,192 $ 691,585 QUANEX BUILDING PRODUCTS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(In thousands)
(Unaudited)Nine Months Ended July 31, 2021 2020 Operating activities: Net income $ 36,082 $ 16,344 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 32,543 35,851 Stock-based compensation 1,470 513 Deferred income tax 5,429 438 Other, net 5,485 762 Changes in assets and liabilities: Increase in accounts receivable (8,277 ) (1,852 ) (Increase) decrease in inventory (32,113 ) 3,553 (Increase) decrease in other current assets (2,768 ) 1,218 Increase (decrease) in accounts payable 1,600 (1,878 ) Increase (decrease) in accrued liabilities 12,521 (7,611 ) (Decrease) increase in income taxes payable (5,158 ) 107 (Decrease) increase in deferred pension and postretirement benefits (158 ) 573 Increase (decrease) in other long-term liabilities 962 (181 ) Other, net (183 ) (276 ) Cash provided by operating activities 47,435 47,561 Investing activities: Capital expenditures (16,006 ) (20,673 ) Proceeds from disposition of capital assets 3,138 131 Cash used for investing activities (12,868 ) (20,542 ) Financing activities: Borrowings under credit facilities - 114,500 Repayments of credit facility borrowings (45,000 ) (119,000 ) Repayments of other long-term debt (502 ) (791 ) Common stock dividends paid (8,017 ) (7,910 ) Issuance of common stock 16,272 2,954 Payroll tax paid to settle shares forfeited upon vesting of stock (492 ) (454 ) Purchase of treasury stock (5,741 ) (6,693 ) Cash used for financing activities (43,480 ) (17,394 ) Effect of exchange rate changes on cash and cash equivalents 955 580 (Decrease) increase in cash and cash equivalents (7,958 ) 10,205 Cash and cash equivalents at beginning of period 51,621 30,868 Cash and cash equivalents at end of period $ 43,663 $ 41,073 QUANEX BUILDING PRODUCTS CORPORATION
FREE CASH FLOW AND NET DEBT RECONCILIATIONS
(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 July 31, Nine Months Ended July 31, 2021 2020 2021 2020 Cash provided by operating activities 18,475 $45,089 $47,435 $47,561 Capital expenditures (6,207) (4,360) (16,006) (20,673) Free Cash Flow $12,268 $40,729 $31,429 $26,888 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 July 31, 2021 2020 Revolving Credit Facility $58,000 $138,000 Finance Lease Obligations 15,951 15,729 Total Debt (1) 73,951 153,729 Less: Cash and cash equivalents 43,663 41,073 Net Debt $30,288 $112,656 (1) Excludes outstanding letters of credit. QUANEX BUILDING PRODUCTS CORPORATION
NON-GAAP FINANCIAL MEASURE DISCLOSURE
(In thousands, except per share data)
(Unaudited)Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended Reconciliation of Adjusted Net Income and Adjusted EPS July 31, 2021 July 31, 2020 July 31, 2021 July 31, 2020 Net
IncomeDiluted
EPSNet
IncomeDiluted
EPSNet
IncomeDiluted
EPSNet
LossDiluted
EPSNet income as reported $ 13,679 $ 0.41 $ 10,833 $ 0.33 $ 36,082 $ 1.08 $ 16,344 $ 0.50 Net Income reconciling items from below 512 0.01 280 0.01 1,686 0.05 2,387 0.07 Adjusted net income and adjusted EPS $ 14,191 $ 0.42 $ 11,113 $ 0.34 $ 37,768 $ 1.13 $ 18,731 $ 0.57 Reconciliation of Adjusted EBITDA Three Months Ended
July 31, 2021Three Months Ended
July 31, 2020Nine Months Ended
July 31, 2021Nine Months Ended
July 31, 2020Reconciliation Reconciliation Reconciliation Reconciliation Net income as reported $ 13,679 $ 10,833 $ 36,082 $ 16,344 Income tax expense 7,474 4,345 17,352 6,898 Other, net (188 ) 220 (645 ) (116 ) Interest expense 597 1,165 1,988 4,310 Depreciation and amortization 10,683 11,060 32,543 35,851 EBITDA 32,245 27,623 87,320 63,287 EBITDA reconciling items from below 682 73 2,160 1,875 Adjusted EBITDA $ 32,927 $ 27,696 $ 89,480 $ 65,162 Reconciling Items Three Months Ended
July 31, 2021Three Months Ended
July 31, 2020Nine Months Ended
July 31, 2021Nine Months Ended
July 31, 2020Income
StatementReconciling
ItemsIncome
StatementReconciling
ItemsIncome
StatementReconciling
ItemsIncome
StatementReconciling
ItemsNet sales $ 279,877 $ - $ 212,096 $ - $ 780,381 $ - $ 596,168 $ - Cost of sales 219,866 (307 ) (1 ) 162,427 - 604,723 (307 ) (1 ) 469,586 - Selling, general and administrative 27,766 (375 ) (2 ) 21,973 - 88,299 (1,814 ) (2 ) 62,818 (1,398 ) (2 ) Restructuring charges - - 73 (73 ) (3 ) 39 (39 ) (3 ) 477 (477 ) (3 ) EBITDA 32,245 682 27,623 73 87,320 2,160 63,287 1,875 Depreciation and amortization 10,683 - 11,060 - 32,543 - 35,851 (968 ) (4 ) Operating income 21,562 682 16,563 73 54,777 2,160 27,436 2,843 Interest expense (597 ) - (1,165 ) - (1,988 ) - (4,310 ) - Other, net 188 79 (5 ) (220 ) 458 (5 ) 645 161 (5 ) 116 390 (5 ) Income before income taxes 21,153 761 15,178 531 53,434 2,321 23,242 3,233 Income tax expense (7,474 ) (249 ) (6 ) (4,345 ) (251 ) (6 ) (17,352 ) (635 ) (6 ) (6,898 ) (846 ) (6 ) Net income $ 13,679 $ 512 $ 10,833 $ 280 $ 36,082 $ 1,686 $ 16,344 $ 2,387 Diluted earnings per share $ 0.41 $ 0.33 $ 1.08 $ 0.50 (1) Loss on damage to a plant caused by flooding of $0.3 million for the three and nine months ended July 31, 2021. (2) Transaction and advisory fees, $0.4 million related to the loss on a sale of a plant in the three months ended July 31, 2021, $1.8 million related to the loss on a sale of a plant in the nine months ended July 31, 2021, $1.3 million related to executive severance charges in the nine months ended July 31, 2020, respectively. (3) Restructuring charges related to the closure of manufacturing plant facilities. (4) Accelerated depreciation related to the closure of a North American Cabinet Components plant. (5) Foreign currency transaction losses. (6) Impact on a with and without basis. QUANEX BUILDING PRODUCTS CORPORATION
NON-GAAP FINANCIAL MEASURE DISCLOSURE
(In thousands)
(Unaudited)Reconciliation of Last Twelve Months Adjusted EBITDA Three Months Ended
July 31, 2021Three Months Ended
April 30, 2021Three Months Ended
January 31, 2021Three Months Ended
October 31, 2020Total Reconciliation Reconciliation Reconciliation Reconciliation Reconciliation Net income as reported $ 13,679 $ 14,551 $ 7,852 $ 22,152 $ 58,234 Income tax expense 7,474 6,454 3,424 4,906 22,258 Other, net (188 ) (265 ) (192 ) (164 ) (809 ) Interest expense 597 640 751 935 2,923 Depreciation and amortization 10,683 10,845 11,015 11,378 43,921 EBITDA 32,245 32,225 22,850 39,207 126,527 Cost of sales (1) 307 - - - 307 Selling, general and administrative (2) 375 - 1,439 - 1,814 Restructuring charges (3) - - 39 145 184 Adjusted EBITDA $ 32,927 $ 32,225 $ 24,328 $ 39,352 $ 128,832 (1) Loss on the damage of a plant caused by flooding. (2) Transaction and advisory fees, loss on the sale of a plant, and executive severance charges. (3) Restructuring charges relate to the closure of manufacturing plant facilities. QUANEX BUILDING PRODUCTS CORPORATION
SELECTED SEGMENT DATA
(In thousands)
(Unaudited)This table provides gross margin, operating (loss) income, 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
ComponentsUnallocated
Corp & OtherTotal Three months ended July 31, 2021 Net sales $ 147,818 $ 71,114 $ 61,936 $ (991 ) $ 279,877 Cost of sales 116,517 49,479 54,334 (464 ) 219,866 Gross Margin 31,301 21,635 7,602 (527 ) 60,011 Gross Margin % 21.2% 30.4% 12.3% 21.4% Selling, general and administrative 13,428 7,525 5,130 1,683 27,766 Depreciation and amortization 4,571 2,646 3,390 76 10,683 Operating income (loss) 13,302 11,464 (918 ) (2,286 ) 21,562 Depreciation and amortization 4,571 2,646 3,390 76 10,683 EBITDA 17,873 14,110 2,472 (2,210 ) 32,245 Loss on the damage of a plant - 307 - - 307 Loss on sale of plant 375 - - - 375 Adjusted EBITDA $ 18,248 $ 14,417 $ 2,472 $ (2,210 ) $ 32,927 Adjusted EBITDA Margin % 12.3% 20.3% 4.0% 11.8% Three months ended July 31, 2020 Net sales $ 122,386 $ 38,265 $ 51,925 $ (480 ) $ 212,096 Cost of sales 92,639 25,845 44,218 (275 ) 162,427 Gross Margin 29,747 12,420 7,707 (205 ) 49,669 Gross Margin % 24.3% 32.5% 14.8% 23.4% Selling, general and administrative 11,922 4,748 4,634 669 21,973 Restructuring charges 71 - 2 - 73 Depreciation and amortization 5,371 2,307 3,264 118 11,060 Operating income (loss) 12,383 5,365 (193 ) (992 ) 16,563 Depreciation and amortization 5,371 2,307 3,264 118 11,060 EBITDA 17,754 7,672 3,071 (874 ) 27,623 Restructuring charges 71 - 2 - 73 Adjusted EBITDA $ 17,825 $ 7,672 $ 3,073 $ (874 ) $ 27,696 Adjusted EBITDA Margin % 14.6% 20.0% 5.9% 13.1% Nine months ended July 31, 2021 Net sales $ 422,077 $ 181,862 $ 179,492 $ (3,050 ) $ 780,381 Cost of sales 328,278 122,631 155,370 (1,556 ) 604,723 Gross Margin 93,799 59,231 24,122 (1,494 ) 175,658 Gross Margin % 22.2% 32.6% 13.4% 22.5% Selling, general and administrative 38,944 21,559 15,372 12,424 88,299 Restructuring charges 39 - - - 39 Depreciation and amortization 14,528 7,771 9,965 279 32,543 Operating income (loss) 40,288 29,901 (1,215 ) (14,197 ) 54,777 Depreciation and amortization 14,528 7,771 9,965 279 32,543 EBITDA 54,816 37,672 8,750 (13,918 ) 87,320 Loss on the damage of a plant - 307 - - 307 Loss on sale of plant 375 - - 1,439 1,814 Restructuring charges 39 - - - 39 Adjusted EBITDA $ 55,230 $ 37,979 $ 8,750 $ (12,479 ) $ 89,480 Adjusted EBITDA Margin % 13.1% 20.9% 4.9% 11.5% Nine months ended July 31, 2020 Net sales $ 341,432 $ 104,230 $ 152,634 $ (2,128 ) $ 596,168 Cost of sales 266,489 72,055 132,259 (1,217 ) 469,586 Gross Margin 74,943 32,175 20,375 (911 ) 126,582 Gross Margin % 21.9% 30.9% 13.3% 21.2% Selling, general and administrative 34,962 15,990 13,468 (1,602 ) 62,818 Restructuring charges 228 - 249 - 477 Depreciation and amortization 18,311 7,045 10,139 356 35,851 Operating income (loss) 21,442 9,140 (3,481 ) 335 27,436 Depreciation and amortization 18,311 7,045 10,139 356 35,851 EBITDA 39,753 16,185 6,658 691 63,287 Transaction and advisory fees - - - 55 55 Executive severance charges - - - 1,343 1,343 Restructuring charges 228 - 249 - 477 Adjusted EBITDA $ 39,981 $ 16,185 $ 6,907 $ 2,089 $ 65,162 Adjusted EBITDA Margin % 11.7% 15.5% 4.5% 10.9% QUANEX BUILDING PRODUCTS CORPORATION
SALES ANALYSIS
(In thousands)
(Unaudited)Three Months Ended Nine Months Ended July 31, 2021 July 31, 2020 July 31, 2021 July 31, 2020 NA Fenestration: United States - fenestration $ 129,291 $ 109,455 $ 369,809 $ 302,094 International - fenestration 9,581 6,696 25,756 19,284 United States - non-fenestration 5,853 4,845 17,543 13,779 International - non-fenestration 3,093 1,390 8,969 6,275 $ 147,818 $ 122,386 $ 422,077 $ 341,432 EU Fenestration (1): International - fenestration $ 54,883 $ 31,904 $ 147,072 $ 87,732 International - non-fenestration 16,231 6,361 34,790 16,498 $ 71,114 $ 38,265 $ 181,862 $ 104,230 NA Cabinet Components: United States - fenestration $ 3,240 $ 2,666 $ 9,711 $ 8,461 United States - non-fenestration 57,418 48,849 168,308 142,838 International - non-fenestration 1,278 410 1,473 1,335 $ 61,936 $ 51,925 $ 179,492 $ 152,634 Unallocated Corporate & Other: Eliminations $ (991 ) $ (480 ) $ (3,050 ) $ (2,128 ) $ (991 ) $ (480 ) $ (3,050 ) $ (2,128 ) Net Sales $ 279,877 $ 212,096 $ 780,381 $ 596,168 (1) Reflects increase of $4.1 million and $8.6 million in revenue associated with foreign currency exchange rate impacts for the three and nine months ended July 31, 2021, respectively.