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home / news releases / NX - Quanex Building Products Announces Fourth Quarter and Full Year 2023 Results

NX - Quanex Building Products Announces Fourth Quarter and Full Year 2023 Results

Quanex Building Products Corporation

Another Record Quarter for Earnings
Margin Expansion Across All Operating Segments
Repaid $40 Million in Bank Debt in Quarter
Balance Sheet and Liquidity Remain Strong
Record Year for Cash Provided by Operating Activities

HOUSTON, Dec. 14, 2023 (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, 2023.

The Company reported the following selected financial results:

Three Months Ended October 31,
Twelve Months Ended October 31,
($ in millions, except per share data)
2023
2022
2023
2022
Net Sales
$295.5
$307.5
$1,130.6
$1,221.5
Gross Margin
$80.0
$67.5
$277.5
$268.5
Gross Margin %
27.1 %
21.9 %
24.5 %
22.0 %
Net Income
$27.4
$24.7
$82.5
$88.3
Diluted EPS
$0.83
$0.75
$2.50
$2.66
Adjusted Net Income
$31.2
$25.0
$90.9
$88.9
Adjusted Diluted EPS
$0.95
$0.75
$2.75
$2.68
Adjusted EBITDA
$50.8
$38.7
$159.6
$152.5
Adjusted EBITDA Margin %
17.2 %
12.6 %
14.1 %
12.5 %
Cash Provided by Operating Activities
$44.5
$48.1
$147.1
$98.0
Free Cash Flow
$29.6
$34.5
$109.7
$64.8

(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, President and Chief Executive Officer, commented, “We reported another record quarter for earnings and our balance sheet and liquidity remain strong. Despite pressure on revenue due to market volume softness related to ongoing macroeconomic challenges, and some pricing pressure as raw material costs declined, we converted very well and realized margin expansion across all operating segments in both the fourth quarter and the full year. Our continued focus on controlling what we can control helped drive our improved results and we believe we are hitting our stride from an operational standpoint. Overall, we are proud of what we were able to accomplish in 2023.

“Managing working capital and generating cash is a core focus of ours, which enabled us to pay down our bank debt by $40 million during the fourth quarter alone. In fact, we generated record free cash flow in 2023.” (See Non-GAAP Terminology Definitions and Disclaimers section and Free Cash Flow reconciliation table for additional information)

Fourth Quarter and Fiscal 2023 Results Summary

Quanex reported net sales of $295.5 million during the three months ended October 31, 2023, which represents a decrease of 3.9% compared to $307.5 million for the same period of 2022. The Company reported net sales of $1.13 billion during the twelve months ended October 31, 2023, which represents a decrease of 7.4% compared to $1.22 billion for the same period of 2022. The decreases were primarily attributable to softer market demand and lower pricing in North America. Quanex reported net sales growth of 1.3% for the fourth quarter of 2023 and a decline of 2.9% in net sales for the full year in its North American Fenestration segment. Excluding the contribution from the LMI Custom Mixing assets the Company acquired on November 1, 2022, net sales in the North American Fenestration segment would have declined by 10.7% for the fourth quarter and 13.9% for the full year. In its North American Cabinet Components segment, Quanex reported a decline of 23.7% in net sales for the fourth quarter and a decline of 21.9% in net sales for the full year. Excluding foreign exchange impact, the Company realized a decrease in net sales of 3.7% for the fourth quarter and a decrease of 2.8% in net sales for the full year in its European Fenestration segment. (See Sales Analysis table for additional information)

The increase in adjusted earnings for the three months and twelve months ended October 31, 2023 was largely attributable to effective cost control, real price increases, a decline in raw material costs and a decrease in income tax expense. As such, Quanex was able to realize margin expansion in the fourth quarter and full year in each of its operating segments and on a consolidated basis.

Balance Sheet Update

As of October 31, 2023, Quanex had total debt of $70.0 million ($18.5 million excluding real-estate leases that are considered “finance” leases under U.S. GAAP) and the Company’s leverage ratio of Net Debt to LTM Adjusted EBITDA decreased to 0.1x (Net Debt free excluding these real-estate leases). As of October 31, 2023, Quanex’s LTM Adjusted EBITDA was $159.6 million and LTM Net Income, the most directly comparable GAAP measure, was $82.5 million. (See Non-GAAP Terminology Definitions and Disclaimers section, Net Debt Reconciliation table and Last Twelve Months Adjusted EBITDA Reconciliation table for additional information)

Outlook

Mr. Wilson stated, “We enter fiscal 2024 with a somewhat cautious outlook for the first half due to the ongoing macroeconomic challenges combined with typical seasonality in our business, but we are optimistic that demand for our products will improve in the second half as consumer confidence is restored over time. However, consistent with the last two years, based on current macro indicators, recent conversations with our customers, limited transparency, and varying opinions on the outlook for 2024, we are taking a thoughtful approach to guidance for 2024. As such, we believe it would be premature to give guidance at this time and intend to re-visit guidance for 2024 when we report earnings for the first quarter. Our long-term view continues to be optimistic as the underlying fundamentals for the residential housing market remain positive.”

Conference Call and Webcast Information

The Company has also scheduled a conference call for Friday, December 15, 2023 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/BI8c21998a92f24071bb721ad032dd7661

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, vinyl fencing, solar, refrigeration, custom mixing and cabinetry markets. Looking ahead, Quanex plans to leverage its material science expertise and process engineering to expand into adjacent markets.

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. 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, 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, 2022, 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 NET INCOME
(In thousands, except per share data)
(Unaudited)
Three Months Ended October 31,
Twelve Months Ended October, 31
2023
2022
2023
2022
Net sales
$
295,492
$
307,532
$
1,130,583
$
1,221,502
Cost of sales
215,473
240,073
853,059
953,004
Selling, general and administrative
29,326
29,334
123,957
117,108
Depreciation and amortization
11,194
9,555
42,866
40,109
Operating income
39,499
28,570
110,701
111,281
Interest expense
(1,565
)
(710
)
(8,136
)
(2,559
)
Other, net
(6,110
)
136
(5,519
)
1,041
Income before income taxes
31,824
27,996
97,046
109,763
Income tax expense
(4,442
)
(3,329
)
(14,545
)
(21,427
)
Net income
$
27,382
$
24,667
$
82,501
$
88,336
Earnings per common share, basic
$
0.84
$
0.75
$
2.51
$
2.67
Earnings per common share, diluted
$
0.83
$
0.75
$
2.50
$
2.66
Weighted average common shares outstanding:
Basic
32,753
32,916
32,819
33,048
Diluted
32,991
33,082
33,026
33,205
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, 2023
October 31, 2022
ASSETS
Current assets:
Cash and cash equivalents
$
58,474
$
55,093
Accounts receivable, net
97,311
96,018
Inventories, net
97,959
120,890
Income taxes receivable
8,298
-
Prepaid and other current assets
11,558
8,664
Total current assets
273,600
280,665
Property, plant and equipment, net
250,664
180,400
Operating lease right-of-use assets
46,620
56,000
Goodwill
182,956
137,855
Intangible assets, net
74,115
65,035
Other assets
3,188
4,662
Total assets
$
831,143
$
724,617
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
74,371
$
77,907
Accrued liabilities
50,319
52,114
Income taxes payable
384
1,049
Current maturities of long-term debt
2,365
1,046
Current operating lease liabilities
7,224
7,727
Total current liabilities
134,663
139,843
Long-term debt
66,435
29,628
Noncurrent operating lease liabilities
40,361
49,286
Deferred pension benefits
-
3,917
Deferred income taxes
29,133
22,277
Liabilities for uncertain tax positions
250
1,361
Other liabilities
14,747
13,470
Total liabilities
285,589
259,782
Stockholders’ equity:
Common stock
372
372
Additional paid-in-capital
251,576
251,947
Retained earnings
409,318
337,456
Accumulated other comprehensive loss
(38,141
)
(49,422
)
Treasury stock at cost
(77,571
)
(75,518
)
Total stockholders’ equity
545,554
464,835
Total liabilities and stockholders' equity
$
831,143
$
724,617


QUANEX BUILDING PRODUCTS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(In thousands)
(Unaudited)
Twelve Months Ended October, 31
2023
2022
Operating activities:
Net income
$
82,501
$
88,336
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization
42,866
40,109
Loss on the disposition of capital assets
278
109
Stock-based compensation
2,521
2,291
Deferred income tax
5,147
2,097
Other, net
1,529
1,905
Changes in assets and liabilities:
Decrease in accounts receivable
6,969
6,945
Decrease (increase) in inventory
30,024
(32,035
)
Increase in other current assets
(1,880
)
(970
)
Decrease in accounts payable
(11,611
)
(3,047
)
Decrease in accrued liabilities
(4,249
)
(3,159
)
Decrease in income taxes payable
(9,009
)
(5,192
)
(Decrease) increase in deferred pension benefits
(359
)
77
Increase in other long-term liabilities
683
305
Other, net
1,642
194
Cash provided by operating activities
147,052
97,965
Investing activities:
Business acquisition
(91,302
)
-
Capital expenditures
(37,390
)
(33,121
)
Proceeds from disposition of capital assets
253
159
Cash used for investing activities
(128,439
)
(32,962
)
Financing activities:
Borrowings under credit facilities
102,000
70,500
Repayments of credit facility borrowings
(100,000
)
(95,500
)
Debt issuance costs
-
(1,210
)
Repayments of other long-term debt
(2,567
)
(1,747
)
Common stock dividends paid
(10,639
)
(10,598
)
Issuance of common stock
1,215
689
Payroll tax paid to settle shares forfeited upon vesting of stock
(567
)
(1,413
)
Purchase of treasury stock
(5,593
)
(6,600
)
Cash used for financing activities
(16,151
)
(45,879
)
Effect of exchange rate changes on cash and cash equivalents
919
(4,092
)
Increase in cash and cash equivalents
3,381
15,032
Cash and cash equivalents at beginning of period
55,093
40,061
Cash and cash equivalents at end of period
$
58,474
$
55,093


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
2023
2022
2023
2022
Cash provided by operating activities
$44,493
$48,111
$147,052
$97,965
Capital expenditures
(14,940)
(13,633)
(37,390)
(33,121)
Free Cash Flow
$29,553
$34,478
$109,662
$64,844
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,
2023
2022
Revolving credit facility
$15,000
$13,000
Finance lease obligations (1)
55,000
19,202
Total debt (2)
70,000
32,202
Less: Cash and cash equivalents
58,474
55,093
Net Debt
$11,526
($22,891)
(1) Includes $51.5 million and $17.7 million in real estate lease liabilities considered finance leases under U.S. GAAP as of October 31, 2023 and October 31, 2022, 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, 2023
Three Months Ended
July 31, 2023
Three Months Ended
April 30, 2023
Three Months Ended
January 31, 2023
Total
Reconciliation
Reconciliation
Reconciliation
Reconciliation
Reconciliation
Net income as reported
$
27,382
$
31,698
$
21,512
$
1,909
$
82,501
Income tax expense
4,442
4,099
5,551
453
14,545
Other, net
6,110
(402
)
29
(218
)
5,519
Interest expense
1,565
2,068
2,244
2,259
8,136
Depreciation and amortization
11,194
10,596
10,456
10,620
42,866
EBITDA
50,693
48,059
39,792
15,023
153,567
Cost of sales (1)
(35
)
-
48
-
13
Selling, general and administrative (1),(2)
109
395
63
5,448
6,015
Adjusted EBITDA
$
50,767
$
48,454
$
39,903
$
20,471
$
159,595
(1) Loss on damage to manufacturing facilities caused by weather.
(2) Transaction and advisory fees.

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, 2023
Three Months Ended
October 31, 2022
Twelve Months Ended
October 31, 2023
Twelve Months Ended
October 31, 2022
Net Income
Diluted EPS
Net Income
Diluted EPS
Net Income
Diluted EPS
Net Income
Diluted EPS
Net income as reported
$
27,382
$
0.83
$
24,667
$
0.75
$
82,501
$
2.50
$
88,336
$
2.66
Net income reconciling items from below
3,851
$
0.12
290
$
-
8,401
$
0.25
581
$
0.02
Adjusted net income and adjusted EPS
$
31,233
$
0.95
$
24,957
$
0.75
$
90,902
$
2.75
$
88,917
$
2.68
Reconciliation of Adjusted EBITDA
Three Month Ended
October 31, 2023
Three Months Ended
October 31, 2022
Twelve Months Ended
October 31, 2023
Twelve Months Ended
October 31, 2022
Reconciliation
Reconciliation
Reconciliation
Reconciliation
Net income as reported
$
27,382
$
24,667
$
82,501
$
88,336
Income tax expense
4,442
3,329
14,545
21,427
Other, net
6,110
(136
)
5,519
(1,041
)
Interest expense
1,565
710
8,136
2,559
Depreciation and amortization
11,194
9,555
42,866
40,109
EBITDA
50,693
38,125
153,567
151,390
EBITDA reconciling items from below
74
564
6,028
1,114
Adjusted EBITDA
$
50,767
$
38,689
$
159,595
$
152,504
Reconciling Items
Three Months Ended
October 31, 2023
Three Months Ended
October 31, 2022
Twelve Months Ended
October 31, 2023
Twelve Months Ended
October 31, 2022
Income Statement
Reconciling Items
Income Statement
Reconciling Items
Income Statement
Reconciling Items
Income Statement
Reconciling Items
Net sales
$
295,492
$
-
$
307,532
$
-
$
1,130,583
$
-
$
1,221,502
$
-
Cost of sales
215,473
35
(1
)
240,073
-
853,059
(13
)
(1
)
953,004
-
Selling, general and administrative
29,326
(109
)
(1),(2)
29,334
(564
)
(2
)
123,957
(6,015
)
(1),(2)
117,108
(1,114
)
(2
)
EBITDA
50,693
74
38,125
564
153,567
6,028
151,390
1,114
Depreciation and amortization
11,194
-
9,555
-
42,866
-
40,109
-
Operating income
39,499
74
28,570
564
110,701
6,028
111,281
1,114
Interest expense
(1,565
)
-
(710
)
-
(8,136
)
-
(2,559
)
-
Other, net
(6,110
)
5,232
(3
)
136
(222
)
(3
)
(5,519
)
5,196
(3
)
1,041
(386
)
(3
)
Income before income taxes
31,824
5,306
27,996
342
97,046
11,224
109,763
728
Income tax expense
(4,442
)
(1,455
)
(4
)
(3,329
)
(52
)
(4
)
(14,545
)
(2,823
)
(4
)
(21,427
)
(147
)
(4
)
Net income
$
27,382
$
3,851
$
24,667
$
290
$
82,501
$
8,401
$
88,336
$
581
Diluted earnings per share
$
0.83
$
0.75
$
2.50
$
2.66
(1) Loss on damage to manufacturing facilities caused by weather.
(2) Transaction and advisory fees.
(3) Foreign currency translation losses (gains) and pension settlement expense.
(4)Tax impact of net income reconciling items.


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 Components
Unallocated Corp & Other
Total
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
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
Adjusted EBITDA
$
29,649
$
16,746
$
5,114
$
(742
)
$
50,767
Adjusted EBITDA Margin %
16.4
%
26.1
%
9.9
%
17.2
%
Three months ended October 31, 2022
Net sales
$
178,175
$
62,104
$
67,993
$
(740
)
$
307,532
Cost of sales
141,395
42,121
56,904
(347
)
240,073
Gross Margin
36,780
19,983
11,089
(393
)
67,459
Gross Margin %
20.6
%
32.2
%
16.3
%
21.9
%
Selling, general and administrative
15,636
7,686
6,111
(99
)
29,334
Depreciation and amortization
4,032
2,256
3,177
90
9,555
Operating income (loss)
17,112
10,041
1,801
(384
)
28,570
Depreciation and amortization
4,032
2,256
3,177
90
9,555
EBITDA
21,144
12,297
4,978
(294
)
38,125
Transaction and advisory fees
-
-
-
564
564
Adjusted EBITDA
$
21,144
$
12,297
$
4,978
$
270
$
38,689
Adjusted EBITDA Margin %
11.9
%
19.8
%
7.3
%
12.6
%
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
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
%
Twelve months ended October 31, 2022
Net sales
$
687,458
$
262,058
$
275,704
$
(3,718
)
$
1,221,502
Cost of sales
537,900
180,268
236,695
(1,859
)
953,004
Gross Margin
149,558
81,790
39,009
(1,859
)
268,498
Gross Margin %
21.8
%
31.2
%
14.1
%
22.0
%
Selling, general and administrative
58,735
31,846
21,934
4,593
117,108
Depreciation and amortization
16,253
9,674
13,830
352
40,109
Operating income (loss)
74,570
40,270
3,245
(6,804
)
111,281
Depreciation and amortization
16,253
9,674
13,830
352
40,109
EBITDA
90,823
49,944
17,075
(6,452
)
151,390
Transaction and advisory fees
-
-
-
1,114
1,114
Adjusted EBITDA
$
90,823
$
49,944
$
17,075
$
(5,338
)
$
152,504
Adjusted EBITDA Margin %
13.2
%
19.1
%
6.2
%
12.5
%


QUANEX BUILDING PRODUCTS CORPORATION
SALES ANALYSIS
(In thousands)
(Unaudited)
Three Months Ended October 31,
Twelve Months Ended October, 31
2023
2022
2023
2022
NA Fenestration: (1)
United States - fenestration
$
138,783
$
162,147
$
518,396
$
609,572
International - fenestration
8,081
4,954
30,100
35,906
United States - non-fenestration
29,267
6,922
103,090
29,039
International - non-fenestration
4,315
4,152
15,896
12,941
$
180,446
$
178,175
$
667,482
$
687,458
EU Fenestration: (2)
International - fenestration
$
49,862
$
46,329
$
191,871
$
194,854
International - non-fenestration
14,308
15,775
58,903
67,204
$
64,170
$
62,104
$
250,774
$
262,058
NA Cabinet Components:
United States - fenestration
$
4,286
$
4,408
$
16,899
$
17,696
United States - non-fenestration
47,092
62,818
195,866
254,726
International - non-fenestration
490
767
2,680
3,282
$
51,868
$
67,993
$
215,445
$
275,704
Unallocated Corporate & Other:
Eliminations
$
(992
)
$
(740
)
$
(3,118
)
$
(3,718
)
$
(992
)
$
(740
)
$
(3,118
)
$
(3,718
)
Net Sales
$
295,492
$
307,532
$
1,130,583
$
1,221,502
(1) Includes the net sales from the acquisition of LMI of $21.4 million and $75.6 million for the three and twelve months ended October 31, 2023, respectively.
(2) Reflects an increase of $4.5 million and a reduction of $4.1 million in revenue associated with foreign currency exchange rate impacts for the three and twelve months ended October 31, 2023, respectively.

Stock Information
Company Name: Quanex Building Products Corporation
Stock Symbol: NX
Market: NYSE
Website: quanex.com
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