Quanex Building Products Announces Fourth Quarter and Fiscal Year 2017 Results

Over $45 Million of Bank Debt Paid Down in 2017
Growth and Margin Expansion Expected in 2018

HOUSTON, Dec. 11, 2017 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation (NYSE:NX) (“Quanex” or the “Company”) today announced its results for the quarter and fiscal year ended October 31, 2017.

Bill Griffiths, Chairman, President and Chief Executive Officer, commented, “Fiscal 2017 was a year with a lot of moving parts related to eliminating low margin business from the portfolio, consolidating facilities and redeploying assets; however, we are now well positioned for growth and margin expansion in 2018. The hurricanes that hit Texas and Florida in August and September created some softness and inefficiencies during the fourth quarter, mostly in our North American Cabinet Components segment, but we anticipate incremental demand for our products in the coming months and years as rebuilding efforts continue. Looking past the noise, the underlying growth rate for our legacy fenestration business in the U.S. was 6.1% in fiscal 2017, which is more than double Ducker’s latest window shipment estimate of 2.9% growth for the twelve months ended September 30, 2017. Free cash flow continued to be strong in fiscal 2017, which allowed us to repay more than $45 million of bank debt. Looking ahead, we will continue to focus on generating cash and deleveraging the balance sheet.”

Fourth Quarter and Fiscal Year 2017 Results Summary

Quanex reported the following selected financial results:

Three Months Ended October 31, Twelve Months Ended October 31,
2017 2016 2017 2016
Net Sales $233.0 $249.2 $866.6 $928.2
Net Income (loss) $10.7 $5.4 $18.7 ($1.9)
Diluted EPS $0.31 $0.16 $0.54 ($0.05)
Adjusted Net Income $13.1 $15.7 $27.0 $27.7
Adjusted Diluted EPS $0.37 $0.45 $0.77 $0.82
Adjusted EBITDA $33.3 $34.6 $99.0 $110.3
(See Non-GAAP Terminology Definitions and Disclaimers section, Non-GAAP Financial Measure Disclosure table and Selected Segment Data table for additional information)

The decreases in net sales were largely driven by the Company’s decision to exit business that does not meet its financial objectives. (See Sales Analysis table for additional information)

The decreases in adjusted earnings were primarily attributable to lower volumes and short-term inefficiencies related to transitioning away from less profitable business throughout the year coupled with the impact of hurricanes in the U.S. during the fourth quarter. (See Non-GAAP Terminology Definitions and Disclaimers section, Non-GAAP Financial Measure Disclosure table and Selected Segment Data table for additional information)

As of October 31, 2017, Quanex’s leverage ratio of Net Debt to LTM Adjusted EBITDA was 2.3x. The Company remains focused on generating Free Cash Flow to pay down debt and expects to end fiscal 2018 with a leverage ratio below 2.0x. (See Non-GAAP Terminology Definitions and Disclaimers section for additional information)

Business Update

Quanex divested its non-core wood flooring business, Owens Flooring, on October 31, 2017. Owens Flooring contributed $9.4 million of revenue and net income of less than $0.1 million, excluding the loss on the sale of the plant, in fiscal 2017.

Outlook

Bill Griffiths, Chairman, President and Chief Executive Officer, stated, “We continue to be encouraged by the macro indicators that impact our business and believe this housing cycle has several years to run at low-to-mid single-digit growth rates for Quanex as a whole. In fact, after adjusting for the foreign exchange impact, the divestiture of the wood flooring business and other business we consciously shed, the consolidated business grew at 4.4% in 2017. We anticipate a similar growth rate in 2018. As a result, we expect to generate net sales of $890 million to $900 million and Adjusted EBITDA* of $103 million to $108 million.”

*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 Tuesday, December 12, 2017, 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 5996538, 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 December 19, 2017. To access the replay dial (855) 859-2056 for domestic callers and (404) 537-3406 for international callers, in both cases referencing conference passcode 5996538.

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, Vice President, Investor Relations & Treasurer, at 713-877-5327 or scott.zuehlke@quanex.com.

Non-GAAP Terminology Definitions and Disclaimers

Adjusted Net Income (Loss) (defined as net income further adjusted to exclude purchase price accounting inventory step-ups, transaction costs, gain/loss on the sale of fixed assets, one-time employee benefit adjustment, restructuring charges, adjustments related to accelerated depreciation and amortization for restructured PP&E and intangible assets, interest expense adjustments related to the write off of deferred loan costs, unamortized original issuance discount and prepayment call premium related to debt refinance, 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, gain/loss on the sale of fixed assets, one-time employee benefit adjustment and restructuring charges) are non-GAAP financial measures that the Company uses to measure operational performance and assist with financial decision-making. Net Debt is calculated using the sum of current maturities of long-term debt and long-term debt, minus cash and cash equivalents. The leverage ratio of Net Debt to LTM Adjusted EBITDA is a financial measure that Quanex believes is useful to investors and financial analysts in evaluating the Company’s leverage. In addition, with certain limited adjustments, this leverage ratio is the basis for a key covenant in Quanex’s credit agreement. Free Cash Flow is a non-GAAP measure calculated using cash provided by operating activities less capital expenditures. 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 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, 2016, 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 (LOSS)
(In thousands, except per share data)
(Unaudited)
Three Months Ended October 31, Twelve Months Ended October 31,
2017 2016 2017 2016
Net sales $232,959 $249,171 $866,555 $928,184
Cost of sales 178,325 188,168 672,162 710,644
Selling, general and administrative 23,142 26,480 97,981 114,910
Restructuring charges 1,467 529 4,550 529
Depreciation and amortization 13,794 13,387 57,495 53,146
Asset impairment charges - 12,602 - 12,602
Operating income 16,231 8,005 34,367 36,353
Interest expense (2,469) (2,174) (9,595) (36,498)
Other, net 158 (1,443) 730 (5,479)
Income (loss) before income taxes 13,920 4,388 25,502 (5,624)
Income tax (expense) benefit (3,188) 1,043 (6,819) 3,765
Net income (loss) $10,732 $5,431 $18,683 $(1,859)
Income (loss) per common share, basic $0.31 $0.16 $0.55 $(0.05)
Income (loss) per common share, diluted $0.31 $0.16 $0.54 $(0.05)
Weighted average common shares outstanding:
Basic 34,493 33,953 34,230 33,876
Diluted 35,169 34,536 34,837 33,876
Cash dividends per share $0.04 $0.04 $0.16 $0.16


QUANEX BUILDING PRODUCTS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
October 31, 2017 October 31, 2016
ASSETS
Current assets:
Cash and cash equivalents $17,455 $25,526
Accounts receivable, net 79,411 83,625
Inventories, net 87,529 84,335
Prepaid and other current assets 7,406 10,488
Total current assets 191,801 203,974
Property, plant and equipment, net 211,131 198,497
Goodwill 222,194 217,035
Intangible assets, net 139,778 154,180
Other assets 8,975 6,667
Total assets $773,879 $780,353
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $44,150 $47,781
Accrued liabilities 38,871 55,101
Income taxes payable 2,192 732
Current maturities of long-term debt 21,242 10,520
Total current liabilities 106,455 114,134
Long-term debt 218,184 259,011
Deferred pension and postretirement benefits 4,433 8,167
Deferred income taxes 21,960 18,322
Other liabilities 16,000 12,888
Total liabilities 367,032 412,522
Stockholders’ equity:
Common stock 375 376
Additional paid-in-capital 255,719 254,540
Retained earnings 225,704 214,047
Accumulated other comprehensive loss (25,076) (38,765)
Treasury stock at cost (49,875) (62,367)
Total stockholders’ equity 406,847 367,831
Total liabilities and stockholders' equity $773,879 $780,353


QUANEX BUILDING PRODUCTS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(In thousands)
(Unaudited)
Twelve Months Ended October 31,
2017 2016
Operating activities:
Net income (loss)$18,683 $(1,859)
Adjustments to reconcile net income (loss)' to cash provided by operating activities:
Depreciation and amortization 57,495 53,146
Stock-based compensation 5,189 6,089
Deferred income tax (112) (8,469)
Excess tax benefit from share-based compensation (248) (136)
Loss (gain) on the disposition of capital assets 1,528 (20)
Charge for deferred loan costs and debt discount - 16,022
Asset impairment charge - 12,602
Gain on involuntary conversion - -
Other, net 1,741 339
Changes in assets and liabilities, net of effects from acquisitions:
Decrease in accounts receivable 5,378 796
(Increase) decrease in inventory (3,240) 5,346
Increase in other current assets 186 2,503
Decrease in accounts payable (4,893) (2,273)
(Decrease) increase in accrued liabilities (8,497) 1,246
Increase (decrease) in income taxes 4,670 (365)
(Decrease) increase in deferred pension and postretirement benefits (271) 588
Increase in other long-term liabilities 1,382 956
Other, net (437) (93)
Cash provided by operating activities 78,554 86,418
Investing activities:
Acquisitions, net of cash acquired (8,497) (245,904)
Capital expenditures (34,564) (37,243)
Proceeds from disposition of capital assets 1,937 1,044
Cash used for investing activities (41,124) (282,103)
Financing activities:
Borrowings under credit facilities 53,500 634,800
Repayments of credit facility borrowings (98,875) (422,875)
Debt issuance costs - (11,435)
Repayments of other long-term debt (2,722) (2,185)
Common stock dividends paid (5,516) (5,470)
Issuance of common stock 7,953 3,400
Excess tax benefit from share-based compensation 248 136
Cash (used for) provided by financing activities (45,412) 196,371
Effect of exchange rate changes on cash and cash equivalents (89) 1,715
(Decrease) increase in cash and cash equivalents (8,071) 2,401
Cash and cash equivalents at beginning of period 25,526 23,125
Cash and cash equivalents at end of period$17,455 $25,526


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, 2017
Three Months Ended
October 31, 2016
Twelve Months Ended
October 31, 2017
Twelve Months Ended
October 31, 2016
Net
Income
Diluted
EPS
Net
Income
Diluted
EPS
Net
Income
Diluted
EPS
Net
Income
Diluted
EPS
Net income (loss) as reported $10,732 $0.31 $5,431 $0.16 $18,683 $0.54 $(1,859) $(0.05)
Reconciling items from below 2,337 0.06 10,214 0.29 8,303 0.23 29,551 0.87
Adjusted Net income and Adjusted EPS $13,069 $0.37 $15,645 $0.45 $26,986 $0.77 $27,692 $0.82
Reconciliation of Adjusted EBITDA Three Months Ended
October 31, 2017
Three Months Ended
October 31, 2016
Twelve Months Ended
October 31, 2017
Twelve Months Ended
October 31, 2016
Reconciliation Reconciliation Reconciliation Reconciliation
Net income (loss) as reported $10,732 $5,431 $18,683 $(1,859)
Income tax (expense) benefit 3,188 (1,043) 6,819 (3,765)
Other, net (158) 1,443 (730) 5,479
Interest expense 2,469 2,174 9,595 36,498
Depreciation and amortization 13,794 13,387 57,495 53,146
EBITDA 30,025 21,392 91,862 89,499
Reconciling items from below 3,263 13,164 7,156 20,790
Adjusted EBITDA $33,288 $34,556 $99,018 $110,289
Reconciling Items Three Months Ended
October 31, 2017
Three Months Ended
October 31, 2016
Twelve Months Ended
October 31, 2017
Twelve Months Ended
October 31, 2016
Income
Statement
Reconciling
Items
Income
Statement
Reconciling
Items
Income
Statement
Reconciling
Items
Income
Statement
Reconciling
Items
Net sales $232,959 $- $249,171 $- $866,555 $- $928,184 $-
Cost of sales 178,325 - 188,168 (32) (1) 672,162 (104) (1) 710,644 (2,671) (1)
Selling, general and administrative 23,142 (1,796) (2) 26,480 (1) (2) 97,981 (2,502) (2) 114,910 (4,988) (2)
Restructuring charges 1,467 (1,467) (3) 529 (529) (3) 4,550 (4,550) (3) 529 (529) (3)
EBITDA 30,025 3,263 33,994 562 91,862 7,156 102,101 8,188
Asset impairment charges - 12,602 (12,602) (4) - 12,602 (12,602) (4)
Depreciation and amortization 13,794 (731) (5) 13,387 (1,295) (5) 57,495 (6,233) (4) 53,146 (1,295) (5)
Operating income (loss) 16,231 3,994 8,005 14,459 34,367 13,389 36,353 22,085
Interest expense (2,469) - (2,174) - (9,595) - (36,498) 16,677 (5)
Other, net 158 (111) (6) (1,443) 1,501 (6) 730 (625) (6) (5,479) 5,380 (6)
Income (loss) before income taxes 13,920 3,883 4,388 15,960 25,502 12,764 (5,624) 44,142
Income tax (expense) benefit (3,188) (1,546) (7) 1,043 (5,746) (7) (6,819) (4,461) (7) 3,765 (14,591) (7)
Net income (loss) $10,732 $2,337 $5,431 $10,214 $18,683 $8,303 $(1,859) $29,551
Diluted earnings (loss) per share $0.31 $0.16 $0.54 $(0.05)
(1) Relates solely to purchase price accounting inventory step-up impact from HL Plastics acquisition.
(2) Acquisition related transaction costs, and the loss on the sale of plant in 4Q17.
(3) Restructuring charges relate to the closure of several manufacturing plant facilities.
(4) Impairment of goodwill at United States vinyl business in 2016.
(5) Accelerated depreciation and amortization for restructured PP&E and intangible assets.
(6) Foreign currency transaction (gains) losses.
(7) Impact on a with and without basis.


QUANEX BUILDING PRODUCTS CORPORATION
Segment Reconciliation
(In thousands)
(Unaudited)
The following tables reconcile the Company's segment presentation to account for the transfer of operating facilities from the North American Engineered Components segment to the Cabinet Components segment, as previously reported in our earnings release for the three-months and twelve-months ended October 31, 2016, to the current presentation:
NA Engineered
Components
EU Engineered
Components
NA Cabinet
Components
Unallocated
Corp & Other
Total
Three months ended October 31, 2016
As previously reported
Net sales $154,000 $39,953 $56,485 $(1,267) $249,171
Cost of sales 111,491 27,754 49,844 (921) 188,168
Selling, general and administrative 16,548 5,817 2,554 1,561 26,480
Restructuring costs 387 - 142 - 529
Depreciation and amortization 8,874 2,148 2,239 126 13,387
Asset impairment charges 12,602 - - - 12,602
Operating income (loss) $4,098 $4,234 $1,706 $(2,033) $8,005
Reclassification
Net sales $(6,007) $- $6,598 $(591) $-
Cost of sales (4,329) - 4,920 (591) -
Selling, general and administrative (237) - 194 43 -
Restructuring costs - - - - -
Depreciation and amortization (131) - 131 - -
Asset impairment charges - - - - -
Operating income (loss) $(1,310) $- $1,353 $(43) $-
Current presentation
Net sales $147,993 $39,953 $63,083 $(1,858) $249,171
Cost of sales 107,162 27,754 54,764 (1,512) 188,168
Selling, general and administrative 16,311 5,817 2,748 1,604 26,480
Restructuring costs 387 - 142 - 529
Depreciation and amortization 8,743 2,148 2,370 126 13,387
Asset impairment charges 12,602 - - - 12,602
Operating income (loss) $2,788 $4,234 $3,059 $(2,076) $8,005
Twelve months ended October 31, 2016
As previously reported
Net sales $560,029 $150,203 $223,391 $(5,439) $928,184
Cost of sales 415,925 104,452 193,560 (3,293) 710,644
Selling, general and administrative 62,934 23,187 14,920 13,869 114,910
Restructuring costs 387 - 142 - 529
Depreciation and amortization 30,298 9,339 12,948 561 53,146
Asset impairment charges 12,602 - - - 12,602
Operating income (loss) $37,883 $13,225 $1,821 $(16,576) $36,353
Reclassification
Net sales $(21,780) $- $24,728 $(2,948) $-
Cost of sales (16,770) - 19,718 (2,948) -
Selling, general and administrative (851) - 851 - -
Restructuring costs - - - - -
Depreciation and amortization (505) - 505 - -
Asset impairment charges - - - - -
Operating income (loss) $(3,654) $- $3,654 $- $-
Current presentation
Net sales $538,249 $150,203 $248,119 $(8,387) $928,184
Cost of sales 399,155 104,452 213,278 (6,241) 710,644
Selling, general and administrative 62,083 23,187 15,771 13,869 114,910
Restructuring costs 387 - 142 - 529
Depreciation and amortization 29,793 9,339 13,453 561 53,146
Asset impairment charges 12,602 - - - 12,602
Operating income (loss) $34,229 $13,225 $5,475 $(16,576) $36,353


QUANEX BUILDING PRODUCTS CORPORATION
SELECTED SEGMENT DATA
(In thousands)
(Unaudited)
This table provides operating income (loss), EBITDA, and Adjusted EBITDA by reportable segment. Non-operating expense and income tax expense are not allocated to the reportable segments.
NA Engineered
Components
EU Engineered
Components
NA Cabinet
Components
Unallocated
Corp & Other
Total
Three months ended October 31, 2017
Net sales $ 131,380 $ 41,830 $ 61,110 $ (1,361) $ 232,959
Cost of sales 97,523 29,572 52,214 (984) 178,325
Selling, general and administrative 14,076 5,449 3,887 (270) 23,142
Restructuring charges 1,357 - 110 - 1,467
Depreciation and amortization 7,932 2,080 3,650 132 13,794
Operating income (loss) 10,492 4,729 1,249 (239) 16,231
Depreciation and amortization 7,932 2,080 3,650 132 13,794
EBITDA 18,424 6,809 4,899 (107) 30,025
Transaction related costs - - - 169 169
Loss on sale of plant 1,627 - - - 1,627
Restructuring charges 1,357 - 110 - 1,467
Adjusted EBITDA $ 21,408 $ 6,809 $ 5,009 $ 62 $ 33,288
Adjusted EBITDA Margin % 16.3% 16.3% 8.2% 14.3%
Three months ended October 31, 2016
Net sales $ 147,993 $ 39,953 $ 63,083 $ (1,858) $ 249,171
Cost of sales 107,162 27,754 54,764 (1,512) 188,168
Selling, general and administrative 16,311 5,817 2,748 1,604 26,480
Restructuring charges 387 - 142 - 529
Depreciation and amortization 8,743 2,148 2,370 126 13,387
Asset impairment charges 12,602 - - - 12,602
Operating income (loss) 2,788 4,234 3,059 (2,076) 8,005
Depreciation and amortization 8,743 2,148 2,370 126 13,387
EBITDA 11,531 6,382 5,429 (1,950) 21,392
Transaction related costs - - - 1 1
Restructuring charges 387 - 142 - 529
Asset impairment charges 12,602 - - - 12,602
PPA-Inventory Step-up - 32 - - 32
Adjusted EBITDA $ 24,520 $ 6,414 $ 5,571 $ (1,949) $ 34,556
Adjusted EBITDA Margin % 16.6% 16.1% 8.8% 13.9%
Twelve months ended October 31, 2017
Net sales $ 474,878 $ 147,963 $ 248,808 $ (5,094) $ 866,555
Cost of sales 357,806 104,876 213,257 (3,777) 672,162
Selling, general and administrative 52,889 20,581 16,626 7,885 97,981
Restructuring charges 3,564 - 986 - 4,550
Depreciation and amortization 34,308 8,833 13,811 543 57,495
Operating income (loss) 26,311 13,673 4,128 (9,745) 34,367
Depreciation and amortization 34,308 8,833 13,811 543 57,495
EBITDA 60,619 22,506 17,939 (9,202) 91,862
Transaction related costs - - - 497 497
Mexico restructuring, loss on disposal of fixed assets - - 190 - 190
One-time employee benefit adjustment - - 188 - 188
PPA-Inventory Step-up - 104 - - 104
Loss on sale of plant 1,627 - - - 1,627
Restructuring charges 3,564 - 986 - 4,550
Asset impairment charges - - - - -
Adjusted EBITDA $ 65,810 $ 22,610 $ 19,303 $ (8,705) $ 99,018
Adjusted EBITDA Margin % 13.9% 15.3% 7.8% 11.4%
Twelve months ended October 31, 2016
Net sales $ 538,249 $ 150,203 $ 248,119 $ (8,387) $ 928,184
Cost of sales 399,155 104,452 213,278 (6,241) 710,644
Selling, general and administrative 62,083 23,187 15,771 13,869 114,910
Restructuring charges 387 - 142 - 529
Depreciation and amortization 29,793 9,339 13,453 561 53,146
Asset impairment charges 12,602 - - - 12,602
Operating income (loss) 34,229 13,225 5,475 (16,576) 36,353
Depreciation and amortization 29,793 9,339 13,453 561 53,146
EBITDA 64,022 22,564 18,928 (16,015) 89,499
Transaction related costs - - - 4,988 4,988
Restructuring charges 387 - 142 - 529
Asset impairment charges 12,602 - - - 12,602
PPA-Inventory Step-up - 384 2,287 - 2,671
Adjusted EBITDA $ 77,011 $ 22,948 $ 21,357 $ (11,027) $ 110,289
Adjusted EBITDA Margin % 14.3% 15.3% 8.6% 11.9%


QUANEX BUILDING PRODUCTS CORPORATION
SALES ANALYSIS
(In thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
October 31, 2017 October 31, 2016 (1) October 31, 2017 October 31, 2016 (1)
NA Engineered Components:
United States - fenestration (2)$ 110,659 $ 124,670 $ 399,694 $ 444,571
International - fenestration 9,334 9,530 34,279 38,439
United States - non-fenestration 5,673 8,677 25,263 36,986
International - non-fenestration 5,714 5,116 15,642 18,253
$ 131,380 $ 147,993 $ 474,878 $ 538,249
EU Engineered Components (3):
United States - fenestration$ - $ 159 $ 303 $ 412
International - fenestration 37,015 35,283 129,140 134,631
International - non-fenestration 4,815 4,511 18,520 15,160
$ 41,830 $ 39,953 $ 147,963 $ 150,203
NA Cabinet Components:
United States - fenestration$ 5,597 $ 3,008 $ 17,083 $ 21,779
United States - non-fenestration (4) 54,977 59,431 229,550 223,664
International - non-fenestration 536 644 2,175 2,676
$ 61,110 $ 63,083 $ 248,808 $ 248,119
Unallocated Corporate & Other:
Eliminations$ (1,361) $ (1,858) $ (5,094) $ (8,387)
$ (1,361) $ (1,858) $ (5,094) $ (8,387)
Net Sales$ 232,959 $ 249,171 $ 866,555 $ 928,184
(1) Updated to reflect transfer of operating facilities from NA Engineered Components to NA Cabinet Components. See Reconciliation for additional details.
(2) Reflects the loss of revenue associated with eliminated products of $14.5 million and $67.9 million for the three-months and twelve-months ended October 31, 2017, respectively.
(3) Reflects a gain of $1.0 million, and a loss $10.7 million in revenue associated with foreign currency impacts for the three-months and twelve-months ended October 31, 2017, respectively.
(4) Reflects the loss of revenue associated with eliminated products of $2.0 million and $10.3 million for the three-months and twelve-months ended October 31, 2017, respectively.


Source:Quanex Building Products Corporation