EX-99.1 2 exh_991.htm PRESS RELEASE EdgarFiling

EXHIBIT 99.1

Quanex Building Products Announces Third Quarter 2024 Results and Updates Full Year 2024 Guidance

Results Consistent with Expectations
Transformative Tyman Acquisition Closed August 1, 2024
Acquisition Integration Underway

HOUSTON, Sept. 05, 2024 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation (NYSE:NX) (“Quanex” or the “Company”) today announced its results for the three months ended July 31, 2024.

The Company reported the following selected financial results:

   Three Months Ended July 31, Nine Months Ended July 31,
($ in millions, except per share data)  2024 2023 2024 2023
Net Sales  $280.3 $299.6 $785.7 $835.1
Gross Margin  $70.9 $78.6 $188.6 $197.5
Gross Margin %  25.3% 26.2% 24.0% 23.7%
Net Income  $25.4 $31.7 $47.0 $55.1
Diluted EPS  $0.77 $0.96 $1.42 $1.67
          
Adjusted Net Income  $24.2 $31.9 $51.8 $59.7
Adjusted Diluted EPS  $0.73 $0.97 $1.56 $1.81
Adjusted EBITDA  $42.0 $48.5 $101.3 $108.8
Adjusted EBITDA Margin %  15.0% 16.2% 12.9% 13.0%
          
Cash Provided by Operating Activities  $46.4 $64.1 $83.3 $102.6
Free Cash Flow  $40.1 $56.7 $59.9 $80.1

(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, Chairman, President and Chief Executive Officer, stated, “Overall, the results we reported for the third quarter of 2024 were consistent with our expectations. Consistent with the seasonality of our business, volumes increased across all operating segments in the third quarter of this year when compared to the second quarter. However, when compared to the prior year, demand remained soft, but we believe the building products industry will benefit from pent up demand once interest rates start to trend lower and consumer confidence is restored. All things considered, profitability for the quarter was as expected, but due to the decrease in volumes, coupled with lower operating leverage, margins declined year-over-year. Our continued focus on cash flow and managing working capital enabled us to generate approximately $40 million in free cash flow during the quarter.

“Looking ahead, work on integrating the recently acquired Tyman business and creating something new and special within the building products industry is in progress. Our internal Integration Management Office team is executing on the plan to capture the targeted synergies. In addition, we are working to structure the organization in a manner that will enable us to capitalize on existing commercial opportunities and tap into new innovative solutions. We are excited about creating additional value for our shareholders by realizing the anticipated synergies related to this acquisition and building a stronger, more profitable company over time.”

Third Quarter 2024 Results Summary

Quanex reported net sales of $280.3 million during the three months ended July 31, 2024, which represents a decrease of 6.4% compared to $299.6 million for the same period of 2023. The decrease was mostly attributable to softer market demand across all operating segments. Quanex reported a 3.9% decrease in net sales for the third quarter in its North American Fenestration segment primarily due to lower volume. In its North American Cabinet Components segment, the Company reported a decline of 7.1% in net sales for the third quarter largely because of lower volume. Excluding foreign exchange impact, Quanex realized a decrease in net sales of 10.8% for the third quarter in its European Fenestration segment mainly due to lower volume and pricing pressure. (See Sales Analysis table for additional information)

The decrease in adjusted earnings for the three months ended July 31, 2024 was largely attributable to decreased operating leverage as a result of lower volumes related to softer market demand combined with higher material costs in the Company’s North American Fenestration and North American Cabinet Components segments.

Balance Sheet Update

As of July 31, 2024, prior to the Tyman closing, Quanex had total debt of $55.0 million (primarily finance leases) and the Company was Net Debt free. As of July 31, 2024, the Company’s LTM Net Income was $74.4 million and LTM Adjusted EBITDA was $152.1 million. (See Non-GAAP Terminology Definitions and Disclaimers section, Net Debt Reconciliation table and Last Twelve Months Adjusted EBITDA Reconciliation table for additional information)

Recent Events

As previously disclosed on August 1, 2024, Quanex announced it had closed on its acquisition of Tyman, creating a comprehensive solutions provider in the building products industry. The transaction creates a larger, more diversified supplier of components to OEMs; strengthens brand leadership by adding Tyman’s highly recognizable brands with wide customer bases; and enhances the combined company’s financial profile with the goal of accelerating growth and increasing profitability through greater scale and stronger cash flow. The Company intends to complete approximately 50% of the integration within the first 12 months and expects the acquisition to be accretive to earnings within the first full year after closing.

Outlook

Mr. Wilson commented, “Since we closed on the Tyman acquisition at the beginning of our fourth fiscal quarter, prior guidance for 2024 is no longer valid. While we still feel comfortable with the prior guidance for the legacy Quanex business, we are simply layering in the contribution from the Tyman business for the fourth quarter, which includes the impact related to performing full physical inventory counts at every legacy Tyman location prior to the end of our fiscal year. On a consolidated basis, we now estimate net sales of $1.275 billion to $1.285 billion, which should result in $171 million to $176 million of Adjusted EBITDA* in fiscal 2024.”

*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 also scheduled a conference call for Friday, September 6, 2024 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/BI899b4025b8dc44e086b54362366d6727

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, building access 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), Adjusted EBITDA and LTM 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) on the economy and the demand for Quanex’s products, timing estimates or any other expectations related to the Acquisition, 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, 2023, 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.

 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
 
  Three Months Ended July 31, Nine Months Ended July 31,
   2024   2023   2024   2023 
         
Net sales $280,345  $299,640  $785,701  $835,091 
Cost of sales  209,441   221,065   597,127   637,586 
Selling, general and administrative  36,509   30,516   103,579   94,631 
Depreciation and amortization  10,953   10,596   32,999   31,672 
Operating income  23,442   37,463   51,996   71,202 
Interest expense  (878)  (2,068)  (2,896)  (6,571)
Other, net  9,474   402   10,520   591 
Income before income taxes  32,038   35,797   59,620   65,222 
Income tax expense  (6,688)  (4,099)  (12,644)  (10,103)
Net income $25,350  $31,698  $46,976  $55,119 
         
Earnings per common share, basic $0.77  $0.97  $1.43  $1.68 
Earnings per common share, diluted $0.77  $0.96  $1.42  $1.67 
         
Weighted average common shares outstanding:       
Basic  32,876   32,716   32,857   32,841 
Diluted  33,106   32,919   33,087   33,031 
         
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, 2024 October 31, 2023
ASSETS    
Current assets:    
Cash and cash equivalents $93,966  $58,474 
Accounts receivable, net  87,554   97,311 
Inventories  99,127   97,959 
Income taxes receivable  1,447   8,298 
Prepaid and other current assets  19,305   11,558 
Total current assets  301,399   273,600 
Property, plant and equipment, net  251,890   250,664 
Operating lease right-of-use assets  63,642   46,620 
Goodwill  186,195   182,956 
Intangible assets, net  66,606   74,115 
Other assets  2,718   3,188 
Total assets $872,450  $831,143 
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities:    
Accounts payable $63,948  $74,371 
Accrued liabilities  54,796   50,319 
Income taxes payable  -   384 
Current maturities of long-term debt  2,690   2,365 
Current operating lease liabilities  6,435   7,224 
Total current liabilities  127,869   134,663 
Long-term debt  51,406   66,435 
Noncurrent operating lease liabilities  59,099   40,361 
Deferred income taxes  27,438   29,133 
Other liabilities  12,502   14,997 
Total liabilities  278,314   285,589 
Stockholders’ equity:    
Common stock  371   372 
Additional paid-in-capital  250,297   251,576 
Retained earnings  448,351   409,318 
Accumulated other comprehensive loss  (30,131)  (38,141)
Treasury stock at cost  (74,752)  (77,571)
Total stockholders’ equity  594,136   545,554 
Total liabilities and stockholders' equity $872,450  $831,143 
     


QUANEX BUILDING PRODUCTS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(In thousands)
(Unaudited)
 
 Nine Months Ended July 31,
  2024   2023 
Operating activities:   
Net income$46,976  $55,119 
Adjustments to reconcile net income to cash provided by operating activities:   
Depreciation and amortization 32,999   31,672 
Stock-based compensation 2,159   1,828 
Deferred income tax (2,321)  177 
Gain on deal contingent foreign exchange forward currency contract (9,200)  - 
Other, net 886   2,423 
Changes in assets and liabilities:   
Decrease in accounts receivable 11,114   9,918 
(Increase) decrease in inventory (183)  23,864 
Decrease (increase) in other current assets 1,646   (439)
Decrease in accounts payable (9,634)  (15,471)
Increase (decrease) in accrued liabilities 948   (5,152)
Decrease (increase) in income taxes receivable 6,659   (3,534)
Increase in deferred pension benefits -   22 
Increase in other long-term liabilities 707   609 
Other, net 577   1,523 
Cash provided by operating activities 83,333   102,559 
Investing activities:   
Business acquisition -   (91,302)
Capital expenditures (23,435)  (22,450)
Proceeds from disposition of capital assets 115   183 
Cash used for investing activities (23,320)  (113,569)
Financing activities:   
Borrowings under credit facilities -   102,000 
Repayments of credit facility borrowings (15,000)  (60,000)
Repayments of other long-term debt (1,893)  (1,954)
Common stock dividends paid (7,943)  (7,952)
Issuance of common stock 573   753 
Payroll tax paid to settle shares forfeited upon vesting of stock (1,193)  (567)
Purchase of treasury stock -   (5,593)
Cash (used for) provided by financing activities (25,456)  26,687 
Effect of exchange rate changes on cash and cash equivalents 935   2,482 
Increase in cash and cash equivalents 35,492   18,159 
Cash and cash equivalents at beginning of period 58,474   55,093 
Cash and cash equivalents at end of period$93,966  $73,252 
    


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 July 31, Nine Months Ended July 31,
    2024   2023   2024   2023 
Cash provided by operating activities  $46,388  $64,099  $83,333  $102,559 
Capital expenditures   (6,252)  (7,376)  (23,435)  (22,450)
Free Cash Flow  $40,136  $56,723  $59,898  $80,109 
          
          
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,  
    2024   2023     
Revolving credit facility  $0  $55,000     
Finance lease obligations (1)   55,007   55,792     
Total debt (2)   55,007   110,792     
Less: Cash and cash equivalents   93,966   73,252     
Net Debt   ($38,959) $37,540     
          
(1) Includes $50.7 million and $52.9 million in real estate lease liabilities considered finance leases under U.S. GAAP as of July 31, 2024 and July 31, 2023, 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 July 31, 2024 Three Months Ended April 30, 2024 Three Months Ended January 31, 2024 Three Months Ended October 31, 2023 Total
  
Reconciliation
 Reconciliation Reconciliation Reconciliation Reconciliation
Net income as reported $25,350  $15,377  $6,249  $27,382  $74,358 
Income tax expense  6,688   4,314   1,642   4,442   17,086 
Other, net  (9,474)  (4)  (1,042)  6,110   (4,410)
Interest expense  878   950   1,068   1,565   4,461 
Depreciation and amortization  10,953   10,894   11,152   11,194   44,193 
EBITDA  34,395   31,531   19,069   50,693   135,688 
Cost of sales (1),(2)  1,507   631   -   (35)  2,103 
Selling, general and administrative (1),(2),(3)  6,133   7,862   205   109   14,309 
Adjusted EBITDA $42,035  $40,024  $19,274  $50,767  $152,100 
           
(1) Expense related to plant closure.
(2) Loss on damage to manufacturing facilities caused by weather.
(3) 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
July 31, 2024
 Three Months Ended
July 31, 2023
 Nine Months Ended
July 31, 2024
 Nine Months Ended
July 31, 2023
 
  Net Income Diluted EPS Net Income Diluted EPS Net Income Diluted EPS Net Income Diluted EPS 
Net income as reported $25,350  $0.77  $31,698  $0.96  $46,976  $1.42  $55,119  $1.67  
Net income reconciling items from below  (1,199) $(0.04)  201  $0.01   4,775  $0.14   4,550  $0.14  
Adjusted net income and adjusted EPS $24,151  $0.73  $31,899  $0.97  $51,751  $1.56  $59,669  $1.81  

Reconciliation of Adjusted EBITDA
                 
 Three Months Ended
July 31, 2024
 Three Months Ended
July 31, 2023
 Nine Months Ended
July 31, 2024
 Nine Months Ended
July 31, 2023
 
  Reconciliation   Reconciliation   Reconciliation   Reconciliation   
Net income as reported $25,350    $31,698    $46,976    $55,119    
Income tax expense  6,688     4,099     12,644     10,103    
Other, net  (9,474)    (402)    (10,520)    (591)   
Interest expense  878     2,068     2,896     6,571    
Depreciation and amortization  10,953     10,596     32,999     31,672    
EBITDA  34,395     48,059     84,995     102,874    
EBITDA reconciling items from below  7,640     395     16,338     5,954    
Adjusted EBITDA $42,035    $48,454    $101,333    $108,828    
                  
Reconciling Items Three Months Ended
July 31, 2024
 Three Months Ended
July 31, 2023
 Nine Months Ended
July 31, 2024
 Nine Months Ended
July 31, 2023
 
  Income Statement Reconciling Items Income Statement Reconciling Items Income Statement Reconciling Items Income Statement Reconciling Items 
Net sales $280,345  $-  $299,640  $-  $785,701  $-  $835,091  $-  
Cost of sales  209,441   (1,507)(1) 221,065   -   597,127   (2,138)(1) 637,586   (48)(2)
Selling, general and administrative  36,509   (6,133)(1),(3) 30,516   (395)(3) 103,579   (14,200)(1),(3) 94,631   (5,906)(2),(3)
EBITDA  34,395   7,640   48,059   395   84,995   16,338   102,874   5,954  
Depreciation and amortization  10,953   -   10,596   -   32,999   -   31,672   -  
Operating income  23,442   7,640   37,463   395   51,996   16,338   71,202   5,954  
Interest expense  (878)  -   (2,068)  -   (2,896)  -   (6,571)  -  
Other, net  9,474   (9,162)(4) 402   (126)(4) 10,520   (10,009)(4) 591   (36)(4)
Income before income taxes  32,038   (1,522)  35,797   269   59,620   6,329   65,222   5,918  
Income tax expense  (6,688)  323 (5) (4,099)  (68)(5) (12,644)  (1,554)(5) (10,103)  (1,368)(4)
Net income $25,350  $(1,199) $31,698  $201  $46,976  $4,775  $55,119  $4,550  
                  
Diluted earnings per share $0.77    $0.96    $1.42    $1.67    
                  
(1) Expense related to plant closure. 
(2) Loss on damage to manufacturing facilities caused by weather. 
(3) Transaction and advisory fees. 
(4) Pension settlement (refund) expense, gain on foreign exchange forward currency contract and foreign currency transaction losses (gains). 
(5)Tax impact of net income reconciling items. 
                  


QUANEX BUILDING PRODUCTS CORPORATION
SELECTED SEGMENT DATA
(In thousands)
(Unaudited)
 
This table provides gross margin, 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 Fenestration EU Fenestration NA Cabinet Components Unallocated Corp & Other Total
Three months ended July 31, 2024          
Net sales $170,258  $59,617  $51,448  $(978) $280,345 
Cost of sales  130,301   36,930   42,911   (701)  209,441 
Gross Margin  39,957   22,687   8,537   (277)  70,904 
Gross Margin %  23.5%  38.1%  16.6%    25.3%
Selling, general and administrative (1)  16,918   7,390   5,162   7,039   36,509 
Depreciation and amortization  5,194   2,609   3,093   57   10,953 
Operating income (loss)  17,845   12,688   282   (7,373)  23,442 
Depreciation and amortization  5,194   2,609   3,093   57   10,953 
EBITDA  23,039   15,297   3,375   (7,316)  34,395 
Expense related to plant closure (Cost of sales)  1,507   -   -   -   1,507 
Expense related to plant closure (SG&A)  125   -   -   -   125 
Transaction and advisory fees  -   -   -   6,008   6,008 
Adjusted EBITDA $24,671  $15,297  $3,375  $(1,308) $42,035 
Adjusted EBITDA Margin %  14.5%  25.7%  6.6%    15.0%
           
Three months ended July 31, 2023          
Net sales $177,081  $67,889  $55,385  $(715) $299,640 
Cost of sales  135,126   41,266   44,935   (262)  221,065 
Gross Margin  41,955   26,623   10,450   (453)  78,575 
Gross Margin %  23.7%  39.2%  18.9%    26.2%
Selling, general and administrative (1)  14,254   8,039   5,095   3,128   30,516 
Depreciation and amortization  5,033   2,434   3,084   45   10,596 
Operating income  22,668   16,150   2,271   (3,626)  37,463 
Depreciation and amortization  5,033   2,434   3,084   45   10,596 
EBITDA  27,701   18,584   5,355   (3,581)  48,059 
Transaction and advisory fees  -   -   -   395   395 
Adjusted EBITDA $27,701  $18,584  $5,355  $(3,186) $48,454 
Adjusted EBITDA Margin %  15.6%  27.4%  9.7%    16.2%
           
Nine months ended July 31, 2024          
Net sales $478,027  $165,637  $145,663  $(3,626) $785,701 
Cost of sales  370,930   104,327   124,278   (2,408)  597,127 
Gross Margin  107,097   61,310   21,385   (1,218)  188,574 
Gross Margin %  22.4%  37.0%  14.7%    24.0%
Selling, general and administrative (1)  46,558   23,008   15,354   18,659   103,579 
Depreciation and amortization  15,887   7,705   9,240   167   32,999 
Operating income (loss)  44,652   30,597   (3,209)  (20,044)  51,996 
Depreciation and amortization  15,887   7,705   9,240   167   32,999 
EBITDA  60,539   38,302   6,031   (19,877)  84,995 
Expense related to plant closure (Cost of sales)  2,138   -   -   -   2,138 
Expense related to plant closure (SG&A)  1,103   -   -   -   1,103 
Transaction and advisory fees  -   -   -   13,097   13,097 
Adjusted EBITDA $63,780  $38,302  $6,031  $(6,780) $101,333 
Adjusted EBITDA Margin %  13.3%  23.1%  4.1%    12.9%
           
Nine months ended July 31, 2023          
Net sales $487,036  $186,604  $163,577  $(2,126) $835,091 
Cost of sales  382,315   119,421   136,722   (872)  637,586 
Gross Margin  104,721   67,183   26,855   (1,254)  197,505 
Gross Margin %  21.5%  36.0%  16.4%    23.7%
Selling, general and administrative (1)  41,707   23,996   15,939   12,989   94,631 
Depreciation and amortization  15,328   7,135   8,988   221   31,672 
Operating income (loss)  47,686   36,052   1,928   (14,464)  71,202 
Depreciation and amortization  15,328   7,135   8,988   221   31,672 
EBITDA  63,014   43,187   10,916   (14,243)  102,874 
Loss on damage to manufacturing facilities (Cost of sales)  35   -   13   -   48 
Loss on damage to manufacturing facilities (SG&A)  -   -   200   -   200 
Transaction and advisory fees  -   -   -   5,706   5,706 
Adjusted EBITDA $63,049  $43,187  $11,129  $(8,537) $108,828 
Adjusted EBITDA Margin %  12.9%  23.1%  6.8%    13.0%
           
(1) Includes stock-based compensation expense for the three and nine months ended July 31, 2024 of $1.3 million and $2.5 million, respectively, and $5.3 million and $7.6 million for the comparable prior year periods.
           


QUANEX BUILDING PRODUCTS CORPORATION
SALES ANALYSIS
(In thousands)
(Unaudited)
 
  Three Months Ended July 31, Nine Months Ended July 31,
   2024   2023   2024   2023 
         
NA Fenestration:       
 United States - fenestration$131,394  $138,090  $362,674  $379,613 
 International - fenestration 6,950   8,542   20,559   22,019 
 United States - non-fenestration 27,873   26,423   81,196   73,823 
 International - non-fenestration 4,041   4,026   13,598   11,581 
  $170,258  $177,081  $478,027  $487,036 
EU Fenestration: (1)       
 International - fenestration$50,551  $51,752  $139,270  $142,009 
 International - non-fenestration 9,066   16,137   26,367   44,595 
  $59,617  $67,889  $165,637  $186,604 
NA Cabinet Components:       
 United States - fenestration$3,791  $4,486  $11,203  $12,613 
 United States - non-fenestration 47,287   50,199   133,456   148,774 
 International - non-fenestration 370   700   1,004   2,190 
  $51,448  $55,385  $145,663  $163,577 
Unallocated Corporate & Other:       
 Eliminations$(978) $(715) $(3,626) $(2,126)
  $(978) $(715) $(3,626) $(2,126)
         
Net Sales$280,345  $299,640  $785,701  $835,091 
         
(1) Reflects a decrease of $0.9 million and an increase $0.7 million in revenue associated with foreign currency exchange rate impacts for the three and nine months ended July 31, 2024, respectively.