About American Woodmark

American Woodmark Corporation manufactures and distributes kitchen, bath, and home organization products for the remodeling and new home construction markets. The company’s products are sold on a national basis directly to home centers and builders and through a network of independent dealers and distributors. Products The company offers a wide variety of products that fall into product lines, including kitchen cabinetry, bath cabinetry, office cabinetry, home organization and hardware. The company’s cabinetry products are available in a variety of designs, finishes and finish colors and door styles. The company offers products in the following categories: made-to-order and stock. Made-to-order products typically utilize higher grade materials with more options as compared to stock and are all special ordered and shipped directly to the home from the factory. The company’s home organization products are exclusively stock products. The company’s kitchen cabinetry and bath cabinetry are offered across all product categories (made-to-order and stock). The company’s stock products represent cash and carry products and are sold through home centers, while its made-to-order products are sold through home centers, builders, and independent dealers and distributors. Market The company’s products are sold on a national basis across the United States to the remodeling and new home construction markets. The company services these markets through three primary channels: home centers, builders, and independent dealers and distributors. The company distributes its products to each market channel directly from its assembly plants and through a third party logistics network. Customers The company serves three main categories of customers: home center customers, builders, and independent dealers and distributors. Home Center Customers: Contractors, builders, remodelers, and do-it-yourself homeowners use the company’s products primarily for repair and remodel (R&R) projects. Products for R&R projects are predominately purchased through home centers, such as Home Depot and Lowe's. During the fiscal year ended April 30, 2023 (fiscal 2023), Home Depot and Lowe's combined accounted for approximately 43.2% of net sales of the company. Builders: The builder business represents a large portion of the company’s overall revenue and has historically been a strategic component of its go-to-market strategy. The company serves 19 of the top 20 U.S. builders with a high degree of geographic concentration around major metro areas where single family starts are most robust. The company also serves multi-family builders, primarily in the Southwest Region of the U.S. The company’s various service center locations are close to these builders and enable it to deliver exceptional service to its builder partners. During fiscal 2023, builders accounted for approximately 42.9% of net sales of the company. Independent Dealers & Distributors: In 2010, the company expanded its business into the dealer channel with the launch of the Waypoint Living Spaces brand. The company sell this brand to over 1,500 regional and local dealers across the country. The dealer channel of the market is the largest by volume, characterized by a high degree of entrepreneurship and one that rewards suppliers that deliver great service. Within its distributor channel the company also sells its Timberlake brand through a network of regional distributors who are focused on selling a complete variety of building materials to small and midsized builders and contractors within their local markets. During fiscal 2023, independent dealers and distributors accounted for approximately 13.9% of net sales of the company. Manufacturing, Distribution and Service The company manufactures its products across 17 facilities located in Maryland, Indiana, West Virginia, Georgia, Arizona, Kentucky, Virginia, California, Texas, North Carolina, and Tijuana, Mexico. The company is building a new manufacturing facility in Monterrey, Mexico that will increase its stock kitchen and bath capacity for east coast markets. This facility is expected to open in the third quarter of fiscal 2024. The geographic distribution of the company’s facilities throughout the United States, together with its third party logistics network for the American Woodmark business and beneficial freight arrangements with home centers, enable it to provide a ‘short supply chain’ to its U.S. customers. The company distributes its products through one stand-alone distribution center, distribution centers located in some of the company’s manufacturing facilities, and other third party locations to maximize efficiency. The company provides complete turnkey installation services to its direct builder customers via its network of eight primary service centers that are strategically located throughout the United States in Virginia, Texas, North Carolina, Georgia, Florida, Arizona and California. Strategy Due to the market presence, store network and customer reach of these large home centers, the company’s strategy has been to develop long-term strategic relationships with both Home Depot and Lowe's to distribute its products. Seasonality The company’s business has been subject to seasonal influences, with higher sales typically realized in its first and fourth fiscal quarters (year ended April 2023). General economic forces and changes in its customer mix have reduced seasonal fluctuations in revenue over the past few years and this trend is expected to continue. History American Woodmark Corporation was founded in 1951. The company was incorporated in 1980.