Significant Margin Expansion in EU & NA Fenestration Segments
Above Market Growth Continues in EU & NA Fenestration Segments
Repaid $32.5 Million of Bank Debt

HOUSTON, Sept. 05, 2019 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation (NYSE:NX) (“Quanex” or the “Company”) today announced its results for the three months ended July 31, 2019.

Bill Griffiths, Chairman, President and Chief Executive Officer, commented, “We continue to benefit from the successful implementation of pricing initiatives and we are performing well operationally, both of which contributed to margin expansion of approximately 100 basis points on a consolidated basis during the quarter.  More specifically, margins expanded by approximately 180 basis points in our European and North American Fenestration segments.  Revenue was impacted by lower-than-expected volumes, primarily in our North American Cabinet Components segment, coupled with inclement weather in the U.S.  Despite softer-than-expected volumes, we benefitted from better pricing year-over-year and our European Fenestration segment realized above market sales growth of 9.3%, excluding foreign exchange impact, and sales in our North American Fenestration segment grew at 2.2% during the quarter, which compares favorably to Ducker’s latest window shipment estimate of negative 2.3% growth for the three months ended June 30, 2019.  Solid free cash flow generation during the third quarter allowed us to pay down $32.5 million in bank debt and buyback approximately $1.6 million in stock.”    

Third Quarter 2019 Results Summary  

The Company reported the following selected financial results:

  Three Months Ended July 31,
  2019 2018
Net Sales $238.5 $239.8
Net Income $11.8 $10.8
Diluted EPS $0.36 $0.31
     
Adjusted Net Income $13.7 $11.6
Adjusted Diluted EPS $0.41 $0.33
Adjusted EBITDA $32.8 $30.5
     
Cash provided by operating activities $29.9 $26.8
Free Cash Flow $25.9 $21.0

(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)

The decrease in net sales during the third quarter of 2019 was primarily attributable to a weaker demand environment, mainly in the North American Cabinet Components segment, and inclement weather in the U.S.  However, the European and North American Fenestration segments continued to generate net sales growth above that of their respective markets, largely due to price increases related to raw material inflation recovery. (See Sales Analysis table for additional information)

The increase in earnings was mostly driven by the successful implementation of pricing initiatives combined with operational efficiency gains. 

As of July 31, 2019, Quanex’s leverage ratio of Net Debt to LTM Adjusted EBITDA decreased to 2.0x.  Quanex continues to expect to end fiscal 2019 with a leverage ratio between 1.5x and 2.0x.  (See Non-GAAP Terminology Definitions and Disclaimers section for additional information)

Share Repurchases

The Company’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.  During the three months ended July 31, 2019, Quanex repurchased 93,352 shares of common stock for approximately $1.6 million at an average price of $17.50 per share.  As of July 31, 2019, approximately $21.6 million remained under the existing share repurchase authorization.  

Outlook

Bill Griffiths, Chairman, President and Chief Executive Officer, stated, “Looking ahead, we expect a strong finish to our fiscal year from a cash flow and earnings perspective, but consolidated revenue is trending below prior expectations.  As such, we now expect consolidated net sales for the full year 2019 to be flat year-over-year.  We continue to convert well and are maintaining the midpoint of our original Adjusted EBITDA* guidance, but are revising the guidance to a more narrow range of $100 million to $105 million.  We intend to stay focused on deleveraging the balance sheet for the remainder of the year while opportunistically repurchasing stock.  In the future, we will be comfortable with a Leverage Ratio of around 1.5x, at which time we will evaluate all options with respect to our capital allocation priorities in an effort to enhance shareholder value.” 

*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.

Recent Events

The Company’s Board of Directors declared a quarterly cash dividend of $0.08 per share on Quanex’s common stock, payable September 30, 2019, to shareholders of record on September 16, 2019.

Conference Call and Webcast Information

The Company has scheduled a conference call for Friday, September 6, 2019, 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 6297156, 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 20, 2019.  To access the replay dial (855) 859-2056 for domestic callers and (404) 537-3406 for international callers, in both cases referencing conference passcode 6297156. 

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, certain severance charges, gain/loss on the sale of 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 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.  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.  The Company is not able to provide reconciliations of forward-looking Adjusted EBITDA to GAAP financial measures because certain items required for such reconciliations are outside of Quanex’s control and/or cannot be reasonably predicted, such as the provision for income taxes.  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 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 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, 2018, 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 (LOSS) INCOME
(In thousands, except per share data)
(Unaudited)
         
  Three Months Ended July 31, Nine Months Ended July 31,
   2019  2018 (1)  2019  2018 (1)
                 
Net sales $238,461  $239,821  $653,472  $645,699 
Cost of sales  181,357   185,811   511,292   509,357 
Selling, general and administrative  25,718   24,246   77,466   72,217 
Restructuring charges  94   243   281   851 
Depreciation and amortization  12,182   12,691   37,158   39,274 
Asset impairment charges  -   -   29,978   - 
Operating income (loss)  19,110   16,830   (2,703)  24,000 
Interest expense  (2,570)  (2,641)  (7,614)  (7,584)
Other, net  259   195   461   884 
Income (loss) before income taxes  16,799   14,384   (9,856)  17,300 
Income tax (expense) benefit  (4,958)  (3,631)  (5,926)  2,536 
Net income (loss) $11,841  $10,753  $(15,782) $19,836 
                 
Income (loss) per common share, basic $0.36  $0.31  $(0.48) $0.57 
Income (loss) per common share, diluted $0.36  $0.31  $(0.48) $0.56 
                 
Weighted average common shares outstanding:                
Basic  32,899   34,840   32,984   34,766 
Diluted  33,162   35,120   32,984   35,125 
                 
Cash dividends per share $0.08  $0.04  $0.24  $0.12 
                 
(1) Updated to reflect adoption of ASU 2017-07.                
                 

 

QUANEX BUILDING PRODUCTS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
     
  July 31, 2019 October 31, 2018 (1)
ASSETS        
Current assets:        
Cash and cash equivalents $10,651  $29,003 
Accounts receivable, net  82,302   84,014 
Inventories, net  84,762   70,730 
Prepaid and other current assets  8,270   7,296 
Total current assets  185,985   191,043 
Property, plant and equipment, net  190,447   201,370 
Goodwill  186,829   219,627 
Intangible assets, net  108,620   121,919 
Other assets  8,183   9,255 
Total assets $680,064  $743,214 
         
LIABILITIES AND STOCKHOLDERS' EQUITY        
Current liabilities:        
Accounts payable $52,602  $52,389 
Accrued liabilities  30,056   45,968 
Income taxes payable  3,101   2,780 
Current maturities of long-term debt  871   1,224 
Total current liabilities  86,630   102,361 
Long-term debt  191,109   209,332 
Deferred pension and postretirement benefits  6,580   4,218 
Deferred income taxes  19,051   17,510 
Other liabilities  15,344   14,571 
Total liabilities  318,714   347,992 
Stockholders’ equity:        
Common stock  374   374 
Additional paid-in-capital  254,053   254,678 
Retained earnings  219,340   243,904 
Accumulated other comprehensive loss  (38,274)  (30,705)
Treasury stock at cost  (74,143)  (73,029)
Total stockholders’ equity  361,350   395,222 
Total liabilities and stockholders' equity $680,064  $743,214 
         
(1) Updated to reflect accounting change to FIFO cost method.  
   

 

QUANEX BUILDING PRODUCTS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(In thousands)
(Unaudited)
  
 Nine Months Ended July 31,
  2019   2018 
Operating activities:       
Net (loss) income$(15,782) $19,836 
Adjustments to reconcile net (loss) income to cash provided by operating activities:       
Depreciation and amortization 37,158   39,274 
Stock-based compensation 1,424   1,002 
Deferred income tax 1,930   (5,788)
Asset impairment charges 29,978   - 
Other, net 1,724   404 
Changes in assets and liabilities:       
Decrease (increase) in accounts receivable 323   (1,247)
(Increase) decrease in inventory (14,747)  310 
Increase in other current assets (1,022)  (1,242)
Increase in accounts payable 1,562   1,161 
Decrease in accrued liabilities (15,366)  (7,565)
Increase in income taxes payable 396   231 
Increase in deferred pension and postretirement benefits 2,351   2,179 
(Decrease) increase in other long-term liabilities (143)  210 
Other, net 250   (312)
Cash provided by operating activities 30,036   48,453 
Investing activities:       
Capital expenditures (16,984)  (21,098)
Proceeds from disposition of capital assets 315   260 
Cash used for investing activities (16,669)  (20,838)
Financing activities:       
Borrowings under credit facilities 66,500   33,500 
Repayments of credit facility borrowings (84,000)  (62,750)
Repayments of other long-term debt (1,102)  (1,394)
Common stock dividends paid (7,990)  (4,202)
Issuance of common stock 2,710   3,767 
Payroll tax paid to settle shares forfeited upon vesting of stock (330)  (960)
Purchase of treasury stock (6,336)  - 
Cash used for financing activities (30,548)  (32,039)
Effect of exchange rate changes on cash and cash equivalents (1,171)  (631)
Decrease in cash and cash equivalents (18,352)  (5,055)
Cash and cash equivalents at beginning of period 29,003   17,455 
Cash and cash equivalents at end of period$10,651  $12,400 
        

 

QUANEX BUILDING PRODUCTS CORPORATION
Free Cash Flow 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,
   2019   2018   2019   2018 
Cash provided by operating activities $29,893  $26,838  $30,036  $48,453 
Capital expenditures  (3,962)  (5,885)  (16,984)  (21,098)
Free Cash Flow $25,931  $20,953  $13,052  $27,355 

 

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, 2019  July 31, 2018  July 31, 2019  July 31, 2018 
  Net
Income
 Diluted
EPS
  Net
Income
 Diluted
EPS
  Net
Income
 Diluted
EPS
  Net
Income
 Diluted
EPS
 
Net income (loss) as reported $11,841  $0.36   $10,753  $0.31   $(15,782) $(0.48)  $19,836  $0.56  
Reconciling items from below  1,809   0.05    828   0.02    33,595   1.02    (4,727)  (0.13) 
Adjusted net income and adjusted EPS $13,650  $0.41   $11,581  $0.33   $17,813  $0.54   $15,109  $0.43  
                     
Reconciliation of Adjusted EBITDA Three Months Ended
July 31, 2019
  Three Months Ended
July 31, 2018
  Nine Months Ended
July 31, 2019
  Nine Months Ended
July 31, 2018
 
  Reconciliation    Reconciliation    Reconciliation    Reconciliation   
Net income (loss) as reported $11,841     $10,753     $(15,782)    $19,836    
Income tax expense (benefit)  4,958      3,631      5,926      (2,536)   
Other, net  (259)     (195)     (461)     (884)   
Interest expense  2,570      2,641      7,614      7,584    
Depreciation and amortization  12,182      12,691      37,158      39,274    
EBITDA  31,292      29,521      34,455      63,274    
Reconciling items from below  1,495      1,027      33,777      1,649    
Adjusted EBITDA $32,787     $30,548     $68,232     $64,923    
                     
Reconciling Items Three Months Ended
July 31, 2019
  Three Months Ended
July 31, 2018
  Nine Months Ended
July 31, 2019
  Nine Months Ended
July 31, 2018
 
  Income
Statement
 Reconciling
Items
  Income
Statement
 Reconciling
Items
  Income
Statement
 Reconciling
Items
  Income
Statement
 Reconciling
Items
 
Net sales $238,461  $-   $239,821  $-   $653,472  $-   $645,699  $-  
Cost of sales  181,357   -    185,811   -    511,292   -    509,357   -  
Selling, general and administrative  25,718   (1,401) (1)  24,246   (784) (1)  77,466   (3,518) (1)  72,217   (798) (1)
Restructuring charges  94   (94) (2)  243   (243) (2)  281   (281) (2)  851   (851) (2)
Asset impairment charges  -   -    -   -    29,978   (29,978) (3)  -   -  
EBITDA  31,292   1,495    29,521   1,027    34,455   33,777    63,274   1,649  
Depreciation and amortization  12,182   -    12,691   -    37,158   -    39,274   (852) (4)
Operating income (loss)  19,110   1,495    16,830   1,027    (2,703)  33,777    24,000   2,501  
Interest expense  (2,570)  -    (2,641)  -    (7,614)  -    (7,584)  -  
Other, net  259   (112) (5)  195   79  (5)  461   (67) (5)  884   (88) (5)
Income (loss) before income taxes  16,799   1,383    14,384   1,106    (9,856)  33,710    17,300   2,413  
Income tax (expense) benefit  (4,958)  426  (6)  (3,631)  (278) (6)  (5,926)  (115) (6)  2,536   (7,140) (6 
Net income (loss) $11,841  $1,809   $10,753  $828   $(15,782) $33,595   $19,836  $(4,727) 
                     
Diluted (loss) earnings per share $0.36     $0.31     $(0.48)    $0.56    
                     
(1) Transaction and advisory fees, $1.2 million of executive severance charges in the three and nine months ended July 31, 2019, and in the nine months ended July 31, 2019, $1.2 million of severance related to a reorganization.
(2) Restructuring charges relate to the closure of several manufacturing plant facilities.
(3) Asset impairment charges relate to a goodwill impairment in the North American Cabinet Components segment.
(4) Accelerated depreciation for plant re-layout in the North American Cabinet Components segment.
(5) Foreign currency transaction (gains) losses.
(6) Impact on a with and without basis.  Three and nine months ended July 31, 2019 include $0.8 million and $0.6 million of tax expense adjustment, respectively, and nine months ended July 31, 2018 includes $6.5 million of tax benefit adjustment related to the Tax Cuts and Jobs Act.
 

 

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 Fenestration (1) EU Fenestration (1) NA Cabinet Components Unallocated
Corp & Other
 Total
Three months ended July 31, 2019          
Net sales $136,259  $44,326  $58,689  $(813) $238,461 
Cost of sales  101,693   30,708   49,389   (433)  181,357 
Selling, general and administrative  11,950   6,038   4,484   3,246   25,718 
Restructuring charges  94   -   -   -   94 
Depreciation and amortization  6,578   2,213   3,258   133   12,182 
Operating income (loss)  15,944   5,367   1,558   (3,759)  19,110 
Depreciation and amortization  6,578   2,213   3,258   133   12,182 
EBITDA  22,522   7,580   4,816   (3,626)  31,292 
Transaction and advisory fees  -   -   -   250   250 
Severance charges  -   -   -   1,151   1,151 
Restructuring charges  94   -   -   -   94 
Adjusted EBITDA $22,616  $7,580  $4,816  $(2,225) $32,787 
Adjusted EBITDA Margin %  16.6%  17.1%  8.2%    13.7%
           
Three months ended July 31, 2018 (2)          
Net sales $133,397  $42,661  $65,114  $(1,351) $239,821 
Cost of sales  101,179   30,840   54,776   (984)  185,811 
Selling, general and administrative (3)  12,525   5,292   3,280   3,149   24,246 
Restructuring charges  240   -   3   -   243 
Depreciation and amortization  6,741   2,352   3,432   166   12,691 
Operating income (loss)  12,712   4,177   3,623   (3,682)  16,830 
Depreciation and amortization  6,741   2,352   3,432   166   12,691 
EBITDA  19,453   6,529   7,055   (3,516)  29,521 
Transaction and advisory fees  -   -   -   784   784 
Restructuring charges  240   -   3   -   243 
Adjusted EBITDA $19,693  $6,529  $7,058  $(2,732) $30,548 
Adjusted EBITDA Margin %  14.8%  15.3%  10.8%    12.7%
           
Nine months ended July 31, 2019          
Net sales $360,654  $121,203  $175,377  $(3,762) $653,472 
Cost of sales  278,877   84,139   150,944   (2,668)  511,292 
Selling, general and administrative  37,240   17,444   13,914   8,868   77,466 
Restructuring charges  281   -   -   -   281 
Depreciation and amortization  20,208   6,669   9,902   379   37,158 
Asset impairment charges  -   -   29,978   -   29,978 
Operating income (loss)  24,048   12,951   (29,361)  (10,341)  (2,703)
Depreciation and amortization  20,208   6,669   9,902   379   37,158 
EBITDA  44,256   19,620   (19,459)  (9,962)  34,455 
Asset impairment charges  -   -   29,978   -   29,978 
Transaction and advisory fees  -   -   -   1,217   1,217 
Severance charges  -   -   -   2,301   2,301 
Restructuring charges  281   -   -   -   281 
Adjusted EBITDA $44,537  $19,620  $10,519  $(6,444) $68,232 
Adjusted EBITDA Margin %  12.3%  16.2%  6.0%    10.4%
           
Nine months ended July 31, 2018 (2)          
Net sales $350,280  $115,481  $183,705  $(3,767) $645,699 
Cost of sales  269,660   83,261   159,128   (2,692)  509,357 
Selling, general and administrative (3)  39,371   16,798   12,368   3,680   72,217 
Restructuring charges  728   -   123   -   851 
Depreciation and amortization  20,561   7,328   10,957   428   39,274 
Operating income (loss)  19,960   8,094   1,129   (5,183)  24,000 
Depreciation and amortization  20,561   7,328   10,957   428   39,274 
EBITDA  40,521   15,422   12,086   (4,755)  63,274 
Transaction related costs  -   -   -   798   798 
Restructuring charges  728   -   123   -   851 
Adjusted EBITDA $41,249  $15,422  $12,209  $(3,957) $64,923 
Adjusted EBITDA Margin %  11.8%  13.4%  6.6%    10.1%
           
(1) NA Fenestration and EU Fenestration were previously named "NA Engineered Components" and "EU Engineered Components," respectively.      
(2) Updated to reflect the adoption of ASU 2017-07.          
(3) Updated to reflect a reduction in corporate allocations of $1.2 million and $2.1 million during the three and nine months ended July 31, 2018 due to a change in allocation methodology during the fourth quarter of 2018.
 

 

QUANEX BUILDING PRODUCTS CORPORATION
SALES ANALYSIS
(In thousands)
(Unaudited)
         
  Three Months Ended Nine Months Ended
  July 31, 2019 July 31, 2018 July 31, 2019 July 31, 2018
         
NA Fenestration:       
 United States - fenestration$119,481  $112,914  $312,509  $297,700 
 International - fenestration 7,172   11,851   23,474   27,758 
 United States - non-fenestration 3,982   4,675   12,290   13,518 
 International - non-fenestration 5,624   3,957   12,381   11,304 
  $136,259  $133,397  $360,654  $350,280 
EU Fenestration (1):       
 International - fenestration$36,342  $34,881  $102,038  $97,597 
 International - non-fenestration 7,984   7,780   19,165   17,884 
  $44,326  $42,661  $121,203  $115,481 
NA Cabinet Components:       
 United States - fenestration$3,561  $3,650  $9,909  $10,500 
 United States - non-fenestration 54,512   60,843   163,694   171,547 
 International - non-fenestration 616   621   1,774   1,658 
  $58,689  $65,114  $175,377  $183,705 
Unallocated Corporate & Other:       
 Eliminations$(813) $(1,351) $(3,762) $(3,767)
  $(813) $(1,351) $(3,762) $(3,767)
         
Net Sales$238,461  $239,821  $653,472  $645,699 
         
(1) Reflects reductions of $2.1 million and $6.5 million in revenue associated with foreign currency exchange rate impacts for the three and nine months ended July 31, 2019.