Quanex Building Products Announces Second Quarter 2021 Results and Increases Full Year 2021 Guidance Again

HOUSTON, Texas, UNITED STATES


Robust Revenue Growth Realized Across All Operating Segments
Significant Margin Expansion in NA and EU Fenestration Segments
Strong Balance Sheet
Repaid $25 Million of Bank Debt
Positive Outlook Remains Intact

HOUSTON, June 03, 2021 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation (NYSE:NX) (“Quanex” or the “Company”) today announced its results for the three months ended April 30, 2021.

The Company reported the following selected financial results:

   Three Months Ended April 30, Six Months Ended April 30,
($ in millions, except per share data)   2021   2020   2021   2020 
Net Sales  $270.4  $187.5  $500.5  $384.1 
Gross Margin  $61.9  $37.7  $115.6  $76.9 
Gross Margin %   22.9%   20.1%   23.1%   20.0% 
Net Income  $14.5  $5.5  $22.4  $5.5 
Diluted EPS  $0.43  $0.17  $0.67  $0.17 
          
Adjusted Net Income  $14.6  $6.4  $23.6  $7.6 
Adjusted Diluted EPS  $0.43  $0.19  $0.70  $0.23 
Adjusted EBITDA  $32.2  $21.8  $56.6  $37.5 
Adjusted EBITDA Margin %   11.9%   11.6%   11.3%   9.8% 
          
Cash Provided by Operating Activities  $32.4  $6.1  $29.0  $2.5 
Free Cash Flow  $27.8   ($0.9)  $19.2   ($13.8) 

(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)

George Wilson, President and Chief Executive Officer, commented, “Demand for our products remained high throughout the second quarter of 2021 and as a result we posted another very solid quarter. On a consolidated basis, net sales increased by 44.2% and Adjusted EBITDA margin improved by approximately 30 basis points year-over-year as compared to the second quarter of 2020. Our balance sheet is strong, and we were able to repay $25.0 million in bank debt during the quarter while also repurchasing approximately $2.0 million of our common stock. We will continue to focus on generating cash and paying down debt. Despite inflationary headwinds and labor challenges, we remain optimistic on the global economic outlook and overall trends within the residential housing industry. Our business is performing well, and we are confident in our ability to continue creating value for shareholders.” (See Non-GAAP Terminology Definitions and Disclaimers section for additional information)

Second Quarter 2021 Results Summary   

The robust net sales growth during the three months ended April 30, 2021 was mainly the result of increased demand for the Company’s products across all product lines and operating segments coupled with increased pricing mostly related to raw material cost inflation. More specifically, Quanex posted net sales growth of 34.6% in its North American Fenestration segment, 25.5% in its North American Cabinet Components segment and 92.1% in its European Fenestration segment, excluding the foreign exchange impact. As a reminder, both of the Company’s manufacturing facilities in the U.K. were shut down in late March of 2020 and did not resume operations until mid-to-late May last year. (See Sales Analysis table for additional information)

The increase in earnings for the second quarter of 2021 was mostly due to higher volumes and improved operating leverage. The increase in earnings was somewhat offset by inflationary pressures and an increase in selling, general and administrative expenses, which was largely attributable to more normalized medical costs combined with an increase in stock-based compensation expense that resulted from the shareholder value created by the further appreciation of Quanex’s stock price during the period.  

Balance Sheet & Liquidity Update

As of April 30, 2021, Quanex had total debt of $88.7 million and its leverage ratio of Net Debt to LTM Adjusted EBITDA improved to 0.3x. (See Non-GAAP Terminology Definitions and Disclaimers section and Net Debt and LTM Adjusted EBITDA reconciliation tables for additional information)

The Company’s liquidity increased to $296.8 million as of April 30, 2021, consisting of $49.3 million in cash on hand plus availability under its Senior Secured Revolving Credit Facility due 2023, less letters of credit outstanding.

Share Repurchases

Quanex’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. The Company repurchased 80,556 shares of common stock for approximately $2.0 million at an average price of $25.33 per share during the three months ended April 30, 2021. As of April 30, 2021, approximately $7.2 million remained under the existing share repurchase authorization.   

Outlook        

George Wilson, President and Chief Executive Officer, stated, “Our outlook for the balance of the year remains positive and we continue to be optimistic about the economic recovery. We do anticipate ongoing inflationary pressure and challenges with our supply chain and labor. However, based on our strong first half results, ongoing conversations with our customers and the latest macroeconomic indicators for the residential housing industry, we are again raising our expectations for the year. We now expect approximately 20% sales growth in our North American Fenestration segment, approximately 15% sales growth in our North American Cabinet Components segment, and approximately 40% sales growth in our European Fenestration segment. In summary, on a consolidated basis, we now believe we can achieve net sales of approximately $1.04 billion to $1.06 billion, which we expect will generate approximately $125 million to $130 million in Adjusted EBITDA* in fiscal 2021.”

*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 Friday, June 4, 2021, 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 3483342, 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 June 11, 2021. To access the replay dial (855) 859-2056 for domestic callers and (404) 537-3406 for international callers, in both cases referencing conference passcode 3483342.  

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, 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.   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 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, 2020, 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 INCOME
(In thousands, except per share data)
(Unaudited)

  Three Months Ended April 30, Six Months Ended April 30, 
   2021   2020   2021   2020  
          
Net sales $270,357  $187,475  $500,504  $384,072  
Cost of sales  208,460   149,732   384,857   307,159  
Selling, general and administrative  29,672   16,713   60,533   40,845  
Restructuring charges  -   251   39   404  
Depreciation and amortization  10,845   11,886   21,860   24,791  
Operating income  21,380   8,893   33,215   10,873  
Interest expense  (640)  (1,563)  (1,391)  (3,145) 
Other, net  265   300   457   336  
Income before income taxes  21,005   7,630   32,281   8,064  
Income tax expense  (6,454)  (2,129)  (9,878)  (2,553) 
Net income $14,551  $5,501  $22,403  $5,511  
          
Earnings per common share, basic $0.44  $0.17  $0.68  $0.17  
Earnings per common share, diluted $0.43  $0.17  $0.67  $0.17  
          
Weighted average common shares outstanding:         
Basic  33,355   32,676   33,110   32,770  
Diluted  33,637   32,793   33,444   32,907  
          
Cash dividends per share $0.08  $0.08  $0.16  $0.16  
          

QUANEX BUILDING PRODUCTS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

  April 30, 2021 October 31, 2020
ASSETS    
Current assets:    
Cash and cash equivalents $49,258  $51,621 
Accounts receivable, net  96,521   88,287 
Inventories, net  80,365   61,181 
Prepaid and other current assets  8,361   6,217 
Total current assets  234,505   207,306 
Property, plant and equipment, net  178,466   184,104 
Operating lease right-of-use assets  56,424   51,824 
Goodwill  150,302   146,154 
Intangible assets, net  88,850   93,068 
Other assets  7,025   9,129 
Total assets $715,572  $691,585 
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities:    
Accounts payable $83,081  $77,335 
Accrued liabilities  41,207   38,289 
Income taxes payable  2,463   6,465 
Current maturities of long-term debt  745   692 
Current operating lease liabilities  8,226   7,459 
Total current liabilities  135,722   130,240 
Long-term debt  87,195   116,728 
Noncurrent operating lease liabilities  48,989   44,873 
Deferred pension and postretirement benefits  10,819   10,923 
Deferred income taxes  22,078   19,116 
Other liabilities  15,672   13,946 
Total liabilities  320,475   335,826 
Stockholders’ equity:    
Common stock  373   373 
Additional paid-in-capital  253,147   253,458 
Retained earnings  230,590   213,517 
Accumulated other comprehensive loss  (23,392)  (33,024)
Treasury stock at cost  (65,621)  (78,565)
Total stockholders’ equity  395,097   355,759 
Total liabilities and stockholders' equity $715,572  $691,585 
     

QUANEX BUILDING PRODUCTS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(In thousands)
(Unaudited)

 Six Months Ended April 30,
  2021   2020 
Operating activities:   
Net income$22,403  $5,511 
Adjustments to reconcile net income to cash provided by operating activities:   
Depreciation and amortization 21,860   24,791 
Stock-based compensation 970   86 
Deferred income tax 2,339   1,194 
Other, net 5,049   463 
Changes in assets and liabilities:   
(Increase) decrease in accounts receivable (6,726)  14,682 
Increase in inventory (18,265)  (8,363)
Increase in other current assets (2,013)  (559)
Increase (decrease) in accounts payable 5,584   (16,807)
Increase (decrease) in accrued liabilities 994   (13,673)
Decrease in income taxes payable (4,071)  (4,052)
(Decrease) increase in deferred pension and postretirement benefits (104)  562 
Increase (decrease) in other long-term liabilities 642   (787)
Other, net 298   (576)
Cash provided by operating activities 28,960   2,472 
Investing activities:   
Capital expenditures (9,799)  (16,313)
Proceeds from disposition of capital assets 1,665   33 
Cash used for investing activities (8,134)  (16,280)
Financing activities:   
Borrowings under credit facilities -   114,500 
Repayments of credit facility borrowings (30,000)  (41,000)
Repayments of other long-term debt (605)  (505)
Common stock dividends paid (5,330)  (5,287)
Issuance of common stock 16,123   2,954 
Payroll tax paid to settle shares forfeited upon vesting of stock (492)  (454)
Purchase of treasury stock (3,968)  (6,693)
Cash (used for) provided by financing activities (24,272)  63,515 
Effect of exchange rate changes on cash and cash equivalents 1,083   (323)
(Decrease) increase in cash and cash equivalents (2,363)  49,384 
Cash and cash equivalents at beginning of period 51,621   30,868 
Cash and cash equivalents at end of period$49,258  $80,252 
    

QUANEX BUILDING PRODUCTS CORPORATION
FREE CASH FLOW AND NET DEBT RECONCILIATIONS
(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 April 30, Six Months Ended April 30, 
   2021 2020 2021 2020 
Cash provided by operating activities  32,355 $6,129 28,960 $2,472 
Capital expenditures  (4,553) (7,001) (9,799) (16,313) 
Free Cash Flow  $27,802 ($872) $19,161 ($13,841) 
           
           
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 April 30,   
   2021 2020     
Revolving Credit Facility  $73,000 $216,000     
Finance Lease Obligations  15,689 15,416     
Total Debt (1)  88,689 231,416     
Less: Cash and cash equivalents  49,258 80,252     
Net Debt  $39,431 $151,164     
           
(1) Excludes outstanding letters of credit.          
           

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 Three Months Ended Six Months Ended Six Months Ended 
 April 30, 2021 April 30, 2020 April 30, 2021 April 30, 2020 
  Net Income Diluted EPS Net Income Diluted EPS Net Income Diluted EPS Net Loss Diluted EPS 
Net income as reported $ 14,551 $ 0.43 $ 5,501 $ 0.17 $ 22,403 $ 0.67 $ 5,511 $ 0.17 
Reconciling items from below 3 0.00 890 0.02 1,174 0.03 2,106 0.06 
Adjusted net income and adjusted EPS $ 14,554 $ 0.43 $ 6,391 $ 0.19 $ 23,577 $ 0.70 $ 7,617 $ 0.23 
                  
Reconciliation of Adjusted EBITDA Three Months Ended
April 30, 2021
 Three Months Ended
April 30, 2020
 Six Months Ended
April 30, 2021
 Six Months Ended
April 30, 2020
 
  Reconciliation   Reconciliation   Reconciliation   Reconciliation   
Net income as reported $ 14,551   $ 5,501   $ 22,403   $ 5,511   
Income tax expense 6,454   2,129   9,878   2,553   
Other, net (265)   (300)   (457)   (336)   
Interest expense 640   1,563   1,391   3,145   
Depreciation and amortization 10,845   11,886   21,860   24,791   
EBITDA 32,225   20,779   55,075   35,664   
Reconciling items from below -   1,031   1,478   1,802   
Adjusted EBITDA $ 32,225   $ 21,810   $ 56,553   $ 37,466   
                  
Reconciling Items Three Months Ended
April 30, 2021
 Three Months Ended
April 30, 2020
 Six Months Ended
April 30, 2021
 Six Months Ended
April 30, 2020
 
  Income Statement Reconciling Items Income Statement Reconciling Items Income Statement Reconciling Items Income Statement Reconciling Items 
Net sales $ 270,357 - $ 187,475 $ - $ 500,504 $ - $ 384,072 $- 
Cost of sales 208,460 - 149,732 - 384,857 - 307,159 - 
Selling, general and administrative 29,672 - 16,713 (780)(1)60,533 (1,439) 40,845 (1,398)(1)
Restructuring charges - - 251 (251)(2)39 (39)(2)404 (404)(2)
EBITDA 32,225 - 20,779 1,031 55,075 1,478 35,664 1,802 
Depreciation and amortization 10,845 - 11,886 (237)(3)21,860 - 24,791 (968)(3)
Operating income 21,380 - 8,893 1,268 33,215 1,478 10,873 2,770 
Interest expense (640) - (1,563) - (1,391) - (3,145) - 
Other, net 265 4(4)300 (128)(4)457 82(4)336 (68)(4)
Income before income taxes 21,005 4 7,630 1,140 32,281 1,560 8,064 2,702 
Income tax expense (6,454) (1)(5)(2,129) (250)(5)(9,878) (386)(5)(2,553) (596)(5)
Net income $ 14,551 $ 3 $ 5,501 $ 890 $ 22,403 $ 1,174 $ 5,511 $ 2,106 
                  
Diluted earnings per share $ 0.43   $ 0.17   $ 0.67   $ 0.17   
                  
                  
(1) Transaction and advisory fees, $1.4 million related to the loss on a sale of a plant in the six months ended April 30, 2021, $0.8 million and $1.3 million related to executive severance charges in the three and six months ended April 30, 2020, respectively.
(2) Restructuring charges related to the closure of manufacturing plant facilities. 
(3) Accelerated depreciation related to the closure of a North American Cabinet Components plant. 
(4) Foreign currency transaction (losses) gains. 
(5) Impact on a with and without basis. 
                  

QUANEX BUILDING PRODUCTS CORPORATION
NON-GAAP FINANCIAL MEASURE DISCLOSURE
(In thousands)
(Unaudited)

           
Reconciliation of Last Twelve Months Adjusted EBITDA Three Months Ended April 30, 2021 Three Months Ended January 31, 2021 Three Months Ended October 31, 2020 Three Months Ended July 31, 2020 Total
  Reconciliation Reconciliation Reconciliation Reconciliation Reconciliation
Net income as reported $14,551  $7,852  $22,152  $10,833 $55,388 
Income tax expense  6,454   3,424   4,906   4,345  19,129 
Other, net  (265)  (192)  (164)  220  (401)
Interest expense  640   751   935   1,165  3,491 
Depreciation and amortization  10,845   11,015   11,378   11,060  44,298 
EBITDA  32,225   22,850   39,207   27,623  121,905 
Selling, general and administrative (1)  -   1,439   -   -  1,439 
Restructuring charges (2)  -   39   145   73  257 
Adjusted EBITDA $32,225  $24,328  $39,352  $27,696 $123,601 
           
(1) Transaction and advisory fees, loss on the sale of a plant, and executive severance charges.
(2) Restructuring charges relate to the closure of manufacturing plant facilities.
           

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 April 30, 2021          
Net sales $146,143  $61,657  $63,562  $(1,005) $270,357 
Cost of sales  112,368   41,361   55,162   (431)  208,460 
Gross Margin  33,775   20,296   8,400   (574)  61,897 
Gross Margin %  23.1%  32.9%  13.2%    22.9%
Selling, general and administrative  13,146   7,439   5,379   3,708   29,672 
Depreciation and amortization  4,846   2,607   3,305   87   10,845 
Operating income (loss)  15,783   10,250   (284)  (4,369)  21,380 
Depreciation and amortization  4,846   2,607   3,305   87   10,845 
EBITDA  20,629   12,857   3,021   (4,282)  32,225 
Adjusted EBITDA $20,629  $12,857  $3,021  $(4,282) $32,225 
Adjusted EBITDA Margin %  14.1%  20.9%  4.8%    11.9%
           
Three months ended April 30, 2020          
Net sales $108,593  $29,200  $50,664  $(982) $187,475 
Cost of sales  85,153   20,966   44,198   (585)  149,732 
Gross Margin  23,440   8,234   6,466   (397)  37,743 
Gross Margin %  21.6%  28.2%  12.8%    20.1%
Selling, general and administrative  9,985   5,292   3,981   (2,545)  16,713 
Restructuring charges  66   -   185   -   251 
Depreciation and amortization  5,961   2,330   3,474   121   11,886 
Operating income (loss)  7,428   612   (1,174)  2,027   8,893 
Depreciation and amortization  5,961   2,330   3,474   121   11,886 
EBITDA  13,389   2,942   2,300   2,148   20,779 
Executive severance charges  -   -   -   780   780 
Restructuring charges  66   -   185   -   251 
Adjusted EBITDA $13,455  $2,942  $2,485  $2,928  $21,810 
Adjusted EBITDA Margin %  12.4%  10.1%  4.9%    11.6%
           
Six months ended April 30, 2021          
Net sales $274,259  $110,748  $117,556  $(2,059) $500,504 
Cost of sales  211,761   73,152   101,036   (1,092)  384,857 
Gross Margin  62,498   37,596   16,520   (967)  115,647 
Gross Margin %  22.8%  33.9%  14.1%    23.1%
Selling, general and administrative  25,516   14,034   10,242   10,741   60,533 
Restructuring charges  39   -   -   -   39 
Depreciation and amortization  9,957   5,125   6,575   203   21,860 
Operating income (loss)  26,986   18,437   (297)  (11,911)  33,215 
Depreciation and amortization  9,957   5,125   6,575   203   21,860 
EBITDA  36,943   23,562   6,278   (11,708)  55,075 
Loss on sale of plant  -   -   -   1,439   1,439 
Restructuring charges  39   -   -   -   39 
Adjusted EBITDA $36,982  $23,562  $6,278  $(10,269) $56,553 
Adjusted EBITDA Margin %  13.5%  21.3%  5.3%    11.3%
           
Six months ended April 30, 2020          
Net sales $219,045  $65,966  $100,708  $(1,647) $384,072 
Cost of sales  173,850   46,210   88,040   (941)  307,159 
Gross Margin  45,195   19,756   12,668   (706)  76,913 
Gross Margin %  20.6%  29.9%  12.6%    20.0%
Selling, general and administrative  23,040   11,242   8,834   (2,271)  40,845 
Restructuring charges  157   -   247   -   404 
Depreciation and amortization  12,940   4,738   6,875   238   24,791 
Operating income (loss)  9,058   3,776   (3,288)  1,327   10,873 
Depreciation and amortization  12,940   4,738   6,875   238   24,791 
EBITDA  21,998   8,514   3,587   1,565   35,664 
Transaction and advisory fees  -   -   -   55   55 
Executive severance charges  -   -   -   1,343   1,343 
Restructuring charges  157   -   247   -   404 
Adjusted EBITDA $22,155  $8,514  $3,834  $2,963  $37,466 
Adjusted EBITDA Margin %  10.1%  12.9%  3.8%    9.8%
           

QUANEX BUILDING PRODUCTS CORPORATION
SALES ANALYSIS
(In thousands)
(Unaudited)

  Three Months Ended Six Months Ended
  April 30, 2021 April 30, 2020 April 30, 2021 April 30, 2020
         
NA Fenestration:       
 United States - fenestration$128,218  $95,791  $240,518  $192,638 
 International - fenestration 8,397   6,153   16,175   12,587 
 United States - non-fenestration 6,293   4,372   11,690   8,935 
 International - non-fenestration 3,235   2,277   5,876   4,885 
  $146,143  $108,593  $274,259  $219,045 
EU Fenestration (1):       
 International - fenestration$50,835  $24,865  $92,189  $55,829 
 International - non-fenestration 10,822   4,335   18,559   10,137 
  $61,657  $29,200  $110,748  $65,966 
NA Cabinet Components:       
 United States - fenestration$3,497  $2,647  $6,471  $5,795 
 United States - non-fenestration 60,388   47,540   110,890   93,989 
 International - non-fenestration (323)  477   195   924 
  $63,562  $50,664  $117,556  $100,708 
Unallocated Corporate & Other:       
 Eliminations$(1,005) $(982) $(2,059) $(1,647)
  $(1,005) $(982) $(2,059) $(1,647)
         
Net Sales$270,357  $187,475  $500,504  $384,072 
         
(1) Reflects increase of $2.9 million and $4.8 million in revenue associated with foreign currency exchange rate impacts for the three and six months ended April 30, 2021, respectively.