American Woodmark Corporation (AMWD): history, ownership, mission, how it works & makes money

A Brief History of American Woodmark Corporation (AMWD)

Founding and Early Years

American Woodmark Corporation was founded in 1980 in Winchester, Virginia. The company started with a modest woodworking operation, focusing primarily on kitchen and bath cabinetry. By the end of the decade, AMWD had made significant strides in expanding its operations.

Public Offering and Growth

In 1986, AMWD went public, trading on the NASDAQ under the symbol AMWD. The initial public offering raised approximately $5 million. The capital raised enabled the company to invest in modern manufacturing technologies and expand its product lines.

Strategic Acquisitions

Over the years, American Woodmark has pursued a strategy of growth through acquisitions. Notable acquisitions include:

• Acquisition of Shenandoah Cabinetry in 1999, which expanded its geographical reach.
• Purchase of the assets of Mooney’s Cabinets in 2003, enhancing product offerings.
• Acquisition of the assets of the cabinetry producer, Urban Effects, in 2015.

Financial Performance

As of the fiscal year 2023, American Woodmark reported revenues of approximately $1.46 billion, reflecting a compound annual growth rate (CAGR) of around 5% over the previous five years.

Industry Position

American Woodmark is one of the largest manufacturers of cabinetry in the United States, positioned among the top 5 in the industry. The company's competitive advantages include its extensive distribution network and a diverse range of product offerings, catering to both new home construction and remodeling sectors.

Sustainability Efforts

AMWD has committed to sustainable manufacturing practices. In 2021, the company reported that approximately 95% of its wood supply is certified through sustainable forestry practices. This commitment aligns with broader trends in consumer preferences for environmentally responsible products.

Market Challenges and Economic Impact

The company faces various challenges, including fluctuations in material costs and supply chain disruptions. In recent years, lumber prices saw a peak increase of over 400% in 2021 due to pandemic-related supply chain issues, significantly impacting production costs.

Recent Developments

In October 2023, AMWD announced plans to invest $15 million in upgrading manufacturing facilities to improve efficiency and reduce environmental impact. This strategic move indicates the company’s commitment to innovation and leadership in the cabinetry market.

A Who Owns American Woodmark Corporation (AMWD)

Ownership Structure

American Woodmark Corporation (AMWD) is primarily publicly traded on the NASDAQ under the symbol AMWD. The company's ownership can be divided into several categories:

• Institutional Investors
• Individual Shareholders
• Insider Ownership

Institutional Ownership

As of the latest available data, institutional ownership accounts for a significant portion of American Woodmark's shares. Key institutional investors include:

Individual Shareholder Distribution

Individual shareholders also play a role in the ownership of American Woodmark. The distribution can be summarized as follows:

Insider Ownership

Insider ownership reflects the stake held by executives and board members within American Woodmark. As of the latest reporting:

Recent Stock Performance

As of October 2023, the stock price of American Woodmark Corporation stands at approximately $55.14 per share, reflecting a market capitalization of around $600 million.

Market Trends and Indicators

The company has shown resilience amidst fluctuating market conditions, with a 1-year stock performance increase of approximately 15%, indicating positive investor confidence.

Summary of Ownership

The current ownership structure of American Woodmark reflects a well-distributed ownership model with significant stakes held by institutional investors, individual investors, and insiders.

American Woodmark Corporation (AMWD) Mission Statement

Overview of the Company

American Woodmark Corporation, founded in 1980, is a leading manufacturer of kitchen and bath cabinetry. The company caters to contractors, builders, and remodelers across the United States.

Mission Statement

The mission statement of American Woodmark Corporation emphasizes their commitment to quality, service, and innovation in cabinetry solutions.

The core elements of the mission statement include:

• Delivering high-quality products
• Providing exceptional customer service
• Continuous improvement and innovation
• Fostering a culture of integrity and respect

Financial Performance

American Woodmark Corporation has demonstrated strong financial performance in recent years. Key financial data includes:

Market Position

American Woodmark holds a significant position in the cabinetry market. Market share data indicates:

• Approximately 2% of the U.S. cabinetry market
• Revenue growth rate of 3.7% year-over-year as of 2023
• Serves over 1,600 customers

Sustainability Initiatives

In alignment with its mission, the company also focuses on sustainability, emphasizing eco-friendly practices in manufacturing:

• More than 70% of their wood products come from sustainable sources
• Reduction in wood waste by 30% over the past five years
• Commitment to reducing carbon emissions by 20% by 2025

Customer Commitment

American Woodmark Corporation prioritizes customer satisfaction, which is evident in their service metrics:

• Client satisfaction rating: 93% (2023)
• Average response time for customer inquiries: 24 hours
• Delivery reliability rate: 98.5%

Employee Engagement

The company values its workforce, which is essential for achieving its mission:

• Employee retention rate: 85% (2023)
• Annual training investment per employee: $1,200
• Diversity and inclusion initiatives: 50% of workforce from diverse backgrounds

Future Outlook

American Woodmark is poised for future growth with anticipated industry trends:

• Projected CAGR of 5% in the cabinetry industry through 2026
• Investment in new product lines: $50 million planned for 2024
• Expansion into e-commerce sales channels, targeting a 15% increase in online sales

How American Woodmark Corporation (AMWD) Works

Overview of American Woodmark Corporation

American Woodmark Corporation (AMWD) is a leading manufacturer of kitchen and bath cabinets in the United States. The company mainly serves the residential construction and remodeling markets. AMWD operates multiple manufacturing facilities across the country, producing a variety of cabinet styles and finishes.

Financial Performance

In the fiscal year 2023, American Woodmark reported revenues of approximately $1.396 billion. The net income for the same period was around $86.9 million, translating to earnings per share (EPS) of $3.51.

Manufacturing Process

American Woodmark utilizes a comprehensive manufacturing process that includes the following stages:

• Design and Prototyping
• Material Sourcing
• Production and Assembly
• Finishing and Quality Control
• Distribution

Product Offering

The product portfolio of American Woodmark encompasses various cabinet styles, including:

• Traditional
• Contemporary
• Transitional
• Rustic

Cabinets are offered in multiple finishes ranging from natural wood to painted options, allowing customers significant customization in their designs.

Market Segmentation

American Woodmark serves different market segments, primarily:

• New Home Construction
• Remodeling
• Multi-Family Housing

The company has a strong presence in both the retail and contractor segments.

Distribution Channels

The company distributes its products through various channels:

• Direct Sales to Homebuilders
• Retail Partners
• Online Platforms

Strategic Initiatives

American Woodmark focuses on several strategic initiatives to enhance operational efficiency:

• Investing in automation technology to reduce production costs.
• Streamlining supply chain logistics to improve delivery times.
• Enhancing customer service through improved order tracking systems.

Workforce and Employment Data

As of 2023, American Woodmark employs approximately 4,500 people across its manufacturing facilities and corporate offices. The company emphasizes training and development programs for its employees.

Recent Acquisitions

In recent years, American Woodmark has made significant acquisitions to expand its market reach:

• Acquisition of MasterBrand Cabinets for $1.1 billion.
• Acquired the distribution assets of several regional cabinet manufacturers to broaden its portfolio.

Competitive Landscape

American Woodmark faces competition from several key players in the cabinet manufacturing industry, including:

• Masco Corporation
• Shaw Industries
• Builder's FirstSource

Future Outlook

The company aims to increase its market share by focusing on innovation and expanding its product offerings. The projected revenue growth for the next fiscal year is estimated at 5% to 7%, considering the current trends in new construction and remodeling markets.

How American Woodmark Corporation (AMWD) Makes Money

Revenue Streams

American Woodmark Corporation primarily generates revenue from the manufacturing and distribution of kitchen and bath cabinetry. The company’s revenue sources can be segmented into the following categories:

• Cabinet sales to homebuilders
• Cabinet sales to remodelers and dealers
• Direct sales to residential consumers

Sales Breakdown

According to the latest financial reports, American Woodmark’s revenue breakdown is as follows:

Geographic Distribution

The company operates across various regions, impacting its financial performance. The geographic breakdown of the revenue highlights its reach:

Cost of Goods Sold (COGS)

American Woodmark incurs costs related to manufacturing, which directly impact profitability. The latest calculations reveal:

• Raw materials cost: $300 million
• Labor costs: $200 million
• Overhead costs: $100 million

This results in a total COGS of approximately $600 million.

Gross Profit Margin

The gross profit margin for American Woodmark is calculated as follows:

• Total Revenue: $1,210 million
• Total COGS: $600 million
• Gross Profit: Total Revenue - COGS = $610 million
• Gross Profit Margin: (Gross Profit / Total Revenue) 100 = 50.4%

Operating Expenses

Operating expenses are significant for American Woodmark and include:

• Selling, General and Administrative Expenses: $200 million
• Research and Development Expenses: $50 million

Net Income

The net income for American Woodmark can be summarized as follows:

• Gross Profit: $610 million
• Operating Expenses: $250 million
• Net Income: Gross Profit - Operating Expenses = $360 million

Market Position and Competitors

American Woodmark’s market position is significant in the cabinetry industry. The company competes with:

• Masco Corporation
• KraftMaid Cabinetry
• American Classics

Stock Performance

As of October 2023, the stock price of American Woodmark (AMWD) stood at:

• Current Stock Price: $70.50
• Market Capitalization: $1.57 billion
• Price-to-Earnings (P/E) Ratio: 18.5