On this page of StockholderLetter.com we present the latest annual shareholder letter from AMERICAN WOODMARK CORP — ticker symbol AMWD. Reading current and past AMWD letters to shareholders can bring important insights into the investment thesis.
2024 ANNUAL REPORT
At American Woodmark, we do more than make cabinets. We champion your unique style. We inspire fresh designs and bold possibilities, and celebrate the perfect union of creativity, reliable function, and value. At our core is a shared goal - a commitment to help customers build beautiful, comfortable spaces that reflect their idea of home. With our portfolio of brands, we can meet your ambition and bring your vision to life. Our purpose may seem simple, but the rewards it brings are immeasurable. We re over 8,600 strong, with a proud heritage, a thriving culture, and sustainable growth. Our employees are like family to us, and our products bring joy and peace of mind to homes across the country. American Woodmark stands for more than making cabinets - we make brighter futures. Creating Value Through People Our CITE principles help create the culture that sets us apart. Customer Satisfaction Provide the best quality, service, and value to the greatest number of people by doing whatever is reasonable and sometimes unreasonable. Integrity Do what is right: act fairly and responsibly, care about the dignity of each person and be a good citizen in the community. Teamwork Understand that we must all work together in order to succeed. Realize that each person must contribute to the team to be a part of the team. Excellence Strive to perform every job or action in a superior way. Be innovative, always helping others become the best they can be.
Dear Fellow Shareholders, During fiscal 2024, our teams delivered net sales of $1,848 million and grew adjusted EBITDA to $253 million or 13.7% of net sales. The improvement in the company s performance compared to the prior fiscal year is due to favorable mix, improved efficiencies in the manufacturing platforms and focus throughout the organization to drive operational excellence. We accomplished this with safety as a top priority and delivered an OSHA recordable rate of 1.42 for the fiscal year which is well below the Bureau of Labor Statistics industry averages. Our teams accomplished a number of key initiatives in fiscal year 2024 in support of our strategy that has three pillars Growth, Digital Transformation and Platform Design or GDP . Our teams are delivering on the strategy by leveraging American Woodmark s culture and connection with our employees, customers, suppliers, and communities. With respect to Growth, we launched a low-SKU, high value offering in the home centers earlier this calendar year targeting Pro s and expanded that program nationally for our dealer and distribution network. We also launched a new brand to serve our distribution customers 1951 CabinetryTM. As part of our Digital Transformation journey, we launched our customer relationship management ( CRM ) sales solution in the fall and went live on our ERP cloud solution in our new Monterrey, Mexico facility. Planning is underway for the next phase of the ERP implementation in our made-to-stock west coast manufacturing facilities to be completed in fiscal 2025. Under Platform Design, we opened a new facility in Monterrey, Mexico and expanded our Hamlet, North Carolina facility. This investment established a component operation in eastern Mexico and a stock kitchen and bath center of excellence footprint for the eastern US that will deliver additional capacity for our customers. We continue to execute the mission of the Company to Create Value Through People. We accomplish this through our CITE Principles which represent Customer Satisfaction, Integrity, Teamwork and Excellence. Over the past fiscal year our leadership team developed a training module on the principle of Excellence that we are cascading within the organization that will help deliver on our operational excellence goals. Looking forward, we remain committed to executing our GDP strategy. Growth will continue to be realized via product and channel expansion as we continue to evolve our offerings to meet customer needs, while ensuring we maintain a relevant and lean product line. Our upcoming summer launch will help grow our core business, the new distribution brand, 1951 CabinetryTM,will expand our presence in that channel, and we will grow our stock bath and kitchen business through share gains. Despite a near-term slowdown in demand, we believe in the long term growth in net sales and we project that we will grow Adjusted EBITDA to over $350 million in fiscal 2028.
Digital Transformation will bring our Company together and deliver efficiency gains across the enterprise. The expansion of our ERP cloud solution provider into our made-to-stock facilities on the west coast will occur during the fiscal year and scoping the next area of our CRM tool with the service module is underway. We will continue to invest in our online capabilities driving traffic and conversion through our remodel partners. Platform Design across our overall manufacturing and distribution footprint is focused on operational excellence and automation efforts with an emphasis to improve margins and positively impact our customer s overall experience. Work will continue as we ramp our Monterrey, Mexico and Hamlet, North Carolina facilities. Mill equipment continues to be installed at both sites and will continue to ramp up through the first half of the fiscal year. Automation efforts will continue as we have targeted $75 million in spending over the next five years. Future projects will be focused on our mill, component, and assembly operations. Our commitment to ESG continues as we positively impact our employees, communities, and key stakeholders. Over the last fiscal year, we invested in solar technology at our Maryland plant and are now able to provide electricity to the grid, completed the retrofit of our facilities to LED lighting and are conducting energy audits in high consumption locations. Reducing waste while recycling materials are key goals of our 2030 sustainability vision and we continue to identify outlets to recycle our waste streams. In addition, the American Woodmark Foundation made over 275 grants totaling over $650,000 in fiscal 2024 and continues to do make an impact in the communities where we live and work. In closing, I would like to thank each and every one of our teammates for their commitment and dedication to the success of our business. On behalf of our Chair, the Board of Directors, the leadership team, and the entire Company, we thank you for your continued support M. Scott Culbreth President & Chief Executive Officer
 • shareholder letter icon 7/11/2024 Letter Continued (Full PDF)
 • stockholder letter icon 7/11/2023 AMWD Stockholder Letter
 • stockholder letter icon More "Home Furnishings & Furniture" Category Stockholder Letters
 • Benford's Law Stocks icon AMWD Benford's Law Stock Score = 91


AMWD Shareholder/Stockholder Letter Transcript:

2024
ANNUAL
REPORT

At American Woodmark, we do more than make cabinets.
We champion your unique style. We inspire fresh designs and
bold possibilities, and celebrate the perfect union of creativity,
reliable function, and value.
At our core is a shared goal - a commitment to help customers build beautiful, comfortable spaces that
reflect their idea of home. With our portfolio of brands, we can meet your ambition and bring your vision
to life.
Our purpose may seem simple, but the rewards it brings are immeasurable. We   re over 8,600 strong, with
a proud heritage, a thriving culture, and sustainable growth. Our employees are like family to us, and our
products bring joy and peace of mind to homes across the country.
American Woodmark stands for more than making cabinets - we make brighter futures.
Creating Value Through People
Our CITE principles help create the culture that sets us apart.
Customer Satisfaction Provide the best quality, service, and value to the greatest number of people by
doing whatever is reasonable and sometimes unreasonable.
Integrity Do what is right: act fairly and responsibly, care about the dignity of each person and be a
good citizen in the community.
Teamwork Understand that we must all work together in order to succeed. Realize that each person
must contribute to the team to be a part of the team.
Excellence Strive to perform every job or action in a superior way. Be innovative, always helping others
become the best they can be.

Dear Fellow Shareholders,
During fiscal 2024, our teams delivered net sales of $1,848 million and grew adjusted EBITDA to
$253 million or 13.7% of net sales. The improvement in the company   s performance compared
to the prior fiscal year is due to favorable mix, improved efficiencies in the manufacturing platforms and focus throughout the organization to drive operational excellence. We accomplished
this with safety as a top priority and delivered an OSHA recordable rate of 1.42 for the fiscal year
which is well below the Bureau of Labor Statistics industry averages.
Our teams accomplished a number of key initiatives in fiscal year 2024 in support of our strategy that has three pillars Growth, Digital Transformation and Platform Design or    GDP   . Our
teams are delivering on the strategy by leveraging American Woodmark   s culture and connection with our employees, customers, suppliers, and communities.
With respect to Growth, we launched a low-SKU, high value offering in the home centers earlier this calendar year targeting Pro   s and expanded that program nationally for our dealer and
distribution network. We also launched a new brand to serve our distribution customers     1951
CabinetryTM.
As part of our Digital Transformation journey, we launched our customer relationship management (   CRM   ) sales solution in the fall and went live on our ERP cloud solution in our new Monterrey, Mexico facility. Planning is underway for the next phase of the ERP implementation in our
made-to-stock west coast manufacturing facilities to be completed in fiscal 2025.
Under Platform Design, we opened a new facility in Monterrey, Mexico and expanded our Hamlet, North Carolina facility. This investment established a component operation in eastern Mexico and a stock kitchen and bath center of excellence footprint for the eastern US that will deliver additional capacity for our customers.
We continue to execute the mission of the Company to Create Value Through People. We accomplish this through our CITE Principles which represent Customer Satisfaction, Integrity,
Teamwork and Excellence. Over the past fiscal year our leadership team developed a training
module on the principle of Excellence that we are cascading within the organization that will
help deliver on our operational excellence goals.
Looking forward, we remain committed to executing our GDP strategy.
Growth will continue to be realized via product and channel expansion as we continue to evolve
our offerings to meet customer needs, while ensuring we maintain a relevant and lean product
line. Our upcoming summer launch will help grow our core business, the new distribution brand,
1951 CabinetryTM,will expand our presence in that channel, and we will grow our stock bath and
kitchen business through share gains. Despite a near-term slowdown in demand, we believe in
the long term growth in net sales and we project that we will grow Adjusted EBITDA to over $350
million in fiscal 2028.

Digital Transformation will bring our Company together and deliver efficiency gains across the
enterprise. The expansion of our ERP cloud solution provider into our made-to-stock facilities on
the west coast will occur during the fiscal year and scoping the next area of our CRM tool with
the service module is underway. We will continue to invest in our online capabilities driving traffic and conversion through our remodel partners.
Platform Design across our overall manufacturing and distribution footprint is focused on operational excellence and automation efforts with an emphasis to improve margins and positively
impact our customer   s overall experience. Work will continue as we ramp our Monterrey, Mexico
and Hamlet, North Carolina facilities. Mill equipment continues to be installed at both sites and
will continue to ramp up through the first half of the fiscal year. Automation efforts will continue as we have targeted $75 million in spending over the next five years. Future projects will be
focused on our mill, component, and assembly operations.
Our commitment to ESG continues as we positively impact our employees, communities, and
key stakeholders. Over the last fiscal year, we invested in solar technology at our Maryland plant
and are now able to provide electricity to the grid, completed the retrofit of our facilities to LED
lighting and are conducting energy audits in high consumption locations. Reducing waste while
recycling materials are key goals of our 2030 sustainability vision and we continue to identify
outlets to recycle our waste streams. In addition, the American Woodmark Foundation made
over 275 grants totaling over $650,000 in fiscal 2024 and continues to do make an impact in the
communities where we live and work.
In closing, I would like to thank each and every one of our teammates for their commitment and
dedication to the success of our business.
On behalf of our Chair, the Board of Directors, the leadership team, and the entire Company, we
thank you for your continued support
M. Scott Culbreth
President & Chief Executive Officer



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