American Woodmark Corporation (NASDAQ:AMWD) Q2 2023 Earnings Call Transcript

Joseph Ahlersmeyer: Okay. Great. What about the multi-family business on the new construction side? I know it’s sort of limited regionally for you guys to the Southwest. But is there an opportunity for you to participate in that backlog given that now it’s actually larger than the single-family backlog?

Scott Culbreth: Most of that shows up in our PCS business, which I mentioned earlier, that’s a frameless application or a platform. And that’s been strong for us. As you noted, it is regional. It’s mostly a Southern California and a Phoenix or Southwest region play for us. It’s been strong. The backlog is high. We’ve not made as much progress bringing that down. So that will continue to be something we’ll be focused on in the back half as normalizing the production platform in PCS.

Joseph Ahlersmeyer: All right. Thanks for the questions, guys.

Scott Culbreth: Thanks, Joe.

Operator: And the next question will come from Garik Shmois with Loop Capital. Please go ahead.

Jeffrey Stevenson: Hi. This is Jeff Stevenson on for Garik. Thanks for taking my questions today. Just wanted to dive more into the home center business and the trends you’re seeing there and expectations moving into your back half of your fiscal year?

Scott Culbreth: I guess nothing really incremental to add beyond the earlier remarks, Jeff. Again, our MTO business has softened. We referenced that last quarter. That’s been maintained, and we project that going forward to be a similar incoming order rate pattern. And then on the stock side, we made progress in recovering inventory stocking efforts necessary in the retailer. So we’re not going to have that extra inventory build that we need to accomplish. We’ll be focused on — I’m sorry, POS, TCS, but POS as we go forward.

Jeffrey Stevenson: Okay. Great. And then regarding EBITDA margin, you’ve been kind of firmly in the low-teen margins range you guided to, but how should we think about the cadence moving into the back half of the year?

Paul Joachimczyk: I guess you’re asking is there going to be disruption maybe quarter-to-quarter. I would just say that go back to our guidance, low double-digits, and my expectations will be in low double-digits in the back half.

Jeffrey Stevenson: Understood. Thanks.

Operator: Ladies and gentlemen, this does conclude our question-and-answer session. I would like to turn the line back over to Mr. Joachimczyk for any closing comments. Please go ahead, sir.

Paul Joachimczyk: Since, there are no additional questions, this concludes our call. Thank you for taking the time to participate.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.