American Woodmark Corporation (NASDAQ:AMWD) Q3 2023 Earnings Call Transcript

Unidentified Analyst: Right. I guess the way I’m asking is like, let’s say, if you — let’s say something goes up this month if you lose GBP10. The next month, you go like you lose GBP15. So that’s what I’m asking like what was an exit rate. So, is it trending upward or downward, I guess, I don’t know?

Scott Culbreth: Yes. I think the terminology we typically use when we talk about the demand, Stefan, is incoming order rates. So back to the earlier questions in that space, we definitely saw a decreasing incoming order rate throughout the quarter. We saw January then start to rebound, and we’ve seen that sustain. So, we’ve seen an improving incoming order rate recently.

Unidentified Analyst: All right. Thank you. And the last one for me. Can you talk about your operating efficiency initiatives?

Scott Culbreth: Sure. I mean what we’re going to be focused on is making sure we’ve rightsized our operations to the demand. So again, we had some attrition activities and reduction in force efforts inside the quarter. Our teams are focused on taking cost out of the process regardless of where it is. So that could be materials driven. It could be logistics transportation related. It could be manufacturing related. We continue to make investments in equipment such as automation. And we want to target that to be able to reduce the demand for labor, which drives the benefit to the enterprise, but also makes the work easier for our employees. If we’re able to do that, we’re able to track and retain the labor force more effectively. And just having less turnover inside the quarter has been a huge benefit for the enterprise as well.

Unidentified Analyst: Thank you so much for taking my questions.

Scott Culbreth: Yes, thank you.

Operator: Ladies and gentlemen, at this time, I see there is nobody else waiting to ask the questions. So, I’d like to turn the call 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 all for taking the time to participate.

Operator: Thank you, sir. And the conference has now concluded. Thank you for attending today’s presentation. You may now disconnect your lines.