Quanex Corp. Q3 Report 2022

Quanex reported net sales of $324.0 million during the three months ended July 31, 2022, which represents growth of 15.8% compared to $279.9 million for the same period of 2021. The increase was mostly attributable to higher prices related to the pass-through of raw material cost inflation.

More specifically, the Company realized net sales growth of 25.0% in its North American Fenestration segment, 17.0% in its North American Cabinet Components segment, and 8.7% in its European Fenestration segment, excluding the foreign exchange impact.

The increase in earnings for the three months ended July 31, 2022, was largely due to increased pricing and surcharges related to the pass-through of raw material cost inflation and higher volumes in the North American Fenestration segment.

• As of July 31, 2022, Quanex had a total debt of $38.0 million, and its leverage ratio of Net Debt to LTM Adjusted EBITDA improved to 0.1x.
• The Company’s liquidity increased to $332.0 million as of July 31, 2022, consisting of $50.0 million in cash on hand plus availability under its new Amended and Restated Senior Secured Revolving Credit Facility due 2027. less letters of credit outstanding.