GlobeNewswire Inc | Dec 10, 2020 04:15PM EST

December 10, 2020

Margin Expansion Realized Across All Segments in 4Q20Balance Sheet & Liquidity Continue to Improve and Remain Strong~~V0:5% Increase in Cash Provided by Operating Activities in FY20Repaid $35 Million of Bank Debt in 4Q20

HOUSTON, Dec. 10, 2020 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation (NYSE:NX) (Quanex or the Company) today announced its results for the three months and twelve months ended October 31, 2020.

The Company reported the following selected financial results:

Three Months Twelve Months Ended October 31, Ended October 31, 2020 2019 2020 2019Net Sales $255.4 $240.4 $851.6 $893.8Gross Margin $66.2 $57.2 $192.8 $199.4Gross Margin % 25.9% 23.8% 22.6% 22.3%Net Income (Loss) $22.2 ($30.9) $38.5 ($46.7)Diluted EPS $0.68 ($0.94) $1.17 ($1.42) Adjusted Net Income $22.0 $14.0 $40.7 $31.4Adjusted Diluted EPS $0.67 $0.42 $1.24 $0.95Adjusted EBITDA $39.4 $34.4 $104.5 $102.7Adjusted EBITDA Margin % 15.4% 14.3% 12.3% 11.5% Cash Provided by Operating Activities $53.2 $66.3 $100.8 $96.4Free Cash Flow $48.2 $58.4 $75.1 $71.5(See Non-GAAP Terminology Definitions and Disclaimers section, Non-GAAPFinancial Measure Disclosure table Selected Segment Data table and Free CashFlow Reconciliation table for additional information)

George Wilson, President and Chief Executive Officer, commented, Our business performed extremely well in the fourth quarter as we continued to effectively navigate the complications and uncertainty of a COVID-19 world. Demand for our products remained strong throughout the quarter, with consolidated net sales increasing 6.3% year-over-year as compared to the fourth quarter of 2019. Volumes during the quarter were especially strong in Europe, and we remain optimistic on the global economic outlook despite the recent worldwide surge in COVID-19 cases.

In addition to the lift provided by strong demand during the fourth quarter, our relentless focus on managing working capital and generating cash continued to bear fruit throughout the fiscal year. As a result, we achieved $100.8 million in cash provided by operating activities in 2020, representing an increase of 4.6% as compared to 2019. We generated Free Cash Flow of $75.1 million in 2020, representing a year-over-year increase of over 5%. We also repaid $35 million of bank debt during the fourth quarter, which allowed us to improve our leverage ratio of Net Debt to LTM Adjusted EBITDA to a level well below our original goal of exiting 2020 at 1.0x. Overall, I am extremely pleased with our ability to successfully manage both the challenges and the opportunities presented by the pandemic. Our balance sheet is stronger now than it was prior to COVID-19, and we are well positioned to benefit from future tailwinds in the residential housing industry. (See Non-GAAP Terminology Definitions and Disclaimers section for additional information)

FourthQuarter and Fiscal 2020 Results Summary

The increase in net sales during the three months ended October 31, 2020 was largely due to increased demand for the Companys products across all operating segments. Conversely, Quanex reported a decrease in net sales for the twelve months ended October 31, 2020, which was primarily attributable to the negative impact of the COVID-19 pandemic on the Companys results during the second and third quarters of 2020. More specifically, in addition to softer demand in North America and continental Europe during the early stages of the pandemic, Quanexs two manufacturing facilities in the UK were shut down in compliance with government orders in late March, and manufacturing operations at those plants did not restart until mid-to-late May. However, volume across all segments increased significantly in June, and net sales in July through October exceeded prior year on a consolidated basis. (See Sales Analysis table for additional information)

The increases in earnings for the three months ended October 31, 2020 were mainly due to higher volumes, improved operating leverage and lower raw material costs. The increases in earnings for the twelve months ended October 31, 2020 were primarily driven by a decrease in selling, general and administrative expenses.

Balance Sheet & Liquidity Update

As of October 31, 2020, the Companys leverage ratio of Net Debt to LTM Adjusted EBITDA improved to 0.6x. (See Non-GAAP Terminology Definitions and Disclaimers section for additional information)

The Companys liquidity increased to $268.8 million as of October 31, 2020, consisting of $51.6 million in cash on hand plus availability under its Senior Secured Revolving Credit Facility due 2023, less letters of credit outstanding.

Share Repurchases

Quanexs Board of Directors authorized a $60 million share repurchase program in September of 2018. Repurchases under this program will be made in open market transactions or privately negotiated transactions, subject to market conditions, applicable legal requirements and other relevant factors. The program does not have an expiration date or a limit on the number of shares that may be repurchased. The Company repurchased 30,201 shares of common stock for approximately $0.5 million at an average price of $17.89 per share during the three months ended October 31, 2020, and 450,000 shares of common stock for approximately $7.2 million at an average price of $16.07 per share during the twelve months ended October 31, 2020. As of October 31, 2020, approximately $11.2 million remained under the existing share repurchase authorization.

Outlook

George Wilson, President and Chief Executive Officer, stated, We continue to be optimistic about the economic recovery and our current outlook is positive, especially as regards our end markets. Based on conversations with our customers, the latest macro data, and our research into current market trends, we expect mid-to-high single-digit sales growth in our North American Fenestration segment, low single-digit sales growth in our North American Cabinet Components segment, and mid-single-digit sales growth in our European Fenestration segment. Overall, on a consolidated basis and assuming there is no adverse impact from the ongoing pandemic, we believe this will equate to net sales of approximately $900 million to $920 million, which we expect will generate between $108 million and $118 million in Adjusted EBITDA* in fiscal 2021. Our balance sheet is strong and we intend to concentrate on executing our plan with a continued focus on creating shareholder value.

*When Quanex provides expectations for Adjusted EBITDA on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and corresponding GAAP measures is generally not available without unreasonable effort. Certain items required for such a reconciliation are outside of the Companys control and/or cannot be reasonably predicted or estimated, such as the provision for income taxes.

Conference Call and Webcast Information

The Company has scheduled a conference call for Friday, December 11, 2020, at 11:00 a.m. ET (10:00 a.m. CT). To participate in the conference call dial (877) 388-2139 for domestic callers and (541) 797-2983 for international callers, in both cases using the conference passcode 4046353, and ask for the Quanex call a few minutes prior to the start time. A link to the live audio webcast will also be available on the Companys website at http://www.quanex.com in the Investors section under Presentations & Events. A telephonic replay of the call will be available approximately two hours after the live broadcast ends and will be accessible through December 18, 2020. To access the replay dial (855) 859-2056 for domestic callers and (404) 537-3406 for international callers, in both cases referencing conference passcode 4046353.

About Quanex

Quanex Building Products Corporation is an industry-leading manufacturer of components sold to Original Equipment Manufacturers (OEMs) in the building products industry. Quanex designs and produces energy-efficient fenestration products in addition to kitchen and bath cabinet components. For more information contact Scott Zuehlke, Senior Vice President, Chief Financial Officer & Treasurer, at 713-877-5327 or scott.zuehlke@quanex.com.

Non-GAAP Terminology Definitions and Disclaimers

Adjusted Net Income (Loss) (defined as net income further adjusted to exclude purchase price accounting inventory step-ups, transaction costs, certain severance charges, gain/loss on the sale of certain fixed assets, restructuring charges, asset impairment charges, other net adjustments related to foreign currency transaction gain/loss and effective tax rates reflecting impacts of adjustments on a with and without basis) and Adjusted EPS are non-GAAP financial measures that Quanex believes provide a consistent basis for comparison between periods and more accurately reflects operational performance, as they are not influenced by certain income or expense items not affecting ongoing operations. EBITDA (defined as net income or loss before interest, taxes, depreciation and amortization and other, net) and Adjusted EBITDA (defined as EBITDA further adjusted to exclude purchase price accounting inventory step-ups, transaction costs, certain severance charges, gain/loss on the sale of certain fixed assets, restructuring charges and asset impairment charges) are non-GAAP financial measures that the Company uses to measure operational performance and assist with financial decision-making. The leverage ratio of Net Debt to LTM Adjusted EBITDA is a financial measure that the Company believes is useful to investors and financial analysts in evaluating Quanexs leverage. In addition, with certain limited adjustments, this leverage ratio is the basis for a key covenant in the Companys credit agreement. Free Cash Flow is a non-GAAP measure calculated using cash provided by operating activities less capital expenditures. Free Cash Flow is measured before application of certain contractual commitments (including capital lease obligations), and accordingly is not a true measure of Quanexs residual cash flow available for discretionary expenditures. The Company believes that the presented non-GAAP measures provide a consistent basis for comparison between periods, and will assist investors in understanding Quanexs financial performance when comparing results to other investment opportunities. The presented non-GAAP measures may not be the same as those used by other companies. The Company does not intend for this information to be considered in isolation or as a substitute for other measures prepared in accordance with U.S. GAAP.

Forward Looking Statements

Statements that use the words estimated, expect, could, should, believe, will, might, or similar words reflecting future expectations or beliefs are forward-looking statements. The forward-looking statements include, but are not limited to, the following: impacts from public health issues (including pandemics, such as the recent COVID-19 pandemic) on the economy and the demand for Quanexs products, the Companys future operating results, future financial condition, future uses of cash and other expenditures, expenses and tax rates, expectations relating to Quanexs industry, and the Companys future growth, including any guidance discussed in this press release. The statements and guidance set forth in this release are based on current expectations. Actual results or events may differ materially from this release. For a complete discussion of factors that may affect Quanexs future performance, please refer to the Companys Annual Report on Form 10-K for the fiscal year ended October 31, 2019, and the Companys Quarterly Reports on Form 10-Q under the sections entitled Cautionary Note Regarding Forward-Looking Statements and Risk Factors. Any forward-looking statements in this press release are made as of the date hereof, and Quanex undertakes no obligation to update or revise any forward-looking statements to reflect new information or events.

QUANEX BUILDING PRODUCTS CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF NET INCOME (LOSS)(In thousands, except per share data)(Unaudited) Three Months Ended October 31, Twelve Months Ended October 31, 2020 2019 2020 2019 Net sales $ 255,405 $ 240,369 $ 851,573 893,841 Cost of sales 189,164 183,128 658,750 694,420 Selling,general and 26,889 23,826 89,707 101,292 administrativeRestructuring 145 89 622 370 chargesDepreciationand 11,378 12,428 47,229 49,586 amortizationAssetimpairment - 44,622 - 74,600 chargesOperating 27,829 (23,724 ) 55,265 (26,427 )income (loss)Interest (935 ) (2,029 ) (5,245 ) (9,643 )expenseOther, net 164 (345 ) 280 116 Income (loss)before income 27,058 (26,098 ) 50,300 (35,954 )taxesIncome tax (4,906 ) (4,850 ) (11,804 ) (10,776 )expenseNet income $ 22,152 $ (30,948 ) $ 38,496 $ (46,730 )(loss) Earnings(loss) per $ 0.68 $ (0.94 ) $ 1.18 $ (1.42 )common share,basicEarnings(loss) per $ 0.68 $ (0.94 ) $ 1.17 $ (1.42 )common share,diluted Weightedaverage common sharesoutstanding:Basic 32,608 32,893 32,689 32,960 Diluted 32,811 32,893 32,821 32,960 Cash dividends $ 0.08 $ 0.08 $ 0.32 $ 0.32 per share

QUANEX BUILDING PRODUCTS CORPORATIONCONDENSED CONSOLIDATED BALANCE SHEETS(In thousands)(Unaudited) October 31, October 31, 2020 2019ASSETS Current assets: Cash and cash equivalents $ 51,621 $ 30,868 Accounts receivable, net 88,287 82,946 Inventories, net 61,181 67,159 Prepaid and other current assets 6,217 9,353 Total current assets 207,306 190,326 Property, plant and equipment, net 184,104 193,600 Operating lease right-of-use assets 51,824 - Goodwill 146,154 145,563 Intangible assets, net 93,068 107,297 Other assets 9,129 8,324 Total assets $ 691,585 $ 645,110 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 77,335 $ 63,604 Accrued liabilities 38,289 39,221 Income taxes payable 6,465 6,183 Current maturities of long-term debt 692 746 Current operating lease liabilities 7,459 - Total current liabilities 130,240 109,754 Long-term debt 116,728 156,414 Noncurrent operating lease liabilities 44,873 - Deferred pension and postretirement 10,923 13,322 benefitsDeferred income taxes 19,116 19,363 Liabilities for uncertain tax positions 522 556 Other liabilities 13,424 15,514 Total liabilities 335,826 314,923 Stockholders? equity: Common stock 373 374 Additional paid-in-capital 253,458 254,673 Retained earnings 213,517 185,703 Accumulated other comprehensive loss (33,024 ) (33,817 )Treasury stock at cost (78,565 ) (76,746 )Total stockholders? equity 355,759 330,187 Total liabilities and stockholders' equity $ 691,585 $ 645,110

QUANEX BUILDING PRODUCTS CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW(In thousands)(Unaudited) Twelve Months Ended October 31, 2020 2019 Operating activities: Net income (loss) $ 38,496 $ (46,730 )Adjustments to reconcile net income (loss) to cash provided by operating activities:Depreciation and amortization 47,229 49,586 Stock-based compensation 879 2,045 Deferred income tax (189 ) 3,260 Loss on the disposition of capital assets - 732 Asset impairment charge - 74,600 Other, net 1,689 2,176 Changes in assets and liabilities: (Increase) decrease in accounts receivable (5,766 ) 574 Decrease in inventory 6,119 3,797 Decrease (increase) in other current assets 2,896 (2,014 )Increase in accounts payable 15,922 8,124 Decrease in accrued liabilities (3,156 ) (6,760 )Increase in income taxes payable 237 3,416 (Decrease) increase in deferred pension and (2,775 ) 2,531 postretirement benefits(Decrease) increase in other long-term (236 ) 513 liabilitiesOther, net (549 ) 522 Cash provided by operating activities 100,796 96,372 Investing activities: Capital expenditures (25,726 ) (24,883 )Proceeds from disposition of capital assets 502 1,324 Cash used for investing activities (25,224 ) (23,559 )Financing activities: Borrowings under credit facilities 114,500 83,500 Repayments of credit facility borrowings (154,000 ) (136,000 )Repayments of other long-term debt (1,027 ) (1,526 )Common stock dividends paid (10,534 ) (10,644 )Issuance of common stock 3,626 3,287 Payroll tax paid to settle shares forfeited (454 ) (330 )upon vesting of stockPurchase of treasury stock (7,233 ) (9,551 )Cash used for financing activities (55,122 ) (71,264 )Effect of exchange rate changes on cash and 303 316 cash equivalentsIncrease in cash and cash equivalents 20,753 1,865 Cash and cash equivalents at beginning of 30,868 29,003 periodCash and cash equivalents at end of period $ 51,621 $ 30,868

QUANEX BUILDING PRODUCTS CORPORATIONFREE CASH FLOW RECONCILIATION(In thousands)(Unaudited) The following table reconciles the Company's calculation of Free Cash Flow, anon-GAAP measure, to its most directly comparable GAAP measure. The Companydefines Free Cash Flow as cash provided by operating activities less capitalexpenditures. Three Months Ended Twelve Months Ended October 31, October 31, 2020 2019 2020 2019Cash provided by operating 53,235 $66,336 $100,796 $96,372activitiesCapital expenditures (5,053) (7,899) (25,726) (24,883)Free Cash Flow $48,182 $58,437 $75,070 $71,489

QUANEX BUILDING PRODUCTS CORPORATIONNON-GAAP FINANCIAL MEASURE DISCLOSURE(In thousands, except per share data)(Unaudited) Reconciliationof Adjusted Three Months Ended Three Months Ended Twelve Months Ended Twelve Months Ended Net Income and October 31, 2020 October 31, 2019 October 31, 2020 October 31, 2019Adjusted EPS Net Diluted EPS Net Diluted Net Diluted Net (Loss) Diluted Income Income EPS Income EPS Income EPSNet income(loss) as $ 22,152 $ 0.68 $ (30,948 ) $ (0.94 ) $ 38,496 $ 1.17 $ (46,730 ) $ (1.42 ) reportedReconcilingitems from (168 ) (0.01 ) 44,963 1.36 2,218 0.07 78,155 2.37 belowAdjusted netincome and $ 21,984 $ 0.67 $ 14,015 $ 0.42 $ 40,714 $ 1.24 $ 31,425 $ 0.95 adjusted EPS Reconciliation Three Months Ended Three Months Ended Twelve Months Ended Twelve Months Endedof Adjusted October 31, 2020 October 31, 2019 October 31, 2020 October 31, 2019 EBITDA Reconciliation Reconciliation Reconciliation Reconciliation

Net income(loss) as $ 22,152 $ (30,948 ) $ 38,496 $ (46,730 ) reportedIncome tax 4,906 4,850 11,804 10,776 expenseOther, net (164 ) 345 (280 ) (116 ) Interest 935 2,029 5,245 9,643 expenseDepreciationand 11,378 12,428 47,229 49,586 amortizationEBITDA 39,207 (11,296 ) 102,494 23,159 Reconcilingitems from 145 45,727 2,020 79,504 belowAdjusted $ 39,352 $ 34,431 $ 104,514 $ 102,663 EBITDA Reconciling Three Months Ended Three Months Ended Twelve Months Ended Twelve Months Ended Items October 31, 2020 October 31, 2019 October 31, 2020 October 31, 2019 Income Reconciling Income Reconciling Income Reconciling Income Reconciling Statement Items Statement Items Statement Items Statement ItemsNet sales $ 255,405 $ - $ 240,369 $ - $ 851,573 $ - $ 893,841 $ - Cost of sales 189,164 - 183,128 - 658,750 - 694,420 - Selling,general and 26,889 - 23,826 (1,016 ) (1) 89,707 (1,398 ) (1) 101,292 (4,534 ) (1)administrativeRestructuring 145 (145 ) (2) 89 (89 ) (2) 622 (622 ) (2) 370 (370 ) (2)chargesAssetimpairment - - 44,622 (44,622 ) - - 74,600 (74,600 ) (3)chargesEBITDA 39,207 145 (11,296 ) 45,727 102,494 2,020 23,159 79,504 Depreciationand 11,378 - 12,428 (192 ) 47,229 (968 ) (4) 49,586 (192 ) amortizationOperating 27,829 145 (23,724 ) 45,919 55,265 2,988 (26,427 ) 79,696 income (loss)Interest (935 ) - (2,029 ) - (5,245 ) - (9,643 ) - expenseOther, net 164 (333 ) (5) (345 ) 451 (5) 280 57 (5) 116 384 (5)Income (loss)before income 27,058 (188 ) (26,098 ) 46,370 50,300 3,045 (35,954 ) 80,080 taxesIncome tax (4,906 ) 20 (6) (4,850 ) (1,407 ) (6) (11,804 ) (827 ) (6) (10,776 ) (1,925 ) (6)expenseNet income $ 22,152 $ (168 ) $ (30,948 ) $ 44,963 $ 38,496 $ 2,218 $ (46,730 ) $ 78,155 (loss) Dilutedearnings $ 0.68 $ (0.94 ) $ 1.17 $ (1.42 ) (loss) pershare (1) Transaction and advisory fees, $1.4 million related to executive severancecharges in the twelve months ended 2020, $0.8 million related to the loss onthe sale of a plant in the three and twelve months ended 2019, and $2.3 millionof severance charges related to a reorganization and executive severance in thetwelve months ended 2019.(2) Restructuring charges relate to the closure of manufacturing plantfacilities.(3) Asset impairment charges relate to goodwill impairment in the NorthAmerican Cabinet Components segment.(4) Accelerated depreciation related to the closure of a North American CabinetComponents plant.(5) Foreign currency transaction losses (gains).(6) Impact on a with and without basis.

QUANEX BUILDING PRODUCTS CORPORATIONSELECTED SEGMENT DATA(In thousands)(Unaudited) This table provides gross margin, operating income (loss), EBITDA, and AdjustedEBITDA by reportable segment. Non-operating expense and income tax expense arenot allocated to the reportable segments.

NA EU NA Cabinet Unallocated Total Fenestration Fenestration Components Corp & OtherThree monthsended October 31, 2020Net sales $ 141,983 $ 56,823 $ 57,465 $ (866 ) $ 255,405 Cost of sales 105,323 36,725 47,546 (430 ) 189,164 Gross Margin 36,660 20,098 9,919 (436 ) 66,241 Gross Margin % 25.8 % 35.4 % 17.3 % 25.9 %Selling,general and 12,883 6,739 5,270 1,997 26,889 administrativeRestructuring 67 - 78 - 145 chargesDepreciationand 5,243 2,423 3,593 119 11,378 amortizationOperating 18,467 10,936 978 (2,552 ) 27,829 income (loss)Depreciationand 5,243 2,423 3,593 119 11,378 amortizationEBITDA 23,710 13,359 4,571 (2,433 ) 39,207 Restructuring 67 - 78 - 145 chargesAdjusted $ 23,777 $ 13,359 $ 4,649 $ (2,433 ) $ 39,352 EBITDAAdjustedEBITDA Margin 16.7 % 23.5 % 8.1 % 15.4 %% Three monthsended October 31, 2019Net sales $ 143,183 $ 43,794 $ 54,266 $ (874 ) $ 240,369 Cost of sales 107,316 29,997 46,319 (504 ) 183,128 Gross Margin 35,867 13,797 7,947 (370 ) 57,241 Gross Margin % 25.0 % 31.5 % 14.6 % 23.8 %Selling,general and 13,215 5,532 4,925 154 23,826 administrativeRestructuring 89 - - - 89 chargesDepreciationand 6,846 2,176 3,276 130 12,428 amortizationAssetimpairment - - 44,622 - 44,622 chargesOperating 15,717 6,089 (44,876 ) (654 ) (23,724 )income (loss)Depreciationand 6,846 2,176 3,276 130 12,428 amortizationEBITDA 22,563 8,265 (41,600 ) (524 ) (11,296 )Assetimpairment - - 44,622 - 44,622 chargesLIFO inventoryreserve - - - 250 250 adjustmentTransactionand advisory - - - 766 766 feesRestructuring 89 - - - 89 chargesAdjusted $ 22,652 $ 8,265 $ 3,022 $ 492 $ 34,431 EBITDAAdjustedEBITDA Margin 15.8 % 18.9 % 5.6 % 14.3 %% Twelve monthsended October 31, 2020Net sales $ 483,415 $ 161,054 $ 210,099 $ (2,995 ) $ 851,573 Cost of sales 371,811 108,781 179,804 (1,646 ) 658,750 Gross Margin 111,604 52,273 30,295 (1,349 ) 192,823 Gross Margin % 23.1 % 32.5 % 14.4 % 22.6 %Selling,general and 47,845 22,729 18,738 395 89,707 administrativeRestructuring 295 - 327 - 622 chargesDepreciationand 23,555 9,468 13,732 474 47,229 amortizationOperating 39,909 20,076 (2,502 ) (2,218 ) 55,265 income (loss)Depreciationand 23,555 9,468 13,732 474 47,229 amortizationEBITDA 63,464 29,544 11,230 (1,744 ) 102,494 Transactionand advisory - - - 55 55 feesExecutiveseverance - - - 1,343 1,343 chargesRestructuring 295 - 327 - 622 chargesAdjusted $ 63,759 $ 29,544 $ 11,557 $ (346 ) $ 104,514 EBITDAAdjustedEBITDA Margin 13.2 % 18.3 % 5.5 % 12.3 %% Twelve monthsended October 31, 2019Net sales $ 503,837 $ 164,997 $ 229,644 $ (4,637 ) $ 893,841 Cost of sales 386,194 114,136 197,263 (3,173 ) 694,420 Gross Margin 117,643 50,861 32,381 (1,464 ) 199,421 Gross Margin % 23.3 % 30.8 % 14.1 % 22.3 %Selling,general and 50,454 22,976 18,839 9,023 101,292 administrativeRestructuring 370 - - - 370 chargesDepreciationand 27,054 8,845 13,178 509 49,586 amortizationAssetimpairment - - 74,600 - 74,600 chargesOperating 39,765 19,040 (74,236 ) (10,996 ) (26,427 )income (loss)Depreciationand 27,054 8,845 13,178 509 49,586 amortizationEBITDA 66,819 27,885 (61,058 ) (10,487 ) 23,159 Assetimpairment - - 74,600 - 74,600 chargesTransactionand advisory - - - 1,467 1,467 feesReorganizationand executive - - - 2,301 2,301 severanceLoss on sale - - - 766 766 of plantRestructuring 370 - - - 370 chargesAdjusted $ 67,189 $ 27,885 $ 13,542 $ (5,953 ) $ 102,663 EBITDAAdjustedEBITDA Margin 13.3 % 16.9 % 5.9 % 11.5 %%

QUANEX BUILDING PRODUCTS CORPORATIONSALES ANALYSIS(In thousands)(Unaudited) Three Months Ended Twelve Months Ended October 31, October 31, 2019 October 31, October 31, 2020 2020 2019 NA Fenestration: United States - $ 125,522 $ 127,027 $ 427,616 $ 439,536 fenestrationInternational - 9,301 7,631 28,585 31,106 fenestrationUnited States - 5,500 4,771 19,279 17,061 non-fenestrationInternational - 1,660 3,754 7,935 16,134 non-fenestration $ 141,983 $ 143,183 $ 483,415 $ 503,837 EU Fenestration ^(1):International - $ 46,699 37,599 $ 134,432 139,638 fenestrationInternational - 10,124 6,195 26,622 25,359 non-fenestration $ 56,823 $ 43,794 $ 161,054 $ 164,997 NA Cabinet Components:United States - $ 3,381 $ 3,235 $ 11,842 $ 13,144 fenestrationUnited States - 53,641 50,516 196,479 214,211 non-fenestrationInternational - 443 515 1,778 2,289 non-fenestration $ 57,465 $ 54,266 $ 210,099 $ 229,644 UnallocatedCorporate & Other:Eliminations $ (866 ) $ (874 ) $ (2,995 ) $ (4,637 ) $ (866 ) $ (874 ) $ (2,995 ) $ (4,637 ) Net Sales $ 255,405 $ 240,369 $ 851,573 $ 893,841 (1) Reflects $2.2 million and $0.6 million gains in revenue associated withforeign currency exchange rate impacts for the three and twelve months endedOctober 31, 2020, respectively.