GlobeNewswire Inc | Sep 3, 2020 04:15PM EDT

September 03, 2020

Balance Sheet & Liquidity Remain StrongRepaid $78 Million of Bank DebtOver 50% Increase in Cash Provided by OperationsMargin Expansion Realized in EU Fenestration SegmentManagement Remains Optimistic on Recovery

HOUSTON, Sept. 03, 2020 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation(NYSE:NX) (Quanex or the Company) today announced its results for the three months ended July 31, 2020.

The Company reported the following selected financial results:

Three Months Ended July Nine Months Ended July 31, 31, 2020 2019 2020 2019 Net Sales $212.1 $238.5 $596.2 $653.5 Gross Margin $49.7 $57.1 $126.6 $142.2 Gross Margin % 23.4% 23.9% 21.2% 21.8% Net Income (Loss) $10.8 $11.8 $16.3 ($15.8) Diluted EPS $0.33 $0.36 $0.50 ($0.48) Adjusted Net Income $11.1 $13.7 $18.7 $17.8 Adjusted Diluted EPS $0.34 $0.41 $0.57 $0.54 Adjusted EBITDA $27.7 $32.8 $65.2 $68.2 Adjusted EBITDA 13.1% 13.7% 10.9% 10.4% Margin % Cash Provided by $45.1 $29.9 $47.6 $30.0 Operating ActivitiesFree Cash Flow $40.7 $25.9 $26.9 $13.1 (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, stated, Despite the impact from the COVID-19 pandemic, third quarter results proved better than we expected and exceeded the guidance we provided on our last earnings call. Volumes increased steadily throughout the quarter, especially in Europe, and we remain optimistic on the recovery. We continue to focus on managing working capital and generating cash. As a result, we realized an increase of over 50% in cash provided by operating activities as compared to the same period of 2019. We were also able to repay $78 million of bank debt during the quarter, $50 million of which was drawn as a precautionary measure in response to the pandemic, and our leverage ratio of Net Debt to LTM Adjusted EBITDA improved to a level below where we ended fiscal 2019. We have worked tirelessly over the past several years to make sure we have a flexible capital structure and a strong balance sheet, which has left our Company well positioned to navigate the challenges presented by the COVID-19 pandemic.

Consistent with most companies, we withdrew guidance for fiscal 2020 in March due to the uncertainty surrounding the COVID-19 pandemic. Our results have been negatively impacted by the pandemic; however, we continue to be positively surprised by the pace at which demand for our products has returned. As such, we are now comfortable providing full year 2020 guidance of $832 million to $837 million in net sales and $97 million to $102 million in Adjusted EBITDA*. (See Non-GAAP Terminology Definitions and Disclaimers section for additional information)

*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.

Third Quarter 2020 Results Summary

The decrease in net sales during the third quarter of 2020 was largely attributable to softer demand related to the COVID-19 pandemic. The Companys two manufacturing facilities in the UK were shut down in compliance with government orders on March 25, 2020, 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 exceeded prior year on a consolidated basis. (See Sales Analysis table for additional information)

The decrease in reported earnings was primarily due to reduced operating leverage as a result of softer volumes related to the pandemic.

Balance Sheet & Liquidity Update

As of July 31, 2020, the Companys leverage ratio of Net Debt to LTM Adjusted EBITDA improved to 1.1x. Quanex expects to exit fiscal 2020 with a leverage ratio of Net Debt to LTM Adjusted EBITDA at or below 1.0x. (See Non-GAAP Terminology Definitions and Disclaimers section for additional information)

The Companys liquidity increased to $223.2 million as of July 31, 2020, consisting of $41.1 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 did not repurchase any shares of common stock during the three months ended July 31, 2020. As of July 31, 2020, approximately $11.7 million remained under the existing share repurchase authorization.

Recent Events

Quanexs Board of Directors declared a quarterly cash dividend of $0.08 per share on the Companys common stock, payable September 30, 2020, to shareholders of record on September 16, 2020.

Conference Call and Webcast Information

The Company has scheduled a conference call for Friday, September 4, 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 6194308, 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 September 11, 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 6194308.

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 INCOME (LOSS)(In thousands, except per share data)(Unaudited)

Three Months Ended July 31, Nine Months Ended July 31, 2020 2019 2020 2019 Net sales $ 212,096 $ 238,461 $ 596,168 $ 653,472 Cost of sales 162,427 181,357 469,586 511,292 Selling,general and 21,973 25,718 62,818 77,466 administrativeRestructuring 73 94 477 281 chargesDepreciationand 11,060 12,182 35,851 37,158 amortizationAssetimpairment - - - 29,978 chargesOperating 16,563 19,110 27,436 (2,703 )income (loss)Interest (1,165 ) (2,570 ) (4,310 ) (7,614 )expenseOther, net (220 ) 259 116 461 Income (loss)before income 15,178 16,799 23,242 (9,856 )taxesIncome tax (4,345 ) (4,958 ) (6,898 ) (5,926 )expenseNet income $ 10,833 $ 11,841 $ 16,344 $ (15,782 )(loss) Earnings(loss) per $ 0.33 $ 0.36 $ 0.50 $ (0.48 )common share,basicEarnings(loss) per $ 0.33 $ 0.36 $ 0.50 $ (0.48 )common share,diluted Weightedaverage common sharesoutstanding:Basic 32,610 32,899 32,716 32,984 Diluted 32,739 33,162 32,845 32,984 Cash dividends $ 0.08 $ 0.08 $ 0.24 $ 0.24 per share

QUANEX BUILDING PRODUCTS CORPORATIONCONDENSED CONSOLIDATED BALANCE SHEETS(In thousands)(Unaudited)

July 31, 2020 October 31, 2019ASSETS Current assets: Cash and cash equivalents $ 41,073 $ 30,868 Accounts receivable, net 84,479 82,946 Inventories, net 63,939 67,159 Prepaid and other current assets 7,930 9,353 Total current assets 197,421 190,326 Property, plant and equipment, net 186,830 193,600 Operating lease right-of-use assets 49,644 - Goodwill 146,932 145,563 Intangible assets, net 96,957 107,297 Other assets 9,007 8,324 Total assets $ 686,791 $ 645,110 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 58,676 $ 63,604 Accrued liabilities 33,916 39,221 Income taxes payable 6,350 6,183 Current maturities of long-term debt 690 746 Current operating lease liabilities 7,307 - Total current liabilities 106,939 109,754 Long-term debt 152,062 156,414 Noncurrent operating lease liabilities 42,740 - Deferred pension and postretirement benefits 11,375 13,322 Deferred income taxes 20,507 19,363 Other liabilities 13,230 16,070 Total liabilities 346,853 314,923 Stockholders? equity: Common stock 373 374 Additional paid-in-capital 253,144 254,673 Retained earnings 193,989 185,703 Accumulated other comprehensive loss (28,819 ) (33,817 )Treasury stock at cost (78,749 ) (76,746 )Total stockholders? equity 339,938 330,187 Total liabilities and stockholders' equity $ 686,791 $ 645,110

QUANEX BUILDING PRODUCTS CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW(In thousands)(Unaudited)

Nine Months Ended July 31, 2020 2019 Operating activities: Net income (loss) $ 16,344 $ (15,782 )Adjustments to reconcile net income (loss) to cash provided by operating activities:Depreciation and amortization 35,851 37,158 Stock-based compensation 513 1,424 Deferred income tax 438 1,930 Asset impairment charge - 29,978 Other, net 762 1,724 Changes in assets and liabilities: (Increase) decrease in accounts receivable (1,852 ) 323 Decrease (increase) in inventory 3,553 (14,747 )Decrease (increase) in other current assets 1,218 (1,022 )(Decrease) increase in accounts payable (1,878 ) 1,562 Decrease in accrued liabilities (7,611 ) (15,366 )Increase in income taxes payable 107 396 Increase in deferred pension and postretirement 573 2,351 benefitsDecrease in other long-term liabilities (181 ) (143 )Other, net (276 ) 250 Cash provided by operating activities 47,561 30,036 Investing activities: Capital expenditures (20,673 ) (16,984 )Proceeds from disposition of capital assets 131 315 Cash used for investing activities (20,542 ) (16,669 )Financing activities: Borrowings under credit facilities 114,500 66,500 Repayments of credit facility borrowings (119,000 ) (84,000 )Repayments of other long-term debt (791 ) (1,102 )Common stock dividends paid (7,910 ) (7,990 )Issuance of common stock 2,954 2,710 Payroll tax paid to settle shares forfeited (454 ) (330 )upon vesting of stockPurchase of treasury stock (6,693 ) (6,336 )Cash used for financing activities (17,394 ) (30,548 )Effect of exchange rate changes on cash and 580 (1,171 )cash equivalentsIncrease (decrease) in cash and cash 10,205 (18,352 )equivalentsCash and cash equivalents at beginning of 30,868 29,003 periodCash and cash equivalents at end of period $ 41,073 $ 10,651

QUANEX BUILDING PRODUCTS CORPORATIONFREE CASH FLOW RECONCILIATION(In thousands)(Unaudited)

The following table reconciles the Company's calculation of Free Cash Flow, a non-GAAP measure, to its most directly comparable GAAP measure. The Company defines Free Cash Flow as cash provided by operating activities less capital expenditures.

Three Months Ended July 31, Nine Months Ended July 31, 2020 2019 2020 2019 Cash providedby operating $45,089 $29,893 $47,561 $30,036 activitiesCapital (4,360 ) (3,962 ) (20,673 ) (16,984 )expendituresFree Cash $40,729 $25,931 $26,888 $13,052 Flow

QUANEX BUILDING PRODUCTS CORPORATIONNON-GAAP FINANCIAL MEASURE DISCLOSURE(In thousands, except per share data)(Unaudited)

Reconciliation Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended of Adjusted NetIncome and July 31, 2020 July 31, 2019 July 31, 2020 July 31, 2019 Adjusted EPS Net Income Diluted EPS Net Income Diluted EPS Net Income Diluted EPS Net (Loss) Diluted EPS IncomeNet income(loss) as $ 10,833 $ 0.33 $ 11,841 $ 0.36 $ 16,344 $ 0.50 $ (15,782 ) $ (0.48 ) reportedReconciling 280 0.01 1,809 0.05 2,387 0.07 33,595 1.02 items from belowAdjusted netincome and $ 11,113 $ 0.34 $ 13,650 $ 0.41 $ 18,731 $ 0.57 $ 17,813 $ 0.54 adjusted EPS Reconciliation Three Months Ended Three Months Ended Nine Months Ended Nine Months Endedof Adjusted July 31, 2020 July 31, 2019 July 31, 2020 July 31, 2019 EBITDA Reconciliation Reconciliation Reconciliation Reconciliation Net income(loss) as $ 10,833 $ 11,841 $ 16,344 $ (15,782 ) reportedIncome tax 4,345 4,958 6,898 5,926 expenseOther, net 220 (259 ) (116 ) (461 ) Interest expense 1,165 2,570 4,310 7,614 Depreciation and 11,060 12,182 35,851 37,158 amortizationEBITDA 27,623 31,292 63,287 34,455 Reconciling 73 1,495 1,875 33,777 items from belowAdjusted EBITDA $ 27,696 $ 32,787 $ 65,162 $ 68,232 Reconciling Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended Items July 31, 2020 July 31, 2019 July 31, 2020 July 31, 2019 Income Reconciling Income Reconciling Income Reconciling Income Reconciling Statement Items Statement Items Statement Items Statement ItemsNet sales $ 212,096 $ - $ 238,461 $ - $ 596,168 $ - $ 653,472 $ - Cost of sales 162,427 - 181,357 - 469,586 - 511,292 - Selling, generaland 21,973 - 25,718 (1,401 ) (1) 62,818 (1,398 ) (1) 77,466 (3,518 ) (1)administrativeRestructuring 73 (73 ) (2) 94 (94 ) (2) 477 (477 ) (2) 281 (281 ) (2)chargesAsset impairment - - - - - - 29,978 (29,978 ) (3)chargesEBITDA 27,623 73 31,292 1,495 63,287 1,875 34,455 33,777 Depreciation and 11,060 - 12,182 - 35,851 (968 ) (4) 37,158 - amortizationOperating income 16,563 73 19,110 1,495 27,436 2,843 (2,703 ) 33,777 (loss)Interest expense (1,165 ) - (2,570 ) - (4,310 ) - (7,614 ) - Other, net (220 ) 458 (5) 259 (112 ) (5) 116 390 (5) 461 (67 ) (5)Income (loss)before income 15,178 531 16,799 1,383 23,242 3,233 (9,856 ) 33,710 taxesIncome tax (4,345 ) (251 ) (6) (4,958 ) 426 (6) (6,898 ) (846 ) (6) (5,926 ) (115 ) (6)expenseNet income $ 10,833 $ 280 $ 11,841 $ 1,809 $ 16,344 $ 2,387 $ (15,782 ) $ 33,595 (loss) Diluted earnings $ 0.33 $ 0.36 $ 0.50 $ (0.48 ) (loss) per share (1) Transaction and advisory fees, $1.3 million related to executive severancecharges in the nine months ended 2020, $1.2 million of executive severance charges in the three and nine months ended 2019, and $1.2 million of severancecharges related to a reorganization in the nine months ended 2019.(2) Restructuring charges relate to the closure of manufacturing plant facilities.(3) Asset impairment charges relate to goodwill impairment in the North American Cabinet Components segment.(4) Accelerated depreciation related to the closure of a North American Cabinet Components 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 July 31, 2020Net sales $ 122,386 $ 38,265 $ 51,925 $ (480 ) $ 212,096 Cost of sales 92,639 25,845 44,218 (275 ) 162,427 Gross Margin 29,747 12,420 7,707 (205 ) 49,669 Gross Margin % 24.3 % 32.5 % 14.8 % 23.4 %Selling,general and 11,922 4,748 4,634 669 21,973 administrativeRestructuring 71 - 2 - 73 chargesDepreciationand 5,371 2,307 3,264 118 11,060 amortizationOperating 12,383 5,365 (193 ) (992 ) 16,563 income (loss)Depreciationand 5,371 2,307 3,264 118 11,060 amortizationEBITDA 17,754 7,672 3,071 (874 ) 27,623 Restructuring 71 - 2 - 73 chargesAdjusted $ 17,825 $ 7,672 $ 3,073 $ (874 ) $ 27,696 EBITDAAdjustedEBITDA Margin 14.6 % 20.0 % 5.9 % 13.1 %% Three monthsended July 31, 2019Net sales $ 136,259 $ 44,326 $ 58,689 $ (813 ) $ 238,461 Cost of sales 101,693 30,708 49,389 (433 ) 181,357 Gross Margin 34,566 13,618 9,300 (380 ) 57,104 Gross Margin % 25.4 % 30.7 % 15.8 % 23.9 %Selling,general and 11,950 6,038 4,484 3,246 25,718 administrativeRestructuring 94 - - - 94 chargesDepreciationand 6,578 2,213 3,258 133 12,182 amortizationOperating 15,944 5,367 1,558 (3,759 ) 19,110 income (loss)Depreciationand 6,578 2,213 3,258 133 12,182 amortizationEBITDA 22,522 7,580 4,816 (3,626 ) 31,292 Transactionand advisory - - - 250 250 feesSeverance - - - 1,151 1,151 chargesRestructuring 94 - - - 94 chargesAdjusted $ 22,616 $ 7,580 $ 4,816 $ (2,225 ) $ 32,787 EBITDAAdjustedEBITDA Margin 16.6 % 17.1 % 8.2 % 13.7 %% Nine monthsended July 31, 2020Net sales $ 341,432 $ 104,230 $ 152,634 $ (2,128 ) $ 596,168 Cost of sales 266,489 72,055 132,259 (1,217 ) 469,586 Gross Margin 74,943 32,175 20,375 (911 ) 126,582 Gross Margin % 21.9 % 30.9 % 13.3 % 21.2 %Selling,general and 34,962 15,990 13,468 (1,602 ) 62,818 administrativeRestructuring 228 - 249 - 477 chargesDepreciationand 18,311 7,045 10,139 356 35,851 amortizationOperating 21,442 9,140 (3,481 ) 335 27,436 income (loss)Depreciationand 18,311 7,045 10,139 356 35,851 amortizationEBITDA 39,753 16,185 6,658 691 63,287 Transactionand advisory - - - 55 55 feesExecutiveseverance - - - 1,343 1,343 chargesRestructuring 228 - 249 - 477 chargesAdjusted $ 39,981 $ 16,185 $ 6,907 $ 2,089 $ 65,162 EBITDAAdjustedEBITDA Margin 11.7 % 15.5 % 4.5 % 10.9 %% Nine monthsended July 31, 2019Net sales $ 360,654 $ 121,203 $ 175,377 $ (3,762 ) $ 653,472 Cost of sales 278,877 84,139 150,944 (2,668 ) 511,292 Gross Margin 81,777 37,064 24,433 (1,094 ) 142,180 Gross Margin % 22.7 % 30.6 % 13.9 % 21.8 %Selling,general and 37,240 17,444 13,914 8,868 77,466 administrativeRestructuring 281 - - - 281 chargesDepreciationand 20,208 6,669 9,902 379 37,158 amortizationAssetimpairment - - 29,978 - 29,978 chargesOperating 24,048 12,951 (29,361 ) (10,341 ) (2,703 )income (loss)Depreciationand 20,208 6,669 9,902 379 37,158 amortizationEBITDA 44,256 19,620 (19,459 ) (9,962 ) 34,455 Assetimpairment - - 29,978 - 29,978 chargesTransactionand advisory - - - 1,217 1,217 feesSeverancerelated to - - - 2,301 2,301 reorganizationRestructuring 281 - - - 281 chargesAdjusted $ 44,537 $ 19,620 $ 10,519 $ (6,444 ) $ 68,232 EBITDAAdjustedEBITDA Margin 12.3 % 16.2 % 6.0 % 10.4 %%

QUANEX BUILDING PRODUCTS CORPORATIONSALES ANALYSIS(In thousands)(Unaudited)

Three Months Ended Nine Months Ended July 31, 2020 July 31, 2019 July 31, 2020 July 31, 2019 NA Fenestration: United States - $ 109,455 $ 119,481 $ 302,094 $ 312,509 fenestration International - 6,696 7,172 19,284 23,474 fenestration United States - 4,845 3,982 13,779 12,290 non-fenestration International - 1,390 5,624 6,275 12,381 non-fenestration $ 122,386 $ 136,259 $ 341,432 $ 360,654 EU Fenestration ^ (1): International - $ 31,904 $ 36,342 $ 87,732 $ 102,038 fenestration International - 6,361 7,984 16,498 19,165 non-fenestration $ 38,265 $ 44,326 $ 104,230 $ 121,203 NA Cabinet Components: United States - $ 2,666 $ 3,561 $ 8,461 $ 9,909 fenestration United States - 48,849 54,512 142,838 163,694 non-fenestration International - 410 616 1,335 1,774 non-fenestration $ 51,925 $ 58,689 $ 152,634 $ 175,377 Unallocated Corporate & Other: Eliminations $ (480 ) $ (813 ) $ (2,128 ) $ (3,762 ) $ (480 ) $ (813 ) $ (2,128 ) $ (3,762 ) Net Sales $ 212,096 $ 238,461 $ 596,168 $ 653,472 (1) Reflects reduction of $0.4 million and $1.6 million in revenue associatedwith foreign currency exchange rate impacts for the three and nine months endedJuly 31, 2020, respectively.