GlobeNewswire Inc | Jun 3, 2021 04:15PM EDT

June 03, 2021

Robust Revenue Growth Realized Across All Operating SegmentsSignificant Margin Expansion in NA and EU Fenestration SegmentsStrong Balance SheetRepaid $25 Million of Bank DebtPositive Outlook Remains Intact

HOUSTON, June 03, 2021 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation (NYSE:NX) (Quanex or the Company) today announced its results for the three months ended April 30, 2021.

The Company reported the following selected financial results:

Three Months Ended April Six Months Ended April 30, 30,($ inmillions, 2021 2020 2021 2020 except pershare data)Net Sales $270.4 $187.5 $500.5 $384.1 Gross Margin $61.9 $37.7 $115.6 $76.9 Gross Margin 22.9% 20.1% 23.1% 20.0% %Net Income $14.5 $5.5 $22.4 $5.5 Diluted EPS $0.43 $0.17 $0.67 $0.17 Adjusted Net $14.6 $6.4 $23.6 $7.6 IncomeAdjusted $0.43 $0.19 $0.70 $0.23 Diluted EPSAdjusted $32.2 $21.8 $56.6 $37.5 EBITDAAdjustedEBITDA Margin 11.9% 11.6% 11.3% 9.8% % Cash Providedby Operating $32.4 $6.1 $29.0 $2.5 ActivitiesFree Cash $27.8 ($0.9) $19.2 ($13.8) Flow

(See Non-GAAP Terminology Definitions and Disclaimers section, Non-GAAP Financial Measure Disclosure table Selected Segment Data table and Free Cash Flow Reconciliation table for additional information)

George Wilson, President and Chief Executive Officer, commented, Demand for our products remained high throughout the second quarter of 2021 and as a result we posted another very solid quarter. On a consolidated basis, net sales increased by 44.2% and Adjusted EBITDA margin improved by approximately 30 basis points year-over-year as compared to the second quarter of 2020. Our balance sheet is strong, and we were able to repay $25.0 million in bank debt during the quarter while also repurchasing approximately $2.0 million of our common stock. We will continue to focus on generating cash and paying down debt. Despite inflationary headwinds and labor challenges, we remain optimistic on the global economic outlook and overall trends within the residential housing industry. Our business is performing well, and we are confident in our ability to continue creating value for shareholders. (See Non-GAAP Terminology Definitions and Disclaimers section for additional information)

Second Quarter 2021 Results Summary

The robust net sales growth during the three months ended April 30, 2021 was mainly the result of increased demand for the Companys products across all product lines and operating segments coupled with increased pricing mostly related to raw material cost inflation. More specifically, Quanex posted net sales growth of 34.6% in its North American Fenestration segment, 25.5% in its North American Cabinet Components segment and 92.1% in its European Fenestration segment, excluding the foreign exchange impact. As a reminder, both of the Companys manufacturing facilities in the U.K. were shut down in late March of 2020 and did not resume operations until mid-to-late May last year. (See Sales Analysis table for additional information)

The increase in earnings for the second quarter of 2021 was mostly due to higher volumes and improved operating leverage. The increase in earnings was somewhat offset by inflationary pressures and an increase in selling, general and administrative expenses, which was largely attributable to more normalized medical costs combined with an increase in stock-based compensation expense that resulted from the shareholder value created by the further appreciation of Quanexs stock price during the period.

Balance Sheet & Liquidity Update

As of April 30, 2021, Quanex had total debt of $88.7 million and its leverage ratio of Net Debt to LTM Adjusted EBITDA improved to 0.3x. (See Non-GAAP Terminology Definitions and Disclaimers section and Net Debt and LTM Adjusted EBITDA reconciliation tables for additional information)

The Companys liquidity increased to $296.8 million as of April 30, 2021, consisting of $49.3 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 80,556 shares of common stock for approximately $2.0 million at an average price of $25.33 per share during the three months ended April 30, 2021. As of April 30, 2021, approximately $7.2 million remained under the existing share repurchase authorization.

Outlook

George Wilson, President and Chief Executive Officer, stated, Our outlook for the balance of the year remains positive and we continue to be optimistic about the economic recovery. We do anticipate ongoing inflationary pressure and challenges with our supply chain and labor. However, based on our strong first half results, ongoing conversations with our customers and the latest macroeconomic indicators for the residential housing industry, we are again raising our expectations for the year. We now expect approximately 20% sales growth in our North American Fenestration segment, approximately 15% sales growth in our North American Cabinet Components segment, and approximately 40% sales growth in our European Fenestration segment. In summary, on a consolidated basis, we now believe we can achieve net sales of approximately $1.04 billion to $1.06 billion, which we expect will generate approximately $125 million to $130 million in Adjusted EBITDA* in fiscal 2021.

*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, June 4, 2021, 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 3483342, 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 June 11, 2021. To access the replay dial (855) 859-2056 for domestic callers and (404) 537-3406 for international callers, in both cases referencing conference passcode 3483342.

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 (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. Net Debt is defined as total debt (outstanding balance on the revolving credit facility plus financial lease obligations) less cash and cash equivalents. 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, 2020, 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(In thousands, except per share data)(Unaudited)

Three Months Ended April 30, Six Months Ended April 30, 2021 2020 2021 2020 Net sales $ 270,357 $ 187,475 $ 500,504 $ 384,072 Cost of sales 208,460 149,732 384,857 307,159 Selling,general and 29,672 16,713 60,533 40,845 administrativeRestructuring - 251 39 404 chargesDepreciationand 10,845 11,886 21,860 24,791 amortizationOperating 21,380 8,893 33,215 10,873 incomeInterest (640 ) (1,563 ) (1,391 ) (3,145 ) expenseOther, net 265 300 457 336 Income before 21,005 7,630 32,281 8,064 income taxesIncome tax (6,454 ) (2,129 ) (9,878 ) (2,553 ) expenseNet income $ 14,551 $ 5,501 $ 22,403 $ 5,511 Earnings percommon share, $ 0.44 $ 0.17 $ 0.68 $ 0.17 basicEarnings percommon share, $ 0.43 $ 0.17 $ 0.67 $ 0.17 diluted Weightedaverage common sharesoutstanding:Basic 33,355 32,676 33,110 32,770 Diluted 33,637 32,793 33,444 32,907 Cash dividends $ 0.08 $ 0.08 $ 0.16 $ 0.16 per share

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

April 30, 2021 October 31, 2020ASSETS Current assets: Cash and cash equivalents $ 49,258 $ 51,621 Accounts receivable, net 96,521 88,287 Inventories, net 80,365 61,181 Prepaid and other current assets 8,361 6,217 Total current assets 234,505 207,306 Property, plant and equipment, net 178,466 184,104 Operating lease right-of-use assets 56,424 51,824 Goodwill 150,302 146,154 Intangible assets, net 88,850 93,068 Other assets 7,025 9,129 Total assets $ 715,572 $ 691,585 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 83,081 $ 77,335 Accrued liabilities 41,207 38,289 Income taxes payable 2,463 6,465 Current maturities of long-term debt 745 692 Current operating lease liabilities 8,226 7,459 Total current liabilities 135,722 130,240 Long-term debt 87,195 116,728 Noncurrent operating lease liabilities 48,989 44,873 Deferred pension and postretirement benefits 10,819 10,923 Deferred income taxes 22,078 19,116 Other liabilities 15,672 13,946 Total liabilities 320,475 335,826 Stockholders? equity: Common stock 373 373 Additional paid-in-capital 253,147 253,458 Retained earnings 230,590 213,517 Accumulated other comprehensive loss (23,392 ) (33,024 )Treasury stock at cost (65,621 ) (78,565 )Total stockholders? equity 395,097 355,759 Total liabilities and stockholders' equity $ 715,572 $ 691,585

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

Six Months Ended April 30, 2021 2020 Operating activities: Net income $ 22,403 $ 5,511 Adjustments to reconcile net income to cash provided by operating activities:Depreciation and amortization 21,860 24,791 Stock-based compensation 970 86 Deferred income tax 2,339 1,194 Other, net 5,049 463 Changes in assets and liabilities: (Increase) decrease in accounts receivable (6,726 ) 14,682 Increase in inventory (18,265 ) (8,363 )Increase in other current assets (2,013 ) (559 )Increase (decrease) in accounts payable 5,584 (16,807 )Increase (decrease) in accrued liabilities 994 (13,673 )Decrease in income taxes payable (4,071 ) (4,052 )(Decrease) increase in deferred pension and (104 ) 562 postretirement benefitsIncrease (decrease) in other long-term 642 (787 )liabilitiesOther, net 298 (576 )Cash provided by operating activities 28,960 2,472 Investing activities: Capital expenditures (9,799 ) (16,313 )Proceeds from disposition of capital assets 1,665 33 Cash used for investing activities (8,134 ) (16,280 )Financing activities: Borrowings under credit facilities - 114,500 Repayments of credit facility borrowings (30,000 ) (41,000 )Repayments of other long-term debt (605 ) (505 )Common stock dividends paid (5,330 ) (5,287 )Issuance of common stock 16,123 2,954 Payroll tax paid to settle shares forfeited upon (492 ) (454 )vesting of stockPurchase of treasury stock (3,968 ) (6,693 )Cash (used for) provided by financing activities (24,272 ) 63,515 Effect of exchange rate changes on cash and cash 1,083 (323 )equivalents(Decrease) increase in cash and cash equivalents (2,363 ) 49,384 Cash and cash equivalents at beginning of period 51,621 30,868 Cash and cash equivalents at end of period $ 49,258 $ 80,252

QUANEX BUILDING PRODUCTS CORPORATIONFREE CASH FLOW AND NET DEBT RECONCILIATIONS(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 lesscapital expenditures. Three Months Ended Six Months Ended April 30, April 30, 2021 2020 2021 2020 Cash provided by operating 32,355 $6,129 28,960 $2,472 activitiesCapital expenditures (4,553) (7,001) (9,799) (16,313) Free Cash Flow $27,802 ($872) $19,161 ($13,841) The following table reconciles the Company's Net Debt which is defined astotal debt principal of the Company plus finance lease obligations minus cash. As of April 30, 2021 2020 Revolving Credit Facility $73,000 $216,000 Finance Lease Obligations 15,689 15,416 Total Debt ^(1) 88,689 231,416 Less: Cash and cash 49,258 80,252 equivalentsNet Debt $39,431 $151,164 (1) Excludes outstanding letters of credit.

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

Reconciliation Three Months Ended Three Months Ended Six Months Ended Six Months Ended of AdjustedNet Income and April 30, 2021 April 30, 2020 April 30, 2021 April 30, 2020 Adjusted EPS Net Income Diluted EPS Net Income Diluted EPS Net Income Diluted EPS Net Loss Diluted EPS Net income as $ 14,551 $ 0.43 $ 5,501 $ 0.17 $ 22,403 $ 0.67 $ 5,511 $ 0.17 reportedReconcilingitems from 3 0.00 890 0.02 1,174 0.03 2,106 0.06 belowAdjusted netincome and $ 14,554 $ 0.43 $ 6,391 $ 0.19 $ 23,577 $ 0.70 $ 7,617 $ 0.23 adjusted EPS Reconciliation Three Months Ended Three Months Ended Six Months Ended Six Months Endedof Adjusted April 30, 2021 April 30, 2020 April 30, 2021 April 30, 2020 EBITDA Reconciliation Reconciliation Reconciliation Reconciliation Net income as $ 14,551 $ 5,501 $ 22,403 $ 5,511 reportedIncome tax 6,454 2,129 9,878 2,553 expenseOther, net (265) (300) (457) (336) Interest 640 1,563 1,391 3,145 expenseDepreciationand 10,845 11,886 21,860 24,791 amortizationEBITDA 32,225 20,779 55,075 35,664 Reconcilingitems from - 1,031 1,478 1,802 belowAdjusted $ 32,225 $ 21,810 $ 56,553 $ 37,466 EBITDA Reconciling Three Months Ended Three Months Ended Six Months Ended Six Months Ended Items April 30, 2021 April 30, 2020 April 30, 2021 April 30, 2020 Income Reconciling Income Reconciling Income Reconciling Income Reconciling Statement Items Statement Items Statement Items Statement ItemsNet sales $ 270,357 $ - $ 187,475 $ - $ 500,504 $ - $ 384,072 $ - Cost of sales 208,460 - 149,732 - 384,857 - 307,159 - Selling,general and 29,672 - 16,713 (780) (1) 60,533 (1,439) 40,845 (1,398) (1)administrativeRestructuring - - 251 (251) (2) 39 (39) (2) 404 (404) (2)chargesEBITDA 32,225 - 20,779 1,031 55,075 1,478 35,664 1,802 Depreciationand 10,845 - 11,886 (237) (3) 21,860 - 24,791 (968) (3)amortizationOperating 21,380 - 8,893 1,268 33,215 1,478 10,873 2,770 incomeInterest (640) - (1,563) - (1,391) - (3,145) - expenseOther, net 265 4 (4) 300 (128) (4) 457 82 (4) 336 (68) (4)Income before 21,005 4 7,630 1,140 32,281 1,560 8,064 2,702 income taxesIncome tax (6,454) (1) (5) (2,129) (250) (5) (9,878) (386) (5) (2,553) (596) (5)expenseNet income $ 14,551 $ 3 $ 5,501 $ 890 $ 22,403 $ 1,174 $ 5,511 $ 2,106 Dilutedearnings per $ 0.43 $ 0.17 $ 0.67 $ 0.17 share (1) Transaction and advisory fees, $1.4 million related to the loss on a saleof a plant in the six months ended April 30, 2021, $0.8 million and $1.3million related to executive severance charges in the three and six monthsended April 30, 2020, respectively.(2) Restructuring charges related to the closure of manufacturing plant facilities.(3) Accelerated depreciation related to the closure of a North American Cabinet Components plant.(4) Foreign currency transaction (losses) gains. (5) Impact on a with and without basis.

QUANEX BUILDING PRODUCTS CORPORATIONNON-GAAP FINANCIAL MEASURE DISCLOSURE(In thousands)(Unaudited)

Reconciliationof Last Twelve Three Months Three Months Three Months Three MonthsMonths Ended April Ended January Ended October Ended July 31, TotalAdjusted 30, 2021 31, 2021 31, 2020 2020EBITDA Reconciliation Reconciliation Reconciliation Reconciliation ReconciliationNet income as $ 14,551 $ 7,852 $ 22,152 $ 10,833 $ 55,388 reportedIncome tax 6,454 3,424 4,906 4,345 19,129 expenseOther, net (265 ) (192 ) (164 ) 220 (401 )Interest 640 751 935 1,165 3,491 expenseDepreciationand 10,845 11,015 11,378 11,060 44,298 amortizationEBITDA 32,225 22,850 39,207 27,623 121,905 Selling,general and - 1,439 - - 1,439 administrative^(1)Restructuring - 39 145 73 257 charges ^(2)Adjusted $ 32,225 $ 24,328 $ 39,352 $ 27,696 $ 123,601 EBITDA (1) Transaction and advisory fees, loss on the sale of a plant, and executiveseverance charges.(2) Restructuring charges relate to the closure of manufacturing plantfacilities.

QUANEX BUILDING PRODUCTS CORPORATIONSELECTED SEGMENT DATA(In thousands)(Unaudited)

This table provides gross margin, operating (loss) income, 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 April 30, 2021Net sales $ 146,143 $ 61,657 $ 63,562 $ (1,005 ) $ 270,357 Cost of sales 112,368 41,361 55,162 (431 ) 208,460 Gross Margin 33,775 20,296 8,400 (574 ) 61,897 Gross Margin % 23.1 % 32.9 % 13.2 % 22.9 %Selling,general and 13,146 7,439 5,379 3,708 29,672 administrativeDepreciationand 4,846 2,607 3,305 87 10,845 amortizationOperating 15,783 10,250 (284 ) (4,369 ) 21,380 income (loss)Depreciationand 4,846 2,607 3,305 87 10,845 amortizationEBITDA 20,629 12,857 3,021 (4,282 ) 32,225 Adjusted $ 20,629 $ 12,857 $ 3,021 $ (4,282 ) $ 32,225 EBITDAAdjustedEBITDA Margin 14.1 % 20.9 % 4.8 % 11.9 %% Three monthsended April 30, 2020Net sales $ 108,593 $ 29,200 $ 50,664 $ (982 ) $ 187,475 Cost of sales 85,153 20,966 44,198 (585 ) 149,732 Gross Margin 23,440 8,234 6,466 (397 ) 37,743 Gross Margin % 21.6 % 28.2 % 12.8 % 20.1 %Selling,general and 9,985 5,292 3,981 (2,545 ) 16,713 administrativeRestructuring 66 - 185 - 251 chargesDepreciationand 5,961 2,330 3,474 121 11,886 amortizationOperating 7,428 612 (1,174 ) 2,027 8,893 income (loss)Depreciationand 5,961 2,330 3,474 121 11,886 amortizationEBITDA 13,389 2,942 2,300 2,148 20,779 Executiveseverance - - - 780 780 chargesRestructuring 66 - 185 - 251 chargesAdjusted $ 13,455 $ 2,942 $ 2,485 $ 2,928 $ 21,810 EBITDAAdjustedEBITDA Margin 12.4 % 10.1 % 4.9 % 11.6 %% Six monthsended April 30, 2021Net sales $ 274,259 $ 110,748 $ 117,556 $ (2,059 ) $ 500,504 Cost of sales 211,761 73,152 101,036 (1,092 ) 384,857 Gross Margin 62,498 37,596 16,520 (967 ) 115,647 Gross Margin % 22.8 % 33.9 % 14.1 % 23.1 %Selling,general and 25,516 14,034 10,242 10,741 60,533 administrativeRestructuring 39 - - - 39 chargesDepreciationand 9,957 5,125 6,575 203 21,860 amortizationOperating 26,986 18,437 (297 ) (11,911 ) 33,215 income (loss)Depreciationand 9,957 5,125 6,575 203 21,860 amortizationEBITDA 36,943 23,562 6,278 (11,708 ) 55,075 Loss on sale - - - 1,439 1,439 of plantRestructuring 39 - - - 39 chargesAdjusted $ 36,982 $ 23,562 $ 6,278 $ (10,269 ) $ 56,553 EBITDAAdjustedEBITDA Margin 13.5 % 21.3 % 5.3 % 11.3 %% Six monthsended April 30, 2020Net sales $ 219,045 $ 65,966 $ 100,708 $ (1,647 ) $ 384,072 Cost of sales 173,850 46,210 88,040 (941 ) 307,159 Gross Margin 45,195 19,756 12,668 (706 ) 76,913 Gross Margin % 20.6 % 29.9 % 12.6 % 20.0 %Selling,general and 23,040 11,242 8,834 (2,271 ) 40,845 administrativeRestructuring 157 - 247 - 404 chargesDepreciationand 12,940 4,738 6,875 238 24,791 amortizationOperating 9,058 3,776 (3,288 ) 1,327 10,873 income (loss)Depreciationand 12,940 4,738 6,875 238 24,791 amortizationEBITDA 21,998 8,514 3,587 1,565 35,664 Transactionand advisory - - - 55 55 feesExecutiveseverance - - - 1,343 1,343 chargesRestructuring 157 - 247 - 404 chargesAdjusted $ 22,155 $ 8,514 $ 3,834 $ 2,963 $ 37,466 EBITDAAdjustedEBITDA Margin 10.1 % 12.9 % 3.8 % 9.8 %%

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

Three Months Ended Six Months Ended April 30, April 30, April 30, April 30, 2021 2020 2021 2020 NA Fenestration: United States - $ 128,218 $ 95,791 $ 240,518 $ 192,638 fenestration International - 8,397 6,153 16,175 12,587 fenestration United States - 6,293 4,372 11,690 8,935 non-fenestration International - 3,235 2,277 5,876 4,885 non-fenestration $ 146,143 $ 108,593 $ 274,259 $ 219,045 EU Fenestration ^ (1): International - $ 50,835 $ 24,865 $ 92,189 $ 55,829 fenestration International - 10,822 4,335 18,559 10,137 non-fenestration $ 61,657 $ 29,200 $ 110,748 $ 65,966 NA Cabinet Components: United States - $ 3,497 $ 2,647 $ 6,471 $ 5,795 fenestration United States - 60,388 47,540 110,890 93,989 non-fenestration International - (323 ) 477 195 924 non-fenestration $ 63,562 $ 50,664 $ 117,556 $ 100,708 Unallocated Corporate & Other: Eliminations $ (1,005 ) $ (982 ) $ (2,059 ) $ (1,647 ) $ (1,005 ) $ (982 ) $ (2,059 ) $ (1,647 ) Net Sales $ 270,357 $ 187,475 $ 500,504 $ 384,072 (1) Reflects increase of $2.9 million and $4.8 million in revenue associatedwith foreign currency exchange rate impacts for the three and six months endedApril 30, 2021, respectively.