Robust Revenue Growth of ~16% Year-Over-Year

Margin Expansion Realized in NAF and NACC

Significant Increase in Earnings

Repaid $25 Million in Bank Debt

Balance Sheet & Liquidity Remain Strong

HOUSTON, Sept. 01, 2022 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation (NYSE:NX) ("Quanex" or the "Company") today announced its results for the three months ended July 31, 2022.

The Company reported the following selected financial results:

	Three Months Ended July 31,		Nine Months Ended July, 31
($ in millions, except per share data)	2022	2021	2022	2021
Net Sales	$324.0	$279.9	$914.0	$780.4
Gross Margin	$72.6	$60.0	$201.0	$175.7
Gross Margin %	22.4%	21.4%	22.0%	22.5%
Net Income	$25.9	$13.6	$63.7	$36.0
Diluted EPS	$0.78	$0.41	$1.91	$1.08

Adjusted Net Income	$26.2	$14.2	$64.0	$37.8
Adjusted Diluted EPS	$0.79	$0.42	$1.92	$1.13
Adjusted EBITDA	$44.2	$32.9	$113.8	$89.5
Adjusted EBITDA Margin %	13.6%	11.8%	12.5%	11.5%

Cash Provided by Operating Activities	$51.7	$18.5	$49.9	$47.4
Free Cash Flow	$46.0	$12.3	$30.4	$31.4

(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, stated, "We are proud of the results we posted for the third quarter, especially considering the ongoing inflationary challenges and macro-related uncertainties. Demand for our products held up nicely for most of the third quarter and results reflected the benefit from our pass-through pricing strategy; however, we did start to experience some softness in demand in Europe towards the end of July.

"Free Cash Flow increased significantly during the third quarter of this year compared to the same period last year. The improvement in Free Cash Flow was driven by a meaningful increase in net income. We were able to repay $25 million of bank debt and repurchase $5 million of our common stock during the quarter. Overall, our balance sheet and liquidity remain strong. We will continue to focus on generating cash, maintaining a healthy balance sheet, opportunistically repurchasing our stock and evaluating growth opportunities." (See Non-GAAP Terminology Definitions and Disclaimers section and the reconciliation of Free Cash Flow to cash provided by operating activities for additional information)

Third Quarter 2022 Results Summary

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. (See Sales Analysis table for additional information)

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.

Balance Sheet & Liquidity Update

As of July 31, 2022, Quanex had total debt of $38.0 million and its leverage ratio of Net Debt to LTM Adjusted EBITDA improved to 0.1x. (See Non-GAAP Terminology Definitions and Disclaimers section for additional information)

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.

Share Repurchases

Quanex's Board authorized a $75 million share repurchase program in December of 2021. 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 Company repurchased 216,000 shares of common stock for approximately $5.0 million at an average price of $23.29 per share during the three months ended July 31, 2022. As of July 31, 2022, approximately $68.4 million remained under the existing share repurchase authorization.

Outlook

Mr. Wilson commented, "We are reaffirming guidance for fiscal 2022, which is based on our strong results year-to-date coupled with ongoing conversations with our customers. Overall, demand for our products is still relatively healthy, but in addition to the softness in Europe we are starting to see signs of softness in North America, mainly in our cabinet components business. For the fourth quarter of this year, we now expect ~15% revenue growth in our North American Fenestration segment and low-single digit revenue growth in our North American Cabinet Components segment. Due to continued softness in Europe and the foreign exchange impact, we expect revenue to decline by ~15% in our European Fenestration segment in the fourth quarter. As a reminder, on a consolidated basis, we guided to net sales of $1.18 billion to $1.2 billion, which we expect will generate approximately $150 million to $155 million in Adjusted EBITDA* in fiscal 2022.

Longer-term, the underlying fundamentals remain positive for the residential housing industry in North America and in the markets we serve in Europe. Our balance sheet is strong and we are well-positioned to weather any storm, and we are also prepared to execute on our plan and create further value for shareholders over time."

*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 Company's control and/or cannot be reasonably predicted or estimated, such as the provision for income taxes.

Conference Call and Webcast Information

The Company has also scheduled a conference call for Friday, September 2, 2022 at 11:00 a.m. ET (10:00 a.m. CT) to discuss the release. A link to the live audio webcast will be available on Quanex's website at http://www.quanex.com in the Investors section under Presentations & Events.

Participants can pre-register for the conference call using the following link: https://register.vevent.com/register/BIe64ac12abde44f549078e7b4a916e837

Registered participants will receive an email containing conference call details for dial-in options. To avoid delays, it is recommended that participants dial into the conference call ten minutes ahead of the scheduled start time. A replay will be available for a limited time on the Company's website at http://www.quanex.com in the Investors section under Presentations & Events.

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 Quanex's leverage. In addition, with certain limited adjustments, this leverage ratio is the basis for a key covenant in the Company's credit agreement. Free Cash Flow is a non-GAAP measure calculated using cash provided by operating activities less capital expenditures. Quanex uses the Free Cash Flow metric to measure operational and cash management performance and assist with financial decision-making. Free Cash Flow is measured before application of certain contractual commitments (including capital lease obligations), and accordingly is not a true measure of the Company's residual cash flow available for discretionary expenditures. Quanex believes Free Cash Flow is useful to investors in understanding and evaluating the Company's financial and cash management performance. Quanex believes that the presented non-GAAP measures provide a consistent basis for comparison between periods and will assist investors in understanding the Company's 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. Quanex 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 Quanex's products, the Company's future operating results, future financial condition, future uses of cash and other expenditures, expenses and tax rates, expectations relating to Quanex's industry, and the Company's 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 Quanex's future performance, please refer to the Company's Annual Report on Form 10-K for the fiscal year ended October 31, 2021, and the Company's 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.


CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)


	Three Months Ended July 31,						Nine Months Ended July, 31
	2022			2021			2022			2021

Net sales	$	324,037		$	279,877		$	913,970		$	780,381
Cost of sales		251,446			219,866			712,931			604,723
Selling, general and administrative		28,822			27,766			87,774			88,299
Restructuring charges		-			-			-			39
Depreciation and amortization		9,734			10,683			30,554			32,543
Operating income		34,035			21,562			82,711			54,777
Interest expense		(724	)		(597	)		(1,849	)		(1,988	)
Other, net		398			188			905			645
Income before income taxes		33,709			21,153			81,767			53,434
Income tax expense		(7,801	)		(7,474	)		(18,098	)		(17,352	)
Net income	$	25,908		$	13,679		$	63,669		$	36,082

Earnings per common share, basic	$	0.79		$	0.41		$	1.92		$	1.09
Earnings per common share, diluted	$	0.78		$	0.41		$	1.91		$	1.08

Weighted average common shares outstanding:
Basic		32,999			33,359			33,093			33,194
Diluted		33,173			33,650			33,256			33,518

Cash dividends per share	$	0.08		$	0.08		$	0.24		$	0.24


QUANEX BUILDING PRODUCTS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

	July 31, 2022			October 31, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	50,030		$	40,061
Accounts receivable, net		109,467			108,309
Inventories, net		138,237			92,529
Prepaid and other current assets		8,651			8,148
Total current assets		306,385			249,047
Property, plant and equipment, net		175,404			178,630
Operating lease right-of-use assets		45,722			52,708
Goodwill		141,249			149,205
Intangible assets, net		69,670			82,410
Other assets		5,177			5,323
Total assets	$	743,607		$	717,323

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	84,527		$	86,765
Accrued liabilities		51,453			56,156
Income taxes payable		13,709			6,038
Current maturities of long-term debt		1,070			846
Current operating lease liabilities		7,972			8,196
Total current liabilities		158,731			158,001
Long-term debt		55,458			52,094
Noncurrent operating lease liabilities		38,768			45,367
Deferred pension and postretirement benefits		4,498			4,737
Deferred income taxes		21,086			21,965
Other liabilities		14,929			15,377
Total liabilities		293,470			297,541
Stockholders' equity:
Common stock		373			373
Additional paid-in-capital		251,359			254,162
Retained earnings		315,471			259,718
Accumulated other comprehensive loss		(41,365	)		(21,770	)
Treasury stock at cost		(75,701	)		(72,701	)
Total stockholders' equity		450,137			419,782
Total liabilities and stockholders' equity	$	743,607		$	717,323


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

	Nine Months Ended July, 31
	2022			2021
Operating activities:
Net income	$	63,669		$	36,082
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization		30,554			32,543
Stock-based compensation		1,707			1,470
Deferred income tax		505			5,429
Other, net		2,647			5,485
Changes in assets and liabilities:
Increase in accounts receivable		(5,306	)		(8,277	)
Increase in inventory		(48,280	)		(32,113	)
Increase in other current assets		(824	)		(2,768	)
Increase in accounts payable		2,765			1,600
(Decrease) increase in accrued liabilities		(4,721	)		12,521
Increase (decrease) in income taxes payable		7,522			(5,158	)
Decrease in deferred pension and postretirement benefits		(239	)		(158	)
Increase in other long-term liabilities		32			962
Other, net		(177	)		(183	)
Cash provided by operating activities		49,854			47,435
Investing activities:
Capital expenditures		(19,488	)		(16,006	)
Proceeds from disposition of capital assets		134			3,138
Cash used for investing activities		(19,354	)		(12,868	)
Financing activities:
Borrowings under credit facilities		70,500			-
Repayments of credit facility borrowings		(70,500	)		(45,000	)
Debt issuance costs		(1,210	)		-
Repayments of other long-term debt		(1,301	)		(502	)
Common stock dividends paid		(7,916	)		(8,017	)
Issuance of common stock		502			16,272
Payroll tax paid to settle shares forfeited upon vesting of stock		(1,412	)		(492	)
Purchase of treasury stock		(6,600	)		(5,741	)
Cash used for financing activities		(17,937	)		(43,480	)
Effect of exchange rate changes on cash and cash equivalents		(2,594	)		955
Increase (decrease) in cash and cash equivalents		9,969			(7,958	)
Cash and cash equivalents at beginning of period		40,061			51,621
Cash and cash equivalents at end of period	$	50,030		$	43,663


QUANEX BUILDING PRODUCTS CORPORATION
FREE CASH FLOW AND NET DEBT 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 (used for) operating activities less capital expenditures.

	Three Months Ended July 31,				Nine Months Ended July, 31
	2022		2021		2022		2021
Cash provided by operating activities	51,735		18,475		$49,854		$47,435
Capital expenditures	(5,703	)	(6,207	)	(19,488	)	(16,006	)
Free Cash Flow	$46,032		$12,268		$30,366		$31,429


The following table reconciles the Company's Net Debt which is defined as total debt principal of the Company plus finance lease obligations minus cash.

	As of July 31,
	2022		2021
Revolving credit facility	$38,000		$58,000
Finance lease obligations	20,105		15,951
Total debt⁽¹⁾	58,105		73,951
Less: Cash and cash equivalents	50,030		43,663
Net Debt	$8,075		$30,288

(1) Excludes outstanding letters of credit.


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


	Three Months Ended							Three Months Ended							Nine Months Ended							Nine Months Ended
Reconciliation of Adjusted Net Income and Adjusted EPS	July 31, 2022							July 31, 2021							July 31, 2022							July 31, 2021
	Net Income			Diluted EPS				Net Income			Diluted EPS				Net Income			Diluted EPS				Net Income			Diluted EPS
Net income as reported	$	25,908		$	0.78			$	13,679		$	0.41			$	63,669		$	1.91			$	36,082		$	1.08
Net income reconciling items from below	257			$	0.01			512			$	0.01			291			$	0.01			1,686			$	0.05
Adjusted net income and adjusted EPS	$	26,165		$	0.79			$	14,191		$	0.42			$	63,960		$	1.92			$	37,768		$	1.13

Reconciliation of Adjusted EBITDA	Three Months Ended July 31, 2022							Three Months Ended July 31, 2021							Nine Months Ended July 31, 2022							Nine Months Ended July 31, 2021
	Reconciliation							Reconciliation							Reconciliation							Reconciliation
Net income as reported	$	25,908						$	13,679						$	63,669						$	36,082
Income tax expense	7,801							7,474							18,098							17,352
Other, net	(398		)					(188		)					(905		)					(645		)
Interest expense	724							597							1,849							1,988
Depreciation and amortization	9,734							10,683							30,554							32,543
EBITDA	43,769							32,245							113,265							87,320
EBITDA reconciling items from below	419							682							550							2,160
Adjusted EBITDA	$	44,188						$	32,927						$	113,815						$	89,480

Reconciling Items	Three Months Ended July 31, 2022							Three Months Ended July 31, 2021							Nine Months Ended July 31, 2022							Nine Months Ended July 31, 2021
	Income Statement			Reconciling Items				Income Statement			Reconciling Items				Income Statement			Reconciling Items				Income Statement			Reconciling Items
Net sales	$	324,037		$ -				$	279,877		$ -				$	913,970		$ -				$	780,381		$ -
Cost of sales	251,446			-				219,866			(307		)	(1)	712,931			-				604,723			(307		)	(1)
Selling, general and administrative	28,822			(419		)	(2)	27,766			(375		)	(2)	87,774			(550		)	(2)	88,299			(1,814		)	(2)
Restructuring charges	-			-				-			-				-			-				39			(39		)	(3)
EBITDA	43,769			419				32,245			682				113,265			550				87,320			2,160
Depreciation and amortization	9,734			-				10,683			-				30,554			-				32,543			-
Operating income	34,035			419				21,562			682				82,711			550				54,777			2,160
Interest expense	(724		)	-				(597		)	-				(1,849		)	-				(1,988		)	-
Other, net	398			(82		)	(4)	188			79			(4)	905			(164		)	(4)	645			161			(4)
Income before income taxes	33,709			337				21,153			761				81,767			386				53,434			2,321
Income tax expense	(7,801		)	(80		)	(5)	(7,474		)	(249		)	(5)	(18,098		)	(95		)	(5)	(17,352		)	(635		)	(5)
Net income	$	25,908		$	257			$	13,679		$	512			$	63,669		$	291			$	36,082		$	1,686

Diluted earnings per share	$	0.78						$	0.41						$	1.91						$	1.08


(1) Loss on damage to a plant caused by flooding.
(2) Transaction and advisory fees, loss on the sale of a plant.
(3) Restructuring charges related to the closure of manufacturing plant facilities.
(4) Foreign currency transaction (gains) losses.
(5) Impact on a with and without basis.


QUANEX BUILDING PRODUCTS CORPORATION
SELECTED SEGMENT DATA
(In thousands)
(Unaudited)

This table provides gross margin, operating (loss) income, EBITDA, and Adjusted EBITDA by reportable segment. Non-operating expense and income tax expense are not allocated to the reportable segments.
	NA Fenestration			EU Fenestration			NA Cabinet Components			Unallocated Corp & Other			Total
Three months ended July 31, 2022
Net sales	$	184,744		$	67,613		$	72,480		$	(800	)	$	324,037
Cost of sales		142,970			47,212			61,543			(279	)		251,446
Gross Margin		41,774			20,401			10,937			(521	)		72,591
Gross Margin %		22.6	%		30.2	%		15.1	%					22.4	%
Selling, general and administrative		14,644			8,256			5,335			587			28,822
Depreciation and amortization		4,044			2,327			3,273			90			9,734
Operating income (loss)		23,086			9,818			2,329			(1,198	)		34,035
Depreciation and amortization		4,044			2,327			3,273			90			9,734
EBITDA		27,130			12,145			5,602			(1,108	)		43,769
Transaction and advisory fees		-			-			-			419			419
Adjusted EBITDA	$	27,130		$	12,145		$	5,602		$	(689	)	$	44,188
Adjusted EBITDA Margin %		14.7	%		18.0	%		7.7	%					13.6	%

Three months ended July 31, 2021
Net sales	$	147,818		$	71,114		$	61,936		$	(991	)	$	279,877
Cost of sales		116,517			49,479			54,334			(464	)		219,866
Gross Margin		31,301			21,635			7,602			(527	)		60,011
Gross Margin %		21.2	%		30.4	%		12.3	%					21.4	%
Selling, general and administrative		13,428			7,525			5,130			1,683			27,766
Depreciation and amortization		4,571			2,646			3,390			76			10,683
Operating income (loss)		13,302			11,464			(918	)		(2,286	)		21,562
Depreciation and amortization		4,571			2,646			3,390			76			10,683
EBITDA		17,873			14,110			2,472			(2,210	)		32,245
Loss on the damage of a plant		-			307			-			-			307
Loss on sale of plant		375			-			-			-			375
Adjusted EBITDA	$	18,248		$	14,417		$	2,472		$	(2,210	)	$	32,927
Adjusted EBITDA Margin %		12.3	%		20.3	%		4.0	%					11.8	%

Nine months ended July 31, 2022
Net sales	$	509,283		$	199,954		$	207,711		$	(2,978	)	$	913,970
Cost of sales		396,505			138,147			179,791			(1,512	)		712,931
Gross Margin		112,778			61,807			27,920			(1,466	)		201,039
Gross Margin %		22.1	%		30.9	%		13.4	%					22.0	%
Selling, general and administrative		43,099			24,160			15,823			4,692			87,774
Depreciation and amortization		12,221			7,418			10,653			262			30,554
Operating income (loss)		57,458			30,229			1,444			(6,420	)		82,711
Depreciation and amortization		12,221			7,418			10,653			262			30,554
EBITDA		69,679			37,647			12,097			(6,158	)		113,265
Transaction and advisory fees		-			-			-			550			550
Adjusted EBITDA	$	69,679		$	37,647		$	12,097		$	(5,608	)	$	113,815
Adjusted EBITDA Margin %		13.7	%		18.8	%		5.8	%					12.5	%

Nine months ended July 31, 2021
Net sales	$	422,077		$	181,862		$	179,492		$	(3,050	)	$	780,381
Cost of sales		328,278			122,631			155,370			(1,556	)		604,723
Gross Margin		93,799			59,231			24,122			(1,494	)		175,658
Gross Margin %		22.2	%		32.6	%		13.4	%					22.5	%
Selling, general and administrative		38,944			21,559			15,372			12,424			88,299
Restructuring charges		39			-			-			-			39
Depreciation and amortization		14,528			7,771			9,965			279			32,543
Operating income (loss)		40,288			29,901			(1,215	)		(14,197	)		54,777
Depreciation and amortization		14,528			7,771			9,965			279			32,543
EBITDA		54,816			37,672			8,750			(13,918	)		87,320
Loss on the damage of a plant		-			307			-			-			307
Loss on sale of plant		375			-			-			1,439			1,814
Restructuring charges		39			-			-			-			39
Adjusted EBITDA	$	55,230		$	37,979		$	8,750		$	(12,479	)	$	89,480
Adjusted EBITDA Margin %		13.1	%		20.9	%		4.9	%					11.5	%


QUANEX BUILDING PRODUCTS CORPORATION
SALES ANALYSIS
(In thousands)
(Unaudited)

		Three Months Ended July 31,						Nine Months Ended July, 31
		2022			2021			2022			2021

NA Fenestration:
	United States - fenestration	$	162,215		$	129,291		$	447,425		$	369,809
	International - fenestration		10,722			9,581			30,952			25,756
	United States - non-fenestration		8,324			5,853			22,117			17,543
	International - non-fenestration		3,483			3,093			8,789			8,969
		$	184,744		$	147,818		$	509,283		$	422,077
EU Fenestration:⁽¹⁾
	International - fenestration	$	49,041		$	54,883		$	148,525		$	147,072
	International - non-fenestration		18,572			16,231			51,429			34,790
		$	67,613		$	71,114		$	199,954		$	181,862
NA Cabinet Components:
	United States - fenestration	$	4,857		$	3,240		$	13,288		$	9,711
	United States - non-fenestration		66,758			57,418			191,908			168,308
	International - non-fenestration		865			1,278			2,515			1,473
		$	72,480		$	61,936		$	207,711		$	179,492
Unallocated Corporate & Other:
	Eliminations	$	(800	)	$	(991	)	$	(2,978	)	$	(3,050	)
		$	(800	)	$	(991	)	$	(2,978	)	$	(3,050	)

Net Sales		$	324,037		$	279,877		$	913,970		$	780,381

(1) Reflects reduction of $8.9 million and $11.7 million in revenue associated with foreign currency exchange rate impacts for the three and nine months ended July 31, 2022, respectively.

Quanex Building Products Announces Third Quarter 2022 Results and Reaffirms Full Year 2022 Guidance