Exhibit 13

table of contents

mission statement

creating value through people

WHO WE ARE

American Woodmark is an organization of employees and shareholders who have combined their resources to pursue a common goal.

WHAT WE DO

Our common goal is to create value by providing kitchens and baths “of pride” for the American family.

WHY WE DO IT

We pursue this goal to earn a profit, which allows us to reward our shareholders and employees and to make a contribution to our society.

HOW WE DO IT

Four principles guide our actions:

CUSTOMER SATISFACTION Providing the best possible quality, service and value to the greatest number of people. Doing whatever is reasonable, and sometimes unreasonable, to make certain that each customer’s needs are met each and every day.

INTEGRITY Doing what is right. Caring about the dignity and rights of each individual. Acting fairly and responsibly with all parties. Being a good citizen in the communities in which we operate.

TEAMWORK Understanding that we must all work together if we are to be successful. Realizing that each individual must contribute to the team to remain a member of the team.

EXCELLENCE Striving to perform every job or action in a superior way. Being innovative, seeking new and better ways to get things done. Helping all individuals to become the best that they can be in their jobs and careers.

ONCE WE’VE DONE IT

When we achieve our goal good things happen: sales increase, profits are made, shareholders and employees are rewarded, jobs are created, our communities benefit, we have fun, and our customers are happy and proud — with a new kitchen or bath from American Woodmark.

company profile

American Woodmark Corporation manufactures and distributes kitchen cabinets and vanities for the remodeling and new home construction markets. The Company operates 14 manufacturing facilities located in Arizona, Georgia, Indiana, Kentucky, Maryland, Oklahoma, Tennessee, Virginia, and West Virginia and 9 service centers across the country.

American Woodmark Corporation was formed in 1980 and became a public company through a common stock offering in July, 1986.

The Company offers approximately 380 cabinet lines in a wide variety of designs, materials, and finishes. Products are sold across the United States through a network of independent distributors and directly to home centers and major builders. Approximately 69% of sales during fiscal year 2008 were to the remodeling market and 31% to the new home market.

The Company believes it is one of the three largest manufacturers of kitchen cabinets in the United States.

financial highlights

market information

American Woodmark Corporation common stock, no par value, is quoted on The NASDAQ Global Select Market under the “AMWD” symbol. Common stock per share market prices and cash dividends declared during the last two fiscal years were as follows:

As of May 30, 2008, there were approximately 7,600 shareholders of record of the Company’s common stock. Included are approximately 63% of the Company’s employees, who are shareholders through the American Woodmark Stock Ownership Plan. The Company pays dividends on its common stock each fiscal quarter. Although the Company presently intends to continue to declare cash dividends on a quarterly basis for the foreseeable future, the determination as to the payment and the amount of any future dividends will be made by the Board of Directors from time to time and will depend on the Company’s then-current financial condition, capital requirements, results of operations and any other factors then deemed relevant by the Board of Directors.

to our shareholders

KENT B. GUICHARD

President and CEO

The external environment we faced during fiscal 2008 was, to say the least, challenging. We began the year facing a continuing new construction slump driven primarily by a pricing bubble created through over-speculation in key markets such as California, Arizona, Florida, and Washington, DC. Housing starts had returned to the historical average of approximately one and a half million per year, down from over two million at the peak the prior year. The downward pressure on housing prices was widely publicized in the media and began to impact both the psychology of the consumer and the level of home equity available to finance large ticket remodeling projects. Remodeling retailers began to report negative year-over-year comparative store sales. Despite these negative pressures our order and sales levels stabilized during the middle of calendar 2007, albeit at lower levels than in the previous few years.

As we approached the fall, rumblings became roars as the average American became all too familiar with the existence of the “sub-prime” mortgage. What followed was a near collapse of the credit markets. Financial institutions effectively stopped lending, even to credit-worthy borrowers. The impact on the housing market was swift and severe. Housing starts rapidly dropped to below one million annualized units. The impact on single family homes was even worse. Building activity in the hardest hit areas was down 80% to 85% from the peak. Sales of existing homes declined from a high of over seven million units per year to under five million. Prices slumped. Months supply of both new and existing home inventories ballooned. Mortgages in distress and in foreclosure began a steady rise, reaching 5% or one in every twenty homes in some cities.

At the time I write this letter, we are in the midst of the worst housing downturn in thirty-five years. Of the largest ten public home builders in the country, all have reported revenue declines in the most recent quarter and all but one have reported net losses. Most have taken significant hits to their financial position due to the further leveraging of their balance sheets as operating losses and the devaluation of land have reduced equity faster than they have been able to pay down their debt load. The impact is not limited to new construction. Remodeling retailers are regularly reporting negative comparative store performance, particularly for large ticket items and projects.

Our financial results during fiscal 2008 were clearly impacted by the external environment. On an absolute basis, we are not satisfied with our financial performance. On a relative basis, given the industry context, the Company has performed well. Net sales declined by almost $160 million or 21% from the previous year. Margins were under pressure as we experienced negative leverage on fixed and semi-fixed costs. But despite the drop in revenue and the decline in margins, we remained profitable for the year. We generated almost $29 million in free cash flow, choosing to apply $25 million to stock repurchases. Over the past three years, we have repurchased 3.25 million or 20% of our outstanding shares. Our balance sheet remains outstanding with debt to capital of less than 11% and cash and cash equivalents of $57 million.

Many of the so-called experts tell us that the current housing downturn is an unprecedented event. That U.S. housing will be forever altered. I respectfully disagree. This is a cycle, like many before. And while each cycle has its own unique elements, all cycles have three things in common. First, they are largely unpredicted, they come quickly, and the initial drop seems terribly severe. Second, they seem to last forever, trying the patience of even the strongest among us. And finally, they do end.

I remember as a boy, after a summer at scout camp or a long family vacation, returning home. The anticipation building as we reached our exit from the freeway, waited at traffic lights as we crossed town, finally turned down our street, and pulled into the driveway. Home at last. I have the same experience even today when I have been away. We are a nation of home owners. I disagree with those that forecast the end of housing as we know it in America because, to agree, I would have to conclude that we are going to fundamentally change who we are as a people. Home ownership is in our DNA. So for us, it is a question of when the current down cycle ends, not if the cycle ends.

This brings us to THE question that everyone asks. When will it end? I don’t know. The fact is, nobody knows. I would go further and even suggest that this is the wrong question. Since we believe that it will end, we just don’t know when it will end, the real question is what do we do in the meantime?

We have three priorities during the remainder of this housing cycle. First, and most importantly, we are focused on protecting the core assets of the Company. We have invested heavily over the years in our relationships with both customers and vendors.

These long-standing partnerships provide intrinsic value as evidenced by access to distribution, market share gains, sharing of cutting edge knowledge and, ultimately, profitability and return on investment. We are maintaining, and even increasing, our touch points with both customers and suppliers. We have also invested heavily over the years in the skill sets and culture of the organization. We continue to build the Company through the attraction, retention, and training of highly capable and qualified individuals that share our passion for the business and a commitment to our Mission Statement and Vision. Our physical asset base has been built over time with great care to service our customers. We are adhering to our preventative maintenance and replacement schedules, ensuring the currency of our productive capacity. While there is clearly a short-term cost with this approach, we believe that the long-term interests of the shareholder are best served during these times through the protection of these critical core assets.

Second, down markets present an opportunity to gain share. The traditional response by many to economic downturns is to pull back, hunker down, and wait it out. Energy is focused almost exclusively on cost cutting. We have made a different choice, taken a different approach. We have not only sustained, but increased the level of customer contact. We have continued to design and implement programs that improve the customer experience. We continue to develop and introduce new products and services. The results of our efforts have been increased market share. Although competitive pressures do exist, particularly at the entry level, we have not simply cut price to achieve results. We have both increased penetration with existing customers and secured new customers based on our total package of services, products, and pricing. Most importantly, our share gains have been in business with appropriate margins that we believe are sustainable over time.

Third, and finally, we must run the business. We are still taking orders, producing product, and delivering kitchens and baths of pride for the American family. We are making improvements in our operations each and every day. We are moving forward on the critical elements of our 2013 Vision, expanding our quality programs, implementing lean manufacturing concepts, and improving our logistics platform. During down cycles, organizations have the time and capacity for big programs with big impact. We are taking advantage of this temporary decline in the market by making changes that would be next to impossible during times of high demand.

While clearly no one has perfected the art of forecasting to be able to predict when cycles will occur and for how long they will last, the reality of periodic housing cycles is inevitable. Since the last down cycle in the early 1990s, we remained conscious that another down cycle would eventually arrive on our doorstep. Despite numerous suggestions from Wall Street to recapitalize the Company with more debt, we maintained a conservative capital structure for just such a time. As a result, we now enjoy the financial flexibility that comes with low debt and a strong cash position. We can afford to continue to invest in the business during this cycle.

In this environment, many have suggested that we be more aggressive in reducing costs and closing down capacity. We have moved quickly to lower and even eliminate certain costs, mindful of the unintended consequences of cutting programs that would impact our customers, limit our participation in the recovery of the market, or impair our future plans. The Company has a sound strategy that we execute well. We are exercising the discipline to stay the course during a periodic cycle. In our opinion, this is the path that is in the best interest of our shareholders and, over time, will provide a superior return. In the current environment this is the best, but not always the easiest, choice. I am proud to be associated with fellow employees that continue to demonstrate the personal and professional courage to follow their convictions, remain committed to our Vision and true to the values of our Mission Statement.

I am saddened to report that during the last year we lost Dan Carroll to a sudden illness. Dan joined our Board of Directors in 1986 and worked tirelessly on behalf of the Company for over two decades. His contributions have been immeasurable. Dan was a zealous representative for all those who needed a voice at the table. We will miss his intelligence, his experience and perspective, his coaching and counseling, his energy and humor, and the enormous care he always demonstrated for the Company and its employees. We remember Dan best by continuing to pursue our aspiration to be a great company founded on our core beliefs.

The external environment will undoubtedly remain challenging in the period ahead. We will continue to focus on positioning the organization to emerge from the current cycle a better, stronger and more profitable Company. I wish to express my sincere appreciation to our employees, our shareholders, our customers, our vendors, and our communities for your continued support.

Kent B. Guichard President and Chief Executive Officer

2008

management’s discussion and analysis

RESULTS OF OPERATIONS

The following table sets forth certain income and expense items as a percentage of net sales.

The following discussion should be read in conjunction with the Selected Financial Data and the Consolidated Financial Statements and the related notes contained elsewhere herein.

FORWARD-LOOKING STATEMENTS

This report contains statements concerning the Company’s expectations, plans, objectives, future financial performance, and other statements that are not historical facts. These statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In most cases, the reader can identify these forward-looking statements by words such as “anticipate,” “estimate,” “forecast,” “expect,” “believe,” “should,” “could,” “would,” “plan,” “may” or other similar words. Forward-looking statements contained in this annual report, including Management’s Discussion and Analysis, are based on current expectations and our actual results may differ materially from those projected in any forward-looking statements. In addition, the Company participates in an industry that is subject to rapidly changing conditions and there are numerous factors that could cause the Company to experience a decline in sales and/or earnings. These include (1) overall industry demand at reduced levels, (2) economic weakness in a specific channel of distribution, (3) the loss of sales from specific customers due to their loss of market share, bankruptcy or switching to a competitor, (4) a sudden and significant rise in basic raw material costs, (5) a dramatic increase to the cost of diesel fuel and/or transportation related services, (6) the need to respond to price or product initiatives launched by a competitor, (7) the Company’s ability to successfully implement initiatives related to increasing market share, new products, maintaining and increasing its sales force and new product displays, and (8) sales growth at a rate that outpaces the Company’s ability to install new capacity. While the Company believes that these risks are manageable and will not adversely impact the long-term performance of the Company, these risks could, under certain circumstances, have a materially adverse impact on its operating results and financial condition.

OVERVIEW

American Woodmark Corporation manufactures and distributes kitchen cabinets and vanities for the remodeling and new home construction markets. Its products are sold on a national basis directly to home centers, major builders and home manufacturers, and through a network of independent distributors. At April 30, 2008, the Company operated 14 manufacturing facilities and 9 service centers across the country.

Driven by the impact of market conditions that rank among the worst in 35 years, the Company’s net sales, gross profit and net income all declined in its fiscal year that ended on April 30, 2008 (fiscal 2008) as compared with fiscal 2007.

These declines were driven primarily by the impact of reduced sales volumes, as the Company’s market share gains in both the remodeling and new construction sectors were more than offset by the impact of the market’s decline. Sales were also reduced approximately 5% by the completion of the Company’s transition out of certain low-margin products which was completed in February 2007. The Company’s remodeling sales exclusive of the transitioned low-margin products declined by a high single-digit percentage during fiscal 2008, as sales of existing homes, generally acknowledged to be a driver of remodeling activity, dropped 17% during the Company’s fiscal year according to data supplied by the U.S. Census Bureau. In addition, the Company believes that the magnitude of its remodeling sales decline was less than that of its remodeling customers. Similarly, the Company’s sales to new construction customers declined less than the market’s 32% decline in single-family homes started during the Company’s fiscal year. The Company gained market share with many new construction customers during fiscal 2008, but these gains were tempered by declines that resulted from a handful of its older new-construction customers going out of business.

Despite the present housing market downturn, the Company believes that the long-term fundamentals for the American housing industry remain positive, based upon strong employment, relatively low interest rates, continued population growth, and other favorable demographic trends. Based upon this belief, the Company has continued to maintain its strategy of investing to improve its operations and its capabilities to best service its customers. The Company remains focused on continuing to gain market share and has continued to invest in developing and launching new products while maintaining its product displays and related marketing collateral deployed with new customers in its new construction channel.

Gross margin for fiscal year 2008 was 17.1%, down from 20.5% in fiscal 2007. The reduction in the Company’s gross margin rate was driven primarily by inefficiencies in labor, overhead, and freight costs that were driven by lower sales volumes, as well as by the impact of rising fuel prices upon freight and materials costs. These factors more than offset the favorable impact from the Company’s completed transition out of selling certain low-margin products, which improved the Company’s sales mix and reduced materials and freight costs in relation to sales.

Gross margin in fiscal 2008 was also adversely impacted by two other items:

The Company regularly assesses its long-lived assets to determine if any impairment has occurred. Although the direction of the housing market and its resultant impact upon the Company’s performance is not presently positive, the Company continues to believe that the long-term fundamentals of job creation, unemployment, and long-term interest rates support a growing and vibrant housing economy in the future. Accordingly, the Company does not believe that its long-lived assets pertaining to its 14 manufacturing plants or any of its other long-lived assets were impaired as of April 30, 2008.

Net income was $4.3 million for fiscal 2008, compared with $32.6 million during fiscal 2007.

NET SALES

Net sales were $602.4 million in fiscal 2008, a decrease of $158.5 million, or 21% compared with fiscal 2007. The completion of the Company’s transition out of selling certain low-margin products was responsible for about 20% of this decline, while reductions in sales of the Company’s remaining core products resulted in the remainder of the sales decline. Overall unit volume for fiscal 2008 was 28.2% lower than in fiscal 2007, driven primarily by weaker new construction and remodeling sales volume, but also due to the elimination of the low-margin products sales. Average revenue per unit increased 10.2% during fiscal 2008 compared with prior year, driven primarily by the aforementioned low-margin products transition, and to a lesser extent from an increased proportion of remodeling sales within the Company’s sales mix.

Net sales for fiscal 2007 decreased 9% to $760.9 million from $837.7 million in fiscal 2006. The majority of the sales decline was driven by the Company’s planned transition out of certain low-margin products, which caused sales to decline approximately $55 million. Sales of the Company’s core products declined by $21 million, or 3%, as a double-digit decline in new construction sales more than offset the Company’s 9% increase in remodeling sales. Overall unit volume for fiscal 2007 was 21.2% lower than in fiscal 2006, driven primarily by the Company’s transition out of certain low-margin products and weaker new construction sales volume. In fiscal 2007, the average selling price per unit increased 15.3% due to shifts in product mix and improved pricing.

GROSS PROFIT

Gross profit as a percentage of sales decreased to 17.1% in fiscal 2008 as compared with 20.5% in fiscal 2007. The impact of reduced core product sales in fiscal 2008 drove labor productivity and fixed overhead cost absorption lower, more than offsetting the beneficial impact upon margins from the improvements in the Company’s sales mix that resulted from its completed transition out of selling low-margin products. In addition, the Company’s gross profit rate was reduced 0.8% by a change in the form of the Company’s sales promotional participation with one of its retail customers, and by 0.2% for severance and separation costs associated with headcount reductions and the closure of one of the Company’s manufacturing plants. Specific changes and additional information follows:

During fiscal 2007, the Company increased its gross profit as a percent of sales to 20.5% from 17.9% in fiscal 2006. The increase in gross profit was the result of lower materials and freight costs as a percentage of net sales in fiscal 2007, due primarily to the change in the Company’s sales mix. Manufacturing overhead costs were higher as a percentage of net sales in fiscal 2007, as this component of cost has a higher proportion of fixed cost and was compared with a reduced sales level. Labor costs comprised a slightly lower percentage of sales in fiscal 2007, as efficiencies from the product mix were somewhat offset by inefficiencies associated with lower volume.

Transportation costs decreased during 2007 by 0.9% of net sales compared with fiscal 2006, due to the favorable impact of the changes in sales mix, and the stability of the diesel fuel costs in comparison with the prior year.

Manufacturing overhead costs increased during 2007 by 1.3% of net sales from fiscal 2006, as efficiencies from improved operations were more than offset by the impact of spreading a relatively fixed cost over a reduced sales base, as well as an increase of 0.2% of net sales for stock compensation expense.

Materials costs declined as a percentage of net sales by 1.9% during fiscal 2007 as compared with fiscal 2006. In addition to the favorable impact of the aforementioned changes in sales mix, sales price increases helped offset inflationary cost increases, and efficiencies in materials handling and lumber yields also helped reduce costs in relation to net sales.

Labor costs decreased 1.1% as a percentage of net sales as compared with those of fiscal 2006. The favorable impact was driven by the aforementioned changes in sales mix, which more than offset the impact of reduced productivity stemming from the decline in production volume.

SELLING AND MARKETING EXPENSES

Selling and marketing expenses for fiscal 2008 were 11.9% of net sales, compared with 9.3% of net sales in fiscal 2007. The increased cost as a percent of sales in fiscal 2008 was driven by the Company’s continuing investments to maintain its customer touch points, launch new products and increase its displays deployed with new construction customers, coupled with the decline in net sales.

Selling and marketing expenses were 9.3% of net sales in fiscal 2007 compared with 8.4% in fiscal 2006. The increased cost as a percent of sales in fiscal 2007 was due primarily to a relatively fixed sales overhead cost compared with a reduced sales level, as well as the inception of recording stock compensation costs of 0.2% of net sales.

GENERAL & ADMINISTRATIVE EXPENSES

General and administrative expenses for fiscal 2008 were reduced by $8.5 million from fiscal 2007 levels, and represented 4.5% of net sales, as compared with 4.7% of net sales for fiscal 2007. The decrease in fiscal 2008 was due primarily to lower costs associated with the Company’s pay-for-performance employee incentive plans, offset somewhat by increased bad debt costs of $0.7 million. As of April 30, 2008, the Company had receivables from customers with a higher perceived level of risk aggregating $2.6 million, of which $1.3 million had been reserved for potential uncollectibilty.

General and administrative expenses in fiscal year 2007 were 4.7% of net sales compared with 3.1% of net sales in fiscal 2006. The increase in fiscal 2007 was due primarily to higher costs associated with the Company’s pay-for-performance employee incentive plans, share-based compensation costs aggregating 0.6% of net sales, and 0.1% of net sales for increased bad debt costs.

EFFECTIVE INCOME TAX RATES

The Company’s combined federal and state effective income tax rate declined to 24.9% in fiscal 2008 from 36.4% in fiscal 2007, due to the increased impact of favorable permanent tax differences for tax-exempt interest, general business credits, and the domestic production deduction, which more than offset the increased impact of state income taxes and meals and entertainment in a year of reduced net income.

The Company’s combined federal and state effective income tax rate declined to 36.4% in fiscal 2007 from 38.2% in fiscal 2006, due primarily to the enhanced level of tax-exempt income earned by the Company.

OUTLOOK FOR FISCAL 2009

The Company follows several indices, including housing starts, existing home sales, mortgage interest rates, new jobs growth, GDP growth, and consumer confidence that it believes are leading indicators of overall demand for kitchen and bath cabinetry. These indicators collectively suggest to the Company that although the long-term economic outlook for housing is positive, the near-term outlook is challenging.

As we commence fiscal year 2009, two of the key remodeling and new construction market indicators started the new fiscal year at lower levels than they averaged during fiscal year 2008:

The Company expects that the market will remain at similar levels of activity during its fiscal year 2009. The Company expects that it will benefit from market share gains it has already achieved, and continue to gain market share during fiscal 2009. The Company expects that material costs will be relatively stable in fiscal 2009 while fuel costs will continue to increase; should these costs rise significantly, it would adversely affect the Company’s near-term operating performance. The Company has experienced an inflationary environment with respect to certain commodity prices and petroleum-based products during the past three fiscal years. While the Company believes that it is more efficient as compared to the industry in the use of materials, a rise in raw material costs could negatively impact profitability during fiscal 2009.

The Company could be negatively impacted by reduced market demand as the result of lower overall remodeling or new construction activity. While the Company expects to perform better than the industry on average during a downturn in demand, the combined effects of lower sales and increased costs due to underutilized capacity could result in decreased profitability in fiscal 2009 versus fiscal 2008.

Additional risks and uncertainties that could affect the Company’s results of operations and financial condition are discussed elsewhere in this report, including under “Forward-Looking Statements,” and in the Company’s annual report on Form 10-K filed with the SEC, under “Market Risks.”

LIQUIDITY AND CAPITAL RESOURCES

The statements of cash flows reflect the changes in cash and cash equivalents for the years ended April 30, 2008, 2007, and 2006, by classifying transactions into three major categories: operating, investing, and financing activities.

OPERATING ACTIVITIES

The Company’s main source of liquidity is cash generated from operating activities consisting of net earnings adjusted for non-cash operating items, primarily depreciation, amortization and stock-based compensation, and changes in operating assets and liabilities such as receivables, inventories, and payables. Primarily because of the non-cash operating expenses that are included in net income, the Company’s cash provided by operating activities has historically been considerably more than its net income. During fiscal year 2008, the Company’s net cash provided by operating activities was $47.6 million, as compared with net income of $4.3 million. Of the $43.3 million difference between these two amounts, $40.5 million related to non-cash depreciation and amortization and stock-based compensation expenses.

Cash provided by operating activities in fiscal 2008 was $47.6 million, compared with $86.5 million in fiscal 2007. The $38.9 million reduction in cash provided from operations compared with the prior year was primarily attributable to the $28.3 million reduction of net income. The remaining $10.6 million reduction in cash provided from operating activities was primarily driven by less favorable contributions from changes in receivables and inventory, offset somewhat by less unfavorable changes in accounts payable, accrued and prepaid expenses, and a decrease in deferred income taxes, as the Company’s working capital investment had been reduced significantly in fiscal 2007 due to the low-margin products transition.

The Company’s operating cash flows in fiscal 2007 were higher than in prior year by $19.9 million, primarily attributable to the initial recording of $6.3 million of stock compensation expense, and reductions in the amount of receivables and inventory levels compared with prior year of $22.0 million and $15.5 million, respectively, that were driven by the Company’s exit from selling low-margin products and the resulting sales decline. Offsetting these improvements were reductions relating to reduced payables and accrual balances of $17.2 million and an increase in prepaid expenses of $2.5 million compared with the prior year. The reduction in the Company’s payables balances related to carrying lower levels of inventory, while the increase in prepaid expenses reflected prepaid taxes.

INVESTING ACTIVITIES

The Company’s primary investing activities are capital expenditures and investments in promotional displays. Net cash used by investing activities in fiscal 2008 was $19.0 million, compared with $28.1 million in fiscal 2007 and $26.6 million in fiscal 2006. Additions to property, plant, and equipment for fiscal 2008 were $8.3 million, compared with $14.7 million in fiscal 2007 and $13.2 million in fiscal 2006. Additions to property, plant, and equipment made in fiscal 2007 and fiscal 2006 were primarily for the re-layout and expansion of one of the Company’s manufacturing facilities in each year. During fiscal 2008, spending was limited primarily to capital expenditures for equipment replacements. The Company’s investment in promotional displays in fiscal 2008 was $10.8 million, down 20% below the $13.5 million in fiscal 2007 and $13.4 million in fiscal 2006, driven by reduced store re-merchandising activities by the Company’s remodeling customers.

The Company completed its transition out of selling certain low-margin products during fiscal 2007. This action, combined with lower production volumes due to the impact of difficult market conditions, has caused the Company to determine that its manufacturing capacity needs may be adequately served by its existing plants for several years. Accordingly, the Company’s investment in capital expenditures has been reduced significantly and is expected to remain at comparable levels until market conditions warrant a change. The Company has deployed the cash proceeds generated by its operating activities during fiscal years 2006, 2007, and 2008 by returning this cash to its shareholders, in the form of increased stock repurchases and cash dividends. During the three-year period ended April 30, 2008, the Company generated a total of $126.9 million of free cash flow (defined as the net of cash provided by operations of $200.7 million, less cash used in investing activities of $73.8 million), of which 89%, or $113.0 million, was returned to its shareholders in the form of stock repurchases and dividends. Accordingly, financing activities has become a significant use of cash in fiscal years 2006, 2007, and 2008.

FINANCING ACTIVITIES

Net cash used by financing activities in fiscal 2008 was $29.8 million, down compared with the $48.2 million of cash used in fiscal 2007. The net use of cash in fiscal 2008 related primarily to the Company’s repurchase of $24.8 million of its common stock and the payment of $4.8 million of dividends to shareholders. During fiscal 2007 and fiscal 2006, the Company repurchased $62.9 million and $15.3 million of stock, respectively, paid $3.3 million and $2.0 million of dividends, and made net repayments of debt of $1.5 million in fiscal 2007 and $1.0 million in fiscal 2006, offset by net proceeds related to the exercises of stock options of $19.5 million and $1.8 million, respectively.

Under the Company’s stock repurchase plans approved by its Board of Directors in November 2006 and August 2007, the Company repurchased $24.8 million of its common stock during fiscal 2008. These purchases exhausted the November 2006 repurchase authorization. The August 2007 authorization allows the Company to repurchase its common stock from time to time, when management believes the market price presents an attractive return on investment for its shareholders. At April 30, 2008, approximately $95.7 million remained authorized by the Company’s Board of Directors to repurchase shares of the Company’s common stock under the August 2007 authorization. The Company has authorized a total of $220 million of stock repurchases since the inception of the program in 2001.

Cash flow from operations combined with accumulated cash on hand and available borrowing capacity on the Company’s $40 million line of credit, which was increased by $5 million during fiscal 2008, is expected to be more than sufficient to meet forecasted working capital requirements, service existing debt obligations, and fund capital expenditures for fiscal 2009.

The timing of the Company’s contractual obligations as of April 30, 2008 is summarized in the table below.