Masonite International Corporation Reports Second Quarter Sales and Earnings Growth and Reiterates Confidence in Full Year 2022 Outlook

Rhea-AI Summary

Masonite International Corporation (NYSE: DOOR) reported a 15% increase in net sales year-over-year for Q2 2022, totaling $762 million, driven by strong demand in the North American Residential segment. Net income surged by 67% to $59 million, with diluted earnings per share climbing 83% to $2.58. Adjusted EBITDA increased 7% to $118 million, though the margin declined slightly. Masonite has also completed an accelerated share repurchase of approximately 1.2 million shares.

Positive

• Net sales up 15% year-over-year to $762 million.
• Net income attributable to Masonite increased by 67% to $59 million.
• Diluted earnings per share rose by 83% to $2.58.
• Adjusted EBITDA increased by 7% to $118 million.

Negative

• Adjusted EBITDA margin decreased by 120 bps to 15.5%.

• Net Sales up 15% year over year driven by steady demand and strong operational performance in the North American Residential segment
• Net income attributable to Masonite up 67% year over year and Adjusted EBITDA* up 7% year over year
• Completed the previously announced accelerated share repurchase agreement, which retired a total of approximately 1.2 million common shares

TAMPA, Fla.--(BUSINESS WIRE)-- Masonite International Corporation ("Masonite" or "the Company") (NYSE: DOOR) today announced results for the three and six months ended July 3, 2022.

($ in millions, except per share amounts)	2Q22		2Q21		% Change		YTD 2022		YTD 2021		% Change
Net Sales	$762		$662		+15.0%		$1,488		$1,309		+13.7%
Net income attributable to Masonite	$59		$35		+67.0%		$126		$82		+53.7%
Diluted earnings per share	$2.58		$1.41		+83.0%		$5.47		$3.30		+65.8%
Adjusted EPS*	$2.58		$2.23		+15.7%		$5.47		$4.16		+31.5%
Adjusted EBITDA*	$118		$111		+6.8%		$243		$213		+14.2%
Adjusted EBITDA* Margin	15.5%		16.7%		(120 bps)		+16.3%		16.2%		+10 bps

“Masonite delivered another solid quarter of year-over-year net sales and Adjusted EBITDA* growth driven by steady demand and strong execution in our North American Residential segment,” said Howard Heckes, President and CEO. “We have started shipments from two new door production facilities, in line with our strategy to deliver consistent and reliable supply. We also introduced new products and marketing initiatives aimed at supporting further growth and favorable mix. We believe that these initiatives, combined with thoughtful price-cost management, will allow us to effectively navigate near-term macro-economic headwinds and make continued progress toward our 2025 Centennial Plan^.”

* See "Non-GAAP Financial Measures and Related Information" for definition and reconciliation of non-GAAP measures.
^ The Company’s 2025 Centennial Plan is a forward-looking statement and subject to risks and uncertainties. See "Forward-looking Statements”

Second Quarter 2022 Discussion

Consolidated net sales were $762 million in the second quarter of 2022, a 15% increase from $662 million in the second quarter of 2021. The increase resulted from a 19% increase in average unit price (AUP), partially offset by a 2% decrease from unfavorable foreign exchange, a 1% decrease in volume, and a 1% decrease due to a prior year divestiture.

• North American Residential net sales were $608 million, a 23% increase compared to the second quarter of 2021, driven by a 21% increase in AUP and a 3% increase in volume, partially offset by a 1% decrease due to unfavorable foreign exchange.
• Europe net sales were $74 million, down 16% compared to the second quarter of 2021 attributable to a 10% decrease due to unfavorable foreign exchange and a 6% decrease due to a prior year divestiture, as a 16% decrease in volume was fully offset by a 16% increase in AUP.
• Architectural net sales were $75 million, a 1% decrease compared to the second quarter of 2021, driven by a 13% decrease in volume as well as a 1% impact from lower component sales and unfavorable foreign exchange, largely offset by a 13% increase in AUP.

Total company gross profit was $179 million in the second quarter of 2022, an increase of 9% compared to $164 million in the second quarter of 2021. Gross profit margin decreased 120 basis points to 23.6%, as higher AUP was offset by the impact of inflation on raw materials and logistics costs, higher manufacturing wages and lower volume in our Europe and Architectural segments.

Selling, general and administration (SG&A) expenses were $90 million in the second quarter of 2022, an increase of approximately 10% compared to $83 million in the second quarter of 2021 primarily due to higher personnel costs, which includes increased incentive compensation, wage and benefit inflation and resources to support growth. SG&A as a percentage of net sales was 11.9%, 60 basis points lower as compared to the second quarter of 2021.

Net income attributable to Masonite was $59 million in the second quarter of 2022 compared to $35 million in the second quarter of 2021. The increase was primarily driven by higher gross profit as discussed above, as well as the absence of $18 million in charges incurred in the second quarter of 2021 related to our previously announced restructuring plans and a loss on the disposal of our Czech business.

Adjusted EBITDA* of $118 million in the second quarter of 2022 increased approximately 7% from $111 million in the second quarter of 2021. Diluted earnings per share were $2.58 in the second quarter of 2022, an increase of 83% compared to $1.41 in the comparable 2021 period. Diluted adjusted earnings per share* were $2.58 in the second quarter of 2022 compared to $2.23 in the comparable 2021 period, which excludes $18 million in charges as discussed above.

* See "Non-GAAP Financial Measures and Related Information" for definition and reconciliation of non-GAAP measures.

Balance Sheet, Cash Flow and Capital Allocation

At the end of the quarter, total available liquidity was $482 million, inclusive of $232 million in unrestricted cash and $251 million of availability under our ABL Facility and our AR Sales Program.

Cash provided by operations was $34 million for the six months ended July 3, 2022, as compared to $33 million in the prior year period. Capital expenditures were $40 million for the six months ended July 3, 2022, an increase from $30 million in the comparable period of 2021.

During the second quarter, Masonite completed the previously announced accelerated share repurchase agreement (the “ASR Agreement”) and received the final delivery of approximately 320 thousand common shares. Combined with the initial delivery of 848 thousand common shares, the $100 million ASR transaction resulted in the retirement of nearly 1.2 million common shares at a volume-weighted average price of $85.63 per share.

Full Year 2022 Outlook

The Company affirmed its full year Net Sales and Adjusted EBITDA* outlook and increased Adjusted EPS* expectations as follows:

Net Sales Growth	+6% - 10% YoY	+8% - 12% ex. FX YoY
Adjusted EBITDA*	$445 - $475M	+8% - 15% YoY
Adjusted EPS*	$9.60 - $10.60	+18% - 30% YoY

“We are pleased with the strong results our team delivered in the first half of this year.” said Russ Tiejema, Executive Vice President and CFO. “Looking forward, we are closely monitoring the demand outlook for the North American Residential markets in the second half, but given the progress we have already made in executing our growth strategy we remain confident in our ability to meet or exceed our full year outlook for Net Sales and Adjusted EBITDA*. As a result of our shareholder return initiatives, we are increasing our full year outlook for Adjusted EPS* to a range of $9.60 to $10.60 to reflect a lower share count, partially offset by a higher anticipated tax rate.”

A quantitative reconciliation of Adjusted EBITDA* and Adjusted EPS* to the corresponding GAAP information is not provided for the 2022 outlook because it is difficult to predict the GAAP measures that are excluded from Adjusted EBITDA* such as restructuring costs, asset impairments, share based compensation expense and gains/losses on sales of subsidiaries and PP&E.

Masonite Earnings Conference Call

The Company will hold a live conference call and webcast on August 9, 2022. The live audio webcast will begin at 9:00 a.m. EDT and can be accessed, together with the presentation, on the Masonite website www.masonite.com. The webcast can be directly accessed at: Q2'22 Earnings Webcast.

Telephone access to the live call will be available at 877-407-8289 (in the U.S.) or by dialing 201-689-8341 (outside the U.S.).

A telephone replay will be available approximately one hour following completion of the call through August 23, 2022. To access the replay, please dial 877-660-6853 (in the U.S.) or 201-612-7415 (outside U.S.). Enter Conference ID #13730458.

* See "Non-GAAP Financial Measures and Related Information" for definition and reconciliation of non-GAAP measures.

About Masonite

Masonite International Corporation is a leading global designer, manufacturer, marketer and distributor of interior and exterior doors for the new construction and repair, renovation and remodeling sectors of the residential and non-residential building construction markets. Since 1925, Masonite has provided its customers with innovative products and superior service at compelling values. Masonite currently serves more than 7,000 customers globally. Additional information about Masonite can be found at www.masonite.com.

Forward-looking Statements

This press release contains "forward-looking statements" within the meaning of federal securities laws, including our discussion of our 2022 outlook and 2025 Centennial Plan, the conditions in our industry, our operations, our economic performance and financial condition, including, in particular, statements relating to our business and growth strategy and product development efforts. When used in this press release, such forward-looking statements may be identified by the use of such words as “may,” “might,” “could,” “will,” “would,” “should,” “expect,” “believes,” “outlook,” “predict,” “forecast,” “objective,” “remain,” “anticipate,” “estimate,” “potential,” “continue,” “plan,” “project,” “targeting,” or the negative of these terms or other similar terminology.

Forward-looking statements involve significant known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Masonite, or industry results, to be materially different from any future plans, goals, targets, objectives, results, performance or achievements expressed or implied by such forward-looking statements. As a result, such forward-looking statements should not be read as guarantees of future performance or results, should not be unduly relied upon, and will not necessarily be accurate indications of whether or not such results will be achieved. Factors that could cause actual results to differ materially from the results discussed in the forward-looking statements include, but are not limited to, downward trends in our end markets and in economic conditions; reduced levels of residential new construction; residential repair, renovation and remodeling; and non-residential building construction activity due to increases in mortgage rates, changes in mortgage interest deductions and related tax changes and reduced availability of financing; competition; the continued success of, and our ability to maintain relationships with, certain key customers in light of customer concentration and consolidation; our ability to accurately anticipate demand for our products; impacts on our business including seasonality, weather and climate change; scale and scope of the ongoing coronavirus ("COVID-19") pandemic and its impact on our operations, customer demand and supply chain; increases in prices of raw materials and fuel; tariffs and evolving trade policy and friction between the United States and other countries, including China, and the impact of anti-dumping and countervailing duties; increases in labor costs, the availability of labor, or labor relations (i.e., disruptions, strikes or work stoppages); our ability to manage our operations including potential disruptions, manufacturing realignments (including related restructuring charges) and customer credit risk; product liability claims and product recalls; our ability to generate sufficient cash flows to fund our capital expenditure requirements, to meet our pension obligations and to meet our debt service obligations, including our obligations under our senior notes and our asset-based revolving credit facility ("ABL Facility"); limitations on operating our business as a result of covenant restrictions under our existing and future indebtedness, including our senior notes and ABL Facility; fluctuating foreign exchange and interest rates; our ability to replace our expiring patents and to innovate, keep pace with technological developments and successfully integrate acquisitions; the continuous operation of our information technology and enterprise resource planning systems and management of potential cyber security threats and attacks; political, economic and other risks that arise from operating a multinational business; uncertainty relating to the United Kingdom's exit from the European Union; retention of key management personnel; and environmental and other government regulations, including the United States Foreign Corrupt Practices Act ("FCPA"), and any changes in such regulations. For a more detailed discussion of these factors, see the information under the captions “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Forward Looking Statements” in our most recent annual report on Form 10-K filed with the SEC on February 24, 2022, in each case as updated by our subsequent filings with the SEC. Masonite undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

* See "Non-GAAP Financial Measures and Related Information" for definition and reconciliation of non-GAAP measures.

Non-GAAP Financial Measures and Related Information

Our management reviews net sales and Adjusted EBITDA (as defined below) to evaluate segment performance and allocate resources. Net assets are not allocated to the reportable segments. Adjusted EBITDA is a non-GAAP financial measure which does not have a standardized meaning under GAAP and is unlikely to be comparable to similar measures used by other companies. Adjusted EBITDA should not be considered as an alternative to either net income or operating cash flows determined in accordance with GAAP. Additionally, Adjusted EBITDA is not intended to be a measure of free cash flow for management's discretionary use, as it does not include certain cash requirements such as interest payments, tax payments and debt service requirements. Adjusted EBITDA is defined as net income attributable to Masonite adjusted to exclude the following items: depreciation; amortization; share based compensation expense; loss (gain) on disposal of property, plant and equipment; registration and listing fees; restructuring costs; asset impairment; loss (gain) on disposal of subsidiaries; interest expense (income), net; loss on extinguishment of debt; other expense (income), net; income tax expense (benefit); other items; loss (income) from discontinued operations, net of tax; and net income (loss) attributable to non-controlling interest. This definition of Adjusted EBITDA differs from the definitions of EBITDA contained in the indentures governing the 2028 and 2030 Notes and the credit agreement governing the ABL Facility. Adjusted EBITDA, as calculated under our ABL Facility or senior notes would also include, among other things, additional add-backs for amounts related to: cost savings projected by us in good faith to be realized as a result of actions taken or expected to be taken prior to or during the relevant period; fees and expenses in connection with certain plant closures and layoffs; and the amount of any restructuring charges, integration costs or other business optimization expenses or reserve deducted in the relevant period in computing consolidated net income, including any one-time costs incurred in connection with acquisitions. Adjusted EBITDA is used to evaluate and compare the performance of the segments and it is one of the primary measures used to determine employee incentive compensation. Intersegment sales are recorded using market prices. We believe that Adjusted EBITDA, from an operations standpoint, provides an appropriate way to measure and assess segment performance. Our management team has established the practice of reviewing the performance of each segment based on the measures of net sales and Adjusted EBITDA. We believe that Adjusted EBITDA is useful to users of the consolidated financial statements because it provides the same information that we use internally to evaluate and compare the performance of the segments and it is one of the primary measures used to determine employee incentive compensation.

The tables below set forth a reconciliation of net income (loss) attributable to Masonite to Adjusted EBITDA for the periods indicated.

Adjusted EBITDA margin is defined as Adjusted EBITDA divided by Net Sales. Management believes this measure provides supplemental information on how successfully we operate our business.

Adjusted EPS is diluted earnings per common share attributable to Masonite (EPS) less restructuring costs, asset impairment charges, loss (gain) on disposal of subsidiaries, loss on extinguishment of debt and other items, if any, that do not relate to Masonite’s underlying business performance (each net of related tax expense (benefit)). Management uses this measure to evaluate the overall performance of the Company and believes this measure provides investors with helpful supplemental information regarding the underlying performance of the Company from period to period. This measure may be inconsistent with similar measures presented by other companies.

Certain amounts in the Condensed Consolidated Financial Statements and associated tables may not foot due to rounding. All percentages have been calculated using unrounded amounts.

MASONITE INTERNATIONAL CORPORATION SALES RECONCILIATION AND ADJUSTED EBITDA BY REPORTABLE SEGMENT (In millions of U.S. dollars) (Unaudited)
	North American Residential				Europe				Architectural				Corporate and Other				Total				% Change
Second quarter 2021 net sales	$	493.4			$	87.8			$	75.8			$	5.4			$	662.4
Acquisitions, net of divestitures		—				(5.4	)			—				—				(5.4	)		(0.8	%)
Volume		16.1				(14.0	)			(9.8	)			—				(7.6	)		(1.1	%)
Average unit price		102.2				14.0				9.9				1.4				127.4			19.2	%
Components		(0.1	)			0.1				(0.2	)			(1.9	)			(2.1	)		(0.3	%)
Foreign exchange		(3.8	)			(8.6	)			(0.3	)			(0.1	)			(12.8	)		(1.9	%)
Second quarter 2022 net sales	$	607.8			$	73.9			$	75.4			$	4.8			$	761.9
Year over year change, net sales		23.2	%			(15.8	%)			(0.5	%)			(11.1	%)			15.0	%
Second quarter 2021 Adjusted EBITDA	$	100.0			$	16.6			$	0.5			$	(6.5	)		$	110.6
Second quarter 2022 Adjusted EBITDA		125.0				8.6				0.1				(15.5	)			118.1
Year over year change, Adjusted EBITDA		24.9	%			(48.3	%)			(83.8	%)			136.7	%			6.8	%

	North American Residential				Europe				Architectural				Corporate and Other				Total				% Change
Year to date 2021 net sales	$	969.9			$	176.3			$	150.8			$	11.7			$	1,308.7
Acquisitions, net of divestitures		—				(11.7	)			—				—				(11.7	)		(0.9	%)
Volume		28.5				(27.8	)			(17.3	)			—				(16.5	)		(1.3	%)
Average unit price		181.7				28.0				16.3				1.3				227.3			17.4	%
Components		0.3				0.8				(3.1	)			(1.9	)			(3.9	)		(0.3	%)
Foreign exchange		(4.1	)			(11.3	)			(0.3	)			(0.1	)			(15.8	)		(1.2	%)
Year to date 2022 net sales	$	1,176.3			$	154.3			$	146.4			$	11.0			$	1,488.1
Year over year growth, net sales		21.3	%			(12.5	%)			(2.9	%)			(6.0	%)			13.7	%
Year to date 2021 Adjusted EBITDA	$	194.5			$	33.3			$	2.5			$	(17.8	)		$	212.6
Year to date 2022 Adjusted EBITDA		252.6				20.4				(2.8	)			(27.4	)			242.9
Year over year growth, Adjusted EBITDA		29.9	%			(38.8	%)			(214.0	%)			54.1	%			14.2	%

MASONITE INTERNATIONAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands of U.S. dollars, except share and per share amounts) (Unaudited)
	Three Months Ended								Six Months Ended
	July 3, 2022				July 4, 2021				July 3, 2022				July 4, 2021
Net sales	$	761,874			$	662,410			$	1,488,091			$	1,308,747
Cost of goods sold		582,389				498,068				1,124,357				985,767
Gross profit		179,485				164,342				363,734				322,980
Gross profit as a % of net sales		23.6	%			24.8	%			24.4	%			24.7	%
Selling, general and administration expenses		90,330				82,511				173,576				166,142
Selling, general and administration expenses as a % of net sales		11.9	%			12.5	%			11.7	%			12.7	%
Restructuring (benefit) costs		(61	)			2,192				(80	)			3,835
Asset impairment		—				10,374				—				10,374
Loss on disposal of subsidiaries		—				8,590				—				8,590
Operating income		89,216				60,675				190,238				134,039
Interest expense, net		10,593				11,918				20,832				23,864
Other (income) expense, net		(400	)			(1,586	)			(1,815	)			(2,929	)
Income before income tax expense		79,023				50,343				171,221				113,104
Income tax expense		19,649				14,246				43,126				28,859
Net income		59,374				36,097				128,095				84,245
Less: net income attributable to non-controlling interests		859				1,051				1,998				2,218
Net income attributable to Masonite	$	58,515			$	35,046			$	126,097			$	82,027
Basic earnings per common share attributable to Masonite	$	2.60			$	1.43			$	5.53			$	3.35
Diluted earnings per common share attributable to Masonite	$	2.58			$	1.41			$	5.47			$	3.30
Shares used in computing basic earnings per share		22,525,333				24,450,542				22,803,403				24,460,098
Shares used in computing diluted earnings per share		22,704,953				24,842,019				23,058,031				24,883,814

MASONITE INTERNATIONAL CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands of U.S. dollars, except share amounts) (Unaudited)
ASSETS	July 3, 2022				January 2, 2022
Current assets:
Cash and cash equivalents	$	231,541			$	381,395
Restricted cash		11,099				10,110
Accounts receivable, net		405,762				343,414
Inventories, net		431,266				347,476
Prepaid expenses and other assets		54,670				50,399
Income taxes receivable		3,340				1,332
Total current assets		1,137,678				1,134,126
Property, plant and equipment, net		616,015				626,797
Operating lease right-of-use assets		168,700				176,445
Investment in equity investees		17,604				14,994
Goodwill		69,921				77,102
Intangible assets, net		136,962				150,487
Deferred income taxes		24,238				20,764
Other assets		48,119				45,903
Total assets	$	2,219,237			$	2,246,618
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	145,628			$	138,788
Accrued expenses		245,505				237,300
Income taxes payable		8,004				8,551
Total current liabilities		399,137				384,639
Long-term debt		866,362				865,721
Long-term operating lease liabilities		157,987				165,670
Deferred income taxes		81,092				77,936
Other liabilities		51,594				52,874
Total liabilities		1,556,172				1,546,840
Commitments and Contingencies
Equity:
Share capital: unlimited shares authorized, no par value, 22,259,356 and 23,623,887 shares issued and outstanding as of July 3, 2022, and January 2, 2022, respectively		521,243				543,400
Additional paid-in capital		216,653				222,177
Retained earnings		46,271				24,244
Accumulated other comprehensive loss		(132,721	)			(101,582	)
Total equity attributable to Masonite		651,446				688,239
Equity attributable to non-controlling interests		11,619				11,539
Total equity		663,065				699,778
Total liabilities and equity	$	2,219,237			$	2,246,618

MASONITE INTERNATIONAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands of U.S. dollars, except share amounts) (Unaudited)
	Six Months Ended
Cash flows from operating activities:	July 3, 2022				July 4, 2021
Net income	$	128,095			$	84,245
Adjustments to reconcile net income to net cash flow provided by operating activities:
Loss on disposal of subsidiaries		—				8,590
Depreciation		34,516				35,511
Amortization		8,908				11,326
Share based compensation expense		10,695				9,124
Deferred income taxes		1,042				12,164
Unrealized foreign exchange loss (gain)		356				(372	)
Share of income from equity investees, net of tax		(2,610	)			(1,339	)
Dividend from equity investee		—				4,500
Pension and post-retirement funding, net of expense		—				(1,873	)
Non-cash accruals and interest		(114	)			839
Gain on sale of property, plant and equipment		(1,400	)			(210	)
Asset impairment		—				10,374
Changes in assets and liabilities, net of acquisitions:
Accounts receivable		(67,611	)			(72,437	)
Inventories		(89,508	)			(24,182	)
Prepaid expenses and other assets		(4,821	)			(536	)
Accounts payable and accrued expenses		23,302				(28,651	)
Other assets and liabilities		(6,736	)			(13,863	)
Net cash flow provided by operating activities		34,114				33,210
Cash flows from investing activities:
Additions to property, plant and equipment		(39,955	)			(29,659	)
Acquisition of businesses, net of cash acquired		—				(160	)
Proceeds from sale of subsidiaries, net of cash disposed		—				7,001
Proceeds from sale of property, plant and equipment		6,394				3,392
Other investing activities		(1,152	)			(1,247	)
Net cash flow used in investing activities		(34,713	)			(20,673	)
Cash flows from financing activities:
Repayments of long-term debt		—				(945	)
Tax withholding on share based awards		(3,109	)			(3,944	)
Distributions to non-controlling interests		(2,559	)			(1,804	)
Repurchases of common shares		(140,000	)			(42,026	)
Net cash flow used in financing activities		(145,668	)			(48,719	)
Net foreign currency translation adjustment on cash		(2,598	)			106
Decrease in cash, cash equivalents and restricted cash		(148,865	)			(36,076	)
Cash, cash equivalents and restricted cash, beginning of period		391,505				375,234
Cash, cash equivalents and restricted cash, at end of period	$	242,640			$	339,158

MASONITE INTERNATIONAL CORPORATION RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES (In thousands of U.S. dollars, except share and per share amounts) (Unaudited)
	Three Months Ended								Six Months Ended
(In thousands)	July 3, 2022				July 4, 2021				July 3, 2022				July 4, 2021
Net income attributable to Masonite	$	58,515			$	35,046			$	126,097			$	82,027
Add: Adjustments to net income attributable to Masonite:
Restructuring (benefit) costs		(61	)			2,192				(80	)			3,835
Asset impairment		—				10,374				—				10,374
Loss on disposal of subsidiaries		—				8,590				—				8,590
Income tax expense as a result of UK tax rate change		—				2,430				—				2,430
Income tax impact of adjustments		15				(3,285	)			20				(3,721	)
Adjusted net income attributable to Masonite	$	58,469			$	55,347			$	126,037			$	103,535
Diluted earnings per common share attributable to Masonite ("EPS")	$	2.58			$	1.41			$	5.47			$	3.30
Diluted adjusted earnings per common share attributable to Masonite ("Adjusted EPS")	$	2.58			$	2.23			$	5.47			$	4.16
Shares used in computing EPS and Adjusted EPS		22,704,953				24,842,019				23,058,031				24,883,814

The weighted average number of shares outstanding utilized for the diluted EPS and diluted Adjusted EPS calculation contemplates the exercise of all currently outstanding SARs and the conversion of all RSUs. The dilutive effect of such equity awards is calculated based on the weighted average share price for each fiscal period using the treasury stock method. For all periods presented, common shares issuable for stock instruments which would have had an anti-dilutive impact under the treasury stock method have been excluded from the computation of diluted earnings per share.

	Three Months Ended July 3, 2022
(In thousands)	North American Residential				Europe				Architectural				Corporate & Other				Total
Net income (loss) attributable to Masonite	$	112,611			$	3,446			$	(3,042	)		$	(54,500	)		$	58,515
Plus:
Depreciation		9,987				2,172				2,764				2,321				17,244
Amortization		467				3,059				219				551				4,296
Share based compensation expense		—				—				—				5,976				5,976
Loss (gain) on disposal of property, plant and equipment		1,399				(1	)			136				(80	)			1,454
Restructuring (benefit) costs		(90	)			(6	)			1				34				(61	)
Interest expense, net		—				—				—				10,593				10,593
Other (income) expense, net		(2	)			(104	)			—				(294	)			(400	)
Income tax expense		—				—				—				19,649				19,649
Net income attributable to non-controlling interest		602				—				—				257				859
Adjusted EBITDA	$	124,974			$	8,566			$	78			$	(15,493	)		$	118,125

	Three Months Ended July 4, 2021
(In thousands)	North American Residential				Europe				Architectural				Corporate & Other				Total
Net income (loss) attributable to Masonite	$	89,236			$	1,454			$	(14,626	)		$	(41,018	)		$	35,046
Plus:
Depreciation		9,160				2,506				2,608				2,958				17,232
Amortization		497				4,258				1,147				506				6,408
Share based compensation expense		—				—				—				4,706				4,706
Loss on disposal of property, plant and equipment		36				16				—				335				387
Restructuring (benefit) costs		352				—				1,701				139				2,192
Asset impairment		—				—				9,645				729				10,374
Loss on disposal of subsidiaries		—				8,590				—				—				8,590
Interest expense, net		—				—				—				11,918				11,918
Other (income) expense, net		—				(240	)			5				(1,351	)			(1,586	)
Income tax expense		—				—				—				14,246				14,246
Net income attributable to non-controlling interest		764				—				—				287				1,051
Adjusted EBITDA	$	100,045			$	16,584			$	480			$	(6,545	)		$	110,564

	Six Months Ended July 3, 2022
(In thousands)	North American Residential				Europe				Architectural				Corporate & Other				Total
Net income (loss) attributable to Masonite	$	229,644			$	9,178			$	(5,868	)		$	(106,857	)		$	126,097
Plus:
Depreciation		19,951				4,513				5,643				4,409				34,516
Amortization		1,086				6,329				401				1,092				8,908
Share based compensation expense		—				—				—				10,695				10,695
Loss (gain) on disposal of property, plant and equipment		1,737				(13	)			(3,044	)			(80	)			(1,400	)
Restructuring (benefit) costs		(181	)			—				48				53				(80	)
Interest expense, net		—				—				—				20,832				20,832
Other (income) expense, net		(792	)			402				—				(1,425	)			(1,815	)
Income tax expense		—				—				—				43,126				43,126
Net income attributable to non-controlling interest		1,196				—				—				802				1,998
Adjusted EBITDA	$	252,641			$	20,409			$	(2,820	)		$	(27,353	)		$	242,877

	Six Months Ended July 4, 2021
(In thousands)	North American Residential				Europe				Architectural				Corporate & Other				Total
Net income (loss) attributable to Masonite	$	173,209			$	12,862			$	(18,439	)		$	(85,605	)		$	82,027
Plus:
Depreciation		18,671				5,091				5,271				6,478				35,511
Amortization		912				7,143				2,289				982				11,326
Share based compensation expense		—				—				—				9,124				9,124
Loss (gain) on disposal of property, plant and equipment		124				12				149				(495	)			(210	)
Restructuring (benefit) costs		(9	)			—				3,554				290				3,835
Asset impairment		—				—				9,645				729				10,374
Loss on disposal of subsidiaries		—				8,590				—				—				8,590
Interest expense, net		—				—				—				23,864				23,864
Other (income) expense, net		—				(359	)			5				(2,575	)			(2,929	)
Income tax expense		—				—				—				28,859				28,859
Net income attributable to non-controlling interest		1,620				—				—				598				2,218
Adjusted EBITDA	$	194,527			$	33,339			$	2,474			$	(17,751	)		$	212,589

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220808005735/en/

Richard Leland

VP, FINANCE AND TREASURER

rleland@masonite.com

813.739.1808

Marcus Devlin

DIRECTOR, INVESTOR RELATIONS

mdevlin@masonite.com

813.371.5839

Source: Masonite International Corporation

FAQ

What were Masonite's net sales for Q2 2022?

Masonite reported net sales of $762 million for Q2 2022, reflecting a 15% increase year-over-year.

How much did Masonite's net income grow in Q2 2022?

Net income attributable to Masonite increased by 67% to $59 million in Q2 2022.

What is the diluted earnings per share for Masonite in Q2 2022?

Masonite's diluted earnings per share for Q2 2022 was $2.58, an increase of 83% compared to the previous year.

What impact did share repurchases have on Masonite's stock?

Masonite completed an accelerated share repurchase of approximately 1.2 million shares, which may enhance shareholder value.

What are Masonite's future growth initiatives?

Masonite plans to support further growth through new products, marketing initiatives, and thoughtful price-cost management.