Masonite International Corporation Reports Solid Second Quarter Results Including Record Cash Flow Performance
-
Net sales declined
3% year over year due to continued softness in end-market demand - Continued execution of our 2023 Playbook initiatives yielding margin improvement
-
Delivered year to date operating cash flow of
$218 million - Announced upcoming Investor Day on September 19, 2023
($ in millions, except per share amounts) |
2Q23 |
|
2Q22 |
|
% Change |
|
YTD 2023 |
|
YTD 2022 |
|
% Change |
Net sales |
|
|
|
|
( |
|
|
|
|
|
( |
Net income attributable to Masonite |
|
|
|
|
( |
|
|
|
|
|
( |
% of net sales |
|
|
|
|
(120 bps) |
|
|
|
|
|
(260 bps) |
Diluted earnings per share |
|
|
|
|
( |
|
|
|
|
|
( |
Adjusted EPS* |
|
|
|
|
( |
|
|
|
|
|
( |
Adjusted EBITDA* |
|
|
|
|
—% |
|
|
|
|
|
( |
% of net sales |
|
|
|
|
+50 bps |
|
|
|
|
|
(100 bps) |
“Ongoing execution of our 2023 Playbook initiatives allowed us to deliver another strong quarter, despite the continued softness in end-market demand,” said Howard Heckes, President and CEO. “We also made progress on our longer-term strategic initiatives as we began the nationwide retail rollout of our Masonite Performance Door System and further reshaped our North American Residential manufacturing footprint. Additionally, I'm especially pleased with the significant cash flow we have generated year to date thanks to early success on our multi-year program to reduce working capital levels across the Company. We remain confident that our 2023 Playbook and Doors That Do MoreTM strategy are positioning Masonite well both operationally and financially as demand strengthens.”
Second Quarter 2023 Discussion
(All references to percent increase or decrease in the discussion below compare current second quarter 2023 results to those realized in the second quarter of 2022 unless otherwise noted.)
Consolidated net sales were
-
North American Residential net sales were
$585 million 4% decrease driven by an18% decrease in volume and a combined1% decrease from unfavorable foreign exchange and lower component sales, partially offset by a10% increase from the Endura acquisition and a5% increase in AUP. -
Europe net sales were$66 million 11% decrease driven by a9% decrease in volume and a combined2% decrease from lower component sales and unfavorable foreign exchange. -
Architectural net sales were
$88 million 16% increase driven by a24% increase in AUP, partially offset by a5% decrease from lower component sales and a3% decrease in volume.
Total Company gross profit was
Selling, general and administration (SG&A) expenses were
Net income attributable to Masonite was
Adjusted EBITDA* was
Balance Sheet, Cash Flow and Capital Allocation
At the end of the first quarter, total available liquidity was
Cash provided by operations was
During the second quarter, Masonite repurchased approximately 159,145 shares of stock for
Masonite Earnings Conference Call
The Company will hold a live conference call and webcast on August 9, 2023. The live audio webcast will begin at 9:00 a.m. Eastern Time and can be accessed, together with the presentation, on the Masonite website www.masonite.com.
Telephone access to the live call will be available at 877-407-8289 (in the
A telephone replay will be available approximately one hour following completion of the call through August 23, 2023. To access the replay, please dial 877-660-6853 (in the
2023 Virtual Investor Day
Masonite will host a virtual Investor Day on Tuesday, September 19, 2023 from 9:00 a.m. to 12:00 p.m. (Eastern Time). The event will include presentations by members of the Masonite executive team on the Company's strategy and long-term growth framework as well as a question-and-answer session.
Investors are encouraged to register in advance and indicate if they would like to receive an invitation to meet with management in person on September 20 and 21, 2023 in
A replay of the virtual Investor Day webcast and presentations will be available following the event at investor.masonite.com.
* 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, door system components and door systems 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 approximately 7,000 customers globally. Additional information about Masonite can be found at www.masonite.com.
Forward-looking Statements
This press release contains forward-looking information and other forward-looking statements within the meaning of applicable Canadian and/or
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 from weather and climate change; our ability to successfully consummate and integrate acquisitions and to effectuate dispositions; changes in prices of raw materials and fuel; tariffs and evolving trade policy and friction between
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, as applicable: 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 agreements governing the ABL Facility and Term Loan 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 (Unaudited) |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
North
|
|
|
|
Architectural |
|
Corporate
|
|
Total |
|
% Change |
|||||||||||
Second quarter 2022 net sales |
$ |
607.8 |
|
|
$ |
73.9 |
|
|
$ |
75.4 |
|
|
$ |
4.8 |
|
|
$ |
761.9 |
|
|
|
|
Acquisitions, net of divestitures |
|
59.4 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
59.4 |
|
|
7.8 |
% |
Volume |
|
(107.4 |
) |
|
|
(7.0 |
) |
|
|
(2.0 |
) |
|
|
— |
|
|
|
(116.4 |
) |
|
(15.3 |
%) |
Average unit price |
|
29.2 |
|
|
|
0.3 |
|
|
|
18.4 |
|
|
|
0.3 |
|
|
|
48.2 |
|
|
6.3 |
% |
Components |
|
(0.8 |
) |
|
|
(1.1 |
) |
|
|
(3.5 |
) |
|
|
(2.0 |
) |
|
|
(7.4 |
) |
|
(1.0 |
%) |
Foreign exchange |
|
(3.2 |
) |
|
|
(0.1 |
) |
|
|
(0.5 |
) |
|
|
— |
|
|
|
(3.8 |
) |
|
(0.5 |
%) |
Second quarter 2023 net sales |
$ |
585.0 |
|
|
$ |
66.0 |
|
|
$ |
87.8 |
|
|
$ |
3.1 |
|
|
$ |
741.9 |
|
|
|
|
Year over year change, net sales |
|
(3.8 |
%) |
|
|
(10.7 |
%) |
|
|
16.4 |
% |
|
|
(35.4 |
%) |
|
|
(2.6 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Second quarter 2022 Adjusted EBITDA |
$ |
125.0 |
|
|
$ |
8.6 |
|
|
$ |
0.1 |
|
|
$ |
(15.5 |
) |
|
$ |
118.1 |
|
|
|
|
Second quarter 2023 Adjusted EBITDA |
|
117.6 |
|
|
|
2.7 |
|
|
|
7.3 |
|
|
|
(9.1 |
) |
|
|
118.5 |
|
|
|
|
Year over year change, Adjusted EBITDA |
|
(5.9 |
%) |
|
|
(68.6 |
%) |
|
|
9,241.0 |
% |
|
|
nm |
|
|
|
0.3 |
% |
|
|
|
|
North
|
|
|
|
Architectural |
|
Corporate
|
|
Total |
|
% Change |
|||||||||||
Year to date 2022 net sales |
$ |
1,176.3 |
|
|
$ |
154.3 |
|
|
$ |
146.4 |
|
|
$ |
11.0 |
|
|
$ |
1,488.1 |
|
|
|
|
Acquisitions, net of divestitures |
|
119.2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
119.2 |
|
|
8.0 |
% |
Volume |
|
(206.8 |
) |
|
|
(19.4 |
) |
|
|
(3.2 |
) |
|
|
— |
|
|
|
(229.4 |
) |
|
(15.4 |
%) |
Average unit price |
|
76.0 |
|
|
|
3.3 |
|
|
|
38.1 |
|
|
|
1.9 |
|
|
|
119.3 |
|
|
8.0 |
% |
Components |
|
(3.3 |
) |
|
|
(2.2 |
) |
|
|
(4.3 |
) |
|
|
(4.5 |
) |
|
|
(14.3 |
) |
|
(1.0 |
%) |
Foreign exchange |
|
(7.4 |
) |
|
|
(6.3 |
) |
|
|
(1.3 |
) |
|
|
— |
|
|
|
(15.0 |
) |
|
(1.0 |
%) |
Year to date 2023 net sales |
$ |
1,154.0 |
|
|
$ |
129.7 |
|
|
$ |
175.7 |
|
|
$ |
8.4 |
|
|
$ |
1,467.9 |
|
|
|
|
Year over year growth, net sales |
|
(1.9 |
%) |
|
|
(15.9 |
%) |
|
|
20.0 |
% |
|
|
(23.6 |
%) |
|
|
(1.4 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Year to date 2022 Adjusted EBITDA |
$ |
252.6 |
|
|
$ |
20.4 |
|
|
$ |
(2.8 |
) |
|
$ |
(27.4 |
) |
|
$ |
242.9 |
|
|
|
|
Year to date 2023 Adjusted EBITDA |
|
225.5 |
|
|
|
7.8 |
|
|
|
12.6 |
|
|
|
(21.3 |
) |
|
|
224.6 |
|
|
|
|
Year over year growth, Adjusted EBITDA |
|
(10.7 |
%) |
|
|
(61.6 |
%) |
|
|
nm |
|
|
|
nm |
|
|
|
(7.5 |
%) |
|
|
|
MASONITE INTERNATIONAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of (Unaudited) |
|||||||||||||||
|
|
|
|
||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
July 2, 2023 |
|
July 3, 2022 |
|
July 2, 2023 |
|
July 3, 2022 |
||||||||
Net sales |
$ |
741,884 |
|
|
$ |
761,874 |
|
|
$ |
1,467,868 |
|
|
$ |
1,488,091 |
|
Cost of goods sold |
|
563,517 |
|
|
|
582,389 |
|
|
|
1,119,010 |
|
|
|
1,124,357 |
|
Gross profit |
|
178,367 |
|
|
|
179,485 |
|
|
|
348,858 |
|
|
|
363,734 |
|
Gross profit as a % of net sales |
|
24.0 |
% |
|
|
23.6 |
% |
|
|
23.8 |
% |
|
|
24.4 |
% |
|
|
|
|
|
|
|
|
||||||||
Selling, general and administration expenses |
|
98,746 |
|
|
|
90,330 |
|
|
|
200,451 |
|
|
|
173,576 |
|
Selling, general and administration expenses as a % of net sales |
|
13.3 |
% |
|
|
11.9 |
% |
|
|
13.7 |
% |
|
|
11.7 |
% |
|
|
|
|
|
|
|
|
||||||||
Restructuring costs (benefit) |
|
3,065 |
|
|
|
(61 |
) |
|
|
6,743 |
|
|
|
(80 |
) |
Operating income |
|
76,556 |
|
|
|
89,216 |
|
|
|
141,664 |
|
|
|
190,238 |
|
Interest expense, net |
|
13,488 |
|
|
|
10,593 |
|
|
|
27,740 |
|
|
|
20,832 |
|
Other (income) expense, net |
|
(550 |
) |
|
|
(400 |
) |
|
|
(498 |
) |
|
|
(1,815 |
) |
Income before income tax expense |
|
63,618 |
|
|
|
79,023 |
|
|
|
114,422 |
|
|
|
171,221 |
|
Income tax expense |
|
14,673 |
|
|
|
19,649 |
|
|
|
26,033 |
|
|
|
43,126 |
|
Net income |
|
48,945 |
|
|
|
59,374 |
|
|
|
88,389 |
|
|
|
128,095 |
|
Less: net income attributable to non-controlling interests |
|
700 |
|
|
|
859 |
|
|
|
1,653 |
|
|
|
1,998 |
|
Net income attributable to Masonite |
$ |
48,245 |
|
|
$ |
58,515 |
|
|
$ |
86,736 |
|
|
$ |
126,097 |
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per common share attributable to Masonite |
$ |
2.19 |
|
|
$ |
2.60 |
|
|
$ |
3.92 |
|
|
$ |
5.53 |
|
Diluted earnings per common share attributable to Masonite |
$ |
2.16 |
|
|
$ |
2.58 |
|
|
$ |
3.87 |
|
|
$ |
5.47 |
|
|
|
|
|
|
|
|
|
||||||||
Shares used in computing basic earnings per share |
|
22,071,667 |
|
|
|
22,525,333 |
|
|
|
22,127,368 |
|
|
|
22,803,403 |
|
Shares used in computing diluted earnings per share |
|
22,349,192 |
|
|
|
22,704,953 |
|
|
|
22,420,035 |
|
|
|
23,058,031 |
|
MASONITE INTERNATIONAL CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of (Unaudited) |
|||||||
|
|
|
|
||||
ASSETS |
July 2, 2023 |
|
January 1, 2023 |
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
317,157 |
|
|
$ |
296,922 |
|
Restricted cash |
|
11,587 |
|
|
|
11,999 |
|
Accounts receivable, net |
|
374,794 |
|
|
|
375,918 |
|
Inventories, net |
|
378,705 |
|
|
|
406,828 |
|
Prepaid expenses and other assets |
|
66,982 |
|
|
|
55,051 |
|
Income taxes receivable |
|
21,266 |
|
|
|
16,922 |
|
Total current assets |
|
1,170,491 |
|
|
|
1,163,640 |
|
Property, plant and equipment, net |
|
735,932 |
|
|
|
652,329 |
|
Operating lease right-of-use assets |
|
191,190 |
|
|
|
160,695 |
|
Investment in equity investees |
|
18,058 |
|
|
|
16,111 |
|
Goodwill |
|
257,527 |
|
|
|
69,868 |
|
Intangible assets, net |
|
254,156 |
|
|
|
136,056 |
|
Deferred income taxes |
|
21,400 |
|
|
|
16,133 |
|
Other assets |
|
34,191 |
|
|
|
33,346 |
|
Total assets |
$ |
2,682,945 |
|
|
$ |
2,248,178 |
|
|
|
|
|
||||
LIABILITIES AND EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
137,895 |
|
|
$ |
111,526 |
|
Accrued expenses |
|
227,833 |
|
|
|
223,046 |
|
Income taxes payable |
|
6,520 |
|
|
|
14,361 |
|
Current portion of long-term debt |
|
37,500 |
|
|
|
— |
|
Total current liabilities |
|
409,748 |
|
|
|
348,933 |
|
Long-term debt |
|
1,067,183 |
|
|
|
866,116 |
|
Long-term operating lease liabilities |
|
178,820 |
|
|
|
151,242 |
|
Deferred income taxes |
|
120,963 |
|
|
|
79,590 |
|
Other liabilities |
|
76,406 |
|
|
|
59,515 |
|
Total liabilities |
|
1,853,120 |
|
|
|
1,505,396 |
|
Commitments and Contingencies |
|
|
|
||||
Equity: |
|
|
|
||||
Share capital: unlimited shares authorized, no par value, 21,995,420 and 22,155,035 shares issued and outstanding as of July 2, 2023, and January 1, 2023, respectively |
|
526,816 |
|
|
|
520,003 |
|
Additional paid-in capital |
|
223,540 |
|
|
|
226,514 |
|
Retained earnings |
|
193,262 |
|
|
|
127,826 |
|
Accumulated other comprehensive loss |
|
(124,581 |
) |
|
|
(142,224 |
) |
Total equity attributable to Masonite |
|
819,037 |
|
|
|
732,119 |
|
Equity attributable to non-controlling interests |
|
10,788 |
|
|
|
10,663 |
|
Total equity |
|
829,825 |
|
|
|
742,782 |
|
Total liabilities and equity |
$ |
2,682,945 |
|
|
$ |
2,248,178 |
|
MASONITE INTERNATIONAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of (Unaudited) |
|||||||
|
|
||||||
|
Six Months Ended |
||||||
Cash flows from operating activities: |
July 2, 2023 |
|
July 3, 2022 |
||||
Net income |
$ |
88,389 |
|
|
$ |
128,095 |
|
Adjustments to reconcile net income to net cash flow provided by operating activities: |
|
|
|
||||
Depreciation |
|
44,466 |
|
|
|
34,516 |
|
Amortization |
|
14,463 |
|
|
|
8,908 |
|
Share based compensation expense |
|
13,157 |
|
|
|
10,695 |
|
Deferred income taxes |
|
(9,457 |
) |
|
|
1,042 |
|
Unrealized foreign exchange (gain) loss |
|
(146 |
) |
|
|
356 |
|
Share of income from equity investees, net of tax |
|
(1,990 |
) |
|
|
(2,610 |
) |
Dividend from equity investee |
|
3,150 |
|
|
|
— |
|
Pension and post-retirement funding, net of expense |
|
(956 |
) |
|
|
— |
|
Non-cash accruals and interest |
|
1,861 |
|
|
|
(114 |
) |
Loss (gain) on sale of property, plant and equipment |
|
1,540 |
|
|
|
(1,400 |
) |
Changes in assets and liabilities, net of acquisitions: |
|
|
|
||||
Accounts receivable |
|
13,474 |
|
|
|
(67,611 |
) |
Inventories |
|
75,709 |
|
|
|
(89,508 |
) |
Prepaid expenses and other assets |
|
(22,152 |
) |
|
|
(4,821 |
) |
Accounts payable and accrued expenses |
|
9,918 |
|
|
|
23,302 |
|
Other assets and liabilities |
|
(13,614 |
) |
|
|
(6,736 |
) |
Net cash flow provided by operating activities |
|
217,812 |
|
|
|
34,114 |
|
Cash flows from investing activities: |
|
|
|
||||
Additions to property, plant and equipment |
|
(58,056 |
) |
|
|
(39,955 |
) |
Acquisition of businesses, net of cash acquired |
|
(354,419 |
) |
|
|
— |
|
Proceeds from sale of property, plant and equipment |
|
13 |
|
|
|
6,394 |
|
Proceeds from repayment of note receivable |
|
12,000 |
|
|
|
— |
|
Other investing activities |
|
(3,834 |
) |
|
|
(1,152 |
) |
Net cash flow used in investing activities |
|
(404,296 |
) |
|
|
(34,713 |
) |
Cash flows from financing activities: |
|
|
|
||||
Proceeds from issuance of long-term debt |
|
250,000 |
|
|
|
— |
|
Repayments of long-term debt |
|
(9,375 |
) |
|
|
— |
|
Payment of debt issuance costs |
|
(3,628 |
) |
|
|
— |
|
Proceeds from borrowings on revolving credit facilities |
|
100,000 |
|
|
|
— |
|
Repayments of borrowings on revolving credit facilities |
|
(100,000 |
) |
|
|
— |
|
Tax withholding on share based awards |
|
(2,065 |
) |
|
|
(3,109 |
) |
Distributions to non-controlling interests |
|
(1,684 |
) |
|
|
(2,559 |
) |
Repurchases of common shares |
|
(29,133 |
) |
|
|
(140,000 |
) |
Net cash flow provided by (used in) financing activities |
|
204,115 |
|
|
|
(145,668 |
) |
Net foreign currency translation adjustment on cash |
|
2,192 |
|
|
|
(2,598 |
) |
Increase (decrease) in cash, cash equivalents and restricted cash |
|
19,823 |
|
|
|
(148,865 |
) |
Cash, cash equivalents and restricted cash, beginning of period |
|
308,921 |
|
|
|
391,505 |
|
Cash, cash equivalents and restricted cash, at end of period |
$ |
328,744 |
|
|
$ |
242,640 |
|
MASONITE INTERNATIONAL CORPORATION RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
(In thousands of (Unaudited) |
|||||||||||||||
|
|
|
|
||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
(In thousands) |
July 2, 2023 |
|
July 3, 2022 |
|
July 2, 2023 |
|
July 3, 2022 |
||||||||
Net income attributable to Masonite |
$ |
48,245 |
|
|
$ |
58,515 |
|
|
$ |
86,736 |
|
|
$ |
126,097 |
|
|
|
|
|
|
|
|
|
||||||||
Add: Adjustments to net income attributable to Masonite: |
|
|
|
|
|
|
|
||||||||
Restructuring costs (benefit) |
|
3,065 |
|
|
|
(61 |
) |
|
|
6,743 |
|
|
|
(80 |
) |
Other items (1) |
|
1,208 |
|
|
|
— |
|
|
|
2,589 |
|
|
|
— |
|
Income tax impact of adjustments |
|
(1,108 |
) |
|
|
15 |
|
|
|
(2,424 |
) |
|
|
20 |
|
Adjusted net income attributable to Masonite |
$ |
51,410 |
|
|
$ |
58,469 |
|
|
$ |
93,644 |
|
|
$ |
126,037 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per common share attributable to Masonite ("EPS") |
$ |
2.16 |
|
|
$ |
2.58 |
|
|
$ |
3.87 |
|
|
$ |
5.47 |
|
Diluted adjusted earnings per common share attributable to Masonite ("Adjusted EPS") |
$ |
2.30 |
|
|
$ |
2.58 |
|
|
$ |
4.18 |
|
|
$ |
5.47 |
|
|
|
|
|
|
|
|
|
||||||||
Shares used in computing EPS and Adjusted EPS |
|
22,349,192 |
|
|
|
22,704,953 |
|
|
|
22,420,035 |
|
|
|
23,058,031 |
|
____________ |
||
(1) |
Other items include |
|
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 2, 2023 |
||||||||||||||||||
(In thousands) |
North
|
|
|
|
Architectural |
|
Corporate &
|
|
Total |
||||||||||
Net income (loss) attributable to Masonite |
$ |
96,557 |
|
|
$ |
(3,230 |
) |
|
$ |
3,596 |
|
|
$ |
(48,678 |
) |
|
$ |
48,245 |
|
Plus: |
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation |
|
14,304 |
|
|
|
2,411 |
|
|
|
3,000 |
|
|
|
3,266 |
|
|
|
22,981 |
|
Amortization |
|
3,264 |
|
|
|
2,911 |
|
|
|
221 |
|
|
|
646 |
|
|
|
7,042 |
|
Share based compensation expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,103 |
|
|
|
7,103 |
|
Loss on disposal of property, plant and equipment |
|
19 |
|
|
|
58 |
|
|
|
290 |
|
|
|
135 |
|
|
|
502 |
|
Restructuring costs |
|
2,875 |
|
|
|
— |
|
|
|
179 |
|
|
|
11 |
|
|
|
3,065 |
|
Interest expense, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
13,488 |
|
|
|
13,488 |
|
Other expense (income), net |
|
1 |
|
|
|
541 |
|
|
|
— |
|
|
|
(1,092 |
) |
|
|
(550 |
) |
Income tax expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14,673 |
|
|
|
14,673 |
|
Other items (1) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,208 |
|
|
|
1,208 |
|
Net income attributable to non-controlling interest |
|
551 |
|
|
|
— |
|
|
|
— |
|
|
|
149 |
|
|
|
700 |
|
Adjusted EBITDA |
$ |
117,571 |
|
|
$ |
2,691 |
|
|
$ |
7,286 |
|
|
$ |
(9,091 |
) |
|
$ |
118,457 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales |
$ |
584,969 |
|
|
$ |
66,010 |
|
|
$ |
87,818 |
|
|
$ |
3,087 |
|
|
$ |
741,884 |
|
Adjusted EBITDA margin |
|
20.1 |
% |
|
|
4.1 |
% |
|
|
8.3 |
% |
|
|
nm |
|
|
|
16.0 |
% |
____________ |
||
(1) |
Other items include |
|
|
Three Months Ended July 3, 2022 |
||||||||||||||||||
(In thousands) |
North
|
|
|
|
Architectural |
|
Corporate &
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales |
|
607,776 |
|
|
|
73,853 |
|
|
|
75,425 |
|
|
|
4,820 |
|
|
|
761,874 |
|
Adjusted EBITDA margin |
|
20.6 |
% |
|
|
11.6 |
% |
|
|
0.1 |
% |
|
|
nm |
|
|
|
15.5 |
% |
|
Six Months Ended July 2, 2023 |
||||||||||||||||||
(In thousands) |
North
|
|
|
|
Architectural |
|
Corporate &
|
|
Total |
||||||||||
Net income (loss) attributable to Masonite |
$ |
183,312 |
|
|
$ |
(3,027 |
) |
|
$ |
5,061 |
|
|
$ |
(98,610 |
) |
|
$ |
86,736 |
|
Plus: |
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation |
|
27,536 |
|
|
|
4,615 |
|
|
|
5,957 |
|
|
|
6,358 |
|
|
|
44,466 |
|
Amortization |
|
7,054 |
|
|
|
5,719 |
|
|
|
473 |
|
|
|
1,217 |
|
|
|
14,463 |
|
Share based compensation expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
13,157 |
|
|
|
13,157 |
|
Loss on disposal of property, plant and equipment |
|
1,059 |
|
|
|
55 |
|
|
|
277 |
|
|
|
149 |
|
|
|
1,540 |
|
Restructuring costs |
|
5,255 |
|
|
|
— |
|
|
|
863 |
|
|
|
625 |
|
|
|
6,743 |
|
Interest expense, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
27,740 |
|
|
|
27,740 |
|
Other (income) expense, net |
|
(27 |
) |
|
|
480 |
|
|
|
— |
|
|
|
(951 |
) |
|
|
(498 |
) |
Income tax expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
26,033 |
|
|
|
26,033 |
|
Other items (1) |
|
— |
|
|
|
— |
|
|
|
5 |
|
|
|
2,584 |
|
|
|
2,589 |
|
Net income attributable to non-controlling interest |
|
1,263 |
|
|
|
— |
|
|
|
— |
|
|
|
390 |
|
|
|
1,653 |
|
Adjusted EBITDA |
$ |
225,452 |
|
|
$ |
7,842 |
|
|
$ |
12,636 |
|
|
$ |
(21,308 |
) |
|
$ |
224,622 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales to external customers |
$ |
1,154,008 |
|
|
$ |
129,704 |
|
|
$ |
175,720 |
|
|
$ |
8,436 |
|
|
$ |
1,467,868 |
|
Adjusted EBITDA margin |
|
19.5 |
% |
|
|
6.0 |
% |
|
|
7.2 |
% |
|
|
nm |
|
|
|
15.3 |
% |
____________ |
||
(1) |
Other items include |
|
|
Six Months Ended July 3, 2022 |
||||||||||||||||||
(In thousands) |
North
|
|
|
|
Architectural |
|
Corporate &
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales to external customers |
$ |
1,176,340 |
|
|
$ |
154,321 |
|
|
$ |
146,414 |
|
|
$ |
11,016 |
|
|
$ |
1,488,091 |
|
Adjusted EBITDA margin |
|
21.5 |
% |
|
|
13.2 |
% |
|
|
nm |
|
|
|
nm |
|
|
|
16.3 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230808886738/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
