Masonite International Corporation Reports Third Quarter Results Featuring Margin Resilience and Strong Operating Cash Flow

Rhea-AI Summary

Masonite International Corporation (NYSE: DOOR) announced a 4% decline in net sales year over year, but maintained strong focus on price-cost management. Operating cash flow for the year was $310 million. The company also revealed the acquisition of Fleetwood, a premium provider of glass door systems.

Positive

• The company maintained strong price-cost management to support margins despite challenging market conditions.
• Masonite delivered strong year-to-date operating cash flow of $310 million, indicating financial stability and efficient operations.
• The acquisition of Fleetwood, a premium provider of glass door systems, is expected to contribute approximately $150 million of incremental full-year revenue to Masonite in 2024.

Negative

• Net sales declined 4% year over year, which may indicate a struggle to maintain market share or demand for the company's products.
• Net income attributable to Masonite decreased by 27%, which may raise concerns about the company's profitability.

• Net sales declined 4% year over year amid challenging market conditions

• Maintained strict focus on price-cost management to support margins

• Delivered strong year-to-date operating cash flow of $310 million

• Announced strategic acquisition of Fleetwood, a premium provider of glass door systems

TAMPA, Fla.--(BUSINESS WIRE)-- Masonite International Corporation ("Masonite" or the "Company") (NYSE: DOOR) today announced results for the three and nine months ended October 1, 2023.

($ in millions, except per share amounts)		3Q23		3Q22		% Change		YTD 2023		YTD 2022		% Change
Net sales		$702		$728		(4%)		$2,170		$2,216		(2%)
Net income attributable to Masonite		$41		$57		(27%)		$128		$183		(30%)
% of net sales		5.9%		7.8%		(190 bps)		5.9%		8.3%		(240 bps)
Diluted earnings per share		$1.86		$2.54		(27%)		$5.73		$8.01		(28%)
Adjusted EPS*		$2.04		$2.53		(19%)		$6.23		$8.00		(22%)
Adjusted EBITDA*		$107		$112		(4%)		$332		$355		(6%)
% of net sales		15.3%		15.4%		(10 bps)		15.3%		16.0%		(70 bps)

“In the face of constrained end-market demand I am proud of our team's execution and ability to preserve margins and deliver record cash flow,” said Howard Heckes, President and CEO. “While maintaining sharp discipline on price-cost and working capital management, we are also delivering meaningful progress on our Doors That Do More^TM strategic initiatives. Subsequent to the quarter end, we were pleased to announce the acquisition of Fleetwood, a leading manufacturer of high-end glass doors for luxury homes. The Fleetwood product portfolio extends the reach of Masonite product offerings to the top end of the good, better, best spectrum and allows us to tap into new areas of long-term growth.”

Third Quarter 2023 Discussion

(All references to percent increase or decrease in the discussion below compare current third quarter 2023 results to those realized in the third quarter of 2022 unless otherwise noted.)

Consolidated net sales were $702 million in the third quarter of 2023, a 4% decrease resulting from a 13% decline in volume partially offset by an 8% increase from the Endura acquisition and a 1% increase in average unit price (AUP).

• North American Residential net sales were $553 million, a 5% decrease driven by a 14% decline in volume and a 1% decrease in AUP, partially offset by a 10% increase from the Endura acquisition.

• Europe net sales were $65 million, a 2% decrease driven by a 7% decline in volume and a 2% decrease from lower AUP, partially offset by a 7% increase from favorable foreign exchange.

• Architectural net sales were $81 million, a 4% increase driven by an 18% increase in AUP, partially offset by a 10% decline in volume and a 4% decrease from lower component sales.

Total Company gross profit was $166 million in the third quarter of 2023, down 1% as positive contributions from price-cost management initiatives and the Endura acquisition were more than offset by impacts of lower volumes. Gross profit margin, however, increased 60 basis points to 23.6%.

Selling, general and administration (SG&A) expenses were $99 million in the third quarter of 2023, an increase of 19% due primarily to incremental SG&A from Endura and an increase in acquisition and due diligence-related costs. SG&A as a percentage of net sales increased 260 basis points to 14% compared to the third quarter of 2022.

Net income attributable to Masonite was $41 million in the third quarter of 2023, a decrease of 27% primarily driven by higher depreciation, amortization, interest expense and costs associated with previously announced restructuring plans offset by lower income tax expense.

Adjusted EBITDA* was $107 million in the third quarter of 2023, a decrease of 4% driven primarily by the impact of volume declines. Diluted earnings per share were $1.86, a decrease of 27% compared to $2.54 in the comparable 2022 period. Diluted adjusted earnings per share* were $2.04 compared to $2.53 in the comparable 2022 period.

Balance Sheet, Cash Flow and Capital Allocation

At the end of the third quarter, total available liquidity was $663 million, inclusive of $360 million in unrestricted cash and $303 million of availability under our ABL Facility and AR Sales Program.

Cash provided by operations was $310 million for the nine months ended October 1, 2023, as compared to $83 million in the prior year period. Capital expenditures were $86 million for the nine months ended October 1, 2023, an increase from $66 million in the comparable period of 2022.

During the third quarter, Masonite repurchased approximately 106,329 shares of stock for $10 million, at an average price of $94.05.

Acquisition of Fleetwood

On October 19, 2023, the Company announced that its U.S. subsidiary had acquired Fleetwood Aluminum Products LLC (Fleetwood), a leading designer and manufacturer of premium, aluminum-framed glass door and window solutions for luxury homes, for $285 million in cash. Fleetwood is expected to contribute approximately $150 million of incremental full-year revenue to Masonite in 2024. Net of expected tax benefits attributable to the acquisition, the purchase price would equate to approximately $255 million, equivalent to approximately 7 times Fleetwood's anticipated 2024 EBITDA. Additional information about Fleetwood can be found at www.fleetwoodusa.com.

Masonite Earnings Conference Call

The Company will hold a live conference call and webcast on November 8, 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 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 November 22, 2023. To access the replay, please dial 877-660-6853 (in the U.S.) or 201-612-7415 (outside the U.S.). Enter Conference ID #13741857.

* 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 U.S. securities laws, including our ability to support our margins, our acquisition activity, our product offerings, our ability to tap into new areas of long-term growth, and anticipated financial results related to Fleetwood. 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," "progressing," "potential," "continue," "plan," "project," "showing," "yielding," "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 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 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 and to meet our debt service obligations, including our obligations under our senior notes, our term loan credit agreement (the "Term Loan Facility") and our asset-based revolving credit facility (the "ABL Facility"); limitations on operating our business as a result of covenant restrictions under our existing and future indebtedness, including our senior notes, the Term Loan Facility and the ABL Facility; fluctuating foreign exchange and interest rates; the continuous operation of our information technology and enterprise resource planning systems and management of potential cyber security threats and attacks and data privacy requirements; political, economic and other risks that arise from operating a multinational business; retention of key management personnel; environmental and other government regulations, including the United States Foreign Corrupt Practices Act ("FCPA"), and any changes in such regulations; the scale and scope of public health issues and their impact on our operations, customer demand and supply chain; and our ability to replace our expiring patents and to innovate and keep pace with technological developments. For additional information on identifying factors that may cause actual results to vary materially from those stated in the forward-looking statements, see Masonite’s reports on Forms 10-K, 10-Q and 8-K filed with or furnished to the SEC from time to time. 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.

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 U.S. dollars)
(Unaudited)
		North American Residential				Europe				Architectural				Corporate and Other				Total				% Change
Third quarter 2022 net sales		$	579.4			$	65.7			$	77.8			$	4.6			$	727.6
Acquisitions, net of divestitures			59.7				—				—				—				59.7			8.2	%
Volume			(81.0	)			(4.3	)			(7.8	)			—				(93.1	)		(12.8	%)
Average unit price			(3.9	)			(1.1	)			14.0				(0.7	)			8.1			1.1	%
Components			0.6				(0.4	)			(3.0	)			0.3				(2.6	)		(0.4	%)
Foreign exchange			(1.8	)			4.7				(0.3	)			(0.1	)			2.5			0.3	%
Third quarter 2023 net sales		$	553.0			$	64.6			$	80.7			$	4.1			$	702.2
Year over year change, net sales			(4.6	%)			(1.7	%)			3.7	%			(10.9	%)			(3.5	%)
Third quarter 2022 Adjusted EBITDA		$	115.1			$	3.9			$	(0.2	)		$	(6.8	)		$	111.9
Third quarter 2023 Adjusted EBITDA			109.0				3.7				5.1				(10.6	)			107.2
Year over year change, Adjusted EBITDA			(5.3	%)			(5.1	%)			2,443.4	%		nm					(4.2	%)
		North American Residential				Europe				Architectural				Corporate and Other				Total				% Change
Year to date 2022 net sales		$	1,755.8			$	220.0			$	224.3			$	15.6			$	2,215.7
Acquisitions, net of divestitures			178.9				—				—				—				178.9			8.1	%
Volume			(293.4	)			(23.7	)			(11.0	)			—				(328.1	)		(14.8	%)
Average unit price			74.0				2.2				52.0				1.2				129.3			5.8	%
Components			0.9				(2.6	)			(7.3	)			(4.2	)			(13.2	)		(0.6	%)
Foreign exchange			(9.2	)			(1.6	)			(1.6	)			(0.1	)			(12.5	)		(0.6	%)
Year to date 2023 net sales		$	1,707.0			$	194.3			$	256.4			$	12.5			$	2,170.1
Year over year growth, net sales			(2.8	%)			(11.7	%)			14.3	%			(19.9	%)			(2.1	%)
Year to date 2022 Adjusted EBITDA		$	367.7			$	24.3			$	(3.0	)		$	(34.2	)		$	354.8
Year to date 2023 Adjusted EBITDA			334.5				11.5				17.8				(31.9	)			331.9
Year over year growth, Adjusted EBITDA			(9.0	%)			(52.5	%)		nm				nm					(6.5	%)

MASONITE INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of U.S. dollars, except share and per share amounts)
(Unaudited)
		Three Months Ended								Nine Months Ended
		October 1, 2023				October 2, 2022				October 1, 2023				October 2, 2022
Net sales		$	702,247			$	727,626			$	2,170,115			$	2,215,717
Cost of goods sold			536,548				560,442				1,655,558				1,684,799
Gross profit			165,699				167,184				514,557				530,918
Gross profit as a % of net sales			23.6	%			23.0	%			23.7	%			24.0	%
Selling, general and administration expenses			98,625				82,690				299,076				256,266
Selling, general and administration expenses as a % of net sales			14.0	%			11.4	%			13.8	%			11.6	%
Restructuring costs (benefit)			1,900				(141	)			8,643				(221	)
Operating income			65,174				84,635				206,838				274,873
Interest expense, net			11,913				10,266				39,653				31,098
Other (income) expense, net			(1,083	)			211				(1,581	)			(1,604	)
Income before income tax expense			54,344				74,158				168,766				245,379
Income tax expense			12,041				16,376				38,074				59,502
Net income			42,303				57,782				130,692				185,877
Less: net income attributable to non-controlling interests			817				745				2,470				2,743
Net income attributable to Masonite		$	41,486			$	57,037			$	128,222			$	183,134
Basic earnings per common share attributable to Masonite		$	1.89			$	2.56			$	5.81			$	8.09
Diluted earnings per common share attributable to Masonite		$	1.86			$	2.54			$	5.73			$	8.01
Shares used in computing basic earnings per share			21,992,513				22,267,684				22,082,416				22,624,830
Shares used in computing diluted earnings per share			22,339,173				22,491,874				22,389,678				22,873,027

MASONITE INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars, except share amounts)
(Unaudited)
ASSETS		October 1, 2023				January 1, 2023
Current assets:
Cash and cash equivalents		$	360,482			$	296,922
Restricted cash			11,926				11,999
Accounts receivable, net			354,995				375,918
Inventories, net			364,181				406,828
Prepaid expenses and other assets			65,305				55,051
Income taxes receivable			24,703				16,922
Total current assets			1,181,592				1,163,640
Property, plant and equipment, net			734,567				652,329
Operating lease right-of-use assets			190,840				160,695
Investment in equity investees			19,366				16,111
Goodwill			253,871				69,868
Intangible assets, net			247,763				136,056
Deferred income taxes			23,401				16,133
Other assets			34,506				33,346
Total assets		$	2,685,906			$	2,248,178
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable		$	140,310			$	111,526
Accrued expenses			213,920				223,046
Income taxes payable			6,728				14,361
Current portion of long-term debt			37,500				—
Total current liabilities			398,458				348,933
Long-term debt			1,058,210				866,116
Long-term operating lease liabilities			178,009				151,242
Deferred income taxes			118,394				79,590
Other liabilities			76,116				59,515
Total liabilities			1,829,187				1,505,396
Commitments and Contingencies
Equity:
Share capital: unlimited shares authorized, no par value, 21,903,821 and 22,155,035 shares issued and outstanding as of October 1, 2023, and January 1, 2023, respectively			525,709				520,003
Additional paid-in capital			226,950				226,514
Retained earnings			227,298				127,826
Accumulated other comprehensive loss			(134,201	)			(142,224	)
Total equity attributable to Masonite			845,756				732,119
Equity attributable to non-controlling interests			10,963				10,663
Total equity			856,719				742,782
Total liabilities and equity		$	2,685,906			$	2,248,178

MASONITE INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of U.S. dollars, except share amounts)
(Unaudited)
		Nine Months Ended
Cash flows from operating activities:		October 1, 2023				October 2, 2022
Net income		$	130,692			$	185,877
Adjustments to reconcile net income to net cash flow provided by operating activities:
Depreciation			67,355				51,977
Amortization			21,915				13,164
Share based compensation expense			17,439				16,251
Deferred income taxes			(13,618	)			(4,675	)
Unrealized foreign exchange (gain) loss			(312	)			859
Share of income from equity investees, net of tax			(3,186	)			(3,944	)
Dividend from equity investee			3,150				4,500
Pension and post-retirement funding, net of expense			(1,446	)			140
Non-cash accruals and interest			3,384				199
Loss (gain) on sale of property, plant and equipment			3,319				(1,245	)
Changes in assets and liabilities, net of acquisitions:
Accounts receivable			30,972				(70,530	)
Inventories			88,087				(101,305	)
Prepaid expenses and other assets			(20,714	)			85
Accounts payable and accrued expenses			1,512				(3,307	)
Other assets and liabilities			(18,138	)			(5,127	)
Net cash flow provided by operating activities			310,411				82,919
Cash flows from investing activities:
Additions to property, plant and equipment			(86,172	)			(65,792	)
Acquisition of businesses, net of cash acquired			(352,886	)			—
Proceeds from sale of property, plant and equipment			56				6,393
Proceeds from repayment of note receivable			12,000				—
Other investing activities			(5,886	)			(2,068	)
Net cash flow used in investing activities			(432,888	)			(61,467	)
Cash flows from financing activities:
Proceeds from issuance of long-term debt			250,000				—
Repayments of long-term debt			(18,750	)			—
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			(2,257	)			(3,332	)
Distributions to non-controlling interests			(2,243	)			(2,500	)
Repurchases of common shares			(39,132	)			(140,000	)
Net cash flow provided by (used in) financing activities			183,990				(145,832	)
Net foreign currency translation adjustment on cash			1,974				(4,421	)
Increase (decrease) in cash, cash equivalents and restricted cash			63,487				(128,801	)
Cash, cash equivalents and restricted cash, beginning of period			308,921				391,505
Cash, cash equivalents and restricted cash, at end of period		$	372,408			$	262,704

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								Nine Months Ended
(In thousands)		October 1, 2023				October 2, 2022				October 1, 2023				October 2, 2022
Net income attributable to Masonite		$	41,486			$	57,037			$	128,222			$	183,134
Add: Adjustments to net income attributable to Masonite:
Restructuring costs (benefit)			1,900				(141	)			8,643				(221	)
Other items (1)			3,760				—				6,349				—
Income tax impact of adjustments			(1,676	)			36				(3,788	)			56
Adjusted net income attributable to Masonite		$	45,470			$	56,932			$	139,426			$	182,969
Diluted earnings per common share attributable to Masonite ("EPS")		$	1.86			$	2.54			$	5.73			$	8.01
Diluted adjusted earnings per common share attributable to Masonite ("Adjusted EPS")		$	2.04			$	2.53			$	6.23			$	8.00
Shares used in computing EPS and Adjusted EPS			22,339,173				22,491,874				22,389,678				22,873,027

____________

(1)

Other items include $3,760 and $6,349 in acquisition and due diligence related costs in the three and nine months ended October 1, 2023, respectively, and were recorded in selling, general and administration expenses within the condensed consolidated statements of income and comprehensive income.

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 October 1, 2023
(In thousands)		North American Residential				Europe				Architectural				Corporate & Other				Total
Net income (loss) attributable to Masonite		$	87,508			$	(2,305	)		$	1,718			$	(45,435	)		$	41,486
Plus:
Depreciation			13,936				2,692				3,002				3,259				22,889
Amortization			3,353				3,062				367				670				7,452
Share based compensation expense			—				—				—				4,282				4,282
Loss on disposal of property, plant and equipment			1,723				6				50				—				1,779
Restructuring costs			1,898				—				—				2				1,900
Interest expense, net			—				—				—				11,913				11,913
Other expense (income), net			40				243				—				(1,366	)			(1,083	)
Income tax expense			—				—				—				12,041				12,041
Other items (1)			—				—				(5	)			3,765				3,760
Net income attributable to non-controlling interest			541				—				—				276				817
Adjusted EBITDA		$	108,999			$	3,698			$	5,132			$	(10,593	)		$	107,236
Net sales		$	552,979			$	64,559			$	80,658			$	4,051			$	702,247
Adjusted EBITDA margin			19.7	%			5.7	%			6.4	%		nm					15.3	%

____________

(1)

Other items include $3,760 in acquisition and due diligence related costs in the three months ended October 1, 2023, and were recorded in selling, general and administration expenses within the condensed consolidated statements of income and comprehensive income

		Three Months Ended October 2, 2022
(In thousands)		North American Residential				Europe				Architectural				Corporate & Other				Total
Net income (loss) attributable to Masonite		$	103,589			$	(1,116	)		$	(3,486	)		$	(41,950	)		$	57,037
Plus:
Depreciation			10,443				2,127				2,959				1,932				17,461
Amortization			442				2,985				278				551				4,256
Share based compensation expense			—				—				—				5,556				5,556
Loss on disposal of property, plant and equipment			136				—				7				12				155
Restructuring (benefit) costs			(178	)			—				23				14				(141	)
Interest expense, net			—				—				—				10,266				10,266
Other (income) expense, net			—				(98	)			—				309				211
Income tax expense			—				—				—				16,376				16,376
Net income attributable to non-controlling interest			660				—				—				85				745
Adjusted EBITDA		$	115,092			$	3,898			$	(219	)		$	(6,849	)		$	111,922
Net sales			579,440				65,718				77,843				4,625				727,626
Adjusted EBITDA margin			19.9	%			5.9	%			(0.3	)%		nm					15.4	%

		Nine Months Ended October 1, 2023
(In thousands)		North American Residential				Europe				Architectural				Corporate & Other				Total
Net income (loss) attributable to Masonite		$	270,820			$	(5,332	)		$	6,779			$	(144,045	)		$	128,222
Plus:
Depreciation			41,472				7,307				8,959				9,617				67,355
Amortization			10,407				8,781				840				1,887				21,915
Share based compensation expense			—				—				—				17,439				17,439
Loss on disposal of property, plant and equipment			2,782				61				327				149				3,319
Restructuring costs			7,153				—				863				627				8,643
Interest expense, net			—				—				—				39,653				39,653
Other expense (income), net			13				723				—				(2,317	)			(1,581	)
Income tax expense			—				—				—				38,074				38,074
Other items (1)			—				—				—				6,349				6,349
Net income attributable to non-controlling interest			1,804				—				—				666				2,470
Adjusted EBITDA		$	334,451			$	11,540			$	17,768			$	(31,901	)		$	331,858
Net sales to external customers		$	1,706,987			$	194,263			$	256,378			$	12,487			$	2,170,115
Adjusted EBITDA margin			19.6	%			5.9	%			6.9	%		nm					15.3	%

____________

(1)

Other items include $6,349 in acquisition and due diligence related costs in the nine months ended October 1, 2023, and were recorded in selling, general and administration expenses within the condensed consolidated statements of income and comprehensive income

		Nine Months Ended October 2, 2022
(In thousands)		North American Residential				Europe				Architectural				Corporate & Other				Total
Net income (loss) attributable to Masonite		$	333,233			$	8,062			$	(9,354	)		$	(148,807	)		$	183,134
Plus:
Depreciation			30,394				6,640				8,602				6,341				51,977
Amortization			1,528				9,314				679				1,643				13,164
Share based compensation expense			—				—				—				16,251				16,251
Loss (gain) on disposal of property, plant and equipment			1,873				(13	)			(3,037	)			(68	)			(1,245	)
Restructuring (benefit) costs			(359	)			—				71				67				(221	)
Interest expense, net			—				—				—				31,098				31,098
Other (income) expense, net			(792	)			304				—				(1,116	)			(1,604	)
Income tax expense			—				—				—				59,502				59,502
Net income attributable to non-controlling interest			1,856				—				—				887				2,743
Adjusted EBITDA		$	367,733			$	24,307			$	(3,039	)		$	(34,202	)		$	354,799
Net sales to external customers		$	1,755,780			$	220,039			$	224,257			$	15,641			$	2,215,717
Adjusted EBITDA margin			20.9	%			11.0	%		nm				nm					16.0	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20231107489570/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 is the stock ticker for Masonite International Corporation?

The stock ticker for Masonite International Corporation is DOOR.

What was Masonite's year-over-year net sales decline?

Masonite's net sales declined by 4% year over year.

What was Masonite's year-to-date operating cash flow?

Masonite's year-to-date operating cash flow was $310 million, indicating strong financial performance.

What strategic acquisition did Masonite announce?

Masonite announced the acquisition of Fleetwood, a premium provider of glass door systems, which is expected to contribute approximately $150 million of incremental full-year revenue in 2024.