DOOR
$114.00
Masonite Worldwide
$1.02
.90%
Earnings Details
2nd Quarter June 2021
Monday, August 9, 2021 4:30:00 PM
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Summary

Masonite Raises Revenue Guidance

Masonite Worldwide (DOOR) reported 2nd Quarter June 2021 earnings of $2.23 per share on revenue of $662.4 million. The consensus earnings estimate was $2.08 per share on revenue of $634.5 million. Revenue grew 32.6% on a year-over-year basis.

The company said it continues to expect 2021 earnings of $8.00 to $8.60 per share but now expects revenue of $2.64 billion to $2.71 billion. The company's previous guidance was revenue of $2.53 billion to $2.60 billion and the current consensus earnings estimate is $8.59 per share on revenue of $2.58 billion for the year ending December 31, 2021.

Masonite International Corp is a designer and manufacturer of interior and exterior doors for the residential new construction, the residential repair, renovation and remodeling, and the non-residential building construction markets.

Results
Reported Earnings
$2.23
Earnings Whisper
-
Consensus Estimate
$2.08
Reported Revenue
$662.4 Mil
Revenue Estimate
$634.5 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Masonite International Corporation Reports 2021 Second Quarter Financial Results

Highest quarterly Net Sales and Adj EBITDA* since becoming an NYSE-listed company in 2013

TAMPA, Fla.--(BUSINESS WIRE)--Masonite International Corporation ("Masonite" or "the Company") (NYSE: DOOR) today announced results for the three and six months ended July 4, 2021.

Executive Summary - 2Q21 versus 2Q20

  • Net sales increased 33% to $662 million versus $500 million.
  • Net income attributable to Masonite increased to $35 million from $34 million.
  • Diluted earnings per share increased to $1.41 from $1.38 per share and adjusted earnings per share* increased to $2.23 from $1.50.
  • Adjusted EBITDA* increased to $111 million from $92 million.
  • Repurchased 283,712 shares of Masonite stock in the second quarter for approximately $32 million.

“Robust demand in our residential end markets and solid execution allowed us to achieve strong Net Sales and Adjusted EBITDA* growth despite strengthening inflation headwinds in the quarter,” said Howard Heckes, President and CEO. “I am extremely proud of this organization’s ability to navigate what was an increasingly difficult backdrop with respect to our supply chain and labor availability. Despite these near-term challenges, we continued to invest in the business for long-term growth and still anticipate full year 2021 Adjusted EBITDA* Margin expansion.”

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

Second Quarter 2021 Discussion

Net sales were $662 million in the second quarter of 2021, a 33% increase from $500 million in the comparable period of 2020. The increase in net sales was the result of a 19% increase in base volume, a 7% increase in average unit price (AUP), a 5% increase due to favorable foreign exchange and a 2% increase in the sale of components and other products.

  • North American Residential net sales were $493 million, a 29% increase compared to the second quarter of 2020, driven by a 19% increase in base volume, a 7% increase in AUP and a combined 3% increase due to favorable foreign exchange and the sale of components and other products.
  • Europe net sales were $88 million, a 194% increase compared to the second quarter of 2020 due to our UK and Ireland operations being idled for approximately one-half of the prior year period. The increase was driven by a 134% increase in base volume, a 33% increase due to favorable foreign exchange, a 21% increase in AUP and a 7% increase in the sale of components and other products, partially offset by a 1% decrease from the impact of a divestiture.
  • Architectural net sales were $76 million, an 11% decrease compared to the second quarter of 2020, driven by a 16% decrease in base volume, partially offset by a 4% increase in AUP and a 1% increase due to favorable foreign exchange.

Total company gross profit was $164 million in the second quarter of 2021, an increase of 21% compared to $136 million in the second quarter of 2020. Gross profit margin decreased 250 basis points to 24.8%, due to the impact of higher inflation and tariffs on raw materials, rising logistics costs, higher manufacturing wages and benefits and increased investment in the business, partially offset by higher AUP.

Selling, general and administration (SG&A) expenses were $83 million in the second quarter of 2021, an increase of 12% compared to $73 million in the second quarter of 2020. The increase in SG&A was primarily due to higher personnel costs, which includes resources to support growth. SG&A as a percentage of net sales was 12.5%, a 220 basis point decrease compared to the second quarter of 2020.

Net income attributable to Masonite was $35 million in the second quarter of 2021, an increase of 3% compared to $34 million in the second quarter of 2020. Adjusted EBITDA* of $111 million in the second quarter of 2021 increased 20% from $92 million in the second quarter of 2020.

Diluted earnings per share were $1.41 in the second quarter of 2021 compared to $1.38 in the comparable 2020 period. Diluted adjusted earnings per share* were $2.23 in the second quarter of 2021 compared to $1.50 in the comparable 2020 period. Diluted adjusted earnings per share* excludes $20 million in charges related to actions taken as part of our previously announced restructuring plans, the loss on disposal of our Czech business and the UK tax rate change incurred in the second quarter of 2021 and $3 million in charges related to the loss on disposal of our India subsidiary and restructuring in the second quarter of 2020.

Masonite repurchased 283,712 shares of stock in the second quarter of 2021 for $32 million, at an average price of $114.28.

Year to Date 2021 Discussion

Net sales were $1,309 million in the first six months of 2021, a 25% increase from $1,051 million in the comparable period of 2020. The increase in net sales was a result of an 11% increase in AUP, a 9% increase in base volume, a 3% increase due to favorable foreign exchange and a 2% increase in the sale of components and other products.

  • North American Residential net sales were $970 million, a 27% increase compared to the first six months of 2020, driven by a 12% increase in AUP, a 12% increase in base volume, a 2% increase due to foreign exchange and a 1% increase in the sale of components and other products.
  • Europe net sales were $176 million, a 75% increase compared to the first six months of 2020, driven by a 45% increase in base volume, a 16% increase due to favorable foreign exchange, an 11% increase from higher AUP and a 4% increase in the sale of components and other products, partially offset by a less than 1% decrease from the impact of a divestiture.
  • Architectural net sales were $151 million, a 15% decrease compared to the first six months of 2020, driven by a 19% decrease in base volume and a 1% decrease in the sale of components and other products, partially offset by a 4% increase in AUP and a 1% increase due to favorable foreign exchange.

Total company gross profit was $323 million in the first six months of 2021, an increase of 19% compared to $271 million in the first six months of 2020. Gross profit margin decreased 110 basis points to 24.7%, due to the impact of higher inflation and tariffs on raw materials, rising logistics costs, higher manufacturing wages and benefits and increased investment in the business, partially offset by higher AUP.

Selling, general and administration (SG&A) expenses were $166 million in the first six months of 2021, an increase of 8% compared to $154 million in the first six months of 2020. The increase was due to higher personnel costs, which includes resources to support growth. SG&A as a percentage of net sales was 12.7%, a 190 basis point decrease compared to the first six months of 2020.

Net income attributable to Masonite was $82 million in the first six months of 2021, an increase of 28% compared to $64 million in the first six months of 2020. Adjusted EBITDA* of $213 million in the first six months of 2021 increased 23% from $173 million in the first six months of 2020.

Diluted earnings per share were $3.30 in the first six months of 2021 compared to $2.56 in the comparable 2020 period. Diluted adjusted earnings per share* were $4.16 in the first six months of 2021 compared to $2.74 in the comparable 2020 period. Diluted adjusted earnings per share* excludes $22 million in charges related to actions taken as part of our previously announced restructuring plans, the loss on the disposal of our Czech business and the UK tax rate change incurred in the first six months of 2021 and $4 million in charges related to the loss on disposal of our India subsidiary and restructuring incurred in the first six months of 2020.

Masonite repurchased 368,695 shares of stock in the first six months of 2021 for $42 million, at an average price of $113.98.

Updated 2021 Outlook

The Company now expects full-year 2021 net sales growth in the range of 17 to 20 percent, reflecting sustained residential demand, pricing actions taken in response to rapidly changing inflation and the expectation that current foreign exchange tailwinds may continue throughout the year.

The Company's expectations for 2021 Adjusted EBITDA* remain unchanged at a range of $435 million to $455 million and diluted adjusted earnings per share* of $8.00 to $8.60.

“Based on the continued strength of our residential end markets and additional pricing actions taken to mitigate inflation, we have updated our outlook to reflect even stronger Net Sales growth for the year," Mr. Heckes concluded.

A quantitative reconciliation of Adjusted EBITDA* and diluted adjusted earnings per share* to the corresponding GAAP information is not provided for the 2021 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 10, 2021. 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: Q2'21 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 24, 2021. To access the replay, please dial 877-660-6853 (in the U.S.) or 201-612-7415 (outside U.S.). Enter Conference ID #13720364.

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 7,600 customers in 60 countries. Additional information about Masonite can be found at www.masonite.com.

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

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 discussion of our 2021 outlook, the housing and other markets and future demand, the effects of our strategic and restructuring initiatives, new products, impact of the COVID-19 pandemic, and the impact from foreign exchange on net sales. 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 including seasonality; scale and scope of the 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 our ABL Facility; fluctuating foreign exchange and interest rates; our ability to replace 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 25, 2021, in each case as updated by our subsequent filings with the SEC.

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. The definition of Adjusted EBITDA was updated in the third quarter of 2020 to exclude other items as these charges are not part of our underlying business performance. This change had no impact to Adjusted EBITDA for the three and six months ended June 28, 2020. This definition of Adjusted EBITDA differs from the definitions of EBITDA contained in the indentures governing the 2026 and 2028 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 2020 net sales

$

381.2

 

 

$

29.9

 

 

$

85.6

 

 

$

3.0

 

 

$

499.7

 

 

 

Acquisitions, net of divestitures

 

 

(0.3

)

 

 

 

 

 

(0.3

)

 

(0.1

)%

Base volume

70.9

 

 

40.0

 

 

(13.4

)

 

(2.2

)

 

95.3

 

 

19.1

%

Average unit price

25.5

 

 

6.2

 

 

3.1

 

 

 

 

34.8

 

 

7.0

%

Other

4.4

 

 

2.2

 

 

(0.4

)

 

4.5

 

 

10.7

 

 

2.1

%

Foreign exchange

11.4

 

 

9.8

 

 

0.9

 

 

0.1

 

 

22.2

 

 

4.4

%

Second quarter 2021 net sales

$

493.4

 

 

$

87.8

 

 

$

75.8

 

 

$

5.4

 

 

$

662.4

 

 

 

Year over year growth, net sales

29.4

%

 

193.6

%

 

(11.4

)%

 

80.0

%

 

32.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second quarter 2020 Adjusted EBITDA

$

91.1

 

 

$

(0.9

)

 

$

11.5

 

 

$

(9.8

)

 

$

91.9

 

 

 

Second quarter 2021 Adjusted EBITDA

100.0

 

 

16.6

 

 

0.5

 

 

(6.5

)

 

110.6

 

 

 

Year over year growth, Adjusted EBITDA

9.8

%

 

1,944.4

%

 

(95.7

)%

 

(33.7

)%

 

20.3

%

 

 

 

 

North

American

Residential

 

Europe

 

Architectural

 

Corporate

and Other

 

Total

 

% Change

Year to date 2020 net sales

$

765.0

 

 

$

100.6

 

 

$

176.9

 

 

$

8.4

 

 

$

1,050.9

 

 

 

Acquisitions, net of divestitures

 

 

(0.3

)

 

 

 

 

 

(0.3

)

 

%

Base volume

88.2

 

 

44.9

 

 

(33.1

)

 

(2.8

)

 

97.2

 

 

9.2

%

Average unit price

92.5

 

 

11.2

 

 

7.4

 

 

 

 

111.1

 

 

10.6

%

Other

8.4

 

 

3.7

 

 

(1.8

)

 

6.0

 

 

16.3

 

 

1.6

%

Foreign exchange

15.8

 

 

16.2

 

 

1.4

 

 

0.1

 

 

33.5

 

 

3.2

%

Year to date 2021 net sales

$

969.9

 

 

$

176.3

 

 

$

150.8

 

 

$

11.7

 

 

$

1,308.7

 

 

 

Year over year growth, net sales

26.8

%

 

75.2

%

 

(14.8

)%

 

39.3

%

 

24.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year to date 2020 Adjusted EBITDA

$

162.8

 

 

$

8.8

 

 

$

22.1

 

 

$

(20.3

)

 

$

173.4

 

 

 

Year to date 2021 Adjusted EBITDA

194.5

 

 

33.3

 

 

2.5

 

 

(17.8

)

 

212.6

 

 

 

Year over year growth, Adjusted EBITDA

19.5

%

 

278.4

%

 

(88.7

)%

 

(12.3

)%

 

22.6

%

 

 

 

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 4, 2021

 

June 28, 2020

 

July 4, 2021

 

June 28, 2020

Net sales

$

662,410

 

 

$

499,658

 

 

$

1,308,747

 

 

$

1,050,886

 

Cost of goods sold

498,068

 

 

363,304

 

 

985,767

 

 

780,251

 

Gross profit

164,342

 

 

136,354

 

 

322,980

 

 

270,635

 

Gross profit as a % of net sales

24.8

%

 

27.3

%

 

24.7

%

 

25.8

%

 

 

 

 

 

 

 

 

Selling, general and administration expenses

82,511

 

 

73,390

 

 

166,142

 

 

153,723

 

Selling, general and administration expenses as a % of net sales

12.5

%

 

14.7

%

 

12.7

%

 

14.6

%

 

 

 

 

 

 

 

 

Restructuring costs

2,192

 

 

1,148

 

 

3,835

 

 

3,089

 

Asset impairment

10,374

 

 

 

 

10,374

 

 

 

Loss on disposal of subsidiaries

8,590

 

 

2,091

 

 

8,590

 

 

2,091

 

Operating income

60,675

 

 

59,725

 

 

134,039

 

 

111,732

 

Interest expense, net

11,918

 

 

11,824

 

 

23,864

 

 

23,106

 

Other (income) expense, net

(1,586

)

 

(1,446

)

 

(2,929

)

 

(1,397

)

Income before income tax expense

50,343

 

 

49,347

 

 

113,104

 

 

90,023

 

Income tax expense

14,246

 

 

14,687

 

 

28,859

 

 

24,326

 

Net income

36,097

 

 

34,660

 

 

84,245

 

 

65,697

 

Less: net income attributable to non-controlling interests

1,051

 

 

663

 

 

2,218

 

 

1,815

 

Net income attributable to Masonite

$

35,046

 

 

$

33,997

 

 

$

82,027

 

 

$

63,882

 

 

 

 

 

 

 

 

 

Basic earnings per common share attributable to Masonite

$

1.43

 

 

$

1.39

 

 

$

3.35

 

 

$

2.59

 

Diluted earnings per common share attributable to Masonite

$

1.41

 

 

$

1.38

 

 

$

3.30

 

 

$

2.56

 

 

 

 

 

 

 

 

 

Shares used in computing basic earnings per share

24,450,542

 

 

24,466,575

 

 

24,460,098

 

 

24,664,008

 

Shares used in computing diluted earnings per share

24,842,019

 

 

24,651,407

 

 

24,883,814

 

 

24,932,864

 

 

MASONITE INTERNATIONAL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. dollars, except share amounts)

(Unaudited)

 

ASSETS

July 4, 2021

 

January 3, 2021

Current assets:

 

 

 

Cash and cash equivalents

$

328,598

 

 

$

364,674

 

Restricted cash

10,560

 

 

10,560

 

Accounts receivable, net

361,663

 

 

290,508

 

Inventories, net

281,179

 

 

260,962

 

Prepaid expenses and other assets

43,198

 

 

42,538

 

Income taxes receivable

3,573

 

 

1,124

 

Total current assets

1,028,771

 

 

970,366

 

Property, plant and equipment, net

605,848

 

 

625,126

 

Operating lease right-of-use assets

145,545

 

 

146,806

 

Investment in equity investees

11,475

 

 

14,636

 

Goodwill

138,072

 

 

138,692

 

Intangible assets, net

160,930

 

 

169,392

 

Deferred income taxes

19,040

 

 

25,331

 

Other assets

47,772

 

 

47,411

 

Total assets

$

2,157,453

 

 

$

2,137,760

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

115,443

 

 

$

97,211

 

Accrued expenses

224,414

 

 

277,716

 

Income taxes payable

4,119

 

 

11,086

 

Total current liabilities

343,976

 

 

386,013

 

Long-term debt

791,950

 

 

792,242

 

Long-term operating lease liabilities

133,924

 

 

136,235

 

Deferred income taxes

78,156

 

 

73,073

 

Other liabilities

59,274

 

 

55,080

 

Total liabilities

1,407,280

 

 

1,442,643

 

Commitments and Contingencies

 

 

 

Equity:

 

 

 

Share capital: unlimited shares authorized, no par value, 24,238,024 and 24,422,934 shares issued and outstanding as of July 4, 2021, and January 3, 2021, respectively

556,398

 

 

552,969

 

Additional paid-in capital

217,599

 

 

223,666

 

Accumulated earnings

68,845

 

 

20,385

 

Accumulated other comprehensive loss

(103,512

)

 

(112,063

)

Total equity attributable to Masonite

739,330

 

 

684,957

 

Equity attributable to non-controlling interests

10,843

 

 

10,160

 

Total equity

750,173

 

 

695,117

 

Total liabilities and equity

$

2,157,453

 

 

$

2,137,760

 

 

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 4, 2021

 

June 28, 2020

 

July 4, 2021

 

June 28, 2020

Net income attributable to Masonite

$

35,046

 

 

$

33,997

 

 

$

82,027

 

 

$

63,882

 

 

 

 

 

 

 

 

 

Add: Adjustments to net income attributable to Masonite:

 

 

 

 

 

 

 

Restructuring costs

2,192

 

 

1,148

 

 

3,835

 

 

3,089

 

Asset impairment

10,374

 

 

 

 

10,374

 

 

 

Loss on disposal of subsidiaries

8,590

 

 

2,091

 

 

8,590

 

 

2,091

 

Income tax expense as a result of UK tax rate change

2,430

 

 

 

 

2,430

 

 

 

Income tax impact of adjustments

(3,285

)

 

(298

)

 

(3,721

)

 

(806

)

Adjusted net income attributable to Masonite

$

55,347

 

 

$

36,938

 

 

$

103,535

 

 

$

68,256

 

 

 

 

 

 

 

 

 

Diluted earnings per common share attributable to Masonite ("EPS")

$

1.41

 

 

$

1.38

 

 

$

3.30

 

 

$

2.56

 

Diluted adjusted earnings per common share attributable to Masonite ("Adjusted EPS")

$

2.23

 

 

$

1.50

 

 

$

4.16

 

 

$

2.74

 

 

 

 

 

 

 

 

 

Shares used in computing EPS and Adjusted EPS

24,842,019

 

 

24,651,407

 

 

24,883,814

 

 

24,932,864

 

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 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 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

 

 

 

Three Months Ended June 28, 2020

(In thousands)

North

American

Residential

 

Europe

 

Architectural

 

Corporate &

Other

 

Total

Net income (loss) attributable to Masonite

$

79,841

 

$

(6,376

)

 

$

4,983

 

$

(44,451

)

 

$

33,997

 

Plus:

 

 

 

 

 

 

 

 

 

Depreciation

8,729

 

2,367

 

 

2,777

 

2,970

 

 

16,843

 

Amortization

512

 

3,270

 

 

1,750

 

390

 

 

5,922

 

Share based compensation expense

 

 

 

 

3,740

 

 

3,740

 

Loss on disposal of property, plant and equipment

506

 

7

 

 

1,904

 

6

 

 

2,423

 

Restructuring costs

914

 

 

 

86

 

148

 

 

1,148

 

Loss on disposal of subsidiaries

 

 

 

 

2,091

 

 

2,091

 

Interest expense, net

 

 

 

 

11,824

 

 

11,824

 

Other (income) expense, net

 

(186

)

 

 

(1,260

)

 

(1,446

)

Income tax expense

 

 

 

 

14,687

 

 

14,687

 

Net income attributable to non-controlling interest

629

 

 

 

 

34

 

 

663

 

Adjusted EBITDA

$

91,131

 

$

(918

)

 

$

11,500

 

$

(9,821

)

 

$

91,892

 

 

 

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 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

 

 

 

Six Months Ended June 28, 2020

(In thousands)

North

American

Residential

 

Europe

 

Architectural

 

Corporate &

Other

 

Total

Net income (loss) attributable to Masonite

$

138,652

 

$

(2,893

)

 

$

9,563

 

$

(81,440

)

 

$

63,882

 

Plus:

 

 

 

 

 

 

 

 

 

Depreciation

18,093

 

4,824

 

 

5,599

 

4,345

 

 

32,861

 

Amortization

1,107

 

6,832

 

 

3,672

 

770

 

 

12,381

 

Share based compensation expense

 

 

 

 

7,210

 

 

7,210

 

Loss on disposal of property, plant and equipment

1,710

 

10

 

 

2,300

 

25

 

 

4,045

 

Restructuring costs

1,763

 

(37

)

 

948

 

415

 

 

3,089

 

Loss on disposal of subsidiaries

 

 

 

 

2,091

 

 

2,091

 

Interest expense, net

 

 

 

 

23,106

 

 

23,106

 

Other expense (income), net

 

25

 

 

 

(1,422

)

 

(1,397

)

Income tax expense

 

 

 

 

24,326

 

 

24,326

 

Net income attributable to non-controlling interest

1,502

 

 

 

 

313

 

 

1,815

 

Adjusted EBITDA

$

162,827

 

$

8,761

 

 

$

22,082

 

$

(20,261

)

 

$

173,409

 

 

Richard Leland
VP, FINANCE AND TREASURER
rleland@masonite.com
813.739.1808

Farand Pawlak, CPA
DIRECTOR, INVESTOR RELATIONS
fpawlak@masonite.com
813.371.5839

Source: Masonite International Corporation