TAMPA, Fla.--(BUSINESS WIRE)--
Masonite International Corporation ("Masonite" or "the Company") (NYSE:
DOOR) today announced results for the three and nine months ended
September 30, 2018.
Executive Summary - 3Q18 versus 3Q17
-
Net sales increased 8% to $557 million versus $518 million. Excluding
foreign exchange, net sales increased 9%.
-
Net income attributable to Masonite was $25 million compared to $29
million. The decline was primarily due to a loss on the extinguishment
of debt.
-
Diluted earnings per share decreased to $0.89 from $1.00. Adjusted
earnings per share* increased to $1.03 from $1.00. Adjusted earnings
per share* excludes a pre-tax loss of $5.4 million related to the
extinguishment of debt.
-
Adjusted EBITDA* increased 2% to $71 million versus $69 million.
-
Repurchased 503,166 shares of stock in the third quarter for
approximately $34 million.
“We delivered another quarter of year on year sales growth, due again to
strong performance from our acquisitions and higher average unit
prices," said Fred Lynch, President and Chief Executive Officer.
"However, in the third quarter, the benefit from previous price
increases was not enough to fully cover rising costs. Our team continues
to pursue multiple strategies to improve margins despite a strong
inflationary environment."
Third Quarter 2018 Discussion
Net sales increased 8% to $557 million in the third quarter of 2018,
from $518 million in the comparable period of 2017. The increase in net
sales was the result of a 7% increase in volume from acquisitions and a
4% increase in average unit price (AUP), partially offset by a 3%
decrease in base volumes and other components and a 1% decrease from
foreign exchange.
-
North American Residential net sales were $368 million, a 1% increase
over the third quarter of 2017, driven by a 4% increase in AUP and
partially offset by a 2% decrease in volume, due to previously
announced lost retail business, and a 1% decrease from foreign
exchange.
-
Europe net sales were $91 million, a 22% increase from the third
quarter of 2017. The net sales increase was driven by the first
quarter acquisition of DW3 which contributed 25% sales growth and AUP
contributed 4% growth. This was partially offset by declines in base
volume of approximately 7% due to softer end markets which we believe
is related to continued uncertainty around Brexit.
-
Architectural net sales were $92 million, a 25% increase from the
third quarter of 2017. The 2018 acquisition of Graham & Maiman and the
2017 acquisition of A&F Wood Products combined to contribute 26% of
incremental net sales. AUP contributed an additional 4% of growth in
the third quarter. These increases were partially offset by an 8%
decrease in base volume due to an extended recovery in demand
following service level issues experienced in the second half of 2017
and the ramping down of our Northumberland, PA facility in preparation
for an October ERP implementation.
Total company gross profit increased 7% to $111 million in the third
quarter of 2018 compared to $104 million in the third quarter of 2017.
Gross profit margin decreased 20 basis points to 19.9%, due primarily to
higher inflation on raw materials and manufacturing wages and benefits.
Selling, general and administrative expenses (SG&A) of $65 million
increased $5 million, or 9%, compared to the third quarter of 2017. The
increase in SG&A was driven by additional costs from acquisitions,
including related professional fees, and higher personnel costs,
including incentive compensation. SG&A as a percentage of net sales was
11.6%, a 20 basis point increase compared to the third quarter of 2017.
Net income attributable to Masonite decreased $4 million to $25 million
in the third quarter of 2018 due to a loss on the extinguishment of
debt. Adjusted EBITDA* increased 2% to $71 million in the third quarter
of 2018 from $69 million in the third quarter of 2017.
Diluted earnings per share were $0.89 in the third quarter of 2018
compared to $1.00 in the comparable 2017 period. Adjusted diluted
earnings per share* were $1.03 in the third quarter of 2018 compared to
$1.00 in the comparable 2017 period. Adjusted earnings per share
excludes a pre-tax loss of $5.4 million related to the extinguishment of
debt. The benefit of share repurchases were offset by a higher tax rate
in the third quarter of 2018 compared to 2017. Masonite repurchased
503,166 shares of stock in the third quarter for $34 million, at an
average price of $67.24.
Year to Date 2018 Discussion
Net sales increased 8% to $1,642 million in the first nine months of
2018, from $1,524 million in the comparable period of 2017. The increase
in net sales was the result of a 5% increase in volumes from
acquisitions, a 3% increase in AUP and a 1% benefit from foreign
exchange, partially offset by slight declines in base volumes in
Architectural and Europe.
-
North American Residential net sales were $1,106 million, a 3%
increase over the first nine months of 2017, driven primarily by a 2%
increase in AUP and a 1% increase in base volume.
-
Europe net sales were $279 million, a 28% increase over the first nine
months of 2017. The acquisition of DW3 in January of 2018 added a 22%
increase in net sales, while base volume in Europe declined
approximately 7% due to softer end markets which we believe is related
to continued uncertainty around Brexit and unusually harsh winter
conditions in the first three months of the year. The sales increase
was also due to a 6% benefit from foreign exchange and a 6% increase
in AUP.
-
Architectural net sales were $241 million, a 10% increase over the
first nine months of 2017. The 2018 acquisition of Graham & Maiman and
the 2017 acquisition of A&F combined to contribute 14% of incremental
net sales. Additionally, an increase in AUP contributed 6%. These
increases were partially offset by an 11% decrease in base volumes due
to an extended recovery in demand following service level issues
experienced in the second half of 2017 and the ramping down of our
Northumberland, PA facility in preparation for an October ERP
implementation, as well as lower order flow in the first quarter due
to timing of major projects.
Total company gross profit increased 11% to $340 million in the first
nine months of 2018, from $307 million in the first nine months of 2017.
Gross profit margin increased 60 basis points to 20.7%, due to higher
AUP and improved operational performance, but partially offset by higher
inflation on raw materials and manufacturing wages and benefits.
Selling, general and administrative expenses (SG&A) of $205 million
increased $17 million compared to the first nine months of 2017. The
increase was driven by additional costs from acquisitions, including
related professional fees, and higher personnel costs, including
incentive compensation. SG&A as a percentage of net sales was 12.5%, a
20 basis point increase from the first nine months of 2017.
Net income attributable to Masonite decreased $1 million to $80 million
in the first nine months of 2018. Adjusted EBITDA* increased $20 million
to $210 million for the first nine months of 2018, from $190 million in
the comparable 2017 period.
Diluted earnings per share were $2.85 in the first nine months of 2018
compared to $2.65 in the comparable 2017 period. Adjusted diluted
earnings per share* were $2.99 in the first nine months of 2018 compared
to $2.66 in the comparable 2017 period. Adjusted earnings per share
excludes a pre-tax loss of $5.4 million related to the extinguishment of
debt.
Masonite repurchased 1,464,700 shares of stock in the first nine months
of 2018 for $95 million, at an average price of $64.52.
Subsequent Event
The Company plans to relocate its cutstock components facility in
Stockton, CA to Verdi, NV which is expected to allow the Company to
better manage cost and expand capacity through targeted automation.
Additionally, the Company plans to rationalize some operations in the UK
to improve cost structure and expand operational efficiencies. These
actions began in the fourth quarter of 2018 and are expected to be
completed in 2019. Total restructuring costs associated with these
restructuring plans are expected to be approximately $2 million.
Masonite Earnings Conference Call
The Company will hold a live conference call and webcast on November 7,
2018. The live audio webcast will begin at 9:00 a.m. ET and can be
accessed, together with the presentation, on the Masonite website www.masonite.com.
The webcast can be directly accessed at: Q3'18
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 November 21, 2018. To access the replay,
please dial 877-660-6853 (in the U.S.) or 201-612-7415 (outside U.S.).
Enter Conference ID #13684115.
About Masonite
Masonite International Corporation is a leading global 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. Since 1925, Masonite has
provided its customers with innovative products and superior service at
compelling values. Masonite currently serves more than 7,000 customers
in 65 countries. 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 discussion of, and the
effects of, our restructuring and strategic initiatives. 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, our ability to successfully
implement our business strategy; general economic, market and business
conditions, including foreign exchange rate fluctuation and inflation;
levels of residential new construction; residential repair, renovation
and remodeling; and non-residential building construction activity; the
United Kingdom's formal trigger of the two year process for its exit
from the European Union and related negotiations; competition; our
ability to manage our operations including integrating our recent
acquisitions and companies or assets we acquire in the future; 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 ABL Facility; labor relations (i.e., disruptions, strikes
or work stoppages), labor costs and availability of labor; increases in
the costs of raw materials or wages or any shortage in supplies or
labor; our ability to keep pace with technological developments; cyber
security threats and attacks; the actions taken by, and the continued
success of, certain key customers; our ability to maintain relationships
with certain customers; the ability to generate the benefits of our
restructuring activities; retention of key management personnel;
environmental and other government regulations; and 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.
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 (loss) 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); 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 2023 and 2026 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 transfers are negotiated on an arm’s length
basis, 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 Adjusted EBITDA to net
income (loss) attributable to Masonite for the periods indicated. We are
not providing a quantitative reconciliation of our Adjusted EBITDA
outlook to the corresponding GAAP information because the GAAP measures
that we exclude from our Adjusted EBITDA outlook are difficult to
predict and are primarily dependent on future uncertainties. Items with
future uncertainties include restructuring costs, asset impairments,
share based compensation expense and gains/losses on sales of
subsidiaries and PP&E.
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 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)). Beginning in the fourth quarter
of 2017, we revised our calculation of Adjusted EPS to exclude the
beneficial impact of the deferred tax revaluation recognized as a result
of The Tax Cuts and Jobs Act of 2017 and the release of a valuation
allowance in Canada as such tax assets are likely to be realized in
future periods. The revision to this definition had no impact on our
reported Adjusted EPS for the three or nine months ended September 30,
2018 or October 1, 2017. 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.
* See "Non-GAAP Financial Measures and Related Information" for
definition and reconciliation of non-GAAP measures.
MASONITE INTERNATIONAL CORPORATION
|
SALES RECONCILIATION AND ADJUSTED EBITDA BY REPORTABLE SEGMENT
|
(In millions of U.S. dollars)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North
|
|
|
|
|
|
|
|
|
|
|
|
|
American
|
|
|
|
|
|
Corporate &
|
|
|
|
%
|
|
|
|
Residential
|
|
Europe
|
|
Architectural
|
|
Other
|
|
Total
|
|
Change
|
Third quarter 2017 net sales
|
|
$
|
364.2
|
|
|
$
|
74.8
|
|
|
$
|
73.6
|
|
|
$
|
4.9
|
|
|
$
|
517.5
|
|
|
|
Acquisition volume
|
|
—
|
|
|
18.5
|
|
|
19.4
|
|
|
—
|
|
|
37.9
|
|
|
7.3
|
%
|
Base volume
|
|
(9.0
|
)
|
|
(5.0
|
)
|
|
(5.9
|
)
|
|
0.5
|
|
|
(19.4
|
)
|
|
(3.7
|
)%
|
Average unit price
|
|
15.6
|
|
|
3.3
|
|
|
3.2
|
|
|
—
|
|
|
22.1
|
|
|
4.3
|
%
|
Components and other
|
|
1.4
|
|
|
(0.1
|
)
|
|
2.2
|
|
|
0.2
|
|
|
3.7
|
|
|
0.7
|
%
|
Foreign exchange
|
|
(3.9
|
)
|
|
(0.3
|
)
|
|
(0.4
|
)
|
|
0.1
|
|
|
(4.6
|
)
|
|
(0.9
|
)%
|
Third quarter 2018 net sales
|
|
$
|
368.3
|
|
|
$
|
91.2
|
|
|
$
|
92.1
|
|
|
$
|
5.6
|
|
|
$
|
557.1
|
|
|
|
Year over year growth, net sales
|
|
1.1
|
%
|
|
21.9
|
%
|
|
25.1
|
%
|
|
14.3
|
%
|
|
7.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third quarter 2017 Adjusted EBITDA
|
|
$
|
50.1
|
|
|
$
|
8.3
|
|
|
$
|
8.7
|
|
|
$
|
2.3
|
|
|
$
|
69.4
|
|
|
|
Third quarter 2018 Adjusted EBITDA
|
|
53.4
|
|
|
10.7
|
|
|
11.2
|
|
|
(4.6
|
)
|
|
70.8
|
|
|
|
Year over year growth, Adjusted EBITDA
|
|
6.6
|
%
|
|
28.9
|
%
|
|
28.7
|
%
|
|
nm
|
|
2.0
|
%
|
|
|
|
|
North
|
|
|
|
|
|
|
|
|
|
|
|
|
American
|
|
|
|
|
|
Corporate &
|
|
|
|
|
|
|
Residential
|
|
Europe
|
|
Architectural
|
|
Other
|
|
Total
|
|
% Change
|
Year to date 2018 net sales
|
|
$
|
1,070.1
|
|
$
|
218.6
|
|
$
|
218.9
|
|
$
|
16.8
|
|
$
|
1,524.4
|
|
|
|
Acquisition volume
|
|
—
|
|
48.0
|
|
31.0
|
|
—
|
|
79.0
|
|
|
5.2%
|
Base volume
|
|
3.4
|
|
(14.9)
|
|
(24.0)
|
|
(0.6)
|
|
(36.1
|
)
|
|
(2.4)%
|
Average unit price
|
|
26.3
|
|
13.4
|
|
12.8
|
|
—
|
|
52.5
|
|
|
3.4%
|
Components and other
|
|
3.3
|
|
0.1
|
|
1.4
|
|
(0.1)
|
|
4.7
|
|
|
0.3%
|
Foreign exchange
|
|
2.7
|
|
13.9
|
|
0.4
|
|
0.3
|
|
17.3
|
|
|
1.1%
|
Year to date 2018 net sales
|
|
$
|
1,105.8
|
|
$
|
279.1
|
|
$
|
240.5
|
|
$
|
16.4
|
|
$
|
1,641.8
|
|
|
|
Year over year growth, net sales
|
|
3.3%
|
|
27.7%
|
|
9.9%
|
|
(2.4)%
|
|
7.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year to date 2017 Adjusted EBITDA
|
|
$
|
149.7
|
|
$
|
25.0
|
|
$
|
21.4
|
|
$
|
(5.8)
|
|
$
|
190.3
|
|
|
|
Year to date 2018 Adjusted EBITDA
|
|
162.8
|
|
34.3
|
|
30.9
|
|
(17.5)
|
|
210.5
|
|
|
|
Year over year growth, Adjusted EBITDA
|
|
8.8%
|
|
37.2%
|
|
44.4%
|
|
nm
|
|
10.6
|
%
|
|
|
MASONITE INTERNATIONAL CORPORATION
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands of U.S. dollars, except share and per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
September 30,
|
|
October 1,
|
|
September 30,
|
|
October 1,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Net sales
|
|
$
|
557,148
|
|
$
|
517,503
|
|
$
|
1,641,753
|
|
$
|
1,524,425
|
Cost of goods sold
|
|
446,306
|
|
413,517
|
|
1,301,808
|
|
1,217,556
|
Gross profit
|
|
110,842
|
|
103,986
|
|
339,945
|
|
306,869
|
Gross profit as a % of net sales
|
|
19.9%
|
|
20.1%
|
|
20.7%
|
|
20.1%
|
|
|
|
|
|
|
|
|
|
Selling, general and administration expenses
|
|
64,530
|
|
59,063
|
|
204,592
|
|
188,043
|
Selling, general and administration expenses as a % of net sales
|
|
11.6%
|
|
11.4%
|
|
12.5%
|
|
12.3%
|
|
|
|
|
|
|
|
|
|
Restructuring costs, net
|
|
—
|
|
1,393
|
|
—
|
|
986
|
Loss (gain) on disposal of subsidiaries
|
|
—
|
|
—
|
|
—
|
|
212
|
Operating income (loss)
|
|
46,312
|
|
43,530
|
|
135,353
|
|
117,628
|
Interest expense (income), net
|
|
10,151
|
|
7,213
|
|
27,981
|
|
21,349
|
Loss on extinguishment of debt
|
|
5,414
|
|
—
|
|
5,414
|
|
—
|
Other expense (income), net
|
|
(1,105)
|
|
(451)
|
|
(2,347)
|
|
(1,253)
|
Income (loss) from continuing operations before income tax
expense (benefit)
|
|
31,852
|
|
36,768
|
|
104,305
|
|
97,532
|
Income tax expense (benefit)
|
|
6,151
|
|
5,989
|
|
20,746
|
|
13,242
|
Income (loss) from continuing operations
|
|
25,701
|
|
30,779
|
|
83,559
|
|
84,290
|
Income (loss) from discontinued operations, net of tax
|
|
(157)
|
|
(139)
|
|
(538)
|
|
(518)
|
Net income (loss)
|
|
25,544
|
|
30,640
|
|
83,021
|
|
83,772
|
Less: net income (loss) attributable to non-controlling interest
|
|
748
|
|
1,162
|
|
2,658
|
|
3,845
|
Net income (loss) attributable to Masonite
|
|
$
|
24,796
|
|
$
|
29,478
|
|
$
|
80,363
|
|
$
|
79,927
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per common share attributable to Masonite:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.90
|
|
$
|
1.01
|
|
$
|
2.90
|
|
$
|
2.70
|
Diluted
|
|
$
|
0.89
|
|
$
|
1.00
|
|
$
|
2.85
|
|
$
|
2.65
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per common share from continuing operations
attributable to Masonite:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.91
|
|
$
|
1.02
|
|
$
|
2.91
|
|
$
|
2.72
|
Diluted
|
|
$
|
0.89
|
|
$
|
1.00
|
|
$
|
2.87
|
|
$
|
2.67
|
|
|
|
|
|
|
|
|
|
Shares used in computing basic earnings per share
|
|
27,477,430
|
|
29,086,174
|
|
27,758,784
|
|
29,579,076
|
Shares used in computing diluted earnings per share
|
|
27,911,940
|
|
29,574,793
|
|
28,234,063
|
|
30,136,303
|
MASONITE INTERNATIONAL CORPORATION
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In thousands of U.S. dollars, except share amounts)
|
(Unaudited)
|
|
|
|
|
ASSETS
|
September 30,
2018
|
|
December 31,
2017
|
Current assets:
|
|
|
|
Cash and cash equivalents
|
$
|
192,843
|
|
|
$
|
176,669
|
|
Restricted cash
|
10,485
|
|
|
11,895
|
|
Accounts receivable, net
|
301,599
|
|
|
269,235
|
|
Inventories, net
|
249,742
|
|
|
234,042
|
|
Prepaid expenses
|
30,193
|
|
|
27,665
|
|
Income taxes receivable
|
1,994
|
|
|
2,364
|
|
Total current assets
|
786,856
|
|
|
721,870
|
|
Property, plant and equipment, net
|
594,281
|
|
|
573,559
|
|
Investment in equity investees
|
12,782
|
|
|
11,310
|
|
Goodwill
|
178,862
|
|
|
138,449
|
|
Intangible assets, net
|
222,657
|
|
|
182,484
|
|
Long-term deferred income taxes
|
28,079
|
|
|
29,899
|
|
Other assets, net
|
27,974
|
|
|
22,687
|
|
Total assets
|
$
|
1,851,491
|
|
|
$
|
1,680,258
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
Current liabilities:
|
|
|
|
Accounts payable
|
$
|
103,454
|
|
|
$
|
94,497
|
|
Accrued expenses
|
133,482
|
|
|
126,759
|
|
Income taxes payable
|
4,248
|
|
|
869
|
|
Total current liabilities
|
241,184
|
|
|
222,125
|
|
Long-term debt
|
796,388
|
|
|
625,657
|
|
Long-term deferred income taxes
|
80,006
|
|
|
60,820
|
|
Other liabilities
|
30,227
|
|
|
35,754
|
|
Total liabilities
|
1,147,805
|
|
|
944,356
|
|
Commitments and Contingencies
|
|
|
|
Equity:
|
|
|
|
Share capital: unlimited shares authorized, no par value, 27,135,071
and 28,369,877 shares issued and outstanding as of September 30,
2018, and December 31, 2017, respectively
|
603,965
|
|
|
624,403
|
|
Additional paid-in capital
|
220,032
|
|
|
226,528
|
|
Retained earnings (accumulated deficit)
|
139
|
|
|
(18,150
|
)
|
Accumulated other comprehensive income (loss)
|
(132,333
|
)
|
|
(110,152
|
)
|
Total equity attributable to Masonite
|
691,803
|
|
|
722,629
|
|
Equity attributable to non-controlling interests
|
11,883
|
|
|
13,273
|
|
Total equity
|
703,686
|
|
|
735,902
|
|
Total liabilities and equity
|
$
|
1,851,491
|
|
|
$
|
1,680,258
|
|
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)
|
September 30,
2018
|
|
October 1,
2017
|
|
September 30,
2018
|
|
October 1,
2017
|
Net income (loss) attributable to Masonite
|
$
|
24,796
|
|
|
$
|
29,478
|
|
|
$
|
80,363
|
|
|
$
|
79,927
|
|
|
|
|
|
|
|
|
Add: Loss (gain) on disposal of subsidiaries
|
—
|
|
|
—
|
|
|
—
|
|
|
212
|
Add: Loss on extinguishment of debt
|
5,414
|
|
|
—
|
|
|
5,414
|
|
|
—
|
Income tax impact of adjustments
|
(1,435
|
)
|
|
—
|
|
|
(1,435
|
)
|
|
—
|
Adjusted net income (loss) attributable to Masonite
|
$
|
28,775
|
|
|
$
|
29,478
|
|
|
$
|
84,342
|
|
|
$
|
80,139
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per common share attributable to Masonite
("EPS")
|
$
|
0.89
|
|
|
$
|
1.00
|
|
|
$
|
2.85
|
|
|
$
|
2.65
|
Diluted adjusted earnings (loss) per common share attributable to
Masonite ("Adjusted EPS")
|
$
|
1.03
|
|
|
$
|
1.00
|
|
|
$
|
2.99
|
|
|
$
|
2.66
|
|
|
|
|
|
|
|
|
Shares used in computing diluted EPS
|
27,911,940
|
|
|
29,574,793
|
|
|
28,234,063
|
|
|
30,136,303
|
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.
|
|
Three Months Ended September 30, 2018
|
|
|
North
|
|
|
|
|
|
|
|
|
|
|
American
|
|
|
|
|
|
Corporate &
|
|
|
(In thousands)
|
|
Residential
|
|
Europe
|
|
Architectural
|
|
Other
|
|
Total
|
Adjusted EBITDA
|
|
$
|
53,414
|
|
|
$
|
10,678
|
|
|
$
|
11,228
|
|
|
$
|
(4,559
|
)
|
|
$
|
70,761
|
|
Less (plus):
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
7,571
|
|
|
2,612
|
|
|
3,060
|
|
|
2,463
|
|
|
15,706
|
|
Amortization
|
|
269
|
|
|
3,603
|
|
|
2,343
|
|
|
826
|
|
|
7,041
|
|
Share based compensation expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,640
|
|
|
1,640
|
|
Loss (gain) on disposal of property, plant and equipment
|
|
43
|
|
|
24
|
|
|
(5
|
)
|
|
—
|
|
|
62
|
|
Interest expense (income), net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,151
|
|
|
10,151
|
|
Loss on extinguishment of debt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,414
|
|
|
5,414
|
|
Other expense (income), net
|
|
—
|
|
|
124
|
|
|
—
|
|
|
(1,229
|
)
|
|
(1,105
|
)
|
Income tax expense (benefit)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,151
|
|
|
6,151
|
|
Loss (income) from discontinued operations, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
157
|
|
|
157
|
|
Net income (loss) attributable to non-controlling interest
|
|
644
|
|
|
—
|
|
|
—
|
|
|
104
|
|
|
748
|
|
Net income (loss) attributable to Masonite
|
|
$
|
44,887
|
|
|
$
|
4,315
|
|
|
$
|
5,830
|
|
|
$
|
(30,236
|
)
|
|
$
|
24,796
|
|
|
|
Three Months Ended October 1, 2017
|
|
|
North
|
|
|
|
|
|
|
|
|
|
|
American
|
|
|
|
|
|
Corporate &
|
|
|
(In thousands)
|
|
Residential
|
|
Europe
|
|
Architectural
|
|
Other
|
|
Total
|
Adjusted EBITDA
|
|
$
|
50,126
|
|
|
$
|
8,283
|
|
|
$
|
8,692
|
|
|
$
|
2,340
|
|
|
$
|
69,441
|
|
Less (plus):
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
7,871
|
|
|
2,008
|
|
|
2,081
|
|
|
2,214
|
|
|
14,174
|
|
Amortization
|
|
869
|
|
|
2,061
|
|
|
2,075
|
|
|
1,211
|
|
|
6,216
|
|
Share based compensation expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,740
|
|
|
2,740
|
|
Loss (gain) on disposal of property, plant and equipment
|
|
877
|
|
|
244
|
|
|
33
|
|
|
234
|
|
|
1,388
|
|
Restructuring costs
|
|
—
|
|
|
69
|
|
|
1,378
|
|
|
(54
|
)
|
|
1,393
|
|
Interest expense (income), net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,213
|
|
|
7,213
|
|
Other expense (income), net
|
|
—
|
|
|
41
|
|
|
—
|
|
|
(492
|
)
|
|
(451
|
)
|
Income tax expense (benefit)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,989
|
|
|
5,989
|
|
Loss (income) from discontinued operations, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
139
|
|
|
139
|
|
Net income (loss) attributable to non-controlling interest
|
|
844
|
|
|
—
|
|
|
—
|
|
|
318
|
|
|
1,162
|
|
Net income (loss) attributable to Masonite
|
|
$
|
39,665
|
|
|
$
|
3,860
|
|
|
$
|
3,125
|
|
|
$
|
(17,172
|
)
|
|
$
|
29,478
|
|
|
|
Nine Months Ended September 30, 2018
|
|
|
North
|
|
|
|
|
|
|
|
|
|
|
American
|
|
|
|
|
|
Corporate &
|
|
|
(In thousands)
|
|
Residential
|
|
Europe
|
|
Architectural
|
|
Other
|
|
Total
|
Adjusted EBITDA
|
|
$
|
162,775
|
|
|
$
|
34,250
|
|
|
$
|
30,886
|
|
|
$
|
(17,450
|
)
|
|
$
|
210,461
|
|
Less (plus):
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
22,005
|
|
|
7,490
|
|
|
7,282
|
|
|
6,563
|
|
|
43,340
|
|
Amortization
|
|
1,045
|
|
|
10,900
|
|
|
6,854
|
|
|
2,152
|
|
|
20,951
|
|
Share based compensation expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,243
|
|
|
8,243
|
|
Loss (gain) on disposal of property, plant and equipment
|
|
1,048
|
|
|
30
|
|
|
98
|
|
|
1,398
|
|
|
2,574
|
|
Interest expense (income), net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27,981
|
|
|
27,981
|
|
Loss on extinguishment of debt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,414
|
|
|
5,414
|
|
Other expense (income), net
|
|
—
|
|
|
306
|
|
|
—
|
|
|
(2,653
|
)
|
|
(2,347
|
)
|
Income tax expense (benefit)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20,746
|
|
|
20,746
|
|
Loss (income) from discontinued operations, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
538
|
|
|
538
|
|
Net income (loss) attributable to non-controlling interest
|
|
2,505
|
|
|
—
|
|
|
—
|
|
|
153
|
|
|
2,658
|
|
Net income (loss) attributable to Masonite
|
|
$
|
136,172
|
|
|
$
|
15,524
|
|
|
$
|
16,652
|
|
|
$
|
(87,985
|
)
|
|
$
|
80,363
|
|
|
|
Nine Months Ended October 1, 2017
|
|
|
North
|
|
|
|
|
|
|
|
|
|
|
American
|
|
|
|
|
|
Corporate &
|
|
|
(In thousands)
|
|
Residential
|
|
Europe
|
|
Architectural
|
|
Other
|
|
Total
|
Adjusted EBITDA
|
|
$
|
149,669
|
|
|
$
|
25,022
|
|
|
$
|
21,401
|
|
|
$
|
(5,786
|
)
|
|
$
|
190,306
|
|
Less (plus):
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
22,651
|
|
|
7,212
|
|
|
6,865
|
|
|
6,747
|
|
|
43,475
|
|
Amortization
|
|
2,504
|
|
|
5,756
|
|
|
6,391
|
|
|
3,131
|
|
|
17,782
|
|
Share based compensation expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,694
|
|
|
8,694
|
|
Loss (gain) on disposal of property, plant and equipment
|
|
674
|
|
|
513
|
|
|
(160
|
)
|
|
502
|
|
|
1,529
|
|
Restructuring costs
|
|
—
|
|
|
(27
|
)
|
|
2,152
|
|
|
(1,139
|
)
|
|
986
|
|
Loss (gain) on disposal of subsidiaries
|
|
—
|
|
|
212
|
|
|
—
|
|
|
—
|
|
|
212
|
|
Interest expense (income), net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21,349
|
|
|
21,349
|
|
Other expense (income), net
|
|
—
|
|
|
182
|
|
|
—
|
|
|
(1,435
|
)
|
|
(1,253
|
)
|
Income tax expense (benefit)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,242
|
|
|
13,242
|
|
Loss (income) from discontinued operations, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
518
|
|
|
518
|
|
Net income (loss) attributable to non-controlling interest
|
|
2,686
|
|
|
—
|
|
|
—
|
|
|
1,159
|
|
|
3,845
|
|
Net income (loss) attributable to Masonite
|
|
$
|
121,154
|
|
|
$
|
11,174
|
|
|
$
|
6,153
|
|
|
$
|
(58,554
|
)
|
|
$
|
79,927
|
|
View source version on businesswire.com:
https://www.businesswire.com/news/home/20181106005991/en/
Masonite International Corporation
Joanne Freiberger, CPA, CTP,
IRC, 813-739-1808
VP, Treasurer
jfreiberger@masonite.com
or
Farand
Pawlak, CPA, 813-371-5839
Director, Investor Relations
fpawlak@masonite.com
Source: Masonite International Corporation