TAMPA, Fla.--(BUSINESS WIRE)--
Masonite International Corporation ("Masonite" or "the Company") (NYSE:
DOOR) today announced results for the three months and year ended
January 3, 2016.
Executive Summary
-
Net sales increased $36.5 million or 8.1% to $485.4 million and $34.3
million or 1.9% to $1,872.0 million for the fourth quarter and fiscal
year, respectively, over the comparable 2014 periods. Excluding the
unfavorable impact of foreign exchange, net sales would have increased
by 12.7% to $505.8 million and 6.9% to $1,964.9 million for the fourth
quarter and fiscal year, respectively.
-
Net loss attributable to Masonite was $13.2 million, or $0.43 per
diluted share, and $47.1 million, or $1.56 per diluted share, in the
fourth quarter and fiscal year, respectively.
-
Adjusted EBITDA1 increased $19.1 million, or 50.7%, to
$56.8 million in the fourth quarter and $67.1 million, or 48.9% to
$204.2 million in the fiscal year versus the comparable 2014 periods.
For the full year 2015, Adjusted EBITDA margin was 10.9%.
-
Adjusted earnings per diluted share1 increased to $0.54
from $0.02 and increased to $1.49 from $(0.68) for the fourth quarter
and fiscal year, respectively, versus the comparable 2014 periods.
-
Announced a share repurchase authorization of up to $150 million.
“We delivered a seventh consecutive quarter of double digit Adjusted
EBITDA growth in the fourth quarter. Adjusted EBITDA increased more than
50% compared to the same period last year and we reported double digit
Adjusted EBITDA margins for the third consecutive quarter. Our continued
focus on innovation, customer service, strategic acquisitions, and a
disciplined focus on margins across the business portfolio drove the
tremendous results in 2015,” said Fred Lynch, President and CEO. “We
believe we are well positioned for continued strong growth in 2016 as we
partner with our customers to provide best in class products and service
levels and deliver an unparalleled customer experience.”
Fourth Quarter 2015
Net sales increased 8.1% to $485.4 million in the fourth quarter of 2015
from $448.9 million in the comparable period of 2014. Excluding the
$20.4 million unfavorable impact of foreign exchange, net sales would
have increased by 12.7% to $505.8 million. The increase was primarily
due to $38.3 million of increased unit volumes, $14.3 million
improvement in average unit price and a $4.3 million increase in net
sales of other products.
Total company gross profit increased to $95.0 million in the fourth
quarter of 2015, from $67.6 million in the comparable 2014 period. Gross
profit margin increased 450 basis points to 19.6% of net sales in the
fourth quarter of 2015, from 15.1% of net sales in the fourth quarter of
2014, primarily due to increases in average unit price.
Selling, general and administrative (SG&A) expense in the fourth quarter
was $67.6 million, an increase of $13.7 million from the comparable 2014
period primarily driven by an increase in personnel costs and the impact
of our acquisitions in 2015, partially offset by the removal of SG&A
from the Company's door business in France which was sold in August 2015.
Net loss attributable to Masonite decreased $3.2 million to $13.2
million, or $0.43 per diluted share in the fourth quarter of 2015 which
includes $30.3 million of charges related to the deconsolidation of our
South Africa subsidiary.
Adjusted EBITDA increased 50.7% to $56.8 million in the fourth quarter
of 2015, from $37.7 million in the fourth quarter of 2014. As a
percentage of net sales, Adjusted EBITDA increased 330 basis points to
11.7%.
Adjusting for the South African deconsolidation charge, net income
attributable to Masonite would have been $17.0 million resulting in
Adjusted earnings per diluted share of $0.54 in the fourth quarter of
2015, an increase from $0.02 in the fourth quarter of 2014.
Full Year 2015 Discussion
Net sales for the year ended January 3, 2016 increased 1.9% to $1.9
billion versus the comparable period of 2014. Excluding the $92.9
million unfavorable impact of foreign exchange, net sales would have
increased 6.9%. The increase was primarily due to a $94.3 million
improvement in average unit price, $30.5 million of higher unit volumes
and a $2.4 million increase in net sales of other products.
Total company gross profit increased to $350.9 million in the year ended
January 3, 2016, from $265.4 million in the year ended December 28,
2014. Gross profit margin increased 430 basis points to 18.7% of net
sales in the fiscal year ended January 3, 2016, from 14.4% of net sales
in the comparable period of 2014, primarily due to increases in average
unit price.
Selling, general and administrative (SG&A) expense in the year ended
January 3, 2016 was $244.1 million, an increase of $20.0 million from
the year ended December 28, 2014, primarily driven by increases in
personnel costs and additional SG&A from our 2015 acquisitions partially
offset by the 2015 disposition of the Company's door business in France,
the 2014 exit from Israel and a beneficial foreign exchange impact.
Net loss attributable to Masonite increased $9.8 million to $47.1
million, or $1.56 per diluted share in the year ended January 3, 2016,
which includes charges of $39.2 million related to the disposition of
the Company's door business in France, $30.3 million related to the
deconsolidation our South Africa subsidiary and the $28.0 million loss
on extinguishment of debt versus the comparable 2014 period.
Adjusted EBITDA increased $67.1 million to $204.2 million for the year
ended January 3, 2016, from $137.1 million in the comparable period of
2014. As a percentage of net sales, Adjusted EBITDA increased 340 basis
points to 10.9%.
Adjusting for the charges, net income for the year ended January 3, 2016
would have been $47.1 million and Adjusted earnings per diluted share
would have been $1.49, an increase from $(0.68) in 2014.
South Africa Update
Masonite (Africa) Limited has appointed a transaction advisor in
connection with the potential sale of the business.
2016 Outlook
Masonite’s 2016 annual outlook assumes mid-single digit U.S. housing
completions, low to mid-single digit growth in the U.S. repair,
renovation and remodel market and continued strength in the UK housing
market. Based on the Company's expectation to outperform the market, and
the net impact of the 2015 disposition of our door business in France
and UK acquisitions, the Company expects full-year 2016 net sales growth
in the range of six to eight percent. Excluding anticipated impacts of
foreign exchange the Company expects net sales growth of seven to nine
percent.
The Company expects Adjusted EBITDA to be in the range of $235 million
to $255 million.
Masonite Earnings Conference Call
The Company will hold a live conference call and webcast on February 25,
2016. The live audio webcast will begin at 10:00 a.m. ET and can be
accessed, together with the presentation, on the Masonite website under
Investors > Events & Presentations. The webcast can be directly accessed
at: Q4'15
Earnings Webcast.
Telephone access to the live call will be available at 877-407-3980 (in
the U.S.) or by dialing 201-689-8475 (outside U.S.).
A telephone replay will be available approximately one hour following
completion of the call through March 10, 2016. To access the replay,
please dial 877-660-6853(in the U.S.) or 201-612-7415 (outside U.S.).
Enter Conference ID #13628426.
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. During 2015, Masonite served more than 8,000
customers in 73 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 improvements in
the housing market and related markets and the effects of our pricing
and other strategies. 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, general economic, market and business conditions; levels of
residential new construction, residential repair, renovation and
remodeling and non-residential building construction activity;
competition; our ability to successfully implement our business
strategy; 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 and to meet our debt service obligations,
including our obligations under our senior notes and our senior secured
asset-backed credit facility; labor relations (i.e., disruptions,
strikes or work stoppages), labor costs, and availability of labor;
increases in the costs of raw materials or any shortage in supplies; our
ability to keep pace with technological developments; the actions by,
and the continued success of, certain key customers; our ability to
maintain relationships with certain customers; new contractual
commitments; our ability to generate the benefits of our restructuring
activities; retention of key management personnel; environmental and
other government regulations; limitations on operating our business as a
result of covenant restrictions under our existing and future
indebtedness, including our senior notes and senior secured asset-based
credit facility; and other factors publicly disclosed by the company
from time to time.
|
MASONITE INTERNATIONAL CORPORATION
SALES RECONCILIATION AND ADJUSTED EBITDA BY REPORTABLE SEGMENT
(In millions of U.S. dollars)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe,
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia and
|
|
|
|
|
|
|
|
|
|
|
North
|
|
Latin
|
|
|
|
|
|
|
|
|
|
|
America
|
|
America
|
|
Africa
|
|
Total
|
|
% Change
|
|
|
Fourth quarter 2014 net sales
|
|
$
|
|
338
|
.8
|
|
|
$
|
|
93
|
.0
|
|
|
$
|
|
17
|
.1
|
|
|
$
|
|
448
|
.9
|
|
|
|
|
|
Volume*
|
|
39
|
.4
|
|
|
(2
|
.6
|
)
|
|
1
|
.5
|
|
|
38
|
.3
|
|
|
8
|
.5
|
%
|
|
Average unit price
|
|
13
|
.8
|
|
|
4
|
.8
|
|
|
(4
|
.2
|
)
|
|
14
|
.3
|
|
|
3
|
.2
|
%
|
|
Other
|
|
2
|
.7
|
|
|
1
|
.6
|
|
|
—
|
|
|
|
4
|
.3
|
|
|
1
|
.0
|
%
|
|
Foreign exchange
|
|
(14
|
.4
|
)
|
|
(3
|
.1
|
)
|
|
(2
|
.9
|
)
|
|
(20
|
.4
|
)
|
|
(4
|
.5)
|
%
|
|
Fourth quarter 2015 net sales
|
|
$
|
|
380
|
.3
|
|
|
$
|
|
93
|
.7
|
|
|
$
|
|
11
|
.5
|
|
|
$
|
|
485
|
.4
|
|
|
8
|
.1
|
%
|
|
Year over year growth, net sales
|
|
12
|
.2
|
%
|
|
0
|
.8
|
%
|
|
(32
|
.7
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth quarter 2014 Adjusted EBITDA
|
|
$
|
|
29
|
.1
|
|
|
$
|
|
5
|
.8
|
|
|
$
|
|
2
|
.9
|
|
|
$
|
|
37
|
.7
|
|
|
|
|
|
Fourth quarter 2015 Adjusted EBITDA
|
|
$
|
|
45
|
.3
|
|
|
$
|
|
11
|
.5
|
|
|
$
|
|
—
|
|
|
|
$
|
|
56
|
.8
|
|
|
50
|
.7
|
%
|
|
Year over year growth, Adjusted EBITDA
|
|
55
|
.7
|
%
|
|
98
|
.3
|
%
|
|
(100
|
.0
|
)%
|
|
|
|
|
|
|
|
|
|
|
Europe,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia and
|
|
|
|
|
|
|
|
|
|
|
|
North
|
|
Latin
|
|
|
|
|
|
|
|
|
|
|
|
America
|
|
America
|
|
Africa
|
|
Total
|
|
% Change
|
|
|
Year to date 2014 net sales
|
|
$
|
|
1,396
|
.0
|
|
|
$
|
|
385
|
.1
|
|
|
$
|
|
56
|
.6
|
|
|
$
|
|
1,837
|
.7
|
|
|
|
|
|
Volume*
|
|
40
|
.0
|
|
|
(13
|
.6
|
)
|
|
4
|
.0
|
|
|
30
|
.5
|
|
|
1
|
.7
|
%
|
|
Average unit price
|
|
78
|
.3
|
|
|
19
|
.7
|
|
|
(3
|
.7
|
)
|
|
94
|
.3
|
|
|
5
|
.1
|
%
|
|
Other
|
|
3
|
.7
|
|
|
(1
|
.3
|
)
|
|
—
|
|
|
|
2
|
.4
|
|
|
0
|
.1
|
%
|
|
Foreign exchange
|
|
(50
|
.9
|
)
|
|
(33
|
.7
|
)
|
|
(8
|
.3
|
)
|
|
(92
|
.9
|
)
|
|
(5
|
.1)
|
%
|
|
Year to date 2015 net sales
|
|
$
|
|
1,467
|
.1
|
|
|
$
|
|
356
|
.2
|
|
|
$
|
|
48
|
.6
|
|
|
$
|
|
1,872
|
.0
|
|
|
1
|
.9
|
%
|
|
Year over year growth, net sales
|
|
5
|
.1
|
%
|
|
(7
|
.5
|
)%
|
|
(14
|
.1
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year to date 2014 Adjusted EBITDA
|
|
$
|
|
121
|
.1
|
|
|
$
|
|
15
|
.8
|
|
|
$
|
|
0
|
.3
|
|
|
$
|
|
137
|
.1
|
|
|
|
|
|
Year to date 2015 Adjusted EBITDA
|
|
$
|
|
165
|
.2
|
|
|
$
|
|
40
|
.0
|
|
|
$
|
|
(1
|
.0
|
)
|
|
$
|
|
204
|
.2
|
|
|
48
|
.9
|
%
|
|
Year over year growth, Adjusted EBITDA
|
|
36
|
.4
|
%
|
|
153
|
.2
|
%
|
|
(433
|
.3
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) Includes the incremental impact of acquisitions and
dispositions.
|
|
MASONITE INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of U.S. dollars, except share and per share
amounts)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
|
January 3,
|
|
December 28,
|
|
January 3,
|
|
December 28,
|
|
|
|
2016
|
|
2014
|
|
2016
|
|
2014
|
|
Net sales
|
|
$
|
|
485,422
|
|
|
$
|
|
448,940
|
|
|
$
|
|
1,871,965
|
|
|
$
|
|
1,837,700
|
|
|
Cost of goods sold
|
|
390,424
|
|
|
381,364
|
|
|
1,521,115
|
|
|
1,572,301
|
|
|
Gross profit
|
|
94,998
|
|
|
67,576
|
|
|
350,850
|
|
|
265,399
|
|
|
Gross profit as a % of net sales
|
|
19.6
|
%
|
|
15.1
|
%
|
|
18.7
|
%
|
|
14.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administration expenses
|
|
67,576
|
|
|
53,928
|
|
|
244,145
|
|
|
224,077
|
|
|
Selling, general and administration expenses as a % of net sales
|
|
13.9
|
%
|
|
12.0
|
%
|
|
13.0
|
%
|
|
12.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring costs
|
|
1,195
|
|
|
(57
|
)
|
|
5,678
|
|
|
11,137
|
|
|
Asset impairment
|
|
—
|
|
|
18,202
|
|
|
9,439
|
|
|
18,202
|
|
|
Loss (gain) on disposal of subsidiaries
|
|
30,263
|
|
|
—
|
|
|
59,984
|
|
|
—
|
|
|
Operating income (loss)
|
|
(4,036
|
)
|
|
(4,497
|
)
|
|
31,604
|
|
|
11,983
|
|
|
Interest expense (income), net
|
|
7,165
|
|
|
10,491
|
|
|
32,884
|
|
|
41,525
|
|
|
Loss on extinguishment of debt
|
|
—
|
|
|
—
|
|
|
28,046
|
|
|
—
|
|
|
Other expense (income), net
|
|
1,782
|
|
|
(1,670
|
)
|
|
(1,757
|
)
|
|
(587
|
)
|
|
Income (loss) from continuing operations before income tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expense (benefit)
|
|
(12,983
|
)
|
|
(13,318
|
)
|
|
(27,569
|
)
|
|
(28,955
|
)
|
|
Income tax expense (benefit)
|
|
(1,595
|
)
|
|
1,131
|
|
|
14,172
|
|
|
4,533
|
|
|
Income (loss) from continuing operations
|
|
(11,388
|
)
|
|
(14,449
|
)
|
|
(41,741
|
)
|
|
(33,488
|
)
|
|
Income (loss) from discontinued operations, net of tax
|
|
(247
|
)
|
|
(194
|
)
|
|
(908
|
)
|
|
(630
|
)
|
|
Net income (loss)
|
|
(11,635
|
)
|
|
(14,643
|
)
|
|
(42,649
|
)
|
|
(34,118
|
)
|
|
Less: net income (loss) attributable to non-controlling interest
|
|
1,583
|
|
|
1,724
|
|
|
4,462
|
|
|
3,222
|
|
|
Net income (loss) attributable to Masonite
|
|
$
|
|
(13,218
|
)
|
|
$
|
|
(16,367
|
)
|
|
$
|
|
(47,111
|
)
|
|
$
|
|
(37,340
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per common share attributable to Masonite:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
|
(0.43
|
)
|
|
$
|
|
(0.55
|
)
|
|
$
|
|
(1.56
|
)
|
|
$
|
|
(1.26
|
)
|
|
Diluted
|
|
$
|
|
(0.43
|
)
|
|
$
|
|
(0.55
|
)
|
|
$
|
|
(1.56
|
)
|
|
$
|
|
(1.26
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per common share from continuing operations
|
|
|
|
|
|
|
|
|
|
attributable to Masonite:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
|
(0.43
|
)
|
|
$
|
|
(0.54
|
)
|
|
$
|
|
(1.53
|
)
|
|
$
|
|
(1.24
|
)
|
|
Diluted
|
|
$
|
|
(0.43
|
)
|
|
$
|
|
(0.54
|
)
|
|
$
|
|
(1.53
|
)
|
|
$
|
|
(1.24
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing basic earnings per share
|
|
30,402,479
|
|
|
29,915,729
|
|
|
30,266,747
|
|
|
29,588,001
|
|
|
Shares used in computing diluted earnings per share
|
|
30,402,479
|
|
|
29,915,729
|
|
|
30,266,747
|
|
|
29,588,001
|
|
|
MASONITE INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars, except share amounts)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
January 3,
|
|
December 28,
|
|
ASSETS
|
|
2016
|
|
2014
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
|
89,187
|
|
|
$
|
|
192,037
|
|
|
Restricted cash
|
|
12,645
|
|
|
13,187
|
|
|
Accounts receivable, net
|
|
224,976
|
|
|
241,721
|
|
|
Inventories, net
|
|
208,393
|
|
|
222,732
|
|
|
Prepaid expenses
|
|
21,983
|
|
|
21,103
|
|
|
Income taxes receivable
|
|
1,762
|
|
|
1,796
|
|
|
Total current assets
|
|
558,946
|
|
|
692,576
|
|
|
Property, plant and equipment, net
|
|
534,234
|
|
|
576,234
|
|
|
Investment in equity investees
|
|
18,811
|
|
|
8,827
|
|
|
Goodwill
|
|
128,170
|
|
|
99,199
|
|
|
Intangible assets, net
|
|
225,932
|
|
|
203,372
|
|
|
Long-term deferred income taxes
|
|
16,899
|
|
|
19,194
|
|
|
Other assets, net
|
|
16,157
|
|
|
16,744
|
|
|
Total assets
|
|
$
|
|
1,499,149
|
|
|
$
|
|
1,616,146
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
|
96,480
|
|
|
$
|
|
98,199
|
|
|
Accrued expenses
|
|
136,029
|
|
|
137,681
|
|
|
Income taxes payable
|
|
9
|
|
|
1,361
|
|
|
Total current liabilities
|
|
232,518
|
|
|
237,241
|
|
|
Long-term debt
|
|
468,856
|
|
|
503,785
|
|
|
Long-term deferred income taxes
|
|
98,682
|
|
|
85,507
|
|
|
Other liabilities
|
|
43,527
|
|
|
54,114
|
|
|
Total liabilities
|
|
843,583
|
|
|
880,647
|
|
|
Commitments and Contingencies
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
Share capital: unlimited shares authorized, no par value, 30,427,865
and
|
|
|
|
|
|
|
|
30,015,321 shares issued and outstanding as of January 3, 2016,
and December
|
|
|
|
|
|
|
|
28, 2014, respectively.
|
|
663,600
|
|
|
657,292
|
|
|
Additional paid-in capital
|
|
231,363
|
|
|
225,918
|
|
|
Accumulated deficit
|
|
(144,628
|
)
|
|
(97,517
|
)
|
|
Accumulated other comprehensive income (loss)
|
|
(107,948
|
)
|
|
(76,259
|
)
|
|
Total equity attributable to Masonite
|
|
642,387
|
|
|
709,434
|
|
|
Equity attributable to non-controlling interests
|
|
13,179
|
|
|
26,065
|
|
|
Total equity
|
|
655,566
|
|
|
735,499
|
|
|
Total liabilities and equity
|
|
$
|
|
1,499,149
|
|
|
$
|
|
1,616,146
|
|
|
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
|
|
Year Ended
|
|
|
|
January 3,
|
|
December 28,
|
|
January 3,
|
|
December 28,
|
|
(In thousands)
|
|
2016
|
|
2014
|
|
2016
|
|
2014
|
|
Net income (loss) attributable to Masonite
|
|
$
|
(13,218
|
)
|
|
$
|
(16,367
|
)
|
|
$
|
(47,111
|
)
|
|
$
|
(37,340
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Add: Asset impairment
|
|
—
|
|
|
18,202
|
|
|
9,439
|
|
|
18,202
|
|
|
Add: Loss (gain) on disposal of subsidiaries
|
|
30,263
|
|
|
—
|
|
|
59,984
|
|
|
—
|
|
|
Add: Loss on extinguishment of debt
|
|
—
|
|
|
—
|
|
|
28,046
|
|
|
—
|
|
|
Tax impact of adjustments
|
|
—
|
|
|
(1,100
|
)
|
|
(3,248
|
)
|
|
(1,100
|
)
|
|
Adjusted net income (loss) attributable to Masonite
|
|
$
|
17,045
|
|
|
$
|
735
|
|
|
$
|
47,110
|
|
|
$
|
(20,238
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable to Masonite ("EPS")
|
|
$
|
(0.43
|
)
|
|
$
|
(0.55
|
)
|
|
$
|
(1.56
|
)
|
|
$
|
(1.26
|
)
|
|
Diluted adjusted earnings (loss) per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable to Masonite ("Adjusted EPS")
|
|
$
|
0.54
|
|
|
$
|
0.02
|
|
|
$
|
1.49
|
|
|
$
|
(0.68
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing diluted EPS
|
|
30,402,479
|
|
|
29,915,729
|
|
|
30,266,747
|
|
|
29,588,001
|
|
|
Incremental shares issuable under share compensation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
plans and warrants
|
|
1,171,874
|
|
|
1,181,809
|
|
|
1,304,745
|
|
|
—
|
|
|
Shares used in computing diluted Adjusted EPS
|
|
31,574,353
|
|
|
31,097,538
|
|
|
31,571,492
|
|
|
29,588,001
|
|
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 warrants 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 any periods presented which
result in a net loss, no potential common shares relating to our equity
awards were included in the computation of diluted loss per share, as
their effect would have been anti-dilutive given our net loss position
for those periods.
|
|
Three Months Ended January 3, 2016
|
|
|
|
|
Europe, Asia
|
|
|
|
|
|
|
North
|
|
and Latin
|
|
|
|
|
|
(In thousands)
|
America
|
|
America
|
|
Africa
|
|
Total
|
|
Adjusted EBITDA
|
$
|
|
45,343
|
|
|
$
|
|
11,468
|
|
|
$
|
|
29
|
|
|
$
|
|
56,840
|
|
|
Less (plus):
|
|
|
|
|
|
|
|
|
Depreciation
|
10,776
|
|
|
3,486
|
|
|
628
|
|
|
14,890
|
|
|
Amortization
|
4,437
|
|
|
3,035
|
|
|
9
|
|
|
7,481
|
|
|
Share based compensation expense
|
6,261
|
|
|
—
|
|
|
—
|
|
|
6,261
|
|
|
Loss (gain) on disposal of property, plant and equipment
|
490
|
|
|
293
|
|
|
3
|
|
|
786
|
|
|
Restructuring costs
|
426
|
|
|
87
|
|
|
682
|
|
|
1,195
|
|
|
Loss (gain) on disposal of subsidiaries
|
(310
|
)
|
|
—
|
|
|
30,573
|
|
|
30,263
|
|
|
Interest expense (income), net
|
12,881
|
|
|
(5,709
|
)
|
|
(7
|
)
|
|
7,165
|
|
|
Other expense (income), net
|
1,106
|
|
|
676
|
|
|
—
|
|
|
1,782
|
|
|
Income tax expense (benefit)
|
984
|
|
|
(2,277
|
)
|
|
(302
|
)
|
|
(1,595
|
)
|
|
Loss (income) from discontinued operations, net of tax
|
191
|
|
|
56
|
|
|
—
|
|
|
247
|
|
|
Net income (loss) attributable to non-controlling interest
|
1,583
|
|
|
—
|
|
|
—
|
|
|
1,583
|
|
|
Net income (loss) attributable to Masonite
|
$
|
|
6,518
|
|
|
$
|
|
11,821
|
|
|
$
|
|
(31,557
|
)
|
|
$
|
|
(13,218
|
)
|
|
|
|
Three Months Ended December 28, 2014
|
|
|
|
|
|
Europe, Asia
|
|
|
|
|
|
|
|
North
|
|
and Latin
|
|
|
|
|
|
(In thousands)
|
|
America
|
|
America
|
|
Africa
|
|
Total
|
|
Adjusted EBITDA
|
|
$
|
|
29,052
|
|
|
$
|
|
5,791
|
|
|
$
|
|
2,879
|
|
|
$
|
|
37,722
|
|
|
Less (plus):
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
10,742
|
|
|
3,510
|
|
|
546
|
|
|
14,798
|
|
|
Amortization
|
|
4,021
|
|
|
1,274
|
|
|
254
|
|
|
5,549
|
|
|
Share based compensation expense
|
|
2,270
|
|
|
—
|
|
|
—
|
|
|
2,270
|
|
|
Loss (gain) on disposal of property, plant and equipment
|
|
1,292
|
|
|
8
|
|
|
157
|
|
|
1,457
|
|
|
Restructuring costs
|
|
151
|
|
|
(208
|
)
|
|
—
|
|
|
(57
|
)
|
|
Asset impairment
|
|
—
|
|
|
18,202
|
|
|
—
|
|
|
18,202
|
|
|
Interest expense (income), net
|
|
17,284
|
|
|
(6,844
|
)
|
|
51
|
|
|
10,491
|
|
|
Other expense (income), net
|
|
(508
|
)
|
|
(1,162
|
)
|
|
—
|
|
|
(1,670
|
)
|
|
Income tax expense (benefit)
|
|
1,172
|
|
|
(239
|
)
|
|
198
|
|
|
1,131
|
|
|
Loss (income) from discontinued operations, net of tax
|
|
133
|
|
|
61
|
|
|
—
|
|
|
194
|
|
|
Net income (loss) attributable to non-controlling interest
|
|
1,724
|
|
|
—
|
|
|
—
|
|
|
1,724
|
|
|
Net income (loss) attributable to Masonite
|
|
$
|
|
(9,229
|
)
|
|
$
|
|
(8,811
|
)
|
|
$
|
|
1,673
|
|
|
$
|
|
(16,367
|
)
|
|
|
|
Year Ended January 3, 2016
|
|
|
|
|
|
Europe, Asia
|
|
|
|
|
|
|
|
North
|
|
and Latin
|
|
|
|
|
|
(In thousands)
|
|
America
|
|
America
|
|
Africa
|
|
Total
|
|
Adjusted EBITDA
|
|
$
|
|
165,175
|
|
|
$
|
|
40,029
|
|
|
$
|
|
(1,007
|
)
|
|
$
|
|
204,197
|
|
|
Less (plus):
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
42,818
|
|
|
13,554
|
|
|
2,788
|
|
|
59,160
|
|
|
Amortization
|
|
16,558
|
|
|
7,153
|
|
|
14
|
|
|
23,725
|
|
|
Share based compensation expense
|
|
13,236
|
|
|
—
|
|
|
—
|
|
|
13,236
|
|
|
Loss (gain) on disposal of property, plant and equipment
|
|
1,334
|
|
|
325
|
|
|
(288
|
)
|
|
1,371
|
|
|
Restructuring costs
|
|
2,067
|
|
|
2,501
|
|
|
1,110
|
|
|
5,678
|
|
|
Asset impairment
|
|
—
|
|
|
9,439
|
|
|
—
|
|
|
9,439
|
|
|
Loss (gain) on disposal of subsidiaries
|
|
(310
|
)
|
|
29,721
|
|
|
30,573
|
|
|
59,984
|
|
|
Interest expense (income), net
|
|
57,898
|
|
|
(25,135
|
)
|
|
121
|
|
|
32,884
|
|
|
Loss on extinguishment of debt
|
|
28,046
|
|
|
—
|
|
|
—
|
|
|
28,046
|
|
|
Other expense (income), net
|
|
207
|
|
|
(1,964
|
)
|
|
—
|
|
|
(1,757
|
)
|
|
Income tax expense (benefit)
|
|
17,421
|
|
|
(1,886
|
)
|
|
(1,363
|
)
|
|
14,172
|
|
|
Loss (income) from discontinued operations, net of tax
|
|
700
|
|
|
208
|
|
|
—
|
|
|
908
|
|
|
Net income (loss) attributable to non-controlling interest
|
|
4,462
|
|
|
—
|
|
|
—
|
|
|
4,462
|
|
|
Net income (loss) attributable to Masonite
|
|
$
|
|
(19,262
|
)
|
|
$
|
|
6,113
|
|
|
$
|
|
(33,962
|
)
|
|
$
|
|
(47,111
|
)
|
|
|
|
Year Ended December 28, 2014
|
|
|
|
|
|
Europe, Asia
|
|
|
|
|
|
|
|
North
|
|
and Latin
|
|
|
|
|
|
(In thousands)
|
|
America
|
|
America
|
|
Africa
|
|
Total
|
|
Adjusted EBITDA
|
|
$
|
|
121,069
|
|
|
$
|
|
15,755
|
|
|
$
|
|
263
|
|
|
$
|
|
137,087
|
|
|
Less (plus):
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
39,567
|
|
|
17,543
|
|
|
3,512
|
|
|
60,622
|
|
|
Amortization
|
|
16,968
|
|
|
4,500
|
|
|
254
|
|
|
21,722
|
|
|
Share based compensation expense
|
|
9,605
|
|
|
—
|
|
|
—
|
|
|
9,605
|
|
|
Loss (gain) on disposal of property, plant and equipment
|
|
3,981
|
|
|
(322
|
)
|
|
157
|
|
|
3,816
|
|
|
Restructuring costs
|
|
633
|
|
|
10,497
|
|
|
7
|
|
|
11,137
|
|
|
Asset impairment
|
|
—
|
|
|
18,202
|
|
|
—
|
|
|
18,202
|
|
|
Interest expense (income), net
|
|
69,559
|
|
|
(28,202
|
)
|
|
168
|
|
|
41,525
|
|
|
Other expense (income), net
|
|
(953
|
)
|
|
366
|
|
|
—
|
|
|
(587
|
)
|
|
Income tax expense (benefit)
|
|
6,034
|
|
|
(40
|
)
|
|
(1,461
|
)
|
|
4,533
|
|
|
Loss (income) from discontinued operations, net of tax
|
|
569
|
|
|
61
|
|
|
—
|
|
|
630
|
|
|
Net income (loss) attributable to non-controlling interest
|
|
3,222
|
|
|
—
|
|
|
—
|
|
|
3,222
|
|
|
Net income (loss) attributable to Masonite
|
|
$
|
|
(28,116
|
)
|
|
$
|
|
(6,850
|
)
|
|
$
|
|
(2,374
|
)
|
|
$
|
|
(37,340
|
)
|
Non-GAAP Financial Measures and Related
Information
Adjusted EBITDA is a measure used by management to measure operating
performance. Beginning with the first quarter of 2015, we revised our
calculation of Adjusted EBITDA to separately exclude loss on
extinguishment of debt, which would be a component of other expense
(income), net, but is separately stated due to its magnitude.
Furthermore, beginning with the third quarter of 2015, we revised our
calculation of Adjusted EBITDA to separately exclude loss (gain) on
disposal of subsidiaries. The revisions to this definition had no impact
on our reported Adjusted EBITDA for the three months or year ended
December 28, 2014. As revised, Adjusted EBITDA is defined as net income
(loss) attributable to Masonite plus depreciation, amortization,
restructuring costs, loss (gain) on sale of property, plant and
equipment, asset impairment, loss (gain) on disposal of subsidiaries,
registration and listing fees, interest expense, net, loss on
extinguishment of debt, other expense (income), net, income tax expense
(benefit), loss (income) from discontinued operations, net of tax, net
income attributable to non-controlling interest and share based
compensation expense. Adjusted EBITDA is not a measure of financial
condition or profitability under GAAP, and should not be considered as
an alternative to (i) net income (loss) or net income (loss)
attributable to Masonite determined in accordance with GAAP or (ii)
operating cash flow 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. We believe that the inclusion of Adjusted EBITDA in this
press release is appropriate to provide additional information to
investors about our operating performance. Not all companies use
identical calculations, and as a result, this presentation of Adjusted
EBITDA may not be comparable to other similarly titled measures of other
companies. Moreover, Adjusted EBITDA as presented for financial
reporting purposes herein, although similar, is not the same as similar
terms in the applicable covenants in our ABL Facility or our senior
notes. 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. The tables above sets 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.
Adjusted EPS for the year ended January 3, 2016 and December 28, 2014 is
diluted earnings per common share attributable to Masonite (EPS) less
asset impairment charges, loss (gain) on disposal of subsidiaries and
loss on extinguishment of debt, 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.
1 See appendix for definition and reconciliation of Non-GAAP
Financial Measures.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160224006567/en/
Source: Masonite International Corporation
Masonite International Corporation
Joanne Freiberger, 813-739-1808
Vice
President and Treasurer
investorrelations@masonite.com