TAMPA, Fla.--(BUSINESS WIRE)--
Masonite International Corporation ("Masonite" or "the Company") (NYSE:
DOOR) today announced results for the three and six months ended July 3,
2016.
Executive Summary
-
Net sales increased $37.6 million, or 8% compared to the second
quarter of 2015, to $514.0 million. Excluding foreign exchange, net
sales would have increased 10%.
-
Net income attributable to Masonite increased $20.0 million to $33.4
million in the second quarter of 2016, including a discrete $6.2
million tax benefit.
-
Adjusted EBITDA1 increased $9.4 million, or 16%, to $68.5
million. Adjusted EBITDA margin increased to 13.3% in the second
quarter of 2016.
-
Diluted earnings per share of $1.06 compares to $0.42 in the second
quarter of 2015.
-
Adjusted earnings per diluted share1 of $1.02 compares to
$0.42 in the second quarter of 2015.
-
In the second quarter of 2016, Masonite repurchased 455,358 shares of
stock at an average price of $67.14, or $31 million.
“We are pleased with the solid growth we experienced in the second
quarter, particularly in North America. Our business in the UK also
continued to deliver solid results and, despite the near-term
uncertainly presented by the recent Brexit vote, we remain confident in
the long-term prospects for the UK housing market, as well as that of
both the residential and architectural markets in North America,” said
Fred Lynch, President and CEO. “We will continue to focus on strategic
initiatives and purposeful investments to grow the business over the
long term.”
Second Quarter 2016 Discussion
Net sales increased 8% to $514.0 million in the second quarter of 2016,
from $476.4 million in the comparable period of 2015. Excluding the
unfavorable impact of foreign exchange, net sales would have increased
by 10% to $522.0 million. The increase was primarily due to a $30.1
million increase in volumes and $14.0 million of improvements in average
unit price, partially offset by $8.0 million of negative foreign
exchange.
-
North American Residential net sales were $348.2 million, a 14%
increase over the second quarter of 2015, driven primarily by $42.5
million of increased volume and a $6.2 million improvement in average
unit price, partially offset by $5.1 million of foreign exchange.
-
Europe net sales were $82.2 million, a 7% increase over the second
quarter of 2015 driven primarily by a $6.1 million improvement in
average unit price and $1.1 million of increased volume, partially
offset by $2.4 million of foreign exchange.
-
Architectural net sales were $77.6 million, a 2% increase over the
second quarter of 2015 driven primarily by a $1.7 million improvement
in average unit price, partially offset by $0.4 million of foreign
exchange headwinds.
Total company gross profit increased 17% to $111.1 million in the second
quarter of 2016, from $95.0 million in the second quarter of 2015. Gross
profit margin increased 170 basis points to 21.6%, primarily due to
increases in average unit price, lower commodities costs and the
favorable impact of volume leverage on our fixed costs.
Selling, general and administrative expenses (SG&A) increased 17% to
$69.0 million in the second quarter of 2016 and SG&A as a percentage of
net sales increased 110 basis points to 13.4%. The increase in SG&A
expenses was driven by increased personnel costs, which includes shared
based compensation, as well as investments in advertising, marketing,
and branding, and professional fees primarily related to IT and digital
initiatives.
Net income attributable to Masonite increased $20.0 million to $33.4
million in the second quarter of 2016, from $13.4 million in the
comparable 2015 period. Included in net income is a $6.2 million income
tax benefit as a result of adopting new accounting standards related to
share based compensation.
Adjusted EBITDA increased 16% to $68.5 million for the second quarter of
2016, from $59.1 million in the comparable 2015 period. Adjusted EBITDA
margin increased to 13.3% in the second quarter of 2016.
Diluted earnings per share were $1.06 in the second quarter of 2016
compared to $0.42 in the comparable 2015 period. Adjusted earnings per
share were $1.02 in the second quarter of 2016 compared to $0.42 in the
comparable 2015 period.
Year to date 2016
Net sales increased 10% to $1,003.3 million in the first six months of
2016, from $910.9 million in the comparable period of 2015. Excluding
the unfavorable impact of foreign exchange, net sales would have
increased by 12% to $1,024.2 million. The increase was primarily due to
a $74.6 million increase in volumes and $34.2 million of improvements in
average unit prices, partially offset by $20.9 million of negative
foreign exchange.
-
North American Residential net sales were $676.9 million, a 17%
increase over the first six months of 2015, driven primarily by $92.6
million of increased volumes and a $20.0 million improvement in
average unit price, partially offset by $14.4 million of foreign
exchange.
-
Europe net sales were $162.8 million, a 7% increase over the first six
months of 2015 driven primarily by a $12.9 million improvement in
average unit price and $1.5 million of increased sales of component
products, partially offset by $5.0 million of foreign exchange.
-
Architectural net sales were $151.2 million, a 6% increase over the
first six months of 2015 driven primarily by $6.3 million of increased
volume, $2.0 million of increased sales of component products, and
$1.3 million of higher average unit price partially offset by $1.3
million of negative foreign exchange.
Total company gross profit increased 24% to $209.3 million in the first
six months of 2016, from $168.3 million in the first six months of 2015.
Gross profit margin increased 240 basis points to 20.9%, primarily due
to increases in average unit price and the favorable impact of volume on
our fixed costs.
Selling, general and administrative expenses (SG&A) increased 14% to
$133.9 million in the first six months of 2016 and SG&A as a percentage
of net sales increased 50 basis points to 13.3%. The increase in SG&A
expenses was driven primarily by new personnel, professional fees and
share based compensation expense.
Net income attributable to Masonite increased $68.8 million to $51.2
million in the first six months of 2016, from ($17.6) million in the
comparable 2015 period. Included in net income is the previously
mentioned $6.2 million income tax benefit in the second quarter as a
result of adopting new accounting standards related to share based
compensation transactions.
Adjusted EBITDA increased 31% to $126.8 million for the first six months
of 2016, from $96.8 million in the comparable 2015 period. Adjusted
EBITDA margin increased to 12.6% in the first six months of 2016.
Diluted earnings per share were $1.64 in the first six months of 2016
compared to $(0.58) in the comparable 2015 period. Adjusted earnings per
share were $1.59 in the first six months of 2016 compared to $0.33 in
the comparable 2015 period, which exclude charges related to the March
2015 debt refinancing.
Masonite Earnings Conference Call
The Company will hold a live conference call and webcast on August 11,
2016. The live audio webcast will begin at 9:00 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: Q2'16
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 August 25, 2016. To access the replay,
please dial 877-660-6853 (in the U.S.) or 201-612-7415 (outside U.S.).
Enter Conference ID #13641059.
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 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; the
United Kingdom referendum to exit the European Union; 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.
Non-GAAP Financial Measure 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. Beginning with the third quarter
of 2015, we revised our calculation of Adjusted EBITDA to separately
exclude loss (gain) on disposal of subsidiaries. The revision to this
definition had no impact on our reported Adjusted EBITDA for the three
or six months ended June 28, 2015. Adjusted EBITDA (as revised) 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 indenture governing the
2023 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.
The tables below 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 three and six months ended July 3, 2016 and June
28, 2015 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.
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
|
Second quarter 2015 net sales
|
|
$
|
304.9
|
|
|
$
|
77.1
|
|
|
$
|
76.0
|
|
|
$
|
18.5
|
|
|
$
|
476.4
|
|
|
|
Volume*
|
|
42.5
|
|
|
1.1
|
|
|
(0.1
|
)
|
|
(13.4
|
)
|
|
30.1
|
|
|
6.3
|
%
|
Average unit price
|
|
6.2
|
|
|
6.1
|
|
|
1.7
|
|
|
—
|
|
|
14.0
|
|
|
2.9
|
%
|
Components and other
|
|
(0.3
|
)
|
|
0.3
|
|
|
0.4
|
|
|
1.0
|
|
|
1.5
|
|
|
0.3
|
%
|
Foreign exchange
|
|
$
|
(5.1
|
)
|
|
$
|
(2.4
|
)
|
|
$
|
(0.4
|
)
|
|
$
|
(0.1
|
)
|
|
$
|
(8.0
|
)
|
|
(1.7
|
)%
|
Second quarter 2016 net sales
|
|
$
|
348.2
|
|
|
$
|
82.2
|
|
|
$
|
77.6
|
|
|
$
|
6.0
|
|
|
$
|
514.0
|
|
|
|
Year over year growth, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
sales
|
|
14.2
|
%
|
|
6.6
|
%
|
|
2.1
|
%
|
|
(67.6
|
)%
|
|
7.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second quarter 2015 Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
|
46.7
|
|
|
$
|
8.1
|
|
|
$
|
8.2
|
|
|
$
|
(3.9
|
)
|
|
$
|
59.1
|
|
|
|
Second quarter 2016 Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
55.7
|
|
|
12.8
|
|
|
7.7
|
|
|
(7.7
|
)
|
|
68.5
|
|
|
|
Year over year growth,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
19.3
|
%
|
|
58.0
|
%
|
|
(6.1
|
)%
|
|
nm
|
|
15.9
|
%
|
|
|
(*) Includes the incremental impact of acquisitions and dispositions.
|
|
North
|
|
|
|
|
|
|
|
|
|
|
|
|
American
|
|
|
|
|
|
Corporate
|
|
|
|
|
|
|
Residential
|
|
Europe
|
|
Architectural
|
|
& Other
|
|
Total
|
|
% Change
|
Year to date 2015 net sales
|
|
$
|
578.2
|
|
|
$
|
152.1
|
|
|
$
|
142.9
|
|
|
$
|
37.7
|
|
|
$
|
910.9
|
|
|
|
Volume*
|
|
92.6
|
|
|
1.3
|
|
|
6.3
|
|
|
(25.6
|
)
|
|
74.6
|
|
|
8.2
|
%
|
Average unit price
|
|
20.0
|
|
|
12.9
|
|
|
1.3
|
|
|
—
|
|
|
34.2
|
|
|
3.8
|
%
|
Components and other
|
|
0.5
|
|
|
1.5
|
|
|
2.0
|
|
|
0.5
|
|
|
4.5
|
|
|
0.5
|
%
|
Foreign exchange
|
|
$
|
(14.4
|
)
|
|
$
|
(5.0
|
)
|
|
$
|
(1.3
|
)
|
|
$
|
(0.2
|
)
|
|
$
|
(20.9
|
)
|
|
(2.3
|
)%
|
Year to date 2016 net sales
|
|
$
|
676.9
|
|
|
$
|
162.8
|
|
|
$
|
151.2
|
|
|
$
|
12.4
|
|
|
$
|
1,003.3
|
|
|
|
Year over year growth, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
sales
|
|
17.1
|
%
|
|
7.0
|
%
|
|
5.8
|
%
|
|
(67.1
|
)%
|
|
10.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year to date 2015 Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
|
76.1
|
|
|
$
|
14.6
|
|
|
$
|
12.2
|
|
|
$
|
(6.1
|
)
|
|
$
|
96.8
|
|
|
|
Year to date 2016 Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
107.0
|
|
|
23.0
|
|
|
12.1
|
|
|
(15.3
|
)
|
|
126.8
|
|
|
|
Year over year growth,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
40.6
|
%
|
|
57.5
|
%
|
|
(0.8
|
)%
|
|
nm
|
|
31.0
|
%
|
|
|
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 3,
|
|
June 28,
|
|
July 3,
|
|
June 28,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net sales
|
|
$
|
513,985
|
|
|
$
|
476,428
|
|
|
$
|
1,003,290
|
|
|
$
|
910,893
|
|
Cost of goods sold
|
|
402,881
|
|
|
381,394
|
|
|
793,941
|
|
|
742,550
|
|
Gross profit
|
|
111,104
|
|
|
95,034
|
|
|
209,349
|
|
|
168,343
|
|
Gross profit as a % of net sales
|
|
21.6
|
%
|
|
19.9
|
%
|
|
20.9
|
%
|
|
18.5
|
%
|
|
|
|
|
|
|
|
|
|
Selling, general and administration expenses
|
|
68,961
|
|
|
58,818
|
|
|
133,859
|
|
|
116,979
|
|
Selling, general and administration expenses as a
|
|
|
|
|
|
|
|
|
|
|
|
|
% of net sales
|
|
13.4
|
%
|
|
12.3
|
%
|
|
13.3
|
%
|
|
12.8
|
%
|
|
|
|
|
|
|
|
|
|
Restructuring costs
|
|
(103
|
)
|
|
988
|
|
|
(84
|
)
|
|
3,344
|
|
Loss (gain) on disposal of subsidiaries
|
|
(1,431
|
)
|
|
—
|
|
|
(1,431
|
)
|
|
—
|
|
Operating income (loss)
|
|
43,677
|
|
|
35,228
|
|
|
77,005
|
|
|
48,020
|
|
Interest expense (income), net
|
|
6,933
|
|
|
6,787
|
|
|
14,165
|
|
|
18,540
|
|
Loss on extinguishment of debt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28,046
|
|
Other expense (income), net
|
|
(801
|
)
|
|
(635
|
)
|
|
(15
|
)
|
|
(1,819
|
)
|
Income (loss) from continuing operations before
|
|
|
|
|
|
|
|
|
|
|
|
|
income tax expense (benefit)
|
|
37,545
|
|
|
29,076
|
|
|
62,855
|
|
|
3,253
|
|
Income tax expense (benefit)
|
|
2,855
|
|
|
15,013
|
|
|
9,065
|
|
|
18,277
|
|
Income (loss) from continuing operations
|
|
34,690
|
|
|
14,063
|
|
|
53,790
|
|
|
(15,024
|
)
|
Income (loss) from discontinued operations, net of tax
|
|
(184
|
)
|
|
(240
|
)
|
|
(372
|
)
|
|
(469
|
)
|
Net income (loss)
|
|
34,506
|
|
|
13,823
|
|
|
53,418
|
|
|
(15,493
|
)
|
Less: net income (loss) attributable to non-controlling
|
|
|
|
|
|
|
|
|
|
|
|
|
interest
|
|
1,151
|
|
|
381
|
|
|
2,235
|
|
|
2,117
|
|
Net income (loss) attributable to Masonite
|
|
$
|
33,355
|
|
|
$
|
13,442
|
|
|
$
|
51,183
|
|
|
$
|
(17,610
|
)
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per common share attributable to Masonite:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.09
|
|
|
$
|
0.44
|
|
|
$
|
1.68
|
|
|
$
|
(0.58
|
)
|
Diluted
|
|
$
|
1.06
|
|
|
$
|
0.42
|
|
|
$
|
1.64
|
|
|
$
|
(0.58
|
)
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per common share from continuing
|
|
|
|
|
|
|
|
|
operations attributable to Masonite:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.10
|
|
|
$
|
0.45
|
|
|
$
|
1.69
|
|
|
$
|
(0.57
|
)
|
Diluted
|
|
$
|
1.07
|
|
|
$
|
0.43
|
|
|
$
|
1.65
|
|
|
$
|
(0.57
|
)
|
|
|
|
|
|
|
|
|
|
Shares used in computing basic earnings per share
|
|
30,577,589
|
|
|
30,244,869
|
|
|
30,536,282
|
|
|
30,151,182
|
|
Shares used in computing diluted earnings per share
|
|
31,331,664
|
|
|
31,693,824
|
|
|
31,273,762
|
|
|
30,151,182
|
|
MASONITE INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars, except share amounts)
(Unaudited)
|
|
|
|
|
|
|
|
July 3,
|
|
January 3,
|
ASSETS
|
|
2016
|
|
2016
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
62,370
|
|
|
$
|
89,187
|
|
Restricted cash
|
|
12,196
|
|
|
12,645
|
|
Accounts receivable, net
|
|
273,144
|
|
|
224,976
|
|
Inventories, net
|
|
233,937
|
|
|
208,393
|
|
Prepaid expenses
|
|
23,553
|
|
|
21,983
|
|
Income taxes receivable
|
|
2,797
|
|
|
1,762
|
|
Total current assets
|
|
607,997
|
|
|
558,946
|
|
Property, plant and equipment, net
|
|
534,436
|
|
|
534,234
|
|
Investment in equity investees
|
|
19,663
|
|
|
18,811
|
|
Goodwill
|
|
124,596
|
|
|
128,170
|
|
Intangible assets, net
|
|
207,260
|
|
|
225,932
|
|
Long-term deferred income taxes
|
|
11,047
|
|
|
16,899
|
|
Other assets, net
|
|
17,522
|
|
|
16,157
|
|
Total assets
|
|
$
|
1,522,521
|
|
|
$
|
1,499,149
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
|
$
|
113,581
|
|
|
$
|
96,480
|
|
Accrued expenses
|
|
130,973
|
|
|
136,029
|
|
Income taxes payable
|
|
1,460
|
|
|
9
|
|
Total current liabilities
|
|
246,014
|
|
|
232,518
|
|
Long-term debt
|
|
470,984
|
|
|
468,856
|
|
Long-term deferred income taxes
|
|
62,018
|
|
|
98,682
|
|
Other liabilities
|
|
41,521
|
|
|
43,527
|
|
Total liabilities
|
|
820,537
|
|
|
843,583
|
|
Commitments and Contingencies
|
|
|
|
|
Equity:
|
|
|
|
|
Share capital: unlimited shares authorized, no par value, 31,110,327
and
|
|
|
|
|
|
|
30,427,865 shares issued and 30,687,350 and 30,427,865 outstanding
as of
|
|
|
|
|
|
|
July 3, 2016, and January 3, 2016, respectively
|
|
678,411
|
|
|
663,600
|
|
Additional paid-in capital
|
|
225,544
|
|
|
231,363
|
|
Accumulated deficit
|
|
(70,816
|
)
|
|
(144,628
|
)
|
Accumulated other comprehensive income (loss)
|
|
(118,430
|
)
|
|
(107,948
|
)
|
Common shares held in treasury: 422,977 shares as of July 3, 2016
|
|
(28,489
|
)
|
|
—
|
|
Total equity attributable to Masonite
|
|
686,220
|
|
|
642,387
|
|
Equity attributable to non-controlling interests
|
|
15,764
|
|
|
13,179
|
|
Total equity
|
|
701,984
|
|
|
655,566
|
|
Total liabilities and equity
|
|
$
|
1,522,521
|
|
|
$
|
1,499,149
|
|
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
|
|
|
July 3,
|
|
June 28,
|
|
July 3,
|
|
June 28,
|
(In thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net income (loss) attributable to Masonite
|
|
$
|
33,355
|
|
|
$
|
13,442
|
|
|
$
|
51,183
|
|
|
$
|
(17,610
|
)
|
|
|
|
|
|
|
|
|
|
Add: Loss (gain) on disposal of subsidiaries
|
|
(1,431
|
)
|
|
—
|
|
|
(1,431
|
)
|
|
—
|
|
Add: Loss on extinguishment of debt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28,046
|
|
Tax impact of adjustments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Adjusted net income (loss) attributable to Masonite
|
|
$
|
31,924
|
|
|
$
|
13,442
|
|
|
$
|
49,752
|
|
|
$
|
10,436
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per common share attributable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to Masonite ("EPS")
|
|
$
|
1.06
|
|
|
$
|
0.42
|
|
|
$
|
1.64
|
|
|
$
|
(0.58
|
)
|
Diluted adjusted earnings (loss) per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable to Masonite ("Adjusted EPS")
|
|
$
|
1.02
|
|
|
$
|
0.42
|
|
|
$
|
1.59
|
|
|
$
|
0.33
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing diluted EPS
|
|
31,331,664
|
|
|
31,693,824
|
|
|
31,273,762
|
|
|
30,151,182
|
|
Incremental shares issuable under share compensation
|
|
|
|
|
|
|
|
|
|
|
|
|
plans and warrants
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,422,865
|
|
Shares used in computing diluted Adjusted EPS
|
|
31,331,664
|
|
|
31,693,824
|
|
|
31,273,762
|
|
|
31,574,047
|
|
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.
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 July 3, 2016
|
|
|
North
|
|
|
|
|
|
|
|
|
|
|
American
|
|
|
|
|
|
Corporate
|
|
|
(In thousands)
|
|
Residential
|
|
Europe
|
|
Architectural
|
|
& Other
|
|
Total
|
Adjusted EBITDA
|
|
$
|
55,666
|
|
|
$
|
12,839
|
|
|
$
|
7,672
|
|
|
$
|
(7,661
|
)
|
|
$
|
68,516
|
|
Less (plus):
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
8,126
|
|
|
2,480
|
|
|
2,076
|
|
|
2,131
|
|
|
14,813
|
|
Amortization
|
|
1,225
|
|
|
2,393
|
|
|
2,064
|
|
|
836
|
|
|
6,518
|
|
Share based compensation expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,782
|
|
|
4,782
|
|
Loss (gain) on disposal of property, plant
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and equipment
|
|
199
|
|
|
—
|
|
|
61
|
|
|
—
|
|
|
260
|
|
Restructuring costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(103
|
)
|
|
(103
|
)
|
Loss (gain) on disposal of subsidiaries
|
|
—
|
|
|
(1,431
|
)
|
|
—
|
|
|
—
|
|
|
(1,431
|
)
|
Interest expense (income), net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,933
|
|
|
6,933
|
|
Other expense (income), net
|
|
—
|
|
|
22
|
|
|
—
|
|
|
(823
|
)
|
|
(801
|
)
|
Income tax expense (benefit)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,855
|
|
|
2,855
|
|
Loss (income) from discontinued operations,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
184
|
|
|
184
|
|
Net income (loss) attributable to non-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
controlling interest
|
|
858
|
|
|
—
|
|
|
—
|
|
|
293
|
|
|
1,151
|
|
Net income (loss) attributable to Masonite
|
|
$
|
45,258
|
|
|
$
|
9,375
|
|
|
$
|
3,471
|
|
|
$
|
(24,749
|
)
|
|
$
|
33,355
|
|
|
|
Three Months Ended June 28, 2015
|
|
|
North
|
|
|
|
|
|
|
|
|
|
|
American
|
|
|
|
|
|
Corporate
|
|
|
(In thousands)
|
|
Residential
|
|
Europe
|
|
Architectural
|
|
& Other
|
|
Total
|
Adjusted EBITDA
|
|
$
|
46,713
|
|
|
$
|
8,053
|
|
|
$
|
8,185
|
|
|
$
|
(3,894
|
)
|
|
$
|
59,057
|
|
Less (plus):
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
7,925
|
|
|
1,882
|
|
|
2,020
|
|
|
2,583
|
|
|
14,410
|
|
Amortization
|
|
1,091
|
|
|
924
|
|
|
2,074
|
|
|
886
|
|
|
4,975
|
|
Share based compensation expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,106
|
|
|
3,106
|
|
Loss (gain) on disposal of property, plant
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and equipment
|
|
317
|
|
|
5
|
|
|
9
|
|
|
19
|
|
|
350
|
|
Restructuring costs
|
|
3
|
|
|
467
|
|
|
—
|
|
|
518
|
|
|
988
|
|
Interest expense (income), net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,787
|
|
|
6,787
|
|
Other expense (income), net
|
|
—
|
|
|
45
|
|
|
—
|
|
|
(680
|
)
|
|
(635
|
)
|
Income tax expense (benefit)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,013
|
|
|
15,013
|
|
Loss (income) from discontinued operations,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
240
|
|
|
240
|
|
Net income (loss) attributable to non-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
controlling interest
|
|
823
|
|
|
—
|
|
|
—
|
|
|
(442
|
)
|
|
381
|
|
Net income (loss) attributable to Masonite
|
|
$
|
36,554
|
|
|
$
|
4,730
|
|
|
$
|
4,082
|
|
|
$
|
(31,924
|
)
|
|
$
|
13,442
|
|
|
|
Six Months Ended July 3, 2016
|
|
|
North
|
|
|
|
|
|
|
|
|
|
|
American
|
|
|
|
|
|
Corporate
|
|
|
(In thousands)
|
|
Residential
|
|
Europe
|
|
Architectural
|
|
& Other
|
|
Total
|
Adjusted EBITDA
|
|
$
|
107,041
|
|
|
$
|
22,957
|
|
|
$
|
12,103
|
|
|
$
|
(15,344
|
)
|
|
$
|
126,757
|
|
Less (plus):
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
16,046
|
|
|
4,556
|
|
|
4,583
|
|
|
4,198
|
|
|
29,383
|
|
Amortization
|
|
2,383
|
|
|
4,789
|
|
|
4,211
|
|
|
1,599
|
|
|
12,982
|
|
Share based compensation expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,510
|
|
|
8,510
|
|
Loss (gain) on disposal of property,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
plant and equipment
|
|
290
|
|
|
31
|
|
|
102
|
|
|
(31
|
)
|
|
392
|
|
Restructuring costs
|
|
—
|
|
|
21
|
|
|
—
|
|
|
(105
|
)
|
|
(84
|
)
|
Loss (gain) on disposal of subsidiaries
|
|
—
|
|
|
(1,431
|
)
|
|
—
|
|
|
—
|
|
|
(1,431
|
)
|
Interest expense (income), net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,165
|
|
|
14,165
|
|
Other expense (income), net
|
|
—
|
|
|
93
|
|
|
—
|
|
|
(108
|
)
|
|
(15
|
)
|
Income tax expense (benefit)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,065
|
|
|
9,065
|
|
Loss (income) from discontinued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
operations, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
372
|
|
|
372
|
|
Net income (loss) attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
non-controlling interest
|
|
1,696
|
|
|
—
|
|
|
—
|
|
|
539
|
|
|
2,235
|
|
Net income (loss) attributable to Masonite
|
|
$
|
86,626
|
|
|
$
|
14,898
|
|
|
$
|
3,207
|
|
|
$
|
(53,548
|
)
|
|
$
|
51,183
|
|
|
|
Six Months Ended June 28, 2015
|
|
|
North
|
|
|
|
|
|
|
|
|
|
|
American
|
|
|
|
|
|
Corporate
|
|
|
(In thousands)
|
|
Residential
|
|
Europe
|
|
Architectural
|
|
& Other
|
|
Total
|
Adjusted EBITDA
|
|
$
|
76,060
|
|
|
$
|
14,622
|
|
|
$
|
12,215
|
|
|
$
|
(6,052
|
)
|
|
$
|
96,845
|
|
Less (plus):
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
15,877
|
|
|
3,841
|
|
|
3,997
|
|
|
6,001
|
|
|
29,716
|
|
Amortization
|
|
2,398
|
|
|
1,846
|
|
|
4,102
|
|
|
1,640
|
|
|
9,986
|
|
Share based compensation expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,485
|
|
|
5,485
|
|
Loss (gain) on disposal of property,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
plant and equipment
|
|
530
|
|
|
19
|
|
|
53
|
|
|
(308
|
)
|
|
294
|
|
Restructuring costs
|
|
6
|
|
|
2,195
|
|
|
—
|
|
|
1,143
|
|
|
3,344
|
|
Interest expense (income), net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,540
|
|
|
18,540
|
|
Loss on extinguishment of debt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28,046
|
|
|
28,046
|
|
Other expense (income), net
|
|
—
|
|
|
128
|
|
|
—
|
|
|
(1,947
|
)
|
|
(1,819
|
)
|
Income tax expense (benefit)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,277
|
|
|
18,277
|
|
Loss (income) from discontinued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
operations, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
469
|
|
|
469
|
|
Net income (loss) attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
non-controlling interest
|
|
1,761
|
|
|
—
|
|
|
—
|
|
|
356
|
|
|
2,117
|
|
Net income (loss) attributable to Masonite
|
|
$
|
55,488
|
|
|
$
|
6,593
|
|
|
$
|
4,063
|
|
|
$
|
(83,754
|
)
|
|
$
|
(17,610
|
)
|
1 See "Non-GAAP Financial Measure and Related Information"
for definition and reconciliation non-GAAP measures.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160810006085/en/
Source: Masonite International Corporation
Masonite International Corporation
Joanne Freiberger, 813-739-1808
Vice
President and Treasurer
[email protected]