Press Release Details

Press Release Details

Masonite International Corporation Reports 2020 Fourth Quarter and Full Year Financial Results; Provides 2021 Outlook

February 24, 2021

TAMPA, Fla.--(BUSINESS WIRE)-- Masonite International Corporation ("Masonite" or "the Company") (NYSE: DOOR) today announced results for the three months and full year ended January 3, 2021.

Executive Summary - 4Q20 versus 4Q19

  • Net sales increased 16% to $619 million versus $531 million.
  • Net income attributable to Masonite increased to $27 million from $2 million. Net income in the prior year includes the impact of $12 million in restructuring charges.
  • Diluted earnings per share increased to $1.08 from $0.06 and diluted adjusted earnings per share* increased to $1.26 from $0.69.
  • Adjusted EBITDA* increased to $81 million from $62 million.

Executive Summary - Full Year 2020 versus 2019

  • Net sales increased 4% to $2.26 billion versus $2.18 billion.
  • Net income attributable to Masonite increased to $69 million from $45 million. Net income for full year 2020 includes pre-tax charges of $52 million related to goodwill impairment and $41 million for the settlement of U.S. class action litigation.
  • Diluted earnings per share increased to $2.77 from $1.75 and diluted adjusted earnings per share* increased to $6.15 from $3.66.
  • Adjusted EBITDA* increased to $364 million from $283 million.
  • Repurchased $44 million of common shares

“We are extremely pleased with our performance in the fourth quarter and our strong finish to what has been an exceptional year," said Howard Heckes, President and CEO. "Strengthening demand in our residential businesses and strong average unit price allowed us to expand Adjusted EBITDA* margin in the quarter and to continue investing for future growth. We believe our focus on employee safety, servicing customers and operational performance helped us achieve these results and will enable even stronger performance in 2021.”

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

Fourth Quarter 2020 Discussion

Net sales increased 16% to $619 million in the fourth quarter of 2020, from $531 million in the comparable period of 2019. The increase in net sales was the result of a 9% increase in average unit price (AUP), a 6% increase in base volume, a 1% increase from the sale of components and other products and a 1% increase due to foreign exchange, partially offset by a 1% decrease from the net impact of a divestiture.

  • North American Residential net sales were $453 million, a 26% increase compared to the fourth quarter of 2019, driven by a 13% increase in base volumes, a 12% increase in AUP and a 1% increase from the sale of components and other products.
  • Europe net sales were $83 million, a 4% increase compared to the fourth quarter of 2019, driven by a 4% increase in base volume, a 3% increase due to foreign exchange and a 2% increase in AUP, partially offset by a 5% decrease in sales volume from the impact of a divestiture.
  • Architectural net sales were $77 million, a 10% decrease compared to the fourth quarter of 2019, driven by a 16% decrease in base volume, partially offset by a 4% increase in AUP and a 2% increase in the sale of components and other products.

Total company gross profit increased 28% to $142 million in the fourth quarter of 2020 compared to $111 million in the fourth quarter of 2019. Gross profit margin increased 200 basis points to 22.9%, due to higher AUP, savings from material sourcing projects and prior year restructuring actions, partially offset by higher inflation and tariffs on raw materials, increased investment in the business, including those related to our North American Investment Plan, and the impact of lower volume in our Architectural business segment.

Selling, general and administration (SG&A) expenses of $95 million increased $18 million, or 23%, compared to the fourth quarter of 2019. The increase in SG&A was primarily driven by higher personnel costs, including incentive compensation, and charges related to the settlement of U.S. class action litigation. SG&A as a percentage of net sales was 15.3%, a 90 basis point increase compared to the fourth quarter of 2019.

Net income attributable to Masonite increased $25 million to $27 million in the fourth quarter of 2020, driven by higher gross profit, partially offset by higher SG&A expenses, as discussed above, and the impact of $12 million in restructuring charges in the prior year. Adjusted EBITDA*, which excludes the litigation settlement charges, increased to $81 million in the fourth quarter of 2020 from $62 million in the fourth quarter of 2019.

Diluted earnings per share were $1.08 in the fourth quarter of 2020 compared to $0.06 in the comparable 2019 period. Diluted adjusted earnings per share* were $1.26 in the fourth quarter of 2020 compared to $0.69 in the comparable 2019 period. Diluted adjusted earnings per share* excludes $4 million in charges related to our previously announced restructuring plans and the settlement of U.S. class action litigation incurred in the fourth quarter of 2020, and the impact of $16 million in charges related to restructuring actions and a pension settlement in the fourth quarter of 2019.

Masonite repurchased 105,628 shares of stock in the fourth quarter for $9 million, at an average price of $84.77.

Full Year 2020 Discussion

Net sales increased 4% to $2,257 million in the year ended January 3, 2021, from $2,177 million in the comparable period of 2019. The increase in net sales was a result of an 8% increase from the combined impact of AUP and the sale of components and other products, partially offset by a 3% decrease in base volume and a 1% decrease from the net impact of divestitures and an acquisition.

  • North American Residential net sales were $1,638 million, a 12% increase from 2019, driven by a 10% increase in AUP and a 2% increase in base volume.
  • Europe net sales were $258 million, a 20% decrease from 2019, driven by a 16% decrease in base volume and a 6% decrease from the net impact of divestitures and an acquisition, partially offset by a 1% increase due to favorable foreign exchange and a 1% increase from higher AUP.
  • Architectural net sales were $341 million, a 7% decrease from 2019, driven by a 12% decrease in base volumes, partially offset by a 5% increase in AUP.

Total company gross profit increased 20% to $573 million in the year ended January 3, 2021, compared to $478 million in the comparable period of 2019. Gross profit margin increased 350 basis points to 25.4%, due to higher AUP, savings from material sourcing projects and prior year restructuring actions, partially offset by the impact of lower volume, higher inflation and tariffs on raw materials, increased investment in the business and higher manufacturing wages and benefits.

Selling, general and administration (SG&A) expenses of $367 million increased $56 million compared to 2019. The increase was due to higher legal expenses and charges related to the settlement of U.S. class action litigation, higher personnel costs, including incentive compensation, partially offset by COVID-19 related cost reductions. Excluding the charges related to the settlements, SG&A as a percentage of net sales was 14.5%, a 20 basis point increase compared to 2019.

Net income attributable to Masonite increased $24 million to $69 million in 2020 primarily due to higher AUP and the absence of charges related to debt extinguishment costs, restructuring and divestiture of non-core businesses, partially offset by higher SG&A expenses, as discussed above, charges related to goodwill impairment in the Architectural segment, and the impact of lower volume. Adjusted EBITDA*, which excludes the litigation settlement charges, increased $80 million to $364 million in 2020.

Diluted earnings per share were $2.77 in the 2020 fiscal year compared to $1.75 in the comparable 2019 period. Diluted adjusted earnings per share* were $6.15 in the 2020 fiscal year compared to $3.66 in the comparable 2019 period. Diluted adjusted earnings per share* excludes $84 million in charges related to goodwill impairment in the Architectural segment, the settlement of U.S. class action litigation and our previously announced restructuring plans incurred in fiscal year 2020, and the impact of $49 million in charges related to restructuring actions, debt extinguishment costs and a pension settlement in fiscal year 2019.

Masonite repurchased 672,899 shares of stock in fiscal year 2020 for $44 million, at an average price of $64.98.

Full Year 2021 Outlook

The Company expects full-year 2021 net sales growth in the range of 7 to 10 percent, primarily driven by increases in AUP, continued recovery in residential end markets and new business wins, offset by continued softness in non-residential end markets. The Company anticipates a negligible impact from foreign exchange on net sales in 2021.

The Company expects 2021 Adjusted EBITDA* to be in the range of $415 million to $445 million and diluted adjusted earnings per share* of $7.40 to $8.30.

"We entered 2021 with significant momentum," Mr. Heckes continued. "With favorable end market conditions and shifting consumer preferences, we believe 2021 will be a pivotal year for Masonite's growth and our commitment of delivering doors that do more."

A quantitative reconciliation of Adjusted EBITDA* and diluted adjusted earnings per share* to the corresponding GAAP information is not provided for the 2021 outlook because it is difficult to predict the GAAP measures that are excluded from Adjusted EBITDA* such as restructuring costs, asset impairments, share based compensation expense and gains/losses on sales of subsidiaries and PP&E.

Masonite Earnings Conference Call

The Company will hold a live conference call and webcast on February 25, 2021. The live audio webcast will begin at 9:00 a.m. EST and can be accessed, together with the presentation, on the Masonite website www.masonite.com. The webcast can be directly accessed at: Q4'20 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 March 11, 2021. To access the replay, please dial 877-660-6853 (in the U.S.) or 201-612-7415 (outside U.S.). Enter Conference ID #13714303.

About Masonite

Masonite International Corporation is a leading global designer, manufacturer and distributor of interior and exterior doors for the new construction and repair, renovation and remodeling sectors of the residential and non-residential building construction markets. Since 1925, Masonite has provided its customers with innovative products and superior service at compelling values. Masonite currently serves more than 7,600 customers in 60 countries. Additional information about Masonite can be found at www.masonite.com.

Forward-looking Statements

This press release contains forward-looking information and other forward-looking statements within the meaning of applicable Canadian and/or U.S. securities laws, including our discussion of our 2021 outlook, the housing and other markets and future demand, the effects of our strategic and restructuring initiatives, impact of the COVID-19 pandemic, and the impact from foreign exchange on net sales. When used in this press release, such forward-looking statements may be identified by the use of such words as “may,” “might,” “could,” “will,” “would,” “should,” “expect,” “believes,” “outlook,” “predict,” “forecast,” “objective,” “remain,” “anticipate,” “estimate,” “potential,” “continue,” “plan,” “project,” “targeting,” or the negative of these terms or other similar terminology.

Forward-looking statements involve significant known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Masonite, or industry results, to be materially different from any future plans, goals, targets, objectives, results, performance or achievements expressed or implied by such forward-looking statements. As a result, such forward-looking statements should not be read as guarantees of future performance or results, should not be unduly relied upon, and will not necessarily be accurate indications of whether or not such results will be achieved. Factors that could cause actual results to differ materially from the results discussed in the forward-looking statements include, but are not limited to, downward trends in our end markets and in economic conditions; reduced levels of residential new construction; residential repair, renovation and remodeling; and non-residential building construction activity due to increases in mortgage rates, changes in mortgage interest deductions and related tax changes and reduced availability of financing; competition; the continued success of, and our ability to maintain relationships with, certain key customers in light of customer concentration and consolidation; our ability to accurately anticipate demand for our products including seasonality; scale and scope of the current coronavirus ("COVID-19") pandemic and its impact on our operations, customer demand and supply chain; increases in prices of raw materials and fuel; tariffs and evolving trade policy and friction between the United States and other countries, including China, and the impact of anti-dumping and countervailing duties; increases in labor costs, the availability of labor, or labor relations (i.e., disruptions, strikes or work stoppages); our ability to manage our operations including potential disruptions, manufacturing realignments (including related restructuring charges) and customer credit risk; product liability claims and product recalls; our ability to generate sufficient cash flows to fund our capital expenditure requirements, to meet our pension obligations, and to meet our debt service obligations, including our obligations under our senior notes and our asset-based revolving credit facility (“ABL Facility”); limitations on operating our business as a result of covenant restrictions under our existing and future indebtedness, including our senior notes and our ABL Facility; fluctuating foreign exchange and interest rates; our ability to replace our expiring patents and to innovate, keep pace with technological developments and successfully integrate acquisitions; the continuous operation of our information technology and enterprise resource planning systems and management of potential cyber security threats and attacks; political, economic and other risks that arise from operating a multinational business; uncertainty relating to the United Kingdom's exit from the European Union; retention of key management personnel; and environmental and other government regulations, including the United States Foreign Corrupt Practices Act (“FCPA”), and any changes in such regulations.

Non-GAAP Financial Measures and Related Information

Our management reviews net sales and Adjusted EBITDA (as defined below) to evaluate segment performance and allocate resources. Net assets are not allocated to the reportable segments. Adjusted EBITDA is a non-GAAP financial measure which does not have a standardized meaning under GAAP and is unlikely to be comparable to similar measures used by other companies. Adjusted EBITDA should not be considered as an alternative to either net income or operating cash flows determined in accordance with GAAP. Additionally, Adjusted EBITDA is not intended to be a measure of free cash flow for management's discretionary use, as it does not include certain cash requirements such as interest payments, tax payments and debt service requirements. Adjusted EBITDA is defined as net income attributable to Masonite adjusted to exclude the following items: depreciation; amortization; share based compensation expense; loss (gain) on disposal of property, plant and equipment; registration and listing fees; restructuring costs; asset impairment; loss (gain) on disposal of subsidiaries; interest expense (income), net; loss on extinguishment of debt; other (income) expense, net; income tax expense (benefit); other items; loss (income) from discontinued operations, net of tax; and net income (loss) attributable to non-controlling interest. The definition of Adjusted EBITDA was updated in the third quarter of 2020 to exclude other items as these charges are not part of our underlying business performance. This change had no impact to Adjusted EBITDA for the three and twelve months ended December 29, 2019. This definition of Adjusted EBITDA differs from the definitions of EBITDA contained in the indentures governing the 2026 and 2028 Notes and the credit agreement governing the ABL Facility. Adjusted EBITDA, as calculated under our ABL Facility or senior notes would also include, among other things, additional add-backs for amounts related to: cost savings projected by us in good faith to be realized as a result of actions taken or expected to be taken prior to or during the relevant period; fees and expenses in connection with certain plant closures and layoffs; and the amount of any restructuring charges, integration costs or other business optimization expenses or reserve deducted in the relevant period in computing consolidated net income, including any one-time costs incurred in connection with acquisitions. Adjusted EBITDA is used to evaluate and compare the performance of the segments and it is one of the primary measures used to determine employee incentive compensation. Intersegment sales are recorded using market prices. We believe that Adjusted EBITDA, from an operations standpoint, provides an appropriate way to measure and assess segment performance. Our management team has established the practice of reviewing the performance of each segment based on the measures of net sales and Adjusted EBITDA. We believe that Adjusted EBITDA is useful to users of the consolidated financial statements because it provides the same information that we use internally to evaluate and compare the performance of the segments and it is one of the primary measures used to determine employee incentive compensation.

The tables below set forth a reconciliation of net income (loss) attributable to Masonite to Adjusted EBITDA for the periods indicated.

Adjusted EBITDA margin is defined as Adjusted EBITDA divided by Net Sales. Management believes this measure provides supplemental information on how successfully we operate our business.

Adjusted EPS is diluted earnings (loss) per common share attributable to Masonite (EPS) less restructuring costs, asset impairment charges, loss (gain) on disposal of subsidiaries, loss on extinguishment of debt and other items, if any, that do not relate to Masonite’s underlying business performance (each net of related tax expense (benefit)). Management uses this measure to evaluate the overall performance of the Company and believes this measure provides investors with helpful supplemental information regarding the underlying performance of the Company from period to period. This measure may be inconsistent with similar measures presented by other companies.

Certain amounts in the Condensed Consolidated Financial Statements and associated tables may not foot due to rounding. All percentages have been calculated using unrounded amounts.

MASONITE INTERNATIONAL CORPORATION

SALES RECONCILIATION AND ADJUSTED EBITDA BY REPORTABLE SEGMENT

(In millions of U.S. dollars)

(Unaudited)

 

 

North

America

Residential

 

Europe

 

Architectural

 

Corporate

and Other

 

Consolidated

 

% Change

Fourth quarter 2019 net sales

$

358.6

 

 

$

80.4

 

 

$

86.0

 

 

$

6.2

 

 

$

531.2

 

 

 

Acquisitions, net of divestitures

 

 

(4.2)

 

 

 

 

 

 

(4.2)

 

 

(0.8)

%

Base volume

46.5

 

 

3.0

 

 

(14.0)

 

 

(1.8)

 

 

33.7

 

 

6.3

%

Average unit price

44.4

 

 

1.8

 

 

3.1

 

 

 

 

49.3

 

 

9.3

%

Other

3.1

 

 

 

 

2.0

 

 

1.1

 

 

6.1

 

 

1.1

%

Foreign exchange

 

 

2.2

 

 

0.2

 

 

 

 

2.4

 

 

0.5

%

Fourth quarter 2020 net sales

$

452.6

 

 

$

83.2

 

 

$

77.3

 

 

$

5.5

 

 

$

618.5

 

 

 

Year over year growth, net sales

26.2

%

 

3.5

%

 

(10.1)

%

 

(11.3)

%

 

16.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth quarter 2019 Adjusted

EBITDA

$

53.9

 

 

$

12.2

 

 

$

6.2

 

 

$

(9.9)

 

 

$

62.3

 

 

 

Fourth quarter 2020 Adjusted

EBITDA

87.5

 

 

16.7

 

 

1.0

 

 

(23.9)

 

 

81.3

 

 

 

Year over year growth,

Adjusted EBITDA

62.2

%

 

37.2

%

 

(83.9)

%

 

nm

 

30.4

%

 

 

 

North

America

Residential

 

Europe

 

Architectural

 

Corporate

and Other

 

Consolidated

 

% Change

Year to date 2019 net sales

$

1,465.8

 

 

$

321.6

 

 

$

365.3

 

 

$

23.9

 

 

$

2,176.7

 

 

 

Acquisitions

 

 

(20.2)

 

 

 

 

 

 

(20.2)

 

 

(0.9)

%

Base volume

35.8

 

 

(49.6)

 

 

(43.0)

 

 

(1.4)

 

 

(58.2)

 

 

(2.7)

%

Average unit price

139.2

 

 

2.8

 

 

18.8

 

 

 

 

160.8

 

 

7.4

%

Other

3.9

 

 

0.2

 

 

0.1

 

 

(2.6)

 

 

1.6

 

 

0.1

%

Foreign exchange

(6.6)

 

 

3.3

 

 

(0.3)

 

 

 

 

(3.6)

 

 

(0.2)

%

Year to date 2020 net sales

$

1,638.1

 

 

$

258.1

 

 

$

340.9

 

 

$

19.9

 

 

$

2,257.1

 

 

 

Year over year growth, net sales

11.8

%

 

(19.7)

%

 

(6.7)

%

 

(16.7)

%

 

3.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year to date 2019 Adjusted

EBITDA

$

232.5

 

 

$

46.2

 

 

$

40.5

 

 

$

(35.8)

 

 

$

283.4

 

 

 

Year to date 2020 Adjusted

EBITDA

347.8

 

 

40.5

 

 

34.2

 

 

(58.8)

 

 

363.7

 

 

 

Year over year growth,

Adjusted EBITDA

49.6

%

 

(12.4)

%

 

(15.5)

%

 

64.1

 

 

28.3

%

 

 

MASONITE INTERNATIONAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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

(Unaudited)

 

 

Three Months Ended

 

Twelve months ended

 

January 3,

2021

 

December 29,

2019

 

January 3,

2021

 

December 29,

2019

Net sales

$

618,537

 

 

$

531,237

 

 

$

2,257,075

 

 

$

2,176,683

 

Cost of goods sold

476,989

 

 

420,192

 

 

1,684,571

 

 

1,699,000

 

Gross profit

141,548

 

 

111,045

 

 

572,504

 

 

477,683

 

Gross profit as a % of net sales

22.9

%

 

20.9

%

 

25.4

%

 

21.9

%

 

 

 

 

 

 

 

 

Selling, general and administration expenses

94,695

 

 

76,752

 

 

366,772

 

 

310,567

 

Selling, general and administration

expenses as a % of net sales

15.3

%

 

14.4

%

 

16.2

%

 

14.3

%

 

 

 

 

 

 

 

 

Restructuring costs

3,252

 

 

2,681

 

 

8,236

 

 

9,776

 

Asset impairment

 

 

 

 

51,515

 

 

13,767

 

Loss on disposal of subsidiaries

 

 

9,655

 

 

2,091

 

 

14,260

 

Operating income

43,601

 

 

21,957

 

 

143,890

 

 

129,313

 

Interest expense, net

11,896

 

 

12,096

 

 

46,807

 

 

46,489

 

Loss on extinguishment of debt

 

 

 

 

 

 

14,523

 

Other (income) expense, net

(1,867)

 

 

4,363

 

 

(5,217)

 

 

1,953

 

Income before income tax expense

33,572

 

 

5,498

 

 

102,300

 

 

66,348

 

Income tax expense

5,089

 

 

2,624

 

 

28,611

 

 

17,309

 

Net income

28,483

 

 

2,874

 

 

73,689

 

 

49,039

 

Less: net income attributable to non

-controlling interests

1,562

 

 

1,272

 

 

4,652

 

 

4,437

 

Net income attributable to Masonite

$

26,921

 

 

$

1,602

 

 

$

69,037

 

 

$

44,602

 

 

 

 

 

 

 

 

 

Basic earnings per common share

attributable to Masonite

$

1.10

 

 

$

0.06

 

 

$

2.81

 

 

$

1.77

 

Diluted earnings per common share

attributable to Masonite

$

1.08

 

 

$

0.06

 

 

$

2.77

 

 

$

1.75

 

 

 

 

 

 

 

 

 

Shares used in computing basic earnings

per share

24,461,181

 

 

24,875,007

 

 

24,569,727

 

 

25,130,027

 

Shares used in computing diluted earnings

per share

24,937,988

 

 

25,255,545

 

 

24,943,178

 

 

25,452,722

 

 

MASONITE INTERNATIONAL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

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

(Unaudited)

 

ASSETS

January 3,

2021

 

December 29,

2019

Current assets:

 

 

 

Cash and cash equivalents

$

364,674

 

 

$

166,964

 

Restricted cash

10,560

 

 

10,644

 

Accounts receivable, net

290,508

 

 

276,208

 

Inventories, net

260,962

 

 

242,230

 

Prepaid expenses and other assets

42,538

 

 

33,190

 

Income taxes receivable

1,124

 

 

4,819

 

Total current assets

970,366

 

 

734,055

 

Property, plant and equipment, net

625,126

 

 

625,585

 

Operating lease right-of-use assets

146,806

 

 

121,367

 

Investment in equity investees

14,636

 

 

16,100

 

Goodwill

138,692

 

 

184,192

 

Intangible assets, net

169,392

 

 

184,532

 

Deferred income taxes

25,331

 

 

25,945

 

Other assets

47,411

 

 

44,808

 

Total assets

$

2,137,760

 

 

$

1,936,584

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

97,211

 

 

$

84,912

 

Accrued expenses

277,716

 

 

180,405

 

Income taxes payable

11,086

 

 

2,350

 

Total current liabilities

386,013

 

 

267,667

 

Long-term debt

792,242

 

 

790,984

 

Long-term operating lease liabilities

136,235

 

 

110,497

 

Deferred income taxes

73,073

 

 

83,465

 

Other liabilities

55,080

 

 

47,109

 

Total liabilities

1,442,643

 

 

1,299,722

 

Commitments and Contingencies

 

 

 

Equity:

 

 

 

Share capital: unlimited shares authorized, no par value, 24,422,934 and

24,869,921 shares issued and outstanding as of January 3, 2021, and

December 29, 2019, respectively

552,969

 

 

558,514

 

Additional paid-in capital

223,666

 

 

216,584

 

Accumulated earnings (deficit)

20,385

 

 

(20,047)

 

Accumulated other comprehensive loss

(112,063)

 

 

(130,169)

 

Total equity attributable to Masonite

684,957

 

 

624,882

 

Equity attributable to non-controlling interests

10,160

 

 

11,980

 

Total equity

695,117

 

 

636,862

 

Total liabilities and equity

$

2,137,760

 

 

$

1,936,584

 

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

 

Twelve Months Ended

(In thousands)

January 3,

2021

 

December 29,

2019

 

January 3,

2021

 

December 29,

2019

Net income attributable to Masonite

$

26,921

 

$

1,602

 

$

69,037

 

$

44,602

 

 

 

 

 

 

 

 

Add: Adjustments to net income attributable to

Masonite:

 

 

 

 

 

 

 

Restructuring costs

3,252

 

2,681

 

8,236

 

9,776

Asset impairment

 

 

51,515

 

13,767

Loss on disposal of subsidiaries

 

9,655

 

2,091

 

14,260

Loss on disposal of property, plant and equipment

related to divestitures

 

 

 

2,450

Loss on extinguishment of debt

 

 

 

14,523

Pension settlement charges

 

5,651

 

 

 

5,651

Other items (1)

2,800

 

 

40,550

 

Income tax impact of adjustments

(1,589)

 

(2,153)

 

(18,029)

 

(11,772)

Adjusted net income attributable to Masonite

$

31,384

 

$

17,436

 

$

153,400

 

$

93,257

 

 

 

 

 

 

 

 

Diluted earnings per common share attributable to

Masonite ("EPS")

$

1.08

 

$

0.06

 

$

2.77

 

$

1.75

Diluted adjusted earnings per common share

attributable to Masonite ("Adjusted EPS")

$

1.26

 

$

0.69

 

$

6.15

 

$

3.66

 

 

 

 

 

 

 

 

Shares used in computing EPS and Adjusted EPS

24,937,988

 

25,255,545

 

24,943,178

 

25,452,722

 

____________

(1) Other items not part of our underlying business performance include $2,800 and $40,550 in legal reserves related to the settlement of U.S. class action litigation in the three and twelve months ended January 3, 2021, respectively, and were recorded in selling, general and administration expenses within the condensed consolidated statements of comprehensive income.

The weighted average number of shares outstanding utilized for the diluted EPS and diluted Adjusted EPS calculation contemplates the exercise of all currently outstanding SARs and the conversion of all RSUs. The dilutive effect of such equity awards is calculated based on the weighted average share price for each fiscal period using the treasury stock method. For all periods presented, common shares issuable for stock instruments which would have had an anti-dilutive impact under the treasury stock method have been excluded from the computation of diluted earnings per share.

 

Three Months Ended January 3, 2021

(In thousands)

North

American

Residential

 

Europe

 

Architectural

 

Corporate &

Other

 

Total

Net income (loss) attributable to Masonite

$

73,905

 

$

10,202

 

$

(5,358)

 

$

(51,828)

 

 

$

26,921

Plus:

 

 

 

 

 

 

 

 

 

Depreciation

8,907

 

2,577

 

2,964

 

3,160

 

 

17,608

Amortization

222

 

3,708

 

1,144

 

449

 

 

5,523

Share based compensation expense

 

 

 

5,914

 

 

5,914

Loss (gain) on disposal of property, plant

and equipment

2,869

 

214

 

375

 

(853)

 

 

2,605

Restructuring costs

818

 

 

1,868

 

566

 

 

3,252

Interest expense, net

 

 

 

11,896

 

 

11,896

Other (income) expense, net

(31)

 

(9)

 

 

(1,827)

 

 

(1,867)

Income tax expense

 

 

 

5,089

 

 

5,089

Other items (1)

 

 

 

2,800

 

 

2,800

Net income attributable to non-controlling

interest

813

 

 

 

749

 

 

1,562

Adjusted EBITDA

$

87,503

 

$

16,692

 

$

993

 

$

(23,885)

 

 

$

81,303

 

____________

(1) Other items not part of our underlying business performance include $2,800 in legal reserves related to the settlement of U.S. class action litigation in the three months ended January 3, 2021, and were recorded in selling, general and administration expenses within the condensed consolidated statements of comprehensive income.

 

Three Months Ended December 29, 2019

(In thousands)

North

American

Residential

 

Europe

 

Architectural

 

Corporate

& Other

 

Total

Net income (loss) attributable to Masonite

$

40,482

 

$

(4,167)

 

$

1,400

 

$

(36,113)

 

 

$

1,602

Plus:

 

 

 

 

 

 

 

 

 

Depreciation

8,531

 

3,952

 

2,531

 

2,877

 

 

17,891

Amortization

434

 

3,538

 

2,056

 

1,105

 

 

7,133

Share based compensation expense

 

 

 

1,555

 

 

1,555

Loss (gain) on disposal of property, plant

and equipment

1,837

 

(565)

 

185

 

(1)

 

 

1,456

Restructuring costs

1,975

 

102

 

(12)

 

616

 

 

2,681

Loss on disposal of subsidiaries

 

9,655

 

 

 

 

9,655

Interest expense, net

 

 

 

12,096

 

 

12,096

Other (income) expense, net

 

(346)

 

(2)

 

4,711

 

 

4,363

Income tax expense

 

 

 

2,624

 

 

2,624

Net income attributable to non-controlling

interest

682

 

 

 

590

 

 

1,272

Adjusted EBITDA

$

53,941

 

$

12,169

 

$

6,158

 

$

(9,940)

 

 

$

62,328

 

Twelve Months Ended January 3, 2021

(In thousands)

North

American

Residential

 

Europe

 

Architectural

 

Corporate &

Other

 

Total

Net income (loss) attributable to Masonite

$

298,446

 

$

16,964

 

$

(40,869)

 

$

(205,504)

 

 

$

69,037

Plus:

 

 

 

 

 

 

 

 

 

Depreciation

35,868

 

9,838

 

11,651

 

10,993

 

 

68,350

Amortization

1,837

 

13,894

 

6,084

 

1,608

 

 

23,423

Share based compensation expense

 

 

 

19,423

 

 

19,423

Loss (gain) on disposal of property, plant

and equipment

4,188

 

(93)

 

2,922

 

(783)

 

 

6,234

Restructuring costs

4,327

 

(37)

 

2,898

 

1,048

 

 

8,236

Asset impairment

 

 

51,515

 

 

 

51,515

Loss on disposal of subsidiaries

 

 

 

2,091

 

 

2,091

Interest expense, net

 

 

 

46,807

 

 

46,807

Other (income) expense, net

(31)

 

(92)

 

 

(5,094)

 

 

(5,217)

Income tax expense

 

 

 

28,611

 

 

28,611

Other items (1)

 

 

 

40,550

 

 

40,550

Net income attributable to non-controlling

interest

3,187

 

 

 

1,465

 

 

4,652

Adjusted EBITDA

$

347,822

 

$

40,474

 

$

34,201

 

$

(58,785)

 

 

$

363,712

____________

(1) Other items not part of our underlying business performance include $40,550 in legal reserves related to the settlement of U.S. class action litigation in the twelve months ended January 3, 2021, and were recorded in selling, general and administration expenses within the condensed consolidated statements of comprehensive income.

 

Twelve Months Ended December 29, 2019

(In thousands)

North

American

Residential

 

Europe

 

Architectural

 

Corporate &

Other

 

Total

Net income (loss) attributable to Masonite

$

167,097

 

$

2,664

 

$

19,928

 

$

(145,087)

 

 

$

44,602

Plus:

 

 

 

 

 

 

 

 

 

Depreciation

35,992

 

11,604

 

11,343

 

11,797

 

 

70,736

Amortization

1,697

 

14,653

 

8,362

 

4,401

 

 

29,113

Share based compensation expense

 

 

 

10,023

 

 

10,023

Loss on disposal of property, plant and

equipment

3,934

 

2,109

 

331

 

22

 

 

6,396

Restructuring costs

6,929

 

1,322

 

506

 

1,019

 

 

9,776

Asset impairment

13,767

 

 

 

 

 

13,767

Loss on disposal of subsidiaries

 

14,260

 

 

 

 

14,260

Interest expense, net

 

 

 

46,489

 

 

46,489

Loss on extinguishment of debt

 

 

 

14,523

 

 

14,523

Other (income) expense, net

 

(393)

 

 

2,346

 

 

1,953

Income tax expense

 

 

 

17,309

 

 

17,309

Net income attributable to non-controlling

interest

3,096

 

 

 

1,341

 

 

4,437

Adjusted EBITDA

$

232,512

 

$

46,219

 

$

40,470

 

$

(35,817)

 

 

$

283,384

 

joanne freiberger, CPA, CTP, IRC
VP, TREASURER
jfreiberger@masonite.com
813.739.1808

farand pawlak, CPA
DIRECTOR, INVESTOR RELATIONS
fpawlak@masonite.com
813.371.5839

Source: Masonite International Corporation