Masonite International Corporation Reports Second Quarter Sales and Earnings Growth and Reiterates Confidence in Full Year 2022 Outlook

  • Net Sales up 15% year over year driven by steady demand and strong operational performance in the North American Residential segment
  • Net income attributable to Masonite up 67% year over year and Adjusted EBITDA* up 7% year over year
  • Completed the previously announced accelerated share repurchase agreement, which retired a total of approximately 1.2 million common shares

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, 2022.

($ in millions, except per share amounts)

2Q22

 

2Q21

 

% Change

 

YTD 2022

 

YTD 2021

 

% Change

Net Sales

$762

 

$662

 

+15.0%

 

$1,488

 

$1,309

 

+13.7%

Net income attributable to Masonite

$59

 

$35

 

+67.0%

 

$126

 

$82

 

+53.7%

Diluted earnings per share

$2.58

 

$1.41

 

+83.0%

 

$5.47

 

$3.30

 

+65.8%

Adjusted EPS*

$2.58

 

$2.23

 

+15.7%

 

$5.47

 

$4.16

 

+31.5%

Adjusted EBITDA*

$118

 

$111

 

+6.8%

 

$243

 

$213

 

+14.2%

Adjusted EBITDA* Margin

15.5%

 

16.7%

 

(120 bps)

 

+16.3%

 

16.2%

 

+10 bps

“Masonite delivered another solid quarter of year-over-year net sales and Adjusted EBITDA* growth driven by steady demand and strong execution in our North American Residential segment,” said Howard Heckes, President and CEO. “We have started shipments from two new door production facilities, in line with our strategy to deliver consistent and reliable supply. We also introduced new products and marketing initiatives aimed at supporting further growth and favorable mix. We believe that these initiatives, combined with thoughtful price-cost management, will allow us to effectively navigate near-term macro-economic headwinds and make continued progress toward our 2025 Centennial Plan^.”

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

^ The Company’s 2025 Centennial Plan is a forward-looking statement and subject to risks and uncertainties. See “Forward-looking Statements”

Second Quarter 2022 Discussion

Consolidated net sales were $762 million in the second quarter of 2022, a 15% increase from $662 million in the second quarter of 2021. The increase resulted from a 19% increase in average unit price (AUP), partially offset by a 2% decrease from unfavorable foreign exchange, a 1% decrease in volume, and a 1% decrease due to a prior year divestiture.

  • North American Residential net sales were $608 million, a 23% increase compared to the second quarter of 2021, driven by a 21% increase in AUP and a 3% increase in volume, partially offset by a 1% decrease due to unfavorable foreign exchange.
  • Europe net sales were $74 million, down 16% compared to the second quarter of 2021 attributable to a 10% decrease due to unfavorable foreign exchange and a 6% decrease due to a prior year divestiture, as a 16% decrease in volume was fully offset by a 16% increase in AUP.
  • Architectural net sales were $75 million, a 1% decrease compared to the second quarter of 2021, driven by a 13% decrease in volume as well as a 1% impact from lower component sales and unfavorable foreign exchange, largely offset by a 13% increase in AUP.

Total company gross profit was $179 million in the second quarter of 2022, an increase of 9% compared to $164 million in the second quarter of 2021. Gross profit margin decreased 120 basis points to 23.6%, as higher AUP was offset by the impact of inflation on raw materials and logistics costs, higher manufacturing wages and lower volume in our Europe and Architectural segments.

Selling, general and administration (SG&A) expenses were $90 million in the second quarter of 2022, an increase of approximately 10% compared to $83 million in the second quarter of 2021 primarily due to higher personnel costs, which includes increased incentive compensation, wage and benefit inflation and resources to support growth. SG&A as a percentage of net sales was 11.9%, 60 basis points lower as compared to the second quarter of 2021.

Net income attributable to Masonite was $59 million in the second quarter of 2022 compared to $35 million in the second quarter of 2021. The increase was primarily driven by higher gross profit as discussed above, as well as the absence of $18 million in charges incurred in the second quarter of 2021 related to our previously announced restructuring plans and a loss on the disposal of our Czech business.

Adjusted EBITDA* of $118 million in the second quarter of 2022 increased approximately 7% from $111 million in the second quarter of 2021. Diluted earnings per share were $2.58 in the second quarter of 2022, an increase of 83% compared to $1.41 in the comparable 2021 period. Diluted adjusted earnings per share* were $2.58 in the second quarter of 2022 compared to $2.23 in the comparable 2021 period, which excludes $18 million in charges as discussed above.

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

Balance Sheet, Cash Flow and Capital Allocation

At the end of the quarter, total available liquidity was $482 million, inclusive of $232 million in unrestricted cash and $251 million of availability under our ABL Facility and our AR Sales Program.

Cash provided by operations was $34 million for the six months ended July 3, 2022, as compared to $33 million in the prior year period. Capital expenditures were $40 million for the six months ended July 3, 2022, an increase from $30 million in the comparable period of 2021.

During the second quarter, Masonite completed the previously announced accelerated share repurchase agreement (the “ASR Agreement”) and received the final delivery of approximately 320 thousand common shares. Combined with the initial delivery of 848 thousand common shares, the $100 million ASR transaction resulted in the retirement of nearly 1.2 million common shares at a volume-weighted average price of $85.63 per share.

Full Year 2022 Outlook

The Company affirmed its full year Net Sales and Adjusted EBITDA* outlook and increased Adjusted EPS* expectations as follows:

 

Net Sales Growth

+6% – 10% YoY

+8% – 12% ex. FX YoY

Adjusted EBITDA*

$445 – $475M

+8% – 15% YoY

Adjusted EPS*

$9.60 – $10.60

+18% – 30% YoY

“We are pleased with the strong results our team delivered in the first half of this year.” said Russ Tiejema, Executive Vice President and CFO. “Looking forward, we are closely monitoring the demand outlook for the North American Residential markets in the second half, but given the progress we have already made in executing our growth strategy we remain confident in our ability to meet or exceed our full year outlook for Net Sales and Adjusted EBITDA*. As a result of our shareholder return initiatives, we are increasing our full year outlook for Adjusted EPS* to a range of $9.60 to $10.60 to reflect a lower share count, partially offset by a higher anticipated tax rate.”

A quantitative reconciliation of Adjusted EBITDA* and Adjusted EPS* to the corresponding GAAP information is not provided for the 2022 outlook because it is difficult to predict the GAAP measures that are excluded from Adjusted EBITDA* such as restructuring costs, asset impairments, share based compensation expense and gains/losses on sales of subsidiaries and PP&E.

Masonite Earnings Conference Call

The Company will hold a live conference call and webcast on August 9, 2022. The live audio webcast will begin at 9:00 a.m. EDT and can be accessed, together with the presentation, on the Masonite website www.masonite.com. The webcast can be directly accessed at: Q2’22 Earnings Webcast.

Telephone access to the live call will be available at 877-407-8289 (in the U.S.) or by dialing 201-689-8341 (outside the U.S.).

A telephone replay will be available approximately one hour following completion of the call through August 23, 2022. To access the replay, please dial 877-660-6853 (in the U.S.) or 201-612-7415 (outside U.S.). Enter Conference ID #13730458.

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

About Masonite

Masonite International Corporation is a leading global designer, manufacturer, marketer and distributor of interior and exterior doors for the new construction and repair, renovation and remodeling sectors of the residential and non-residential building construction markets. Since 1925, Masonite has provided its customers with innovative products and superior service at compelling values. Masonite currently serves more than 7,000 customers globally. Additional information about Masonite can be found at www.masonite.com.

Forward-looking Statements

This press release contains “forward-looking statements” within the meaning of federal securities laws, including our discussion of our 2022 outlook and 2025 Centennial Plan, the conditions in our industry, our operations, our economic performance and financial condition, including, in particular, statements relating to our business and growth strategy and product development efforts. 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; impacts on our business including seasonality, weather and climate change; scale and scope of the ongoing 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 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. For a more detailed discussion of these factors, see the information under the captions “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Forward Looking Statements” in our most recent annual report on Form 10-K filed with the SEC on February 24, 2022, in each case as updated by our subsequent filings with the SEC. Masonite undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

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

Non-GAAP Financial Measures and Related Information

Our management reviews net sales and Adjusted EBITDA (as defined below) to evaluate segment performance and allocate resources. Net assets are not allocated to the reportable segments. Adjusted EBITDA is a non-GAAP financial measure which does not have a standardized meaning under GAAP and is unlikely to be comparable to similar measures used by other companies. Adjusted EBITDA should not be considered as an alternative to either net income or operating cash flows determined in accordance with GAAP. Additionally, Adjusted EBITDA is not intended to be a measure of free cash flow for management’s discretionary use, as it does not include certain cash requirements such as interest payments, tax payments and debt service requirements. Adjusted EBITDA is defined as net income attributable to Masonite adjusted to exclude the following items: depreciation; amortization; share based compensation expense; loss (gain) on disposal of property, plant and equipment; registration and listing fees; restructuring costs; asset impairment; loss (gain) on disposal of subsidiaries; interest expense (income), net; loss on extinguishment of debt; other expense (income), net; income tax expense (benefit); other items; loss (income) from discontinued operations, net of tax; and net income (loss) attributable to non-controlling interest. This definition of Adjusted EBITDA differs from the definitions of EBITDA contained in the indentures governing the 2028 and 2030 Notes and the credit agreement governing the ABL Facility. Adjusted EBITDA, as calculated under our ABL Facility or senior notes would also include, among other things, additional add-backs for amounts related to: cost savings projected by us in good faith to be realized as a result of actions taken or expected to be taken prior to or during the relevant period; fees and expenses in connection with certain plant closures and layoffs; and the amount of any restructuring charges, integration costs or other business optimization expenses or reserve deducted in the relevant period in computing consolidated net income, including any one-time costs incurred in connection with acquisitions. Adjusted EBITDA is used to evaluate and compare the performance of the segments and it is one of the primary measures used to determine employee incentive compensation. Intersegment sales are recorded using market prices. We believe that Adjusted EBITDA, from an operations standpoint, provides an appropriate way to measure and assess segment performance. Our management team has established the practice of reviewing the performance of each segment based on the measures of net sales and Adjusted EBITDA. We believe that Adjusted EBITDA is useful to users of the consolidated financial statements because it provides the same information that we use internally to evaluate and compare the performance of the segments and it is one of the primary measures used to determine employee incentive compensation.

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

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

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

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

MASONITE INTERNATIONAL CORPORATION

SALES RECONCILIATION AND ADJUSTED EBITDA BY REPORTABLE SEGMENT

(In millions of U.S. dollars)

(Unaudited)

 

 

North

American

Residential

 

Europe

 

Architectural

 

Corporate

and Other

 

Total

 

% Change

Second quarter 2021 net sales

$

493.4

 

 

$

87.8

 

 

$

75.8

 

 

$

5.4

 

 

$

662.4

 

 

 

Acquisitions, net of divestitures

 

 

 

 

(5.4

)

 

 

 

 

 

 

 

 

(5.4

)

 

(0.8

%)

Volume

 

16.1

 

 

 

(14.0

)

 

 

(9.8

)

 

 

 

 

 

(7.6

)

 

(1.1

%)

Average unit price

 

102.2

 

 

 

14.0

 

 

 

9.9

 

 

 

1.4

 

 

 

127.4

 

 

19.2

%

Components

 

(0.1

)

 

 

0.1

 

 

 

(0.2

)

 

 

(1.9

)

 

 

(2.1

)

 

(0.3

%)

Foreign exchange

 

(3.8

)

 

 

(8.6

)

 

 

(0.3

)

 

 

(0.1

)

 

 

(12.8

)

 

(1.9

%)

Second quarter 2022 net sales

$

607.8

 

 

$

73.9

 

 

$

75.4

 

 

$

4.8

 

 

$

761.9

 

 

 

Year over year change, net sales

 

23.2

%

 

 

(15.8

%)

 

 

(0.5

%)

 

 

(11.1

%)

 

 

15.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second quarter 2021 Adjusted EBITDA

$

100.0

 

 

$

16.6

 

 

$

0.5

 

 

$

(6.5

)

 

$

110.6

 

 

 

Second quarter 2022 Adjusted EBITDA

 

125.0

 

 

 

8.6

 

 

 

0.1

 

 

 

(15.5

)

 

 

118.1

 

 

 

Year over year change, Adjusted EBITDA

 

24.9

%

 

 

(48.3

%)

 

 

(83.8

%)

 

 

136.7

%

 

 

6.8

%

 

 

 

North

American

Residential

 

Europe

 

Architectural

 

Corporate

and Other

 

Total

 

% Change

Year to date 2021 net sales

$

969.9

 

 

$

176.3

 

 

$

150.8

 

 

$

11.7

 

 

$

1,308.7

 

 

 

Acquisitions, net of divestitures

 

 

 

 

(11.7

)

 

 

 

 

 

 

 

 

(11.7

)

 

(0.9

%)

Volume

 

28.5

 

 

 

(27.8

)

 

 

(17.3

)

 

 

 

 

 

(16.5

)

 

(1.3

%)

Average unit price

 

181.7

 

 

 

28.0

 

 

 

16.3

 

 

 

1.3

 

 

 

227.3

 

 

17.4

%

Components

 

0.3

 

 

 

0.8

 

 

 

(3.1

)

 

 

(1.9

)

 

 

(3.9

)

 

(0.3

%)

Foreign exchange

 

(4.1

)

 

 

(11.3

)

 

 

(0.3

)

 

 

(0.1

)

 

 

(15.8

)

 

(1.2

%)

Year to date 2022 net sales

$

1,176.3

 

 

$

154.3

 

 

$

146.4

 

 

$

11.0

 

 

$

1,488.1

 

 

 

Year over year growth, net sales

 

21.3

%

 

 

(12.5

%)

 

 

(2.9

%)

 

 

(6.0

%)

 

 

13.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year to date 2021 Adjusted EBITDA

$

194.5

 

 

$

33.3

 

 

$

2.5

 

 

$

(17.8

)

 

$

212.6

 

 

 

Year to date 2022 Adjusted EBITDA

 

252.6

 

 

 

20.4

 

 

 

(2.8

)

 

 

(27.4

)

 

 

242.9

 

 

 

Year over year growth, Adjusted EBITDA

 

29.9

%

 

 

(38.8

%)

 

 

(214.0

%)

 

 

54.1

%

 

 

14.2

%

 

 

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, 2022

 

July 4, 2021

 

July 3, 2022

 

July 4, 2021

Net sales

$

761,874

 

 

$

662,410

 

 

$

1,488,091

 

 

$

1,308,747

 

Cost of goods sold

 

582,389

 

 

 

498,068

 

 

 

1,124,357

 

 

 

985,767

 

Gross profit

 

179,485

 

 

 

164,342

 

 

 

363,734

 

 

 

322,980

 

Gross profit as a % of net sales

 

23.6

%

 

 

24.8

%

 

 

24.4

%

 

 

24.7

%

 

 

 

 

 

 

 

 

Selling, general and administration expenses

 

90,330

 

 

 

82,511

 

 

 

173,576

 

 

 

166,142

 

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

 

11.9

%

 

 

12.5

%

 

 

11.7

%

 

 

12.7

%

 

 

 

 

 

 

 

 

Restructuring (benefit) costs

 

(61

)

 

 

2,192

 

 

 

(80

)

 

 

3,835

 

Asset impairment

 

 

 

 

10,374

 

 

 

 

 

 

10,374

 

Loss on disposal of subsidiaries

 

 

 

 

8,590

 

 

 

 

 

 

8,590

 

Operating income

 

89,216

 

 

 

60,675

 

 

 

190,238

 

 

 

134,039

 

Interest expense, net

 

10,593

 

 

 

11,918

 

 

 

20,832

 

 

 

23,864

 

Other (income) expense, net

 

(400

)

 

 

(1,586

)

 

 

(1,815

)

 

 

(2,929

)

Income before income tax expense

 

79,023

 

 

 

50,343

 

 

 

171,221

 

 

 

113,104

 

Income tax expense

 

19,649

 

 

 

14,246

 

 

 

43,126

 

 

 

28,859

 

Net income

 

59,374

 

 

 

36,097

 

 

 

128,095

 

 

 

84,245

 

Less: net income attributable to non-controlling interests

 

859

 

 

 

1,051

 

 

 

1,998

 

 

 

2,218

 

Net income attributable to Masonite

$

58,515

 

 

$

35,046

 

 

$

126,097

 

 

$

82,027

 

 

 

 

 

 

 

 

 

Basic earnings per common share attributable to Masonite

$

2.60

 

 

$

1.43

 

 

$

5.53

 

 

$

3.35

 

Diluted earnings per common share attributable to Masonite

$

2.58

 

 

$

1.41

 

 

$

5.47

 

 

$

3.30

 

 

 

 

 

 

 

 

 

Shares used in computing basic earnings per share

 

22,525,333

 

 

 

24,450,542

 

 

 

22,803,403

 

 

 

24,460,098

 

Shares used in computing diluted earnings per share

 

22,704,953

 

 

 

24,842,019

 

 

 

23,058,031

 

 

 

24,883,814

 

MASONITE INTERNATIONAL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

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

(Unaudited)

 

ASSETS

July 3, 2022

 

January 2, 2022

Current assets:

 

 

 

Cash and cash equivalents

$

231,541

 

 

$

381,395

 

Restricted cash

 

11,099

 

 

 

10,110

 

Accounts receivable, net

 

405,762

 

 

 

343,414

 

Inventories, net

 

431,266

 

 

 

347,476

 

Prepaid expenses and other assets

 

54,670

 

 

 

50,399

 

Income taxes receivable

 

3,340

 

 

 

1,332

 

Total current assets

 

1,137,678

 

 

 

1,134,126

 

Property, plant and equipment, net

 

616,015

 

 

 

626,797

 

Operating lease right-of-use assets

 

168,700

 

 

 

176,445

 

Investment in equity investees

 

17,604

 

 

 

14,994

 

Goodwill

 

69,921

 

 

 

77,102

 

Intangible assets, net

 

136,962

 

 

 

150,487

 

Deferred income taxes

 

24,238

 

 

 

20,764

 

Other assets

 

48,119

 

 

 

45,903

 

Total assets

$

2,219,237

 

 

$

2,246,618

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

145,628

 

 

$

138,788

 

Accrued expenses

 

245,505

 

 

 

237,300

 

Income taxes payable

 

8,004

 

 

 

8,551

 

Total current liabilities

 

399,137

 

 

 

384,639

 

Long-term debt

 

866,362

 

 

 

865,721

 

Long-term operating lease liabilities

 

157,987

 

 

 

165,670

 

Deferred income taxes

 

81,092

 

 

 

77,936

 

Other liabilities

 

51,594

 

 

 

52,874

 

Total liabilities

 

1,556,172

 

 

 

1,546,840

 

Commitments and Contingencies

 

 

 

Equity:

 

 

 

Share capital: unlimited shares authorized, no par value, 22,259,356 and 23,623,887 shares issued and outstanding as of July 3, 2022, and January 2, 2022, respectively

 

521,243

 

 

 

543,400

 

Additional paid-in capital

 

216,653

 

 

 

222,177

 

Retained earnings

 

46,271

 

 

 

24,244

 

Accumulated other comprehensive loss

 

(132,721

)

 

 

(101,582

)

Total equity attributable to Masonite

 

651,446

 

 

 

688,239

 

Equity attributable to non-controlling interests

 

11,619

 

 

 

11,539

 

Total equity

 

663,065

 

 

 

699,778

 

Total liabilities and equity

$

2,219,237

 

 

$

2,246,618

 

MASONITE INTERNATIONAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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

(Unaudited)

 

 

Six Months Ended

Cash flows from operating activities:

July 3, 2022

 

July 4, 2021

Net income

$

128,095

 

 

$

84,245

 

Adjustments to reconcile net income to net cash flow provided by operating activities:

 

 

 

Loss on disposal of subsidiaries

 

 

 

 

8,590

 

Depreciation

 

34,516

 

 

 

35,511

 

Amortization

 

8,908

 

 

 

11,326

 

Share based compensation expense

 

10,695

 

 

 

9,124

 

Deferred income taxes

 

1,042

 

 

 

12,164

 

Unrealized foreign exchange loss (gain)

 

356

 

 

 

(372

)

Share of income from equity investees, net of tax

 

(2,610

)

 

 

(1,339

)

Dividend from equity investee

 

 

 

 

4,500

 

Pension and post-retirement funding, net of expense

 

 

 

 

(1,873

)

Non-cash accruals and interest

 

(114

)

 

 

839

 

Gain on sale of property, plant and equipment

 

(1,400

)

 

 

(210

)

Asset impairment

 

 

 

 

10,374

 

Changes in assets and liabilities, net of acquisitions:

 

 

 

Accounts receivable

 

(67,611

)

 

 

(72,437

)

Inventories

 

(89,508

)

 

 

(24,182

)

Prepaid expenses and other assets

 

(4,821

)

 

 

(536

)

Accounts payable and accrued expenses

 

23,302

 

 

 

(28,651

)

Other assets and liabilities

 

(6,736

)

 

 

(13,863

)

Net cash flow provided by operating activities

 

34,114

 

 

 

33,210

 

 

 

 

 

Cash flows from investing activities:

 

 

 

Additions to property, plant and equipment

 

(39,955

)

 

 

(29,659

)

Acquisition of businesses, net of cash acquired

 

 

 

 

(160

)

Proceeds from sale of subsidiaries, net of cash disposed

 

 

 

 

7,001

 

Proceeds from sale of property, plant and equipment

 

6,394

 

 

 

3,392

 

Other investing activities

 

(1,152

)

 

 

(1,247

)

Net cash flow used in investing activities

 

(34,713

)

 

 

(20,673

)

 

 

 

 

Cash flows from financing activities:

 

 

 

Repayments of long-term debt

 

 

 

 

(945

)

Tax withholding on share based awards

 

(3,109

)

 

 

(3,944

)

Distributions to non-controlling interests

 

(2,559

)

 

 

(1,804

)

Repurchases of common shares

 

(140,000

)

 

 

(42,026

)

Net cash flow used in financing activities

 

(145,668

)

 

 

(48,719

)

 

 

 

 

Net foreign currency translation adjustment on cash

 

(2,598

)

 

 

106

 

Decrease in cash, cash equivalents and restricted cash

 

(148,865

)

 

 

(36,076

)

Cash, cash equivalents and restricted cash, beginning of period

 

391,505

 

 

 

375,234

 

Cash, cash equivalents and restricted cash, at end of period

$

242,640

 

 

$

339,158

 

Contacts

Richard Leland
VP, FINANCE AND TREASURER

rleland@masonite.com
813.739.1808

Marcus Devlin
DIRECTOR, INVESTOR RELATIONS

mdevlin@masonite.com
813.371.5839

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