EX-99 2 a331248-kex99.htm EX-99 Document

Exhibit 99
 mascoa14.jpg
 
MASCO CORPORATION REPORTS FIRST QUARTER 2024 RESULTS

Highlights
•Net sales decreased 3 percent to $1,926 million
•Operating profit increased 1 percent to $318 million; adjusted operating profit increased 3 percent to $322 million
•Operating profit margin increased 60 basis points to 16.5 percent; adjusted operating profit margin increased 90 basis points to 16.7 percent
•Earnings per share was $0.97 per share; adjusted earnings per share grew 8 percent to $0.93 per share
•Repurchased 2.1 million shares for $148 million
•Continue to expect 2024 earnings per share in the range of $4.00 – $4.25 per share

LIVONIA, Mich. (April 24, 2024) - Masco Corporation (NYSE: MAS), one of the world’s leading manufacturers of branded home improvement and building products, reported its first quarter 2024 results.

2024 First Quarter Results
•On a reported basis, compared to first quarter 2023:
•Net sales decreased 3 percent to $1,926 million; in local currency and excluding acquisitions, net sales decreased 4 percent
◦Plumbing Products’ net sales decreased 2 percent; in local currency and excluding acquisitions, net sales decreased 4 percent
◦Decorative Architectural Products’ net sales decreased 3 percent
◦In local currency, North American sales decreased 2 percent and international sales decreased 5 percent
•Gross margin increased 180 basis points to 35.6 percent from 33.8 percent
•Operating profit increased 1 percent to $318 million from $315 million
•Operating margin increased 60 basis points to 16.5 percent from 15.9 percent
•Net income increased to $0.97 per share, compared to $0.90 per share
•Compared to first quarter 2023, results for key financial measures, as adjusted for certain items (see Exhibit A) and with a normalized tax rate of 24.5 percent, were as follows:
•Gross margin increased 210 basis points to 35.7 percent from 33.6 percent
•Operating profit increased 3 percent to $322 million from $312 million
•Operating margin increased 90 basis points to 16.7 percent from 15.8 percent
•Net income increased 8 percent to $0.93 per share, compared to $0.86 per share
•Liquidity at the end of the first quarter was $1,319 million (including availability under revolving credit facility)

“We delivered another quarter of strong results,” said Masco President and CEO, Keith Allman. “We expanded adjusted operating profit margin by 90 basis points and grew adjusted earnings per share by 8 percent through improved operational efficiencies and our continued focus on execution. Additionally, our balanced capital allocation strategy enabled us to return $212 million to shareholders through dividends and share repurchases during the quarter.”

“With the year beginning largely as expected, we continue to anticipate that 2024 adjusted earnings per share will be in the range of $4.00 to $4.25 per share,” said Allman. “Through our ongoing investments in our market leading brands, innovation, and service and our disciplined capital allocation strategy, we are confident in Masco’s ability to continue to deliver long-term shareholder value.”








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About Masco
Headquartered in Livonia, Michigan, Masco Corporation is a global leader in the design, manufacture and distribution of branded home improvement and building products. Our portfolio of industry-leading brands includes Behr® paint; Delta® and hansgrohe® faucets, bath and shower fixtures; Kichler® decorative and outdoor lighting; Liberty® branded decorative and functional hardware; and HotSpring® spas. We leverage our powerful brands across product categories, sales channels and geographies to create value for our customers and shareholders. For more information about Masco Corporation, visit www.masco.com.

The 2024 first quarter supplemental material, including a presentation in PDF format, is available on the Company’s website at www.masco.com.
Conference Call Details
A conference call regarding items contained in this release is scheduled for Wednesday, April 24, 2024 at 8:00 a.m. ET. Participants in the call are asked to register five to ten minutes prior to the scheduled start time by dialing 888-259-6580 or 206-962-3782. Please use the conference identification number 73983883.
The conference call will be webcast simultaneously and in its entirety through the Company’s website. Shareholders, media representatives and others interested in Masco may participate in the webcast by registering through the Investor Relations section on the Company’s website.
A replay of the call will be available on Masco’s website or by phone by dialing 877-674-7070 or 416-764-8692. Please use the playback passcode 983883#. The telephone replay will be available approximately two hours after the end of the call and continue through May 23, 2024.
Safe Harbor Statement
This press release contains statements that reflect our views about our future performance and constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “outlook,” “believe,” “anticipate,” “appear,” “may,” “will,” “should,” “intend,” “plan,” “estimate,” “expect,” “assume,” “seek,” “forecast,” and similar references to future periods. Our views about future performance involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. We caution you against relying on any of these forward-looking statements.
Our future performance may be affected by the levels of residential repair and remodel activity, and to a lesser extent, new home construction, our ability to maintain our strong brands, to develop innovative products and respond to changing consumer purchasing practices and preferences, our ability to maintain our public image and reputation, our ability to maintain our competitive position in our industries, our reliance on key customers, the cost and availability of materials, our dependence on suppliers and service providers, extreme weather events and changes in climate, risks associated with our international operations and global strategies, our ability to achieve the anticipated benefits of our strategic initiatives, our ability to successfully execute our acquisition strategy and integrate businesses that we have acquired and may in the future acquire, our ability to attract, develop and retain a talented and diverse workforce, risks associated with cybersecurity vulnerabilities, threats and attacks and risks associated with our reliance on information systems and technology. These and other factors are discussed in detail in Item 1A. "Risk Factors" in our most recent Annual Report on Form 10-K, as well as in our Quarterly Reports on Form 10-Q and in other filings we make with the Securities and Exchange Commission. Any forward-looking statement made by us speaks only as of the date on which it was made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. Unless required by law, we undertake no obligation to update publicly any forward-looking statements as a result of new information, future events or otherwise.
Investor Contact
Robin Zondervan
Vice President, Investor Relations and FP&A
313.792.5500
robin_zondervan@mascohq.com
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MASCO CORPORATION
Condensed Consolidated Statements of Operations - Unaudited
For the Three Months Ended March 31, 2024 and 2023
(in millions, except per common share data)
Three Months Ended March 31,
 20242023
Net sales$1,926 $1,979 
Cost of sales1,241 1,310 
Gross profit685 669 
Selling, general and administrative expenses367 354 
Operating profit318 315 
Other income (expense), net:
Interest expense(25)(28)
Other, net(5)(2)
(30)(30)
Income before income taxes289 285 
Income tax expense60 64 
Net income229 221 
Less: Net income attributable to noncontrolling interest14 16 
Net income attributable to Masco Corporation$215 $205 
Income per common share attributable to Masco Corporation (diluted):
Net income$0.97 $0.90 
Average diluted common shares outstanding221 227 
 
Historical information is available on our website.

Amounts may not add due to rounding.
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MASCO CORPORATION
Exhibit A: Reconciliations - Unaudited
For the Three Months Ended March 31, 2024 and 2023
(dollars in millions)
Three Months Ended March 31,
 20242023
Gross Profit, Selling, General and Administrative Expenses, and Operating Profit Reconciliations  
Net sales$1,926 $1,979 
Gross profit, as reported$685 $669 
Rationalization charges (income) (1)
3 (4)
Gross profit, as adjusted$688 $665 
Gross margin, as reported35.6 %33.8 %
Gross margin, as adjusted35.7 %33.6 %
Selling, general and administrative expenses, as reported$367 $354 
Rationalization charges— 1 
Selling, general and administrative expenses, as adjusted$367 $353 
Selling, general and administrative expenses as percent of net sales, as reported19.1 %17.9 %
Selling, general and administrative expenses as percent of net sales, as adjusted19.1 %17.8 %
Operating profit, as reported$318 $315 
Rationalization charges (income) (1)
3 (3)
Operating profit, as adjusted$322 $312 
Operating margin, as reported16.5 %15.9 %
Operating margin, as adjusted16.7 %15.8 %

(1) Represents income for the three months ended March 31, 2023 due to the sale of excess and obsolete inventory that was related to a rationalization activity, partially offset by rationalization charges.

Historical information is available on our website.









Amounts may not add due to rounding.
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MASCO CORPORATION
Exhibit A: Reconciliations - Unaudited
For the Three Months Ended March 31, 2024 and 2023
(in millions, except per common share data)
Three Months Ended March 31,
 20242023
Income Per Common Share Reconciliations
Income before income taxes, as reported$289 $285 
Rationalization charges (income) (1)
3 (3)
Realized (gains) from private equity funds— (1)
Income before income taxes, as adjusted292 281 
Tax at 24.5% rate (72)(69)
Less: Net income attributable to noncontrolling interest14 16 
Net income, as adjusted$206 $196 
Net income per common share, as adjusted$0.93 $0.86 
Average diluted common shares outstanding221 227 
(1) Represents income for the three months ended March 31, 2023 due to the sale of excess and obsolete inventory that was related to a rationalization activity, partially offset by rationalization charges.

Outlook for the Year Ended December 31, 2024
Year Ended December 31, 2024
Low EndHigh End
Income Per Common Share Reconciliation
Net income per common share$4.00 $4.25 
Rationalization charges
— — 
Net income per common share, as adjusted$4.00 $4.25 
    
Historical information is available on our website.

Amounts may not add due to rounding.
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MASCO CORPORATION
Condensed Consolidated Balance Sheets and Other Financial Data - Unaudited
March 31, 2024 and December 31, 2023
(dollars in millions)
March 31, 2024December 31, 2023
Balance Sheet  
Assets  
Current assets:  
Cash and cash investments$368 $634 
Receivables1,310 1,090 
Inventories1,059 1,022 
Prepaid expenses and other112 110 
Total current assets2,850 2,856 
Property and equipment, net1,111 1,121 
Goodwill598 604 
Other intangible assets, net367 377 
Operating lease right-of-use assets262 268 
Other assets148 139 
Total assets$5,336 $5,363 
Liabilities  
Current liabilities:  
Accounts payable$899 $840 
Notes payable52 3 
Accrued liabilities690 852 
Total current liabilities1,641 1,695 
Long-term debt2,945 2,945 
Noncurrent operating lease liabilities252 258 
Other liabilities340 349 
Total liabilities5,179 5,247 
Redeemable noncontrolling interest— 18 
Equity157 98 
Total liabilities and equity$5,336 $5,363 

 As of March 31,
20242023
Other Financial Data  
Working capital days  
Receivable days55 54 
Inventory days81 80 
Payable days71 70 
Working capital$1,470 $1,612 
Working capital as a % of sales (LTM)
18.6 %19.1 %

Historical information is available on our website.
Amounts may not add due to rounding.
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MASCO CORPORATION
Condensed Consolidated Statements of Cash Flows and Other Financial Data - Unaudited
For the Three Months Ended March 31, 2024 and 2023

(dollars in millions)
Three Months Ended March 31,
 20242023
Cash Flows From (For) Operating Activities:  
Cash provided by operating activities$314 $286 
Working capital changes(409)(253)
Net cash (for) from operating activities(94)33 
Cash Flows From (For) Financing Activities:  
Purchase of Company common stock(145)(53)
Cash dividends paid(64)(65)
Purchase of redeemable noncontrolling interest(15)— 
Proceeds from revolving credit borrowings, net49 210 
Proceeds from the exercise of stock options75 9 
Employee withholding taxes paid on stock-based compensation(33)(20)
Decrease in debt, net(1)(3)
Net cash (for) from financing activities(134)78 
Cash Flows From (For) Investing Activities:  
Capital expenditures(31)(61)
Other, net(2)2 
Net cash for investing activities(33)(59)
Effect of exchange rate changes on cash and cash investments(6)6 
Cash and Cash Investments:  
(Decrease) increase for the period(266)58 
At January 1634 452 
At March 31$368 $510 
 
 As of March 31,
 20242023
Liquidity
Cash and cash investments$368 $510 
Revolver availability951 790 
Total Liquidity$1,319 $1,300 
 
Historical information is available on our website.



Amounts may not add due to rounding.
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MASCO CORPORATION
Segment Data - Unaudited
For the Three Months Ended March 31, 2024 and 2023
(dollars in millions)
Three Months Ended March 31,
 20242023Change
Plumbing Products   
Net sales$1,192 $1,222 (2)%
Operating profit, as reported$226 $206 
Operating margin, as reported19.0 %16.9 %
Rationalization charges (income)3 (4)
Operating profit, as adjusted228 202 
Operating margin, as adjusted19.1 %16.5 %
Depreciation and amortization26 25 
EBITDA, as adjusted$255 $227 
Decorative Architectural Products
Net sales$734 $757 (3)%
Operating profit, as reported$124 $132 
Operating margin, as reported16.9 %17.4 %
Rationalization charges1 1 
Operating profit, as adjusted125 133 
Operating margin, as adjusted17.0 %17.6 %
Depreciation and amortization10 8 
EBITDA, as adjusted$134 $141 
Total
Net sales$1,926 $1,979 (3)%
Operating profit, as reported - segment$350 $338 
General corporate expense, net(31)(23)
Operating profit, as reported318 315 
Operating margin, as reported16.5 %15.9 %
Rationalization charges (income) - segment3 (3)
Operating profit, as adjusted322 312 
Operating margin, as adjusted16.7 %15.8 %
Depreciation and amortization - segment36 33 
Depreciation and amortization - other2 2 
EBITDA, as adjusted$360 $347 

Historical information is available on our website.
Amounts may not add due to rounding.
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MASCO CORPORATION
North American and International Data - Unaudited
For the Three Months Ended March 31, 2024 and 2023
(dollars in millions)
Three Months Ended March 31,
 20242023Change
North American   
Net sales$1,526 $1,555 (2)%
Operating profit, as reported$285 $266 
Operating margin, as reported18.7 %17.1 %
Rationalization charges (income)2 (3)
Operating profit, as adjusted287 263 
Operating margin, as adjusted18.8 %16.9 %
Depreciation and amortization23 21 
EBITDA, as adjusted$311 $284 
International
Net sales$400 $424 (6)%
Operating profit, as reported$65 $72 
Operating margin, as reported16.3 %17.0 %
Rationalization charges1 — 
Operating profit, as adjusted66 72 
Operating margin, as adjusted16.5 %17.0 %
Depreciation and amortization12 12 
EBITDA, as adjusted$78 $84 
Total
Net sales$1,926 $1,979 (3)%
Operating profit, as reported - segment$350 $338 
General corporate expense, net(31)(23)
Operating profit, as reported318 315 
Operating margin, as reported16.5 %15.9 %
Rationalization charges (income) - segment3 (3)
Operating profit, as adjusted322 312 
Operating margin, as adjusted16.7 %15.8 %
Depreciation and amortization - segment36 33 
Depreciation and amortization - other2 2 
EBITDA, as adjusted$360 $347 

Historical information is available on our website.
Amounts may not add due to rounding.
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