EX-99 2 a14-5218_1ex99.htm EX-99

Exhibit 99

 

GRAPHIC

 

MASCO DELIVERS SOLID FOURTH QUARTER RESULTING IN

A STRONG 2013 PERFORMANCE

 

Key Highlights — 2013 Fourth Quarter

 

·                  Sales increased 9 percent to $2.0 billion

·                  North American sales increased 9 percent

·                  International sales increased 7 percent in local currency

·                  All segments positively contributed to top-line growth

·                  Operating margin (as adjusted) expansion of 210 basis points

 

TAYLOR, Mich. (February 10, 2014) — Masco Corporation (NYSE: MAS) achieved increased sales and profit in the fourth quarter of 2013.  All five operating segments positively contributed to top-line growth and benefited from North American new home construction activity, repair and remodel activity, new product sales and further stabilization of European economies.

 

2013 Fourth Quarter Commentary

 

·                  Net sales from continuing operations increased 9 percent to $2.0 billion, compared with $1.8 billion for fourth quarter 2012.  North American sales increased 9 percent, and international sales increased 11 percent in U.S. dollars and 7 percent in local currency, compared to fourth quarter 2012

·                  Compared to fourth quarter 2012, results for key financial measures, as adjusted for certain items (see Exhibit A) and with a normalized tax rate of 36 percent, were as follows:

 

·                  Gross profit margins of 27.1 percent increased 100 bps

·                  Operating profit margins of 7.7 percent increased 210 bps

·                  Income from continuing operations was $0.15 per common share compared to $0.06 per common share

 

·                  Income (loss) from continuing operations, as reported, was $0.11 per common share compared to $(0.20) per common share in the fourth quarter of 2012

·                  In December, we completed the sale of our Danish ready-to-assemble cabinet business, previously included in discontinued operations

·                  We ended the fourth quarter with approximately $1.5 billion of balance sheet liquidity

 

2013 Fourth Quarter Operating Segment Results

 

·                  Plumbing Products’ net sales increased 8 percent, fueled by growth in new products at retail from repair and remodel activity and international sales

·                  Decorative Architectural Products’ net sales increased 6 percent, driven by new products and programs

·                  Cabinets and Related Products’ net sales increased 9 percent, strengthened by increased North American cabinetry dealer channel sales from repair and remodel activity

·                  Installation and Other Services’ net sales increased 15 percent, due to growth in new home construction, commercial and retrofit activity

 

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·                  Other Specialty Products’ net sales increased 9 percent, led by North American window sales percentage growth in the low teens

 

“We delivered a strong fourth quarter with improved top and bottom line growth across all five operating segments,” said Masco’s president and CEO, Timothy Wadhams. “Sales growth was driven by new products and increased international sales that outperformed the Eurozone economies.  In North America, we continued to benefit from the growth of new home construction and improved repair and remodel activity and our operating leverage. Our strong fourth quarter performance reflects our ongoing commitment to successfully deliver on our strategic initiatives, which include leveraging our brands, reducing our costs, improving our Installation and Cabinet segments and strengthening our balance sheet.”

 

2013 Full-Year Commentary

 

·                  Net sales increased 9 percent to $8.2 billion, compared to 2012

·                  Compared to full-year 2012, results for key financial measures, as adjusted for certain items (see Exhibit A) and with a normalized tax rate of 36 percent, were as follows:

 

·                  Gross profit margins were 28.0 percent compared to 26.9 percent

·                  Operating profit margins were 8.8 percent compared to 6.7 percent

·                  Income from continuing operations was $0.77 per common share compared to $0.37 per common share

 

·                  Income (loss) from continuing operations, as reported, was $0.78 per common share compared to $(0.16) per common share in 2012

·                  Free cash flow exceeded $500 million

 

“I am very pleased with our full-year 2013 performance,” said Timothy Wadhams.  “We delivered on all of the priorities we identified and communicated at the beginning of the year.  In particular, our strong top-line growth and operating leverage increased our return on sales by over 200 basis points.  In addition, while we were cash flow positive throughout the recession, we generated in excess of $500 million of free cash flow in 2013.  I want to personally thank our associates across the enterprise for delivering a great year in 2013.  Masco is well positioned and Keith will lead an outstanding team into the future.”

 

Outlook 2014

 

On January 8, 2014, we announced that Masco’s Board of Directors elected Keith J. Allman to succeed Timothy Wadhams upon his retirement as president and CEO, effective February 14, 2014.

 

Mr. Allman, who currently serves as a Masco group president, joined Masco in 1998 as vice president of manufacturing for cabinetmaker Merillat Industries.  In 2007, Mr. Allman became president of Delta Faucet Company.  In 2011, he was promoted to group president and has responsibility for Masco’s Plumbing and North American Cabinet businesses.

 

“I am pleased and excited that Keith will succeed me as Masco’s president and CEO,” said Timothy Wadhams. “I believe that Keith’s proven track record and leadership skills make him the right person at the right time to take Masco to the next level in terms of execution and performance.”

 

“In 2014, we expect new home construction and repair and remodel activity to show continued improvement in North America and internationally,” said Keith Allman. “Our focus will be to continue to maximize the benefits of this activity and maintain the positive momentum that started for us in the fourth quarter of 2012.  We believe we are well positioned to grow our key brands and to gain market share in

 

2



 

2014.  We will continue to focus on developing our innovation pipeline, improving our enterprise leverage, driving a high performance culture and focusing on continuous improvement in all we do.”

 

About Masco

 

Headquartered in Taylor, Michigan, Masco Corporation is one of the world’s leading manufacturers of home improvement and building products, as well as a leading provider of services that include the installation of insulation and other building products.

 

The 2013 fourth 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 Tuesday, February 11, 2014 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 (855) 226-2726 (855-22MASCO) and from outside the U.S. at (706) 679-3614. Please use the conference identification number 31401362.  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 (855) 859-2056 and from outside the U.S. at (404) 537-3406. Please use the conference identification number 31401362. The telephone replay will be available approximately two hours after the end of the call and continue through February 25, 2014.

 

Safe Harbor Statement

 

Statements contained in this press release that reflect our views about our future performance constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995.  Forward-looking statements can be identified by words such as “believe,” “anticipate,” “appear,” “may,” “will,” “should,” “intend,” “plan,” “estimate,” “expect,” “assume,” “seek,” “forecast,” and similar references to future periods.  These views 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 our reliance on new home construction and home improvement, our reliance on key customers, the cost and availability of raw materials, shifts in consumer preferences and purchasing practices, our ability to improve our underperforming businesses, and our ability to maintain our competitive position in our industries.  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.  Our forward-looking statements in this press release speak only as of the date of this press release.  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.

 

The Company believes that the non-GAAP performance measures and ratios that are contained herein, used in managing the business, may provide users of this financial information with additional meaningful comparisons between current results and results in prior periods.  Non-GAAP performance measures and ratios should be viewed in addition to, and not as an alternative for, the Company’s reported results under accounting principles generally accepted in the United States.  Additional information about the Company

 

3



 

is contained in the Company’s filings with the Securities and Exchange Commission and is available on Masco’s website at www.masco.com.

 

Investor / Media Contact

 

Maria Duey

Vice President — Investor Relations &

Corporate Communications

313.792.5500

maria_duey@mascohq.com

 

# # #

 

4



 

MASCO CORPORATION

Condensed Consolidated Statements of Operations - Unaudited

For the Three Months and Twelve Months Ended December 31, 2013 and 2012

 

(in millions, except per common share data)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

December 31,

 

December 31,

 

 

 

2013

 

2012

 

2013

 

2012

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

1,998

 

$

1,831

 

$

8,173

 

$

7,495

 

Cost of sales

 

1,467

 

1,380

 

5,918

 

5,539

 

Gross profit

 

531

 

451

 

2,255

 

1,956

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

390

 

375

 

1,582

 

1,535

 

Charge for litigation settlements, net

 

 

3

 

 

77

 

Impairment charges for goodwill and other intangible assets

 

 

42

 

 

42

 

Operating profit

 

141

 

31

 

673

 

302

 

 

 

 

 

 

 

 

 

 

 

Other income (expense), net

 

(74

)

(61

)

(250

)

(251

)

Gains from financial investments, net

 

3

 

4

 

11

 

22

 

Income (loss) from continuing operations before income taxes

 

70

 

(26

)

434

 

73

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

20

 

37

 

111

 

91

 

Income (loss) from continuing operations

 

50

 

(63

)

323

 

(18

)

 

 

 

 

 

 

 

 

 

 

Income (loss) from discontinued operations, net

 

6

 

(17

)

(10

)

(61

)

Net income (loss)

 

56

 

(80

)

313

 

(79

)

 

 

 

 

 

 

 

 

 

 

Less: Net income attributable to non-controlling interest

 

11

 

7

 

41

 

35

 

Net income (loss) attributable to Masco Corporation

 

$

45

 

$

(87

)

$

272

 

$

(114

)

 

 

 

 

 

 

 

 

 

 

Income (loss) per common share attributable to Masco Corporation (diluted):

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

$

0.11

 

$

(0.20

)

$

0.78

 

$

(0.16

)

Income (loss) from discontinued operations, net

 

0.02

 

(0.05

)

(0.03

)

(0.17

)

Net income (loss)

 

$

0.12

 

$

(0.25

)

$

0.76

 

$

(0.33

)

 

 

 

 

 

 

 

 

 

 

Average diluted common shares outstanding

 

352

 

349

 

352

 

349

 

 

 

 

 

 

 

 

 

 

 

Amounts attributable to Masco Corporation:

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

$

39

 

$

(70

)

$

282

 

$

(53

)

Income (loss) from discontinued operations, net

 

6

 

(17

)

(10

)

(61

)

Net income (loss) attributable to Masco Corporation

 

$

45

 

$

(87

)

$

272

 

$

(114

)

 

Historical information is available on our website.

 



 

MASCO CORPORATION

Exhibit A: Reconciliations - Unaudited

For the Three Months and Twelve Months Ended December 31, 2013 and 2012

 

(in millions, except per common share data)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

December 31,

 

December 31,

 

 

 

2013

 

2012

 

2013

 

2012

 

Gross Profit and Operating Profit Reconciliations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

1,998

 

$

1,831

 

$

8,173

 

$

7,495

 

 

 

 

 

 

 

 

 

 

 

Gross profit, as reported

 

$

531

 

$

451

 

$

2,255

 

$

1,956

 

 

 

 

 

 

 

 

 

 

 

Rationalization charges

 

10

 

27

 

33

 

50

 

Other Specialty Products - warranty

 

 

 

 

12

 

 

 

 

 

 

 

 

 

 

 

Gross profit, as adjusted

 

$

541

 

$

478

 

$

2,288

 

$

2,018

 

 

 

 

 

 

 

 

 

 

 

Gross margin, as reported

 

26.6

%

24.6

%

27.6

%

26.1

%

Gross margin, as adjusted

 

27.1

%

26.1

%

28.0

%

26.9

%

 

 

 

 

 

 

 

 

 

 

Operating profit, as reported

 

$

141

 

$

31

 

$

673

 

$

302

 

 

 

 

 

 

 

 

 

 

 

Rationalization charges

 

12

 

30

 

48

 

75

 

Impairment of goodwill and other intangible assets

 

 

42

 

 

42

 

Charge for litigation settlements, net

 

 

3

 

 

77

 

Gain from sales of fixed assets

 

 

(3

)

 

(8

)

Other Specialty Products - warranty

 

 

 

 

12

 

 

 

 

 

 

 

 

 

 

 

Operating profit, as adjusted

 

$

153

 

$

103

 

$

721

 

$

500

 

 

 

 

 

 

 

 

 

 

 

Operating margin, as reported

 

7.1

%

1.7

%

8.2

%

4.0

%

Operating margin, as adjusted

 

7.7

%

5.6

%

8.8

%

6.7

%

 

 

 

 

 

 

 

 

 

 

Earnings Per Common Share Reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes, as reported

 

$

70

 

$

(26

)

$

434

 

$

73

 

 

 

 

 

 

 

 

 

 

 

Rationalization charges

 

12

 

30

 

48

 

75

 

Currency translation expense - Masco Denmark

 

18

 

 

18

 

 

Gains from financial investments, net

 

(3

)

(4

)

(11

)

(22

)

Charge for litigation settlements, net

 

 

3

 

 

77

 

Impairment of goodwill and other intangible assets

 

 

42

 

 

42

 

Gain from sales of fixed assets

 

 

(3

)

 

(8

)

Other Specialty Products - warranty

 

 

 

 

12

 

Interest carry costs

 

 

 

 

7

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income taxes, as adjusted

 

97

 

42

 

489

 

256

 

 

 

 

 

 

 

 

 

 

 

Tax at 36% rate

 

(35

)

(15

)

(176

)

(92

)

 

 

 

 

 

 

 

 

 

 

Less: Net income attributable to noncontrolling interest

 

11

 

7

 

41

 

35

 

 

 

 

 

 

 

 

 

 

 

Net income, as adjusted

 

$

51

 

$

20

 

$

272

 

$

129

 

 

 

 

 

 

 

 

 

 

 

Income per common share, as adjusted

 

$

0.15

 

$

0.06

 

$

0.77

 

$

0.37

 

 

 

 

 

 

 

 

 

 

 

Average diluted common shares outstanding

 

352

 

349

 

352

 

349

 

 

Historical information is available on our website.

 



 

MASCO CORPORATION

Condensed Consolidated Balance Sheets and

Other Financial Data - Unaudited

(dollars in millions)

 

 

 

December 31,

 

December 31,

 

Balance Sheet

 

2013

 

2012

 

Assets

 

 

 

 

 

Current Assets:

 

 

 

 

 

Cash and cash investments

 

$

1,223

 

$

1,040

 

Short-term bank deposits

 

321

 

311

 

Receivables

 

1,004

 

933

 

Inventories

 

765

 

726

 

Prepaid expenses and other

 

155

 

107

 

Assets held for sale

 

 

100

 

Total Current Assets

 

3,468

 

3,217

 

Property and equipment, net

 

1,252

 

1,326

 

Goodwill

 

1,903

 

1,894

 

Other intangible assets, net

 

149

 

151

 

Other assets

 

161

 

184

 

Assets held for sale

 

 

103

 

Total Assets

 

$

6,933

 

$

6,875

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Accounts payable

 

$

902

 

$

788

 

Notes payable

 

6

 

206

 

Accrued liabilities

 

874

 

823

 

Short-term liabilities held for sale

 

 

45

 

Total Current Liabilities

 

1,782

 

1,862

 

Long-term debt

 

3,421

 

3,422

 

Deferred income taxes and other

 

967

 

1,053

 

Long-term liabilities held for sale

 

 

4

 

Total Liabilities

 

6,170

 

6,341

 

Equity

 

763

 

534

 

Total Liabilities and Equity

 

$

6,933

 

$

6,875

 

 

 

 

As of

 

 

 

December 31,

 

December 31,

 

Other Financial Data

 

2013

 

2012

 

Working Capital Days

 

 

 

 

 

Receivable days

 

46

 

47

 

Inventory days

 

49

 

52

 

Payable days

 

67

 

66

 

Working capital

 

$

867

 

$

938

 

Working capital as a % of sales (LTM)

 

10.6

%

12.1

%

 

Historical information is available on our website.

 



 

MASCO CORPORATION

Condensed Consolidated Statement of Cash Flows

and Other Data - Unaudited

(dollars in millions)

 

 

 

December 31,

 

December 31,

 

 

 

2013

 

2012

 

Cash Flows From (For) Operating Activities:

 

 

 

 

 

Cash provided by operating activities

 

$

607

 

$

245

 

Working capital changes

 

38

 

36

 

Net cash from operating activities

 

645

 

281

 

 

 

 

 

 

 

Cash Flows From (For) Financing Activities:

 

 

 

 

 

Purchase of Company common stock

 

(35

)

(8

)

Cash dividends paid

 

(107

)

(107

)

Dividend paid to noncontrolling interest

 

(34

)

(40

)

Credit Agreement costs

 

(4

)

 

Debt, net

 

(202

)

(421

)

Net cash for financing activities

 

(382

)

(576

)

 

 

 

 

 

 

Cash Flows From (For) Investing Activities:

 

 

 

 

 

Capital expenditures

 

(126

)

(119

)

Other, net

 

49

 

90

 

Net cash for investing activities

 

(77

)

(29

)

 

 

 

 

 

 

Effects of exchange rate changes on cash and cash investments

 

(3

)

11

 

 

 

 

 

 

 

Cash and Cash Investments:

 

 

 

 

 

Increase (decrease) for the year

 

183

 

(313

)

At January 1

 

1,040

 

1,353

 

At December 31

 

$

1,223

 

$

1,040

 

 

 

 

As of December 31,

 

 

 

2013

 

2012

 

Liquidity

 

 

 

 

 

Cash and cash investments

 

$

1,223

 

$

1,040

 

Short-term bank deposits

 

321

 

311

 

Total Liquidity

 

$

1,544

 

$

1,351

 

 

Historical information is available on our website.

 



 

MASCO CORPORATION

Segment Data - Unaudited

For the Three Months and Twelve Months Ended December 31, 2013 and 2012

(dollars in millions)

 

 

 

Three Months Ended

 

 

 

Twelve Months Ended

 

 

 

 

 

December 31,

 

 

 

December 31,

 

 

 

 

 

2013

 

2012

 

Change

 

2013

 

2012

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cabinets and Related Products

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

251

 

$

230

 

9

%

$

1,014

 

$

939

 

8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating loss, as reported

 

$

(6

)

$

(40

)

 

 

$

(10

)

$

(89

)

 

 

Operating margin, as reported

 

-2.4

%

-17.4

%

 

 

-1.0

%

-9.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rationalization charges

 

2

 

9

 

 

 

6

 

18

 

 

 

Accelerated depreciation related to plant closures

 

 

14

 

 

 

6

 

16

 

 

 

Operating (loss) profit, as adjusted

 

(4

)

(17

)

 

 

2

 

(55

)

 

 

Operating margin, as adjusted

 

-1.6

%

-7.4

%

 

 

0.2

%

-5.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

7

 

11

 

 

 

35

 

41

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA, as adjusted

 

$

3

 

$

(6

)

 

 

$

37

 

$

(14

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plumbing Products

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

799

 

$

739

 

8

%

$

3,183

 

$

2,955

 

8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit, as reported

 

$

88

 

$

65

 

 

 

$

394

 

$

307

 

 

 

Operating margin, as reported

 

11.0

%

8.8

%

 

 

12.4

%

10.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rationalization charges

 

8

 

5

 

 

 

21

 

13

 

 

 

Accelerated depreciation related to plant closures

 

1

 

2

 

 

 

3

 

12

 

 

 

Operating profit, as adjusted

 

97

 

72

 

 

 

418

 

332

 

 

 

Operating margin, as adjusted

 

12.1

%

9.7

%

 

 

13.1

%

11.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

16

 

13

 

 

 

61

 

57

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA, as adjusted

 

$

113

 

$

85

 

 

 

$

479

 

$

389

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Installation and Other Services

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

373

 

$

323

 

15

%

$

1,412

 

$

1,209

 

17

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit (loss), as reported

 

$

15

 

$

6

 

 

 

$

37

 

$

(19

)

 

 

Operating margin, as reported

 

4.0

%

1.9

%

 

 

2.6

%

-1.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rationalization charges

 

 

 

 

 

1

 

1

 

 

 

Operating profit (loss), as adjusted

 

15

 

6

 

 

 

38

 

(18

)

 

 

Operating margin, as adjusted

 

4.0

%

1.9

%

 

 

2.7

%

-1.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

7

 

8

 

 

 

28

 

30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA, as adjusted

 

$

22

 

$

14

 

 

 

$

66

 

$

12

 

 

 

 

Historical information is available on our website.

 



 

MASCO CORPORATION

Segment Data - Unaudited

For the Three Months and Twelve Months Ended December 31, 2013 and 2012

(dollars in millions)

 

 

 

Three Months Ended

 

 

 

Twelve Months Ended

 

 

 

 

 

December 31,

 

 

 

December 31,

 

 

 

 

 

2013

 

2012

 

Change

 

2013

 

2012

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Decorative Architectural Products

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

408

 

$

386

 

6

%

$

1,927

 

$

1,818

 

6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit, as reported

 

$

65

 

$

65

 

 

 

$

351

 

$

329

 

 

 

Operating margin, as reported

 

15.9

%

16.8

%

 

 

18.2

%

18.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rationalization charges

 

1

 

 

 

 

2

 

 

 

 

Operating profit, as adjusted

 

66

 

65

 

 

 

353

 

329

 

 

 

Operating margin, as adjusted

 

16.2

%

16.8

%

 

 

18.3

%

18.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

4

 

3

 

 

 

16

 

15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA, as adjusted

 

$

70

 

$

68

 

 

 

$

369

 

$

344

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Specialty Products

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

167

 

$

153

 

9

%

$

637

 

$

574

 

11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit (loss), as reported

 

$

9

 

$

(35

)

 

 

$

35

 

$

(31

)

 

 

Operating margin, as reported

 

5.4

%

-22.9

%

 

 

5.5

%

-5.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rationalization charges

 

 

 

 

 

2

 

1

 

 

 

Accelerated depreciation related to plant closures

 

 

 

 

 

4

 

 

 

 

Impairment of goodwill and other intangible assets

 

 

42

 

 

 

 

42

 

 

 

Warranty

 

 

 

 

 

 

12

 

 

 

Operating profit, as adjusted

 

9

 

7

 

 

 

41

 

24

 

 

 

Operating margin, as adjusted

 

5.4

%

4.6

%

 

 

6.4

%

4.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

5

 

5

 

 

 

19

 

21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA, as adjusted

 

$

14

 

$

12

 

 

 

$

60

 

$

45

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

1,998

 

$

1,831

 

9

%

$

8,173

 

$

7,495

 

9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit, as reported - segment

 

$

171

 

$

61

 

 

 

$

807

 

$

497

 

 

 

General corporate expense, net (GCE)

 

(30

)

(30

)

 

 

(134

)

(126

)

 

 

Gain from sales of fixed assets

 

 

3

 

 

 

 

8

 

 

 

Charge for litigation settlements, net

 

 

(3

)

 

 

 

(77

)

 

 

Operating profit, as reported

 

141

 

31

 

 

 

673

 

302

 

 

 

Operating margin, as reported

 

7.1

%

1.7

%

 

 

8.2

%

4.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rationalization charges - segment

 

11

 

14

 

 

 

32

 

33

 

 

 

Accelerated depreciation - segment

 

1

 

16

 

 

 

13

 

28

 

 

 

Rationalization charges - GCE

 

 

 

 

 

3

 

14

 

 

 

Gain from sales of fixed assets

 

 

(3

)

 

 

 

(8

)

 

 

Charge for litigation settlements, net

 

 

3

 

 

 

 

77

 

 

 

Impairment of goodwill and other intangible assets

 

 

42

 

 

 

 

42

 

 

 

Other Specialty Products - warranty

 

 

 

 

 

 

12

 

 

 

Operating profit, as adjusted

 

153

 

103

 

 

 

721

 

500

 

 

 

Operating margin, as adjusted

 

7.7

%

5.6

%

 

 

8.8

%

6.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization - segment

 

39

 

40

 

 

 

159

 

164

 

 

 

Depreciation and amortization - non-operating

 

3

 

1

 

 

 

12

 

11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA, as adjusted

 

$

195

 

$

144

 

 

 

$

892

 

$

675

 

 

 

 

Historical information is available on our website.

 



 

MASCO CORPORATION

North American and International Data - Unaudited

For the Three Months and Twelve Months Ended December 31, 2013 and 2012

(dollars in millions)

 

 

 

Three Months Ended

 

 

 

Twelve Months Ended

 

 

 

 

 

December 31,

 

 

 

December 31,

 

 

 

 

 

2013

 

2012

 

Change

 

2013

 

2012

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North American

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

1,603

 

$

1,475

 

9

%

$

6,634

 

$

6,046

 

10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit, as reported

 

$

131

 

$

35

 

 

 

$

649

 

$

360

 

 

 

Operating margin, as reported

 

8.2

%

2.4

%

 

 

9.8

%

6.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rationalization charges

 

11

 

10

 

 

 

25

 

25

 

 

 

Accelerated depreciation related to plant closures

 

1

 

14

 

 

 

9

 

25

 

 

 

Impairment of goodwill and other intangible assets

 

 

42

 

 

 

 

42

 

 

 

Other Specialty Products - warranty

 

 

 

 

 

 

12

 

 

 

Operating profit, as adjusted

 

143

 

101

 

 

 

683

 

464

 

 

 

Operating margin, as adjusted

 

8.9

%

6.8

%

 

 

10.3

%

7.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

29

 

33

 

 

 

119

 

129

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA, as adjusted

 

$

172

 

$

134

 

 

 

$

802

 

$

593

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

395

 

$

356

 

11

%

$

1,539

 

$

1,449

 

6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit, as reported

 

$

40

 

$

26

 

 

 

$

158

 

$

137

 

 

 

Operating margin, as reported

 

10.1

%

7.3

%

 

 

10.3

%

9.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rationalization charges

 

 

4

 

 

 

7

 

8

 

 

 

Accelerated depreciation related to plant closures

 

 

2

 

 

 

4

 

3

 

 

 

Operating profit, as adjusted

 

40

 

32

 

 

 

169

 

148

 

 

 

Operating margin, as adjusted

 

10.1

%

9.0

%

 

 

11.0

%

10.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

10

 

7

 

 

 

40

 

35

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA, as adjusted

 

$

50

 

$

39

 

 

 

$

209

 

$

183

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

1,998

 

$

1,831

 

9

%

$

8,173

 

$

7,495

 

9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit, as reported - segment

 

$

171

 

$

61

 

 

 

$

807

 

$

497

 

 

 

General corporate expense, net (GCE)

 

(30

)

(30

)

 

 

(134

)

(126

)

 

 

Gain from sales of fixed assets

 

 

3

 

 

 

 

8

 

 

 

Charge for litigation settlements, net

 

 

(3

)

 

 

 

(77

)

 

 

Operating profit, as reported

 

141

 

31

 

 

 

673

 

302

 

 

 

Operating margin, as reported

 

7.1

%

1.7

%

 

 

8.2

%

4.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rationalization charges - segment

 

11

 

14

 

 

 

32

 

33

 

 

 

Accelerated depreciation - segment

 

1

 

16

 

 

 

13

 

28

 

 

 

Rationalization charges - GCE

 

 

 

 

 

3

 

14

 

 

 

Gain from sales of fixed assets

 

 

(3

)

 

 

 

(8

)

 

 

Charge for litigation settlements, net

 

 

3

 

 

 

 

77

 

 

 

Impairment of goodwill and other intangible assets

 

 

42

 

 

 

 

42

 

 

 

Other Specialty Products - warranty

 

 

 

 

 

 

12

 

 

 

Operating profit, as adjusted

 

153

 

103

 

 

 

721

 

500

 

 

 

Operating margin, as adjusted

 

7.7

%

5.6

%

 

 

8.8

%

6.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization - segment

 

39

 

40

 

 

 

159

 

164

 

 

 

Depreciation and amortization - non-operating

 

3

 

1

 

 

 

12

 

11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA, as adjusted

 

$

195

 

$

144

 

 

 

$

892

 

$

675

 

 

 

 

Historical information is available on our website.