EX-99.1 2 a20161108earningsrelease.htm EXHIBIT 99.1 2016.11.08 Earnings Release

Exhibit 99.1


                                masonitelogoa04.jpg
Contact: Joanne Freiberger
Vice President and Treasurer
813-739-1808
investorrelations@masonite.com

MASONITE INTERNATIONAL CORPORATION REPORTS
2016 THIRD QUARTER RESULTS

(Tampa, FL, November 8, 2016) - Masonite International Corporation ("Masonite" or "the Company") (NYSE: DOOR) today announced results for the three and nine months ended October 2, 2016.

Executive Summary
Net sales increased $13.9 million, or 3% compared to the third quarter of 2015, to $489.6 million. Excluding foreign exchange, net sales would have increased 5%. Excluding foreign exchange and adjusting for the sale of MAL1, net sales would have increased 8%.
Net income attributable to Masonite increased $48.3 million to $32.0 million in the third quarter of 2016.
Adjusted EBITDA2 increased $14.6 million, or 29%, to $65.1 million. Adjusted EBITDA margin2 increased to 13.3% in the third quarter of 2016.
Diluted earnings per share of $1.03 compares to $(0.54) in the third quarter of 2015.
Adjusted earnings per diluted share2 of $0.89 compares to $0.62 in the third quarter of 2015.
In the third quarter of 2016, Masonite repurchased $44 million of shares.
Announced a restructuring plan to close one manufacturing facility as part of the transformation plan for our Architectural business segment.


“We delivered our tenth consecutive quarter of double digit adjusted EBITDA growth with positive performance in all three reportable segments. At 12.9%, our year to date adjusted EBITDA margin is the highest it has been since 2009,” said Fred Lynch, President and CEO. “Our strategic initiatives and purposeful investments are reflected in our solid performance.”


1 Masonite (Africa) Limited (MAL) was deconsolidated in 4Q15 and subsequently divested in 3Q16
2 See "Non-GAAP Financial Measure and Related Information" for definition and reconciliation of non-GAAP measures.



Third Quarter 2016 Discussion
Net sales increased 3% to $490 million in the third quarter of 2016, from $476 million in the comparable period of 2015. The increase was primarily due to a 4% increase in sales volumes and 1% improvement in average unit price, which offset 2% of negative foreign exchange. In addition to the foreign exchange impact, net sales in the prior year period included $13 million from MAL. Adjusting for those sales in the prior year period, net sales would have increased 8%.

North American Residential net sales were $338 million, an 11% increase over the third quarter of 2015, driven primarily by a 13% increase in sales volume, which was offset partially by 2% lower average unit price due to continued relative strength in the interior door category, which carries lower average selling prices.
Europe net sales were $70 million, an 11% decrease from the third quarter of 2015, due to 12% of negative foreign exchange. Average unit price increased 11% due to continued strength at Door Stop International, which specializes in entry door systems, largely offset by a decline in volume and components sales related to new housing market uncertainty post Brexit.
Architectural net sales were $77 million, a 3% increase over the third quarter of 2015, driven primarily by a 5% improvement in average unit price partially offset by a 3% decline in sales volume.

Total company gross profit increased 19% to $104 million in the third quarter of 2016, from $88 million in the third quarter of 2015. Gross profit margin increased 280 basis points to 21.2%, primarily due to the favorable impact of volume leverage on our fixed costs, higher average unit prices and lower commodities costs.

Selling, general and administrative expenses (SG&A) increased 6% to $63 million in the third quarter of 2016 and SG&A as a percentage of net sales was 12.9%, a 40 basis point increase versus the comparable year period. The increase in SG&A was largely attributable to higher personnel costs, including wage inflation and an increase in share based compensation expense of $1.9 million. These increases were partially offset by the favorable impact of foreign exchange and a decrease related to the timing of marketing expenses.

Net income (loss) attributable to Masonite increased $48.3 million to $32.0 million in the third quarter of 2016, from $(16.3) million in the comparable 2015 period. Adjusted EBITDA increased 29% to $65.1 million for the third quarter of 2016, from $50.5 million in the comparable 2015 period.

Diluted earnings per share were $1.03 in the third quarter of 2016 compared to $(0.54) in the comparable 2015 period. Adjusted earnings per share were $0.89 in the third quarter of 2016 compared to $0.62 in the comparable 2015 period. Adjusted earnings per share excludes a $4.4 million gain net of tax in the third quarter of 2016 related to the sale of our MAL business and a $35.9 million loss net of tax in the third quarter of 2015 related to the sale of our France business.

Masonite repurchased approximately 657,000 shares of stock in the third quarter, at an average price of $66.36, or $44 million.


 

2



Year to date 2016
Net sales increased 8% to $1,493 million in the first nine months of 2016, from $1,387 million in the comparable period of 2015. The increase was primarily due to a 7% increase in sales volumes and a 3% improvement in average unit prices, partially offset by 2% of negative foreign exchange. In addition to the foreign exchange impact, net sales in the prior year period included $37 million from MAL. Adjusting for those sales in the prior year period, net sales would have increased 13%.

North American Residential net sales were $1,015 million, a 15% increase over the first nine months of 2015, driven by a 15% increase in sales volumes. A 2% improvement in average unit price was offset by 2% negative foreign exchange. Excluding the unfavorable impact of foreign exchange, net sales would have increased by 17%.
Europe net sales were $233 million, a 1% increase over the first nine months of 2015. Excluding foreign exchange, net sales would have increased 7%, driven primarily by a 9% improvement in average unit price partially offset by 2% lower sales volumes.
Architectural net sales were $228 million, a 5% increase over the first nine months of 2015, driven primarily by 2% higher average unit price and 2% higher sales volumes.

Total company gross profit increased 22% to $313 million in the first nine months of 2016, from $256 million in the first nine months of 2015. Gross profit margin increased 250 basis points to 21.0% due to increases in average unit price, lower commodities costs and favorable fixed cost leverage due to higher volumes.

Selling, general and administrative expenses (SG&A) increased 12% to $197 million in the first nine months of 2016 and SG&A as a percentage of net sales was 13.2%, a 50 basis point increase versus the comparable year period. Higher SG&A was driven primarily by higher personnel costs and professional fees related to investments in IT and digital initiatives, as well as higher share based compensation expense. Foreign exchange benefited SG&A expense by 2%.

Net income (loss) attributable to Masonite increased $117.1 million to $83.2 million in the first nine months of 2016, from $(33.9) million in the comparable 2015 period. Included in net income is the previously disclosed $6.5 million income tax benefit in 2016 as a result of adopting new accounting standards related to share based compensation transactions.

Adjusted EBITDA increased 30% to $191.9 million for the first nine months of 2016, from $147.4 million in the comparable 2015 period.

Diluted earnings per share were $2.66 in the first nine months of 2016 compared to $(1.12) in the comparable 2015 period. Adjusted earnings per share increased $1.52 to $2.47 in the first nine months of 2016 compared to $0.95 in the comparable 2015 period.

During the first nine months of 2016 the company repurchased approximately 1.4 million shares of stock at an average price of $65.75, or $90 million.

Subsequent Event
Today we announced a plan to close one manufacturing facility in the Architectural segment which is expected to improve our cost structure, expand operational efficiencies and align our plant optimization portfolio. These actions are expected to be completed by the end of third quarter of 2017. Total restructuring costs associated with the restructuring plan are expected to be $4.8 million.



3



Masonite Earnings Conference Call
The Company will hold a live conference call and webcast on November 9, 2016. The live audio webcast will begin at 9:00 a.m. ET and can be accessed, together with the presentation, on the Masonite website under Investors > Events & Presentations. The webcast can be directly accessed at: Q3'16 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 U.S.).

A telephone replay will be available approximately one hour following completion of the call through November 23, 2016. To access the replay, please dial 877-660-6853 (in the U.S.) or 201-612-7415 (outside U.S.). Enter Conference ID #13647756.

About Masonite
Masonite International Corporation is a leading global designer and manufacturer of interior and exterior doors for the residential new construction; the residential repair, renovation and remodeling; and the non-residential building construction markets. Since 1925, Masonite has provided its customers with innovative products and superior service at compelling values. Masonite currently serves more than 8,000 customers in 73 countries. Additional information about Masonite can be found at www.masonite.com.


4



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 long term growth framework, housing and other markets, and the effects of our strategic initiatives. When used in this press release, such forward-looking statements may be identified by the use of such words as “may,” “might,” “could,” “will,” “would,” “should,” “expect,” “believes,” “outlook,” “predict,” “forecast,” “objective,” “remain,” “anticipate,” “estimate,” “potential,” “continue,” “plan,” “project,” “targeting,” or the negative of these terms or other similar terminology.

Forward-looking statements involve significant known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Masonite, or industry results, to be materially different from any future plans, goals, targets, objectives, results, performance or achievements expressed or implied by such forward-looking statements. As a result, such forward-looking statements should not be read as guarantees of future performance or results, should not be unduly relied upon, and will not necessarily be accurate indications of whether or not such results will be achieved. Factors that could cause actual results to differ materially from the results discussed in the forward-looking statements include, but are not limited to, general economic, market and business conditions; levels of residential new construction, residential repair, renovation and remodeling and non-residential building construction activity; the United Kingdom referendum to exit the European Union; competition; our ability to successfully implement our business strategy; our ability to manage our operations including integrating our recent acquisitions and companies or assets we acquire in the future; our ability to generate sufficient cash flows to fund our capital expenditure requirements and to meet our debt service obligations, including our obligations under our senior notes and our senior secured asset-backed credit facility; labor relations (i.e., disruptions, strikes or work stoppages), labor costs, and availability of labor; increases in the costs of raw materials or any shortage in supplies; our ability to keep pace with technological developments; the actions by, and the continued success of, certain key customers; our ability to maintain relationships with certain customers; new contractual commitments; our ability to generate the benefits of our restructuring activities; retention of key management personnel; environmental and other government regulations; limitations on operating our business as a result of covenant restrictions under our existing and future indebtedness, including our senior notes and senior secured asset-based credit facility; and other factors publicly disclosed by the company from time to time.



5



Non-GAAP Financial Measure and Related Information
Our management reviews net sales and Adjusted EBITDA (as defined below) to evaluate segment performance and allocate resources. Net assets are not allocated to the reportable segments. Adjusted EBITDA is a non-GAAP financial measure which does not have a standardized meaning under GAAP and is unlikely to be comparable to similar measures used by other companies. Adjusted EBITDA should not be considered as an alternative to either net income or operating cash flows determined in accordance with GAAP. Additionally, Adjusted EBITDA is not intended to be a measure of free cash flow for management's discretionary use, as it does not include certain cash requirements such as interest payments, tax payments and debt service requirements. Adjusted EBITDA is defined as net income (loss) attributable to Masonite adjusted to exclude the following items: depreciation; amortization; share based compensation expense; loss (gain) on disposal of property, plant and equipment; registration and listing fees; restructuring costs; asset impairment; loss (gain) on disposal of subsidiaries; interest expense (income), net; loss on extinguishment of debt; other expense (income), net; income tax expense (benefit); loss (income) from discontinued operations, net of tax; and net income (loss) attributable to non-controlling interest. This definition of Adjusted EBITDA differs from the definitions of EBITDA contained in the indenture governing the 2023 Notes and the credit agreement governing the ABL Facility. Adjusted EBITDA, as calculated under our ABL Facility or senior notes would also include, among other things, additional add-backs for amounts related to: cost savings projected by us in good faith to be realized as a result of actions taken or expected to be taken prior to or during the relevant period; fees and expenses in connection with certain plant closures and layoffs; and the amount of any restructuring charges, integration costs or other business optimization expenses or reserve deducted in the relevant period in computing consolidated net income, including any one-time costs incurred in connection with acquisitions. The tables below sets forth a reconciliation of Adjusted EBITDA to net income (loss) attributable to Masonite for the periods indicated. We are not providing a quantitative reconciliation of our Adjusted EBITDA outlook to the corresponding GAAP information because the GAAP measures that we exclude from our Adjusted EBITDA outlook are difficult to predict and are primarily dependent on future uncertainties.
Adjusted 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 asset impairment charges, loss (gain) on disposal of subsidiaries and loss on extinguishment of debt, net of related tax expense (benefit). Management uses this measure to evaluate the overall performance of the Company and believes this measure provides investors with helpful supplemental information regarding the underlying performance of the Company from period to period. This measure may be inconsistent with similar measures presented by other companies.



6



MASONITE INTERNATIONAL CORPORATION
SALES RECONCILIATION AND ADJUSTED EBITDA BY REPORTABLE SEGMENT
(In millions of U.S. dollars)
(Unaudited)
 
North American Residential
 
Europe
 
Architectural
 
Corporate & Other
 
Total
 
% Change
Third quarter 2015 net sales
$
304.2

 
$
78.4

 
$
74.1

 
$
19.0

 
$
475.7

 
 
Volume*
40.2

 
(4.9
)
 
(2.2
)
 
(13.3
)
 
19.8

 
4.2
 %
Average unit price
(5.2
)
 
8.5

 
3.8

 

 
7.1

 
1.5
 %
Components and other

 
(2.4
)
 
0.9

 
(0.4
)
 
(1.9
)
 
(0.4
)%
Foreign exchange
$
(1.5
)
 
$
(9.6
)
 
$

 
$

 
$
(11.1
)
 
(2.3
)%
Third quarter 2016 net sales
$
337.7

 
$
70.0

 
$
76.6

 
$
5.3

 
$
489.6

 

Year over year growth, net sales
11.0
%
 
(10.7
)%
 
3.4
%
 
(72.1
)%
 
2.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Third quarter 2015 Adjusted EBITDA
$
43.9

 
$
5.9

 
$
6.1

 
$
(5.5
)
 
$
50.5

 
 
Third quarter 2016 Adjusted EBITDA
55.6

 
7.9

 
7.2

 
(5.7
)
 
65.1

 

Year over year growth, Adjusted EBITDA
26.7
%
 
33.9
 %
 
18.0
%
 
nm
 
28.9
%
 
 

 
North American Residential
 
Europe
 
Architectural
 
Corporate & Other
 
Total
 
% Change
Year to date 2015 net sales
$
882.3

 
$
230.5

 
$
217.0

 
$
56.7

 
$
1,386.5

 
 
Volume*
132.8

 
(3.6
)
 
4.1

 
(38.9
)
 
94.4

 
6.8
 %
Average unit price
14.8

 
21.4

 
5.1

 

 
41.3

 
3.0
 %
Components and other
0.6

 
(0.9
)
 
2.8

 
0.1

 
2.7

 
0.2
 %
Foreign exchange
$
(15.9
)
 
$
(14.6
)
 
$
(1.3
)
 
$
(0.2
)
 
$
(32.0
)
 
(2.3
)%
Year to date 2016 net sales
$
1,014.6

 
$
232.8

 
$
227.7

 
$
17.7

 
$
1,492.9

 

Year over year growth, net sales
15.0
%
 
1.0
%
 
4.9
%
 
(68.8
)%
 
7.7
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year to date 2015 Adjusted EBITDA
$
119.9

 
$
20.6

 
$
18.4

 
$
(11.5
)
 
$
147.4

 
 
Year to date 2016 Adjusted EBITDA
162.7

 
30.9

 
19.3

 
(21.0
)
 
191.9

 

Year over year growth, Adjusted EBITDA
35.7
%
 
50.0
%
 
4.9
%
 
nm
 
30.2
%
 
 
(*) Includes the incremental impact of acquisitions and dispositions.


7



MASONITE INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of U.S. dollars, except share and per share amounts)
(Unaudited)
 
Three Months Ended
 
Nine Months Ended
 
October 2,
2016
 
September 27,
2015
 
October 2,
2016
 
September 27,
2015
Net sales
$
489,647

 
$
475,650

 
$
1,492,937

 
$
1,386,543

Cost of goods sold
385,845

 
388,141

 
1,179,786

 
1,130,691

Gross profit
103,802

 
87,509

 
313,151

 
255,852

Gross profit as a % of net sales
21.2
%
 
18.4
%
 
21
%
 
18.5
%
 
 
 
 
 
 
 
 
Selling, general and administration expenses
63,017

 
59,590

 
196,876

 
176,569

Selling, general and administration expenses as a % of net sales
12.9
%
 
12.5
%
 
13.2
%
 
12.7
%
 
 
 
 
 
 
 
 
Restructuring costs
215

 
1,139

 
131

 
4,483

Asset impairment

 
9,439

 

 
9,439

Loss (gain) on disposal of subsidiaries
(5,144
)
 
29,721

 
(6,575
)
 
29,721

Operating income (loss)
45,714

 
(12,380
)
 
122,719

 
35,640

Interest expense (income), net
6,985

 
7,179

 
21,150

 
25,719

Loss on extinguishment of debt

 

 

 
28,046

Other expense (income), net
(1,199
)
 
(1,720
)
 
(1,214
)
 
(3,539
)
Income (loss) from continuing operations before income tax expense (benefit)
39,928

 
(17,839
)
 
102,783

 
(14,586
)
Income tax expense (benefit)
6,526

 
(2,510
)
 
15,591

 
15,767

Income (loss) from continuing operations
33,402

 
(15,329
)
 
87,192

 
(30,353
)
Income (loss) from discontinued operations, net of tax
(236
)
 
(192
)
 
(608
)
 
(661
)
Net income (loss)
33,166

 
(15,521
)
 
86,584

 
(31,014
)
Less: net income (loss) attributable to non-controlling interest
1,157

 
762

 
3,392

 
2,879

Net income (loss) attributable to Masonite
$
32,009

 
$
(16,283
)
 
$
83,192

 
$
(33,893
)
 
 
 
 
 
 
 
 
Earnings (loss) per common share attributable to Masonite:
 
 
 
 
 
 
 
Basic
$
1.05

 
$
(0.54
)
 
$
2.73

 
$
(1.12
)
Diluted
$
1.03

 
$
(0.54
)
 
$
2.66

 
$
(1.12
)
 
 
 
 
 
 
 
 
Earnings (loss) per common share from continuing operations attributable to Masonite:
 
 
 
 
 
 
 
Basic
$
1.06

 
$
(0.53
)
 
$
2.75

 
$
(1.10
)
Diluted
$
1.03

 
$
(0.53
)
 
$
2.68

 
$
(1.10
)
 
 
 
 
 
 
 
 
Shares used in computing basic earnings per share
30,416,648

 
30,351,707

 
30,496,404

 
30,218,023

Shares used in computing diluted earnings per share
31,173,776

 
30,351,707

 
31,257,009

 
30,218,023




8



MASONITE INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars, except share amounts)
(Unaudited)
ASSETS
October 2,
2016
 
January 3, 2016
Current assets:
 
 
 
Cash and cash equivalents
$
48,424

 
$
89,187

Restricted cash
12,196

 
12,645

Accounts receivable, net
268,532

 
224,976

Inventories, net
239,359

 
208,393

Prepaid expenses
20,811

 
21,983

Income taxes receivable
1,550

 
1,762

Total current assets
590,872

 
558,946

Property, plant and equipment, net
538,011

 
534,234

Investment in equity investees
8,532

 
18,811

Goodwill
123,646

 
128,170

Intangible assets, net
199,490

 
225,932

Long-term deferred income taxes
10,255

 
16,899

Other assets, net
17,497

 
16,157

Total assets
$
1,488,303

 
$
1,499,149

 
 
 
 
LIABILITIES AND EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
100,104

 
$
96,480

Accrued expenses
127,919

 
136,029

Income taxes payable
1,278

 
9

Total current liabilities
229,301

 
232,518

Long-term debt
470,666

 
468,856

Long-term deferred income taxes
64,613

 
98,682

Other liabilities
38,939

 
43,527

Total liabilities
803,519

 
843,583

Commitments and Contingencies
 
 
 
Equity:
 
 
 
Share capital: unlimited shares authorized, no par value, 30,055,649 and 30,427,865 shares issued and outstanding as of October 2, 2016, and January 3, 2016, respectively
656,052

 
663,600

Additional paid-in capital
228,636

 
231,363

Accumulated deficit
(87,725
)
 
(144,628
)
Accumulated other comprehensive income (loss)
(126,550
)
 
(107,948
)
Total equity attributable to Masonite
670,413

 
642,387

Equity attributable to non-controlling interests
14,371

 
13,179

Total equity
684,784

 
655,566

Total liabilities and equity
$
1,488,303

 
$
1,499,149




9


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
 
Nine Months Ended
(In thousands)
October 2,
2016
 
September 27,
2015
 
October 2,
2016
 
September 27,
2015
Net income (loss) attributable to Masonite
$
32,009

 
$
(16,283
)
 
$
83,192

 
$
(33,893
)
 
 
 
 
 
 
 
 
Add: Asset impairment

 
9,439

 

 
9,439

Add: Loss (gain) on disposal of subsidiaries
(5,144
)
 
29,721

 
(6,575
)
 
29,721

Add: Loss on extinguishment of debt

 

 

 
28,046

Tax impact of adjustments
737

 
(3,248
)
 
737

 
(3,248
)
Adjusted net income (loss) attributable to Masonite
$
27,602

 
$
19,629

 
$
77,354

 
$
30,065

 
 
 
 
 
 
 
 
Diluted earnings (loss) per common share attributable to Masonite ("EPS")
$
1.03

 
$
(0.54
)
 
$
2.66

 
$
(1.12
)
Diluted adjusted earnings (loss) per common share attributable to Masonite ("Adjusted EPS")
$
0.89

 
$
0.62

 
$
2.47

 
$
0.95

 
 
 
 
 
 
 
 
Shares used in computing diluted EPS
31,173,776

 
30,351,707

 
31,257,009

 
30,218,023

Incremental shares issuable under share compensation plans and warrants

 
1,381,610

 

 
1,405,923

Shares used in computing diluted Adjusted EPS
31,173,776

 
31,733,317

 
31,257,009

 
31,623,946

    
The weighted average number of shares outstanding utilized for the diluted EPS and diluted Adjusted EPS calculation contemplates the exercise of all currently outstanding SARs and warrants and the conversion of all RSUs. The dilutive effect of such equity awards is calculated based on the weighted average share price for each fiscal period using the treasury stock method. For any periods presented which result in a net loss, no potential common shares relating to our equity awards were included in the computation of diluted loss per share, as their effect would have been anti-dilutive given our net loss position for those periods.


10


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 October 2, 2016
(In thousands)
North American Residential
 
Europe
 
Architectural
 
Corporate & Other
 
Total
Adjusted EBITDA
$
55,648

 
$
7,933

 
$
7,229

 
$
(5,703
)
 
$
65,107

Less (plus):
 
 
 
 
 
 
 
 
 
Depreciation
7,666

 
1,952

 
2,242

 
2,135

 
13,995

Amortization
1,130

 
2,283

 
2,015

 
789

 
6,217

Share based compensation expense

 

 

 
3,412

 
3,412

Loss (gain) on disposal of property, plant and equipment
552

 
142

 
4

 

 
698

Restructuring costs

 

 

 
215

 
215

Loss (gain) on disposal of subsidiaries

 

 

 
(5,144
)
 
(5,144
)
Interest expense (income), net

 

 

 
6,985

 
6,985

Other expense (income), net

 
53

 

 
(1,252
)
 
(1,199
)
Income tax expense (benefit)

 

 

 
6,526

 
6,526

Loss (income) from discontinued operations, net of tax

 

 

 
236

 
236

Net income (loss) attributable to non-controlling interest
926

 

 

 
231

 
1,157

Net income (loss) attributable to Masonite
$
45,374

 
$
3,503

 
$
2,968

 
$
(19,836
)
 
$
32,009

 
 
 
 
 
 
 
 
 
 
Net sales to external customers
$
337,713

 
$
70,040

 
$
76,578

 
$
5,316

 
$
489,647

Adjusted EBITDA Margin
16.5
%
 
11.3
%
 
9.4
%
 
nm
 
13.3
%

 
Three Months Ended September 27, 2015
(In thousands)
North American Residential
 
Europe
 
Architectural
 
Corporate & Other
 
Total
Adjusted EBITDA
$
43,885

 
$
5,941

 
$
6,141

 
$
(5,455
)
 
$
50,512

Less (plus):
 
 
 
 
 
 
 
 
 
Depreciation
7,683

 
2,107

 
2,081

 
2,683

 
14,554

Amortization
1,261

 
2,208

 
2,015

 
774

 
6,258

Share based compensation expense

 

 

 
1,490

 
1,490

Loss (gain) on disposal of property, plant and equipment
213

 
14

 
59

 
5

 
291

Restructuring costs
2

 
219

 

 
918

 
1,139

Asset impairment

 
9,439

 

 

 
9,439

Loss (gain) on disposal of subsidiaries

 
29,721

 

 

 
29,721

Interest expense (income), net

 

 

 
7,179

 
7,179

Other expense (income), net

 
77

 

 
(1,797
)
 
(1,720
)
Income tax expense (benefit)

 

 

 
(2,510
)
 
(2,510
)
Loss (income) from discontinued operations, net of tax

 

 

 
192

 
192

Net income (loss) attributable to non-controlling interest
696

 

 

 
66

 
762

Net income (loss) attributable to Masonite
$
34,030

 
$
(37,844
)
 
$
1,986

 
$
(14,455
)
 
$
(16,283
)
 
 
 
 
 
 
 
 
 
 
Net sales to external customers
$
304,158

 
$
78,403

 
$
74,114

 
$
18,975

 
$
475,650

Adjusted EBITDA Margin
14.4
%
 
7.6
%
 
8.3
%
 
nm
 
10.6
%

11



 
Nine Months Ended October 2, 2016
(In thousands)
North American Residential
 
Europe
 
Architectural
 
Corporate & Other
 
Total
Adjusted EBITDA
$
162,689

 
$
30,890

 
$
19,332

 
$
(21,047
)
 
$
191,864

Less (plus):
 
 
 
 
 
 
 
 
 
Depreciation
23,712

 
6,508

 
6,825

 
6,333

 
43,378

Amortization
3,513

 
7,072

 
6,226

 
2,388

 
19,199

Share based compensation expense

 

 

 
11,922

 
11,922

Loss (gain) on disposal of property, plant and equipment
842

 
173

 
106

 
(31
)
 
1,090

Restructuring costs

 
21

 

 
110

 
131

Loss (gain) on disposal of subsidiaries

 
(1,431
)
 

 
(5,144
)
 
(6,575
)
Interest expense (income), net

 

 

 
21,150

 
21,150

Other expense (income), net

 
146

 

 
(1,360
)
 
(1,214
)
Income tax expense (benefit)

 

 

 
15,591

 
15,591

Loss (income) from discontinued operations, net of tax

 

 

 
608

 
608

Net income (loss) attributable to non-controlling interest
2,622

 

 

 
770

 
3,392

Net income (loss) attributable to Masonite
$
132,000

 
$
18,401

 
$
6,175

 
$
(73,384
)
 
$
83,192

 
 
 
 
 
 
 
 
 
 
Net sales to external customers
$
1,014,615

 
$
232,846

 
$
227,736

 
$
17,740

 
$
1,492,937

Adjusted EBITDA Margin
16.0
%
 
13.3
%
 
8.5
%
 
nm
 
12.9
%

 
Nine Months Ended September 27, 2015
(In thousands)
North American Residential
 
Europe
 
Architectural
 
Corporate & Other
 
Total
Adjusted EBITDA
$
119,945

 
$
20,563

 
$
18,356

 
$
(11,507
)
 
$
147,357

Less (plus):
 
 
 
 
 
 
 
 
 
Depreciation
23,560

 
5,948

 
6,078

 
8,684

 
44,270

Amortization
3,659

 
4,054

 
6,117

 
2,414

 
16,244

Share based compensation expense

 

 

 
6,975

 
6,975

Loss (gain) on disposal of property, plant and equipment
743

 
33

 
112

 
(303
)
 
585

Restructuring costs
8

 
2,414

 

 
2,061

 
4,483

Asset impairment

 
9,439

 

 

 
9,439

Loss (gain) on disposal of subsidiaries

 
29,721

 

 

 
29,721

Interest expense (income), net

 

 

 
25,719

 
25,719

Loss on extinguishment of debt

 

 

 
28,046

 
28,046

Other expense (income), net

 
205

 

 
(3,744
)
 
(3,539
)
Income tax expense (benefit)

 

 

 
15,767

 
15,767

Loss (income) from discontinued operations, net of tax

 

 

 
661

 
661

Net income (loss) attributable to non-controlling interest
2,457

 

 

 
422

 
2,879

Net income (loss) attributable to Masonite
$
89,518

 
$
(31,251
)
 
$
6,049

 
$
(98,209
)
 
$
(33,893
)
 
 
 
 
 
 
 
 
 
 
Net sales to external customers
$
882,319

 
$
230,502

 
$
217,049

 
$
56,673

 
$
1,386,543

Adjusted EBITDA Margin
13.6
%
 
8.9
%
 
8.5
%
 
nm
 
10.6
%


12