Masonite International Corporation Reports 2021 First Quarter Financial Results and Raises Annual Outlook

Masonite International Corporation (“Masonite” or “the Company”) announced results for the three months ended April 4, 2021.

Executive Summary – 1Q21 versus 1Q20

–Net sales increased 17% to $646 million versus $551 million.

–Net income attributable to Masonite increased to $47 million from $30 million.

–Diluted earnings per share increased to $1.89 from $1.19 per share and adjusted earnings per share* increased to $1.93 from $1.24.

–Adjusted EBITDA* increased to $102 million from $82 million.

–Repurchased 84,983 shares of Masonite stock in the first quarter for approximately $10 million.

“Strong residential end market demand set the backdrop for another exceptional quarter of financial performance,” said Howard Heckes, President and CEO. “These favorable market conditions, coupled with our previously implemented pricing actions, allowed us to exceed both our Net Sales and Adj. EBITDA* expectations. We achieved these results despite mounting inflationary pressure on both material costs and logistics. Our delivery of consistent financial results in this environment reinforces our belief in the organization’s ability to safely service customers and deliver our ambitious 2025 Centennial Plan.”

First Quarter 2021 Discussion

Net sales were $646 million in the first quarter of 2021, a 17% increase from $551 million in the comparable period of 2020. The increase in net sales was the result of a 14% increase in average unit price (AUP), a 2% increase due to favorable foreign exchange and a 1% increase in the sale of components and other products.

–North American Residential net sales were $477 million, a 24% increase compared to the first quarter of 2020, driven by a 17% increase in AUP, a 5% increase in base volume, a 1% increase due to favorable foreign exchange and a 1% increase in the sale of components and other products.

–Europe net sales were $89 million, a 25% increase compared to the first quarter of 2020, driven by a 9% increase due to favorable foreign exchange, a 7% increase in AUP, a 7% increase in base volume and a 2% increase in the sale of components and other products.

–Architectural net sales were $75 million, an 18% decrease compared to the first quarter of 2020, driven by a 22% decrease in base volume and a 2% decrease in the sale of components and other products, partially offset by a 5% increase in AUP and a 1% increase due to favorable foreign exchange.

Total company gross profit was $159 million in the first quarter of 2021, an increase of 18% compared to $134 million in the first quarter of 2020. Gross profit margin increased 10 basis points to 24.5%, due to higher AUP, partially offset by the impact of higher inflation and tariffs on raw materials, rising logistics costs, higher manufacturing wages and benefits and increased investment in the business.

Selling, general and administration (SG&A) expenses were $84 million in the first quarter of 2021, an increase of 4% compared to $80 million in the first quarter of 2020. The increase in SG&A was primarily due to higher personnel costs, which includes resources to support growth and incentive compensation. SG&A as a percentage of net sales was 12.9%, a 170 basis point decrease compared to the first quarter of 2020.

Net income attributable to Masonite was $47 million in the first quarter of 2021, an increase of 57% compared to $30 million in the first quarter of 2020, The increase was primarily driven by higher gross profit, partially offset by higher SG&A expenses, each as discussed above. Adjusted EBITDA* of $102 million in the first quarter of 2021 increased 25% from $82 million in the first quarter of 2020.

Diluted earnings per share were $1.89 in the first quarter of 2021 compared to $1.19 in the comparable 2020 period. Diluted adjusted earnings per share* were $1.93 in the first quarter of 2021 compared to $1.24 in the comparable 2020 period. Diluted adjusted earnings per share* excludes $1 million in charges related to our previously announced restructuring plans incurred in the first quarter of 2021, and the impact of $1 million in charges related to restructuring in the first quarter of 2020.

Updated 2021 Outlook

The Company now expects full-year 2021 net sales growth in the range of 12 to 15 percent, reflecting both robust residential demand and the expectation that current foreign exchange tailwinds may continue throughout the year.

The Company now expects 2021 Adjusted EBITDA* to be in the range of $435 million to $455 million and diluted adjusted earnings per share* of $8.00 to $8.60.

“Based on the continued strength of our residential end markets, favorable foreign exchange, and actions we are taking to offset inflation, we have raised our outlook accordingly,” Mr. Heckes continued. “While inflation presents a near term challenge, we continue to expect strong full year margin growth and we believe 2021 will be an exceptional year overall for Masonite’s growth and our commitment of delivering Doors That Do MoreTM.”

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

For the complete press release, click here.

About Masonite

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

Contact:

Joanne Freiberger – Vice President Treasurer – jfreiberger@masonite.com – (813) 739-1808

Source: Masonite International Corporation