Masonite’s Recent Financial Results a Mixed Bag

August 7th, 2019 by Tara Taffera

Masonite International Corp. announced results for the three and six months ended June 30, 2019, which show differences depending on the segment.

In the second quarter of 2019, for example, North American residential net sales were $380 million, which is flat compared to the second quarter of 2018. The bright spot, perhaps, is architectural net sales which were $97 million, a 19% increase from the second quarter of 2018.

Still, Howard Heckes, the new president and CEO, remains optimistic.

We are pleased we have driven year-on-year adjusted EBITDA margin expansion for the second consecutive quarter, despite weaker than anticipated volumes,” he said. “Since joining Masonite in early June, I have immersed myself in the business and witnessed our employees’ commitment to delivering results and this quarter is no exception. The organization is on target with previously communicated restructuring initiatives and remains focused on operational excellence.”

Commenting on the updated full year outlook, Heckes added, “As markets remain softer than anticipated, we are reducing our full year net sales outlook accordingly. While we are tightening the adjusted EBITDA range provided in our original outlook to account for this lower revenue growth, we are seeing solid execution operationally and continue to expect year-on-year adjusted EBITDA margin improvement in line with our original outlook.”

For the second quarter of 2019, net sales decreased 1% to $563 million in the second quarter of 2019, from $567 million in the comparable period of 2018. The decrease in net sales was the result of a 7% decrease in base volume, a 1% decrease due to foreign exchange and a 1% decrease in the sale of components and other products, according to the company.

Total company gross profit increased 4% to $129 million in the second quarter of 2019 compared to $124 million in the second quarter of 2018.

The company reports that it expects full-year 2019 net sales growth in the range of 0 to two percent.

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