LONDON, UK / ACCESSWIRE / December 21, 2017 / Active-Investors.com has just released a free earnings report on Masonite International Corp. (NYSE: DOOR). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=DOOR . Masonite reported its third quarter fiscal 2017 (Q3 FY17) operating results on November 07, 2017. The door maker for the housing industry outperformed top- and bottom-line expectations. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
Masonite's net sales increased 6% to $518 million in Q3 2017 from $490 million in Q3 2016. The increase in net sales was a result of a 3% increase in volume, primarily due to higher volumes in the Company's North American Residential and Europe segments, a 2% increase in average unit price and a 1% benefit from foreign exchange. Masonite's sales numbers surpassed analysts' expectations of $509.9 million.
During Q3 2017, Masonite's gross profit was essentially flat at $104 million on a y-o-y basis. The Company's gross profit margin decreased 110 basis points to 20.1%, principally due to higher materials costs and distribution inefficiencies related to maintaining customer service levels.
Masonite's selling, general, and administrative expenses (SG&A) of $59 million, down 7% on a y-o-y basis. The decline in SG&A was driven by an $8 million decrease in personnel costs, primarily due to a reduction in the Company's incentive pay accrual. This decrease was partially offset by a $2 million increase in marketing costs and $1 million of professional fees.
For Q3 2017, net income attributable to Masonite decreased to $29.48 million, or $1.000 per diluted share, compared to earnings of $32.01 million, or $1.03 per diluted share, in Q3 2016. The Company's Q3 2016 results benefited from a $5 million gain related to the sale of Masonite Africa Limited.
For Q3 2017, Masonite's adjusted earnings were $1.00 per diluted share compared to $0.89 per diluted share in Q3 2016, ahead of Wall Street's estimates of $0.92 per share. The Company's adjusted EBITDA increased 7% to $70 million in the reported quarter versus $65 million in the prior year's same quarter.
Masonite's Segment Results
During Q3 2017, the North American Residential segment's net sales jumped 8% to $364.2 million compared to $337.2 million in Q3 2016, driven by a 5% increase in volume aided by new retail business in Florida, a 1% growth in average unit price and a 1% benefit from foreign exchange related to the Canadian dollar.
For Q3 2017, the Europe segment's net sales advanced 7% to $74.8 million versus $218.6 million in Q3 2016 due to higher volumes from the merchant and contractor remodel channels. A 1% increase in Average unit price (AUP) was essentially offset by a 1% decrease in the sale of component products.
Masonite's sales from the Architectural segment totaled $74 million, reflecting a 4% decrease from Q3 2016 net sales of $76.6 million, driven by an 8% decline in sales volume which was partially offset by a 4% increase in AUP and higher components sales. The segment's sales volume declined due to higher production backlogs resulting primarily from the transition of products from the Algoma, Wisconsin plant to other sites
Cash Matters
At October 02, 2017, available liquidity totaled $323 million, including unrestricted cash and accounts receivable, purchase agreement and the Company's ABL facility. At the end of Q3 2017, the Company's total debt and net debt to trailing 12 months adjusted EBITDA were 2.5x and 1.9x, respectively.
During Q3 2017, Masonite repurchased 1.16 million shares of stock for $72 million at an average price of $62.28. The Company repurchased 1.65 million shares of stock in the first nine months for $110 million at an average price of $66.40.
Stock Performance Snapshot
December 20, 2017 - At Wednesday's closing bell, Masonite International's stock marginally rose 0.14%, ending the trading session at $72.40.
Volume traded for the day: 69.68 thousand shares.
Stock performance in the last three-month period – up 9.78%; past twelve-month period – up 12.25%; and year-to-date – up 10.03%
After yesterday's close, Masonite International's market cap was at $2.04 billion.
Price to Earnings (P/E) ratio was at 22.75.
The stock is part of the Industrial Goods sector, categorized under the General Building Materials industry. This sector was up 0.3% at the end of the session.
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