Masonite International Corp. announced results for the three months and full year ended Dec. 31, 2023.
Key takeaways
- Reported full year 2023 net sales of $2.8 billion and net income attributable to Masonite of $118 million.
- Delivered full year adjusted EBITDA of $419 million and a record high $408 million of operating cash flow.
- Enhanced portfolio of product solutions with acquisitions of Endura Products and Fleetwood during 2023.
- Subsequent to year end, announced definitive agreement under which Owens Corning will acquire all outstanding shares of Masonite for $133.00 per share in cash.
Fourth-quarter 2023
Consolidated net sales were $661 million in the fourth quarter of 2023, a 2% decrease resulting from an 11% decrease in organic volume and a 2% decrease in average unit price, partially offset by a 10% increase from acquisitions and a 1% increase from favorable foreign exchange. Total company gross profit was $151 million in the fourth quarter of 2023, an increase of 6%. Gross profit margin increased 170 basis points year over year to 22.9%, due to effective price-cost management, which was enough to offset the impact of lower volumes and inflation on wages, benefits and overhead.
Full-year 2023
Consolidated net sales were $2,831 million in the year ended Dec. 31, 2023, a 2% decrease resulting from a 14% decrease in organic volume and a 1% decrease in component sales, partially offset by a 9% increase from acquisitions and a 4% increase in AUP. Total company gross profit was $666 million in the year ended December 31, 2023, a decrease of 1%. Gross profit margin increased 20 basis points to 23.5%, as higher AUP and cost savings initiatives were enough to offset the impact of lower volumes and inflation on wages, benefits and overhead.
Owens Corning acquisition
Masonite and Owens Corning entered into a definitive agreement on Feb. 8, 2024, under which Owens Corning will acquire all of the outstanding shares of Masonite for $133.00 per share in cash. The transaction has been unanimously approved by both companies' board of directors and is subject to Masonite shareholders' approval, as well as various regulatory approvals and other customary closing conditions. The transaction is anticipated to close by the middle of 2024.
Corporate response
"Thanks to strong execution of our 2023 playbook, Masonite was able to deliver net sales and adjusted EBITDA within the guidance we announced at the beginning of the year and cash flow that significantly exceeded our initial guidance," says Howard Heckes, president and CEO. "Subsequent to year end, we announced a deal that will make Masonite a part of the Owens Corning family in 2024. We see this combination as a tremendous opportunity to accelerate our Doors That Do More strategy with an industry leader, while delivering substantial value to our shareholders."
