UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
_______________________________________
FORM 8-K
________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 26, 2016
________________________________________
Masonite International Corporation
(Exact name of registrant as specified in its charter)
________________________________________
| British Columbia, Canada | 001-11796 | 98-0377314 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||
2771 Rutherford Road Concord, Ontario, Canada | L4K 2N6 | |
| (Address of principal executive offices) | (Zip Code) | |
(800) 895-2723
(Registrant’s telephone number, including area code)
NOT APPLICABLE
(Former name or former address, if changed since last report)
________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
1
| Item 7.01 | Regulation FD Disclosure |
Masonite International Corporation ("Masonite" or "the Company") previously announced a change to its reportable segments, effective for the quarter ending April 3, 2016, to align with changes in how the Company manages the business, reviews operating performance and allocates resources as a result of the deconsolidation of South Africa and other internal reporting changes.
The Company will hold a brief conference call and webcast on April 27, 2016, beginning at 9:00 a.m. ET to discuss the segment change. The live audio webcast can be accessed, together with the related presentation materials, on the Masonite website at www.masonite.com under Investors > Events & Presentations.
Telephone access to the live call will be available at 877-407-3980 (in the U.S.) or by dialing 201-689-8475 (outside U.S.).
A telephone replay will be available approximately one hour following completion of the call through May 11, 2016. To access the replay, please dial 877-660-6853 (in the U.S.) or 201-612-7415 (outside U.S.). Enter Conference ID #13635387.
The information furnished in this Item 7.01 shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
| Item 8.01 | Other Events |
The Company is filing this Item 8.01 of Form 8-K to recast certain historical results for previously reported fiscal periods for the 2014 and 2015 quarterly and year-end periods, as described in more detail below, to reflect the previously announced segment change. The Company's reportable segments have changed, effective for the quarter ending April 3, 2016. The Company will begin to report results under the new reportable segments with the filing of its Quarterly Report on Form 10-Q for the quarter ending April 3, 2016. The new segments align with changes in how the Company manages the business, reviews operating performance and allocates resources as a result of the deconsolidation of its Africa reportable segment and other internal reporting changes. The Company’s re-aligned reportable segments are as follows:
| • | North American Residential |
| • | Europe |
| • | Architectural |
North American Residential reportable segment is the aggregation of the Wholesale and Retail operating segments. The Europe reportable segment is the aggregation of the United Kingdom, Central Eastern Europe and France (prior to disposal) operating segments. The Architectural reportable segment consists solely of the Architectural operating segment. In addition to the new reportable segments, the Corporate & Other category includes unallocated corporate costs and the results of immaterial operating segments which were not aggregated into any reportable segment, including the historical results of our Africa operating segment.
2
The financial information included in this Item 8.01 includes recast segment net sales and Adjusted EBITDA (as defined) for the years ended January 3, 2016, and December 28, 2014, and for each fiscal quarter therein. The financial information furnished also includes a reconciliation of net sales by segment for each fiscal quarter during the year ended January 3, 2016, compared to the respective fiscal quarter in the year ended December 28, 2014. The recast of historical segment information has no impact on the Company's previously reported consolidated results of operations, financial condition or cash flows.
Non-GAAP Financial Measure Information
Adjusted EBITDA is a measure used by management to evaluate segment performance and allocate resources. Adjusted EBITDA is defined as net income (loss) attributable to Masonite plus depreciation, amortization, restructuring costs, loss (gain) on sale of property, plant and equipment, asset impairment, loss (gain) on disposal of subsidiaries, registration and listing fees, interest expense, net, loss on extinguishment of debt, other expense (income), net, income tax expense (benefit), loss (income) from discontinued operations, net of tax, net income attributable to non-controlling interest and share based compensation expense. Adjusted EBITDA is not a measure of financial condition or profitability under GAAP, and should not be considered as an alternative to (i) net income (loss) or net income (loss) attributable to Masonite determined in accordance with GAAP or (ii) operating cash flow 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. We believe that the inclusion of Adjusted EBITDA in this press release is appropriate to provide additional information to investors about our operating performance. Not all companies use identical calculations, and as a result, this presentation of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. Moreover, Adjusted EBITDA as presented for financial reporting purposes herein, although similar, is not the same as similar terms in the applicable covenants in our ABL Facility or our senior notes. 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 following the recast financial information set forth reconciliations of Adjusted EBITDA to net income (loss) attributable to Masonite for the periods indicated.
3
MASONITE INTERNATIONAL COPORATION
SALES RECONCILIATION AND ADJUSTED EBITDA BY REPORTABLE SEGMENT
(Unaudited)
| (In millions) | North American Residential | Europe | Architectural | Corporate & Other | Consolidated | ||||||||||||||
| Fourth quarter 2014 net sales | $ | 281.1 | $ | 81.5 | $ | 61.8 | $ | 24.6 | $ | 448.9 | |||||||||
| Foreign exchange | (13.1 | ) | (2.9 | ) | (1.1 | ) | (3.3 | ) | (20.4 | ) | |||||||||
| Volume* | 27.6 | (3.0 | ) | 12.5 | 1.2 | 38.3 | |||||||||||||
| Average unit price | 13.9 | 5.0 | (0.9 | ) | (3.7 | ) | 14.3 | ||||||||||||
| Other | 1.4 | 0.7 | 2.5 | (0.4 | ) | 4.3 | |||||||||||||
| Fourth quarter 2015 net sales | $ | 310.9 | $ | 81.3 | $ | 74.8 | $ | 18.4 | $ | 485.4 | |||||||||
| Fourth quarter 2014 Adj. EBITDA | $ | 29.4 | $ | 4.0 | $ | 2.0 | $ | 2.3 | $ | 37.7 | |||||||||
| Fourth quarter 2015 Adj. EBITDA | 45.6 | 9.9 | 4.9 | (3.6 | ) | 56.8 | |||||||||||||
| Year over year growth, net sales | 10.6 | % | (0.2 | )% | 21.0 | % | 8.1 | % | |||||||||||
| Year over year growth, Adj. EBITDA | 55.1 | % | 147.5 | % | 145.0 | % | 50.7 | % | |||||||||||
| Fourth quarter 2014 Adj. EBITDA margin | 10.5 | % | 4.9 | % | 3.2 | % | 8.4 | % | |||||||||||
| Fourth quarter 2015 Adj. EBITDA margin | 14.7 | % | 12.2 | % | 6.6 | % | 11.7 | % | |||||||||||
(*) Includes the incremental impact of acquisitions and dispositions.
| (In millions) | North American Residential | Europe | Architectural | Corporate & Other | Consolidated | ||||||||||||||
| Third quarter 2014 net sales | $ | 302.3 | $ | 80.6 | $ | 72.2 | $ | 21.1 | $ | 476.1 | |||||||||
| Foreign exchange | (15.2 | ) | (6.7 | ) | (1.2 | ) | (2.9 | ) | (26.0 | ) | |||||||||
| Volume* | (9.8 | ) | (0.5 | ) | 3.0 | 0.6 | (6.7 | ) | |||||||||||
| Average unit price | 25.9 | 4.6 | 0.3 | 0.7 | 31.5 | ||||||||||||||
| Other | 1.0 | 0.4 | (0.2 | ) | (0.5 | ) | 0.8 | ||||||||||||
| Third quarter 2015 net sales | $ | 304.2 | $ | 78.4 | $ | 74.1 | $ | 19.0 | $ | 475.7 | |||||||||
| Third quarter 2014 Adj. EBITDA | $ | 34.9 | $ | 0.8 | $ | 6.7 | $ | (6.8 | ) | $ | 35.6 | ||||||||
| Third quarter 2015 Adj. EBITDA | 43.9 | 5.9 | 6.1 | (5.5 | ) | 50.5 | |||||||||||||
| Year over year growth, net sales | 0.6 | % | (2.7 | )% | 2.6 | % | (0.1 | )% | |||||||||||
| Year over year growth, Adj. EBITDA | 25.8 | % | 637.5 | % | (9.0 | )% | 41.9 | % | |||||||||||
| Third quarter 2014 Adj. EBITDA margin | 11.5 | % | 1.0 | % | 9.3 | % | 7.5 | % | |||||||||||
| Third quarter 2015 Adj. EBITDA margin | 14.4 | % | 7.5 | % | 8.2 | % | 10.6 | % | |||||||||||
(*) Includes the incremental impact of acquisitions and dispositions.
4
MASONITE INTERNATIONAL COPORATION
SALES RECONCILIATION AND ADJUSTED EBITDA BY REPORTABLE SEGMENT
(Unaudited)
| (In millions) | North American Residential | Europe | Architectural | Corporate & Other | Consolidated | ||||||||||||||
| Second quarter 2014 net sales | $ | 305.7 | $ | 86.9 | $ | 71.6 | $ | 26.0 | $ | 490.2 | |||||||||
| Foreign exchange | (10.4 | ) | (12.6 | ) | (0.8 | ) | (1.9 | ) | (25.7 | ) | |||||||||
| Volume* | (8.8 | ) | (1.6 | ) | 4.6 | (4.5 | ) | (10.3 | ) | ||||||||||
| Average unit price | 17.5 | 4.4 | 1.9 | 0.7 | 24.5 | ||||||||||||||
| Other | 0.9 | — | (1.3 | ) | (1.8 | ) | (2.3 | ) | |||||||||||
| Second quarter 2015 net sales | $ | 304.9 | $ | 77.1 | $ | 76.0 | $ | 18.5 | $ | 476.4 | |||||||||
| Second quarter 2014 Adj. EBITDA | $ | 39.2 | $ | 5.7 | $ | 6.7 | $ | (7.6 | ) | $ | 44.1 | ||||||||
| Second quarter 2015 Adj. EBITDA | 46.7 | 8.1 | 8.2 | (3.9 | ) | 59.1 | |||||||||||||
| Year over year growth, net sales | (0.3 | )% | (11.3 | )% | 6.1 | % | (2.8 | )% | |||||||||||
| Year over year growth, Adj. EBITDA | 19.1 | % | 42.1 | % | 22.4 | % | 34.0 | % | |||||||||||
| Second quarter 2014 Adj. EBITDA margin | 12.8 | % | 6.6 | % | 9.4 | % | 9.0 | % | |||||||||||
| Second quarter 2015 Adj. EBITDA margin | 15.3 | % | 10.5 | % | 10.8 | % | 12.4 | % | |||||||||||
(*) Includes the incremental impact of acquisitions and dispositions.
| (In millions) | North American Residential | Europe | Architectural | Corporate & Other | Consolidated | ||||||||||||||
| First quarter 2014 net sales | $ | 253.9 | $ | 77.2 | $ | 64.6 | $ | 26.7 | $ | 422.5 | |||||||||
| Foreign exchange | (8.2 | ) | (10.8 | ) | (0.7 | ) | (1.2 | ) | (20.9 | ) | |||||||||
| Volume* | 9.2 | 3.0 | 1.4 | (4.5 | ) | 9.1 | |||||||||||||
| Average unit price | 17.1 | 6.0 | 2.2 | (1.3 | ) | 24.0 | |||||||||||||
| Other | 1.3 | (0.4 | ) | (0.6 | ) | (0.5 | ) | (0.2 | ) | ||||||||||
| First quarter 2015 net sales | $ | 273.3 | $ | 75.0 | $ | 66.9 | $ | 19.2 | $ | 434.5 | |||||||||
| First quarter 2014 Adj. EBITDA | $ | 17.5 | $ | 4.0 | $ | 4.4 | $ | (6.2 | ) | $ | 19.7 | ||||||||
| First quarter 2015 Adj. EBITDA | 29.3 | 6.6 | 4.0 | (2.2 | ) | 37.8 | |||||||||||||
| Year over year growth, net sales | 7.6 | % | (2.8 | )% | 3.6 | % | 2.8 | % | |||||||||||
| Year over year growth, Adj. EBITDA | 67.4 | % | 65.0 | % | (9.1 | )% | 91.9 | % | |||||||||||
| First quarter 2014 Adj. EBITDA margin | 6.9 | % | 5.2 | % | 6.8 | % | 4.7 | % | |||||||||||
| First quarter 2015 Adj. EBITDA margin | 10.7 | % | 8.8 | % | 6.0 | % | 8.7 | % | |||||||||||
(*) Includes the incremental impact of acquisitions and dispositions.
5
MASONITE INTERNATIONAL COPORATION
SALES RECONCILIATION AND ADJUSTED EBITDA BY REPORTABLE SEGMENT
(Unaudited)
| (In millions) | North American Residential | Europe | Architectural | Corporate & Other | Consolidated | ||||||||||||||
| Full year 2014 net sales | $ | 1,143.0 | $ | 326.2 | $ | 270.2 | $ | 98.4 | $ | 1,837.7 | |||||||||
| Foreign exchange | (46.9 | ) | (33.0 | ) | (3.8 | ) | (9.2 | ) | (92.9 | ) | |||||||||
| Volume* | 18.2 | (2.1 | ) | 21.5 | (7.1 | ) | 30.5 | ||||||||||||
| Average unit price | 74.4 | 20.0 | 3.5 | (3.6 | ) | 94.3 | |||||||||||||
| Other | 4.5 | 0.7 | 0.4 | (3.4 | ) | 2.4 | |||||||||||||
| Full year 2015 net sales | $ | 1,193.2 | $ | 311.8 | $ | 291.8 | $ | 75.1 | $ | 1,872.0 | |||||||||
| Full year 2014 Adj. EBITDA | $ | 120.9 | $ | 14.6 | $ | 19.8 | $ | (18.2 | ) | $ | 137.1 | ||||||||
| Full year 2015 Adj. EBITDA | 165.6 | 30.5 | 23.3 | (15.1 | ) | 204.2 | |||||||||||||
| Year over year growth, net sales | 4.4 | % | (4.4 | )% | 8.0 | % | 1.9 | % | |||||||||||
| Year over year growth, Adj. EBITDA | 37.0 | % | 108.9 | % | 17.7 | % | 48.9 | % | |||||||||||
| Full year 2014 Adj. EBITDA margin | 10.6 | % | 4.5 | % | 7.3 | % | 7.5 | % | |||||||||||
| Full year 2015 Adj. EBITDA margin | 13.9 | % | 9.8 | % | 8.0 | % | 10.9 | % | |||||||||||
(*) Includes the incremental impact of acquisitions and dispositions.
6
MASONITE INTERNATIONAL COPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE
(Unaudited)
| Three Months Ended January 3, 2016 | |||||||||||||||||||
| (In thousands) | North American Residential | Europe | Architectural | Corporate & Other | Total | ||||||||||||||
| Adjusted EBITDA | $ | 45,615 | $ | 9,905 | $ | 4,925 | $ | (3,605 | ) | $ | 56,840 | ||||||||
| Less (plus): | |||||||||||||||||||
| Depreciation | 7,896 | 2,157 | 2,145 | 2,692 | 14,890 | ||||||||||||||
| Amortization | 1,295 | 2,806 | 2,311 | 1,069 | 7,481 | ||||||||||||||
| Share based compensation expense | — | — | — | 6,261 | 6,261 | ||||||||||||||
| Loss (gain) on disposal of property, plant and equipment | 53 | 292 | 436 | 5 | 786 | ||||||||||||||
| Restructuring costs | 2 | 87 | — | 1,106 | 1,195 | ||||||||||||||
| Loss (gain) on disposal of subsidiaries | — | — | — | 30,263 | 30,263 | ||||||||||||||
| Interest expense (income), net | — | — | — | 7,165 | 7,165 | ||||||||||||||
| Other expense (income), net | (50 | ) | 882 | — | 950 | 1,782 | |||||||||||||
| Income tax expense (benefit) | — | — | — | (1,595 | ) | (1,595 | ) | ||||||||||||
| Loss (income) from discontinued operations, net of tax | — | — | — | 247 | 247 | ||||||||||||||
| Net income (loss) attributable to non-controlling interest | 866 | — | — | 717 | 1,583 | ||||||||||||||
| Net income (loss) attributable to Masonite | $ | 35,553 | $ | 3,681 | $ | 33 | $ | (52,485 | ) | $ | (13,218 | ) | |||||||
| Three Months Ended December 28, 2014 | |||||||||||||||||||
| (In thousands) | North American Residential | Europe | Architectural | Corporate & Other | Total | ||||||||||||||
| Adjusted EBITDA | $ | 29,374 | $ | 4,042 | $ | 2,000 | $ | 2,306 | $ | 37,722 | |||||||||
| Less (plus): | |||||||||||||||||||
| Depreciation | 8,384 | 2,240 | 2,013 | 2,161 | 14,798 | ||||||||||||||
| Amortization | 1,377 | 1,102 | 1,995 | 1,075 | 5,549 | ||||||||||||||
| Share based compensation expense | — | — | — | 2,270 | 2,270 | ||||||||||||||
| Loss (gain) on disposal of property, plant and equipment | 869 | 12 | 325 | 251 | 1,457 | ||||||||||||||
| Restructuring costs | 44 | (46 | ) | — | (55 | ) | (57 | ) | |||||||||||
| Asset impairment | — | 14,020 | — | 4,182 | 18,202 | ||||||||||||||
| Interest expense (income), net | — | — | — | 10,491 | 10,491 | ||||||||||||||
| Other expense (income), net | — | 161 | — | (1,831 | ) | (1,670 | ) | ||||||||||||
| Income tax expense (benefit) | — | — | — | 1,131 | 1,131 | ||||||||||||||
| Loss (income) from discontinued operations, net of tax | — | — | — | 194 | 194 | ||||||||||||||
| Net income (loss) attributable to non-controlling interest | 764 | — | — | 960 | 1,724 | ||||||||||||||
| Net income (loss) attributable to Masonite | $ | 17,936 | $ | (13,447 | ) | $ | (2,333 | ) | $ | (18,523 | ) | $ | (16,367 | ) | |||||
7
MASONITE INTERNATIONAL COPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE
(Unaudited)
| 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 | ) | ||||||
| Three Months Ended September 28, 2014 | |||||||||||||||||||
| (In thousands) | North American Residential | Europe | Architectural | Corporate & Other | Total | ||||||||||||||
| Adjusted EBITDA | $ | 34,900 | $ | 772 | $ | 6,701 | $ | (6,776 | ) | $ | 35,597 | ||||||||
| Less (plus): | |||||||||||||||||||
| Depreciation | 7,132 | 4,021 | 2,014 | 2,675 | 15,842 | ||||||||||||||
| Amortization | 1,295 | 863 | 1,872 | 859 | 4,889 | ||||||||||||||
| Share based compensation expense | — | — | — | 2,255 | 2,255 | ||||||||||||||
| Loss (gain) on disposal of property, plant and equipment | 1,276 | (948 | ) | 90 | (182 | ) | 236 | ||||||||||||
| Restructuring costs | 107 | 192 | — | 9,614 | 9,913 | ||||||||||||||
| Interest expense (income), net | — | — | — | 10,447 | 10,447 | ||||||||||||||
| Other expense (income), net | — | 22 | — | (426 | ) | (404 | ) | ||||||||||||
| Income tax expense (benefit) | — | — | — | 2,004 | 2,004 | ||||||||||||||
| Loss (income) from discontinued operations, net of tax | — | — | — | 124 | 124 | ||||||||||||||
| Net income (loss) attributable to non-controlling interest | 643 | — | — | (385 | ) | 258 | |||||||||||||
| Net income (loss) attributable to Masonite | $ | 24,447 | $ | (3,378 | ) | $ | 2,725 | $ | (33,761 | ) | $ | (9,967 | ) | ||||||
8
MASONITE INTERNATIONAL COPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE
(Unaudited)
| Three Months Ended June 28, 2015 | |||||||||||||||||||
| (In thousands) | North American Residential | Europe | Architectural | Corporate & Other | Total | ||||||||||||||
| Adjusted EBITDA | $ | 46,713 | $ | 8,053 | $ | 8,185 | $ | (3,894 | ) | $ | 59,057 | ||||||||
| Less (plus): | |||||||||||||||||||
| Depreciation | 7,925 | 1,882 | 2,020 | 2,583 | 14,410 | ||||||||||||||
| Amortization | 1,091 | 924 | 2,074 | 886 | 4,975 | ||||||||||||||
| Share based compensation expense | — | — | — | 3,106 | 3,106 | ||||||||||||||
| Loss (gain) on disposal of property, plant and equipment | 317 | 5 | 9 | 19 | 350 | ||||||||||||||
| Restructuring costs | 3 | 467 | — | 518 | 988 | ||||||||||||||
| Interest expense (income), net | — | — | — | 6,787 | 6,787 | ||||||||||||||
| Other expense (income), net | — | 45 | — | (680 | ) | (635 | ) | ||||||||||||
| Income tax expense (benefit) | — | — | — | 15,013 | 15,013 | ||||||||||||||
| Loss (income) from discontinued operations, net of tax | — | — | — | 240 | 240 | ||||||||||||||
| Net income (loss) attributable to non-controlling interest | 823 | — | — | (442 | ) | 381 | |||||||||||||
| Net income (loss) attributable to Masonite | $ | 36,554 | $ | 4,730 | $ | 4,082 | $ | (31,924 | ) | $ | 13,442 | ||||||||
| Three Months Ended June 29, 2014 | |||||||||||||||||||
| (In thousands) | North American Residential | Europe | Architectural | Corporate & Other | Total | ||||||||||||||
| Adjusted EBITDA | $ | 39,180 | $ | 5,731 | $ | 6,739 | $ | (7,600 | ) | $ | 44,050 | ||||||||
| Less (plus): | |||||||||||||||||||
| Depreciation | 7,353 | 2,724 | 2,029 | 2,430 | 14,536 | ||||||||||||||
| Amortization | 1,083 | 1,430 | 1,665 | 1,415 | 5,593 | ||||||||||||||
| Share based compensation expense | — | — | — | 2,797 | 2,797 | ||||||||||||||
| Loss (gain) on disposal of property, plant and equipment | 929 | 20 | 64 | 23 | 1,036 | ||||||||||||||
| Restructuring costs | 370 | 201 | — | (11 | ) | 560 | |||||||||||||
| Interest expense (income), net | — | — | — | 10,594 | 10,594 | ||||||||||||||
| Other expense (income), net | — | (47 | ) | — | 1,353 | 1,306 | |||||||||||||
| Income tax expense (benefit) | — | — | — | 1,379 | 1,379 | ||||||||||||||
| Loss (income) from discontinued operations, net of tax | — | — | — | 170 | 170 | ||||||||||||||
| Net income (loss) attributable to non-controlling interest | 772 | — | — | (273 | ) | 499 | |||||||||||||
| Net income (loss) attributable to Masonite | $ | 28,673 | $ | 1,403 | $ | 2,981 | $ | (27,477 | ) | $ | 5,580 | ||||||||
9
MASONITE INTERNATIONAL COPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE
(Unaudited)
| Three Months Ended March 29, 2015 | |||||||||||||||||||
| (In thousands) | North American Residential | Europe | Architectural | Corporate & Other | Total | ||||||||||||||
| Adjusted EBITDA | $ | 29,347 | $ | 6,569 | $ | 4,030 | $ | (2,158 | ) | $ | 37,788 | ||||||||
| Less (plus): | |||||||||||||||||||
| Depreciation | 7,952 | 1,959 | 1,977 | 3,418 | 15,306 | ||||||||||||||
| Amortization | 1,307 | 922 | 2,028 | 754 | 5,011 | ||||||||||||||
| Share based compensation expense | — | — | — | 2,379 | 2,379 | ||||||||||||||
| Loss (gain) on disposal of property, plant and equipment | 213 | 14 | 44 | (327 | ) | (56 | ) | ||||||||||||
| Restructuring costs | 3 | 1,728 | — | 625 | 2,356 | ||||||||||||||
| Interest expense (income), net | — | — | — | 11,753 | 11,753 | ||||||||||||||
| Loss on extinguishment of debt | — | — | — | 28,046 | 28,046 | ||||||||||||||
| Other expense (income), net | — | 83 | — | (1,267 | ) | (1,184 | ) | ||||||||||||
| Income tax expense (benefit) | — | — | — | 3,264 | 3,264 | ||||||||||||||
| Loss (income) from discontinued operations, net of tax | — | — | — | 229 | 229 | ||||||||||||||
| Net income (loss) attributable to non-controlling interest | 938 | — | — | 798 | 1,736 | ||||||||||||||
| Net income (loss) attributable to Masonite | $ | 18,934 | $ | 1,863 | $ | (19 | ) | $ | (51,830 | ) | $ | (31,052 | ) | ||||||
| Three Months Ended March 30, 2014 | |||||||||||||||||||
| (In thousands) | North American Residential | Europe | Architectural | Corporate & Other | Total | ||||||||||||||
| Adjusted EBITDA | $ | 17,490 | $ | 4,025 | $ | 4,359 | $ | (6,156 | ) | $ | 19,718 | ||||||||
| Less (plus): | |||||||||||||||||||
| Depreciation | 8,588 | 3,132 | 2,027 | 1,699 | 15,446 | ||||||||||||||
| Amortization | 2,077 | 142 | 3,215 | 257 | 5,691 | ||||||||||||||
| Share based compensation expense | — | — | — | 2,283 | 2,283 | ||||||||||||||
| Loss (gain) on disposal of property, plant and equipment | 769 | 313 | 8 | (3 | ) | 1,087 | |||||||||||||
| Restructuring costs | 126 | 570 | — | 25 | 721 | ||||||||||||||
| Interest expense (income), net | — | — | — | 9,993 | 9,993 | ||||||||||||||
| Other expense (income), net | — | 55 | — | 126 | 181 | ||||||||||||||
| Income tax expense (benefit) | — | — | — | 19 | 19 | ||||||||||||||
| Loss (income) from discontinued operations, net of tax | — | — | — | 142 | 142 | ||||||||||||||
| Net income (loss) attributable to non-controlling interest | 649 | — | — | 92 | 741 | ||||||||||||||
| Net income (loss) attributable to Masonite | $ | 5,281 | $ | (187 | ) | $ | (891 | ) | $ | (20,789 | ) | $ | (16,586 | ) | |||||
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MASONITE INTERNATIONAL COPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE
(Unaudited)
| Year Ended January 3, 2016 | |||||||||||||||||||
| (In thousands) | North American Residential | Europe | Architectural | Corporate & Other | Total | ||||||||||||||
| Adjusted EBITDA | $ | 165,560 | $ | 30,468 | $ | 23,281 | $ | (15,112 | ) | $ | 204,197 | ||||||||
| Less (plus): | |||||||||||||||||||
| Depreciation | 31,456 | 8,105 | 8,223 | 11,376 | 59,160 | ||||||||||||||
| Amortization | 4,954 | 6,860 | 8,428 | 3,483 | 23,725 | ||||||||||||||
| Share based compensation expense | — | — | — | 13,236 | 13,236 | ||||||||||||||
| Loss (gain) on disposal of property, plant and equipment | 796 | 325 | 548 | (298 | ) | 1,371 | |||||||||||||
| Restructuring costs | 10 | 2,501 | — | 3,167 | 5,678 | ||||||||||||||
| Asset impairment | — | 9,439 | — | — | 9,439 | ||||||||||||||
| Loss (gain) on disposal of subsidiaries | — | 29,721 | — | 30,263 | 59,984 | ||||||||||||||
| Interest expense (income), net | — | — | — | 32,884 | 32,884 | ||||||||||||||
| Loss on extinguishment of debt | — | — | — | 28,046 | 28,046 | ||||||||||||||
| Other expense (income), net | (50 | ) | 1,087 | — | (2,794 | ) | (1,757 | ) | |||||||||||
| Income tax expense (benefit) | — | — | — | 14,172 | 14,172 | ||||||||||||||
| Loss (income) from discontinued operations, net of tax | — | — | — | 908 | 908 | ||||||||||||||
| Net income (loss) attributable to non-controlling interest | 3,323 | — | — | 1,139 | 4,462 | ||||||||||||||
| Net income (loss) attributable to Masonite | $ | 125,071 | $ | (27,570 | ) | $ | 6,082 | $ | (150,694 | ) | $ | (47,111 | ) | ||||||
| Year Ended December 28, 2014 | |||||||||||||||||||
| (In thousands) | North American Residential | Europe | Architectural | Corporate & Other | Total | ||||||||||||||
| Adjusted EBITDA | $ | 120,944 | $ | 14,570 | $ | 19,799 | $ | (18,226 | ) | $ | 137,087 | ||||||||
| Less (plus): | |||||||||||||||||||
| Depreciation | 31,457 | 12,117 | 8,083 | 8,965 | 60,622 | ||||||||||||||
| Amortization | 5,832 | 3,537 | 8,747 | 3,606 | 21,722 | ||||||||||||||
| Share based compensation expense | — | — | — | 9,605 | 9,605 | ||||||||||||||
| Loss (gain) on disposal of property, plant and equipment | 3,843 | (603 | ) | 487 | 89 | 3,816 | |||||||||||||
| Restructuring costs | 647 | 917 | — | 9,573 | 11,137 | ||||||||||||||
| Asset impairment | — | 14,020 | — | 4,182 | 18,202 | ||||||||||||||
| Interest expense (income), net | — | — | — | 41,525 | 41,525 | ||||||||||||||
| Other expense (income), net | — | 191 | — | (778 | ) | (587 | ) | ||||||||||||
| Income tax expense (benefit) | — | — | — | 4,533 | 4,533 | ||||||||||||||
| Loss (income) from discontinued operations, net of tax | — | — | — | 630 | 630 | ||||||||||||||
| Net income (loss) attributable to non-controlling interest | 2,828 | — | — | 394 | 3,222 | ||||||||||||||
| Net income (loss) attributable to Masonite | $ | 76,337 | $ | (15,609 | ) | $ | 2,482 | $ | (100,550 | ) | $ | (37,340 | ) | ||||||
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| MASONITE INTERNATIONAL CORPORATION | ||||
| Date: | April 26, 2016 | By: | /s/ Robert E. Lewis | |
| Name: | Robert E. Lewis | |||
| Title: | Senior Vice President, General Counsel and Secretary | |||
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