MBC - Earnings call 4 2023 | MasterBrand, Inc.

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Operator

Welcome to MasterBrand's Fourth Quarter and Full Year 2023 Earnings Conference Call. [Operator Instructions] Please note that this conference call is being recorded. I would now like to turn the call over to Farand Pawlak, Vice President of Investor Relations and Corporate Communications.

Farand Pawlak

Thank you, and good afternoon. We appreciate you joining us on today's call. call and Dave President Andi Financial the Chief President and on Officer. Officer; Executive Simon, me today Banyard, are and Chief With Executive Vice quarter this a disclosing release issued year earlier We our financial press fourth and results. full XXXX afternoon

not contained risks that do in from expectations it actual document, statement call that include either associated is statements this section call and this current the I'd like question-and-answer forward-looking our is at in or our will website differ have those masterbrand.com. on session. cause on this and is based the Each materially prepared to may anticipated. to Investors you results If subject and outlook available of currently market remind to certain uncertainties remarks you forward-looking

these which our the about updated Securities XX-Qs, More with subsequent today. undertake these of this Form update revise and speak as in available Forward-Looking at The except our Additional statements statements, section XXXX required we any call press only year full in appears information and Form XX-K and any the Factors, Commission information in the does in and as company XXXX obligation as not the today, forward-looking law. found entitled sec.gov to necessary of filings masterbrand.com. or are by release be regarding heading in Statements Risk under in issued our Exchange the risks can factors

and release tables, are earlier and discussion at are Today's this financial non-GAAP press sec.gov Please available the includes certain issued masterbrand.com. at also which to measures. in the refer reconciliation afternoon

our financial quarter by a XXXX Andi, business with results and outlook. our a will full today discussion from update remarks XXXX include Dave prepared financial along initial from year followed fourth of Our

a Finally, make before closing Dave host session. we some question-and-answer remarks will

Now call let turn me over with the Dave. to that,

R. Banyard

$XXX not and us quarter Earnings but sales only to full and year we Call. This fiscal relative demand. XX% you our for full the due decline everyone. over lower was sales the strength new marks net of servicing Good company, finished here by appreciate in call Conference favorable the against at markets. I'm driven our our were pleased decline year. of overall our period Net joining stand-alone favorable expectations, customers Farand. construction range of to public than fourth and year, XXXX this This first Thanks, XXXX say million, of anticipated. last the year quarter volume Despite afternoon, performance end was the year quarter stronger due today same the a the the to as We end the end a expected end market continued internal fourth softer year-over-year our decline fourth

adjusted fourth operational well. points than $XX the EBITDA in and delivered an company of million the perform a to last We quarter period standpoint, continued XX related basis higher year. same margin From the of XX.X%,

Cost lower improvement way. seasonal despite disciplined normal initiatives MasterBrand was return lower activity. Our deliver on our continuous impact negative strategic selling from promotional margin the ability continued of basis sales another year-over-year a of system, savings business expansion lower due use to net quarter to average than and from the of downs of volumes efforts the and offset trade more price and the

and provide I'll the to chain, grow strong productivity deliver quality strategic continued processes. management you areas Our with details more this shortly. lead lean supply Align savings, initiatives to of of through in year-over-year on and specifically

efforts cash of Further $XX helped from flow better-than-expected cash Our processes to drove benefit despite discount the accelerate certain expenditures Strong our improvement. as well and us flow deliver million. this in free by capital our as of decision free chain focus was inventory working and improved team quarter driven performance on fourth opportunities. box another and reductions capital collection supply systems improvements quarter common

We readiness operations of income, future constant $XXX our in and execute to the due delivering of capital million, our on this net annual strength of goal cash were flow free spending XXX% surpassing able full to year flow of continued pull net was XXXX projects. cash income. to forward In total, free excess

XXXX, In operating recordable to these year-over-year. improvement an proud impressive to continue say on results, our that OSHA strong I'm a to X.XX, XX% safety of rate addition we already improve record. achieved in we

our core keeping While we're to our culture. industry-leading remains proud this is our goal of rate, associates X, safe

at can see, first in like of tools closest them. or coupled our way problem-solving year, of of moment bring associates, an I'd using the without can helped the have address to associates have the levels best recognize with to drive none challenges possible engagement This so take organization. which a you a culture simply and them. all efforts, tools a work event the to the the exceptional As formal our form understand culture dedicated those been to a Kaizen of strong proven of in and This MasterBrand to finish allows to would toolkit. forward be the Their

this In performance year. roughly financial in once million with on saw XXXX, again $XX we of continuous savings the the approach impact of improvement our

our EBITDA capacity at our in and In to adjusted us further This facilities. docs performance. and continue end to decremental savings, in align which our market allow unlock margin these with our our addition to network associates common strong helps support initiative demand operations XXXX, capacity manufacturing flex advances hidden

a feel in engagement benefits, at change we engagement. and look On improve manufacturing survey, action, they score Beyond tool. and their and within associates financial ultimate satisfaction higher and outperform the basis, satisfaction Lean When they their And own benchmark. our plants employee reflects leading an continues this. we are score completed the to drives semiannual our empowered, as operational which see engagement decisions

to to the note, deliver targets these XXXX, customers the our and about better On our XXXX, can become like to long-term savings in have operational achieve CI growth for the expect in introduced year we're results by XXXX proud demand I'd even at the believe we speak XXXX we of and we year. served plans to an how for our While environment and we we work place last Day. financial end specifically efficiencies coming finished with Investor greater in along opportunities drive invest markets that

much seen bright quarter, some for new kept to spot the demand construction with We has strength less was capitalize that builders, of single-family along market. the volatility, housing, saw and a the rate pent-up production the throughout compared fourth rates and a specifically U.S. of few quarter helped builders, XXXX. solid seasonality. fourth new facilities the normal within construction this regions production in we X-week particular, holiday single-family our strength in XXXX were improving and this quarter demand anticipated large on online mortgage first drive so Declining into so able and with inventory in Large relative interest for continue segments of spec shutdown. homes demand we've to

rate year-over-year even We is construction are demand XXXX with environment. in interest expect the there this that strength the medium market large need to performing points new in continue builders the and see growth fact the through for an housing customers these underlying in to resulting current The year, seeing in mid-single-digit the best.

recent years constraints. as forward supply think may new and XXXX which also land Overall, there our cognizant into We is optimistic bodes underlying construction in along current builders develop single-family chain potential While We long-term potential in carry constraints view this momentum and the underbuilding, in of see we we're upside new think of between for the categories. could forecast, disruptions XXXX. the from labor with are market about well demand the be the demand that and the indicators our some certain and market at to saw for we end and construction housing demand potential outlook. balanced of validate

As to channels. performance down for This service our dealer up and who retail the our market, in mid-teens environment prior demand year-over-year. with remodel similar and and followed in both repair dealer quarters trajectory demand showed retail a primarily the customers

normal are quarter spending down more prioritizing due quarter we usually large softest of being believe other general. the and this and for the items is remodel repair remains in While consumers as ticket fourth market to thoughtful seasonality,

decision look features the portion fewer particularly costs, this to softer the Accordingly, in continue the XXXX. impacts, quarter near expect the we remain to first annualize to see choose extend of and time market orders. see consumers their in We lower these term of we lead in project pool as

the cabinets cautious year with we as total, larger for for in remain In expect year-over-year ticket the repair remodel to and market digits consumers be mid-single particularly early declines items. more on spending, about significant U.S. down XXXX

both repair continue end new markets and In meaningfully repair mid-single year-over-year in to currently digits housing being in with being weak is remodel expect experienced and high remained double-digit on down activity being We This the single soft declines. remodel and the new year-over-year. starts based quarter market demand and market down through the Canada, and XXXX. outlook see Canada, fourth construction lower digits

into and dynamics seeing this our will in relative in would year-over-year performance market overall demand our in call. low North new markets single construction account the be repair XXXX. environment demand Taking to expect remodel and provide digits expected later to we're the America, on we across Andi more down color

our the have in interest appears a we similar with based With Our we seeing which assumptions for modeling that housing Fed key which in expect factors along in probable. recent demand of turnover, to modeled moderate and commentary commentary. are factor construction levels existing as a future which fashion stability, rates rate reductions, in The Federal in environment, later in solidifying improvement gradual Reserve rate us reduction a year, today the on the we are new progresses. year for the

to products. up as experience sooner pick effect our ticket smaller than will larger R&R We expect ticket also lag products a

While we XXXX bode XXXX current we will as think the for supply standpoint the demand a in our overall, trajectory, end year looks long-term and transitionary move with beyond. through coupled markets be from rate well gap to housing a

the outlook, long-term Given we've our this on strategic momentum for in are ourselves position demand. we with and to XXXX created build future initiatives market looking

that on and the this speak operational is that positive Day and is targets. and in competitive culture we watch The XXXX schedule it those our heard evidence For attended financial flywheel we're algorithm you long-term exhibited you've Investor our XXXX working, replay, advantage us. of or performance the provides tools our of ahead of and me effect the about

a XXXX. with for mature to of continuous initiatives continue improvement pipeline strong operations Our

As we business. and we reinvesting drive the toolkit bandwidth of operations growth the improve have to cost focus more on our in and organization, out

more the to detail little I'd these Now like and areas a present beyond. in on to provide and XXXX both opportunity

our The quality improve more of opportunity area efficiency our discussed standard in earnings last newest being work call, box us areas. MasterBrand's the allowing across plants I common on is initiative As to and many processes.

higher a degree implementing our accuracy. we're part As the product technology quicker of with tech-enabled of inspect initiative, to and

within already provides our we've being both Since and automate they The in quality occur. the issues deployment, RFID will initiatives detective our to preventative identifying proven should maintaining decision-making. fully organization. believe even quality many drive for significant this deployed processes technology quality use pilot our last of we is enhanced these reduce call, greater continue our programs. efficiency launched can our Today, how and operations. standards human tech-enabled Similar these decisions, to technology them example of require outcomes and helping some allowing Once and implemented, productivity another better control,

in Utilizing increasing business the investment these growth. savings, our we're for

us digital will our between more. in orders, and sales a provide fourth the software, new a customer MasterBrand initiative, quarter it with channel. our was comprehensive our on and view, and designed The part portal rolled cases of built new tech-enabled customer team technology our to including the and industry-leading improve team out connection Connect As

distributors application. access of a customers, For underway, will and progress invoice fostering getting The a making well good experience. we're rollout our on this repository, dealer portal material our and seamless ensure order is it marketing buying tracking and accurate this on

data to in across platform, arena the time progress time, phase. cloud near to of delivering our teams in shorten team our data make customers. both our digital internally, progress expands and near any the phase we same modern planning improvement continues migration projects, allowed both the tools team metrics, real-time execution for multiple In real-time to infrastructure that providing continuous in XXXX, significant efforts. overlaying which Implementing on our line to and further has made the At this capabilities the

find we to past, Today, a data the the the had In often many can dig cases, various hours through problem, took solve minutes. answers find in which to and in systems weeks. needed to we same we

ourselves business As improve with brand ultimately and our portal, we continue outgrow to do functionality improved share our and to market. the we customers enable the gain experience of make to believe the easier master and will

have across in we initiative the investments organization. additional XXXX of The made pace tech-enabled our change increased in our

forward. change want As keep to we culturally, we absorb driving that

Given our reinvestment moment, which Andi business to and our the outlook into on in in performance, detail of on in a pace for will internal XXXX. the market outlook higher decided go continue our we've

have stay these making We the eventual ahead want investments additional of great now. improvements momentum demand to by and in

the more our our I'll to results outlook. Now turn XXXX on Andi financial over a call details in-depth additional of discussion for and

Andrea Simon

I'll an Thanks, fourth Dave. financial XXXX Then quarter on I'll begin our touch of our with year financial briefly overview results. highlights. full

our to provide quarter our million, in $XXX.X million net decline full last $XXX.X will same I a Fourth and year sales Lastly, outlook. around compared thoughts XXXX period year. the XX.X% were

to in slight primarily trade result of anticipated due net expected was of in the activity targeted return largely down performance promotions. the and softening line a market, declines volume continued ASP, top the with along our Our

fourth Gross million basis from expansion actions, and more which personnel compared margin margin the profit was last points X.X% in supply of in than $XXX year-over-year XX.X%. driven inflation up to effects offset strategic profit to same was chain specifically year. reduced $XXX.X initiatives, consistent trade expanded MasterBrand's compensation. execution the and This period quarter, including year-over-year volume, Gross XX.X% efforts, improvement million variable on downs continuous cost the XXX by

The personnel compared cost our sustained again quarter, and Fortune proceeds in Selling, being to last offset to due Georgia received of Brands X.X% tech-enabled. tornado period period. than gross benefited related the $X.X expenses lower of profit strategic and corporate company investment freight some of declines absence particularly and million to Jackson, increased earlier million, year. year. our general the the allocations stand-alone initiatives, in $XXX.X facility final a to last discrete items same were in from the Most administrative Similar we notably, from inflation, the insurance at more outbound lower commissions volume and damage

$XX.X the increase operating $XX.X last income higher in million period $XX.X fourth to quarter, the year-over-year million was a primarily This, the with million was in XXX.X% not offset reoccur. same increase by expense This higher income asset year. quarter Net in lower more quarter compared year-over-year restructuring due year to year. the than a to in driven prior coupled did charges charge interest prior impairment that the compared

demand charge million rightsizing adjustments interest softened. the period fourth to $X year. a of exit Canadian XXXX's compared same and Fortune fund an idle restructuring footprint as million $XX.X towards and the charges in the resulting of expense fourth relates in decision capacity our manufacturing quarter the facility million the compared quarter prior necessary in at relate $XX.X network to end the to to to last of dividend $X.X debt Interest spin-off. our in the expense in related as million market XXXX restructuring year to the to the time quarter was Brands This to various

to Please XX.X% relevant tax rate $X the mind rate to between the difference the of quarter rate. tax compared XXXX. the annual quarter, fourth Income keep a effective tax prior or quarter fourth in in quarter's million the in tax XX.X% and rate equating was is actual million effective or $X.X the rate rate year-to-date the a

performance of Adjusted earnings last Diluted earnings increase based on diluted year the driven EBITDA diluted around in shares productivity to points strategic year. $X.XX were MasterBrand's $XX.X our XX.X% we've the an $XX.X shares to from sales. last despite to in million was $X.XX year strong fourth execution XXX.X continued lower in of of improvements, margin same fourth period million per in the what XX XX.X%, compared chain XXX.X comparable Similar of basis period of share in diluted share by quarter prior the initiatives, Adjusted supply EBITDA quarters, savings. achieved XXXX per particularly expanded quarter the on compared million to and based prior margin outstanding. restructuring outstanding, was

primarily in year-over-year downs we together revised insurance more the than earlier. volume quarter impact our items The were included which from personnel These also trade discrete outlook, million inflation. of the declines, $X.X items, and mentioned of benefited offset proceeds

billion net year. results. year of full XX.X% the delivered our We XXXX, to on down prior sales Moving over $X.X in

Our primarily declines. by line driven market-related result was year-over-year top volume

pricing in early million, Gross ASP compared favorable last was a actions year. year-over-year X.X% profit trade our XXXX However, to to million down despite contributed activity. $XXX.X in down increased XXXX $XXX.X

inflation expanded million, and which personnel profit trade cost compared Gross investments to lower year. last offset to expansion volume, year-over-year Selling, improvement continuous margin XXX basis $XXX.X initiatives the and from in were than our points XX.X% was supply more higher XX.X%. XX.X% expenses year general driven efforts, same tech-enabled margin administrative down by downs, and Full period initiative. ASP, chain actions net

As In had XXXX, in XXXX, reminder, Fortune allocated costs. we portion stand-alone we a of a were Brands costs.

If it compare XXXX to net freight offset with savings more you strategic was as anticipated. personnel roughly of investments in volume declines year-over-year a These due and in business. outbound coupled $XX X, the impact the million inflation savings, of than the commissions lower and

was $XXX.X prior upfront This was $X.XX were impairment $XXX to year pro higher year. in a for reoccur XXXX, expense earnings and amortization XXXX. $XX.X million earnings was of asset per the in in The of an income XXXX. forma and charges diluted Diluted XXXX by income full compared share $XX.X charge partially in XXXX tax interest million million offset XXXX that due to $X.XX did lower per in Net expense. in share of XXXX, the million restructuring primarily increase not

forma X the there awards were there the equity to as were calculated dilutive no diluted equity no were of that pro NBC instruments assuming outstanding. prior separation quarters first XXXX, share In earnings per

million the $XXX.X EBITDA Adjusted and improvement offset declines by cost supply XX.X% the to to compared and year personnel last X.X% ASP, down XXXX, in in and savings. action compared XXX million higher market to the margin $XXX.X to initiatives expanded partially chain in year. basis points continuous year full for was prior volume inflation, EBITDA due Adjusted XX.X%

momentum our the and to investing ability future We with proven margin we we preserving the full pleased in growth expansion are last and strong beginning on at outlined margins. We year for continue entered operational year, extremely goals surpassed to lower a position net while deliver sales. of XXXX

million, We net revolver. third a the with consistent on to $XXX.X our ratio on million of XXXX. $XXX.X EBITDA at with X.Xx, and hand leverage year resulting end was million quarter balance quarter available ended of of liquidity the cash adjusted sheet. $XXX.X the in debt Turning of Net debt to the

Our with in business for in to last balance year. sheet the $XXX.X was million XX Operating remains strong flexibility XXXX, the million for the period comparable flow financial compared $XXX.X to the cash invest December months XX, ended growth.

million Our performance the capital strong inventory months improvement. million to well this $XX.X as improvement $XX.X around the ended operational XX specifically expenditures XX, working prior compared Capital collections as year-over-year were and in plans, for drove year. our management XXXX, December

As capital in Dave mentioned, accelerate certain benefit CapEx expenditures exceeding to made from we us guidance. discount to the decision resulting slightly opportunities, our

flow to months comparable the XX million improvement for last period a December million was This $XXX.X XXXX, $XXX.X in is year-over-year. the year. ended XX, cash Free compared $XXX.X million

As previous the quarter capital of million, fourth disclosed and roughly expected increased last slowing on significant payment in due increased Cash the Brands outflows to spin-related capital. of expenditures of our Fortune working improvement and our in calls, $XX

stock program. common repurchased stock under of during existing $X.X quarter, million our Finally, repurchase our the approximately fourth we

outlook. turn let's our Now to

single year-over-year we with varying XXXX digits mentioned, by our Dave market. down be in overall market performance end to As low expect demand

mid-single-digit markets digits. U.S. repair we soft. to For be model in being construction year-over-year markets, expect down domestic U.S. as new Canada a Overall, and to markets expect construction repair and and down and remodel continue end we both in with mid-single both growth to be new see

anticipate With be the digits net market our flat XXXX range year-on-year. to in of backdrop, sales single that we down low will

on Let the color our me in provide of net sales to some the market. additional drivers relation

customary pattern in a We environment, the and contemplates develop outlook of XXXX saw this promotions. of more pricing normalized trade second Our XXXX. downs a half including continued effect

would second from to as annualization comparisons. some and half XXXX, the price we'll environment pricing see more and evaluate in impact first we normalized of So continue get normal promotion that. but the quarterly year to less environment, there impact of expect we We the half a to the in to in response anticipate and normal is inflationary

have between repair recovery. As Dave outlook we in and in a variety new assumes of channel headwind, part new R&R sales launched items, both the remodel net smaller the To offset resulting across construction and specific broad and remodel packages this late sales repair market early timing our and ticket net our will that this a big mentioned, ticket markets. and year and of XXXX a year difference products lag last

products of and we part initiative, to have tailored to As for the specific end these satisfy markets best Grow growth. our positioned Align regions

help more the gain of incremental and products promotions. trade these customary discussed As will traction, than these impacts sales downs offset previously

we the pleased we with are existing year, As capabilities. our manufacturing enter

provides flexibility us needed up our capacity Our as This ample strengthens. beyond common allowed several service our also box to capacity or initiative with the XXXX, this cost flexibility adjust actions demand provides customers to In demand. with along to flexibility, deliver down with us expectations. margins

will efforts to continue continuous offset the with nimble allow sales be improvement of our any market our address manufacturing impact flex invest needed initiatives to coupled in softer will us and and adjust business. as and strategic ability to manufacturing, future conditions. the network This to further We

relatively growth initiatives, up success particularly more early stable perspective, further into a As returns. this Dave $XX and ourselves future initiative robust environment when are XXXX an mentioned, invest demand XXXX. our invest we year, to in to plan given this be incremental to demand position from of a the a shaping taking million for tech-enabled we With opportunity

between to $XXX anticipate be for approximately million XX.X% rate to XX% tax EBITDA with is in we of million and mind, of the expect EBITDA $XX million, million, With to to XXXX. Interest adjusted margin in range expense this $XX roughly and we a adjusted $XXX XX% expected XX%.

which This X.Xx be stated goals. depreciation, long-term to of investment within in million to is the are capital is $XX planning XXXX million. expenditures range our We approximately $XX

free to for improvement flow we capital have will net and but we XXXX, these reduce cash capital working of XXXX be to working in taken expect the factors, income of continue magnitude Given in not other excess to repeat. already steps the

Now that share earnings initiate per into company, are a being stand-alone we guidance. will year we a also

we With would earnings $X.XX to of diluted like XXXX, I back turn $X.XX. For to in that, to adjusted the per be expect range share our to the Dave. call

R. Banyard

Andi. Thanks, holds opportunity for We're excited the us. about XXXX

maintain initiatives future to despite of headwinds, shows excited up EBITDA Q&A. ability and the culture to strategic for model. that, our continue We Our adjusted margins to in and our beyond. business and culture, the market we're investing business strength while growth And demonstrated that XXXX, the XXXX momentum power I'll of call and in open with

Operator

our with Garik Instructions] [Operator Markets. And from comes question Capital first Loop Shmois

Garik Shmois

more of year all, to if EBITDA speak sounds is that with cadence wondering half than to driven. how respect of But to the the could I and Part the a half, to any about better sales bit is should about little first think second to as First you to sales how the margins was of softer unfolds. a as It year bit margin. going comp like color think and progress be how

R. Banyard

Yes. Thanks, Garik.

demand. I'd think pace be more from I a going a it's say year normal to of

demand, high the our look QX step our of you end a generated answer. So go step you up, that's and years, that in single the demand QX. towards but particularly from season, can And I'll the off new a the filings, starts in give QX into down you picks building QX robust as digits the revenue and of the ballpark in and the season. then of it spring It's digits from fall normal from construction I'd And to into in down have back then in say, holiday mid-single then you total into through into you QX and typically the standpoint. tapering QX, have side

and So a think in to normalization that shaping I from a of we of be from pattern. year And started some both is QX this demand pricing many up our standpoint as normal. normal standpoint. sort as ways that's And I seeing QX, think well in

effect of in because say market that we have promotional down overcome and of So trade really, still time, price, people normal cases. I'd back seeing some kind year the were only in promotion annualization at the last that that raising is still to some we any the I weren't all of things are at actually think, this and

year. of that's think I So the the trajectory

see we our performance against that. As

aligned I a in both quarter. as with through And Andi because, and you we've that lot then really well that QX, as tackle start we repair QX, into kind as the they we're think new that. coming of of highlighted launched that construction on go second again, getting programs and new construction, obviously, into really and doesn't good That and there's demand come today some And remodel. already. -- so demand programs helps until seen the uptake we those start through

Garik Shmois

you that little you targeting different to bit to markets about new color between into I products products those the ask speak of are any and hoping could But as bit recently and and a and a launched. It sounds detail. split to these points like want construction. targeting? more that was maybe price how more some specifically repair new remodel programs the different a did you're I it. of end Got it's go

R. Banyard

more but we've in past deliver specific if customer. chain to Yes. exactly they a several It's the to will, is need give -- getting of I'll work that MasterBrand think of years, launched example and trade-down you us down was to a take made program of different basically machine one plant I lot full ways But year, to the that footprint, best different -- the a that construction. can which sort progress a our the new a that with able lot And we've it, and behind lot and a last having of step operating is Align the understand to allowed really you in customers initiative capacity back then what your whole with the point to Grow that was deliver last be you supply The of properly minute. of way segment importantly, over an really on to for build our segmentation which in year, breadth a customers.

And can the I this. It's magic there's that any in to operating wins you're doing say there's you're of But really day. so have bit it's they a large that's them behind you slide new with full bang of -- provide often scale consumer -- if -- a you as talking customer it what a be and a slide in have And of product mass have There's construction, to wouldn't cost-effective very need. in no a very smaller lot no that the around well package which those what done changes to certain need eventually. of and successful, customers one operationally, problem big a do way. can I be that when very seamless solve mean you the to it, conforming work customers lot model able a we as you

process back the what standpoint. from are normal that very packages so benefit our year. difficult So the we're do a a there's configurations changes that's remember breadth that's of with And of of described customers, we they obviously, it's you that way to -- supply different do full -- bring But I'd style-focused big it. offering every that occur. a whatever MasterBrand that There and the style chain to to Then part able really about lot there's talk that around When customers we we're being are specific need. to launching. if it's a more years, products that I to COVID call

the say the think course. to that change that's to change -- the business helps I'd have our wouldn't to we part we up last got later again And lot new spent full and and of so that colors then We programs those more year this pace in year the styles and normal right things so you really really, And launched -- styles, designs. sorts bringing of customers. expect them necessarily new do some various various last coming of outperform market of lined of year we're of us the new those is things, way them of but and platter that tailoring the with we making a sure that's dynamic

Garik Shmois

That's stabilized now. anticipating first to it to on anything trade be of question -- just but of you're should be all? comfort you're just there we headwind the It out the give sounds maybe half us at helpful. been that year second is trade pace several it comments. indeed down for down in as Any curious year, of should the to that anniversary for a is the looking quarters worst the has of the like behavior going that Last in the stabilizing. half the It's

R. Banyard

Yes.

in And QX. has fruition. expected -- new construction followed feels the we say it's the that down frankly, think results we additional being been gave for both it's earnings in think been to and in the is particularly But a into received well very was there. received, market. pace in received came anticipate outperformed on that bit markets, R&R. like drive, able at the it case I to previous need was the bit is call the QX that's end I commentary trajectory the and changes it expectation were about well a I there no, our that I'd to of such activity products. more a That we the internal through different ultimately and any the this higher delivering no, reason trade construction end well the volume that new we the going don't for But -- and we're way

Operator

comes [Operator Mahoney Tom next with Our Instructions] question from Research. Cleveland

Tom Mahoney

normalizing. about finding moving success maybe find the you on promotions you consumers there question Do of follow up that any projects? Just types -- to having Or Any are leads into that Are promotions that activity, are incremental first them? the in more at lead convert give promotions customers aimed takes running driving interested are some It place. way those? stable. to characterize promotion just are to

R. Banyard

It's Yes. Tom. fair a question,

can on get things I are I your think other a larger bit. traffic than use the format promotional you channel drive say your in more going retailers. dealers those that to would that bit to retailers because arm it little depends a

forth. So you don't so and small dealer so your buy on to hammers to go and

the traffic and get first drive comes in broadly where you've product consumer more really down the pattern that's the buy major sliding of it's down, you that the to to logic promotion retailers then more them that your afford of can But to follow reached play. that use by they trade try the sort -- into So will point, once foot store.

you happy a If because to that at for as normalized point, activity targeted a you price that called talk you're I the about lower about to deals use get have they're them then something done. promotion certain into can excited them that's get and with trying you don't promotions more and why

a might if in down product, slide you For high-end very not current that that's kitchen, environment. have in if expensive able example, edge and a you're consumer but the you to doing them nudge the over probably them they're to need a

tactical does the where So very executive we side And are in they of We sales want of executing team to I the ways. an to lot It's how look -- kind of it adaptive as of a be. as at it tactical our of really think functioning team consumer moving then that. depend. on very we overview is

Tom Mahoney

[indiscernible] then up I relative environment guess, first transportation back Understood. all, And of been relative exposure at exposure things to into for think conversation. in here there Can describe pick MasterBrand you MasterBrand's upticks costs. then potential and as those then of as the transportation and competitors the also competitive I to to topic X the conversation. potentially tariffs for have And as the environment, as well recent back enter some the getting competitive a the cost XXXX

R. Banyard

I'll the it Yes, sure. about cost I apart. guess talk side I'll of break it.

basket of we in bake general. think, how obviously, our that it, about attention think into and inflation I paying we to we're

over periods. was you weathered team the business storm ever chain supply time and our probably have if 'XX could the worst in 'XX Our

so to we're nothing [indiscernible]. This And think is that. I compared pretty

pretty well the established or I both think ocean in world. is navigate process their So on even trucking the transportation on to have you when how scenarios,

pay attention we to it. So

it I over time. think monitor we'll

what the does market seeing cost. the But normalizes, so some I generally, is now. as happens you're uptick think right

if think the time. I reacts over [indiscernible] so but expensive more pricing go And and I a new little through the then always normal it's go then normalizes to horn, first is think yes, you around the can't

we're it. paying to attention So

any don't do to on Tariffs, government going is the that. ball I crystal on what have

matters again, it react that when we well as necessary, Commerce very States So to because we our representatives regard. obviously United if with cover in the we're various the active these as discussing a Department and of comes lot of

So with have of we Congress conversations lot around these topics. a

In during COVID think my the competitive performed good I I there. I ever because period of don't terms there's but outperformed that. well we not how against things they figuring years, them. the of would know dynamic competitors some the out tumultuous in bet out competitors

been that face out, of our them teens sure that think were some the great in competitive figured past that but pretty grew highlighted we've has It's our line well. that that's, Highlight very high us served have we So I'm the think, market I in space the I year. product in, mantra last of In performance. strong. product

of grew numbers, look would have may that I rate. if some you own challenge effect, trade with the would at any I been import our but those challenge There I cannibalization at -- whether of down they think still competitors, with

that's do as channel. part continue product, out I consumers our and our it product we because build So introductions to a product of and love to that think are have great

So that's do is every what out it's but the figure puzzle, to we how another day win. piece of competitive

Operator

Pawlak floor time. There I'll no are further back to remarks. for questions Farand the turn at closing this

Farand Pawlak

joining look This operator, thank interest concludes your here and the We future. you forward and in today. our speaking us you, call. and appreciate Thank to everyone, with you, support for

Operator

you Quarter joining XXXX Call. MasterBrand's Thank Conference for and Earnings Fourth Year Full

MasterBrand (MBC) 26 Feb 242023 Q4 Earnings call transcript