MBC - Earnings call transcript Q3 2024

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Operator

Greetings, and welcome to the MasterBrand's Third Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host Farand Pawlak, Vice President of Investor Relations. Thank you, sir.

You may begin.

Farand Pawlak

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

section If Investors have on not at website do document, it our you available masterbrand.com. is this the of

on the uncertainties I'd those current serve statements either our in include forward-looking like statements forward-looking outlook market to remind and cause materially risks These remarks expectations you results associated or and that are to from session. this differ anticipated. to based that call will subject actual question-and-answer prepared currently are may and

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

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

of Dave outlook our our from business results, XXXX Andi. discussion financial today third a along Our will financial prepared remarks a by with update include quarter for XXXX followed

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

turn that, the Dave. over call let to me With

R. Banyard

for same Thanks, provide the year, line Brands perform that pleased the more quarter million by expectations. going afternoon, of with you today, released Net I'll to acquisition call. sales conference suffice We it's $XXX continued performance our We the last Farand. to us in in period but financial we XXXX third over Cabinetry I'm to our increase joining third say third everyone. XXXX our quarter driven shortly, earlier earnings appreciate quarter Supreme the Good and say, were detail on well. earlier in integration acquisition quarter. a X% of our

quarter customers The growth impact year-over-year our average a selling partially core net of while as by It's end noting, compared remodel as our Volume from year XXX stable. the was prior million of continued XXXX the This flat million margin the the strategic in price our related XX.X%, of did points further the a inflation cost We $X third and same margin contraction of our goods, lower repeat. sequential in to delivered investment due basis in EBITDA timing $XXX period this, strength offset worth market. acquisition not last in third same was is than anticipated price from the that with quarter lower in business. was year. in compared we soft the with adjusted a construction the initiatives third sequential was and of still quarter relatively the benefit repair offset realization to and in see by of headwind our servicing period demand new

sales of typical some these benefit favorable in earnings impacting anticipated, started implemented a maintain last of seasonal an effort pricing remember materials is seeing seeing we Accordingly, in and inbound we dynamic, relationship our but actions call, net in from our fourth you If quarter. This increases margin. began the the freight. we as and sequential price/cost cadence inflation the only to

margins, resulting seasonally the the margins, adjusted year. the for expected have quarter normalized adjusted fourth of margin more EBITDA higher to normal lower than in is EBITDA decremental third half saw quarter While the than a performance seasonally second normal

Shifting generation. strong bringing our $XX of quarter million. delivered year-to-date million, flow total at cash free We another to cash to $XXX

While remember to benefited XXXX this a the inventory ensure last of strategic time. at build release that delivery meant it's various is that chain XXXX year, from important service than through to lower and constraints supply

Given and our of in is remained full choppy performance as year-to-date, our in throughout of these end our associates results XXXX. hard market for confident quarter. flow ability we to the a on to cash feel the deliver year scale our income goal of Achieving free work excess demand the stated testament net

U.S. have begun direct by to grow single-family have With lap moderated to the customers. left, only we growth moderating from from which our market mid-single and slow focused continued demand the this well, growth during inventory This year housing year-over-year Census line year-over-year we on single-family the third from change the of construction demand the quarter. with softer Market I'd still in our seen our we like largely market saw caused quarter as reported expectations what to no perform year. signals with market of the third remainder overview digits. end slightly the our trend quarters U.S. Pockets the on the in starts Bureau to builders of digits start market of Customers was period, expectations. expect for production is for activity full new a mid-single for market a year. of to We that XXXX. With of in see provide brief stronger home demand line expectations. anticipated quarter spec prior has to fourth builder as with said, we short prior comparables increasingly

in of choppy fourth new recent demand market this wins, market the will gap and demand the potential of customer likely and I'll third us higher to the continued up and most quarter mitigate softer While a the expect begun have help will completions beyond. shortly, again, these future starts between seen in deliver us in we We pocket create which to believe market. trend growth allow quarter discuss end portion in this numbers soft

repair continue about consumers election, it customers when purchases. the appear low see to Shifting retail slow to in expectations political and relatively serviced to to and big and hesitant repair continue XXXX. of large by full choppiness sideline consumers the low in our remained the soft foot with times. specifically have to general remodel the quarter General the the ticket this traffic resulting and on uncertainty, and to comes This, our staying market today's for repair through to believe the of a be demand as dealer remodel declines and mid-single-digit demand customers, continuing and economic through committing a in coupled near-term year recovery. will end resulting our turnover extended challenge We decision prior year remains remodel with line end housing at items,

a at U.S., Similar remains Both the remains end Canada. housing briefly affordability and rate to the soft weak and the Looking new in new repair as construction expected. markets housing the Canadian despite and markets. remodel year-over-year challenge remain reductions multiple

end to with previous quarter, the We in outlook. fourth expect soft in our line continue demand market

shortly. Accordingly, anticipated, As will can full meaningful which you the XXXX for our see, largely we the as has Andi of demand remainder change played year outlook, in detail are year. reiterating we and end speak to greater no see market out

Since watching reduced turnover XX housing future and, This in and touching outlook, not not call, resulted I of target the more lower Reserve discussing reductions. activity to has stimulated future While the a demand. in last of is interest we the some the has points our term sense and worth think we not repair by get mortgage macroeconomic Federal remodel rate it's are earnings XXXX basis signaling therefore, are its yet related on and rate date. rates sustained to near indicators

demand, we by actions environment in the our would similar seen market XXXX. business until now. further one we a to next Reserve we benefit year be in could not end While the demand Accordingly, expect as see expect the in Federal enter stimulate sometime

With MasterBrand like any this strategic legacy backdrop how our on mind, acquisitions through drive that condition. market briefly accelerating and can market this like I'd doing on in in how efforts to initiatives our Supreme. we touch how continue to business focus and through in our growth profitability we're we're we

performance of Enabled. Tech progress Their all allowed was strategic associates. meaningful I across initiatives: only because and possible our the use make of our Aligned MasterBrand to our us of has dedication Lean As X way disciplined the Through mentioned, to of Lead Grow,

execute areas. to on and efficiency an these continue initiatives effort We targeted to drive in in the business grow

new recently new As discussed driving saw Align partners. our specific of these excellent top business. call, packages channel builders many with efforts how us large from I and to as product initiative builder first our launched awarding those our Grow through for growth We results quarter was earnings

financial we the our quarter. the We to growth performance production, these to the projects currently for Grow efforts efforts While and fourth have it to believe previous takes to into need of financial some future now third positioned we begun Align similar long-term see into go targets. to we're in achieve the will these quarter well and ensure outperform market ultimately time our benefit underway conditions produce

drive Lean problem-solving of the levels culture Lead Through Our to initiative a of all organization. continues at

delivering the Our associates some greatest equipped near with have efforts team Collectively, enhanced to infrastructure processes. cost positioned and to of to our our The of by way company our achieve of are savings in million leverage realized the believe digital periods. this improve quality. real-time opportunity an the continuous improvement incremental provided being have future quality more $XX data year with and we driving quality MasterBrand continues lower the savings, in we improvement in the goal throughout tools of us continuous

and better is team. products. is our digital how example providing infrastructure initiative just to our associates helping efficiently I jobs one Tech insights their our just quality of more our perform mentioned to is how our This enhancing Enabled

Beyond to Connect, rollout portal. with customer focus improving through connection our our partners continue our on X we of the channel improved walls, MasterBrand

us, insights our our share tools consumer positioning developing directly to win outgrow is and we're ability to to business channel enable on gain end a key their our for market. Better and customers believe consumer provide partners. focus the will customers Additionally, improving ourselves and focus the we to to

can see, of business are As conditions. there regardless market a the we of variety growth, ways investing you for in are

Now creating and commercial let me synergies operational update we're value and provide Supreme an this on through with how integration the in you acquisition.

X and before, synergies. compelling mentioned we combination companies' present the I've identifiable believe operations of As the

progress. make to begun already have We

close within transaction, act. facilities, teams of Iowa operations center our chain call, we've and solidify of announced the targeted the X Since our our began last to creating supply a and Following plans excellence. Waterloo, consolidation

the minutes begin service commitment plan enhanced customers our Given realizing local together. of of are our elements we XX excellence, center our staying reestablishing Through levels provided these in it X this these community. within other, bring to an offering to of savings facilities a obvious opportunity of industry-leading targeted each teams fixture to and

synergies understanding addition cost a of In potential we're now With quickly our commercial the integration underway, on dealers new opportunities legacy better have both identified, to offerings. transaction. the we we equipping working MasterBrand Supreme well and dealer this previously with product from

commercial partners are to know the this benefit take While opportunity excited by full some dealer many realize, of we our time of will it.

progress ability to on identify on Overall, extremely pleased have gives I performance in integration. and professionalism acquisitions confidence remain today the and our act the made value-creating combined our me further other Their the teams future. with in

turn that, to I'll the Andi. call With over

Andrea Simon

begin quarter I'll and provide thoughts year financial the full our I'll third then outlook. our an Dave. Thanks, of final around results, with overview XXXX quarter of our

same $XXX.X sales period the increase were net million, X% compared a quarter in $XXX.X to last year. Third million

activity growth line net period on to of anticipated This from product by which Legacy MasterBrand to year. the was exchange a roughly lower quarter. offset seasonal our mix. net in compared foreign contributed Our X% price top ASP the were promotion impact the of same was by year-over-year in X% partially due flat Volume the business and to and last growth normal sales decrease driven Supreme, inclusion

year driven third prior margin Gross $XXX in net of compared XX.X% third million year, to personnel tornado lower in two ASP $XXX.X the not damage related insurance to items and XX.X% in profit last quarter the Jackson, year. by mix, medical primarily freight inflation, last the our quarter attributable Gross proceeds same did the discrete period million was rebates to facility was profit to repeat. period, that insurance and Georgia product and in sustained compared

strategic under lower by We These and savings products cost margin gross accounting recorded continuous inventory $X.X as improvement variable our year. compared by adjustment initiatives purchase of partially required offset additional the were compensation in headwinds GAAP, a also quarter. and cost from prior the to sold million efforts

in in will take As to current the our moment. fourth effect is will a announced the speak in benefits our to quarter. reminder, This we a of reflected previously price I guidance, expect actions start which

restructuring to compensation the same local year, margin by million, in partially charges performance, were Supreme of and of positive tax previously The the primarily and was earnings million in Administrative driven XXXX. income increase effective $XX.X and Supreme representing was and compared million third decline lower by quarter, expense same the SG&A in costs, tax period Selling, $XX.X Income year. million $XX gross primarily relates effective amortization in and distribution-related higher incremental last different of tax compared Supreme. tax the a state interest items acquisition-related net General partially personnel driven in by to an jurisdictions variable costs, variable mix This acquisition-related million the acquisition million rate XXXX. decrease from of expense lower and period $XX.X the expenses nondeductible rate from discussed by XX.X% $XX.X higher income income XX.X% and favorable and and contribution quarter to inflation, from a was offset offset compared XX.X% million compensation expenses Net expense. XXXX third the in or XX.X% to last rate $XXX.X $XX.X

profit to share XXX.X the per Adjusted earnings decrease quarter per year in prior million a $X.XX were diluted of in the third quarter diluted diluted per last diluted XXX.X $X.XX quarter. $X.XX outstanding, earnings on of MasterBrand Adjusted by $XXX.X shares earlier. to based discussed in the compared Adjusted EBITDA expected. year, of third outstanding. in were in in primarily the earnings year $XXX.X Diluted Supreme share the XXXX of on shares million as based from share $X.XX compared million decrease performing period XX.X% as XX.X% the to comparable points the basis contracted prior legacy last gross compared with same year both margin period and million businesses was our EBITDA driven the XXX margin to

at debt resulting the XX-month a Turning of third trailing to end was EBITDA in trailing of up quarter adjusted the XXXX. to ratio of leverage was X.Xx, million in to year expectations. million EBITDA. includes under quarter end the at million, XX-month adjusted X.Xx third of at ratios ratio liquidity million $XXX.X credit facility pro net $XXX.X available cash. end debt with net Net EBITDA which balance $XXX.X line with sheet. our debt were a forma adjusted a basis, in quarter, the in On leverage our X.Xx Supreme These from Total $XXX.X full was quarter revolving the and

in X lowering in XXXX, date, anticipate within leverage than of the last net to Operating transaction million continue XX our additional We $XXX.X year, to $XXX.X our weeks less million September flow compared the was no for Supreme Xx activity. ended with XX, comparable cash assuming the years line expectations. period M&A to

capital improved As XXXX offset comparable the build, capital constraints period improvements and was by the XX due incremental planned both working a $XX.X the strategic a million weeks supply strategic of mass primarily XXXX, period. of reduction made flow improvements the operating inventory ability which was discussed cash release timing XXXX both services our for The payable expenditures this million were reminder, XX, in earlier. prior September XXXX our relates to inventory sales XXXX compared invoices days projects. various outstanding reflected benefited planned ended compared to address our and build pay negotiate of year weeks Capital at and nonrecurring XX, time. $XXX.X last again XX to to from The million impact to million the $XX.X year-over-year ended working that in shared to flow, decline release inventory outstanding and terms, collect in primarily year-over-year. to our Free year-over-year September Similar $XXX.X year. XXXX, for days partially cash the increase our

Given the common shares repurchases net stock of investing not are reducing our capital repurchase repurchase our business in This priorities our existing our left share we million in under unchanged at $XX.X and primary shares authorization. leaves allocation and our leverage, quarter. year-to-date total the additional any XXX,XXX third did

outlook. our to Turning

net we stated demand market expect our year conditions, is mentioned, from market still our to demand playing end out low Dave as digits and as deliver down year-over-year and year initiatives organic last our full quarter. This quarter Despite past end we our full to As XXXX growth as market strategic soft outperform in of we these expect be sales as investments single actions. the the benefit and anticipated, confidence outlook our for fourth well current announced previously and pricing low gives anticipated single-digit declines. ability us to underlying in

to expect quarter, departure from anticipated our third the sales to normal impact the year-over-year and a relatively of at continue we downs quarter, we be a XXXX. last onset stated are from lap we the to fourth seasonality. as expect promotional across pace net these Trade a but in quarterly and to As similar consistent moderate activity perspective continue

Additionally, [indiscernible] price recently we actions. from to expect benefit implemented

sales traction offerings normal new anticipate in Supreme quarter, contributing quarter the to integration with and is expectations growth anticipate perform the the channel-specific year. line net the lower will to mid-single outperform We the in digits also our and our full we're our quarter with efforts allow percentage year. getting to in within products what to continue typically for a We fourth fourth seasonality

our of low reiterating XXXX year-over-year are single full sales outlook, a we basis, combined digits. a On year net increase

slightly full related our XX.X%, margins reiterating range and flat adjusted We to XXXX. to are of of adjusted also XX% million $XXX to up year-over-year year EBITDA to EBITDA expected $XXX million compared

prior guidance. $XX expense consistent to at million. tax XX% XX% anticipated of our approximately our interest unchanged rate expected $XX remains Similarly, Our with million remains to

Supreme. earnings the to the $X.XX, the absent exclusion would the accretive to to adjusted range $X.XX continue includes of that year XXXX. still adjusted amortization, per expect in worth We which Supreme acquisition noting for be year our favorable share diluted in again impact of earnings to be It's share diluted fiscal per full

excess range and to $X expenditures raising our capital $XX of million approximately remains be onetime flow income above goal the slightly million, driven million in million tightening X.Xx the investment we for of investment range, long-term midpoint to This at integration continue inclusive free Despite at though modest of availability and Supreme. X.Xx. impact our in cash certain to expect $XX net combined to are of the depreciation, the approximately our equipment. We which $XX million from XXXX, of revised a range $XX of capital of timing projects of includes CapEx by stated to

Now the I'd turn to call back like Dave. to

R. Banyard

Thank you, Andi.

the year. markets this our end way While since a and time, remained at with This we're come financial joined happy this organization in has performance operational XXXX. pleased long I

in to ability and I'm for this business near execute growth of. long-term something extremely the investing proud Our in environment, is while

us Our the to continued the are acquisition and only stated eventual outperform our for over long the focus not investments positioning to market growth meet our goal participate market on recovery strategy, Supreme to term. in the

your always, and to support look future you updating appreciate forward As calls. on we

that, up Q&A. Now the with call to open I'll

Operator

Instructions] conducting [Operator now question-and-answer first question Loop We'll be you. Garik Capital Our a Thank with session. comes Shmois Markets. from

Garik Shmois

pocket just construction hoping Nice visibility more some go there. and into can could the have volumes and air you're side anticipating new your quarter. you on view volume despite that I grow the you was on the you color

R. Banyard

well and we in that still saw into fourth market as will Well, in quarter third what in off, growing is the new Garik. we're the construction quarter. I coming first Thanks, seeing say as Yes. the

fourth they're really last So current was run though year rate even ramp the running. to beginning up of the that quarter in the the

air with of I seeing did, kind frame. was And time some and think a growth. July really it we're still the pocket

it wasn't If but huge, you there. do math, it was the

normal gives time completion, say of a is of the so think to they have And this little pocket pocket. into this could it go which bit could you to -- closer us have combination just it. that the a of seasonal I we you when that air year, on there of when slowdown an a It pause get side the be air other

good really -- to of those On single-family installing get our we point some through of kind where a the business. business earlier lot of that actually it year, construction part this. takes we in us done heard flip in to side And wins that's enough cover the think the of new cabinets, the time you're and have the that, new to have

be muted the of year-over-year terms for We expect to still a that growth. area quarters in we compared our growth little So business in will though it the see in quarter. prior fourth

Garik Shmois

sense. makes Okay. That

pricing piece, XQ. what softness like the pretty in the in it On the it's with you consistent seems saw just quarter,

color So any kind like-for-like? mix a [indiscernible] to sequentially, much down trend trade wanted of the if how there's the in more been just just down change was bit get of the little pricing I and versus

R. Banyard

year. what It's to been experiencing Yes. very similar been we've all

our say is we're I the new side trade that in to see promotion effect. repair it new that bit of more pricing would the portion more down construction. the in think The in construction in an side, gets hits a remodel getting effect I characteristic business. you close and annualizing And and more I think of the is

are again, the the rate. costs lower really to houses rate into builders looking at a hasn't mortgage put stabilized So lower for

they're So the and looking to of cost they're the buy continuing for ways decrease to house. down

continuing see we're so And to that.

the for or I'd rate of That that be out not more, to but was back cuts think maybe coming, the rate. year good. some into point, going It's ago to I frankly, And I to we're time -- take a that we'd But know. will which if of I clarify market, and get on rates rates maybe say, ease work tenure dial think think more bit help. will is itself seeing are help the maybe mortgage in I this to help just think, of Fed the for going at stabilized. you're activity mortgage today going don't what the hopefully pressure election is a the not, bond in hopefully or the I some that's least that some I might future, happen the to at

that side. on So that's

very remodel the a I how now. not of activity. market just competitive think is. the market, it's It's right and ton There's in repair

with here of And quarter, we've But fourth your nimble to just that the pretty token, same we be increase the have so much the seeing across board. price pricing. and by the in are had you the effects

Our competitors that. on have followed us

volume near in that term is all. I feeling think there, market -- trajectory is the really price at not So the changing the general in the

seeing I that -- quarter. of the we're far benefits think here so the it's So in fourth

Andrea Simon

Yes, of in that we're inflation correct QX. seeing was the price fourth and kind lay that quarter itself,

Garik Shmois

Okay.

the Just the discussed view, on commercial bit synergies prepared remarks. little in a

you can bit go Just color into more a are little hoping as there. to what plans your

R. Banyard

Yes.

the First to part is get sales organized. team

You're and That takes them some together. taking time. X bringing organizations

Next the that of plan with a force. that the step is spread a it. lot to kind are the and out step portion to to then there's bringing really combined done training identify has products line. into you're when go getting of you the we is on of dealer across next that And And network sales on new

And process now. doing we're the that in of so

synergies, commercial in don't commercial also because about we and anticipate speed. it us why some to for bring a, talk results those really partly up time entire thesis our So our take the network I -- wouldn't deal to but does

and You're of doing learning in that cases, the so right now. a in whole new some process product line we're and

to that product to when completion, comes and expect lines. becoming dealers you start as those And active those would selling that's

hard to do. to organizations middle other entire say, great. The X and of really different together. work progress It's us. has team off are, is middle the frankly for innings rallied compete been the how hats But team's that. about exciting let's in together well, their of against that they're now that, how And my we're and we're to for who used which excited that's they going So and each

will can go really how start. this, talk what come a we where we be from more to where of think say on time that, estimates we're So with Garik. But the we off XXXX more with and can I'd to about specificity a much. our great

Garik Shmois

Okay.

luck. of Best good. Sounds

Operator

comes next Associates. question with Adam from Zelman Our & Baumgarten

Adam Baumgarten

the Just given if looks price do increases at the closer digits. to basis on low maybe like some mix headwinds, was guess could we XQ? severe it on think look the you a and single just less I down that in XQ year-over-year flat ASP, get

R. Banyard

Yes.

say if it's being too add -- in. it's I you in But specificity think the think the to at little mean, to I you I if I up hard fourth coming [indiscernible], tell. in -- I early with yes, but this it's we're mean think say point. we're I'd a quarter. anticipating

it plans somewhere that. think our I around have

Adam Baumgarten

Okay. Got And promotional on just it. environment. the then

as normal part that were basis. because kind kind of you year-over-year of promotions Or deem they pickup? the a quarter? is just of kind see the as pressure the cited some timing You I ASP of that sense accelerate thing you the they have last or Did Or a We're did this over a on normal? of year so. it

R. Banyard

Yes.

it's promotional biased getting it is seeing certain call little be a I retailer and dealer normal out you're normal. may but different think -- that of pretty in so it's the think margin, promotions, I the of I while, wouldn't but the outsized, may it's material. fairly it the on side, -- be it's in normal What that's once There's a both or seeing you're you'll see amount something more activity. a volume way, bit more

Adam Baumgarten

it. wins Got that homebuilder a large color talked bit then you maybe should just Maybe quarter. new regionals? in And there. in on Were detail fourth more the Okay. help more national the about just some construction growth support builders, that they some

R. Banyard

the XX. us the off for in some in now of is then top you but how XXX part Yes, timing is these -- it's little when the plays choppiness XX relevant predominantly our right those out. that predominantly is prepared indicative projects look large top of why we kick our in next the And across just the at market and opportunities remarks made we comments when of we did in you and see XX, the the dips where top

get mean, but the revenue the wins So close the we I are start or until don't get actually completing they frankly. there, to project,

So a start they the clear -- -- is until the always crystal it's never it's building bit timing neighborhood. little a

at in will come to generally that go continue quarter know It's me anything that we I there's -- of the or seeing tells anticipate as don't I just that down. pace question it's that, learn the either going. level more they've activity We'll there. them of through into next and will through builders builders but -- that rest it's a year. this up the see have. the that they're deviation So been continue been third from the a quarter, we we've speaking, larger

Operator

question Our Tom from Cleveland with comes Mahoney next Research.

Thomas Mahoney

well, us can build about typical just and or we a trend the give to in expect consider third had rolls moving year? if of a with off there And you you have you how the guys wanted independent inventory to years inventory in the on there's of little sequentially should other company, quarter? you for rightsizing an that is fourth ask I pieces bit what X see as typical it or some quarter as if

R. Banyard

And internal clarify, Tom, -- inventory? assume just Yes. to inventory talking you're about our I

Thomas Mahoney

yes. Correct,

R. Banyard

Okay. Yes, it's a could in tell -- the had X normal frankly Tom, years, haven't. I wish year past that I you we've

potentially with part, topic. coming there a in remember you this on of little bit have summer, inventory facilitated build and was of the in that. January a ports, ahead that issue same We strike back another our If that to

of year last months inventory the throughout inventory -- X, I think I normal busier and builds of the rains our third say typically beginning summer had normal think inventory a the of the quarter. the ahead in in that year we've don't cadence through season So I'd is

what something part that highlighting But getting were was challenge. abnormal. frankly, we of shipping was is you're shipping that -- potential ahead of So

been a a Fortunately, or week so, it's but it have only could worse. lot

were that. ahead get trying we so to a little bit And of

think port we bleeding have you off Year. other to then plus the coming got Lunar now, back new about year, you issues, that potential have plus but into New we're So

So ride little they're material it's there's of through wild but been -- bit a a team, for our it. managing

we I job variables of think nice as controlling kind we've those done a of can. best

Andrea Simon

looking is inventory of mind, accounting increase in balance when the addition sheet purchase the year-on-year, just as the Keep that and well. then Supreme at majority of you're the

that seeing. the that's a of increase lot So you're

Thomas Mahoney

the over that from supply of the some storms XX there perspective last consider And call guys demand Good how when acting occurred chain to around potential supply about or makes Yes. perspective days, you impacts is it these? to business or think out, a a XX are any think sense. whether you then the historically from as about have

R. Banyard

Yes. supply, no demand.

present know makes call because material those business construction new didn't immediate It be the But regions along weeks. you back where of a we run a to particularly large big of a in the of the wave. damage that that a remodeling, like does the in come see insurance we given line it -- do for the tend but there number situation think. take it's claims business. for It bit that It Florida. homes don't need to a fairly in in magnitude we out things choppiness think in while, have long found it's coast we quickly, few a I little I a not

Florida, teams not are whether And that don't as business. that based we coast. on on it's And in in our necessarily we're anticipate so of movement the kind the [indiscernible], any material

it take a -- of to our there. care it. we lot generally, live work do associates sure make So we does want attention that pay there of We and to

to on pay do it's think a don't attention we I but to put it, us. for So a something headline lot of

Operator

There time. further floor closing would are for over comments. like turn now Farand I questions Pawlak back this to the no at to

Farand Pawlak

you everyone, and today's includes your We us you, and joining you, for thank which forward Thank appreciate future today. operator, look on and to speaking support calls, interest call. with

Operator

you time. participation. at your lines this disconnect your You may for Thank

MasterBrand (MBC) 5 Nov 242024 Q3 Earnings call transcript