Masonite International Corp. (“Masonite”) announced preliminary results for the full year and the fourth quarter ended December 29, 2013. In reporting the data, Fred Lynch, president and CEO, called 2013 “a critical year in Masonite’s business transformation.”
“The strategic tuck-in acquisition program we initiated three years ago has helped make us a market leader in the seven product categories we target and has positioned us well for what we expect to be a multi-year recovery in the U.S. housing market,” he said. “We are also encouraged by recently conducted retail price shops showing consumer prices for our products have increased which should translate into positive pricing trends across all of our North American residential distribution channels in 2014.”
“As expected and previously disclosed, 2013 fourth quarter Adjusted EBITDA will be below the fourth quarter of 2012 due in part to the inclusion of a $3.3 million business interruption insurance recovery in the year ago period and approximately $2.0 million dollars of operational items incurred in our North America segment such as the decision to slow certain production and reduce inventory levels, costs associated with optimizing our new automated manufacturing process at Denmark, South Carolina and incremental costs related to the recently added Home Depot Nevada and Arizona market,” says Mark Erceg, executive vice president and chief financial officer. “Additionally, our Europe, Asia and Latin America segment’s fourth quarter results were negatively impacted, by approximately $4.5 million dollars, related to the combination of the integration of Masisa, the decision to discontinue sales into Poland and product quality issues in Israel.”
Masonite expects to issue a release with final results for the full year and the fourth quarter ended December 29, 2013, and hold a related earnings call to discuss 2013 results, on Monday February 24, 2014.
Masonite has provided a range, rather than a specific amount, for the preliminary results described above primarily because its financial closing procedures for the year ended December 29, 2013 are not yet complete. Final results upon completion of its normal closing procedures may vary from the preliminary estimates described above. In addition, Masonite’s auditors have not yet completed their audit of the company’s results for the year ended December 29, 2013.