Masonite Reports Net Sales Increase for 2011 Fourth Quarter and Annual Results

March 2nd, 2012 by DWM Magazine

Masonite International Corp. has announced results for the fourth quarter and year ended December 31, 2011. The company reported that net sales increased for both the fourth quarter and year ended.

Net sales increased approximately 13.6 percent to $383.8 million in the fourth quarter of 2011, from $337.9 million in the fourth quarter of 2010. An increase in unit volumes resulted in $21.0 million of additional net sales in the fourth quarter 2011 compared to 2010 and acquisitions contributed $31.1 million of incremental sales in 2011, according to the report. Adjusted EBITDA for the fourth quarter increased to $22.3 million from $16.6 million in the fourth quarter of 2010.

Net sales in the North America segment increased 18.5 percent to $267.6 million in the fourth quarter of 2011, from $225.9 million in the fourth quarter of 2010. Net sales in the Europe, Asia and Latin America segment increased 1.4 percent to $92.0 million in the fourth quarter of 2011, from $90.7 million in the fourth quarter of 2010.

Total company gross profit increased to $49.6 million in the fourth quarter of 2011, from $36.9 million in the fourth quarter of 2010. Gross profit margin increased 200 basis points to 12.9 percent in the fourth quarter of 2011, from 10.9 percent in the fourth quarter of 2010, due primarily to improvements in pricing and reductions in materials and overhead costs, according to the company.

In the fourth quarter of 2011, selling, general and administrative expenses increased $7.0 million to $47.7 million, from $40.7 million in 2010. The increase primarily related to the consolidation of Birchwood and Marshfield and the professional fees incurred, according to the company.

For the year ended December 31, 2011, net sales increased 7.7 percent from the prior year to $1,489.2 million. A decline in unit volumes resulted in a $14.8 million decrease in net sales in 2011 compared to 2010 and acquisitions contributed $73.0 million of incremental sales in 2011. Adjusted EBITDA1 for the year ended December 31, 2011 increased to $82.0 million from $80.7 million in 2010.

Net sales in the North America segment increased 5.7 percent to $1,009.1 million in the year ended December 31, 2011, from $955.0 million in the prior year. Net sales in the Europe, Asia and Latin America segment increased 10.5 percent to $390.7 million in the year ended December 31, 2011, from $353.5 million in the prior year. Total company gross profit increased to $185.4 million in the year ended December 31, 2011, from $179.8 million in the prior year. Gross profit margin decreased 60 basis points to 12.4 percent in 2011, from 13.0 percent in 2010.

In the year ended December 31, 2011, selling, general and administrative expenses increased $10.0 million to $186.8 million, from $176.8 million in 2010. Selling, general and administrative expenses as a percentage of net sales decreased 30 basis points to 12.5 percent from 12.8 percent in 2010.

In other news, Masonite shareholders approved all three of the resolutions to the existing Shareholders Agreement and Articles during its special meeting of shareholders held yesterday, March 1. At the Meeting, 18,492,456 votes were cast, representing approximately 67 percent of the issued and outstanding shares of the company. The resolutions were approved by at least 95 percent of the votes cast. The amendments (a) install an enhanced public financial disclosure regime (effective immediately), (b) increase the current 290 shareholder limit to 490, reduce a quorum of a shareholders meeting from 25 percent to 15 percent and effect certain other administrative changes (effective immediately), and (c) upon a listing of the Company’s securities on the NYSE, NASDAQ or other nationally recognized stock exchange, implement other more substantive changes so that the company would have a governance structure more consistent with other listed companies.

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