Masonite to ‘Closely Monitor’ North American Residential Market After Q2 ResultsAugust 9th, 2022 by Travis Rains
Masonite International Corporation reports a 15% increase in year-over-year net sales, from $662 million to $762 million, for the second quarter of 2022. With net income for the quarter recorded at $59 million, an increase of 67% from this time last year, president and CEO Howard Heckes called his company’s performance “solid.”
According to Masonite, the 15% increase in year-over-year net sales is attributable to a 19% increase in average unit price (AUP) paired with a 2% decrease from unfavorable foreign exchange, a 1% decrease in volume and a 1% decrease from a prior year divestiture. Residential sales for North America increased 23% from this time last year to $608 million. Masonite says that jump comes from a 21% increase in AUP and a 3% increase in volume, partially offset by a 1% decrease from unfavorable foreign exchange.
“Masonite delivered another solid quarter of year-over-year net sales and Adjusted EBITDA growth driven by steady demand and strong execution in our North American Residential segment,” Heckes says in a news release. “We have started shipments from two new door production facilities, in line with our strategy to deliver consistent and reliable supply.”
Adjusted EBITDA also increased by 7% year-over-year, while net sales in Europe dropped to $74 million, a 16% decrease from the second quarter of 2021. Architectural net sales decreased as well to $75 million, a 1% drop from the second quarter of 2021.
On the other hand, the 67% increase in net income was driven by a higher gross profit of $179 million for Q2 of 2022 in addition to the absence of $18 million in charges from 2021. Heckes also noted that the company introduced new products and marketing efforts in an effort to support additional growth.
“We believe that these initiatives, combined with thoughtful price-cost management, will allow us to effectively navigate near-term macro-economic headwinds and make continued progress toward our 2025 Centennial Plan,” he says.
Russ Tiejema, executive vice president and CFO, says the company will closely monitor the demand outlook for North American residential markets moving forward.
“Given the progress we have already made in executing our growth strategy we remain confident in our ability to meet or exceed our full-year outlook for Net Sales and Adjusted EBITDA,” he says.