Masonite's sales dip slightly in Q4 amid other improvements
Masonite International Corporation reported a slight sales decrease in the fourth quarter, though all other indicators pointed to progress for the manufacturer.
“2016 was a strong year for Masonite. With our sixth consecutive year of positive growth of average unit price, we delivered a 12.8% adjusted EBITDA margin which is close to what we achieved following the last housing peak despite U.S. housing starts still running at approximately sixty percent of that level,” said Fred Lynch, president and CEO. “All three of our business segments delivered adjusted EBITDA margin improvements in 2016 as we continued to strategically invest in growth initiatives and returned capital to shareholders in the form of our share repurchase program.”
Net sales were down 1% to $481 million for the quarter ended Jan. 1, largely owing to negative foreign exchange effects and the deconsolidation of Masonite Africa Limited in December 2015. An increase in total company sales volume and average unit price helped recover some of that lost momentum.
Meanwhile, net income for the quarter increased to $15 million versus a loss of $13 million in the year-ago period.
For the full fiscal 2016 year, net sales were up 5% to $2.0 billion, and net income increased to $99 million from a loss of $47 million in 2015.
Masonite issued its 2017 annual guidance, which involved full-year 2017 net sales growth in the range of 7% to 9%, as well as adjusted EBITDA in the range of $285 million to $305 million and diluted adjusted earnings per share of $4.10 to $4.60.
In addition to earnings, Masonite also announced the retirement of its chief customer experience officer and EVP Larry Repar.
Effective August 1, Repar will draw 22 years of service with Masonite to a close. He is expected to provide consulting services to Masonite beyond that date.
“Larry has been a highly valued member of our Leadership Team, and he will be greatly missed," said Lynch. "His deep knowledge of the door industry and lasting industry relationships have been instrumental to Masonite’s successful turnaround and subsequent growth.”
“It’s been a wonderful 22 years at Masonite,” said Repar. “From creating an industry leader through strategic acquisitions, to helping guide the company through the housing downturn, and most recently building innovative new digital capabilities and talent, it’s been a phenomenal experience working with great customers and the best employees in the industry. I believe Masonite is very well positioned for the future.”
“It’s been an honor and pleasure to work alongside Larry and we wish him the best in his next phase of life,” stated Lynch. “Like all great leaders, Larry has built a very capable team to continue our vision of making the process to select, purchase and install doors easy, fast and simple, and in doing so drive greater demand throughout the industry.“