Masco Corporation Reports Third Quarter 2019 Results

Key Results

  • Sales increased 2 percent to $1.9 billion; in local currency, sales increased 3 percent
  • Operating profit for the quarter increased 10 percent to $316 million; adjusted operating profit increased 8 percent to $326 million
  • Earnings per share from continuing operations increased 16 percent to $0.64 per share; adjusted earnings per share from continuing operations increased 11 percent to $0.68 per share
  • Updating 2019 anticipated earnings per share from continuing operations to be in the range of $2.41 - $2.45 per share, and on an adjusted basis, to be in the range of $2.52 - $2.56 per share
  • Windows businesses accounted for as discontinued operations

LIVONIA, Mich.--()--Masco Corporation (NYSE: MAS), one of the world’s leading manufacturers of branded home improvement and building products, reported its third quarter results.

“We delivered solid sales and operating profit growth in the quarter, as well as strong margin expansion,” said Masco President and CEO, Keith Allman. “This performance was driven by growth in both our Plumbing Products and Decorative Architectural Products segments. Additionally, we continued our focus on creating shareholder value and returned $186 million to shareholders through share repurchases and dividends during the quarter.”

2019 Third Quarter Commentary

  • On a reported basis, compared to third quarter 2018:
    • Net sales increased 2 percent to $1.9 billion; in local currency, net sales increased 3 percent
    • In local currency, North American sales increased 3 percent and international sales increased 5 percent
    • Gross margins increased 150 basis points to 34.2 percent from 32.7 percent
    • Operating profit increased 10 percent to $316 million
    • Operating margins increased 120 basis points to 16.2 percent from 15.0 percent
    • Income from continuing operations increased to $0.64 per share, compared to $0.55 per share
  • Compared to third quarter 2018, results for key financial measures, as adjusted for certain items (see Exhibit A) and with a normalized tax rate of 25 percent, were as follows:
    • Gross margins increased 80 basis points to 34.4 percent compared to 33.6 percent
    • Operating profit increased 8 percent to $326 million from $303 million
    • Operating margins increased 80 basis points to 16.7 percent compared to 15.9 percent
    • Income from continuing operations increased to $0.68 per share, compared to $0.61 per share
  • Liquidity at the end of the third quarter was $475 million
  • Repurchased 3.8 million shares in the quarter

2019 Third Quarter Operating Segment Results

  • Plumbing Products’ net sales increased 1 percent (3 percent excluding the impact of foreign currency) due to growth in both North America and international
  • Decorative Architectural Products’ net sales increased 5 percent due to strong growth in paints and other coating products
  • Cabinetry Products’ net sales decreased 3 percent due to mix, partially offset by pricing

“We are pleased with our performance in the third quarter and with the progress we are making on the anticipated divestitures of our Cabinetry and Windows businesses. During the quarter we completed the sale of our UK Window business and announced the signing of a definitive agreement to sell our Milgard Windows and Doors business,” said Allman. “After accounting for our Windows businesses as discontinued operations, we now expect adjusted earnings per share from continuing operations to be in the range of $2.52-$2.56 for the full year.”

About Masco

Headquartered in Livonia, Michigan, Masco Corporation is a global leader in the design, manufacture and distribution of branded home improvement and building products. Our portfolio of industry-leading brands includes Behr® paint; Delta® and Hansgrohe® faucets, bath and shower fixtures; KraftMaid® and Merillat® cabinets; Kichler® decorative and outdoor lighting; and HotSpring® spas. We leverage our powerful brands across product categories, sales channels and geographies to create value for our customers and shareholders. For more information about Masco Corporation, visit www.masco.com.

The 2019 third quarter supplemental material, including a presentation in PDF format, is available on Masco’s website at www.masco.com.

Conference Call Details

A conference call regarding items contained in this release is scheduled for Wednesday, October 30, 2019 at 8:00 a.m. ET. Participants in the call are asked to register five to ten minutes prior to the scheduled start time by dialing (855) 226-2726 (855-22MASCO) and from outside the U.S. at (706) 679-3614. Please use the conference identification number 4086468. The conference call will be webcast simultaneously and in its entirety through Masco’s website. Shareholders, media representatives and others interested in Masco may participate in the webcast by registering through the Investor Relations section on Masco’s website.

A replay of the call will be available on Masco’s website or by phone by dialing (855) 859-2056 and from outside the U.S. at (404) 537-3406. Please use the conference identification number 4086468. The telephone replay will be available approximately two hours after the end of the call and continue through November 30, 2019.

Safe Harbor Statement

This press release contains statements that reflect our views about our future performance and constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “outlook,” “believe,” “anticipate,” “appear,” “may,” “will,” “should,” “intend,” “plan,” “estimate,” “expect,” “assume,” “seek,” “forecast,” and similar references to future periods. Our views about future performance involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. We caution you against relying on any of these forward-looking statements.

Our future performance may be affected by the levels of residential repair and remodel activity and new home construction, our ability to maintain our strong brands and reputation and to develop new products, our ability to maintain our competitive position in our industries, our reliance on key customers, the cost and availability of raw materials and increasing tariffs, our dependence on third-party suppliers, risks associated with international operations and global strategies, our ability to achieve the anticipated benefits of our strategic initiatives, including the potential divestitures of our Cabinetry and Windows businesses, our ability to successfully execute our acquisition strategy and integrate businesses that we have and may acquire, our ability to attract, develop and retain talented personnel, risks associated with our reliance on information systems and technology, and our ability to achieve the anticipated benefits from our investments in new technology. These and other factors are discussed in detail in Item 1A, “Risk Factors” in our most recent Annual Report on Form 10-K, as well as in our Quarterly Reports on Form 10-Q and in other filings we make with the Securities and Exchange Commission. Any forward-looking statement made by us speaks only as of the date on which it was made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. Unless required by law, we undertake no obligation to update publicly any forward-looking statements as a result of new information, future events or otherwise.

MASCO CORPORATION

Condensed Consolidated Statements of Operations - Unaudited

For the Three and Nine Months Ended September 30, 2019 and 2018

(in millions, except per common share data)

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2019

 

2018

 

2019

 

2018

Net sales

$

1,947

 

 

$

1,904

 

 

$

5,787

 

 

$

5,743

 

Cost of sales

1,282

 

 

1,281

 

 

3,813

 

 

3,832

 

Gross profit

665

 

 

623

 

 

1,974

 

 

1,911

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

349

 

 

337

 

 

1,047

 

 

1,041

 

Impairment charge for other intangible assets

 

 

 

 

9

 

 

 

Operating profit

316

 

 

286

 

 

918

 

 

870

 

 

 

 

 

 

 

 

 

Other income (expense), net:

 

 

 

 

 

 

 

Interest expense

(39

)

 

(38

)

 

(119

)

 

(117

)

Other, net

(8

)

 

 

 

(16

)

 

(12

)

 

(47

)

 

(38

)

 

(135

)

 

(129

)

Income from continuing operations before income taxes

269

 

 

248

 

 

783

 

 

741

 

 

 

 

 

 

 

 

 

Income tax expense

73

 

 

67

 

 

202

 

 

188

 

Income from continuing operations

196

 

 

181

 

 

581

 

 

553

 

 

 

 

 

 

 

 

 

(Loss) income from discontinued operations, net

(58

)

 

10

 

 

(64

)

 

23

 

Net income

138

 

 

191

 

 

517

 

 

576

 

 

 

 

 

 

 

 

 

Less: Net income attributable to noncontrolling interest

12

 

 

11

 

 

35

 

 

36

 

Net income attributable to Masco Corporation

$

126

 

 

$

180

 

 

$

482

 

 

$

540

 

 

 

 

 

 

 

 

 

Income (loss) per common share attributable to Masco Corporation (diluted):

 

 

 

 

 

 

 

Income from continuing operations

$

0.64

 

 

$

0.55

 

 

$

1.87

 

 

$

1.66

 

(Loss) income from discontinued operations, net

(0.20

)

 

0.03

 

 

(0.22

)

 

0.07

 

Net income

$

0.44

 

 

$

0.58

 

 

$

1.65

 

 

$

1.73

 

 

 

 

 

 

 

 

 

Average diluted common shares outstanding

287

 

 

306

 

 

290

 

 

309

 

 

 

 

 

 

 

 

 

Amounts attributable to Masco Corporation:

 

 

 

 

 

 

 

Income from continuing operations

$

184

 

 

$

170

 

 

$

546

 

 

$

517

 

(Loss) income from discontinued operations,

net

(58

)

 

10

 

 

(64

)

 

23

 

Net income attributable to Masco Corporation

$

126

 

 

$

180

 

 

$

482

 

 

$

540

 

Historical information is available on our website.

MASCO CORPORATION

Exhibit A: Reconciliations - Unaudited

For the Three and Nine Months Ended September 30, 2019 and 2018

(dollars in millions)

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2019

 

2018

 

2019

 

2018

Gross Profit, Selling, General and
Administrative Expenses, and Operating
Profit Reconciliations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

1,947

 

 

$

1,904

 

 

$

5,787

 

 

$

5,743

 

 

 

 

 

 

 

 

 

Gross profit, as reported

$

665

 

 

$

623

 

 

$

1,974

 

 

$

1,911

 

Rationalization charges

5

 

 

2

 

 

7

 

 

5

 

Kichler inventory step up adjustment

 

 

15

 

 

 

 

40

 

Gross profit, as adjusted

$

670

 

 

$

640

 

 

$

1,981

 

 

$

1,956

 

 

 

 

 

 

 

 

 

Gross margin, as reported

34.2

%

 

32.7

%

 

34.1

%

 

33.3

%

Gross margin, as adjusted

34.4

%

 

33.6

%

 

34.2

%

 

34.1

%

 

 

 

 

 

 

 

 

Selling, general and administrative expenses, as reported

$

349

 

 

$

337

 

 

$

1,047

 

 

$

1,041

 

Rationalization charges

4

 

 

 

 

4

 

 

 

Professional fees related to potential divestiture

1

 

 

 

 

4

 

 

 

Selling, general and administrative expenses, as adjusted

$

344

 

 

$

337

 

 

$

1,039

 

 

$

1,041

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses as percent of net sales, as reported

17.9

%

 

17.7

%

 

18.1

%

 

18.1

%

Selling, general and administrative expenses as percent of net sales, as adjusted

17.7

%

 

17.7

%

 

18.0

%

 

18.1

%

 

 

 

 

 

 

 

 

Operating profit, as reported

$

316

 

 

$

286

 

 

$

918

 

 

$

870

 

Rationalization charges

9

 

 

2

 

 

11

 

 

5

 

Kichler inventory step up adjustment

 

 

15

 

 

 

 

40

 

Impairment charge for other intangible assets

 

 

 

 

9

 

 

 

Professional fees related to potential divestiture

1

 

 

 

 

4

 

 

 

Operating profit, as adjusted

$

326

 

 

$

303

 

 

$

942

 

 

$

915

 

 

 

 

 

 

 

 

 

Operating margin, as reported

16.2

%

 

15.0

%

 

15.9

%

 

15.1

%

Operating margin, as adjusted

16.7

%

 

15.9

%

 

16.3

%

 

15.9

%

Historical information is available on our website.

MASCO CORPORATION

Exhibit A: Reconciliations - Unaudited

For the Three and Nine Months Ended September 30, 2019 and 2018

(in millions, except per common share data)

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2019

 

2018

 

2019

 

2018

Income Per Common Share Reconciliations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income taxes, as reported

$

269

 

 

$

248

 

 

$

783

 

 

$

741

 

Rationalization charges

9

 

 

2

 

 

11

 

 

5

 

Kichler inventory step up adjustment

 

 

15

 

 

 

 

40

 

Impairment charge for other intangible assets

 

 

 

 

9

 

 

 

Professional fees related to potential divestiture

1

 

 

 

 

4

 

 

 

(Earnings) from equity investments, net

(1

)

 

 

 

(1

)

 

(2

)

Income from continuing operations before income taxes, as adjusted

278

 

 

265

 

 

806

 

 

784

 

Tax at 25% rate

(70

)

 

(66

)

 

(202

)

 

(196

)

Less: Net income attributable to noncontrolling interest

12

 

 

11

 

 

35

 

 

36

 

Income from continuing operations, as adjusted

$

196

 

 

$

188

 

 

$

569

 

 

$

552

 

 

 

 

 

 

 

 

 

Income from continuing operations per common share, as adjusted

$

0.68

 

 

$

0.61

 

 

$

1.96

 

 

$

1.79

 

 

 

 

 

 

 

 

 

Average diluted common shares outstanding

287

 

 

306

 

 

290

 

 

309

 

Outlook for the Twelve Months Ended December 31, 2019

 

Twelve Months Ended
December 31, 2019

 

Low End

 

High End

Income Per Common Share Outlook

 

 

 

 

 

 

 

Income from continuing operations per common share

$

2.41

 

 

$

2.45

 

Rationalization charges

0.04

 

 

0.04

 

Impairment charge for other intangible assets

0.03

 

 

0.03

 

Professional fees related to potential divestiture

0.02

 

 

0.02

 

Allocation to participating securities per share (1)

0.02

 

 

0.02

 

Income from continuing operations per common share, as adjusted

$

2.52

 

 

$

2.56

 

(1) Represents the impact of distributed dividends and undistributed earnings to unvested restricted stock awards in accordance with the two-class method of calculating earnings per share.

Historical information is available on our website.

MASCO CORPORATION

Condensed Consolidated Balance Sheets and Other Financial Data - Unaudited

September 30, 2019 and December 31, 2018

(dollars in millions)

 

 

September 30, 2019

 

December 31, 2018

Balance Sheet

 

 

 

Assets

 

 

 

Current Assets:

 

 

 

Cash and cash investments

$

475

 

 

$

553

 

Receivables

1,177

 

 

1,068

 

Prepaid expenses and other

105

 

 

90

 

Inventories

924

 

 

904

 

Assets held for sale

111

 

 

151

 

Total Current Assets

2,792

 

 

2,766

 

 

 

 

 

Property and equipment, net

1,017

 

 

1,037

 

Operating lease right-of-use assets

183

 

 

 

Goodwill

687

 

 

692

 

Other intangible assets, net

264

 

 

289

 

Other assets

85

 

 

100

 

Assets held for sale

492

 

 

509

 

Total Assets

$

5,520

 

 

$

5,393

 

 

 

 

 

Liabilities

 

 

 

Current Liabilities:

 

 

 

Accounts payable

$

879

 

 

$

851

 

Notes payable

208

 

 

8

 

Accrued liabilities

682

 

 

676

 

Liabilities held for sale

140

 

 

149

 

Total Current Liabilities

1,909

 

 

1,684

 

 

 

 

 

Long-term debt

2,771

 

 

2,971

 

Other liabilities

684

 

 

561

 

Liabilities held for sale

133

 

 

108

 

Total Liabilities

5,497

 

 

5,324

 

 

 

 

 

Equity

23

 

 

69

 

Total Liabilities and Equity

$

5,520

 

 

$

5,393

 

 

As of September 30,

 

2019

 

2018

Other Financial Data

 

 

 

Working Capital Days

 

 

 

Receivable days

53

 

 

54

 

Inventory days

71

 

 

76

 

Payable days

69

 

 

75

 

Working capital

$

1,222

 

 

$

1,204

 

Working capital as a % of sales (LTM)

16.0

%

 

16.2

%

Historical information is available on our website.

MASCO CORPORATION

Condensed Consolidated Statements of Cash Flows and Other Financial Data - Unaudited

For the Nine Months Ended September 30, 2019 and 2018

(dollars in millions)

 

 

Nine Months Ended
September 30,

 

2019

 

2018

Cash Flows From (For) Operating Activities:

 

 

 

Cash provided by operating activities

$

754

 

 

$

729

 

Working capital changes

(149

)

 

(75

)

Net cash from operating activities

605

 

 

654

 

 

 

 

 

Cash Flows From (For) Financing Activities:

 

 

 

Retirement of notes

 

 

(114

)

Purchase of Company common stock

(440

)

 

(354

)

Cash dividends paid

(105

)

 

(98

)

Dividends paid to noncontrolling interest

(42

)

 

(89

)

Proceeds from the exercise of stock options

23

 

 

8

 

Employee withholding taxes paid on stock-based compensation

(21

)

 

(38

)

Decrease in debt, net

(3

)

 

(1

)

Credit Agreement and other financing costs

(2

)

 

 

Net cash for financing activities

(590

)

 

(686

)

 

 

 

 

Cash Flows From (For) Investing Activities:

 

 

 

Capital expenditures

(111

)

 

(160

)

Acquisition of business, net of cash acquired

 

 

(549

)

Proceeds from disposition of business, net of cash disposed

2

 

 

 

Other, net

5

 

 

108

 

Net cash for investing activities

(104

)

 

(601

)

 

 

 

 

Effect of exchange rate changes on cash and cash investments

10

 

 

8

 

 

 

 

 

Cash and Cash Investments:

 

 

 

Decrease for the period

(79

)

 

(625

)

At January 1

559

 

 

1,194

 

At September 30

$

480

 

 

$

569

 

 

As of September 30,

 

2019

 

2018

Liquidity

 

 

 

Cash and cash investments

$

475

 

 

$

560

 

Historical information is available on our website.

MASCO CORPORATION

Segment Data - Unaudited

For the Three and Nine Months Ended September 30, 2019 and 2018

(dollars in millions)

 

 

Three Months Ended
September 30,

 

 

 

Nine Months Ended
September 30,

 

 

 

2019

 

2018

 

Change

 

2019

 

2018

 

Change

Plumbing Products

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

1,006

 

 

$

992

 

 

1

%

 

$

2,958

 

 

$

2,995

 

 

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit, as reported

$

179

 

 

$

177

 

 

 

 

$

530

 

 

$

534

 

 

 

Operating margin, as reported

17.8

%

 

17.8

%

 

 

 

17.9

%

 

17.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rationalization charges

9

 

 

2

 

 

 

 

11

 

 

4

 

 

 

Accelerated depreciation related to rationalization activity

 

 

 

 

 

 

 

 

1

 

 

 

Operating profit, as adjusted

188

 

 

179

 

 

 

 

541

 

 

539

 

 

 

Operating margin, as adjusted

18.7

%

 

18.0

%

 

 

 

18.3

%

 

18.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

20

 

 

20

 

 

 

 

59

 

 

56

 

 

 

EBITDA, as adjusted

$

208

 

 

$

199

 

 

 

 

$

600

 

 

$

595

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Decorative Architectural Products

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

710

 

 

$

673

 

 

5

%

 

$

2,110

 

 

$

2,024

 

 

4

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit, as reported

$

134

 

 

$

104

 

 

 

 

$

380

 

 

$

338

 

 

 

Operating margin, as reported

18.9

%

 

15.5

%

 

 

 

18.0

%

 

16.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Kichler inventory step up adjustment

 

 

15

 

 

 

 

 

 

40

 

 

 

Impairment charge for other intangible assets

 

 

 

 

 

 

9

 

 

 

 

 

Operating profit, as adjusted

134

 

 

119

 

 

 

 

389

 

 

378

 

 

 

Operating margin, as adjusted

18.9

%

 

17.7

%

 

 

 

18.4

%

 

18.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

11

 

 

10

 

 

 

 

31

 

 

25

 

 

 

EBITDA, as adjusted

$

145

 

 

$

129

 

 

 

 

$

420

 

 

$

403

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cabinetry Products

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

231

 

 

$

239

 

 

(3

)%

 

$

719

 

 

$

724

 

 

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit, as reported

$

26

 

 

$

23

 

 

 

 

$

79

 

 

$

62

 

 

 

Operating margin, as reported

11.3

%

 

9.6

%

 

 

 

11.0

%

 

8.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Professional fees related to potential divestiture

1

 

 

 

 

 

 

4

 

 

 

 

 

Operating profit, as adjusted

27

 

 

23

 

 

 

 

83

 

 

62

 

 

 

Operating margin, as adjusted

11.7

%

 

9.6

%

 

 

 

11.5

%

 

8.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

3

 

 

3

 

 

 

 

10

 

 

10

 

 

 

EBITDA, as adjusted

$

30

 

 

$

26

 

 

 

 

$

93

 

 

$

72

 

 

 

Historical information is available on our website.

MASCO CORPORATION

Segment Data - Unaudited

For the Three and Nine Months Ended September 30, 2019 and 2018

(dollars in millions)

 

 

Three Months Ended
September 30,

 

 

 

Nine Months Ended
September 30,

 

 

 

2019

 

2018

 

Change

 

2019

 

2018

 

Change

Total

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

1,947

 

 

$

1,904

 

 

2

%

 

$

5,787

 

 

$

5,743

 

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit, as reported - segment

$

339

 

 

$

304

 

 

 

 

$

989

 

 

$

934

 

 

 

General corporate expense, net

(23

)

 

(18

)

 

 

 

(71

)

 

(64

)

 

 

Operating profit, as reported

316

 

 

286

 

 

 

 

918

 

 

870

 

 

 

Operating margin, as reported

16.2

%

 

15.0

%

 

 

 

15.9

%

 

15.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rationalization charges - segment

9

 

 

2

 

 

 

 

11

 

 

4

 

 

 

Accelerated depreciation related to rationalization activity - segment

 

 

 

 

 

 

 

 

1

 

 

 

Kichler inventory step up adjustment

 

 

15

 

 

 

 

 

 

40

 

 

 

Impairment charge for other intangible assets

 

 

 

 

 

 

9

 

 

 

 

 

Professional fees related to potential divestiture

1

 

 

 

 

 

 

4

 

 

 

 

 

Operating profit, as adjusted

326

 

 

303

 

 

 

 

942

 

 

915

 

 

 

Operating margin, as adjusted

16.7

%

 

15.9

%

 

 

 

16.3

%

 

15.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization - segment

34

 

 

33

 

 

 

 

100

 

 

91

 

 

 

Depreciation and amortization - non-operating

2

 

 

2

 

 

 

 

7

 

 

6

 

 

 

EBITDA, as adjusted

$

362

 

 

$

338

 

 

 

 

$

1,049

 

 

$

1,012

 

 

 

 

Historical information is available on our website.

MASCO CORPORATION

North American and International Data - Unaudited

For the Three and Nine Months Ended September 30, 2019 and 2018

(dollars in millions)

 

 

Three Months Ended
September 30,

 

 

 

Nine Months Ended
September 30,

 

 

 

2019

 

2018

 

Change

 

2019

 

2018

 

Change

North American

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

1,605

 

 

$

1,565

 

 

3

%

 

$

4,752

 

 

$

4,653

 

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit, as reported

$

288

 

 

$

253

 

 

 

 

$

838

 

 

$

773

 

 

 

Operating margin, as reported

17.9

%

 

16.2

%

 

 

 

17.6

%

 

16.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rationalization charges

9

 

 

2

 

 

 

 

11

 

 

4

 

 

 

Accelerated depreciation related to rationalization activity

 

 

 

 

 

 

 

 

1

 

 

 

Kichler inventory step up adjustment

 

 

15

 

 

 

 

 

 

40

 

 

 

Impairment charge for other intangible assets

 

 

 

 

 

 

9

 

 

 

 

 

Professional fees related to potential divestiture

1

 

 

 

 

 

 

4

 

 

 

 

 

Operating profit, as adjusted

298

 

 

270

 

 

 

 

862

 

 

818

 

 

 

Operating margin, as adjusted

18.6

%

 

17.3

%

 

 

 

18.1

%

 

17.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

24

 

 

23

 

 

 

 

71

 

 

63

 

 

 

EBITDA, as adjusted

$

322

 

 

$

293

 

 

 

 

$

933

 

 

$

881

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

342

 

 

$

339

 

 

1

%

 

$

1,035

 

 

$

1,090

 

 

(5

)%

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit, as reported

$

51

 

 

$

51

 

 

 

 

$

151

 

 

$

161

 

 

 

Operating margin, as reported

14.9

%

 

15.0

%

 

 

 

14.6

%

 

14.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

10

 

 

10

 

 

 

 

29

 

 

28

 

 

 

EBITDA

$

61

 

 

$

61

 

 

 

 

$

180

 

 

$

189

 

 

 

Historical information is available on our website.

 

 

 

MASCO CORPORATION

North American and International Data - Unaudited

For the Three and Nine Months Ended September 30, 2019 and 2018

(dollars in millions)

 

 

Three Months Ended
September 30,

 

 

 

Nine Months Ended
September 30,

 

 

 

2019

 

2018

 

Change

 

2019

 

2018

 

Change

Total

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

1,947

 

 

$

1,904

 

 

2

%

 

$

5,787

 

 

$

5,743

 

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit, as reported - segment

$

339

 

 

$

304

 

 

 

 

$

989

 

 

$

934

 

 

 

General corporate expense, net

(23

)

 

(18

)

 

 

 

(71

)

 

(64

)

 

 

Operating profit, as reported

316

 

 

286

 

 

 

 

918

 

 

870

 

 

 

Operating margin, as reported

16.2

%

 

15.0

%

 

 

 

15.9

%

 

15.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rationalization charges - segment

9

 

 

2

 

 

 

 

11

 

 

4

 

 

 

Accelerated depreciation related to rationalization activity

 

 

 

 

 

 

 

 

1

 

 

 

Kichler inventory step up adjustment

 

 

15

 

 

 

 

 

 

40

 

 

 

Impairment charge for other intangible assets

 

 

 

 

 

 

9

 

 

 

 

 

Professional fees related to potential divestiture

1

 

 

 

 

 

 

4

 

 

 

 

 

Operating profit, as adjusted

326

 

 

303

 

 

 

 

942

 

 

915

 

 

 

Operating margin, as adjusted

16.7

%

 

15.9

%

 

 

 

16.3

%

 

15.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization - segment

34

 

 

33

 

 

 

 

100

 

 

91

 

 

 

Depreciation and amortization - non-operating

2

 

 

2

 

 

 

 

7

 

 

6

 

 

 

EBITDA, as adjusted

$

362

 

 

$

338

 

 

 

 

$

1,049

 

 

$

1,012

 

 

 

Historical information is available on our website.

Contacts

David Chaika
Vice President, Treasurer and Investor Relations
313.792.5500
david_chaika@mascohq.com

Contacts

David Chaika
Vice President, Treasurer and Investor Relations
313.792.5500
david_chaika@mascohq.com