Masonite International Corporation’s ("Masonite") net sales decreased 1% to $563 million in the 2Q 2019, from $567 million in the comparable period of 2018. The decrease in net sales was the result of a 7% decrease in base volume, a 1% decrease due to foreign exchange and a 1% decrease in the sale of components and other products, as the company said in the press release received by Lesprom Network.
Total company gross profit increased 4% to $129 million in the 2Q 2019 compared to $124 million in the 2Q 2018. Gross profit margin increased 110 basis points to 22.9%, due to higher AUP and operational productivity, partially offset by the impact of lower volume, and inflation in manufacturing wages and benefits and materials costs including higher tariffs.
Net income decreased $11 million to $24 million in the 2Q 2019 due to higher SG&A expenses, as discussed above, and costs related to previously announced restructuring activities.
Adjusted EBITDA increased 2% to $80 million in the 2Q 2019 from $78 million in the 2Q 2018. Adjusted EBITDA margin was 14.2% in the 2Q, the highest amount in the past decade.
“We are pleased we have driven year-on-year adjusted EBITDA margin expansion for the second consecutive quarter, despite weaker than anticipated volumes," said Howard Heckes, President and CEO. “Since joining Masonite in early June, I have immersed myself in the business and witnessed our employees’ commitment to delivering results and this quarter is no exception. The organization is on target with previously communicated restructuring initiatives and remains focused on operational excellence.”
Masonite International Corporation is a leading global designer and manufacturer of interior and exterior doors for the residential new construction; the residential repair, renovation and remodeling; and the non-residential building construction markets.
