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
| Nine Months Ended
| ||||||||||||||
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
| Nine Months Ended
| ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Gross Profit, Selling, General and
| |||||||||||||||
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
| Nine Months Ended
| ||||||||||||||
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
| |||||||
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
| |||||||
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
| Nine Months Ended
| ||||||||||||||||||||
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
| Nine Months Ended
| ||||||||||||||||||||
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
| Nine Months Ended
| ||||||||||||||||||||
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
| Nine Months Ended
| ||||||||||||||||||||
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20191030005143/en/
Contacts:
Vice President, Treasurer and Investor Relations
313.792.5500
david_chaika@mascohq.com
