10/29/2024 | Press release | Distributed by Public on 10/29/2024 05:03
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Net sales | $ | 1,983 | $ | 1,979 | $ | 6,000 | $ | 6,085 |
Cost of sales | 1,258 | 1,235 | 3,805 | 3,903 | ||||
Gross profit | 725 | 744 | 2,195 | 2,182 | ||||
Selling, general and administrative expenses | 368 | 361 | 1,123 | 1,081 | ||||
Operating profit | 357 | 383 | 1,073 | 1,101 | ||||
Other income (expense), net: | ||||||||
Interest expense | (25) | (26) | (75) | (82) | ||||
Other, net | (85) | (11) | (95) | (14) | ||||
(109) | (37) | (170) | (96) | |||||
Income before income taxes | 248 | 346 | 903 | 1,005 | ||||
Income tax expense | 68 | 86 | 222 | 246 | ||||
Net income | 180 | 260 | 681 | 759 | ||||
Less: Net income attributable to noncontrolling interest | 13 | 11 | 41 | 42 | ||||
Net income attributable to Masco Corporation | $ | 167 | $ | 249 | $ | 640 | $ | 717 |
Income per common share attributable to Masco Corporation (diluted): | ||||||||
Net income | $ | 0.77 | $ | 1.10 | $ | 2.91 | $ | 3.17 |
Average diluted common shares outstanding | 218 | 226 | 220 | 226 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Gross Profit, Selling, General and Administrative Expenses, and Operating Profit Reconciliations | ||||||||
Net sales | $ | 1,983 | $ | 1,979 | $ | 6,000 | $ | 6,085 |
Gross profit, as reported | $ | 725 | $ | 744 | $ | 2,195 | $ | 2,182 |
Rationalization charges | 2 | 5 | 6 | 2 | ||||
Insurance settlement (1)
|
- | (40) | - | (40) | ||||
Gross profit, as adjusted | $ | 727 | $ | 709 | $ | 2,202 | $ | 2,144 |
Gross margin, as reported | 36.6 | % | 37.6 | % | 36.6 | % | 35.9 | % |
Gross margin, as adjusted | 36.7 | % | 35.8 | % | 36.7 | % | 35.2 | % |
Selling, general and administrative expenses, as reported | $ | 368 | $ | 361 | $ | 1,123 | $ | 1,081 |
Rationalization charges | - | - | 1 | 1 | ||||
Selling, general and administrative expenses, as adjusted | $ | 368 | $ | 361 | $ | 1,121 | $ | 1,080 |
Selling, general and administrative expenses as a percent of net sales, as reported | 18.6 | % | 18.2 | % | 18.7 | % | 17.8 | % |
Selling, general and administrative expenses as a percent of net sales, as adjusted | 18.6 | % | 18.2 | % | 18.7 | % | 17.7 | % |
Operating profit, as reported | $ | 357 | $ | 383 | $ | 1,073 | $ | 1,101 |
Rationalization charges | 2 | 5 | 8 | 3 | ||||
Insurance settlement (1)
|
- | (40) | - | (40) | ||||
Operating profit, as adjusted | $ | 360 | $ | 348 | $ | 1,081 | $ | 1,064 |
Operating margin, as reported | 18.0 | % | 19.4 | % | 17.9 | % | 18.1 | % |
Operating margin, as adjusted | 18.2 | % | 17.6 | % | 18.0 | % | 17.5 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Income Per Common Share Reconciliations | ||||||||
Income before income taxes, as reported | $ | 248 | $ | 346 | $ | 903 | $ | 1,005 |
Rationalization charges | 2 | 5 | 8 | 3 | ||||
Loss on sale of business (1)
|
81 | - | 81 | - | ||||
Realized (gains) from private equity funds | (1) | - | (1) | (1) | ||||
Loss from equity investments, net | - | 1 | - | 1 | ||||
Insurance settlement (2)
|
- | (40) | - | (40) | ||||
Income before income taxes, as adjusted | 330 | 312 | 990 | 968 | ||||
Tax at 24.5% rate | (81) | (76) | (243) | (237) | ||||
Less: Net income attributable to noncontrolling interest | 13 | 11 | 41 | 42 | ||||
Net income, as adjusted | $ | 236 | $ | 225 | $ | 706 | $ | 689 |
Net income per common share, as adjusted | $ | 1.08 | $ | 1.00 | $ | 3.21 | $ | 3.05 |
Average diluted common shares outstanding | 218 | 226 | 220 | 226 |
Year Ended December 31, 2024 | ||||
Low End | High End | |||
Income Per Common Share Reconciliation | ||||
Net income per common share | $ | 3.74 | $ | 3.84 |
Rationalization charges
|
0.03 | 0.03 | ||
Loss on sale of business (1)
|
0.28 | 0.28 | ||
Net income per common share, as adjusted | $ | 4.05 | $ | 4.15 |
September 30, 2024 | December 31, 2023 | |||
Balance Sheet | ||||
Assets | ||||
Current assets: | ||||
Cash and cash investments | $ | 646 | $ | 634 |
Receivables | 1,152 | 1,090 | ||
Inventories | 1,013 | 1,022 | ||
Prepaid expenses and other | 153 | 110 | ||
Total current assets | 2,965 | 2,856 | ||
Property and equipment, net | 1,125 | 1,121 | ||
Goodwill | 610 | 604 | ||
Other intangible assets, net | 230 | 377 | ||
Operating lease right-of-use assets | 238 | 268 | ||
Other assets | 128 | 139 | ||
Total assets | $ | 5,296 | $ | 5,363 |
Liabilities | ||||
Current liabilities: | ||||
Accounts payable | $ | 874 | $ | 840 |
Notes payable | 3 | 3 | ||
Accrued liabilities | 742 | 852 | ||
Total current liabilities | 1,618 | 1,695 | ||
Long-term debt | 2,945 | 2,945 | ||
Noncurrent operating lease liabilities | 230 | 258 | ||
Other liabilities | 360 | 349 | ||
Total liabilities | 5,154 | 5,247 | ||
Redeemable noncontrolling interest | - | 18 | ||
Equity | 142 | 98 | ||
Total liabilities and equity | $ | 5,296 | $ | 5,363 |
As of September 30, | ||||
2024 | 2023 | |||
Other Financial Data | ||||
Working capital days | ||||
Receivable days | 50 | 54 | ||
Inventory days | 78 | 77 | ||
Payable days | 70 | 71 | ||
Working capital | $ | 1,291 | $ | 1,447 |
Working capital as a % of sales (LTM)
|
16.4 | % | 18.1 | % |
Nine Months Ended September 30, | ||||
2024 | 2023 | |||
Cash Flows From (For) Operating Activities: | ||||
Cash provided by operating activities | $ | 957 | $ | 954 |
Working capital changes | (288) | (26) | ||
Net cash from operating activities | 668 | 928 | ||
Cash Flows From (For) Financing Activities: | ||||
Purchase of Company common stock | (482) | (126) | ||
Cash dividends paid | (191) | (193) | ||
Purchase of redeemable noncontrolling interest | (15) | - | ||
Dividends paid to noncontrolling interest | (25) | (49) | ||
Proceeds from short-term borrowings | - | 77 | ||
Payment of short-term borrowings | - | (11) | ||
Payment of term loan | - | (200) | ||
Proceeds from the exercise of stock options | 76 | 37 | ||
Employee withholding taxes paid on stock-based compensation | (34) | (29) | ||
Decrease in debt, net | (2) | (4) | ||
Net cash for financing activities | (673) | (498) | ||
Cash Flows From (For) Investing Activities: | ||||
Capital expenditures | (112) | (181) | ||
Acquisition of business, net of cash acquired
|
(4) | (136) | ||
Proceeds from disposition of business, net of cash disposed
|
131
|
- | ||
Other, net | (3) | (4) | ||
Net cash from (for) investing activities | 12 | (321) | ||
Effect of exchange rate changes on cash and cash investments | 5 | (1) | ||
Cash and Cash Investments: | ||||
Increase for the period | 12 | 108 | ||
At January 1 | 634 | 452 | ||
At September 30 | $ | 646 | $ | 560 |
As of September 30, | ||||
2024 | 2023 | |||
Liquidity | ||||
Cash and cash investments | $ | 646 | $ | 560 |
Revolver availability | 1,000 | 1,000 | ||
Total Liquidity | $ | 1,646 | $ | 1,560 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | |||||||
Plumbing Products | ||||||||||||
Net sales | $ | 1,219 | $ | 1,191 | 2 | % | $ | 3,665 | $ | 3,638 | 1 | % |
Operating profit, as reported | $ | 240 | $ | 223 | $ | 713 | $ | 673 | ||||
Operating margin, as reported | 19.7 | % | 18.7 | % | 19.5 | % | 18.5 | % | ||||
Rationalization charges (income) | 2 | 2 | 7 | (1) | ||||||||
Operating profit, as adjusted | 242 | 225 | 720 | 672 | ||||||||
Operating margin, as adjusted | 19.9 | % | 18.9 | % | 19.6 | % | 18.5 | % | ||||
Depreciation and amortization | 26 | 26 | 80 | 76 | ||||||||
EBITDA, as adjusted | $ | 269 | $ | 251 | $ | 799 | $ | 748 | ||||
Decorative Architectural Products | ||||||||||||
Net sales | $ | 764 | $ | 788 | (3) | % | $ | 2,336 | $ | 2,447 | (5) | % |
Operating profit, as reported | $ | 138 | $ | 181 | $ | 436 | $ | 493 | ||||
Operating margin, as reported | 18.1 | % | 23.0 | % | 18.7 | % | 20.1 | % | ||||
Rationalization charges | - | 3 | 1 | 4 | ||||||||
Insurance settlement | - | (40) | - | (40) | ||||||||
Operating profit, as adjusted | 138 | 144 | 437 | 457 | ||||||||
Operating margin, as adjusted | 18.1 | % | 18.3 | % | 18.7 | % | 18.7 | % | ||||
Depreciation and amortization | 9 | 9 | 28 | 26 | ||||||||
EBITDA, as adjusted | $ | 147 | $ | 153 | $ | 465 | $ | 483 | ||||
Total | ||||||||||||
Net sales | $ | 1,983 | $ | 1,979 | - | % | $ | 6,000 | $ | 6,085 | (1) | % |
Operating profit, as reported - segment | $ | 378 | $ | 404 | $ | 1,149 | $ | 1,166 | ||||
General corporate expense, net | (21) | (21) | (76) | (65) | ||||||||
Operating profit, as reported | 357 | 383 | 1,073 | 1,101 | ||||||||
Operating margin, as reported | 18.0 | % | 19.4 | % | 17.9 | % | 18.1 | % | ||||
Rationalization charges - segment | 2 | 5 | 8 | 3 | ||||||||
Insurance settlement | - | (40) | - | (40) | ||||||||
Operating profit, as adjusted | 360 | 348 | 1,081 | 1,064 | ||||||||
Operating margin, as adjusted | 18.2 | % | 17.6 | % | 18.0 | % | 17.5 | % | ||||
Depreciation and amortization - segment | 36 | 35 | 108 | 102 | ||||||||
Depreciation and amortization - other | 2 | 2 | 5 | 5 | ||||||||
EBITDA, as adjusted | $ | 397 | $ | 385 | $ | 1,194 | $ | 1,171 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | |||||||
North American | ||||||||||||
Net sales | $ | 1,595 | $ | 1,602 | - | % | $ | 4,815 | $ | 4,875 | (1) | % |
Operating profit, as reported | $ | 322 | $ | 348 | $ | 967 | $ | 972 | ||||
Operating margin, as reported | 20.2 | % | 21.7 | % | 20.1 | % | 19.9 | % | ||||
Rationalization charges | 2 | 5 | 5 | 3 | ||||||||
Insurance settlement | - | (40) | - | (40) | ||||||||
Operating profit, as adjusted | 324 | 313 | 973 | 935 | ||||||||
Operating margin, as adjusted | 20.3 | % | 19.5 | % | 20.2 | % | 19.2 | % | ||||
Depreciation and amortization | 23 | 22 | 69 | 65 | ||||||||
EBITDA, as adjusted | $ | 347 | $ | 335 | $ | 1,042 | $ | 1,000 | ||||
International | ||||||||||||
Net sales | $ | 388 | $ | 377 | 3 | % | $ | 1,185 | $ | 1,210 | (2) | % |
Operating profit, as reported | $ | 56 | $ | 56 | $ | 182 | $ | 194 | ||||
Operating margin, as reported | 14.4 | % | 14.9 | % | 15.4 | % | 16.0 | % | ||||
Rationalization charges | - | - | 2 | - | ||||||||
Operating profit, as adjusted | 56 | 56 | 184 | 194 | ||||||||
Operating margin, as adjusted | 14.4 | % | 14.9 | % | 15.5 | % | 16.0 | % | ||||
Depreciation and amortization | 13 | 13 | 38 | 37 | ||||||||
EBITDA, as adjusted | $ | 69 | $ | 69 | $ | 222 | $ | 231 | ||||
Total | ||||||||||||
Net sales | $ | 1,983 | $ | 1,979 | - | % | $ | 6,000 | $ | 6,085 | (1) | % |
Operating profit, as reported - segment | $ | 378 | $ | 404 | $ | 1,149 | $ | 1,166 | ||||
General corporate expense, net | (21) | (21) | (76) | (65) | ||||||||
Operating profit, as reported | 357 | 383 | 1,073 | 1,101 | ||||||||
Operating margin, as reported | 18.0 | % | 19.4 | % | 17.9 | % | 18.1 | % | ||||
Rationalization charges - segment | 2 | 5 | 8 | 3 | ||||||||
Insurance settlement | - | (40) | - | (40) | ||||||||
Operating profit, as adjusted | 360 | 348 | 1,081 | 1,064 | ||||||||
Operating margin, as adjusted | 18.2 | % | 17.6 | % | 18.0 | % | 17.5 | % | ||||
Depreciation and amortization - segment | 36 | 35 | 108 | 102 | ||||||||
Depreciation and amortization - other | 2 | 2 | 5 | 5 | ||||||||
EBITDA, as adjusted | $ | 397 | $ | 385 | $ | 1,194 | $ | 1,171 |