The following excerpt is from the company's SEC filing.
Sales increased 12 percent to $2,201 million; in local currency, sales increased 13 percent
Operating profit was $353 million and operating margin was 16.0 percent; adjusted operating profit was $356 million and adjusted operating margin was 16.2 percent
Earnings per share increased 185 percent to $0.97 per share; adjusted earnings per share increased 7 percent to $0.95 per share
Repurchased 6.1 million shares for $364 million
Anticipate 2022 earnings per share in the range of $4.12 - $4.32 per share, and on an adjusted basis, in the range of $4.15 - $4.35 per share, an increase from previously announced ex
pectation of $4.10 - $4.30 per share
LIVONIA, Mich. (April 27, 2022) -
Masco Corporation (NYSE: MAS), one of the world’s leading manufacturers of branded home improvement and building products, reported
its first quarter results.
2022 First Quarter Results
On a reported basis, compared to first quarter 2021:
Net sales increased 12
percent to $2,201 million; in local currency and excluding acquisitions and divestitures, net sales increased 14 percent
In local currency, North American sales increased 14 percent and international sales increased 12 percent
Gross margin decreased 350 basis points to 32.0 percent from 35.5 percent
Operating profit decreased 3 percent to $353 million
Operating margin decreased 250 basis points to 16.0 percent from 18.5 percent
Net income increased to $0.97 per share, compared to $0.34 per share
Compared to first quarter 2021, 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 margin decreased 350 basis points to 32.1 percent from 35.6 percent
Operating profit decreased 3 percent to $356 million from $366 million
Operating margin decreased 240 basis points to 16.2 percent from 18.6 percent
Net income increased 7 percent to $0.95 per share from $0.89 per share
Liquidity at the end of the first quarter was $1,216 million (including availability under our revolving credit facility)
Plumbing Products’ net sales increased 9 percent; in local currency and excluding acquisitions and divestitures, sales increased 12 percent
Decorative Architectural Products’ net sales increased 17 percent
“We achieved solid first quarter results,” said Masco President and CEO, Keith Allman. “We delivered strong sales growth of 12 percent and increased adjusted earnings per share by 7 percent. We also furthered our capital deployment by returning $431 million to shareholders through dividends and share repurchases during the quarter.”
“We are off to a strong start in 2022,” continued Allman. “Demand for our products remains healthy, and we are executing well to offset ongoing inflation while still driving volume growth. With this continued solid demand and our strong first quarter performance, we now anticipate our adjusted earnings per share for 2022 to be in the range of $4.15 to $4.35 per share, increased from our previous expectation of $4.10 to $4.30 per share,” concluded Allman.
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; 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 first quarter 2022 supplemental material, including a presentation in PDF format, is available on Masco’s website at www.masco.com.
Conference Call Detail
A conference call regarding items contained in this release is scheduled for Wednesday, April 27, 2022 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 (844) 549-7577 and from outside the U.S. at (442) 275-1712. Please use the conference identification number 8072369. 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 8072369. The telephone replay will be available approximately two hours after the end of the call and continue through May 27, 2022.
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 to a lesser extent, new home construction, our ability to maintain our strong brands and reputation and to develop innovative products, our ability to maintain our competitive position in our industries, our reliance on key customers, the duration of the ongoing COVID-19 pandemic, including its impact on domestic and international economic activity, consumer discretionary spending, our employees and our supply chain, the cost and availability of materials, our dependence on third-party suppliers and service providers, extreme weather events and changes in climate, risks associated with our international operations and global strategies, our ability to achieve the anticipated benefits of our strategic initiatives, 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 and diverse personnel, risks associated with our reliance on information systems and technology, and risks associated with cybersecurity vulnerabilities, threats and attacks. 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.
Investor Contact
David Chaika
Vice President, Treasurer and Investor Relations
313.792.5500
david_chaika@mascohq.com
MASCO CORPORATION
Condensed Consolidated Statements of Operations - Unaudited
For the Three Months Ended March 31, 2022 and 2021
(in millions, except per common share data)
2,201
1,970
Cost of sales
1,497
1,270
Gross profit
Selling, general and administrative expenses
Other income (expense), net:
Interest expense
Other, net
Income before income taxes
Income tax expense
Net Income
Less: Net income attributable to noncontrolling interest
Net income attributable to Masco Corporation
Income per common share attributable to Masco Corporation (diluted):
Average diluted common shares outstanding
Historical information is available on our website.
Exhibit A: Reconciliations - Unaudited
(dollars in millions)
Gross Profit, Selling, General and Administrative Expenses, and Operating Profit Reconciliations
Gross profit, as reported
Rationalization charges
Gross profit, as adjusted
Gross margin, as reported
Gross margin, as adjusted
Selling, general and administrative expenses, as reported
Selling, general and administrative expenses as percent of net sales, as reported
Operating profit, as reported
Operating profit, as adjusted
Operating margin, as reported
Operating margin, as adjusted
Income Per Common Share Reconciliations
Income before income taxes, as reported
Pension costs associated with terminated plans
(Earnings) from equity investments, net
Loss on extinguishment of debt
Fair value adjustment to contingent earnout obligation
(Gain) on sale of business
Income before income taxes, as adjusted
Tax at 25% rate
Net income, as adjusted
Net income per common share, as adjusted
Represents expense from the revaluation of contingent consideration related to a prior acquisition.
Represents a pre-tax post-closing gain related to the finalization of working capital items related to the divestiture of Hüppe GmbH (“Hüppe”).
Outlook for the Twelve Months Ended December 31, 2022
Low End
High End
Income Per Common Share Outlook
(0.01)
Allocation to participating securities per share
Represents a pre-tax post-closing gain related to the finalization of working capital items related to the divestiture of Hüppe.
Represents the impact of distributed dividends and undistributed earnings to unvested restricted stock awards as well as an allocation to redeemable noncontrolling interest in accordance with the two-class method of calculating earnings per share.
Condensed Consolidated Balance Sheets and Other Financial Data - Unaudited
March 31, 2022 and December 31, 2021
Assets
Current Assets:
Cash and cash investments
Receivables
1,502
1,171
Inventories
1,340
1,216
Prepaid expenses and other
Total Current Assets
3,428
3,422
Property and equipment, net
Goodwill
Other intangible assets, net
Operating lease right-of-use assets
Other assets
Total Assets
5,568
5,575
Liabilities
Current Liabilities:
Accounts payable
1,114
1,045
Notes payable
Accrued liabilities
Total Current Liabilities
2,136
1,939
Long-term debt
2,946
2,949
Noncurrent operating lease liabilities
Other liabilities
Total Liabilities
5,668
5,497
Redeemable noncontrolling interest
Equity
Total Liabilities and Equity
As of March 31,
Working Capital Days
Receivable days
Inventory days
Payable days
Working capital
1,728
1,328
Working capital as a % of sales
(LTM)
Condensed Consolidated Statements of Cash Flows and Other Financial Data - Unaudited
(dollars in millions)
Cash Flows From (For) Operating Activities:
Cash provided by operating activities
Working capital changes
Net cash for operating activities
Cash Flows From (For) Financing Activities:
Retirement of notes
(1,326)
Purchase of Company common stock
Proceeds from revolving credit borrowings, net
Cash dividends paid
Issuance of notes, net of issuance costs
1,481
Debt extinguishment costs
Proceeds from the exercise of stock options
Employee withholding taxes paid on stock-based compensation
Decrease in debt, net
Net cash for financing activities
Cash Flows From (For) Investing Activities:
Capital expenditures
Proceeds from disposition of businesses, net of cash disposed
Net cash for investing activities
Effect of exchange rate changes on cash and cash investments
Cash and Cash Investments:
Decrease for the period
At January 1
1,326
At March 31
Revolver availability
1,000
Total Liquidity
1,838
Segment Data - Unaudited
Change
1,359
1,249
Depreciation and amortization
EBITDA, as adjusted
Accelerated depreciation related to rationalization activity
Operating profit, as reported - segment
General corporate expense, net
Rationalization charges - segment
Accelerated depreciation related to rationalization activity
Depreciation and amortization - segment
Depreciation and amortization - other
Historical information is available on our website.
North American and International Data - Unaudited
1,734
1,529
The above information was disclosed in a filing to the SEC. To see the filing, click here.
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