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Masco Annual Report, Year Ended Dec 31, 1993

Filing Date
Filed March 25, 1994
Period End
December 31, 1993
Security
MAS
In the record · 2016–202610-K1110-Q338-K95

MAS filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 95 current reports (8-K) between 2016 and 2026.

  1. FY2016 annual report10-K · Feb ’17Feb ’17
  2. Deal closed8-K · Feb ’20Feb ’20
  3. Leadership change8-K · Feb ’22Feb ’22
  4. Leadership change8-K · Jan ’26Jan ’26

01—Abstract

Summary

Summary of the 10-K filed March 25, 1994. Cited figures are marked; the original filing is the authoritative source.

Masco Corporation's Form 10-K for the fiscal year ended December 31, 1993 reports net sales of $3.886 billiona, up from $3.525 billion in 1992 and $3.141 billion in 1991, and net income of $221.1 million, or $1.45 per share, compared with $183.1 million ($1.21 per share) in 1992.

The company describes itself as the largest domestic manufacturer of faucets, plumbing supplies, kitchen and bath cabinets and furniture. Its two segments are Building and Home Improvement Products, with 1993 net sales of $2.188 billionb and operating profit of $412 million, and Home Furnishings Products, with net sales of $1.698 billion and operating profit of $69 million. Management attributed the higher 1993 margins to improved market shares and a modest economic recovery, plus income from its equity investments in MascoTech, Inc. Balance sheet and cash flow data show total assets of $4.02 billion, long-term debt of $1.418 billion and shareholders' equity of $1.998 billion at year-end 1993.

Operating cash flow was $261 millionc, capital expenditures were $167 million, and cash dividends paid were $99 million. The company issued $400 million of fixed-rate notes in 1993 to repay floating-rate bank borrowings. Masco owned approximately 42 percent of MascoTech, Inc., and in 1993 it converted debentures to raise that stake, and it held roughly 5 percent of TriMas Corporation.

The filing also includes MascoTech's separate audited statements, which show net sales of $1.583 billiond and a shareholder base that includes a large Masco stake. The filing states that the company's dividend rate was increased 7 percent to $.17 per quarter in 1993, the 35th consecutive year of increases. Litigation disclosed in the filing, including plastic plumbing fitting claims and California lead-leaching faucet suits, is described by management as not expected to have a material adverse effect on financial position.

02—Key points

Key Highlights

  1. Net sales rose to $3.886 billion in 1993 from $3.525 billion in 1992, and net income rose to $221.1 million from $183.1 million.
  2. Earnings per share were $1.45 in 1993 versus $1.21 in 1992; the filing reports a 20 percent increase in earnings per share.
  3. Building and Home Improvement Products had net sales of $2.188 billion and operating profit of $412 million; Home Furnishings Products had net sales of $1.698 billion and operating profit of $69 million.
  4. Cash from operations was $261 million, capital expenditures were $167 million, and the company issued $400 million of fixed-rate debt in 1993.
  5. Masco's equity stake in MascoTech, Inc. rose to approximately 42 percent after a December 1993 debenture conversion, and MascoTech contributed to 1993 other income.
  6. The quarterly dividend was raised 7 percent to $.17 per share, marking the 35th consecutive annual increase.
  7. Long-term debt was $1.418 billion at year-end 1993, down from $1.487 billion in 1992, against shareholders' equity of $1.998 billion.

03—Questions

Frequently Asked Questions

  1. How did Masco perform financially in 1993?

    Net sales increased 10 percent to $3.886 billion, and net income rose to $221.1 million, or $1.45 per share, from $183.1 million, or $1.21 per share, in 1992. The filing states that after-tax profit margin was 5.7 percent and after-tax return on shareholders' equity was 11.7 percent.

  2. What drove the improvement in profitability?

    Management attributed the higher margins primarily to increased product sales from improved market shares and a modest economic recovery, as well as increased income from equity investments in MascoTech, Inc. Operating profit rose 13 percent to $481 million across the segments before general corporate expense.

  3. How is Masco's balance sheet positioned?

    Total assets were $4.02 billion and total shareholders' equity was $1.998 billion at December 31, 1993. Current assets were approximately 3.4 times current liabilities. The company said internal cash flow is expected to meet near-term working capital and investment needs.

  4. What is Masco's dividend policy?

    Dividends declared totaled $.66 per share in 1993, and the quarterly rate was raised 7 percent to $.17. The company said it expects to continue paying quarterly dividends, though future amounts depend on earnings, capital requirements and financial condition.

  5. What legal matters does Masco disclose?

    The company discloses suits related to plastic plumbing fittings sold between 1982 and 1989 and a December 1992 California lawsuit alleging brass faucets leach lead. Management does not believe these will have a material adverse effect on its financial position.

04—Continue

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