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Masco 8-K Report, Financial Results (Apr 24, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed April 24, 2024
Period End
April 24, 2024
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. Deal closed8-K · Feb ’20Feb ’20
  2. Leadership change8-K · May ’22May ’22
  3. Leadership change8-K · Apr ’26Apr ’26

01—Abstract

Summary

Summary of the 8-K filed April 24, 2024. Cited figures are marked; the original filing is the authoritative source.

Masco Corporation reported first quarter 2024 results in a press release furnished as Exhibit 99 to this Form 8-K, dated April 24, 2024.

Net sales decreased 3 percent to $1,926 milliona, and in local currency and excluding acquisitions, net sales decreased 4 percent. Operating profit increased 1 percent to $318 million, and operating margin rose 60 basis points to 16.5 percent. Adjusted operating profit increased 3 percent to $322 million, with adjusted operating margin up 90 basis points to 16.7 percent.

Reported earnings per share were $0.97b, compared with $0.90 a year earlier, and adjusted earnings per share grew 8 percent to $0.93. Management attributed the margin expansion to improved operational efficiencies and execution. Capital allocation was a notable component of the quarter.

Masco repurchased 2.1 million shares for $148 millionc and returned $212 million to shareholders through dividends and share repurchases in total. Liquidity at quarter-end was $1,319 million, including revolving credit facility availability. Working capital rose to $1,470 million from $1,612 million a year earlier, and net cash used in operating activities was $94 million after working capital changes of $409 million.

Management reaffirmed its full-year 2024 outlook, expecting adjusted earnings per share in the range of $4.00 to $4.25d. The filing states that the year began largely as expected. The company also noted that its results depend on residential repair and remodel activity, with new home construction playing a lesser role.

02—Key points

Key Highlights

  1. Net sales decreased 3 percent to $1,926 million; in local currency and excluding acquisitions, decreased 4 percent.
  2. Operating profit rose 1 percent to $318 million; adjusted operating profit rose 3 percent to $322 million, with adjusted operating margin up 90 basis points to 16.7 percent.
  3. Diluted earnings per share were $0.97 versus $0.90 a year earlier; adjusted earnings per share grew 8 percent to $0.93.
  4. Gross margin increased 180 basis points to 35.6 percent on a reported basis, and 210 basis points to 35.7 percent as adjusted.
  5. Repurchased 2.1 million shares for $148 million and returned $212 million to shareholders through dividends and buybacks in the quarter.
  6. Total liquidity was $1,319 million at March 31, 2024, including $951 million of revolver availability.
  7. Reaffirmed 2024 adjusted earnings per share guidance of $4.00 to $4.25.

03—Questions

Frequently Asked Questions

  1. How did Masco's segments perform in the first quarter of 2024?

    Plumbing Products net sales decreased 2 percent to $1,192 million, and adjusted operating margin rose to 19.1 percent from 16.5 percent. Decorative Architectural Products net sales decreased 3 percent to $734 million, and adjusted operating margin was 17.0 percent versus 17.6 percent a year earlier. By geography, North American sales decreased 2 percent in local currency and international sales decreased 5 percent.

  2. Why did reported and adjusted earnings differ this quarter?

    Adjusted results exclude rationalization charges of $3 million in the first quarter of 2024 and use a normalized tax rate of 24.5 percent. Reported diluted earnings per share were $0.97, while adjusted earnings per share were $0.93. Exhibit A of the press release contains the reconciliations.

  3. How much cash did Masco generate from operations, and why was it negative?

    Cash provided by operating activities before working capital changes was $314 million. Working capital changes used $409 million, resulting in net cash used in operating activities of $94 million. Receivables increased to $1,310 million from $1,090 million at year-end 2023, and accounts payable and accrued liabilities moved in the opposite direction.

  4. What is Masco's outlook for 2024?

    Management continues to expect 2024 adjusted earnings per share in the range of $4.00 to $4.25, with no rationalization charges assumed in the outlook reconciliation. CEO Keith Allman said the year began largely as expected.

04—Continue

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