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Masco 8-K Report, Financial Results (Oct 29, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed October 29, 2024
Period End
October 29, 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 October 29, 2024. Cited figures are marked; the original filing is the authoritative source.

Masco Corporation reported third quarter 2024 results in an 8-K furnished under Item 2.02.

Net sales were $1,983 milliona, in line with the prior year's $1,979 million, and in local currency net sales increased 1 percent. Reported operating profit decreased to $357 million from $383 million, with reported operating margin of 18.0 percent versus 19.4 percent. Excluding adjusted items, including a $81 million preliminary loss on the sale of the Kichler Lighting business, operating profit increased 3 percent to $360 million and adjusted operating margin rose 60 basis points to 18.2 percent.

Reported net income attributable to Masco was $167 millionb, or $0.77 per diluted share, versus $1.10 a year earlier, while adjusted earnings per share grew 8 percent to $1.08. Management cited the sixth consecutive quarter of year-over-year adjusted margin expansion and said market demand is expected to remain challenged for the rest of the year. The company narrowed its 2024 adjusted EPS outlook to $4.05 to $4.15 from the prior $4.05 to $4.20, and guided to reported EPS of $3.74 to $3.84.

During the quarter Masco repurchased 2.5 million shares for $192 millionc and returned $255 million to shareholders through dividends and buybacks. Total liquidity at quarter end was $1,646 million, and the Board declared a quarterly dividend of $0.29 per share payable November 25, 2024. On the balance sheet, cash and cash investments were $646 million and long-term debt was $2,945 million at September 30, 2024.

Nine-month operating cash flow net of working capital changes was $668 milliond, compared with $928 million a year earlier, and nine-month capital expenditures were $112 million. Investors may also note the nine-month reported EPS of $2.91 versus $3.17 in the prior-year period.

02—Key points

Key Highlights

  1. Net sales of $1,983 million were flat versus $1,979 million in Q3 2023; local currency net sales rose 1 percent.
  2. Reported operating profit fell 7 percent to $357 million, while adjusted operating profit rose 3 percent to $360 million.
  3. Adjusted operating margin expanded 60 basis points to 18.2 percent, the sixth consecutive quarter of year-over-year margin expansion.
  4. Reported EPS was $0.77 versus $1.10; adjusted EPS grew 8 percent to $1.08, including an $81 million preliminary loss on the Kichler Lighting sale.
  5. 2024 adjusted EPS guidance narrowed to $4.05 to $4.15 from $4.05 to $4.20; reported EPS guidance is $3.74 to $3.84.
  6. Masco repurchased 2.5 million shares for $192 million and returned $255 million to shareholders in the quarter.
  7. Total liquidity was $1,646 million at quarter end, and the Board declared a $0.29 quarterly dividend payable November 25, 2024.

03—Questions

Frequently Asked Questions

  1. Why did reported operating profit decline while adjusted operating profit increased?

    Reported operating profit was $357 million versus $383 million in the prior year. The prior-year period included a $40 million insurance settlement gain, and the current period included rationalization charges of $2 million. Excluding these items, adjusted operating profit rose 3 percent to $360 million from $348 million.

  2. What drove the difference between reported and adjusted EPS?

    Reported EPS was $0.77 compared with $1.10 a year earlier. The company's adjustments included an $81 million preliminary loss on the sale of the Kichler Lighting business, which lowered reported results. Adjusted EPS, using a normalized 24.5 percent tax rate, was $1.08 versus $1.00.

  3. How did the company's full-year outlook change?

    Masco narrowed its 2024 adjusted EPS guidance to $4.05 to $4.15, down from the prior range of $4.05 to $4.20 at the top end. Reported EPS guidance is $3.74 to $3.84, which includes the preliminary Kichler Lighting loss of $0.28 per share and rationalization charges of $0.03 per share.

  4. How is Masco returning capital to shareholders?

    In the third quarter Masco repurchased 2.5 million shares for $192 million and returned $255 million in total through dividends and repurchases. The Board also declared a quarterly dividend of $0.29 per share, payable November 25, 2024 to holders of record on November 8, 2024.

  5. What is the company's liquidity position?

    Total liquidity at September 30, 2024 was $1,646 million, consisting of $646 million in cash and cash investments and $1,000 million of revolver availability. Long-term debt was $2,945 million at quarter end.

04—Continue

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