2024 Q4 Form 10-Q Financial Statement

#000194136524000120 Filed on November 06, 2024

View on sec.gov

Income Statement

Concept 2024 Q4 2024 Q3
Revenue $718.1M
YoY Change 6.02%
Cost Of Revenue $480.1M
YoY Change 9.16%
Gross Profit $238.0M
YoY Change 0.21%
Gross Profit Margin 33.14%
Selling, General & Admin $166.3M
YoY Change 18.53%
% of Gross Profit 69.87%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $20.10M
YoY Change 29.68%
% of Gross Profit 8.45%
Operating Expenses $166.3M
YoY Change 18.53%
Operating Profit $57.60M
YoY Change -37.53%
Interest Expense -$20.00M
YoY Change -230.72%
% of Operating Profit -34.72%
Other Income/Expense, Net $1.800M
YoY Change 80.0%
Pretax Income $39.40M
YoY Change -49.42%
Income Tax $10.30M
% Of Pretax Income 26.14%
Net Earnings $29.10M
YoY Change -51.26%
Net Earnings / Revenue 4.05%
Basic Earnings Per Share $0.23
Diluted Earnings Per Share $0.22
COMMON SHARES
Basic Shares Outstanding 127.1M shares 127.1M shares
Diluted Shares Outstanding 130.8M shares

Balance Sheet

Concept 2024 Q4 2024 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $108.4M
YoY Change -11.51%
Cash & Equivalents $108.4M
Short-Term Investments
Other Short-Term Assets $63.00M
YoY Change 7.69%
Inventory $299.4M
Prepaid Expenses
Receivables $216.1M
Other Receivables $0.00
Total Short-Term Assets $686.9M
YoY Change 0.42%
LONG-TERM ASSETS
Property, Plant & Equipment $456.7M
YoY Change 33.73%
Goodwill $1.129B
YoY Change 22.15%
Intangibles $577.9M
YoY Change 70.72%
Long-Term Investments
YoY Change
Other Assets $38.00M
YoY Change 35.23%
Total Long-Term Assets $2.273B
YoY Change 34.17%
TOTAL ASSETS
Total Short-Term Assets $686.9M
Total Long-Term Assets $2.273B
Total Assets $2.960B
YoY Change 24.47%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $175.3M
YoY Change -2.45%
Accrued Expenses $203.1M
YoY Change 12.83%
Deferred Revenue
YoY Change
Short-Term Debt $0.00
YoY Change
Long-Term Debt Due $0.00
YoY Change -100.0%
Total Short-Term Liabilities $378.4M
YoY Change 2.85%
LONG-TERM LIABILITIES
Long-Term Debt $1.062B
YoY Change 51.91%
Other Long-Term Liabilities $13.70M
YoY Change 38.38%
Total Long-Term Liabilities $1.076B
YoY Change 51.72%
TOTAL LIABILITIES
Total Short-Term Liabilities $378.4M
Total Long-Term Liabilities $1.076B
Total Liabilities $1.673B
YoY Change 36.9%
SHAREHOLDERS EQUITY
Retained Earnings $1.316B
YoY Change 12.67%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $1.288B
YoY Change
Total Liabilities & Shareholders Equity $2.960B
YoY Change 24.47%

Cashflow Statement

Concept 2024 Q4 2024 Q3
OPERATING ACTIVITIES
Net Income $29.10M
YoY Change -51.26%
Depreciation, Depletion And Amortization $20.10M
YoY Change 29.68%
Cash From Operating Activities $80.80M
YoY Change -43.3%
INVESTING ACTIVITIES
Capital Expenditures $16.30M
YoY Change 63.0%
Acquisitions
YoY Change
Other Investing Activities -$513.7M
YoY Change -513800.0%
Cash From Investing Activities -$530.0M
YoY Change 5253.54%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 371.6M
YoY Change -409.41%
NET CHANGE
Cash From Operating Activities 80.80M
Cash From Investing Activities -530.0M
Cash From Financing Activities 371.6M
Net Change In Cash -77.60M
YoY Change -720.8%
FREE CASH FLOW
Cash From Operating Activities $80.80M
Capital Expenditures $16.30M
Free Cash Flow $64.50M
YoY Change -51.32%

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Basis of Presentation and Principles of Consolidation<div style="text-align:justify"><span style="color:#231f20;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Background </span><span style="color:#231f20;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">MasterBrand, Inc. is a leading manufacturer of residential cabinets in North America with a portfolio of leading residential cabinetry products for the kitchen, bathroom and other parts of the home. References to “MasterBrand,” “the Company,” “we,” “our” and “us” refer to MasterBrand, Inc. and its consolidated subsidiaries, unless the context otherwise requires.</span></div><div style="text-align:justify"><span><br/></span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Basis of Presentation </span><span style="color:#231f20;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Our consolidated financial statements are based on a 52- or 53-week fiscal year ending on the last Sunday in December in each calendar year.</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> Our fiscal </span><span style="color:#231f20;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">2024</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> will consist of 52 weeks ending on December 29, 2024, while our fiscal 2023 consisted of 53 weeks ended on </span><span style="color:#231f20;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">December 31, 2023. </span></div><div style="text-align:justify"><span><br/></span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The condensed consolidated balance sheets as of </span><span style="color:#231f20;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">September 29, 2024 and December 31, 2023</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">, as well as the related condensed consolidated statements of income, comprehensive income, cash flows, and equity for the thirteen and thirty-nine weeks ended September 29, 2024 and the thirteen and thirty-nine weeks ended September 24, 2023, are unaudited. The presentation of these financial statements requires us to make estimates and assumptions that affect reported amounts and related disclosures. Actual results could differ from those estimates. In the opinion of management, all adjustments, consisting of normal, recurring accruals, considered necessary for a fair statement of the financial statements have been included. Interim results may not be indicative of results for a full year.</span></div><div><span><br/></span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The condensed consolidated financial statements and notes are presented pursuant to the rules and regulations of the Securities and Exchange Commission and do not contain certain information included in our audited consolidated financial statements and notes. The 2023 condensed consolidated balance sheet was derived from our audited consolidated financial statements, but does not include all disclosures required by United States Generally Accepted Accounting Principles (“GAAP”). These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended </span><span style="color:#231f20;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">December 31, 2023</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">.</span></div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Tornado at Jackson, Georgia Production Facility</span> On January 12, 2023, a tornado hit the Company’s leased Jackson, Georgia production facility, causing damage to the Company’s assets and disrupting certain operations. Insurance, less applicable deductibles, covered the repair or replacement of the Company’s assets that suffered loss or damage, provided business interruption coverage, including lost profits, and reimbursement for other expenses and costs that were incurred relating to the damages and losses suffered. For the thirteen weeks ended March 26, 2023, the Company incurred expenses of $9.4 million solely related to damages caused by the tornado, and no additional expenses were incurred throughout the remainder of fiscal 2023. These expenses included compensation costs that we continued to pay skilled labor at the Jackson facility to enable a timely ramp up of production upon re-opening the facility on March 27, 2023, the first day of our fiscal second quarter of 2023, as well as the write-off of damaged inventory, freight costs to move product to other warehouses and professional fees to secure and maintain the site. During fiscal 2023, we received $7.4 million of insurance proceeds for direct costs caused by the tornado, consisting of $2.2 million, $2.0 million and $3.2 million received during our second, third and fourth quarters, respectively. Both the expenses and insurance recoveries were recorded as a component of cost of products sold in the condensed consolidated statements of income. Upon receipt of the final insurance proceeds in our fourth quarter of fiscal 2023, we considered this claim to be closed.
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CY2023Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
233700000 usd
CY2023Q4 us-gaap Intangible Assets Net Excluding Goodwill
IntangibleAssetsNetExcludingGoodwill
335500000 usd
us-gaap Impairment Of Intangible Assets Indefinitelived Excluding Goodwill
ImpairmentOfIntangibleAssetsIndefinitelivedExcludingGoodwill
0 usd
CY2024Q3 us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
0 usd
CY2024Q3 us-gaap Derivative Assets
DerivativeAssets
0 usd
CY2023Q4 us-gaap Derivative Assets
DerivativeAssets
3000000.0 usd
CY2024Q3 us-gaap Derivative Liabilities
DerivativeLiabilities
5800000 usd
CY2023Q4 us-gaap Derivative Liabilities
DerivativeLiabilities
100000 usd
CY2024Q3 us-gaap Debt Instrument Fair Value
DebtInstrumentFairValue
1109100000 usd
CY2024Q3 us-gaap Long Term Debt
LongTermDebt
1075000000 usd
CY2023Q4 us-gaap Debt Longterm And Shortterm Combined Amount
DebtLongtermAndShorttermCombinedAmount
712500000 usd
CY2024Q3 mbc Long Term Debt Current Maturities Gross
LongTermDebtCurrentMaturitiesGross
0 usd
CY2024Q3 us-gaap Long Term Debt
LongTermDebt
1075000000 usd
CY2023Q4 mbc Long Term Debt Current Maturities Gross
LongTermDebtCurrentMaturitiesGross
18800000 usd
CY2023Q4 mbc Long Term Debt Excluding Current Maturities Gross
LongTermDebtExcludingCurrentMaturitiesGross
693700000 usd
CY2024Q3 us-gaap Deferred Finance Costs Current Net
DeferredFinanceCostsCurrentNet
0 usd
CY2024Q3 us-gaap Deferred Finance Costs Noncurrent Net
DeferredFinanceCostsNoncurrentNet
12700000 usd
CY2023Q4 us-gaap Deferred Finance Costs Current Net
DeferredFinanceCostsCurrentNet
1200000 usd
CY2023Q4 us-gaap Deferred Finance Costs Noncurrent Net
DeferredFinanceCostsNoncurrentNet
3500000 usd
CY2024Q3 us-gaap Long Term Debt Current
LongTermDebtCurrent
0 usd
CY2024Q3 us-gaap Long Term Debt Noncurrent
LongTermDebtNoncurrent
1062300000 usd
CY2023Q4 us-gaap Long Term Debt Current
LongTermDebtCurrent
17600000 usd
CY2023Q4 us-gaap Long Term Debt Noncurrent
LongTermDebtNoncurrent
690200000 usd
CY2024Q3 us-gaap Restructuring Charges
RestructuringCharges
7800000 usd
us-gaap Restructuring Charges
RestructuringCharges
11000000 usd
CY2023Q3 us-gaap Restructuring Charges
RestructuringCharges
1400000 usd
CY2024Q2 us-gaap Restructuring Reserve
RestructuringReserve
1500000 usd
CY2024Q3 us-gaap Restructuring Charges
RestructuringCharges
7800000 usd
CY2024Q3 us-gaap Payments For Restructuring
PaymentsForRestructuring
3600000 usd
CY2024Q3 us-gaap Restructuring Reserve Settled Without Cash2
RestructuringReserveSettledWithoutCash2
1200000 usd
CY2024Q3 us-gaap Restructuring Reserve
RestructuringReserve
4500000 usd
CY2023Q2 us-gaap Restructuring Reserve
RestructuringReserve
3300000 usd
CY2023Q3 us-gaap Restructuring Charges
RestructuringCharges
1400000 usd
CY2023Q3 us-gaap Payments For Restructuring
PaymentsForRestructuring
3200000 usd
CY2023Q3 us-gaap Restructuring Reserve Settled Without Cash2
RestructuringReserveSettledWithoutCash2
0 usd
CY2023Q3 us-gaap Restructuring Reserve
RestructuringReserve
1500000 usd
CY2023Q4 us-gaap Restructuring Reserve
RestructuringReserve
1400000 usd
us-gaap Restructuring Charges
RestructuringCharges
11000000.0 usd
us-gaap Payments For Restructuring
PaymentsForRestructuring
6700000 usd
us-gaap Restructuring Reserve Settled Without Cash2
RestructuringReserveSettledWithoutCash2
1200000 usd
CY2024Q3 us-gaap Restructuring Reserve
RestructuringReserve
4500000 usd
CY2022Q4 us-gaap Restructuring Reserve
RestructuringReserve
15400000 usd
us-gaap Restructuring Charges
RestructuringCharges
4100000 usd
us-gaap Payments For Restructuring
PaymentsForRestructuring
18000000.0 usd
us-gaap Restructuring Reserve Settled Without Cash2
RestructuringReserveSettledWithoutCash2
0 usd
CY2023Q3 us-gaap Restructuring Reserve
RestructuringReserve
1500000 usd
CY2024Q3 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.261
CY2023Q3 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.234
us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.246
us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.254
CY2024Q2 us-gaap Product Warranty Accrual
ProductWarrantyAccrual
10600000 usd
CY2023Q2 us-gaap Product Warranty Accrual
ProductWarrantyAccrual
13200000 usd
CY2023Q4 us-gaap Product Warranty Accrual
ProductWarrantyAccrual
12900000 usd
CY2022Q4 us-gaap Product Warranty Accrual
ProductWarrantyAccrual
11200000 usd
CY2024Q3 us-gaap Product Warranty Accrual Warranties Issued
ProductWarrantyAccrualWarrantiesIssued
4300000 usd
CY2023Q3 us-gaap Product Warranty Accrual Warranties Issued
ProductWarrantyAccrualWarrantiesIssued
8200000 usd
us-gaap Product Warranty Accrual Warranties Issued
ProductWarrantyAccrualWarrantiesIssued
15200000 usd
us-gaap Product Warranty Accrual Warranties Issued
ProductWarrantyAccrualWarrantiesIssued
26300000 usd
CY2024Q3 us-gaap Product Warranty Accrual Payments
ProductWarrantyAccrualPayments
5700000 usd
CY2023Q3 us-gaap Product Warranty Accrual Payments
ProductWarrantyAccrualPayments
7800000 usd
us-gaap Product Warranty Accrual Payments
ProductWarrantyAccrualPayments
18900000 usd
us-gaap Product Warranty Accrual Payments
ProductWarrantyAccrualPayments
23900000 usd
CY2024Q3 us-gaap Product Warranty Accrual
ProductWarrantyAccrual
9200000 usd
CY2023Q3 us-gaap Product Warranty Accrual
ProductWarrantyAccrual
13600000 usd
CY2024Q3 us-gaap Product Warranty Accrual
ProductWarrantyAccrual
9200000 usd
CY2023Q3 us-gaap Product Warranty Accrual
ProductWarrantyAccrual
13600000 usd
CY2023Q3 us-gaap Oci Before Reclassifications Before Tax Attributable To Parent
OciBeforeReclassificationsBeforeTaxAttributableToParent
-400000 usd
CY2023Q3 us-gaap Reclassification From Aoci Current Period Before Tax Attributable To Parent
ReclassificationFromAociCurrentPeriodBeforeTaxAttributableToParent
3100000 usd
CY2023Q3 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent
-3500000 usd
us-gaap Oci Before Reclassifications Before Tax Attributable To Parent
OciBeforeReclassificationsBeforeTaxAttributableToParent
-23800000 usd
us-gaap Reclassification From Aoci Current Period Before Tax Attributable To Parent
ReclassificationFromAociCurrentPeriodBeforeTaxAttributableToParent
-700000 usd
us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent
-23100000 usd
us-gaap Oci Before Reclassifications Before Tax Attributable To Parent
OciBeforeReclassificationsBeforeTaxAttributableToParent
15700000 usd
us-gaap Reclassification From Aoci Current Period Before Tax Attributable To Parent
ReclassificationFromAociCurrentPeriodBeforeTaxAttributableToParent
8600000 usd
us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent
7100000 usd
CY2023Q2 srt Stock Repurchase Program Authorized Amount1
StockRepurchaseProgramAuthorizedAmount1
50000000 usd
CY2023Q2 us-gaap Stock Repurchase Program Period In Force1
StockRepurchaseProgramPeriodInForce1
P24M
us-gaap Stock Repurchased During Period Shares
StockRepurchasedDuringPeriodShares
371499 shares
us-gaap Stock Repurchased During Period Value
StockRepurchasedDuringPeriodValue
6500000 usd
us-gaap Treasury Stock Acquired Average Cost Per Share
TreasuryStockAcquiredAverageCostPerShare
17.58
CY2023Q3 us-gaap Stock Repurchased During Period Shares
StockRepurchasedDuringPeriodShares
942918 shares
us-gaap Stock Repurchased During Period Shares
StockRepurchasedDuringPeriodShares
1347776 shares
CY2023Q3 us-gaap Stock Repurchased During Period Value
StockRepurchasedDuringPeriodValue
11500000 usd
us-gaap Stock Repurchased During Period Value
StockRepurchasedDuringPeriodValue
15900000 usd
CY2023Q3 us-gaap Treasury Stock Acquired Average Cost Per Share
TreasuryStockAcquiredAverageCostPerShare
12.23
us-gaap Treasury Stock Acquired Average Cost Per Share
TreasuryStockAcquiredAverageCostPerShare
11.83
CY2024Q3 us-gaap Stock Repurchase Program Remaining Authorized Repurchase Amount1
StockRepurchaseProgramRemainingAuthorizedRepurchaseAmount1
21500000 usd
CY2024Q3 ecd Non Rule10b51 Arr Adopted Flag
NonRule10b51ArrAdoptedFlag
false
CY2024Q3 ecd Rule10b51 Arr Adopted Flag
Rule10b51ArrAdoptedFlag
false
CY2024Q3 ecd Non Rule10b51 Arr Trmntd Flag
NonRule10b51ArrTrmntdFlag
false
CY2024Q3 ecd Rule10b51 Arr Trmntd Flag
Rule10b51ArrTrmntdFlag
false

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