Business Wire | Aug 3, 2020 04:30PM EDT

Masonite International Corporation Reports 2020 Second Quarter Financial Results

Aug. 03, 2020

TAMPA, Fla.--(BUSINESS WIRE)--Aug. 03, 2020--Masonite International Corporation ("Masonite" or "the Company") (NYSE: DOOR) today announced results for the three and six months ended June 28, 2020.

Executive Summary - 2Q20 versus 2Q19

* Net sales decreased 11% to $500 million versus $563 million, due to the negative impact of COVID-19. * Net income attributable to Masonite increased to $34 million from $24 million. The increase was primarily due to higher average unit price and lower selling, general and administration expenses. * Diluted earnings per share increased to $1.38 from $0.96 and adjusted diluted earnings per share* increased to $1.50 from $1.09. * Adjusted EBITDA* increased to $92 million from $80 million.

"We are extremely pleased with our second quarter performance and the resilience of our business, as we delivered significant margin expansion despite base volume declines," said Howard Heckes, President and CEO. "We benefited from our previously implemented pricing strategy and saw demand strengthen following an initial decline early in the quarter during the onset of the COVID-19 pandemic. Operationally we faced many headwinds, yet the organization did an exceptional job addressing these challenges in order to protect our employees and serve our customers. With continued uncertainty around the impact of the ongoing pandemic, we remain keenly focused on near-term execution while also monitoring emerging trends that may contribute to our business momentum following the crisis."

Second Quarter 2020 Discussion

Net sales decreased 11% to $500 million in the second quarter of 2020, from $563 million in the comparable period of 2019. The decrease in net sales was the result of a 15% decrease in base volume due to the impact of COVID-19, a 1% decrease from the net impact of a divestiture and an acquisition, a 1% decrease in the sale of components and other products and a 1% decrease due to foreign exchange, partially offset by a 7% increase in average unit price (AUP).

* North American Residential net sales were $381 million, flat compared to the second quarter of 2019, driven by a 9% increase in AUP offset by an 8% decrease in base volume and a 1% decrease in foreign exchange. * Europe net sales were $30 million, a 63% decrease compared to the second quarter of 2019, driven by a 54% decrease in base volume, a 5% decrease in sales volume from the net impact of a divestiture and an acquisition, a 2% decrease in AUP, a 1% decrease in the sale of components and other products and a 1% decrease due to foreign exchange. * Architectural net sales were $86 million, a 12% decrease compared to the second quarter of 2019, driven by a 14% decrease in base volume and a 3% decrease in the sale of components and other products, partially offset by a 5% increase in AUP.

Total company gross profit increased 6% to $136 million in the second quarter of 2020 compared to $129 million in the second quarter of 2019. Gross profit margin increased 440 basis points to 27.3%, driven by higher AUP and prior year restructuring actions, partially offset by the impact of lower volume, higher manufacturing wages and benefits and a portion of our planned 5-year $100 million reinvestment in the business related to our pricing strategy. Increased savings from material sourcing projects offset the combined impact of inflation and tariffs in the quarter.

Selling, general and administration (SG&A) expenses of $73 million decreased $5 million, or 6%, compared to the second quarter of 2019. The decrease in SG&A was primarily due to COVID-19 related cost reductions, partially offset by higher legal costs related to a previously disclosed lawsuit. SG&A as a percentage of net sales was 14.7%, an 80 basis point increase compared to the second quarter of 2019.

Net income attributable to Masonite increased $10 million to $34 million in the second quarter of 2020. Adjusted EBITDA* increased to $92 million in the second quarter of 2020 from $80 million in the second quarter of 2019.

Diluted earnings per share were $1.38 in the second quarter of 2020 compared to $0.96 in the comparable 2019 period. Diluted adjusted earnings per share* were $1.50 in the second quarter of 2020 compared to $1.09 in the comparable 2019 period. Diluted adjusted earnings per share* excludes $3 million in charges related to the loss on disposal of our India subsidiary and our previously announced restructuring plans incurred in the second quarter of 2020, and the impact of $3 million in charges related to restructuring and the divestiture of non-core businesses in the second quarter of 2019.

Year to Date 2020 Discussion

Net sales decreased 4% to $1,051 million in the first six months of 2020, from $1,093 million in the comparable period of 2019. The decrease in net sales was a result of a 7% decrease in base volume due to the impact of COVID-19, a 1% decrease from the net impact of divestitures and an acquisition, a 1% decrease in the sale of components and other products and a 1% decrease due to foreign exchange, partially offset by a 6% increase in AUP.

* North American Residential net sales were $765 million, a 4% increase compared to the first six months of 2019, driven by a 7% increase in AUP partially offset by a 2% decrease in base volume and a 1% decrease from foreign exchange. * Europe net sales were $101 million, a 39% decrease compared to the first six months of 2019, driven by a 31% decrease in base volume, a 7% decrease in sales volume from the net impact of divestitures and an acquisition and a 1% decrease due to foreign exchange. * Architectural net sales were $177 million, a 3% decrease compared to the first six months of 2019, driven by an 8% decrease in base volumes and a 1% decrease in the sale of components and other products, partially offset by a 6% increase in AUP.

Total company gross profit increased 12% to $271 million in the first six months of 2020, compared to $241 million in the comparable period of 2019. Gross profit margin increased 380 basis points to 25.8%, due to higher AUP, increased savings from material sourcing projects and prior year restructuring actions, partially offset by the impact of lower volume, higher inflation and tariffs on raw materials and higher manufacturing wages and benefits.

Selling, general and administrative (SG&A) expenses of $154 million decreased $3 million compared to the first six months of 2019. The decrease was primarily due to COVID-19 related cost reductions and non-cash items, partially offset by higher legal costs related to a previously disclosed lawsuit and higher personnel costs. SG&A as a percentage of net sales was 14.6%, a 30 basis point increase from the first six months of 2019.

Net income attributable to Masonite increased $36 million to $64 million in the first six months of 2020 primarily due to higher AUP, as discussed above, and the absence of prior year costs related to restructuring and divestiture of non-core businesses, partially offset by impact of lower volume. Adjusted EBITDA* increased $28 million to $173 million in the first six months of 2020.

Diluted earnings per share were $2.56 in the first six months of 2020 compared to $1.09 in the comparable 2019 period. Diluted adjusted earnings per share* were $2.74 in the first six months of 2020 compared to $1.90 in the comparable 2019 period. Diluted adjusted earnings per share* excludes $4 million in charges related to the loss on disposal of our India subsidiary and our previously announced restructuring plans incurred in the first half of 2020, and the impact of $21 million in charges related to restructuring and the divestiture of non-core businesses in the first half of 2019.

Masonite repurchased 567,271 shares of stock in the first six months of 2020 for $35 million, at an average price of $61.29, prior to temporarily suspending repurchases in March 2020.

* See "Non-GAAP Financial Measures and Related Information" for definition and reconciliation of non-GAAP measures.

Masonite Earnings Conference Call

The Company will hold a live conference call and webcast on August 4, 2020. The live audio webcast will begin at 9:00 a.m. EDT and can be accessed, together with the presentation, on the Masonite website www.masonite.com. The webcast can be directly accessed at: Q2'20 Earnings Webcast.

Telephone access to the live call will be available at 877-407-8289 (in the U.S.) or by dialing 201-689-8341 (outside the U.S.).

A telephone replay will be available approximately one hour following completion of the call through August 18, 2020. To access the replay, please dial 877-660-6853 (in the U.S.) or 201-612-7415 (outside U.S.). Enter Conference ID #13706346.

About Masonite

Masonite International Corporation is a leading global designer, manufacturer and distributor of interior and exterior doors for the new construction and repair, renovation and remodeling sectors of the residential and non-residential building construction markets. Since 1925, Masonite has provided its customers with innovative products and superior service at compelling values. Masonite currently serves more than 8,500 customers in 60 countries. Additional information about Masonite can be found at www.masonite.com.

Forward-looking Statements

This press release contains forward-looking information and other forward-looking statements within the meaning of applicable Canadian and/or U.S. securities laws, including our discussion of the impact of the COVID-19 pandemic, housing and other markets, and the effects of our restructuring and strategic initiatives. When used in this press release, such forward-looking statements may be identified by the use of such words as "may," "might," "could," "will," "would," "should," "expect," "believes," "outlook," "predict," "forecast," "objective," "remain," "anticipate," "estimate," "potential," "continue," "plan," "project," "targeting," or the negative of these terms or other similar terminology.

Forward-looking statements involve significant known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Masonite, or industry results, to be materially different from any future plans, goals, targets, objectives, results, performance or achievements expressed or implied by such forward-looking statements. As a result, such forward-looking statements should not be read as guarantees of future performance or results, should not be unduly relied upon, and will not necessarily be accurate indications of whether or not such results will be achieved. Factors that could cause actual results to differ materially from the results discussed in the forward-looking statements include, but are not limited to, downward trends in our end markets and in economic conditions; scale and scope of the current coronavirus ("COVID-19") pandemic on our operations, customer demand and supply chain; reduced levels of residential new construction; residential repair, renovation and remodeling; and non-residential building construction activity due to increases in mortgage rates, changes in mortgage interest deductions and related tax changes and reduced availability of financing; competition; the continued success of, and our ability to maintain relationships with, certain key customers in light of price increases and customer concentration and consolidation; tariffs and evolving trade policy and friction between the United States and other countries, including China and the impact of anti-dumping and countervailing trade cases; increases in prices of raw materials and fuel; increases in labor costs, the availability of labor, or labor relations (i.e., disruptions, strikes or work stoppages); our ability to manage our operations including anticipating demand for our products, managing disruptions in our operations, managing manufacturing realignments (including related restructuring charges), managing customer credit risk and successful integration of acquisitions; the continuous operation of our information technology and enterprise resource planning systems and management of potential cyber security threats and attacks; our ability to generate sufficient cash flows to fund our capital expenditure requirements, to meet our pension obligations, and to meet our debt service obligations, including our obligations under our senior notes and our ABL Facility; political, economic and other risks that arise from operating a multinational business; uncertainty relating to the United Kingdom's exit from the European Union; fluctuating exchange and interest rates; our ability to innovate and keep pace with technological developments; product liability claims and product recalls; retention of key management personnel; limitations on operating our business as a result of covenant restrictions under our existing and future indebtedness, including our senior notes and our ABL Facility; and environmental and other government regulations, including the FCPA, and any changes in such regulations.

Non-GAAP Financial Measures and Related Information

Our management reviews net sales and Adjusted EBITDA (as defined below) to evaluate segment performance and allocate resources. Net assets are not allocated to the reportable segments. Adjusted EBITDA is a non-GAAP financial measure which does not have a standardized meaning under GAAP and is unlikely to be comparable to similar measures used by other companies. Adjusted EBITDA should not be considered as an alternative to either net income or operating cash flows determined in accordance with GAAP. Additionally, Adjusted EBITDA is not intended to be a measure of free cash flow for management's discretionary use, as it does not include certain cash requirements such as interest payments, tax payments and debt service requirements. Adjusted EBITDA is defined as net income attributable to Masonite adjusted to exclude the following items: depreciation; amortization; share based compensation expense; loss (gain) on disposal of property, plant and equipment; registration and listing fees; restructuring costs; asset impairment; loss (gain) on disposal of subsidiaries; interest expense (income), net; loss on extinguishment of debt; other expense (income), net; income tax expense (benefit); loss (income) from discontinued operations, net of tax; and net income (loss) attributable to non-controlling interest. This definition of Adjusted EBITDA differs from the definitions of EBITDA contained in the indentures governing the 2026 and 2028 Notes and the credit agreement governing the ABL Facility. Adjusted EBITDA, as calculated under our ABL Facility or senior notes would also include, among other things, additional add-backs for amounts related to: cost savings projected by us in good faith to be realized as a result of actions taken or expected to be taken prior to or during the relevant period; fees and expenses in connection with certain plant closures and layoffs; and the amount of any restructuring charges, integration costs or other business optimization expenses or reserve deducted in the relevant period in computing consolidated net income, including any one-time costs incurred in connection with acquisitions. Adjusted EBITDA is used to evaluate and compare the performance of the segments and it is one of the primary measures used to determine employee incentive compensation. Intersegment sales are recorded using market prices. We believe that Adjusted EBITDA, from an operations standpoint, provides an appropriate way to measure and assess segment performance. Our management team has established the practice of reviewing the performance of each segment based on the measures of net sales and Adjusted EBITDA. We believe that Adjusted EBITDA is useful to users of the consolidated financial statements because it provides the same information that we use internally to evaluate and compare the performance of the segments and it is one of the primary measures used to determine employee incentive compensation.

The tables below set forth a reconciliation of net income (loss) attributable to Masonite to Adjusted EBITDA for the periods indicated.

Adjusted EBITDA margin is defined as Adjusted EBITDA divided by Net Sales. Management believes this measure provides supplemental information on how successfully we operate our business.

Adjusted EPS is diluted earnings per common share attributable to Masonite (EPS) less restructuring costs, asset impairment charges, loss (gain) on disposal of subsidiaries, loss on extinguishment of debt and other items, if any, that do not relate to Masonite's underlying business performance (each net of related tax expense (benefit)). Management uses this measure to evaluate the overall performance of the Company and believes this measure provides investors with helpful supplemental information regarding the underlying performance of the Company from period to period. This measure may be inconsistent with similar measures presented by other companies.

Certain amounts in the Condensed Consolidated Financial Statements and associated tables may not foot due to rounding. All percentages have been calculated using unrounded amounts.

MASONITE INTERNATIONAL CORPORATION

SALES RECONCILIATION AND ADJUSTED EBITDA BY REPORTABLE SEGMENT

(In millions of U.S. dollars)

(Unaudited)

North Corporate American Europe Architectural & Total % Change Residential Other

Secondquarter 2019 $ 379.6 $ 81.0 $ 97.2 $ 5.2 $ 562.9 net sales

Acquisitions,net of - (4.3) - - (4.3) (0.8) %divestitures

Base volume (29.7) (43.7) (14.0) 0.7 (86.7) (15.4) %

Average unit 35.8 (1.7) 5.3 - 39.4 7.0 %price

Other (0.9) (0.4) (2.5) (2.9) (6.7) (1.2) %

Foreign (3.6) (1.0) (0.4) - (4.9) (0.9) %exchange

Secondquarter 2020 $ 381.2 $ 29.9 $ 85.6 $ 3.0 $ 499.7 net sales

Year overyear growth, 0.4 % (63.1) % (11.9) % (42.3) % (11.2) % net sales



Secondquarter 2019 63.4 13.4 12.8 (9.9) 79.7 AdjustedEBITDA

Secondquarter 2020 91.1 (0.9) 11.5 (9.8) 91.9 AdjustedEBITDA

Year overyear growth, 43.7 % (106.8) % (10.0) % nm 15.2 % AdjustedEBITDA

North Europe Corporate % American Segment Architectural & Total Change Residential Other

Year to date2019 net $ 733.3 $ 165.2 $ 182.8 $ 11.9 $ 1,093.3 sales

Acquisitions - (11.6) - - (11.6) (1.1) %

Base volume (11.5) (50.7) (15.3) 0.2 (77.3) (7.1) %

Average unit 48.1 0.6 11.6 - 60.3 5.5 %price

Other (0.5) (0.7) (1.8) (3.7) (6.7) (0.6) %

Foreign (4.4) (2.2) (0.4) - (7.1) (0.6) %exchange

Year to date2020 net $ 765.0 $ 100.6 $ 176.9 $ 8.4 $ 1,050.9 sales

Year overyear growth, 4.3 % (39.1) % (3.2) % (29.4) % (3.9) % net sales



Year to date2019 $ 117.0 $ 23.4 $ 20.4 $ (15.6) $ 145.2 AdjustedEBITDA

Year to date2020 162.8 8.8 22.1 (20.3) 173.4 AdjustedEBITDA

Year overyear growth, 39.1 % (62.6) % 8.3 % nm 19.4 % AdjustedEBITDA

MASONITE INTERNATIONAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands of U.S. dollars, except share and per share amounts)

(Unaudited)

Three Months Ended Six Months Ended

June 28, June 30, June 28, June 30, 2020 2019 2020 2019

Net sales $ 499,658 $ 562,943 $ 1,050,886 $ 1,093,254

Cost of goods sold 363,304 434,013 780,251 852,220

Gross profit 136,354 128,930 270,635 241,034

Gross profit as a % 27.3 % 22.9 % 25.8 % 22.0 %of net sales



Selling, general andadministration 73,390 78,142 153,723 156,242 expenses

Selling, general andadministration 14.7 % 13.9 % 14.6 % 14.3 %expenses as a % ofnet sales



Restructuring costs 1,148 1,361 3,089 5,101

Asset impairment - 3,142 - 13,767

Loss on disposal of 2,091 - 2,091 4,605 subsidiaries

Operating income 59,725 46,285 111,732 61,319

Interest expense, net 11,824 11,357 23,106 22,484

Other expense (1,446) (456) (1,397) (1,586) (income), net

Income before income 49,347 35,384 90,023 40,421 tax expense

Income tax expense 14,687 10,293 24,326 10,351

Net income 34,660 25,091 65,697 30,070

Less: net incomeattributable to 663 849 1,815 2,039 non-controllinginterests

Net incomeattributable to $ 33,997 $ 24,242 $ 63,882 $ 28,031 Masonite



Basic earnings percommon share $ 1.39 $ 0.96 $ 2.59 $ 1.11 attributable toMasonite

Diluted earnings percommon share $ 1.38 $ 0.96 $ 2.56 $ 1.09 attributable toMasonite



Shares used incomputing basic 24,466,575 25,126,065 24,664,008 25,350,488earnings per share

Shares used incomputing diluted 24,651,407 25,376,618 24,932,864 25,645,523earnings per share

MASONITE INTERNATIONAL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. dollars, except share amounts)

(Unaudited)

ASSETS June 28, December 29, 2020 2019

Current assets:

Cash and cash equivalents $ 197,506 $ 166,964

Restricted cash 10,644 10,644

Accounts receivable, net 289,030 276,208

Inventories, net 250,718 242,230

Prepaid expenses 35,317 33,190

Income taxes receivable 2,584 4,819

Total current assets 785,799 734,055

Property, plant and equipment, net 611,942 625,585

Operating lease right-of-use assets 133,068 121,367

Investment in equity investees 14,334 16,100

Goodwill 180,443 184,192

Intangible assets, net 168,592 184,532

Deferred income taxes 20,708 25,945

Other assets 46,945 44,808

Total assets $ 1,961,831 $ 1,936,584



LIABILITIES AND EQUITY

Current liabilities:

Accounts payable $ 83,149 $ 84,912

Accrued expenses 168,684 180,405

Income taxes payable 14,346 2,350

Total current liabilities 266,179 267,667

Long-term debt 791,536 790,984

Long-term operating lease liabilities 123,825 110,497

Deferred income taxes 84,386 83,465

Other liabilities 49,660 47,109

Total liabilities 1,315,586 1,299,722

Commitments and Contingencies

Equity:

Share capital: unlimited shares authorized, nopar value, 24,487,121 and 24,869,921 shares 553,766 558,514 issued and outstanding as of June 28, 2020, andDecember 29, 2019, respectively

Additional paid-in capital 213,814 216,584

Accumulated earnings (deficit) 21,794 (20,047)

Accumulated other comprehensive loss (153,547) (130,169)

Total equity attributable to Masonite 635,827 624,882

Equity attributable to non-controlling interests 10,418 11,980

Total equity 646,245 636,862

Total liabilities and equity $ 1,961,831 $ 1,936,584

MASONITE INTERNATIONAL CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

TO GAAP FINANCIAL MEASURES

(In thousands of U.S. dollars, except share and per share amounts)

(Unaudited)

Three Months Ended Six Months Ended

(In thousands) June 28, June 30, June 28, June 30, 2020 2019 2020 2019

Net incomeattributable to $ 33,997 $ 24,242 $ 63,882 $ 28,031 Masonite



Add: Adjustments tonet income attributable toMasonite:

Restructuring costs 1,148 1,361 3,089 5,101

Asset impairment - 3,142 - 13,767

Loss on disposal of 2,091 - 2,091 4,605 subsidiaries

Loss on disposal ofproperty, plant and - - - 2,450 equipment related todivestitures

Income tax impact of (298) (1,161) (806) (5,278) adjustments

Adjusted net incomeattributable to $ 36,938 $ 27,584 $ 68,256 $ 48,676 Masonite



Diluted earnings percommon share $ 1.38 $ 0.96 $ 2.56 $ 1.09 attributable toMasonite ("EPS")

Diluted adjustedearnings per commonshare attributable to $ 1.50 $ 1.09 $ 2.74 $ 1.90 Masonite ("AdjustedEPS")



Shares used incomputing EPS and 24,651,407 25,376,618 24,932,864 25,645,523 Adjusted EPS

The weighted average number of shares outstanding utilized for the diluted EPS and diluted Adjusted EPS calculation contemplates the exercise of all currently outstanding SARs and the conversion of all RSUs. The dilutive effect of such equity awards is calculated based on the weighted average share price for each fiscal period using the treasury stock method. For all periods presented, common shares issuable for stock instruments which would have had an anti-dilutive impact under the treasury stock method have been excluded from the computation of diluted earnings per share.

Three Months Ended June 28, 2020

North Corporate &(In thousands) American Europe Architectural Other Total Residential

Net income(loss) $ 79,841 $ (6,376) $ 4,983 $ (44,451) $ 33,997 attributable toMasonite

Plus:

Depreciation 8,729 2,367 2,777 2,970 16,843

Amortization 512 3,270 1,750 390 5,922

Share basedcompensation - - - 3,740 3,740 expense

Loss ondisposal of 506 7 1,904 6 2,423 property, plantand equipment

Restructuring 914 - 86 148 1,148 costs

Loss ondisposal of - - - 2,091 2,091 subsidiaries

Interest - - - 11,824 11,824 expense, net

Other expense - (186) - (1,260) (1,446) (income), net

Income tax - - - 14,687 14,687 expense

Net incomeattributable to 629 - - 34 663 non-controllinginterest

Adjusted EBITDA $ 91,131 $ (918) $ 11,500 $ (9,821) $ 91,892

Three Months Ended June 30, 2019

North Corporate &(In thousands) American Europe Architectural Other Total Residential

Net income(loss) $ 46,829 $ 7,184 $ 7,186 $ (36,957) $ 24,242 attributable toMasonite

Plus:

Depreciation 9,800 2,354 3,505 2,542 18,201

Amortization 437 3,656 2,154 1,082 7,329

Share basedcompensation - - - 2,093 2,093 expense

Loss ondisposal of 1,110 148 49 15 1,322 property, plantand equipment

Restructuring 1,313 101 (118) 65 1,361 costs

Asset 3,142 - - - 3,142 impairment

Interest - - - 11,357 11,357 expense, net

Other expense 86 (35) 2 (509) (456) (income), net

Income tax - - - 10,293 10,293 expense

Net incomeattributable to 684 - - 165 849 non-controllinginterest

Adjusted EBITDA $ 63,401 $ 13,408 $ 12,778 $ (9,854) $ 79,733

Six Months Ended June 28, 2020

North Corporate &(In thousands) American Europe Architectural Other Total Residential

Net income(loss) $ 138,652 $ (2,893) $ 9,563 $ (81,440) $ 63,882 attributable toMasonite

Plus:

Depreciation 18,093 4,824 5,599 4,345 32,861

Amortization 1,107 6,832 3,672 770 12,381

Share basedcompensation - - - 7,210 7,210 expense

Loss ondisposal of 1,710 10 2,300 25 4,045 property, plantand equipment

Restructuring 1,763 (37) 948 415 3,089 costs

Loss ondisposal of - - - 2,091 2,091 subsidiaries

Interest - - - 23,106 23,106 expense, net

Other expense - 25 - (1,422) (1,397) (income), net

Income tax - - - 24,326 24,326 expense

Net incomeattributable to 1,502 - - 313 1,815 non-controllinginterest

Adjusted EBITDA $ 162,827 $ 8,761 $ 22,082 $ (20,261) $ 173,409

Six Months Ended June 30, 2019

North Corporate &(In thousands) American Europe Architectural Other Total Residential

Net income(loss) $ 77,090 $ 3,037 $ 9,265 $ (61,361) $ 28,031 attributable toMasonite

Plus:

Depreciation 18,879 4,736 6,246 6,625 36,486

Amortization 886 7,621 4,247 2,172 14,926

Share basedcompensation - - - 4,773 4,773 expense

Loss ondisposal of 1,451 2,617 146 21 4,235 property, plantand equipment

Restructuring 3,193 963 486 459 5,101 costs

Asset 13,767 - - - 13,767 impairment

Loss ondisposal of - 4,605 - - 4,605 subsidiaries

Interest - - - 22,484 22,484 expense, net

Other expense 86 (174) 2 (1,500) (1,586) (income), net

Income tax - - - 10,351 10,351 expense

Net incomeattributable to 1,670 - - 369 2,039 non-controllinginterest

Adjusted EBITDA $ 117,022 $ 23,405 $ 20,392 $ (15,607) $ 145,212

View source version on businesswire.com: https://www.businesswire.com/news/home/20200803005754/en/

CONTACT: Joanne Freiberger, CPA, CTP, IRC VP, TREASURER jfreiberger@masonite.com 813.739.1808

CONTACT: Farand Pawlak, CPA DIRECTOR, INVESTOR RELATIONS fpawlak@masonite.com 813.371.5839