Business Wire | Oct 27, 2021 07:00AM EDT

Masco Corporation Reports Third Quarter 2021 Results

Oct. 27, 2021

LIVONIA, Mich.--(BUSINESS WIRE)--Oct. 27, 2021--Masco Corporation (NYSE: MAS), one of the world's leading manufacturers of branded home improvement and building products, reported its third quarter results.

"Masco delivered its fifth consecutive quarter of double-digit sales growth, demonstrating the resourcefulness and strength of our organization in the face of ongoing headwinds," said Masco President and CEO, Keith Allman. "Our team effectively navigated supply chain challenges to deliver for our customers while successfully implementing pricing and cost productivity actions to offset persistent inflation. We also advanced our capital deployment strategy by returning approximately $186 million to shareholders in the form of dividends and share repurchases, bringing our year-to-date total dividends and share repurchases to $1.0 billion."

2021 Third Quarter Commentary

* On a reported basis, compared to third quarter 2020: Net sales increased 11 percent to $2,204 million; in local currency and excluding acquisitions and divestitures, net sales increased nine percent In local currency, North American sales increased nine percent and international sales increased 15 percent Gross margins decreased 370 basis points to 34.2 percent from 37.9 percent Operating profit decreased nine percent to $385 million Operating margins decreased 390 basis points to 17.5 percent from 21.4 percent Income from continuing operations was $0.89 per share, compared to $1.05 per share * Compared to third quarter 2020, results for key financial measures, as adjusted for certain items (see Exhibit A) and with a normalized tax rate of 25 percent, were as follows: Gross margins decreased 380 basis points to 34.2 percent compared to 38.0 percent Operating profit decreased nine percent to $385 million from $425 million Operating margins decreased 390 basis points to 17.5 percent compared to 21.4 percent Income from continuing operations decreased to $0.99 per share, compared to $1.06 per share * Liquidity as of September 30, 2021 was $1,854 million (including availability under our revolving credit facility) * Plumbing Products' net sales increased 16 percent; in local currency and excluding acquisitions and divestitures, sales increased 13 percent * Decorative Architectural Products' net sales increased four percent; excluding acquisitions, sales increased three percent

Allman continued, "Demand for our products remains strong across categories and channels, and we are continuing to enhance our operational efficiency and capitalize on opportunities while navigating supply chain constraints and inflation. Based on the strength of our year-to-date performance, we expect to deliver full year adjusted earnings per share in the range of $3.67 to $3.73 per share, representing approximately 19 percent growth at the midpoint compared to 2020. While we will provide further guidance on our fourth quarter earnings call, based on our current view of our business, we expect to achieve margin expansion and double-digit adjusted earnings per share growth in 2022, consistent with the long-term growth outlook we provided earlier this year."

Dividend Declaration

Masco's Board of Directors declared a quarterly dividend of $0.235 per common share, payable on November 29, 2021, to shareholders of record on November 12, 2021.

About Masco

Headquartered in Livonia, Michigan, Masco Corporation is a global leader in the design, manufacture and distribution of branded home improvement and building products. Our portfolio of industry-leading brands includes Behr(r) paint; Delta(r) and Hansgrohe(r) faucets, bath and shower fixtures; Kichler(r) decorative and outdoor lighting; and HotSpring(r) spas. We leverage our powerful brands across product categories, sales channels and geographies to create value for our customers and shareholders. For more information about Masco Corporation, visit www.masco.com.

The third quarter 2021 supplemental material, including a presentation in PDF format, is available on Masco's website at www.masco.com.

Conference Call Detail

A conference call regarding items contained in this release is scheduled for Wednesday, October 27, 2021 at 8:00 a.m. ET. Participants in the call are asked to register five to ten minutes prior to the scheduled start time by dialing (844) 549-7577 and from outside the U.S. at (442) 275-1712. Please use the conference identification number 9989065. The conference call will be webcast simultaneously and in its entirety through Masco's website. Shareholders, media representatives and others interested in Masco may participate in the webcast by registering through the Investor Relations section on Masco's website.

A replay of the call will be available on Masco's website or by phone by dialing (855) 859-2056 and from outside the U.S. at (404) 537-3406. Please use the conference identification number 9989065. The telephone replay will be available approximately two hours after the end of the call and continue through November 27, 2021.

Safe Harbor Statement

This press release contains statements that reflect our views about our future performance and constitute "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "outlook," "believe," "anticipate," "appear," "may," "will," "should," "intend," "plan," "estimate," "expect," "assume," "seek," "forecast," and similar references to future periods. Our views about future performance involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. We caution you against relying on any of these forward-looking statements.

Our future performance may be affected by the levels of residential repair and remodel activity, and to a lesser extent, new home construction, our ability to maintain our strong brands and reputation and to develop innovative products, our ability to maintain our competitive position in our industries, our reliance on key customers, the length and severity of the ongoing COVID-19 pandemic, including its impact on domestic and international economic activity, consumer confidence, our production capabilities, our employees and our supply chain; the cost and availability of materials and the imposition of tariffs, our dependence on third-party suppliers, risks associated with our international operations and global strategies, our ability to achieve the anticipated benefits of our strategic initiatives, our ability to successfully execute our acquisition strategy and integrate businesses that we have and may acquire, our ability to attract, develop and retain talented and diverse personnel, risks associated with our reliance on information systems and technology, and our ability to achieve the anticipated benefits from our investments in new technology. These and other factors are discussed in detail in Item 1A "Risk Factors" in our most recent Annual Report on Form 10-K, as well as in our Quarterly Reports on Form 10-Q and in other filings we make with the Securities and Exchange Commission. Any forward-looking statement made by us speaks only as of the date on which it was made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. Unless required by law, we undertake no obligation to update publicly any forward-looking statements as a result of new information, future events or otherwise.

MASCO CORPORATION

Condensed Consolidated Statements of Operations - Unaudited

For the Three and Nine Months Ended September 30, 2021 and 2020

(in millions, except per common share data)

Three Months Ended Nine Months Ended September 30, September 30,

2021 2020 2021 2020

Net sales $ 2,204 $ 1,983 $ 6,353 $ 5,328

Cost of sales 1,451 1,231 4,109 3,401

Gross profit 753 752 2,244 1,927



Selling, general and administrative 368 328 1,057 939 expenses

Operating profit 385 424 1,187 988



Other expense, net:

Interest expense (26) (40) (253) (110)

Other, net (17) (4) (438) (22)

(43) (44) (691) (132)

Income from continuing operations 342 380 496 856 before income taxes



Income tax expense 103 87 158 202

Income from continuing operations 239 293 338 654



Income from discontinued operations, - - - 411 net

Net income 239 293 338 1,065



Less: Net income attributable to 19 18 60 36 noncontrolling interest

Net income attributable to Masco $ 220 $ 275 $ 278 $ 1,029 Corporation



Income per common share attributable to Masco Corporation (diluted):

Income from continuing operations $ 0.89 $ 1.05 $ 1.07 $ 2.31

Income from discontinued operations, - - - 1.54 net

Net income $ 0.89 $ 1.05 $ 1.07 $ 3.85



Average diluted common shares 247 261 253 266 outstanding



Amounts attributable to Masco Corporation:

Income from continuing operations $ 220 $ 275 $ 278 $ 618

Income from discontinued operations, - - - 411 net

Net income attributable to Masco $ 220 $ 275 $ 278 $ 1,029 Corporation

Historical information is available on our website.

MASCO CORPORATION

Exhibit A: Reconciliations - Unaudited

For the Three and Nine Months Ended September 30, 2021 and 2020

(dollars in millions)

Three Months Ended September 30,

Nine Months Ended September 30,

2021

2020

2021

2020

Gross Profit, Selling, General and Administrative Expenses, and Operating Profit Reconciliations

Net sales

$

2,204

$

1,983

$

6,353

$

5,328

Gross profit, as reported

$

753

$

752

$

2,244

$

1,927

Rationalization charges

-

1

2

7

Gross profit, as adjusted

$

753

$

753

$

2,246

$

1,934

Gross margin, as reported

34.2

%

37.9

%

35.3

%

36.2

%

Gross margin, as adjusted

34.2

%

38.0

%

35.4

%

36.3

%

Selling, general and administrative expenses, as reported

$

368

$

328

$

1,057

$

939

Rationalization charges

-

-

-

2

Selling, general and administrative expenses, as adjusted

$

368

$

328

$

1,057

$

937

Selling, general and administrative expenses as percent of net sales, as reported

16.7

%

16.5

%

16.6

%

17.6

%

Selling, general and administrative expenses as percent of net sales, as adjusted

16.7

%

16.5

%

16.6

%

17.6

%

Operating profit, as reported

$

385

$

424

$

1,187

$

988

Rationalization charges

-

1

2

9

Operating profit, as adjusted

$

385

$

425

$

1,189

$

997

Operating margin, as reported

17.5

%

21.4

%

18.7

%

18.5

%

Operating margin, as adjusted

17.5

%

21.4

%

18.7

%

18.7

%

Historical information is available on our website.

MASCO CORPORATION

Exhibit A: Reconciliations - Unaudited

For the Three and Nine Months Ended September 30, 2021 and 2020

(dollars in millions)

Three Months Ended Nine Months Ended September 30, September 30,

2021 2020 2021 2020

Gross Profit, Selling, Generaland Administrative Expenses, and Operating Profit Reconciliations



Net sales $ 2,204 $ 1,983 $ 6,353 $ 5,328



Gross profit, as reported $ 753 $ 752 $ 2,244 $ 1,927

Rationalization charges - 1 2 7

Gross profit, as adjusted $ 753 $ 753 $ 2,246 $ 1,934



Gross margin, as reported 34.2 % 37.9 % 35.3 % 36.2 %

Gross margin, as adjusted 34.2 % 38.0 % 35.4 % 36.3 %



Selling, general andadministrative expenses, as $ 368 $ 328 $ 1,057 $ 939 reported

Rationalization charges - - - 2

Selling, general andadministrative expenses, as $ 368 $ 328 $ 1,057 $ 937 adjusted



Selling, general andadministrative expenses as 16.7 % 16.5 % 16.6 % 17.6 %percent of net sales, as reported

Selling, general andadministrative expenses as 16.7 % 16.5 % 16.6 % 17.6 %percent of net sales, as adjusted



Operating profit, as reported $ 385 $ 424 $ 1,187 $ 988

Rationalization charges - 1 2 9

Operating profit, as adjusted $ 385 $ 425 $ 1,189 $ 997



Operating margin, as reported 17.5 % 21.4 % 18.7 % 18.5 %

Operating margin, as adjusted 17.5 % 21.4 % 18.7 % 18.7 %

Historical information is available on our website.

MASCO CORPORATION

Exhibit A: Reconciliations - Unaudited

For the Three and Nine Months Ended September 30, 2021 and 2020

(in millions, except per common share data)

Three Months Ended September 30,

Nine Months Ended September 30,

2021

2020

2021

2020

Income Per Common Share Reconciliations

Income from continuing operations before income taxes, as reported

$

342

$

380

$

496

$

856

Rationalization charges

-

1

2

9

Pension costs associated with terminated plans

-

6

422

17

Fair value adjustment to contingent earnout obligation

14

-

14

-

Loss on sale of business

-

-

18

-

(Gain) on preferred stock redemption

-

-

(14)

-

(Earnings) from equity investments, net

(5)

(1)

(7)

(1)

Loss on extinguishment of debt

-

6

168

6

Income from continuing operations before income taxes, as adjusted

351

392

1,099

887

Tax at 25% rate

(88)

(98)

(275)

(222)

Less: Net income attributable to noncontrolling interest

19

18

60

36

Income from continuing operations, as adjusted

$

244

$

276

$

764

$

629

Income from continuing operations per common share, as adjusted

$

0.99

$

1.06

$

3.02

$

2.36

Average diluted common shares outstanding

247

261

253

266

Historical information is available on our website.

MASCO CORPORATION

Exhibit A: Reconciliations - Unaudited

For the Three and Nine Months Ended September 30, 2021 and 2020

(in millions, except per common share data)

Three Months Ended Nine Months Ended September 30, September 30,

2021 2020 2021 2020

Income Per Common Share Reconciliations



Income from continuing operations $ 342 $ 380 $ 496 $ 856 before income taxes, as reported

Rationalization charges - 1 2 9

Pension costs associated with - 6 422 17 terminated plans

Fair value adjustment to contingent 14 - 14 - earnout obligation

Loss on sale of business - - 18 -

(Gain) on preferred stock redemption - - (14) -

(Earnings) from equity investments, (5) (1) (7) (1) net

Loss on extinguishment of debt - 6 168 6

Income from continuing operations 351 392 1,099 887 before income taxes, as adjusted

Tax at 25% rate (88) (98) (275) (222)

Less: Net income attributable to 19 18 60 36 noncontrolling interest

Income from continuing operations, $ 244 $ 276 $ 764 $ 629 as adjusted



Income from continuing operations $ 0.99 $ 1.06 $ 3.02 $ 2.36 per common share, as adjusted



Average diluted common shares 247 261 253 266 outstanding

Historical information is available on our website.

MASCO CORPORATION

Exhibit A: Reconciliations - Unaudited

For the Three and Nine Months Ended September 30, 2021 and 2020

Outlook for the Twelve Months Ended December 31, 2021

Twelve Months Ended December 31, 2021

Low End

High End

Income Per Common Share Outlook

Income from continuing operations per common share

$

1.67

$

1.73

Rationalization charges

0.01

0.01

Pension costs associated with terminated plans (1)

1.32

1.32

Fair value adjustment to contingent earnout obligation (2)

0.04

0.04

Loss on sale of business

0.05

0.05

(Gain) on preferred stock redemption

(0.04)

(0.04)

(Earnings) from equity investments, net

(0.02)

(0.02)

Loss on extinguishment of debt

0.53

0.53

Losses providing no tax benefit (3)

0.08

0.08

Allocation to participating securities per share (4)

0.03

0.03

Income from continuing operations per common share, as adjusted

$

3.67

$

3.73

MASCO CORPORATION

Exhibit A: Reconciliations - Unaudited

For the Three and Nine Months Ended September 30, 2021 and 2020



Outlook for the Twelve Months Ended December 31, 2021

Twelve Months Ended December 31, 2021

Low End High End

Income Per Common Share Outlook



Income from continuing operations per common $ 1.67 $ 1.73 share

Rationalization charges 0.01 0.01

Pension costs associated with terminated plans 1.32 1.32 (1)

Fair value adjustment to contingent earnout 0.04 0.04 obligation (2)

Loss on sale of business 0.05 0.05

(Gain) on preferred stock redemption (0.04) (0.04)

(Earnings) from equity investments, net (0.02) (0.02)

Loss on extinguishment of debt 0.53 0.53

Losses providing no tax benefit (3) 0.08 0.08

Allocation to participating securities per share 0.03 0.03 (4)

Income from continuing operations per common $ 3.67 $ 3.73 share, as adjusted

(1)Represents costs associated with our qualified domestic defined-benefit pension plans that were settled in the second quarter of 2021.

(2)

Represents expense from the revaluation of contingent consideration related to a prior acquisition in the third quarter of 2021.

(3)

Represents losses providing no tax benefit in certain jurisdictions, primarily related to the termination of our qualified domestic defined-benefit pension plans and the divestiture of a business in the second quarter of 2021.

(4)

Represents the impact of distributed dividends and undistributed earnings to unvested restricted stock awards as well as an allocation to redeemable noncontrolling interest in accordance with the two-class method of calculating earnings per share.

Historical information is available on our website. Represents costs associated with our qualified domestic defined-benefit(1) pension plans that were settled in the second quarter of 2021.

(2) Represents expense from the revaluation of contingent consideration related to a prior acquisition in the third quarter of 2021.

Represents losses providing no tax benefit in certain jurisdictions,(3) primarily related to the termination of our qualified domestic defined-benefit pension plans and the divestiture of a business in the second quarter of 2021.

(4) Represents the impact of distributed dividends and undistributed earnings to unvested restricted stock awards as well as an allocation to redeemable noncontrolling interest in accordance with the two-class method of calculating earnings per share.

Historical information is available on our website.MASCO CORPORATION

Condensed Consolidated Balance Sheets and Other Financial Data - Unaudited

September 30, 2021 and December 31, 2020

(dollars in millions)

September 30, 2021

December 31, 2020

Balance Sheet

Assets

Current Assets:

Cash and cash investments

$

854

$

1,326

Receivables

1,330

1,138

Prepaid expenses and other

113

149

Inventories

1,107

876

Total Current Assets

3,404

3,489

Property and equipment, net

887

908

Operating lease right-of-use assets

171

166

Goodwill

617

563

Other intangible assets, net

395

357

Other assets

121

294

Total Assets

$

5,595

$

5,777

Liabilities

Current Liabilities:

Accounts payable

$

1,037

$

893

Notes payable

10

3

Accrued liabilities

832

1,038

Total Current Liabilities

1,879

1,934

Long-term debt

2,950

2,792

Noncurrent operating lease liabilities

155

149

Other liabilities

485

481

Total Liabilities

5,469

5,356

Redeemable noncontrolling interest

25

-

Equity

101

421

Total Liabilities and Equity

$

5,595

$

5,777

MASCO CORPORATION

Condensed Consolidated Balance Sheets and Other Financial Data - Unaudited

September 30, 2021 and December 31, 2020

(dollars in millions)

September 30, 2021 December 31, 2020

Balance Sheet

Assets

Current Assets:

Cash and cash investments $ 854 $ 1,326

Receivables 1,330 1,138

Prepaid expenses and other 113 149

Inventories 1,107 876

Total Current Assets 3,404 3,489



Property and equipment, net 887 908

Operating lease right-of-use assets 171 166

Goodwill 617 563

Other intangible assets, net 395 357

Other assets 121 294

Total Assets $ 5,595 $ 5,777



Liabilities

Current Liabilities:

Accounts payable $ 1,037 $ 893

Notes payable 10 3

Accrued liabilities 832 1,038

Total Current Liabilities 1,879 1,934



Long-term debt 2,950 2,792

Noncurrent operating lease liabilities 155 149

Other liabilities 485 481

Total Liabilities 5,469 5,356



Redeemable noncontrolling interest 25 -



Equity 101 421

Total Liabilities and Equity $ 5,595 $ 5,777

As of September 30,

2021

2020

Other Financial Data

Working Capital Days

Receivable days

51

55

Inventory days

80

70

Payable days

65

74

Working capital

$

1,400

$

1,140

Working capital as a % of sales (LTM)

17.0

%

16.4

%

Historical information is available on our website.

As of September 30,

2021 2020

Other Financial Data

Working Capital Days

Receivable days 51 55

Inventory days 80 70

Payable days 65 74

Working capital $ 1,400 $ 1,140

Working capital as a % of sales (LTM) 17.0 % 16.4 %

Historical information is available on our website.

MASCO CORPORATION

Condensed Consolidated Statements of Cash Flows and Other Financial Data - Unaudited

For the Nine Months Ended September 30, 2021 and 2020

(dollars in millions)

Nine Months Ended September 30,

2021

2020

Cash Flows From (For) Operating Activities:

Cash provided by operating activities

$

904

$

590

Working capital changes

(309)

(17)

Net cash from operating activities

595

573

Cash Flows From (For) Financing Activities:

Retirement of notes

(1,326)

(400)

Purchase of Company common stock

(878)

(602)

Cash dividends paid

(154)

(108)

Dividends paid to noncontrolling interest

(43)

(23)

Issuance of notes, net of issuance costs

1,481

415

Debt extinguishment costs

(160)

(5)

Proceeds from the exercise of stock options

1

26

Employee withholding taxes paid on stock-based compensation

(14)

(25)

(Decrease) increase in debt, net

(2)

1

Net cash for financing activities

(1,095)

(721)

Cash Flows From (For) Investing Activities:

Capital expenditures

(82)

(72)

Acquisition of businesses, net of cash acquired

(57)

(24)

Proceeds from disposition of businesses, net of cash disposed

5

868

Proceeds from disposition of other financial investments

170

2

Other, net

7

(4)

Net cash from investing activities

43

770

Effect of exchange rate changes on cash and cash investments

(15)

7

Cash and Cash Investments:

(Decrease) increase for the period

(472)

629

At January 1

1,326

697

At September 30

$

854

$

1,326

MASCO CORPORATION

Condensed Consolidated Statements of Cash Flows and Other Financial Data -Unaudited

For the Nine Months Ended September 30, 2021 and 2020

(dollars in millions)

Nine Months Ended September 30,

2021 2020

Cash Flows From (For) Operating Activities:

Cash provided by operating activities $ 904 $ 590

Working capital changes (309) (17)

Net cash from operating activities 595 573



Cash Flows From (For) Financing Activities:

Retirement of notes (1,326) (400)

Purchase of Company common stock (878) (602)

Cash dividends paid (154) (108)

Dividends paid to noncontrolling interest (43) (23)

Issuance of notes, net of issuance costs 1,481 415

Debt extinguishment costs (160) (5)

Proceeds from the exercise of stock options 1 26

Employee withholding taxes paid on stock-based (14) (25) compensation

(Decrease) increase in debt, net (2) 1

Net cash for financing activities (1,095) (721)



Cash Flows From (For) Investing Activities:

Capital expenditures (82) (72)

Acquisition of businesses, net of cash acquired (57) (24)

Proceeds from disposition of businesses, net of cash 5 868 disposed

Proceeds from disposition of other financial 170 2 investments

Other, net 7 (4)

Net cash from investing activities 43 770



Effect of exchange rate changes on cash and cash (15) 7 investments



Cash and Cash Investments:

(Decrease) increase for the period (472) 629

At January 1 1,326 697

At September 30 $ 854 $ 1,326

As of September 30,

2021

2020

Liquidity

Cash and cash investments

$

854

$

1,326

Revolver availability

1,000

1,000

Total Liquidity

$

1,854

$

2,326

Historical information is available on our website.

As of September 30,

2021 2020

Liquidity

Cash and cash investments $ 854 $ 1,326

Revolver availability 1,000 1,000

Total Liquidity $ 1,854 $ 2,326

Historical information is available on our website.

MASCO CORPORATION

Segment Data - Unaudited

For the Three and Nine Months Ended September 30, 2021 and 2020

(dollars in millions)

Three Months Ended September 30,

Nine Months Ended September 30,

2021

2020

Change

2021

2020

Change

Plumbing Products

Net sales

$

1,329

$

1,141

16

%

$

3,907

$

2,964

32

%

Operating profit, as reported

$

248

$

271

$

773

$

583

Operating margin, as reported

18.7

%

23.8

%

19.8

%

19.7

%

Rationalization charges

-

-

2

5

Accelerated depreciation related to rationalization activity

-

-

-

1

Operating profit, as adjusted

248

271

775

589

Operating margin, as adjusted

18.7

%

23.8

%

19.8

%

19.9

%

Depreciation and amortization

26

21

76

61

EBITDA, as adjusted

$

274

$

292

$

851

$

650

Decorative Architectural Products

Net sales

$

875

$

842

4

%

$

2,446

$

2,364

3

%

Operating profit, as reported

$

166

$

179

$

496

$

475

Operating margin, as reported

19.0

%

21.3

%

20.3

%

20.1

%

Rationalization charges

-

1

-

3

Operating profit, as adjusted

166

180

496

478

Operating margin, as adjusted

19.0

%

21.4

%

20.3

%

20.2

%

Depreciation and amortization

8

10

27

31

EBITDA, as adjusted

$

174

$

190

$

523

$

509

Total

Net sales

$

2,204

$

1,983

11

%

$

6,353

$

5,328

19

%

Operating profit, as reported - segment

$

414

$

450

$

1,269

$

1,058

General corporate expense, net

(29)

(26)

(82)

(70)

Operating profit, as reported

385

424

1,187

988

Operating margin, as reported

17.5

%

21.4

%

18.7

%

18.5

%

Rationalization charges - segment

-

1

2

8

Accelerated depreciation related to rationalization activity - segment

-

-

-

1

Operating profit, as adjusted

385

425

1,189

997

Operating margin, as adjusted

17.5

%

21.4

%

18.7

%

18.7

%

Depreciation and amortization - segment

34

31

103

92

Depreciation and amortization - non-operating

2

2

11

6

EBITDA, as adjusted

$

421

$

458

$

1,303

$

1,095

Historical information is available on our website.

MASCO CORPORATION

Segment Data - Unaudited

For the Three and Nine Months Ended September 30, 2021 and 2020

(dollars in millions)

Three Months Ended Nine Months Ended September 30, September 30,

2021 2020 Change 2021 2020 Change

Plumbing Products

Net sales $ 1,329 $ 1,141 16 % $ 3,907 $ 2,964 32 %



Operatingprofit, as $ 248 $ 271 $ 773 $ 583 reported

Operatingmargin, as 18.7 % 23.8 % 19.8 % 19.7 % reported



Rationalization - - 2 5 charges

Accelerateddepreciationrelated to - - - 1 rationalizationactivity

Operatingprofit, as 248 271 775 589 adjusted

Operatingmargin, as 18.7 % 23.8 % 19.8 % 19.9 % adjusted



Depreciationand 26 21 76 61 amortization

EBITDA, as $ 274 $ 292 $ 851 $ 650 adjusted



DecorativeArchitectural Products

Net sales $ 875 $ 842 4 % $ 2,446 $ 2,364 3 %



Operatingprofit, as $ 166 $ 179 $ 496 $ 475 reported

Operatingmargin, as 19.0 % 21.3 % 20.3 % 20.1 % reported



Rationalization - 1 - 3 charges

Operatingprofit, as 166 180 496 478 adjusted

Operatingmargin, as 19.0 % 21.4 % 20.3 % 20.2 % adjusted



Depreciationand 8 10 27 31 amortization

EBITDA, as $ 174 $ 190 $ 523 $ 509 adjusted



Total

Net sales $ 2,204 $ 1,983 11 % $ 6,353 $ 5,328 19 %



Operatingprofit, as $ 414 $ 450 $ 1,269 $ 1,058 reported -segment

Generalcorporate (29) (26) (82) (70) expense, net

Operatingprofit, as 385 424 1,187 988 reported

Operatingmargin, as 17.5 % 21.4 % 18.7 % 18.5 % reported



Rationalizationcharges - - 1 2 8 segment

Accelerateddepreciationrelated to - - - 1 rationalizationactivity -segment

Operatingprofit, as 385 425 1,189 997 adjusted

Operatingmargin, as 17.5 % 21.4 % 18.7 % 18.7 % adjusted



Depreciationand 34 31 103 92 amortization -segment

Depreciationand 2 2 11 6 amortization -non-operating

EBITDA, as $ 421 $ 458 $ 1,303 $ 1,095 adjusted

Historical information is available on our website.

MASCO CORPORATION

North American and International Data - Unaudited

For the Three and Nine Months Ended September 30, 2021 and 2020

(dollars in millions)

Three Months Ended September 30,

Nine Months Ended September 30,

2021

2020

Change

2021

2020

Change

North American

Net sales

$

1,753

$

1,599

10

%

$

4,999

$

4,337

15

%

Operating profit, as reported

$

332

$

368

$

1,010

$

899

Operating margin, as reported

18.9

%

23.0

%

20.2

%

20.7

%

Rationalization charges

-

1

2

8

Accelerated depreciation related to rationalization activity

-

-

-

1

Operating profit, as adjusted

332

369

1,012

908

Operating margin, as adjusted

18.9

%

23.1

%

20.2

%

20.9

%

Depreciation and amortization

22

21

66

60

EBITDA, as adjusted

$

354

$

390

$

1,078

$

968

International

Net sales

$

451

$

384

17

%

$

1,354

$

991

37

%

Operating profit, as reported

$

82

$

82

$

259

$

159

Operating margin, as reported

18.2

%

21.4

%

19.1

%

16.0

%

Depreciation and amortization

12

10

37

32

EBITDA

$

94

$

92

$

296

$

191

Total

Net sales

$

2,204

$

1,983

11

%

$

6,353

$

5,328

19

%

Operating profit, as reported - segment

$

414

$

450

$

1,269

$

1,058

General corporate expense, net

(29)

(26)

(82)

(70)

Operating profit, as reported

385

424

1,187

988

Operating margin, as reported

17.5

%

21.4

%

18.7

%

18.5

%

Rationalization charges - segment

-

1

2

8

Accelerated depreciation related to rationalization activity

-

-

-

1

Operating profit, as adjusted

385

425

1,189

997

Operating margin, as adjusted

17.5

%

21.4

%

18.7

%

18.7

%

Depreciation and amortization - segment

34

31

103

92

Depreciation and amortization - non-operating

2

2

11

6

EBITDA, as adjusted

$

421

$

458

$

1,303

$

1,095

Historical information is available on our website.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211027005222/en/

CONTACT: Investor Contact David Chaika Vice President, Treasurer and Investor Relations 313.792.5500 david_chaika@mascohq.com