- \n
- \nFourth quarter and full year net sales decreased 1% and 1% year-over-year to $667.7 million and $2.7 billion, respectively\n<\/li>\n
- \nFourth quarter and full year net income decreased 61% and 31% year-over-year to $14.0 million and $125.9 million, respectively\n<\/li>\n
- \nFourth quarter and full year net income margin decreased 320 basis points and 200 basis points year-over-year to 2.1% and 4.7%, respectively\n<\/li>\n
- \nFourth quarter and full year adjusted EBITDA margin1<\/sup> decreased 150 basis points and 60 basis points year-over-year to 11.2% and 13.5%, respectively\n<\/li>\n
- \nFourth quarter and full year diluted earnings per share was $0.11 and $0.96, compared to $0.28 and $1.40 in the prior year, respectively; fourth quarter and full year adjusted diluted earnings per share1<\/sup> was $0.21 and $1.37, compared to $0.35 and $1.58 in the prior year, respectively\n<\/li>\n
- \nOperating cash flow for the fifty-two weeks ended December 29, 2024 was $292.0 million with free cash flow1<\/sup> of $211.1 million\n<\/li>\n
- \nThe Supreme acquisition contributed 9% and 4% to net sales in the fourth quarter and full year, respectively\n<\/li>\n
- \nCompany introduces 2025 financial outlook\n<\/li>\n<\/ul>\n
BEACHWOOD, Ohio–(BUSINESS WIRE<\/a>)–
\nMasterBrand, Inc. (NYSE: MBC, the \u201cCompany,\u201d or \u201cMasterBrand\u201d), the largest residential cabinet manufacturer in North America, today announced fourth quarter and full year 2024 financial results.\n<\/p>\n\n\u201cEnd market choppiness increased throughout the holiday season resulting in unanticipated volume declines which delayed the realization of previously implemented price increases and limited our ability to sufficiently flex operations in the quarter,\u201d said Dave Banyard, President and Chief Executive Officer. \u201cDespite market headwinds, we continued to make great strides as an organization, with our Supreme acquisition integration proceeding as planned and further progress across all our strategic initiatives, specifically Tech Enabled. These efforts, coupled with our continuous improvement culture, should help position the Company for future growth when stronger demand returns.\u201d\n<\/p>\n
\n\u201cAs an organization, we are committed to delivering superior financial returns to our shareholders. We believe our business model, strategy and planned investments in the Company will allow us to outperform our end markets in 2025 and beyond,\u201d Banyard continued.\n<\/p>\n
Fourth Quarter 2024
\n
<\/span><\/b>Net sales were $667.7 million, a decrease of 1% compared to the fourth quarter of 2023, driven by volume declines of 6% and lower net average selling price (ASP) of 4%. These declines were largely offset by 9% growth from our Supreme acquisition. Gross profit was $203.3 million, compared to $223.1 million in the prior year. Gross profit margin decreased 250 basis points to 30.4% on lower net ASP and volumes, $4.2 million of discrete items in the prior year quarter that did not repeat, and increased depreciation. This was partially offset by the addition of Supreme, favorable variable compensation, and additional cost savings from our ongoing strategic initiatives and continuous improvement programs.\n<\/p>\n\nNet income was $14.0 million, compared to $36.1 million in the fourth quarter of 2023, primarily due to lower gross profit margin as discussed above, discrete acquisition-related costs, higher interest expense, and increased depreciation, partially offset by reduced variable compensation, a gain on asset sale, positive net income contribution from Supreme and lower income taxes. Net income margin was 2.1% compared to 5.3% in the prior year.\n<\/p>\n
\nAdjusted EBITDA1<\/sup> was $74.6 million, compared to $85.8 million in the fourth quarter of 2023. Adjusted EBITDA margin1<\/sup> decreased 150 basis points to 11.2%, driven by a decrease in gross profit margin.\n<\/p>\n
\nDiluted earnings per share was $0.11 compared to $0.28 in the fourth quarter of 2023. Adjusted diluted earnings per share1<\/sup> was $0.21 compared to $0.35 in the fourth quarter of 2023.\n<\/p>\n
Full Year 2024
\n
<\/span><\/b>Net sales were $2.7 billion, a decrease of 1% compared to 2023, driven by lower net ASP of 4% and volume declines of 1%. These declines were largely offset by 4% growth from our Supreme acquisition. Gross profit was $877.0 million, compared to $901.4 million in the prior year. Gross profit margin decreased 60 basis points to 32.5% on lower net ASP and volumes due to a softer end market environment. This was partially offset by lower variable compensation, savings from continuous improvement efforts and cost actions.\n<\/p>\n\nNet income was $125.9 million, compared to $182.0 million in 2023, primarily due to acquisition-related costs, lower gross profit, restructuring charges, higher interest expense, incremental investments in our strategic initiatives, and higher depreciation and amortization expense, more than offsetting lower variable compensation, net income contribution from Supreme and continuous improvement efforts. Net income margin was 4.7% compared to 6.7% in the prior year.\n<\/p>\n
\nAdjusted EBITDA1<\/sup> was $363.6 million, compared to $383.4 million in 2023. Adjusted EBITDA margin1<\/sup> decreased 60 basis points to 13.5%, compared to 14.1% in the prior year.\n<\/p>\n
\nDiluted earnings per share was $0.96 compared to $1.40 in 2023. Adjusted diluted earnings per share1<\/sup> was $1.37 compared to $1.58 in 2023.\n<\/p>\n
Balance Sheet, Cash Flow and Capital Allocation
\n
<\/span><\/b>As of December 29, 2024, the Company had $120.6 million in cash and $405.4 million of availability under its revolving credit facility. Total debt was $1,007.8 million and our ratio of total debt to net income from the most recent trailing twelve months was 8.0x as of December 29, 2024. For the same period, net debt1<\/sup> was $887.2 million and our ratio of net debt to adjusted EBITDA1<\/sup> was 2.4x.\n<\/p>\n\nOperating cash flow was $292.0 million for the fifty-two weeks ended December 29, 2024, compared to $405.6 million in the fifty-three weeks ended December 31, 2023. This decline was due to a benefit in the prior year from a strategic inventory build release, which more than offset the benefit from working capital improvements in fiscal 2024. Free cash flow1<\/sup> was $211.1 million for the fifty-two weeks ended December 29, 2024, compared to $348.3 million for the fifty-three weeks ended December 31, 2023.\n<\/p>\n
\nDuring the fifty-two weeks ended December 29, 2024, the Company repurchased approximately 371 thousand shares of common stock for approximately $6.5 million. No shares were repurchased in the quarter ended December 29, 2024.\n<\/p>\n
2025 Financial Outlook
\n
<\/span><\/b>For full year 2025, the Company expects the following:\n<\/p>\n- \n
- \nNet sales year-over-year increase of mid single-digit percentage<\/p>\n
- \n
- \nOrganic net sales flat\n<\/li>\n
- \nAcquisition-related net sales increase of mid single-digit percentage\n<\/li>\n<\/ul>\n<\/li>\n
- \nAdjusted EBITDA1,2<\/sup> in the range of $380 to $410 million, with related adjusted EBITDA margin1,2 <\/sup>of roughly 13.5% to 14.3%\n<\/li>\n
- \nAdjusted diluted earnings per share1,2<\/sup> in the range of $1.40 to $1.57\n<\/li>\n<\/ul>\n
\nThe Company expects organic net sales performance to outperform the underlying market demand of down low single-digits year-over-year, as new products and channel specific offerings, and previously implemented price actions gain traction.\n<\/p>\n
\nThis 2025 Financial Outlook only reflects the impact of those tariffs in effect as of the date of this release. It does not reflect any other potential tariff impacts on Company costs or end market demand. The Company believes the dynamic nature of the tariffs, specifically the uncertainty of implementation, potential timing and duration, limits the usefulness of estimating this information. Should other tariff impacts become more certain, the Company expects to update its outlook accordingly.\n<\/p>\n
\n\u201cOur full year 2025 guidance reflects our commitment to growth, with year-on-year net sales increases driven by our Supreme acquisition and share gains in our core business,\u201d said Andi Simon, Executive Vice President and Chief Financial Officer. \u201cGiven the continued softness in our end markets, we have thoroughly reviewed and prioritized our investment spending, with the goal of preserving both near-term financial performance and progress on our long-term financial targets. We believe this approach, coupled with targeted cost reductions and further continuous improvement savings, will allow us to resume adjusted EBITDA margin expansion for the full year 2025.\u201d\n<\/p>\n
- \nAdjusted diluted earnings per share1,2<\/sup> in the range of $1.40 to $1.57\n<\/li>\n<\/ul>\n
- \nFourth quarter and full year diluted earnings per share was $0.11 and $0.96, compared to $0.28 and $1.40 in the prior year, respectively; fourth quarter and full year adjusted diluted earnings per share1<\/sup> was $0.21 and $1.37, compared to $0.35 and $1.58 in the prior year, respectively\n<\/li>\n
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