UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported) February 9, 2016
Masco Corporation
(Exact name of Registrant as Specified in Charter)
Delaware (State or Other Jurisdiction of Incorporation) |
|
1-5794 (Commission File Number) |
|
38-1794485 (IRS Employer Identification No.) |
21001 Van Born Road, Taylor, Michigan (Address of Principal Executive Offices) |
|
48180 (Zip Code) |
(313) 274-7400
Registrants telephone number, including area code
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
Attached and incorporated herein by reference as Exhibit 99 is a copy of a press release dated February 9, 2016 reporting Masco Corporations financial results for the fourth quarter and full-year of 2015 and certain other information and supplemental information prepared for use in connection with the financial results for the fourth quarter and full-year of 2015. On February 9, 2016, Masco Corporation will hold an investor conference call and web cast to discuss financial results for the fourth quarter and full-year of 2015.
This information, including the Exhibits attached hereto, shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
99 Press Release of Masco Corporation dated February 9, 2016 reporting Masco Corporations financial results for the fourth quarter and full-year of 2015 and certain other information and supplemental information prepared for use in connection with the financial results for the fourth quarter and full-year of 2015.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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MASCO CORPORATION |
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By: |
/s/ John G. Sznewajs |
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Name: |
John G. Sznewajs |
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Title: |
Vice President, Treasurer and |
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Chief Financial Officer |
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February 9, 2016
2
EXHIBIT INDEX
99 Press Release of Masco Corporation dated February 9, 2016 reporting Masco Corporations financial results for the fourth quarter and full-year of 2015 and certain other information and supplemental information prepared for use in connection with the financial results for the fourth quarter and full-year of 2015.
3
Exhibit 99
MASCO DELIVERS STRONG FOURTH QUARTER AND FULL-YEAR RESULTS BY EXECUTING ON STRATEGIC INITIATIVES
2015 Fourth Quarter Key Highlights
· Sales for the fourth quarter increased 3 percent to $1.7 billion; sales increased 6 percent excluding the impact of foreign currency translation
· Adjusted operating profit grew 31 percent to $219 million
· Adjusted operating profit margin for the quarter increased to 12.8 percent, a 280 basis point expansion
· Adjusted EPS for the quarter grew 61 percent to $.29 per common share
TAYLOR, Mich. (February 9, 2016) Masco Corporation (NYSE: MAS), one of the worlds leading manufacturers of branded home improvement and building products, reported net sales and adjusted operating profit growth in the fourth quarter of 2015. Adjusted operating profit margin rose to 12.8 percent, representing a 280 basis point increase over the prior year.
2015 Fourth Quarter Commentary
· Compared to fourth quarter 2014, net sales from continuing operations increased 3 percent to $1.7 billion. In local currency, North American sales increased 6 percent and international sales increased 4 percent
· Compared to fourth quarter 2014, results for key financial measures, as adjusted for certain items (see Exhibit A) and with a normalized tax rate of 36 percent, were as follows:
· Gross margins improved to 31.3 percent compared to 29.1 percent
· Operating margins improved to 12.8 percent compared to 10.0 percent
· Income from continuing operations was $.29 per common share compared to $.18 per common share
· Income from continuing operations, as reported, was $.22 per common share
· Liquidity at the end of the fourth quarter was approximately $1.7 billion
· 1.8 million shares were repurchased in the fourth quarter
2015 Fourth Quarter Operating Segment Highlights
· Plumbing Products net sales increased 5 percent (10 percent excluding the impact of foreign currency translation) driven by growth across the segment
· Decorative Architectural Products net sales decreased 4 percent, primarily due to challenging year-over-year comparisons driven by the timing of inventory replenishments in 2014
· Cabinets and Related Products net sales increased 5 percent, fueled by continued growth in the retail and dealer channels
· Other Specialty Products net sales increased 8 percent, led by the strong performance of our North American windows business
Our fourth quarter results illustrate our ability to deliver consistent and profitable growth, said Masco President and CEO, Keith Allman. Exceptional improvement in our U.S. cabinet business drove increased revenue and profit. Our industry-leading plumbing businesses continued their excellent performance trend and delivered another quarter of outstanding results. In our Decorative Architectural Products segment, the ongoing momentum of Behr Pro® and Liberty Hardware was masked by challenging year-over-year comparisons, while our windows businesses benefitted from increased demand in the U.S. and U.K.
1
2015 Full Year Key Highlights
· Sales for the full year increased 2 percent to $7.1 billion; sales increased 6 percent excluding the impact of foreign currency translation
· Adjusted operating profit grew 19 percent to $927 million
· Adjusted operating profit margin for the full year increased to 13 percent, a 190 basis point expansion
· Adjusted EPS for the year grew 35 percent to $1.19 per common share
2015 Full Year Commentary
· Compared to full-year 2014, net sales increased 2 percent to $7.1 billion. In local currency, North American sales increased 6 percent and international sales increased 5 percent
· Compared to full-year 2014, results for key financial measures, as adjusted for certain items (see Exhibit A) and with a normalized tax rate of 36 percent, were as follows:
· Gross profit margins were 31.6 percent compared to 29.9 percent
· Operating profit margins were 13.0 percent compared to 11.1 percent
· Income from continuing operations was $1.19 per common share compared to $0.88 per common share
· Income from continuing operations, as reported, was $1.03 per common share compared to $2.28 per common share in 2014
· Free cash flow was nearly $500 million
2015 was a transformative year for Masco, said Keith Allman. On June 30, 2015, we successfully completed the spinoff of our services businesses, transforming Masco into a branded home improvement and building products company. Our clear strategy and focused execution enabled us to reach a number of milestones. We achieved record sales at Delta, Hansgrohe and Watkins and returned our U.S. cabinet business to profitability by improving adjusted operating profit over $80 million. We also strengthened our balance sheet by generating nearly half a billion dollars in free cash flow and we ended the year with $1.7 billion of liquidity. Furthermore, we demonstrated our continued commitment to return capital to shareholders by increasing our dividend and repurchasing over 17 million shares.
2016 Outlook
We look forward to capitalizing on the momentum weve built this past year, continued Mr. Allman. We remain confident in our ability to successfully execute against our long term growth strategies by leveraging our industry leading positions, robust innovation pipeline and our Masco Operating System. We expect that these growth strategies, coupled with our disciplined capital allocation approach, will continue to create shareholder value in 2016.
About Masco
Headquartered in Taylor, Mich., 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® paint; Delta® and Hansgrohe® faucets, bath and shower fixtures; KraftMaid® and Merillat® cabinets; Milgard® windows and doors; and Hot Spring® 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 2015 fourth quarter supplemental material, including a presentation in PDF format, is available on the Companys website at www.masco.com.
2
Conference Call Details
A conference call regarding items contained in this release is scheduled for Tuesday, February 9, 2016 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 (855) 226-2726 (855-22MASCO) and from outside the U.S. at (706) 679-3614. Please use the conference identification number 19596574. The conference call will be webcast simultaneously and in its entirety through the Companys website. Shareholders, media representatives and others interested in Masco may participate in the webcast by registering through the Investor Relations section on the Companys website.
A replay of the call will be available on Mascos 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 19596574. The telephone replay will be available approximately two hours after the end of the call and continue through March 9, 2016.
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 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 home improvement activity and new home construction, our ability to maintain our strong brands and to develop and introduce new and improved products, our ability to maintain our competitive position in our industries, our reliance on key customers, our ability to achieve the anticipated benefits of our strategic initiatives, our ability to sustain the performance of our cabinetry businesses, the cost and availability of raw materials, our dependence on third party suppliers, and risks associated with international operations and global strategies. 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. The forward-looking statements in this press release speak only as of the date of this press release. 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.
Investor Contact
Irene Tasi
Director Investor Relations
313.792.5500
irene_tasi@mascohq.com
# # #
3
MASCO CORPORATION
Condensed Consolidated Statements of Operations - Unaudited
For the Three Months and Twelve Months Ended December 31, 2015 and 2014
(in millions, except per common share data)
|
|
Three Months Ended |
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Twelve Months Ended |
|
|
|
December 31, |
|
December 31, |
|
|
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2015 |
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2014 |
|
2015 |
|
2014 |
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
1,715 |
|
$ |
1,666 |
|
$ |
7,142 |
|
$ |
7,006 |
|
Cost of sales |
|
1,183 |
|
1,185 |
|
4,889 |
|
4,946 |
|
Gross profit |
|
532 |
|
481 |
|
2,253 |
|
2,060 |
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
320 |
|
323 |
|
1,339 |
|
1,347 |
|
Income from litigation settlements |
|
|
|
(9 |
) |
|
|
(9 |
) |
Impairment charge for other intangible assets |
|
|
|
1 |
|
|
|
1 |
|
Operating profit |
|
212 |
|
166 |
|
914 |
|
721 |
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|
|
|
|
|
|
|
|
|
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Other income (expense), net: |
|
|
|
|
|
|
|
|
|
Interest expense |
|
(54 |
) |
(56 |
) |
(225 |
) |
(225 |
) |
Other, net |
|
2 |
|
1 |
|
|
|
11 |
|
Income from continuing operations before income taxes |
|
160 |
|
111 |
|
689 |
|
507 |
|
|
|
|
|
|
|
|
|
|
|
Income tax (expense) benefit |
|
(74 |
) |
(16 |
) |
(293 |
) |
361 |
|
Income from continuing operations |
|
86 |
|
95 |
|
396 |
|
868 |
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from discontinued operations, net |
|
(1 |
) |
14 |
|
(2 |
) |
35 |
|
Net income |
|
85 |
|
109 |
|
394 |
|
903 |
|
|
|
|
|
|
|
|
|
|
|
Less: Net income attributable to noncontrolling interest |
|
10 |
|
9 |
|
39 |
|
47 |
|
Net income attributable to Masco Corporation |
|
$ |
75 |
|
$ |
100 |
|
$ |
355 |
|
$ |
856 |
|
|
|
|
|
|
|
|
|
|
|
Income per common share attributable to Masco Corporation (diluted): |
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
$ |
0.22 |
|
$ |
0.24 |
|
$ |
1.03 |
|
$ |
2.28 |
|
(Loss) income from discontinued operations, net |
|
|
|
0.04 |
|
(0.01 |
) |
0.10 |
|
Net income |
|
$ |
0.22 |
|
$ |
0.28 |
|
$ |
1.02 |
|
$ |
2.38 |
|
|
|
|
|
|
|
|
|
|
|
Average diluted common shares outstanding |
|
335 |
|
351 |
|
341 |
|
352 |
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to Masco Corporation: |
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
$ |
76 |
|
$ |
86 |
|
$ |
357 |
|
$ |
821 |
|
(Loss) income from discontinued operations, net |
|
(1 |
) |
14 |
|
(2 |
) |
35 |
|
Net income attributable to Masco Corporation |
|
$ |
75 |
|
$ |
100 |
|
$ |
355 |
|
$ |
856 |
|
Historical information is available on our website.
4
MASCO CORPORATION
Exhibit A: Reconciliations - Unaudited
For the Three Months and Twelve Months Ended December 31, 2015 and 2014
(in millions, except per common share data)
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
|
December 31, |
|
December 31, |
|
|
|
2015 |
|
2014 |
|
2015 |
|
2014 |
|
|
|
|
|
|
|
|
|
|
|
Gross Profit, Selling, General and Administrative Expenses, and Operating Profit Reconciliations |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
1,715 |
|
$ |
1,666 |
|
$ |
7,142 |
|
$ |
7,006 |
|
|
|
|
|
|
|
|
|
|
|
Gross profit, as reported |
|
$ |
532 |
|
$ |
481 |
|
$ |
2,253 |
|
$ |
2,060 |
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges |
|
6 |
|
3 |
|
8 |
|
35 |
|
(Gain) on sale of property and equipment |
|
(2 |
) |
|
|
(5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit, as adjusted |
|
$ |
536 |
|
$ |
484 |
|
$ |
2,256 |
|
$ |
2,095 |
|
|
|
|
|
|
|
|
|
|
|
Gross margin, as reported |
|
31.0 |
% |
28.9 |
% |
31.5 |
% |
29.4 |
% |
Gross margin, as adjusted |
|
31.3 |
% |
29.1 |
% |
31.6 |
% |
29.9 |
% |
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses, as reported |
|
$ |
320 |
|
$ |
323 |
|
$ |
1,339 |
|
$ |
1,347 |
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges |
|
3 |
|
7 |
|
10 |
|
29 |
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses, as adjusted |
|
$ |
317 |
|
$ |
316 |
|
$ |
1,329 |
|
$ |
1,318 |
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses as percent of net sales, as reported |
|
18.7 |
% |
19.4 |
% |
18.7 |
% |
19.2 |
% |
Selling, general and administrative expenses as percent of net sales, as adjusted |
|
18.5 |
% |
19.0 |
% |
18.6 |
% |
18.8 |
% |
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported |
|
$ |
212 |
|
$ |
166 |
|
$ |
914 |
|
$ |
721 |
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges |
|
9 |
|
10 |
|
18 |
|
64 |
|
(Gain) on sale of property and equipment |
|
(2 |
) |
|
|
(5 |
) |
|
|
(Income) from litigation settlements |
|
|
|
(9 |
) |
|
|
(9 |
) |
|
|
|
|
|
|
|
|
|
|
Operating profit, as adjusted |
|
$ |
219 |
|
$ |
167 |
|
$ |
927 |
|
$ |
776 |
|
|
|
|
|
|
|
|
|
|
|
Operating margin, as reported |
|
12.4 |
% |
10.0 |
% |
12.8 |
% |
10.3 |
% |
Operating margin, as adjusted |
|
12.8 |
% |
10.0 |
% |
13.0 |
% |
11.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Common Share Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before income taxes, as reported |
|
$ |
160 |
|
$ |
111 |
|
$ |
689 |
|
$ |
507 |
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges |
|
9 |
|
10 |
|
18 |
|
64 |
|
(Income) from litigation settlements |
|
|
|
(9 |
) |
|
|
(9 |
) |
(Gain) from financial investments, net |
|
(1 |
) |
|
|
(6 |
) |
(4 |
) |
(Earnings) losses from equity investments, net |
|
|
|
|
|
(2 |
) |
2 |
|
(Gain) on sale of property and equipment |
|
(2 |
) |
|
|
(5 |
) |
|
|
Income from continuing operations before income taxes, as adjusted |
|
166 |
|
112 |
|
694 |
|
560 |
|
|
|
|
|
|
|
|
|
|
|
Tax at 36% rate |
|
(60 |
) |
(40 |
) |
(250 |
) |
(202 |
) |
|
|
|
|
|
|
|
|
|
|
Less: Net income attributable to noncontrolling interest |
|
10 |
|
9 |
|
39 |
|
47 |
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations, as adjusted |
|
$ |
96 |
|
$ |
63 |
|
$ |
405 |
|
$ |
311 |
|
|
|
|
|
|
|
|
|
|
|
Income per common share, as adjusted |
|
$ |
0.29 |
|
$ |
0.18 |
|
$ |
1.19 |
|
$ |
0.88 |
|
|
|
|
|
|
|
|
|
|
|
Average diluted common shares outstanding |
|
335 |
|
351 |
|
341 |
|
352 |
|
Historical information is available on our website.
5
MASCO CORPORATION
Condensed Consolidated Balance Sheets and
Other Financial Data - Unaudited
(dollars in millions)
|
|
December 31, |
|
December 31, |
|
|
|
2015 |
|
2014 |
|
Balance Sheet |
|
|
|
|
|
Assets |
|
|
|
|
|
Current Assets: |
|
|
|
|
|
Cash and cash investments |
|
$ |
1,468 |
|
$ |
1,379 |
|
Short-term bank deposits |
|
248 |
|
306 |
|
Receivables |
|
853 |
|
820 |
|
Inventories |
|
687 |
|
712 |
|
Prepaid expenses and other |
|
72 |
|
68 |
|
Assets held for sale |
|
|
|
335 |
|
Total Current Assets |
|
3,328 |
|
3,620 |
|
|
|
|
|
|
|
Property and equipment, net |
|
1,027 |
|
1,046 |
|
Goodwill |
|
839 |
|
840 |
|
Other intangible assets, net |
|
160 |
|
142 |
|
Other assets |
|
326 |
|
419 |
|
Assets held for sale |
|
|
|
1,141 |
|
Total Assets |
|
$ |
5,680 |
|
$ |
7,208 |
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
Accounts payable |
|
$ |
749 |
|
$ |
721 |
|
Notes payable |
|
1,005 |
|
505 |
|
Accrued liabilities |
|
752 |
|
685 |
|
Liabilities held for sale |
|
|
|
300 |
|
Total Current Liabilities |
|
2,506 |
|
2,211 |
|
|
|
|
|
|
|
Long-term debt |
|
2,418 |
|
2,919 |
|
Other liabilities |
|
698 |
|
781 |
|
Liabilities held for sale |
|
|
|
169 |
|
Total Liabilities |
|
5,622 |
|
6,080 |
|
Equity |
|
58 |
|
1,128 |
|
Total Liabilities and Equity |
|
$ |
5,680 |
|
$ |
7,208 |
|
|
|
As of |
|
|
|
December 31, |
|
December 31, |
|
Other Financial Data |
|
2015 |
|
2014 |
|
Working Capital Days |
|
|
|
|
|
Receivable days |
|
46 |
|
47 |
|
Inventory days |
|
52 |
|
53 |
|
Payable days |
|
69 |
|
67 |
|
Working capital |
|
$ |
791 |
|
$ |
811 |
|
Working capital as a % of sales (LTM) |
|
11.1 |
% |
11.6 |
% |
|
|
|
|
|
|
|
|
Historical information is available on our website.
6
MASCO CORPORATION |
|
Condensed Consolidated Statements of Cash Flows* |
|
and Other Data - Unaudited |
(dollars in millions) |
|
|
Twelve Months Ended |
|
|
|
December 31, |
|
|
|
2015 |
|
2014 |
|
Cash Flows From (For) Operating Activities: |
|
|
|
|
|
Cash provided by operating activities |
|
$ |
704 |
|
$ |
695 |
|
Working capital changes |
|
(5 |
) |
(93 |
) |
Net cash from operating activities |
|
699 |
|
602 |
|
|
|
|
|
|
|
Cash Flows From (For) Financing Activities: |
|
|
|
|
|
Retirement of notes |
|
(500 |
) |
|
|
Purchase of Company common stock |
|
(456 |
) |
(158 |
) |
Cash dividends paid |
|
(126 |
) |
(117 |
) |
Dividend paid to noncontrolling interest |
|
(36 |
) |
(34 |
) |
Cash distributed to TopBuild Corp. |
|
(63 |
) |
|
|
Issuance of TopBuild Corp. debt |
|
200 |
|
|
|
Issuance of notes, net of issuance costs |
|
497 |
|
|
|
Issuance of Company common stock |
|
2 |
|
1 |
|
Excess tax benefit from stock-based compensation |
|
75 |
|
13 |
|
Credit Agreement and other financing costs |
|
(3 |
) |
|
|
Decrease in debt, net |
|
|
|
(2 |
) |
Net cash for financing activities |
|
(410 |
) |
(297 |
) |
|
|
|
|
|
|
Cash Flows From (For) Investing Activities: |
|
|
|
|
|
Capital expenditures |
|
(158 |
) |
(128 |
) |
Other, net |
|
(31 |
) |
28 |
|
Net cash for investing activities |
|
(189 |
) |
(100 |
) |
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash investments |
|
(15 |
) |
(45 |
) |
|
|
|
|
|
|
Cash and Cash Investments: |
|
|
|
|
|
Increase for the year |
|
85 |
|
160 |
|
At January 1 |
|
1,383 |
|
1,223 |
|
At December 31 |
|
$ |
1,468 |
|
$ |
1,383 |
|
|
|
As of December 31, |
|
Liquidity* |
|
2015 |
|
2014 |
|
Cash and cash investments |
|
$ |
1,468 |
|
$ |
1,383 |
|
Short-term bank deposits |
|
248 |
|
306 |
|
Total Liquidity |
|
$ |
1,716 |
|
$ |
1,689 |
|
* Prior period amounts not restated for spin-off of TopBuild Corp.
Historical information is available on our website.
7
MASCO CORPORATION
Segment Data - Unaudited
For the Three Months and Twelve Months Ended December 31, 2015 and 2014
(dollars in millions)
|
|
Three Months Ended |
|
|
|
Twelve Months Ended |
|
|
|
|
|
December 31, |
|
|
|
December 31, |
|
|
|
|
|
2015 |
|
2014 |
|
Change |
|
2015 |
|
2014 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cabinets and Related Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
254 |
|
$ |
243 |
|
5 |
% |
$ |
1,025 |
|
$ |
999 |
|
3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit (loss), as reported |
|
$ |
19 |
|
$ |
(7 |
) |
|
|
$ |
51 |
|
$ |
(62 |
) |
|
|
Operating margin, as reported |
|
7.5 |
% |
-2.9 |
% |
|
|
5.0 |
% |
-6.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges |
|
2 |
|
|
|
|
|
5 |
|
30 |
|
|
|
Accelerated depreciation related to plant closures |
|
|
|
|
|
|
|
|
|
1 |
|
|
|
(Gain) on sale of property and equipment |
|
(2 |
) |
|
|
|
|
(5 |
) |
|
|
|
|
Operating profit (loss), as adjusted |
|
19 |
|
(7 |
) |
|
|
51 |
|
(31 |
) |
|
|
Operating margin, as adjusted |
|
7.5 |
% |
-2.9 |
% |
|
|
5.0 |
% |
-3.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
6 |
|
7 |
|
|
|
24 |
|
32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted |
|
$ |
25 |
|
$ |
|
|
|
|
$ |
75 |
|
$ |
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plumbing Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
846 |
|
$ |
804 |
|
5 |
% |
$ |
3,341 |
|
$ |
3,308 |
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported |
|
$ |
126 |
|
$ |
113 |
|
|
|
$ |
512 |
|
$ |
512 |
|
|
|
Operating margin, as reported |
|
14.9 |
% |
14.1 |
% |
|
|
15.3 |
% |
15.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges |
|
7 |
|
3 |
|
|
|
9 |
|
5 |
|
|
|
Operating profit, as adjusted |
|
133 |
|
116 |
|
|
|
521 |
|
517 |
|
|
|
Operating margin, as adjusted |
|
15.7 |
% |
14.4 |
% |
|
|
15.6 |
% |
15.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
14 |
|
17 |
|
|
|
56 |
|
63 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted |
|
$ |
147 |
|
$ |
133 |
|
|
|
$ |
577 |
|
$ |
580 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decorative Architectural Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
420 |
|
$ |
438 |
|
-4 |
% |
$ |
2,020 |
|
$ |
1,998 |
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported |
|
$ |
85 |
|
$ |
80 |
|
|
|
$ |
403 |
|
$ |
360 |
|
|
|
Operating margin, as reported |
|
20.2 |
% |
18.3 |
% |
|
|
20.0 |
% |
18.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
4 |
|
4 |
|
|
|
16 |
|
16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
$ |
89 |
|
$ |
84 |
|
|
|
$ |
419 |
|
$ |
376 |
|
|
|
Historical information is available on our website.
8
MASCO CORPORATION
Segment Data - Unaudited
For the Three Months and Twelve Months Ended December 31, 2015 and 2014
(dollars in millions)
|
|
Three Months Ended |
|
|
|
Twelve Months Ended |
|
|
|
|
|
December 31, |
|
|
|
December 31, |
|
|
|
|
|
2015 |
|
2014 |
|
Change |
|
2015 |
|
2014 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Specialty Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
195 |
|
$ |
181 |
|
8 |
% |
$ |
756 |
|
$ |
701 |
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported |
|
$ |
7 |
|
$ |
8 |
|
|
|
$ |
57 |
|
$ |
47 |
|
|
|
Operating margin, as reported |
|
3.6 |
% |
4.4 |
% |
|
|
7.5 |
% |
6.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges |
|
|
|
|
|
|
|
|
|
1 |
|
|
|
Operating profit, as adjusted |
|
7 |
|
8 |
|
|
|
57 |
|
48 |
|
|
|
Operating margin, as adjusted |
|
3.6 |
% |
4.4 |
% |
|
|
7.5 |
% |
6.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
5 |
|
4 |
|
|
|
18 |
|
18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted |
|
$ |
12 |
|
$ |
12 |
|
|
|
$ |
75 |
|
$ |
66 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
1,715 |
|
$ |
1,666 |
|
3 |
% |
$ |
7,142 |
|
$ |
7,006 |
|
2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported - segment |
|
$ |
237 |
|
$ |
194 |
|
|
|
$ |
1,023 |
|
$ |
857 |
|
|
|
General corporate expense, net (GCE) |
|
(25 |
) |
(37 |
) |
|
|
(109 |
) |
(145 |
) |
|
|
Income from litigation settlements |
|
|
|
9 |
|
|
|
|
|
9 |
|
|
|
Operating profit, as reported |
|
212 |
|
166 |
|
|
|
914 |
|
721 |
|
|
|
Operating margin, as reported |
|
12.4 |
% |
10.0 |
% |
|
|
12.8 |
% |
10.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges - segment |
|
9 |
|
3 |
|
|
|
14 |
|
36 |
|
|
|
Accelerated depreciation - segment |
|
|
|
|
|
|
|
|
|
1 |
|
|
|
Rationalization charges - GCE |
|
|
|
7 |
|
|
|
4 |
|
27 |
|
|
|
(Income) from litigation settlements |
|
|
|
(9 |
) |
|
|
|
|
(9 |
) |
|
|
(Gain) on sale of property and equipment |
|
(2 |
) |
|
|
|
|
(5 |
) |
|
|
|
|
Operating profit, as adjusted |
|
219 |
|
167 |
|
|
|
927 |
|
776 |
|
|
|
Operating margin, as adjusted |
|
12.8 |
% |
10.0 |
% |
|
|
13.0 |
% |
11.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization - segment |
|
29 |
|
32 |
|
|
|
114 |
|
129 |
|
|
|
Depreciation and amortization - non-operating |
|
4 |
|
3 |
|
|
|
13 |
|
11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted |
|
$ |
252 |
|
$ |
202 |
|
|
|
$ |
1,054 |
|
$ |
916 |
|
|
|
Historical information is available on our website.
9
MASCO CORPORATION
North American and International Data - Unaudited
For the Three Months and Twelve Months Ended December 31, 2015 and 2014
(dollars in millions)
|
|
Three Months Ended |
|
|
|
Twelve Months Ended |
|
|
|
|
|
December 31, |
|
|
|
December 31, |
|
|
|
|
|
2015 |
|
2014 |
|
Change |
|
2015 |
|
2014 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North American |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
1,347 |
|
$ |
1,277 |
|
5 |
% |
$ |
5,645 |
|
$ |
5,377 |
|
5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported |
|
$ |
196 |
|
$ |
149 |
|
|
|
$ |
841 |
|
$ |
643 |
|
|
|
Operating margin, as reported |
|
14.6 |
% |
11.7 |
% |
|
|
14.9 |
% |
12.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges |
|
6 |
|
3 |
|
|
|
10 |
|
35 |
|
|
|
Accelerated depreciation related to plant closures |
|
|
|
|
|
|
|
|
|
1 |
|
|
|
(Gain) on sale of property and equipment |
|
(2 |
) |
|
|
|
|
(5 |
) |
|
|
|
|
Operating profit, as adjusted |
|
200 |
|
152 |
|
|
|
846 |
|
679 |
|
|
|
Operating margin, as adjusted |
|
14.8 |
% |
11.9 |
% |
|
|
15.0 |
% |
12.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
20 |
|
23 |
|
|
|
78 |
|
90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted |
|
$ |
220 |
|
$ |
175 |
|
|
|
$ |
924 |
|
$ |
769 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
368 |
|
$ |
389 |
|
-5 |
% |
$ |
1,497 |
|
$ |
1,629 |
|
-8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported |
|
$ |
41 |
|
$ |
45 |
|
|
|
$ |
182 |
|
$ |
214 |
|
|
|
Operating margin, as reported |
|
11.1 |
% |
11.6 |
% |
|
|
12.2 |
% |
13.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges |
|
3 |
|
|
|
|
|
4 |
|
1 |
|
|
|
Operating profit, as adjusted |
|
44 |
|
45 |
|
|
|
186 |
|
215 |
|
|
|
Operating margin, as adjusted |
|
12.0 |
% |
11.6 |
% |
|
|
12.4 |
% |
13.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
9 |
|
9 |
|
|
|
36 |
|
39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted |
|
$ |
53 |
|
$ |
54 |
|
|
|
$ |
222 |
|
$ |
254 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
1,715 |
|
$ |
1,666 |
|
3 |
% |
$ |
7,142 |
|
$ |
7,006 |
|
2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported - segment |
|
$ |
237 |
|
$ |
194 |
|
|
|
$ |
1,023 |
|
$ |
857 |
|
|
|
General corporate expense, net (GCE) |
|
(25 |
) |
(37 |
) |
|
|
(109 |
) |
(145 |
) |
|
|
Income from litigation settlements |
|
|
|
9 |
|
|
|
|
|
9 |
|
|
|
Operating profit, as reported |
|
212 |
|
166 |
|
|
|
914 |
|
721 |
|
|
|
Operating margin, as reported |
|
12.4 |
% |
10.0 |
% |
|
|
12.8 |
% |
10.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges - segment |
|
9 |
|
3 |
|
|
|
14 |
|
36 |
|
|
|
Accelerated depreciation - segment |
|
|
|
|
|
|
|
|
|
1 |
|
|
|
Rationalization charges - GCE |
|
|
|
7 |
|
|
|
4 |
|
27 |
|
|
|
(Income) from litigation settlements, net |
|
|
|
(9 |
) |
|
|
|
|
(9 |
) |
|
|
(Gain) on sale of property and equipment |
|
(2 |
) |
|
|
|
|
(5 |
) |
|
|
|
|
Operating profit, as adjusted |
|
219 |
|
167 |
|
|
|
927 |
|
776 |
|
|
|
Operating margin, as adjusted |
|
12.8 |
% |
10.0 |
% |
|
|
13.0 |
% |
11.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization - segment |
|
29 |
|
32 |
|
|
|
114 |
|
129 |
|
|
|
Depreciation and amortization - non-operating |
|
4 |
|
3 |
|
|
|
13 |
|
11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted |
|
$ |
252 |
|
$ |
202 |
|
|
|
$ |
1,054 |
|
$ |
916 |
|
|
|
Historical information is available on our website.
10
Masco (NYSE:MAS)
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From Mar 2024 to Apr 2024
Masco (NYSE:MAS)
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From Apr 2023 to Apr 2024