Masonite International Corporation (DOOR) swung to a net profit for the quarter ended Jan. 01, 2017. The company has made a net profit of $15.43 million, or $ 0.50 a share in the quarter, against a net loss of $13.22 million, or $0.43 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $16.94 million, or $0.55 a share compared with $17.04 million or $0.54 a share, a year ago.
Revenue during the quarter went down marginally by 0.91 percent to $481.03 million from $485.42 million in the previous year period. Gross margin for the quarter expanded 49 basis points over the previous year period to 20.06 percent. Operating margin for the quarter period stood at positive 6.27 percent as compared to a negative 0.83 percent for the previous year period.
Operating income for the quarter was $30.18 million, compared with an operating loss of $4.04 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $60.65 million compared with $56.84 million in the prior year period. At the same time, adjusted EBITDA margin improved 90 basis points in the quarter to 12.61 percent from 11.71 percent in the last year period.
"2016 was a strong year for Masonite. With our sixth consecutive year of positive growth of average unit price, we delivered a 12.8% adjusted EBITDA margin which is close to what we achieved following the last housing peak despite U.S. housing starts still running at approximately sixty percent of that level," said Fred Lynch, president and chief executive officer.
For financial year 2017, Masonite International Corporation expects revenue to grow in the range of 7 percent to 9 percent. The company projects diluted earnings per share to be in the range of $4.10 to $4.60 on adjusted basis.
Working capital increases
Masonite International Corporation has recorded an increase in the working capital over the last year. It stood at $347.56 million as at Jan. 01, 2017, up 6.47 percent or $21.13 million from $326.43 million on Jan. 03, 2016. Current ratio was at 2.50 as on Jan. 01, 2017, up from 2.40 on Jan. 03, 2016.
Cash conversion cycle (CCC) has increased to 38 days for the quarter from 37 days for the last year period. Days sales outstanding were almost stable at 23 days for the quarter, when compared with the last year period.
Days inventory outstanding was almost stable at 27 days for the quarter, when compared with the last year period. At the same time, days payable outstanding was almost stable at 11 days for the quarter, when compared with the previous year period.
Debt remains almost stable
Total debt of Masonite International Corporation remained almost stable for the quarter at $470.74 million, when compared with the last year period. Long-term debt of MASONITE INTERNATIONAL remained almost stable for the quarter at $470.74 million, when compared with the last year period. Total debt was 31.90 percent of total assets as on Jan. 01, 2017, compared with 31.27 percent on Jan. 03, 2016. Debt to equity ratio was almost stable at 0.71 as on Jan. 01, 2017, when compared with the last year.
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