Masonite International Corporation (DOOR) has reported a 32.18 percent jump in profit for the quarter ended Apr. 02, 2017. The company has earned $23.56 million, or $0.77 a share in the quarter, compared with $17.83 million, or $0.57 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $23.56 million, or $0.77 a share compared with $17.83 million or $0.57 a share, a year ago.
Revenue during the quarter went down marginally by 0.43 percent to $487.18 million from $489.30 million in the previous year period. Gross margin for the quarter contracted 46 basis points over the previous year period to 19.61 percent. Total expenses were 93.76 percent of quarterly revenues, up from 93.19 percent for the same period last year. That has resulted in a contraction of 57 basis points in operating margin to 6.24 percent.
Operating income for the quarter was $30.42 million, compared with $33.33 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $52.86 million compared with $58.24 million in the prior year period. At the same time, adjusted EBITDA margin contracted 105 basis points in the quarter to 10.85 percent from 11.90 percent in the last year period.
"Sales volume was down slightly in the first quarter compared to a very strong comparative quarter in 2016. Disappointingly, our manufacturing performance in our North American Residential segment was poor in the quarter offsetting the impact of solid average unit price increases in all segments," said Fred Lynch, president and chief executive officer. "While 2017 began slowly compared to last year, both sales and operating performance improved sequentially each month in the quarter. We remain optimistic about the market conditions through the remainder of the year and are pleased with our progress on key strategic initiatives aimed at delivering our long term growth framework."
Working capital increases
Masonite International Corporation has recorded an increase in the working capital over the last year. It stood at $362.16 million as at Apr. 02, 2017, up 5.53 percent or $18.97 million from $343.18 million on Apr. 03, 2016. Current ratio was at 2.64 as on Apr. 02, 2017, up from 2.49 on Apr. 03, 2016.
Cash conversion cycle (CCC) has decreased to 51 days for the quarter from 72 days for the last year period. Days sales outstanding were almost stable at 47 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 28 days for the quarter compared with 50 days for the previous year period. At the same time, days payable outstanding was almost stable at 24 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 $471.24 million, when compared with the last year period. Long-term debt of MASONITE INTERNATIONAL remained almost stable for the quarter at $471.24 million, when compared with the last year period. Total debt was 31.87 percent of total assets as on Apr. 02, 2017, compared with 31.13 percent on Apr. 03, 2016. Debt to equity ratio was almost stable at 0.70 as on Apr. 02, 2017, when compared with the last year.
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