Masonite swings to profit in Q2
Masonite International Corporation announced steady sales growth of 8.2% and a net profit for the second quarter of 2014, putting the company back in the black after it suffered a loss in the same quarter last year.
Net sales increased by $37.1 million to a total of $490.2 million for the three months ended June 29. Masonite largely attributed the growth to a 5.5% increase in average unit price and a 3.4% increase in unit volumes.
Net income came in at $5.6 million, up from 2013's loss of $1.2 million.
Fred Lynch, president and CEO, remarked upon the improvement in adjusted EBITDA, which increased 31.6% to $44.1 million, marking the company's highest figure for the metric in five years.
“Previously announced price increases, a slowly improving U.S. housing market and tight operational cost control allowed us to deliver our strongest quarterly results in five years,” said Lynch. “While we believe we have not yet obtained a fair return for the high quality products and services we provide, the improvement in adjusted EBITDA margin we achieved during the second quarter suggests the balanced set of strategies we have been pursuing is moving us in the right direction.”
Masonite also noted the June 6 explosion in its South African Estcourt Mill, which led to the halting of production lines for several weeks. The mill is still running at approximately half the desired output, but the estimated adjusted EBITDA impact rests between $6 million and $7 million.