Q4 and FY 2024 Investor Presentation February 18, 2025 Forward-Looking Statements Certain statements contained in this presentation, other than purely historical information, including, but not limited to estimates, projections, statements relating to our business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are forward-looking statements. Statements preceded by, followed by or that otherwise include the word "believes," "expects," "anticipates ...

Core Viewpoint - MasterBrand (NYSE: MBC) is positioned for growth through market share gains via new product launches tailored to customer needs under the "Align to Grow" initiative and cross-selling synergies from the Supreme Cabinetry acquisition [1] Group 1: Growth Prospects - The company is expected to benefit from market share gains through the introduction of new products [1] - Integration of the Supreme Cabinetry acquisition is anticipated to create cross-selling synergies [1] Group 2: Strategic Initiatives - The "Align to Grow" initiative focuses on launching products that meet customer needs [1]

Financial Performance - Net sales for the thirteen weeks ended September 29, 2024, were $718.1 million, an increase of $40.8 million or 6.0% compared to $677.3 million for the same period in 2023, primarily driven by the acquisition of Supreme, which contributed $60.8 million in incremental net sales [111]. - Net income for the thirteen weeks ended September 29, 2024, was $29.1 million, a decrease of $30.6 million or 51.3% compared to $59.7 million in the prior year [111]. - Net sales for the thirty-nine weeks ended September 29, 2024, were $2,032.7 million, a decrease of $16.4 million, or 0.8%, compared to $2,049.1 million for the same period in 2023 [126]. - Net income for the thirty-nine weeks ended September 29, 2024, was $111.9 million, a decrease of $34.0 million, or 23.3%, from $145.9 million in the previous year [124]. Costs and Expenses - Cost of products sold increased by $40.3 million or 9.2% to $480.1 million, representing 66.9% of net sales, compared to $439.8 million or 64.9% of net sales in the prior year [115]. - Selling, general and administrative expenses rose by $26.0 million or 18.5% to $166.3 million, accounting for 23.2% of net sales, compared to 20.7% in the previous year [116]. - Selling, general and administrative expenses increased by $33.5 million, or 8.0%, to $450.8 million, representing 22.2% of net sales, compared to 20.4% in the previous year [130]. - Cost of products sold decreased by $11.8 million, or 0.9%, to $1,359.0 million, representing 66.9% of net sales, compared to $1,370.8 million in the previous year [129]. Operating Income - Operating income decreased by $34.6 million or 37.5% to $57.6 million, down from $92.2 million in the same quarter last year [111]. - Operating income decreased by $47.1 million, or 19.2%, to $198.2 million compared to $245.3 million for the same period in 2023 [124]. Interest and Debt - Interest expense increased to $20.0 million from $15.3 million, primarily due to higher outstanding debt related to the funding of the Supreme acquisition [118]. - Interest expense rose to $54.7 million, an increase of $4.8 million, or 9.6%, compared to $49.9 million in the previous year [132]. - The company completed a refinancing transaction on June 27, 2024, raising $700.0 million in Senior Notes to fund the acquisition of Supreme and refinance existing debt [140]. - As of September 29, 2024, the company had $1,062.3 million in outstanding third-party borrowings, net of deferred financing fees [147]. Restructuring and Charges - Restructuring charges were $7.8 million, significantly higher than $1.4 million in the same quarter last year, reflecting costs associated with aligning workforce with forecasted demand [117]. - Restructuring charges increased to $11.0 million in the thirty-nine weeks ended September 29, 2024, compared to $4.1 million in the same period in 2023 [131]. Cash Flow - Net cash provided by operating activities was $176.9 million for the first three quarters of 2024, down from $336.5 million in the same period of 2023, reflecting unfavorable movements in accounts receivable and inventory [150]. - Net cash used in investing activities increased to $541.9 million in the first three quarters of 2024, primarily due to the acquisition of Supreme for $515.7 million [151]. - Net cash provided by financing activities was $331.3 million in the first three quarters of 2024, compared to a net cash used of $292.1 million in the same period of 2023 [152]. - The company reported a net decrease in cash, cash equivalents, and restricted cash of $39.3 million for the first three quarters of 2024 [150]. Acquisition and Integration - The acquisition of Supreme broadened the company's portfolio of premium cabinetry and was funded with cash on hand and proceeds from a revolving credit facility [109]. - The company completed the acquisition of Supreme on July 10, 2024, and is currently integrating its processes and internal controls [166]. Market Conditions - Overall end-market demand was softer in the repair and remodel markets, while single-family new construction showed strength compared to the previous year [112]. - Foreign currency impact was unfavorable by $0.4 million during the thirteen weeks ended September 29, 2024, compared to the same period in 2023 [114]. Compliance and Ratios - The company is required to maintain a minimum interest coverage ratio of 3.00 to 1.00 and a net leverage ratio not exceeding 3.50 to 1.00 for fiscal quarters ending on or prior to December 31, 2024 [146]. - The company was in compliance with all debt covenants under the 2024 Credit Agreement as of September 29, 2024 [146]. Taxation - Effective tax rate for the thirty-nine weeks ended September 29, 2024, was 24.6%, down from 25.4% in the prior year [135].

Company Overview - MasterBrand (NYSE: MBC) is a leading manufacturer of residential cabinetry in North America, offering a wide range of products for kitchens, bathrooms, and other areas of the home [1]. Financial Performance - MasterBrand has demonstrated stable revenue growth over the years, indicating a consistent demand for its products [1]. Investment Philosophy - The investment approach focuses on fundamental analysis, emphasizing companies with a strong competitive moat, consistent growth in free cash flow, and a robust financial performance track record [1].

All considered, I like MasterBrand and am happy to follow them over time - it's a simple, relatively easy-to-understand business levered to a growing, albeit cyclical, end-market. Fundamentally, while I don't contextualize there being much more room for growth outside of what the market grants given how mature the industry is, the market isn't pricing really any growth over time notwithstanding the market's history and what appears to be a stabilizing market. Furthermore, I do see MBC as better operators th ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-41545 MasterBrand, Inc. Table of Contents (Exact name of registrant as specified in its charter) Delaware 88-3479920 (State or other jurisdiction of incorporation or organiz ...

MasterBrand Reports First Quarter 2024 Financial Results BEACHWOOD, Ohio.--(BUSINESS WIRE)--May 7, 2024-- MasterBrand, Inc. (NYSE: MBC, the "Company," or "MasterBrand"), the largest residential cabinet manufacturer in North America, today announced first quarter 2024 financial results. "We delivered a solid quarter of results to start the year, with continued year-over-year adjusted EBITDA margin expansion and strong first quarter free cash flow," said Dave Banyard, President and Chief Executive Officer. "W ...

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Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-41545 MasterBrand, Inc. (Exact name of registrant as specified in its charter) Delaware 88-3479920 (State or other jurisdiction of incorporation or organization ...

MasterBrand Reports Fourth Quarter and Full Year 2023 Financial Results BEACHWOOD, Ohio.--(BUSINESS WIRE)--February 26, 2024-- MasterBrand, Inc. (NYSE: MBC, the "Company," or "MasterBrand"), the largest residential cabinet manufacturer in North America, today announced fourth quarter and full year 2023 financial results. "We delivered another solid quarter, finishing off a strong first year as a standalone public company. With net sales at the high-end of our internal expectations, and our operations perfor ...