MasterBrand(US:MBC)2024-08-06 20:09Financial Performance - Net sales decreased 2.7% year-over-year to $676.5 million, down from $695.1 million in Q2 2023[1][2] - Net income was $45.3 million, a decrease of 11.5% from $51.2 million in the prior year, resulting in a net income margin of 6.7% compared to 7.4%[3] - Diluted earnings per share were $0.35, down from $0.39 in the prior year, while adjusted diluted earnings per share increased to $0.45 from $0.44[3] - Operating income decreased to $77.8 million for the 13 weeks ended June 30, 2024, down from $87.4 million in the same period last year, representing a decline of 8.8%[18] - Net income for the 13 weeks ended June 30, 2024, was $45.3 million, a decrease of 11.5% from $51.2 million for the same period in 2023[18] - Adjusted net income for the year-to-date period was $98.9 million, an increase from $95.6 million in the same period last year, representing a growth of 3.4%[21] - Net income for the 26 weeks ended June 30, 2024, was $82.8 million, a decrease of 3.9% compared to $86.2 million for the same period last year[28] Cash Flow and Debt - Operating cash flow for the twenty-six weeks ended June 30, 2024, was $96.1 million, compared to $194.0 million in the same period last year[4] - Free cash flow for the twenty-six weeks ended June 30, 2024, was $77.8 million, down from $182.6 million in the prior year[4] - Net debt decreased to $499.5 million from $705.0 million, a significant reduction of 29.2%[26] - Long-term debt decreased to $688.9 million from $788.3 million, a decline of 12.6%[26] - The net cash provided by operating activities was $96.1 million, down from $194.0 million, a decrease of 50.5%[28] - The company issued $700.0 million in long-term and short-term debt during the period, compared to $55.0 million in the previous year[28] EBITDA and Margins - Adjusted EBITDA margin increased by 20 basis points year-over-year to 15.5%, with adjusted EBITDA at $105.1 million[3][4] - Adjusted EBITDA for the 13 weeks ended June 30, 2024, was $105.1 million, slightly down from $106.3 million in the same period last year[20] - Adjusted EBITDA for the trailing twelve months was $380.1 million, down from $411.4 million, indicating a decline of 7.6%[26] - Gross profit margin improved to 34.1% for the 13 weeks ended June 30, 2024, compared to 34.0% for the same period in 2023[18] Future Projections - For full year 2024, the company expects net sales to increase by a low single-digit percentage, with adjusted EBITDA projected between $385 million and $405 million[5][6] - The company anticipates adjusted diluted EPS in the range of $1.50 to $1.62 for 2024[5] Acquisition Details - The acquisition of Supreme Cabinetry Brands was completed for a net cash payment of $520 million, with expected annual run-rate cost synergies of $28 million by the end of year three[5] - The company incurred acquisition-related costs of $4.4 million in the second quarter of fiscal 2024, primarily associated with the acquisition of Supreme Cabinetry Brands, Inc.[24] Assets and Liabilities - Cash and cash equivalents increased to $189.4 million from $110.2 million year-over-year, representing a 72% increase[28] - Total current assets rose to $745.3 million from $728.2 million, reflecting a 2.9% increase[26] - Total liabilities decreased to $1,168.0 million from $1,316.4 million, a reduction of 11.3%[26]