Masco(MAS) - 2020 Q1 - Quarterly Report

Financial Performance - Net sales increased by 4% to $1,581 million for the three-month period ended March 31, 2020, compared to $1,513 million in the same period of 2019[97] - Operating profit increased to $252 million for the three-month period ended March 31, 2020, up from $226 million in the same period of 2019[92] - Income from continuing operations was $133 million for the three-month period ended March 31, 2020, compared to $107 million in the same period of 2019[109] - Diluted income per common share increased to $0.48 for the three-month period ended March 31, 2020, up from $0.36 in the same period of 2019[109] - Gross profit margin improved to 34.6% for the three-month period ended March 31, 2020, compared to 34.5% in the prior year[102] Cash Flow and Investments - Net cash used for operating activities was $92 million for the three-month period ended March 31, 2020, impacted by an increase in accounts receivable[114] - Net cash provided by investing activities was $807 million, primarily from the sale of Cabinetry, net of cash disposed[116] - The current cash balance and borrowing availability under the Credit Agreement are deemed sufficient to fund near-term working capital needs[125] Impact of COVID-19 - The company anticipates significant adverse impacts on operations in the second quarter of 2020 due to the COVID-19 pandemic, including reduced consumer demand and supply chain disruptions[123] - The company anticipates experiencing short-term softness in its businesses due to the COVID-19 pandemic but remains confident in the fundamentals of its operations[130] - The company has implemented alternative work arrangements to ensure employee safety during the pandemic[127] Strategic Focus - The company is focused on leveraging its strong brand portfolio and industry-leading positions to drive long-term shareholder value[130] - The company emphasizes its strong financial position and cash flow generation as key drivers for future growth[130] - The company is committed to innovation and disciplined capital allocation to enhance its market position[130] - The company is focused on successfully executing its acquisition strategy and integrating acquired businesses[132] - The company is investing in new technology to achieve anticipated benefits and improve operational efficiency[132] Market Risks - The company acknowledges risks related to residential repair and remodel activity, new home construction, and the ongoing COVID-19 pandemic[132] - The company highlights the importance of maintaining its strong brands and reputation in the competitive landscape[132] - The company is monitoring the cost and availability of materials, which could impact its production capabilities[132]