2016.04.26 8-K (Segments Recast)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
_______________________________________ 
FORM 8-K
 
 ________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 26, 2016
 
  ________________________________________
Masonite International Corporation
(Exact name of registrant as specified in its charter)
 
  ________________________________________
 
British Columbia, Canada
 
001-11796
 
98-0377314
(State or other jurisdiction
of incorporation)
 
(Commission
File Number)
 
(IRS Employer
Identification No.)
 
2771 Rutherford Road
Concord, Ontario, Canada
 
L4K 2N6
(Address of principal executive offices)
 
(Zip Code)
(800) 895-2723
(Registrant’s telephone number, including area code)
NOT APPLICABLE
(Former name or former address, if changed since last report)
 
 ________________________________________
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


1

Item 7.01
Regulation FD Disclosure

Masonite International Corporation ("Masonite" or "the Company") previously announced a change to its reportable segments, effective for the quarter ending April 3, 2016, to align with changes in how the Company manages the business, reviews operating performance and allocates resources as a result of the deconsolidation of South Africa and other internal reporting changes.
The Company will hold a brief conference call and webcast on April 27, 2016, beginning at 9:00 a.m. ET to discuss the segment change. The live audio webcast can be accessed, together with the related presentation materials, on the Masonite website at www.masonite.com under Investors > Events & Presentations.
Telephone access to the live call will be available at 877-407-3980 (in the U.S.) or by dialing 201-689-8475 (outside U.S.).
A telephone replay will be available approximately one hour following completion of the call through May 11, 2016. To access the replay, please dial 877-660-6853 (in the U.S.) or 201-612-7415 (outside U.S.). Enter Conference ID #13635387.
The information furnished in this Item 7.01 shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 8.01
Other Events

The Company is filing this Item 8.01 of Form 8-K to recast certain historical results for previously reported fiscal periods for the 2014 and 2015 quarterly and year-end periods, as described in more detail below, to reflect the previously announced segment change. The Company's reportable segments have changed, effective for the quarter ending April 3, 2016. The Company will begin to report results under the new reportable segments with the filing of its Quarterly Report on Form 10-Q for the quarter ending April 3, 2016. The new segments align with changes in how the Company manages the business, reviews operating performance and allocates resources as a result of the deconsolidation of its Africa reportable segment and other internal reporting changes. The Company’s re-aligned reportable segments are as follows:
•
North American Residential
•
Europe
•
Architectural

North American Residential reportable segment is the aggregation of the Wholesale and Retail operating segments. The Europe reportable segment is the aggregation of the United Kingdom, Central Eastern Europe and France (prior to disposal) operating segments. The Architectural reportable segment consists solely of the Architectural operating segment. In addition to the new reportable segments, the Corporate & Other category includes unallocated corporate costs and the results of immaterial operating segments which were not aggregated into any reportable segment, including the historical results of our Africa operating segment.

2

The financial information included in this Item 8.01 includes recast segment net sales and Adjusted EBITDA (as defined) for the years ended January 3, 2016, and December 28, 2014, and for each fiscal quarter therein. The financial information furnished also includes a reconciliation of net sales by segment for each fiscal quarter during the year ended January 3, 2016, compared to the respective fiscal quarter in the year ended December 28, 2014. The recast of historical segment information has no impact on the Company's previously reported consolidated results of operations, financial condition or cash flows.

Non-GAAP Financial Measure Information
Adjusted EBITDA is a measure used by management to evaluate segment performance and allocate resources. Adjusted EBITDA is defined as net income (loss) attributable to Masonite plus depreciation, amortization, restructuring costs, loss (gain) on sale of property, plant and equipment, asset impairment, loss (gain) on disposal of subsidiaries, registration and listing fees, interest expense, net, loss on extinguishment of debt, other expense (income), net, income tax expense (benefit), loss (income) from discontinued operations, net of tax, net income attributable to non-controlling interest and share based compensation expense. Adjusted EBITDA is not a measure of financial condition or profitability under GAAP, and should not be considered as an alternative to (i) net income (loss) or net income (loss) attributable to Masonite determined in accordance with GAAP or (ii) operating cash flow determined in accordance with GAAP. Additionally, Adjusted EBITDA is not intended to be a measure of free cash flow for management's discretionary use, as it does not include certain cash requirements such as interest payments, tax payments and debt service requirements. We believe that the inclusion of Adjusted EBITDA in this press release is appropriate to provide additional information to investors about our operating performance. Not all companies use identical calculations, and as a result, this presentation of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. Moreover, Adjusted EBITDA as presented for financial reporting purposes herein, although similar, is not the same as similar terms in the applicable covenants in our ABL Facility or our senior notes. Adjusted EBITDA, as calculated under our ABL Facility or senior notes would also include, among other things, additional add-backs for amounts related to: cost savings projected by us in good faith to be realized as a result of actions taken or expected to be taken prior to or during the relevant period; fees and expenses in connection with certain plant closures and layoffs; and the amount of any restructuring charges, integration costs or other business optimization expenses or reserve deducted in the relevant period in computing consolidated net income, including any one-time costs incurred in connection with acquisitions. The tables following the recast financial information set forth reconciliations of Adjusted EBITDA to net income (loss) attributable to Masonite for the periods indicated.


3

MASONITE INTERNATIONAL COPORATION
SALES RECONCILIATION AND ADJUSTED EBITDA BY REPORTABLE SEGMENT
(Unaudited)


(In millions)
North American Residential
 
Europe
 
Architectural
 
Corporate & Other
 
Consolidated
Fourth quarter 2014 net sales
$
281.1

 
$
81.5

 
$
61.8

 
$
24.6

 
$
448.9

Foreign exchange
(13.1
)
 
(2.9
)
 
(1.1
)
 
(3.3
)
 
(20.4
)
Volume*
27.6

 
(3.0
)
 
12.5

 
1.2

 
38.3

Average unit price
13.9

 
5.0

 
(0.9
)
 
(3.7
)
 
14.3

Other
1.4

 
0.7

 
2.5

 
(0.4
)
 
4.3

Fourth quarter 2015 net sales
$
310.9

 
$
81.3

 
$
74.8

 
$
18.4

 
$
485.4

 
 
 
 
 
 
 
 
 
 
Fourth quarter 2014 Adj. EBITDA
$
29.4

 
$
4.0

 
$
2.0

 
$
2.3

 
$
37.7

Fourth quarter 2015 Adj. EBITDA
45.6

 
9.9

 
4.9

 
(3.6
)
 
56.8

 
 
 
 
 
 
 
 
 
 
Year over year growth, net sales
10.6
%
 
(0.2
)%
 
21.0
%
 


 
8.1
%
Year over year growth, Adj. EBITDA
55.1
%
 
147.5
 %
 
145.0
%
 

 
50.7
%
Fourth quarter 2014 Adj. EBITDA margin
10.5
%
 
4.9
 %
 
3.2
%
 

 
8.4
%
Fourth quarter 2015 Adj. EBITDA margin
14.7
%
 
12.2
 %
 
6.6
%
 


 
11.7
%
(*) Includes the incremental impact of acquisitions and dispositions.

(In millions)
North American Residential
 
Europe
 
Architectural
 
Corporate & Other
 
Consolidated
Third quarter 2014 net sales
$
302.3

 
$
80.6

 
$
72.2

 
$
21.1

 
$
476.1

Foreign exchange
(15.2
)
 
(6.7
)
 
(1.2
)
 
(2.9
)
 
(26.0
)
Volume*
(9.8
)
 
(0.5
)
 
3.0

 
0.6

 
(6.7
)
Average unit price
25.9

 
4.6

 
0.3

 
0.7

 
31.5

Other
1.0

 
0.4

 
(0.2
)
 
(0.5
)
 
0.8

Third quarter 2015 net sales
$
304.2

 
$
78.4

 
$
74.1

 
$
19.0

 
$
475.7

 
 
 
 
 
 
 
 
 
 
Third quarter 2014 Adj. EBITDA
$
34.9

 
$
0.8

 
$
6.7

 
$
(6.8
)
 
$
35.6

Third quarter 2015 Adj. EBITDA
43.9

 
5.9

 
6.1

 
(5.5
)
 
50.5

 
 
 
 
 
 
 
 
 
 
Year over year growth, net sales
0.6
%
 
(2.7
)%
 
2.6
 %
 


 
(0.1
)%
Year over year growth, Adj. EBITDA
25.8
%
 
637.5
 %
 
(9.0
)%
 

 
41.9
 %
Third quarter 2014 Adj. EBITDA margin
11.5
%
 
1.0
 %
 
9.3
 %
 

 
7.5
 %
Third quarter 2015 Adj. EBITDA margin
14.4
%
 
7.5
 %
 
8.2
 %
 


 
10.6
 %
(*) Includes the incremental impact of acquisitions and dispositions.


4

MASONITE INTERNATIONAL COPORATION
SALES RECONCILIATION AND ADJUSTED EBITDA BY REPORTABLE SEGMENT
(Unaudited)


(In millions)
North American Residential
 
Europe
 
Architectural
 
Corporate & Other
 
Consolidated
Second quarter 2014 net sales
$
305.7

 
$
86.9

 
$
71.6

 
$
26.0

 
$
490.2

Foreign exchange
(10.4
)
 
(12.6
)
 
(0.8
)
 
(1.9
)
 
(25.7
)
Volume*
(8.8
)
 
(1.6
)
 
4.6

 
(4.5
)
 
(10.3
)
Average unit price
17.5

 
4.4

 
1.9

 
0.7

 
24.5

Other
0.9

 
—

 
(1.3
)
 
(1.8
)
 
(2.3
)
Second quarter 2015 net sales
$
304.9

 
$
77.1

 
$
76.0

 
$
18.5

 
$
476.4

 
 
 
 
 
 
 
 
 
 
Second quarter 2014 Adj. EBITDA
$
39.2

 
$
5.7

 
$
6.7

 
$
(7.6
)
 
$
44.1

Second quarter 2015 Adj. EBITDA
46.7

 
8.1

 
8.2

 
(3.9
)
 
59.1

 
 
 
 
 
 
 
 
 
 
Year over year growth, net sales
(0.3
)%
 
(11.3
)%
 
6.1
%
 


 
(2.8
)%
Year over year growth, Adj. EBITDA
19.1
 %
 
42.1
 %
 
22.4
%
 

 
34.0
 %
Second quarter 2014 Adj. EBITDA margin
12.8
 %
 
6.6
 %
 
9.4
%
 

 
9.0
 %
Second quarter 2015 Adj. EBITDA margin
15.3
 %
 
10.5
 %
 
10.8
%
 


 
12.4
 %
(*) Includes the incremental impact of acquisitions and dispositions.


(In millions)
North American Residential
 
Europe
 
Architectural
 
Corporate & Other
 
Consolidated
First quarter 2014 net sales
$
253.9

 
$
77.2

 
$
64.6

 
$
26.7

 
$
422.5

Foreign exchange
(8.2
)
 
(10.8
)
 
(0.7
)
 
(1.2
)
 
(20.9
)
Volume*
9.2

 
3.0

 
1.4

 
(4.5
)
 
9.1

Average unit price
17.1

 
6.0

 
2.2

 
(1.3
)
 
24.0

Other
1.3

 
(0.4
)
 
(0.6
)
 
(0.5
)
 
(0.2
)
First quarter 2015 net sales
$
273.3

 
$
75.0

 
$
66.9

 
$
19.2

 
$
434.5

 
 
 
 
 
 
 
 
 
 
First quarter 2014 Adj. EBITDA
$
17.5

 
$
4.0

 
$
4.4

 
$
(6.2
)
 
$
19.7

First quarter 2015 Adj. EBITDA
29.3

 
6.6

 
4.0

 
(2.2
)
 
37.8

 
 
 
 
 
 
 
 
 
 
Year over year growth, net sales
7.6
%
 
(2.8
)%
 
3.6
 %
 


 
2.8
%
Year over year growth, Adj. EBITDA
67.4
%
 
65.0
 %
 
(9.1
)%
 

 
91.9
%
First quarter 2014 Adj. EBITDA margin
6.9
%
 
5.2
 %
 
6.8
 %
 

 
4.7
%
First quarter 2015 Adj. EBITDA margin
10.7
%
 
8.8
 %
 
6.0
 %
 


 
8.7
%
(*) Includes the incremental impact of acquisitions and dispositions.


5

MASONITE INTERNATIONAL COPORATION
SALES RECONCILIATION AND ADJUSTED EBITDA BY REPORTABLE SEGMENT
(Unaudited)


(In millions)
North American Residential
 
Europe
 
Architectural
 
Corporate & Other
 
Consolidated
Full year 2014 net sales
$
1,143.0

 
$
326.2

 
$
270.2

 
$
98.4

 
$
1,837.7

Foreign exchange
(46.9
)
 
(33.0
)
 
(3.8
)
 
(9.2
)
 
(92.9
)
Volume*
18.2

 
(2.1
)
 
21.5

 
(7.1
)
 
30.5

Average unit price
74.4

 
20.0

 
3.5

 
(3.6
)
 
94.3

Other
4.5

 
0.7

 
0.4

 
(3.4
)
 
2.4

Full year 2015 net sales
$
1,193.2

 
$
311.8

 
$
291.8

 
$
75.1

 
$
1,872.0

 
 
 
 
 
 
 
 
 
 
Full year 2014 Adj. EBITDA
$
120.9

 
$
14.6

 
$
19.8

 
$
(18.2
)
 
$
137.1

Full year 2015 Adj. EBITDA
165.6

 
30.5

 
23.3

 
(15.1
)
 
204.2

 
 
 
 
 
 
 
 
 
 
Year over year growth, net sales
4.4
%
 
(4.4
)%
 
8.0
%
 


 
1.9
%
Year over year growth, Adj. EBITDA
37.0
%
 
108.9
 %
 
17.7
%
 

 
48.9
%
Full year 2014 Adj. EBITDA margin
10.6
%
 
4.5
 %
 
7.3
%
 

 
7.5
%
Full year 2015 Adj. EBITDA margin
13.9
%
 
9.8
 %
 
8.0
%
 


 
10.9
%
(*) Includes the incremental impact of acquisitions and dispositions.


6

MASONITE INTERNATIONAL COPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE
(Unaudited)


 
Three Months Ended January 3, 2016
(In thousands)
North American Residential
 
Europe
 
Architectural
 
Corporate & Other
 
Total
Adjusted EBITDA
$
45,615

 
$
9,905

 
$
4,925

 
$
(3,605
)
 
$
56,840

Less (plus):
 
 
 
 
 
 
 
 
 
Depreciation
7,896

 
2,157

 
2,145

 
2,692

 
14,890

Amortization
1,295

 
2,806

 
2,311

 
1,069

 
7,481

Share based compensation expense
—

 
—

 
—

 
6,261

 
6,261

Loss (gain) on disposal of property, plant and equipment
53

 
292

 
436

 
5

 
786

Restructuring costs
2

 
87

 
—

 
1,106

 
1,195

Loss (gain) on disposal of subsidiaries
—

 
—

 
—

 
30,263

 
30,263

Interest expense (income), net
—

 
—

 
—

 
7,165

 
7,165

Other expense (income), net
(50
)
 
882

 
—

 
950

 
1,782

Income tax expense (benefit)
—

 
—

 
—

 
(1,595
)
 
(1,595
)
Loss (income) from discontinued operations, net of tax
—

 
—

 
—

 
247

 
247

Net income (loss) attributable to non-controlling interest
866

 
—

 
—

 
717

 
1,583

Net income (loss) attributable to Masonite
$
35,553

 
$
3,681

 
$
33

 
$
(52,485
)
 
$
(13,218
)

 
Three Months Ended December 28, 2014
(In thousands)
North American Residential
 
Europe
 
Architectural
 
Corporate & Other
 
Total
Adjusted EBITDA
$
29,374

 
$
4,042

 
$
2,000

 
$
2,306

 
$
37,722

Less (plus):
 
 
 
 
 
 
 
 
 
Depreciation
8,384

 
2,240

 
2,013

 
2,161

 
14,798

Amortization
1,377

 
1,102

 
1,995

 
1,075

 
5,549

Share based compensation expense
—

 
—

 
—

 
2,270

 
2,270

Loss (gain) on disposal of property, plant and equipment
869

 
12

 
325

 
251

 
1,457

Restructuring costs
44

 
(46
)
 
—

 
(55
)
 
(57
)
Asset impairment
—

 
14,020

 
—

 
4,182

 
18,202

Interest expense (income), net
—

 
—

 
—

 
10,491

 
10,491

Other expense (income), net
—

 
161

 
—

 
(1,831
)
 
(1,670
)
Income tax expense (benefit)
—

 
—

 
—

 
1,131

 
1,131

Loss (income) from discontinued operations, net of tax
—

 
—

 
—

 
194

 
194

Net income (loss) attributable to non-controlling interest
764

 
—

 
—

 
960

 
1,724

Net income (loss) attributable to Masonite
$
17,936

 
$
(13,447
)
 
$
(2,333
)
 
$
(18,523
)
 
$
(16,367
)

7

MASONITE INTERNATIONAL COPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE
(Unaudited)


 
Three Months Ended September 27, 2015
(In thousands)
North American Residential
 
Europe
 
Architectural
 
Corporate & Other
 
Total
Adjusted EBITDA
$
43,885

 
$
5,941

 
$
6,141

 
$
(5,455
)
 
$
50,512

Less (plus):
 
 
 
 
 
 
 
 
 
Depreciation
7,683

 
2,107

 
2,081

 
2,683

 
14,554

Amortization
1,261

 
2,208

 
2,015

 
774

 
6,258

Share based compensation expense
—

 
—

 
—

 
1,490

 
1,490

Loss (gain) on disposal of property, plant and equipment
213

 
14

 
59

 
5

 
291

Restructuring costs
2

 
219

 
—

 
918

 
1,139

Asset impairment
—

 
9,439

 
—

 
—

 
9,439

Loss (gain) on disposal of subsidiaries
—

 
29,721

 
—

 
—

 
29,721

Interest expense (income), net
—

 
—

 
—

 
7,179

 
7,179

Other expense (income), net
—

 
77

 
—

 
(1,797
)
 
(1,720
)
Income tax expense (benefit)
—

 
—

 
—

 
(2,510
)
 
(2,510
)
Loss (income) from discontinued operations, net of tax
—

 
—

 
—

 
192

 
192

Net income (loss) attributable to non-controlling interest
696

 
—

 
—

 
66

 
762

Net income (loss) attributable to Masonite
$
34,030

 
$
(37,844
)
 
$
1,986

 
$
(14,455
)
 
$
(16,283
)

 
Three Months Ended September 28, 2014
(In thousands)
North American Residential
 
Europe
 
Architectural
 
Corporate & Other
 
Total
Adjusted EBITDA
$
34,900

 
$
772

 
$
6,701

 
$
(6,776
)
 
$
35,597

Less (plus):
 
 
 
 
 
 
 
 
 
Depreciation
7,132

 
4,021

 
2,014

 
2,675

 
15,842

Amortization
1,295

 
863

 
1,872

 
859

 
4,889

Share based compensation expense
—

 
—

 
—

 
2,255

 
2,255

Loss (gain) on disposal of property, plant and equipment
1,276

 
(948
)
 
90

 
(182
)
 
236

Restructuring costs
107

 
192

 
—

 
9,614

 
9,913

Interest expense (income), net
—

 
—

 
—

 
10,447

 
10,447

Other expense (income), net
—

 
22

 
—

 
(426
)
 
(404
)
Income tax expense (benefit)
—

 
—

 
—

 
2,004

 
2,004

Loss (income) from discontinued operations, net of tax
—

 
—

 
—

 
124

 
124

Net income (loss) attributable to non-controlling interest
643

 
—

 
—

 
(385
)
 
258

Net income (loss) attributable to Masonite
$
24,447

 
$
(3,378
)
 
$
2,725

 
$
(33,761
)
 
$
(9,967
)

8

MASONITE INTERNATIONAL COPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE
(Unaudited)


 
Three Months Ended June 28, 2015
(In thousands)
North American Residential
 
Europe
 
Architectural
 
Corporate & Other
 
Total
Adjusted EBITDA
$
46,713

 
$
8,053

 
$
8,185

 
$
(3,894
)
 
$
59,057

Less (plus):
 
 
 
 
 
 
 
 
 
Depreciation
7,925

 
1,882

 
2,020

 
2,583

 
14,410

Amortization
1,091

 
924

 
2,074

 
886

 
4,975

Share based compensation expense
—

 
—

 
—

 
3,106

 
3,106

Loss (gain) on disposal of property, plant and equipment
317

 
5

 
9

 
19

 
350

Restructuring costs
3

 
467

 
—

 
518

 
988

Interest expense (income), net
—

 
—

 
—

 
6,787

 
6,787

Other expense (income), net
—

 
45

 
—

 
(680
)
 
(635
)
Income tax expense (benefit)
—

 
—

 
—

 
15,013

 
15,013

Loss (income) from discontinued operations, net of tax
—

 
—

 
—

 
240

 
240

Net income (loss) attributable to non-controlling interest
823

 
—

 
—

 
(442
)
 
381

Net income (loss) attributable to Masonite
$
36,554

 
$
4,730

 
$
4,082

 
$
(31,924
)
 
$
13,442


 
Three Months Ended June 29, 2014
(In thousands)
North American Residential
 
Europe
 
Architectural
 
Corporate & Other
 
Total
Adjusted EBITDA
$
39,180

 
$
5,731

 
$
6,739

 
$
(7,600
)
 
$
44,050

Less (plus):
 
 
 
 
 
 
 
 
 
Depreciation
7,353

 
2,724

 
2,029

 
2,430

 
14,536

Amortization
1,083

 
1,430

 
1,665

 
1,415

 
5,593

Share based compensation expense
—

 
—

 
—

 
2,797

 
2,797

Loss (gain) on disposal of property, plant and equipment
929

 
20

 
64

 
23

 
1,036

Restructuring costs
370

 
201

 
—

 
(11
)
 
560

Interest expense (income), net
—

 
—

 
—

 
10,594

 
10,594

Other expense (income), net
—

 
(47
)
 
—

 
1,353

 
1,306

Income tax expense (benefit)
—

 
—

 
—

 
1,379

 
1,379

Loss (income) from discontinued operations, net of tax
—

 
—

 
—

 
170

 
170

Net income (loss) attributable to non-controlling interest
772

 
—

 
—

 
(273
)
 
499

Net income (loss) attributable to Masonite
$
28,673

 
$
1,403

 
$
2,981

 
$
(27,477
)
 
$
5,580


9

MASONITE INTERNATIONAL COPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE
(Unaudited)


 
Three Months Ended March 29, 2015
(In thousands)
North American Residential
 
Europe
 
Architectural
 
Corporate & Other
 
Total
Adjusted EBITDA
$
29,347

 
$
6,569

 
$
4,030

 
$
(2,158
)
 
$
37,788

Less (plus):
 
 
 
 
 
 
 
 
 
Depreciation
7,952

 
1,959

 
1,977

 
3,418

 
15,306

Amortization
1,307

 
922

 
2,028

 
754

 
5,011

Share based compensation expense
—

 
—

 
—

 
2,379

 
2,379

Loss (gain) on disposal of property, plant and equipment
213

 
14

 
44

 
(327
)
 
(56
)
Restructuring costs
3

 
1,728

 
—

 
625

 
2,356

Interest expense (income), net
—

 
—

 
—

 
11,753

 
11,753

Loss on extinguishment of debt
—

 
—

 
—

 
28,046

 
28,046

Other expense (income), net
—

 
83

 
—

 
(1,267
)
 
(1,184
)
Income tax expense (benefit)
—

 
—

 
—

 
3,264

 
3,264

Loss (income) from discontinued operations, net of tax
—

 
—

 
—

 
229

 
229

Net income (loss) attributable to non-controlling interest
938

 
—

 
—

 
798

 
1,736

Net income (loss) attributable to Masonite
$
18,934

 
$
1,863

 
$
(19
)
 
$
(51,830
)
 
$
(31,052
)

 
Three Months Ended March 30, 2014
(In thousands)
North American Residential
 
Europe
 
Architectural
 
Corporate & Other
 
Total
Adjusted EBITDA
$
17,490

 
$
4,025

 
$
4,359

 
$
(6,156
)
 
$
19,718

Less (plus):
 
 
 
 
 
 
 
 
 
Depreciation
8,588

 
3,132

 
2,027

 
1,699

 
15,446

Amortization
2,077

 
142

 
3,215

 
257

 
5,691

Share based compensation expense
—

 
—

 
—

 
2,283

 
2,283

Loss (gain) on disposal of property, plant and equipment
769

 
313

 
8

 
(3
)
 
1,087

Restructuring costs
126

 
570

 
—

 
25

 
721

Interest expense (income), net
—

 
—

 
—

 
9,993

 
9,993

Other expense (income), net
—

 
55

 
—

 
126

 
181

Income tax expense (benefit)
—

 
—

 
—

 
19

 
19

Loss (income) from discontinued operations, net of tax
—

 
—

 
—

 
142

 
142

Net income (loss) attributable to non-controlling interest
649

 
—

 
—

 
92

 
741

Net income (loss) attributable to Masonite
$
5,281

 
$
(187
)
 
$
(891
)
 
$
(20,789
)
 
$
(16,586
)


10

MASONITE INTERNATIONAL COPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE
(Unaudited)


 
Year Ended January 3, 2016
(In thousands)
North American Residential
 
Europe
 
Architectural
 
Corporate & Other
 
Total
Adjusted EBITDA
$
165,560

 
$
30,468

 
$
23,281

 
$
(15,112
)
 
$
204,197

Less (plus):
 
 
 
 
 
 
 
 
 
Depreciation
31,456

 
8,105

 
8,223

 
11,376

 
59,160

Amortization
4,954

 
6,860

 
8,428

 
3,483

 
23,725

Share based compensation expense
—

 
—

 
—

 
13,236

 
13,236

Loss (gain) on disposal of property, plant and equipment
796

 
325

 
548

 
(298
)
 
1,371

Restructuring costs
10

 
2,501

 
—

 
3,167

 
5,678

Asset impairment
—

 
9,439

 
—

 
—

 
9,439

Loss (gain) on disposal of subsidiaries
—

 
29,721

 
—

 
30,263

 
59,984

Interest expense (income), net
—

 
—

 
—

 
32,884

 
32,884

Loss on extinguishment of debt
—

 
—

 
—

 
28,046

 
28,046

Other expense (income), net
(50
)
 
1,087

 
—

 
(2,794
)
 
(1,757
)
Income tax expense (benefit)
—

 
—

 
—

 
14,172

 
14,172

Loss (income) from discontinued operations, net of tax
—

 
—

 
—

 
908

 
908

Net income (loss) attributable to non-controlling interest
3,323

 
—

 
—

 
1,139

 
4,462

Net income (loss) attributable to Masonite
$
125,071

 
$
(27,570
)
 
$
6,082

 
$
(150,694
)
 
$
(47,111
)

 
Year Ended December 28, 2014
(In thousands)
North American Residential
 
Europe
 
Architectural
 
Corporate & Other
 
Total
Adjusted EBITDA
$
120,944

 
$
14,570

 
$
19,799

 
$
(18,226
)
 
$
137,087

Less (plus):
 
 
 
 
 
 
 
 
 
Depreciation
31,457

 
12,117

 
8,083

 
8,965

 
60,622

Amortization
5,832

 
3,537

 
8,747

 
3,606

 
21,722

Share based compensation expense
—

 
—

 
—

 
9,605

 
9,605

Loss (gain) on disposal of property, plant and equipment
3,843

 
(603
)
 
487

 
89

 
3,816

Restructuring costs
647

 
917

 
—

 
9,573

 
11,137

Asset impairment
—

 
14,020

 
—

 
4,182

 
18,202

Interest expense (income), net
—

 
—

 
—

 
41,525

 
41,525

Other expense (income), net
—

 
191

 
—

 
(778
)
 
(587
)
Income tax expense (benefit)
—

 
—

 
—

 
4,533

 
4,533

Loss (income) from discontinued operations, net of tax
—

 
—

 
—

 
630

 
630

Net income (loss) attributable to non-controlling interest
2,828

 
—

 
—

 
394

 
3,222

Net income (loss) attributable to Masonite
$
76,337

 
$
(15,609
)
 
$
2,482

 
$
(100,550
)
 
$
(37,340
)


11

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
MASONITE INTERNATIONAL CORPORATION
 
 
 
Date:
April 26, 2016
By:
 
/s/ Robert E. Lewis
 
 
Name:
 
Robert E. Lewis
 
 
Title:
 
Senior Vice President, General Counsel and Secretary


12