On August 6, 2024, MasterBrand Inc (MBC, Financial) released its 8-K filing detailing the financial results for the second quarter of 2024. MasterBrand Inc operates as a residential cabinet manufacturer in North America, offering a comprehensive portfolio of residential cabinetry products for the kitchen, bathroom, and other parts of the home. The firm sells its products throughout the United States and Canada through three primary channels: dealers, retailers, and builders.
Performance Overview
MasterBrand Inc (MBC, Financial) reported net sales of $676.5 million for Q2 2024, a 2.7% decrease from $695.1 million in the same quarter last year. Despite this decline, the company exceeded analyst estimates of $674.20 million. The net income for the quarter was $45.3 million, down from $51.2 million in Q2 2023, reflecting an 11.5% decrease. The net income margin also saw a slight decline from 7.4% to 6.7% year-over-year.
Financial Achievements
Adjusted EBITDA margin increased by 20 basis points to 15.5%, showcasing improved gross profit margin performance. Diluted earnings per share (EPS) were $0.35, compared to $0.39 in the prior year quarter. Adjusted diluted EPS rose to $0.45 from $0.44 in Q2 2023.
“MasterBrand delivered another solid quarter of financial performance, with continued year-over-year adjusted EBITDA margin expansion and strong free cash flow,” said Dave Banyard, President and Chief Executive Officer.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Sales | $676.5 million | $695.1 million |
| Gross Profit | $231.0 million | $236.2 million |
| Net Income | $45.3 million | $51.2 million |
| Diluted EPS | $0.35 | $0.39 |
| Adjusted Diluted EPS | $0.45 | $0.44 |
Balance Sheet and Cash Flow
As of June 30, 2024, MasterBrand Inc (MBC, Financial) had $189.4 million in cash and $727.3 million of availability under its new revolving credit facility. Total debt stood at $688.9 million, with a net debt of $499.5 million. The company reported operating cash flow of $96.1 million for the first half of 2024, compared to $194.0 million in the same period last year. Free cash flow was $77.8 million, down from $182.6 million year-over-year.
Supreme Cabinetry Brands Acquisition
MasterBrand Inc (MBC, Financial) closed the acquisition of Supreme Cabinetry Brands for a net cash payment of $520 million. The acquisition is expected to deliver $28 million of annual run-rate cost synergies by the end of year three and is anticipated to be accretive to adjusted EBITDA margin and adjusted diluted EPS in 2024.
2024 Financial Outlook
Following the acquisition, MasterBrand Inc (MBC, Financial) has increased its financial outlook for 2024. The company expects net sales to increase by a low single-digit percentage year-over-year, with adjusted EBITDA in the range of $385 million to $405 million and adjusted diluted EPS between $1.50 and $1.62.
“We are pleased with our second quarter financial performance, as end market demand remained mixed,” said Andi Simon, Executive Vice President and Chief Financial Officer.
For more detailed financial information, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from MasterBrand Inc for further details.
