EX-99 2 a8-kexhibit99093019.htm EXHIBIT 99 Exhibit


Exhibit 99
 mascoa13.jpg                                            
 
MASCO CORPORATION REPORTS THIRD QUARTER 2019 RESULTS

Key Results

•
Sales increased 2 percent to $1.9 billion; in local currency, sales increased 3 percent
•
Operating profit for the quarter increased 10 percent to $316 million; adjusted operating profit increased 8 percent to $326 million
•
Earnings per share from continuing operations increased 16 percent to $0.64 per share; adjusted earnings per share from continuing operations increased 11 percent to $0.68 per share
•
Updating 2019 anticipated earnings per share from continuing operations to be in the range of $2.41 - $2.45 per share, and on an adjusted basis, to be in the range of $2.52 - $2.56 per share
•
Windows businesses accounted for as discontinued operations

LIVONIA, Mich. (October 30, 2019) - Masco Corporation (NYSE: MAS), one of the world’s leading manufacturers of branded home improvement and building products, reported its third quarter results.

“We delivered solid sales and operating profit growth in the quarter, as well as strong margin expansion,” said Masco President and CEO, Keith Allman. “This performance was driven by growth in both our Plumbing Products and Decorative Architectural Products segments. Additionally, we continued our focus on creating shareholder value and returned $186 million to shareholders through share repurchases and dividends during the quarter.”

2019 Third Quarter Commentary

•
On a reported basis, compared to third quarter 2018:
•
Net sales increased 2 percent to $1.9 billion; in local currency, net sales increased 3 percent
•
In local currency, North American sales increased 3 percent and international sales increased 5 percent
•
Gross margins increased 150 basis points to 34.2 percent from 32.7 percent
•
Operating profit increased 10 percent to $316 million
•
Operating margins increased 120 basis points to 16.2 percent from 15.0 percent
•
Income from continuing operations increased to $0.64 per share, compared to $0.55 per share
•
Compared to third quarter 2018, results for key financial measures, as adjusted for certain items (see Exhibit A) and with a normalized tax rate of 25 percent, were as follows:
•
Gross margins increased 80 basis points to 34.4 percent compared to 33.6 percent
•
Operating profit increased 8 percent to $326 million from $303 million
•
Operating margins increased 80 basis points to 16.7 percent compared to 15.9 percent
•
Income from continuing operations increased to $0.68 per share, compared to $0.61 per share
•
Liquidity at the end of the third quarter was $475 million
•
Repurchased 3.8 million shares in the quarter

2019 Third Quarter Operating Segment Results

•
Plumbing Products’ net sales increased 1 percent (3 percent excluding the impact of foreign currency) due to growth in both North America and international
•
Decorative Architectural Products’ net sales increased 5 percent due to strong growth in paints and other coating products
•
Cabinetry Products’ net sales decreased 3 percent due to mix, partially offset by pricing

“We are pleased with our performance in the third quarter and with the progress we are making on the anticipated divestitures of our Cabinetry and Windows businesses. During the quarter we completed the sale of our UK Window business and announced the signing of a definitive agreement to sell our Milgard Windows and Doors business,” said Allman. “After accounting for our Windows businesses as discontinued operations, we now expect adjusted earnings per share from continuing operations to be in the range of $2.52-$2.56 for the full year.”











1


About Masco

Headquartered in Livonia, Michigan, Masco Corporation is a global leader in the design, manufacture and distribution of branded home improvement and building products. Our portfolio of industry-leading brands includes Behr® paint; Delta® and Hansgrohe® faucets, bath and shower fixtures; KraftMaid® and Merillat® cabinets; Kichler® decorative and outdoor lighting; and HotSpring® spas. We leverage our powerful brands across product categories, sales channels and geographies to create value for our customers and shareholders. For more information about Masco Corporation, visit www.masco.com.

The 2019 third quarter supplemental material, including a presentation in PDF format, is available on Masco’s website at www.masco.com.

Conference Call Details

A conference call regarding items contained in this release is scheduled for Wednesday, October 30, 2019 at 8:00 a.m. ET. Participants in the call are asked to register five to ten minutes prior to the scheduled start time by dialing (855) 226-2726 (855-22MASCO) and from outside the U.S. at (706) 679-3614. Please use the conference identification number 4086468. The conference call will be webcast simultaneously and in its entirety through Masco’s website. Shareholders, media representatives and others interested in Masco may participate in the webcast by registering through the Investor Relations section on Masco’s website.

A replay of the call will be available on Masco’s website or by phone by dialing (855) 859-2056 and from outside the U.S. at (404) 537-3406. Please use the conference identification number 4086468. The telephone replay will be available approximately two hours after the end of the call and continue through November 30, 2019.

Safe Harbor Statement

This press release contains statements that reflect our views about our future performance and constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “outlook,” “believe,” “anticipate,” “appear,” “may,” “will,” “should,” “intend,” “plan,” “estimate,” “expect,” “assume,” “seek,” “forecast,” and similar references to future periods. Our views about future performance involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. We caution you against relying on any of these forward-looking statements.

Our future performance may be affected by the levels of residential repair and remodel activity and new home construction, our ability to maintain our strong brands and reputation and to develop new products, our ability to maintain our competitive position in our industries, our reliance on key customers, the cost and availability of raw materials and increasing tariffs, our dependence on third-party suppliers, risks associated with international operations and global strategies, our ability to achieve the anticipated benefits of our strategic initiatives, including the potential divestitures of our Cabinetry and Windows businesses, our ability to successfully execute our acquisition strategy and integrate businesses that we have and may acquire, our ability to attract, develop and retain talented personnel, risks associated with our reliance on information systems and technology, and our ability to achieve the anticipated benefits from our investments in new technology. These and other factors are discussed in detail in Item 1A, “Risk Factors” in our most recent Annual Report on Form 10-K, as well as in our Quarterly Reports on Form 10-Q and in other filings we make with the Securities and Exchange Commission. Any forward-looking statement made by us speaks only as of the date on which it was made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. Unless required by law, we undertake no obligation to update publicly any forward-looking statements as a result of new information, future events or otherwise.

Investor Contact

David Chaika
Vice President, Treasurer and Investor Relations    
313.792.5500
david_chaika@mascohq.com
# # #

2
MASCO CORPORATION
Condensed Consolidated Statements of Operations - Unaudited
For the Three and Nine Months Ended September 30, 2019 and 2018

(in millions, except per common share data)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Net sales
$
1,947

 
$
1,904

 
$
5,787

 
$
5,743

Cost of sales
1,282

 
1,281

 
3,813

 
3,832

Gross profit
665

 
623

 
1,974

 
1,911

 
 
 
 
 
 
 
 
Selling, general and administrative expenses
349

 
337

 
1,047

 
1,041

Impairment charge for other intangible assets
—

 
—

 
9

 
—

Operating profit
316

 
286

 
918

 
870

 
 
 
 
 
 
 
 
Other income (expense), net:
 
 
 
 
 
 
 
Interest expense
(39
)
 
(38
)
 
(119
)
 
(117
)
Other, net
(8
)
 
—

 
(16
)
 
(12
)
 
(47
)
 
(38
)
 
(135
)
 
(129
)
Income from continuing operations before
    income taxes
269

 
248

 
783

 
741

 
 
 
 
 
 
 
 
Income tax expense
73

 
67

 
202

 
188

Income from continuing operations
196

 
181

 
581

 
553

 
 
 
 
 
 
 
 
(Loss) income from discontinued operations, net
(58
)
 
10

 
(64
)
 
23

Net income
138

 
191

 
517

 
576

 
 
 
 
 
 
 
 
Less: Net income attributable to noncontrolling interest
12

 
11

 
35

 
36

Net income attributable to Masco Corporation
$
126

 
$
180

 
$
482

 
$
540

 
 
 
 
 
 
 
 
Income (loss) per common share attributable to Masco Corporation (diluted):
 

 
 

 
 

 
 

Income from continuing operations
$
0.64

 
$
0.55

 
$
1.87

 
$
1.66

(Loss) income from discontinued operations,
   net
(0.20
)
 
0.03

 
(0.22
)
 
0.07

Net income
$
0.44

 
$
0.58

 
$
1.65

 
$
1.73

 
 
 
 
 
 
 
 
Average diluted common shares outstanding
287

 
306

 
290

 
309

 
 
 
 
 
 
 
 
Amounts attributable to Masco Corporation:
 

 
 

 
 

 
 

Income from continuing operations
$
184

 
$
170

 
$
546

 
$
517

(Loss) income from discontinued operations,
   net
(58
)
 
10

 
(64
)
 
23

Net income attributable to Masco Corporation
$
126

 
$
180

 
$
482

 
$
540

 
Historical information is available on our website.


3
MASCO CORPORATION
Exhibit A: Reconciliations - Unaudited
For the Three and Nine Months Ended September 30, 2019 and 2018

(dollars in millions)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019

2018
Gross Profit, Selling, General and Administrative Expenses, and Operating Profit Reconciliations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
$
1,947

 
$
1,904

 
$
5,787

 
$
5,743

 
 
 
 
 
 
 
 
Gross profit, as reported
$
665

 
$
623

 
$
1,974

 
$
1,911

Rationalization charges
5

 
2

 
7

 
5

Kichler inventory step up adjustment
—

 
15

 
—

 
40

Gross profit, as adjusted
$
670

 
$
640

 
$
1,981

 
$
1,956

 
 
 
 
 
 
 
 
Gross margin, as reported
34.2
%
 
32.7
%

34.1
%

33.3
%
Gross margin, as adjusted
34.4
%
 
33.6
%

34.2
%

34.1
%
 
 
 
 
 
 
 
 
Selling, general and administrative expenses, as reported
$
349

 
$
337

 
$
1,047

 
$
1,041

Rationalization charges
4

 
—

 
4

 
—

Professional fees related to potential divestiture
1

 
—

 
4

 
—

Selling, general and administrative expenses, as adjusted
$
344

 
$
337

 
$
1,039

 
$
1,041

 
 
 
 
 
 
 
 
Selling, general and administrative expenses as percent of net sales, as reported
17.9
%
 
17.7
%

18.1
%

18.1
%
Selling, general and administrative expenses as percent of net sales, as adjusted
17.7
%
 
17.7
%
 
18.0
%
 
18.1
%
 
 
 
 
 
 
 
 
Operating profit, as reported
$
316

 
$
286

 
$
918

 
$
870

Rationalization charges
9

 
2

 
11

 
5

Kichler inventory step up adjustment
—

 
15

 
—

 
40

Impairment charge for other intangible assets
—

 
—

 
9

 
—

Professional fees related to potential divestiture
1

 
—

 
4

 
—

Operating profit, as adjusted
$
326

 
$
303


$
942


$
915

 
 
 
 
 
 
 
 
Operating margin, as reported
16.2
%
 
15.0
%

15.9
%

15.1
%
Operating margin, as adjusted
16.7
%
 
15.9
%

16.3
%

15.9
%

Historical information is available on our website.

4
MASCO CORPORATION
Exhibit A: Reconciliations - Unaudited
For the Three and Nine Months Ended September 30, 2019 and 2018

(in millions, except per common share data)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Income Per Common Share Reconciliations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations before income taxes, as reported
$
269

 
$
248

 
$
783

 
$
741

Rationalization charges
9

 
2

 
11

 
5

Kichler inventory step up adjustment
—

 
15

 
—

 
40

Impairment charge for other intangible assets
—

 
—

 
9

 
—

Professional fees related to potential divestiture
1

 
—

 
4

 
—

(Earnings) from equity investments, net
(1
)
 
—

 
(1
)
 
(2
)
Income from continuing operations before income taxes, as adjusted
278

 
265

 
806

 
784

Tax at 25% rate
(70
)

(66
)
 
(202
)
 
(196
)
Less: Net income attributable to noncontrolling interest
12

 
11

 
35

 
36

Income from continuing operations, as adjusted
$
196

 
$
188

 
$
569

 
$
552

 
 
 
 
 
 
 
 
Income from continuing operations per common share, as adjusted
$
0.68


$
0.61

 
$
1.96

 
$
1.79

 
 
 
 
 
 
 
 
Average diluted common shares outstanding
287

 
306

 
290

 
309


Outlook for the Twelve Months Ended December 31, 2019
 
Twelve Months Ended December 31, 2019
 
Low End
 
High End
Income Per Common Share Outlook
 
 
 
 
 
 
 
Income from continuing operations per common share
$
2.41

 
$
2.45

Rationalization charges
0.04

 
0.04

Impairment charge for other intangible assets
0.03

 
0.03

Professional fees related to potential divestiture
0.02

 
0.02

Allocation to participating securities per share (1)
0.02

 
0.02

Income from continuing operations per common share, as adjusted
$
2.52

 
$
2.56


(1) Represents the impact of distributed dividends and undistributed earnings to unvested restricted stock awards in accordance with the two-class method of calculating earnings per share.

Historical information is available on our website.


5
MASCO CORPORATION
Condensed Consolidated Balance Sheets and Other Financial Data - Unaudited
September 30, 2019 and December 31, 2018

(dollars in millions)
 
September 30, 2019
 
December 31, 2018
Balance Sheet
 

 
 

Assets
 

 
 

Current Assets:
 

 
 

Cash and cash investments
$
475

 
$
553

Receivables
1,177

 
1,068

Prepaid expenses and other
105

 
90

Inventories
924

 
904

Assets held for sale
111

 
151

Total Current Assets
2,792

 
2,766

 
 
 
 
Property and equipment, net
1,017

 
1,037

Operating lease right-of-use assets
183

 
—

Goodwill
687

 
692

Other intangible assets, net
264

 
289

Other assets
85

 
100

Assets held for sale
492

 
509

Total Assets
$
5,520

 
$
5,393

 
 
 
 
Liabilities
 

 
 

Current Liabilities:
 

 
 

Accounts payable
$
879

 
$
851

Notes payable
208

 
8

Accrued liabilities
682

 
676

Liabilities held for sale
140

 
149

Total Current Liabilities
1,909

 
1,684

 
 
 
 
Long-term debt
2,771

 
2,971

Other liabilities
684

 
561

Liabilities held for sale
133

 
108

Total Liabilities
5,497

 
5,324

 
 
 
 
Equity
23

 
69

Total Liabilities and Equity
$
5,520

 
$
5,393

 
 
As of September 30,
 
2019
 
2018
Other Financial Data
 

 
 

Working Capital Days
 

 
 

Receivable days
53

 
54

Inventory days
71

 
76

Payable days
69

 
75

Working capital
$
1,222

 
$
1,204

Working capital as a % of sales (LTM)
16.0
%
 
16.2
%
 
Historical information is available on our website.

6
MASCO CORPORATION
Condensed Consolidated Statements of Cash Flows and Other Financial Data - Unaudited
For the Nine Months Ended September 30, 2019 and 2018

(dollars in millions)
 
Nine Months Ended September 30,
 
2019
 
2018
Cash Flows From (For) Operating Activities:
 

 
 

Cash provided by operating activities
$
754

 
$
729

Working capital changes
(149
)
 
(75
)
Net cash from operating activities
605

 
654

 
 
 
 
Cash Flows From (For) Financing Activities:
 

 
 

Retirement of notes
—

 
(114
)
Purchase of Company common stock
(440
)
 
(354
)
Cash dividends paid
(105
)
 
(98
)
Dividends paid to noncontrolling interest
(42
)
 
(89
)
Proceeds from the exercise of stock options
23

 
8

Employee withholding taxes paid on stock-based compensation
(21
)
 
(38
)
Decrease in debt, net
(3
)
 
(1
)
Credit Agreement and other financing costs
(2
)
 
—

Net cash for financing activities
(590
)
 
(686
)
 
 
 
 
Cash Flows From (For) Investing Activities:
 

 
 

Capital expenditures
(111
)
 
(160
)
Acquisition of business, net of cash acquired
—

 
(549
)
Proceeds from disposition of business, net of cash disposed
2

 
—

Other, net
5

 
108

Net cash for investing activities
(104
)
 
(601
)
 
 
 
 
Effect of exchange rate changes on cash and cash investments
10

 
8

 
 
 
 
Cash and Cash Investments:
 

 
 

Decrease for the period
(79
)
 
(625
)
At January 1
559

 
1,194

At September 30
$
480

 
$
569

 
 
As of September 30,
 
2019
 
2018
Liquidity
 

 
 

Cash and cash investments
$
475

 
$
560

 
Historical information is available on our website.


7
MASCO CORPORATION
Segment Data - Unaudited
For the Three and Nine Months Ended September 30, 2019 and 2018

(dollars in millions)
 
Three Months Ended September 30,
 
 
 
Nine Months Ended September 30,
 
 
 
2019
 
2018
 
Change
 
2019
 
2018
 
Change
Plumbing Products
 

 
 

 
 

 
 
 
 
 
 
Net sales
$
1,006

 
$
992

 
1
 %
 
$
2,958

 
$
2,995

 
(1
)%
 
 
 
 
 
 
 
 
 
 
 
 
Operating profit, as reported
$
179

 
$
177

 
 

 
$
530

 
$
534

 
 
Operating margin, as reported
17.8
%
 
17.8
%




17.9
%

17.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rationalization charges
9

 
2

 
 

 
11

 
4

 
 
Accelerated depreciation related to rationalization activity
—

 
—

 
 
 
—

 
1

 
 
Operating profit, as adjusted
188

 
179





541


539

 
 
Operating margin, as adjusted
18.7
%
 
18.0
%




18.3
%

18.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
20

 
20

 
 

 
59

 
56

 
 
EBITDA, as adjusted
$
208

 
$
199





$
600


$
595

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Decorative Architectural Products
 

 
 

 
 

 
 
 
 
 
 
Net sales
$
710

 
$
673

 
5
 %
 
$
2,110

 
$
2,024

 
4
 %
 
 
 
 
 
 
 
 
 
 
 
 
Operating profit, as reported
$
134

 
$
104

 
 
 
$
380

 
$
338

 
 
Operating margin, as reported
18.9
%

15.5
%




18.0
%

16.7
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Kichler inventory step up adjustment
—

 
15

 
 
 
—

 
40

 
 
Impairment charge for other intangible assets
—

 
—

 
 
 
9

 
—

 
 
Operating profit, as adjusted
134

 
119





389


378

 
 
Operating margin, as adjusted
18.9
%
 
17.7
%




18.4
%

18.7
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
11

 
10

 
 

 
31

 
25

 
 
EBITDA, as adjusted
$
145

 
$
129





$
420


$
403

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cabinetry Products
 

 
 

 
 

 
 
 
 
 
 
Net sales
$
231

 
$
239

 
(3
)%
 
$
719

 
$
724

 
(1
)%
 
 
 
 
 
 
 
 
 
 
 
 
Operating profit, as reported
$
26

 
$
23

 
 

 
$
79

 
$
62

 
 
Operating margin, as reported
11.3
%

9.6
%




11.0
%

8.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Professional fees related to potential divestiture
1

 
—

 
 

 
4

 
—

 
 
Operating profit, as adjusted
27

 
23





83


62

 
 
Operating margin, as adjusted
11.7
%
 
9.6
%




11.5
%

8.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
3

 
3

 
 

 
10

 
10

 
 
EBITDA, as adjusted
$
30

 
$
26





$
93


$
72

 
 
 Historical information is available on our website.

8
MASCO CORPORATION
Segment Data - Unaudited
For the Three and Nine Months Ended September 30, 2019 and 2018

(dollars in millions)
 
Three Months Ended September 30,
 
 
 
Nine Months Ended September 30,
 
 
 
2019
 
2018
 
Change
 
2019
 
2018
 
Change
Total
 

 
 

 
 

 
 
 
 
 
 

Net sales
$
1,947

 
$
1,904

 
2
%
 
$
5,787

 
$
5,743

 
1
%
 
 
 
 
 
 
 
 
 
 
 
 
Operating profit, as reported - segment
$
339

 
$
304

 
 

 
$
989

 
$
934

 
 

General corporate expense, net
(23
)
 
(18
)
 
 

 
(71
)
 
(64
)
 
 

Operating profit, as reported
316

 
286





918


870

 
 

Operating margin, as reported
16.2
%
 
15.0
%




15.9
%

15.1
%
 
 

 
 
 
 
 
 
 
 
 
 
 
 
Rationalization charges - segment
9

 
2

 
 

 
11

 
4

 
 

Accelerated depreciation related to rationalization activity - segment
—

 
—

 
 
 
—

 
1

 
 
Kichler inventory step up adjustment
—

 
15

 
 

 
—

 
40

 
 

Impairment charge for other intangible assets
—

 
—

 
 
 
9

 
—

 
 
Professional fees related to potential divestiture
1

 
—

 
 
 
4

 
—

 
 
Operating profit, as adjusted
326

 
303

 
 
 
942


915

 
 
Operating margin, as adjusted
16.7
%
 
15.9
%




16.3
%

15.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization - segment
34

 
33

 
 

 
100

 
91

 
 

Depreciation and amortization - non-operating
2

 
2

 
 

 
7

 
6

 
 

EBITDA, as adjusted
$
362

 
$
338





$
1,049


$
1,012

 
 

 
Historical information is available on our website.


9
MASCO CORPORATION
North American and International Data - Unaudited
For the Three and Nine Months Ended September 30, 2019 and 2018

(dollars in millions)
 
Three Months Ended September 30,



Nine Months Ended September 30,


 
2019

2018

Change

2019

2018

Change
North American
 

 
 

 
 

 
 

 
 

 
 
Net sales
$
1,605

 
$
1,565

 
3
%
 
$
4,752

 
$
4,653

 
2
 %
 
 
 
 
 
 
 
 
 
 
 
 
Operating profit, as reported
$
288

 
$
253

 
 

 
$
838

 
$
773

 
 
Operating margin, as reported
17.9
%
 
16.2
%




17.6
%

16.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rationalization charges
9

 
2

 
 

 
11

 
4

 
 
Accelerated depreciation related to rationalization activity
—

 
—

 
 
 
—

 
1

 
 
Kichler inventory step up adjustment
—

 
15

 
 

 
—

 
40

 
 
Impairment charge for other intangible assets
—

 
—

 
 
 
9

 
—

 
 
Professional fees related to potential divestiture
1

 
—

 
 
 
4

 
—

 
 
Operating profit, as adjusted
298

 
270





862


818

 
 
Operating margin, as adjusted
18.6
%
 
17.3
%




18.1
%

17.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
24

 
23

 
 

 
71

 
63

 
 
EBITDA, as adjusted
$
322

 
$
293





$
933


$
881

 
 
 
 
 
 
 
 
 
 
 
 
 
 
International
 

 
 

 
 

 
 

 
 

 
 
Net sales
$
342

 
$
339

 
1
%
 
$
1,035

 
$
1,090

 
(5
)%
 
 
 
 
 
 
 
 
 
 
 
 
Operating profit, as reported
$
51

 
$
51

 
 

 
$
151

 
$
161

 
 
Operating margin, as reported
14.9
%
 
15.0
%




14.6
%

14.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
10

 
10

 
 

 
29

 
28

 
 
EBITDA
$
61

 
$
61





$
180


$
189

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Historical information is available on our website.

 
 
 
 
 
 
 
 
 
 

10
MASCO CORPORATION
North American and International Data - Unaudited
For the Three and Nine Months Ended September 30, 2019 and 2018

(dollars in millions)
 
 
Three Months Ended September 30,
 
 
 
Nine Months Ended September 30,
 
 
 
2019
 
2018
 
Change
 
2019
 
2018
 
Change
Total
 

 
 

 
 

 
 

 
 

 
 
Net sales
$
1,947

 
$
1,904

 
2
%
 
$
5,787

 
$
5,743

 
1
 %
 
 
 
 
 
 
 
 
 
 
 
 
Operating profit, as reported - segment
$
339

 
$
304

 
 

 
$
989

 
$
934

 
 
General corporate expense, net
(23
)
 
(18
)
 
 

 
(71
)
 
(64
)
 
 
Operating profit, as reported
316

 
286





918


870

 
 
Operating margin, as reported
16.2
%
 
15.0
%




15.9
%

15.1
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rationalization charges - segment
9

 
2

 
 

 
11

 
4

 
 
Accelerated depreciation related to rationalization activity
—

 
—

 
 
 
—

 
1

 
 
Kichler inventory step up adjustment
—

 
15

 
 

 
—

 
40

 
 
Impairment charge for other intangible assets
—

 
—

 
 
 
9

 
—

 
 
Professional fees related to potential divestiture
1

 
—

 
 
 
4

 
—

 
 
Operating profit, as adjusted
326

 
303





942


915

 
 
Operating margin, as adjusted
16.7
%
 
15.9
%




16.3
%

15.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization - segment
34

 
33

 
 

 
100

 
91

 
 
Depreciation and amortization - non-operating
2

 
2

 
 

 
7

 
6

 
 
EBITDA, as adjusted
$
362

 
$
338

 
 

 
$
1,049

 
$
1,012

 
 

Historical information is available on our website.



11