Masonite Announces Fourth-Quarter 2007 Sales Declined 16.8 Percent from 2006

Masonite International Inc. has announced fourth-quarter 2007 sales of $486.8 million, a decline of 16.8 percent compared to sales of $585.0 million in the fourth quarter of 2006. The Mississauga, Ontario-based company also announced that its operating EBITDA decreased 42.9 percent to $39.4 million from $69.0 million in the fourth quarter of 2006. Adjusted EBITDA, calculated pursuant to the company’s credit agreement, declined 24.0 percent to $57.6 million in the fourth quarter of 2007, compared to $75.8 million in the prior year period. The company notes, though, that its fourth-quarter 2007 adjusted EBITDA includes $18.2 million of net adjustments, while adjusted EBITDA in the fourth quarter of 2006 includes $6.8 million of such adjustments.

“It is clear that we are in, have been in, and will continue to be in an extremely challenging market environment in the United States, which is our largest market,” says Frederick Lynch, president and chief executive officer of Masonite. “At Masonite, we continue to actively address the reality of the difficult markets head on through aggressive cost actions, plant consolidations and closures, and tighter working capital and cash controls, while at the same time pursuing growth opportunities through new products and innovation.”

In the fourth quarter, the company completed the consolidation of its interior door manufacturing operations in Florida, resulting in the closure of its Tampa, Fla., facility. Late last year, the company also announced the closure of four additional sites; one located in the United Kingdom and three additional sites in North America. The company recorded a restructuring charge of $8.6 million in the fourth quarter of 2007 in connection with these closures as well as a further reduction in salaried workforce and non-cash asset impairment and disposal losses of $6.6 million associated with redundant assets scheduled for disposal upon closure of the aforementioned facilities.

CLICK HERE for Masonite’s full fourth-quarter financial report.

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