0000062996false00000629962024-07-252024-07-25

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): July 25, 2024

Masco Corporation
(Exact name of Registrant as Specified in Charter)
Delaware1-579438-1794485
(State or Other Jurisdiction of
Incorporation)		(Commission File Number)(I.R.S. Employer Identification No.)
17450 College Parkway,Livonia,Michigan48152
(Address of Principal Executive Offices)(Zip Code)
(313) 274-7400
(Registrant’s telephone number, including area code)
 
    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:
 
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, $1.00 par valueMASNew York Stock Exchange

    Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2).

    ☐ Emerging growth company

    If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐




Item 2.02.  Results of Operations and Financial Condition.
 
Attached and incorporated herein by reference as Exhibit 99 is a copy of the press release dated July 25, 2024 reporting Masco Corporation’s financial results for the second quarter 2024 and certain other information and supplemental information prepared for use in connection with the financial results for the second quarter 2024. On July 25, 2024, Masco Corporation will hold an investor conference call and webcast to discuss financial results for the second quarter 2024.
 
This information, including Exhibit 99 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section.
 
Item 9.01.  Financial Statements and Exhibits.
 
(d) Exhibits.
 
99  Press Release of Masco Corporation dated July 25, 2024 reporting Masco Corporation’s financial results for the second quarter 2024 and certain other information and supplemental information prepared for use in connection with the financial results for the second quarter 2024.

104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
 
SIGNATURE
 
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 thereunto duly authorized.
 
 MASCO CORPORATION
  
  
 By:
/s/ Richard J. Westenberg
 Name:
Richard J. Westenberg
 Title:
Vice President, Chief Financial Officer and Treasurer
  
July 25, 2024
2

Exhibit 99
masco_logoxgray.jpg
 
MASCO CORPORATION REPORTS SECOND QUARTER 2024 RESULTS

Highlights
•Net sales decreased 2 percent to $2,091 million
•Operating profit decreased 1 percent to $397 million; adjusted operating profit decreased 1 percent to $399 million
•Operating profit margin increased 10 basis points to 19.0 percent; adjusted operating profit margin increased 10 basis points to 19.1 percent
•Earnings per share was $1.17 per share; adjusted earnings per share grew 1 percent to $1.20 per share
•Repurchased 2.0 million shares for $143 million
•Expect 2024 earnings per share in the range of $4.03 - $4.18 per share, and on an adjusted basis, $4.05 - $4.20 per share

LIVONIA, Mich. (July 25, 2024) - Masco Corporation (NYSE: MAS), one of the world’s leading manufacturers of branded home improvement and building products, reported its second quarter 2024 results.

2024 Second Quarter Results
•On a reported basis, compared to second quarter 2023:
•Net sales decreased 2 percent to $2,091 million; in local currency and excluding acquisitions, net sales decreased 2 percent
◦Plumbing Products’ net sales increased 2 percent; in local currency and excluding acquisitions, net sales increased 1 percent
◦Decorative Architectural Products’ net sales decreased 7 percent
◦In local currency, North American and International sales both decreased 1 percent
•Gross margin increased 130 basis points to 37.5 percent from 36.2 percent
•Operating profit decreased 1 percent to $397 million from $403 million
•Operating margin increased 10 basis points to 19.0 percent from 18.9 percent
•Net income increased to $1.17 per share, compared to $1.16 per share
•Compared to second quarter 2023, results for key financial measures, as adjusted for certain items (see Exhibit A) and with a normalized tax rate of 24.5 percent, were as follows:
•Gross margin increased 140 basis points to 37.6 percent from 36.2 percent
•Operating profit decreased 1 percent to $399 million from $404 million
•Operating margin increased 10 basis points to 19.1 percent from 19.0 percent
•Net income increased 1 percent to $1.20 per share, compared to $1.19 per share
•Liquidity at the end of the second quarter was $1,398 million (including availability under our revolving credit facility)

“During the first half of this year, we continued to deliver solid results and shareholder value, despite a challenging environment, through the strength of our operating performance,” said Masco President and CEO, Keith Allman. “In the second quarter, we delivered strong adjusted operating profit margin of 19.1 percent and grew adjusted earnings per share by 1 percent. Additionally, our capital allocation strategy enabled us to return $206 million to shareholders though dividends and share repurchases.”

“In the second half of the year, we anticipate ongoing demand headwinds as market conditions remain challenged. However, with our continued focus on execution and operational efficiencies, we are well positioned to drive operating margin expansion for the full year. Additionally, we remain confident in the long-term fundamentals of the repair and remodel market and the strength of our brands and product portfolio,” said Allman. “We now anticipate our 2024 adjusted earnings per share to be in the range of $4.05 to $4.20 per share, compared to our previous expectations of $4.00 to $4.25 per share.”







1


Dividend Declaration
Masco’s Board of Directors declared a quarterly dividend of $0.29 per share, payable on August 19, 2024 to shareholders of record on August 2, 2024.
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; Kichler® decorative and outdoor lighting; Liberty® branded decorative and functional hardware; 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 2024 second quarter supplemental material, including a presentation in PDF format, is available on the Company’s website at www.masco.com.
Conference Call Details
A conference call regarding items contained in this release is scheduled for Thursday, July 25, 2024 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 800-549-8228 or 646-564-2877. Please use the conference identification number 45864.
The conference call will be webcast simultaneously and in its entirety through the Company’s website. Shareholders, media representatives and others interested in Masco may participate in the webcast by registering through the Investor Relations section on the Company’s website.
A replay of the call will be available on Masco’s website or by phone by dialing 888-660-6264 or 646-517-3975. Please use the playback passcode 45864#. The telephone replay will be available approximately two hours after the end of the call and continue through August 25, 2024.
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 to a lesser extent, new home construction, our ability to maintain our strong brands, to develop innovative products and respond to changing consumer purchasing practices and preferences, our ability to maintain our public image and reputation, our ability to maintain our competitive position in our industries, our reliance on key customers, the cost and availability of materials, our dependence on suppliers and service providers, extreme weather events and changes in climate, risks associated with our international operations and global strategies, our ability to achieve the anticipated benefits of our strategic initiatives, our ability to successfully execute our acquisition strategy and integrate businesses that we have acquired and may in the future acquire, our ability to attract, develop and retain a talented and diverse workforce, risks associated with cybersecurity vulnerabilities, threats and attacks and risks associated with our reliance on information systems and 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
Robin Zondervan
Vice President, Investor Relations and FP&A
313.792.5500
robin_zondervan@mascohq.com
# # #




2
MASCO CORPORATION
Condensed Consolidated Statements of Operations - Unaudited
For the Three and Six Months Ended June 30, 2024 and 2023
(in millions, except per common share data)
Three Months Ended June 30,Six Months Ended June 30,
 2024202320242023
Net sales$2,091 $2,127 $4,017 $4,106 
Cost of sales1,306 1,358 2,547 2,668 
Gross profit785 769 1,470 1,438 
Selling, general and administrative expenses388 366 755 720 
Operating profit397 403 715 718 
Other income (expense), net:
Interest expense(26)(28)(50)(56)
Other, net(5)(1)(10)(3)
(31)(29)(61)(59)
Income before income taxes366 374 655 659 
Income tax expense94 96 154 160 
Net income272 278 501 499 
Less: Net income attributable to noncontrolling interest14 15 28 31 
Net income attributable to Masco Corporation$258 $263 $473 $468 
Income per common share attributable to Masco Corporation (diluted):
Net income$1.17 $1.16 $2.14 $2.07 
Average diluted common shares outstanding220 226 221 226 
 
Historical information is available on our website.

Amounts may not add due to rounding.
3
MASCO CORPORATION
Exhibit A: Reconciliations - Unaudited
For the Three and Six Months Ended June 30, 2024 and 2023
(dollars in millions)
Three Months Ended June 30,Six Months Ended June 30,
 2024202320242023
Gross Profit, Selling, General and Administrative Expenses, and Operating Profit Reconciliations    
Net sales$2,091 $2,127 $4,017 $4,106 
Gross profit, as reported$785 $769 $1,470 $1,438 
Rationalization charges (income) (1)
1 1 5 (3)
Gross profit, as adjusted$786 $770 $1,475 $1,435 
Gross margin, as reported37.5 %36.2 %36.6 %35.0 %
Gross margin, as adjusted37.6 %36.2 %36.7 %34.9 %
Selling, general and administrative expenses, as reported$388 $366 $755 $720 
Rationalization charges1 — 1 1 
Selling, general and administrative expenses, as adjusted$387 $366 $754 $719 
Selling, general and administrative expenses as a percent of net sales, as reported18.6 %17.2 %18.8 %17.5 %
Selling, general and administrative expenses as a percent of net sales, as adjusted18.5 %17.2 %18.8 %17.5 %
Operating profit, as reported$397 $403 $715 $718 
Rationalization charges (income) (1)
2 1 6 (2)
Operating profit, as adjusted$399 $404 $721 $716 
Operating margin, as reported19.0 %18.9 %17.8 %17.5 %
Operating margin, as adjusted19.1 %19.0 %17.9 %17.4 %

(1) Represents income for the six months ended June 30, 2023 due to the sale of excess and obsolete inventory that was related to a rationalization activity, partially offset by rationalization charges.

Historical information is available on our website.









Amounts may not add due to rounding.
4
MASCO CORPORATION
Exhibit A: Reconciliations - Unaudited
For the Three and Six Months Ended June 30, 2024 and 2023
(in millions, except per common share data)
Three Months Ended June 30,Six Months Ended June 30,
 2024202320242023
Income Per Common Share Reconciliations
Income before income taxes, as reported$366 $374 $655 $659 
Rationalization charges (income) (1)
2 1 6 (2)
Realized (gains) from private equity funds— — — (1)
Income before income taxes, as adjusted368 375 660 656 
Tax at 24.5% rate (90)(92)(162)(161)
Less: Net income attributable to noncontrolling interest14 15 28 31 
Net income, as adjusted$264 $268 $470 $464 
Net income per common share, as adjusted$1.20 $1.19 $2.13 $2.05 
Average diluted common shares outstanding220 226 221 226 
(1) Represents income for the six months ended June 30, 2023 due to the sale of excess and obsolete inventory that was related to a rationalization activity, partially offset by rationalization charges.

Outlook for the Year Ended December 31, 2024
Year Ended December 31, 2024
Low EndHigh End
Income Per Common Share Reconciliation
Net income per common share$4.03 $4.18 
Rationalization charges
0.02 0.02 
Net income per common share, as adjusted$4.05 $4.20 
    
Historical information is available on our website.

Amounts may not add due to rounding.
5
MASCO CORPORATION
Condensed Consolidated Balance Sheets and Other Financial Data - Unaudited
June 30, 2024 and December 31, 2023
(dollars in millions)
June 30, 2024December 31, 2023
Balance Sheet  
Assets  
Current assets:  
Cash and cash investments$398 $634 
Receivables1,314 1,090 
Inventories1,057 1,022 
Prepaid expenses and other129 110 
Total current assets2,898 2,856 
Property and equipment, net1,116 1,121 
Goodwill601 604 
Other intangible assets, net359 377 
Operating lease right-of-use assets254 268 
Other assets137 139 
Total assets$5,365 $5,363 
Liabilities  
Current liabilities:  
Accounts payable$924 $840 
Notes payable3 3 
Accrued liabilities718 852 
Total current liabilities1,645 1,695 
Long-term debt2,945 2,945 
Noncurrent operating lease liabilities245 258 
Other liabilities347 349 
Total liabilities5,183 5,247 
Redeemable noncontrolling interest— 18 
Equity182 98 
Total liabilities and equity$5,365 $5,363 

 As of June 30,
20242023
Other Financial Data  
Working capital days  
Receivable days54 54 
Inventory days82 80 
Payable days71 70 
Working capital$1,447 $1,557 
Working capital as a % of sales (LTM)
18.4 %18.9 %

Historical information is available on our website.
Amounts may not add due to rounding.
6
MASCO CORPORATION
Condensed Consolidated Statements of Cash Flows and Other Financial Data - Unaudited
For the Six Months Ended June 30, 2024 and 2023

(dollars in millions)
Six Months Ended June 30,
 20242023
Cash Flows From (For) Operating Activities:  
Cash provided by operating activities$648 $632 
Working capital changes(395)(184)
Net cash from operating activities252 448 
Cash Flows From (For) Financing Activities:  
Purchase of Company common stock(290)(81)
Cash dividends paid(128)(129)
Dividends paid to noncontrolling interest(12)(49)
Purchase of redeemable noncontrolling interest(15)— 
Proceeds from short-term borrowings— 77 
Payment of term loan— (200)
Proceeds from the exercise of stock options75 23 
Employee withholding taxes paid on stock-based compensation(33)(23)
Decrease in debt, net(1)(4)
Net cash for financing activities(404)(386)
Cash Flows From (For) Investing Activities:  
Capital expenditures(74)(133)
Acquisition of business
(4)— 
Other, net(1)(4)
Net cash for investing activities(80)(137)
Effect of exchange rate changes on cash and cash investments(5)3 
Cash and Cash Investments:  
Decrease for the period(236)(72)
At January 1634 452 
At June 30$398 $380 
 
 As of June 30,
 20242023
Liquidity
Cash and cash investments$398 $380 
Revolver availability1,000 1,000 
Total Liquidity$1,398 $1,380 
 
Historical information is available on our website.



Amounts may not add due to rounding.
7
MASCO CORPORATION
Segment Data - Unaudited
For the Three and Six Months Ended June 30, 2024 and 2023
(dollars in millions)
Three Months Ended June 30,Six Months Ended June 30,
 20242023Change20242023Change
Plumbing Products      
Net sales$1,253 $1,225 2 %$2,445 $2,447 — %
Operating profit, as reported$247 $244 $472 $450 
Operating margin, as reported19.7 %19.9 %19.3 %18.4 %
Rationalization charges (income)2 1 5 (3)
Operating profit, as adjusted249 245 477 447 
Operating margin, as adjusted19.9 %20.0 %19.5 %18.3 %
Depreciation and amortization27 25 53 50 
EBITDA, as adjusted$276 $270 $530 $497 
Decorative Architectural Products
Net sales$838 $902 (7)%$1,572 $1,659 (5)%
Operating profit, as reported$174 $180 $299 $312 
Operating margin, as reported20.8 %20.0 %19.0 %18.8 %
Rationalization charges— — 1 1 
Operating profit, as adjusted174 180 299 313 
Operating margin, as adjusted20.8 %20.0 %19.0 %18.9 %
Depreciation and amortization9 9 19 17 
EBITDA, as adjusted$184 $189 $318 $330 
Total
Net sales$2,091 $2,127 (2)%$4,017 $4,106 (2)%
Operating profit, as reported - segment$421 $424 $771 $762 
General corporate expense, net(24)(21)(55)(44)
Operating profit, as reported397 403 715 718 
Operating margin, as reported19.0 %18.9 %17.8 %17.5 %
Rationalization charges (income) - segment2 1 6 (2)
Operating profit, as adjusted399 404 721 716 
Operating margin, as adjusted19.1 %19.0 %17.9 %17.4 %
Depreciation and amortization - segment36 34 72 67 
Depreciation and amortization - other2 1 4 3 
EBITDA, as adjusted$437 $439 $797 $786 

Historical information is available on our website.
Amounts may not add due to rounding.
8
MASCO CORPORATION
North American and International Data - Unaudited
For the Three and Six Months Ended June 30, 2024 and 2023
(dollars in millions)
Three Months Ended June 30,Six Months Ended June 30,
 20242023Change20242023Change
North American      
Net sales$1,695 $1,718 (1)%$3,220 $3,273 (2)%
Operating profit, as reported$360 $358 $645 $624 
Operating margin, as reported21.2 %20.8 %20.0 %19.1 %
Rationalization charges (income)1 1 4 (2)
Operating profit, as adjusted361 359 649 622 
Operating margin, as adjusted21.3 %20.9 %20.2 %19.0 %
Depreciation and amortization23 22 47 43 
EBITDA, as adjusted$385 $381 $695 $665 
International
Net sales$397 $409 (3)%$797 $833 (4)%
Operating profit, as reported$61 $66 $126 $138 
Operating margin, as reported15.4 %16.1 %15.8 %16.6 %
Rationalization charges1 — 2 — 
Operating profit, as adjusted62 66 128 138 
Operating margin, as adjusted15.6 %16.1 %16.1 %16.6 %
Depreciation and amortization13 12 25 24 
EBITDA, as adjusted$75 $78 $153 $162 
Total
Net sales$2,091 $2,127 (2)%$4,017 $4,106 (2)%
Operating profit, as reported - segment$421 $424 $771 $762 
General corporate expense, net(24)(21)(55)(44)
Operating profit, as reported397 403 715 718 
Operating margin, as reported19.0 %18.9 %17.8 %17.5 %
Rationalization charges (income) - segment2 1 6 (2)
Operating profit, as adjusted399 404 721 716 
Operating margin, as adjusted19.1 %19.0 %17.9 %17.4 %
Depreciation and amortization - segment36 34 72 67 
Depreciation and amortization - other2 1 4 3 
EBITDA, as adjusted$437 $439 $797 $786 

Historical information is available on our website.
Amounts may not add due to rounding.
9
v3.24.2
Cover
Jul. 25, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Jul. 25, 2024
Entity Registrant Name Masco Corporation
Entity Incorporation, State or Country Code DE
Entity File Number 1-5794
Entity Tax Identification Number 38-1794485
Entity Address, Address Line One 17450 College Parkway,
Entity Address, City or Town Livonia,
Entity Address, State or Province MI
Entity Address, Postal Zip Code 48152
City Area Code 313
Local Phone Number 274-7400
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $1.00 par value
Trading Symbol MAS
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0000062996
Amendment Flag false
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