Masonite International Corporation (NYSE:DOOR) Q2 2020 Earnings Conference Call - Final Transcript

Aug 04, 2020 • 09:00 am ET

Previous

Masonite International Corporation (NYSE:DOOR) Q2 2020 Earnings Conference Call - Final Transcript

Share
Close

Loading Event

Loading Transcript

Presentation
Operator
Operator

Welcome to Masonite's Second Quarter 2020 Earnings Conference Call [Operator Instructions].

Please note that this conference call is being recorded. I would now like to turn the call over to Joanne Freiberger, Vice President and Treasurer. Thank you. You may begin.

Executive
Joanne Freiberger

Thank you, Michelle, and good morning, everyone. We appreciate you joining us today. With me on the call today are Howard Heckes, Masonite's President and Chief Executive Officer; and Russell Tiejema, Masonite's Executive Vice President and Chief Financial Officer; and we have Tony Hair, President of Global Residential, joining us for our Q&A session. We issued a press release and Webex presentation after market closed yesterday, sharing our second quarter 2020 results. These documents are available on our website at masonite.com.

Before we begin, I'd like to remind you that this call will include forward-looking statements. Each forward-looking statement contained in this call is subject to risks and uncertainties that could cause actual results to differ materially from those projected in such statements. Additional information regarding these factors appears in the section titled Forward-Looking Statements in the press release.

Additional information about risks can be found under the heading Risk Factors in Masonite's most recently filed annual report on Form 10-K and our subsequent Form 10-Q, which are available at sec.gov and masonite.com. The forward-looking statements in this call speak only as of today, and we undertake no obligation to update or revise any of these statements.

Our earnings release and today's discussion include certain non-GAAP financial measures. Please refer to the reconciliations, which are in the press release and the appendix of the Webex presentation. Our agenda for today's call includes a business overview from Howard, including an update on the impact of COVID-19; followed by a review of the second quarter results from Russ, along with some additional color on how COVID-19 may impact us in the back half of 2020; and then closing remarks from Howard with a Q&A session.

And with that, let me turn the call over to Howard.

Executive
Howard C. Heckes

Thanks, Joanne. Good morning, and welcome, everyone. It's good to be joining you again and while we're still socially distant here in Tampa, I'd like to mention that this is the first time we're hosting an earnings call from our new corporate headquarters located in the Ybor City neighborhood of Tampa. We're proud to be part of this historic area of the city and its revitalization.

Now let's move on to some other good news. I'm pleased to say that despite the impact of COVID-19, we performed exceptionally well in the second quarter of 2020. While net sales decreased 11% year-on-year this included the estimated impact of roughly $100 million of lost revenue from COVID-19 in the quarter. This impact was the result of both weaker end market demand due to the pandemic and our own production capacity. Even on lower sales, we benefited from the continued success of our previously implemented North American pricing strategy.

This, coupled with the benefits of prior restructuring actions and