NEWS RELEASE
Cornerstone Building Brands Announces Fourth-Quarter and Full-Year 2020
Results; Expects Strong Growth in 2021
• Delivered seventh consecutive quarter of year-over-year Adjusted EBITDA margin expansion in all segments
• Improved cost structure by approximately $113 million over prior year, better than expected
• Generated strong 2020 net operating cash flow of $308 million, a 34 percent improvement over prior year
• Strong financial position with liquidity of $1,317 million
• Reduced net debt leverage ratio to 4.9x; 0.4x better than prior year
• Expect strong revenue growth in 2021 from single-family housing outlook
CARY, NC, March 3, 2021 - Cornerstone Building Brands, Inc. (NYSE: CNR) (the "Company"), the largest manufacturer of exterior building products, today reported fourth-quarter 2020 net sales of $1,191.4 million and net income of $1.9 million or one cent per diluted share. This compares with net sales of $1,244.4 million and net income of $1.9 million or two cents per diluted share in the same quarter last year.
Adjusted EBITDA1 for the fourth quarter of 2020 was $158.1 million or 13.3 percent of net sales, an improvement of 40 basis points from the same pro forma period a year ago, with 5 percent fewer ship days. The improvement was primarily due to effective structural cost reductions and better price/mix, partially offset by the impacts from lower non-residential demand. These results represent the seventh consecutive quarter of year-over-year Adjusted EBITDA1 margin expansion for the Company.
"We delivered strong fourth-quarter results, rounding out a year of record performance despite a challenging market environment," said James S. Metcalf, Chairman and Chief Executive Officer. "The resilience of our business model and strength of our dedicated team helped us deliver on our strategic priorities. I am proud of the Cornerstone Building Brands team, which is made up of people from many backgrounds, each unique, and valued as part of our organization."
2020 Full Year Results and Highlights
Net sales for 2020 were $4,617.4 million, 5.6 percent lower than in 2019. The decline was primarily driven by lower end market demand across all segments as a result of the COVID-19 pandemic. Loss from operations was $266.5 million, including a non-cash, pre-tax goodwill impairment accounting adjustment of $503.2 million.
Pro forma net sales1 were $4,625.7 million, a 6.5 percent decrease over prior year. Pro forma Adjusted EBITDA1 for 2020 was $608.7 million or 13.2 percent of pro forma net sales1, an improvement of 2.6 percent or 120 basis points from the same pro forma period a year ago. The improvement was due to structural cost reductions, effective near-term expense management, and strong price/mix, net of inflation partially offset by the impacts from lower demand and shift in product mix as a result of the COVID-19 pandemic.
"Our focus on our customer partnerships, expanding our product offerings and developing innovative solutions, positions us to expand our market leadership as residential markets continue their strong recovery." Metcalf continued. "Moving forward, we will continue to execute on our priorities which include maintaining price discipline, driving operational excellence and investing in growth opportunities to deliver enhanced profitability and value to our stakeholders."
(1) Adjusted and pro forma financial metrics used in this release, including Adjusted EBITDA, are non-GAAP measures. See reconciliations of GAAP results to adjusted results and pro forma results in the accompanying tables. A reconciliation of the forecasted range for the first quarter of 2021 is not included in this release. See "Non-GAAP Financial Measures" below.
Segment Results Versus Prior Year
All segments delivered consecutive margin expansion over the prior year as a result of the quick and effective management of near-term expenses and acceleration of the Company's strategy to permanently improve its highly variable cost structure.
Due to the timing of the Company's fiscal calendar, the fourth quarter of 2020 had three fewer ship days than the fourth quarter of 2019, which was approximately 5 percent less ship days.
• Windows segment net sales for the quarter were $511.6 million, an increase of 3.2 percent from the prior-year quarter. Effective price discipline coupled with volume leverage on higher demand from both distribution and retail channels supporting single family new home construction and repair and remodel were the primary drivers of the increase. Adjusted EBITDA1 was $61.6 million or 12.0 percent of net sales, an improvement of 20 basis points. For the full year, Adjusted EBITDA margin1 improved 140 basis points, while net sales were 2.1 percent lower.
• Siding segment net sales for the quarter were $293.8 million an increase of 4.4 percent versus the pro forma1 fourth-quarter 2019. Adjusted EBITDA1 was $62.1 million or 21.1 percent of net sales, an improvement of 180 basis points. For the full year, pro forma Adjusted EBITDA margin1 improved 220 basis points, while pro forma net sales1 were 1.8 percent lower than in the prior year. Effective price discipline coupled with cost management contributed to the favorable year-over-year variances.
• Commercial segment net sales for the quarter were $386.0 million, a decrease of 19.2 percent from the prior-year quarter. Adjusted EBITDA1 was $61.7 million or 16.0 percent of net sales, an improvement of 20 basis points. For the full year, Adjusted EBITDA margin1 improved 60 basis points, while net sales were 14.2 percent lower. Delays in construction activity and shifts in product mix toward less complex projects because of the impact of the COVID-19 pandemic were more than offset by effective management of price with declining steel costs, and execution of cost savings initiatives.
Balance Sheet and Liquidity
The Company generated strong cash flow in 2020, with cash from operations of $308.4 million, a cash generation improvement of $78.8 million over 2019. Capital expenditures were $81.9 million, with approximately 50 percent invested in innovative product offerings and process automation that are expected to generate profitable growth in the future.
Free cash flow2 of $226.6 million was an increase of 108.8 percent over 2019. The improvement was primarily driven by lower cash interest expenses, net cash tax benefits from the CARES Act and other COVID-19 related government stimulus programs, and reduced capital spend.
During the year, the Company issued $500 million of senior unsecured notes due January 2029 bearing interest at 6.125% per year. The proceeds were used to repay debt under the asset-based revolving credit facility and cash flow revolver, and to pay transaction fees. The transaction improved liquidity, strengthened the Company's financial flexibility, and advanced our deleveraging strategy. The Company ended the year with approximately $674 million of unrestricted cash on hand and $1,317 million of liquidity. Additionally, the net debt leverage ratio1 improved to 4.9x at the end of 2020 compared with 5.3x at the end of 2019.
Outlook
First-Quarter 2021 Guidance
• The first quarter of fiscal 2021 will have three fewer ship days; 64 ship days as compared to 67 ship days in the first quarter of 2020
• The Company expects net sales to be between $1,195 million and $1,240 million as a result of:
◦ Strong single-family housing end-market momentum; expect double digit growth in residential businesses over prior year
◦ Improving non-residential end-markets
• Gross Profit is anticipated to be between $250 million and $265 million.
• Adjusted EBITDA1 is expected to be between $110 million and $125 million based on the following assumption:
◦ Disciplined price leadership to more than offset increasing raw material costs
(1) Adjusted and pro forma financial metrics used in this release, including Adjusted EBITDA, are non-GAAP measures. See reconciliations of GAAP results to adjusted results and pro forma results in the accompanying tables. A reconciliation of the forecasted range for the first quarter of 2021 is not included in this release. See "Non-GAAP Financial Measures" below.
(2) Free cash flow is defined as net cash provided by operating activities less capital expenditures.
Additional Fiscal Year 2021 Guidance
• Cost savings initiatives of approximately $75 million to $80 million
• Return of near-term costs of approximately $20 million to $30 million
• Capital spending is projected to be approximately 2.5% of net sales
• Cash interest expense is expected to be approximately $215 million
• Cash tax rate expected to be approximately 30%
• Expect to improve net debt leverage by 3/4 to one turn
(1) Adjusted and pro forma financial metrics used in this release, including Adjusted EBITDA, are non-GAAP measures. See reconciliations of GAAP results to adjusted results and pro forma results in the accompanying tables. A reconciliation of the forecasted range for the first quarter of 2021 is not included in this release. See "Non-GAAP Financial Measures" below.
(2) Free cash flow is defined as net cash provided by operating activities less capital expenditures.
Conference Call
The Company will host a conference call at 9:00 a.m. EST on Thursday, March 4 to discuss its financial performance with investors and securities analysts. The financial results and supplemental information will be available online at investors.cornerstonebuildingbrands.com.
To register, please use this linkhttp://www.directeventreg.com/registration/event/5127615. After registering, an email confirmation will be sent providing dial-in details and a unique code for entry. Registration is open throughout the live call, however, to ensure you are connected for the entirety, please register a day in advance or at least 10 minutes before the start of the call. Additional call participation options are as follows:
By Webcast: Cornerstone Building Brands 4Q and Full Year 2020 Earnings Call
Date: | Thursday, March 4, 2021 |
Time: | 9:00 a.m. Eastern Standard Time |
Access link: | Visit the Events & Presentations section of the Investors Page on the website at |
investors.cornerstonebuildingbrands.com or access directly athttps://event.on24.com/wcc/r/2947400/F3D9A2AE5F2573255A3FF97E0A1A5760
Replay dial-in will be available through March 18, 2021
Dial-in number: 855-859-2056
Replay code: 5127615
About Cornerstone Building Brands
Cornerstone Building Brands is the largest manufacturer of exterior building products for residential and low-rise non-residential buildings in North America. Headquartered in Cary, North Carolina, the organization serves residential and commercial customers across new construction and repair and remodel markets. As the #1 manufacturer of vinyl windows, vinyl siding, insulated metal panels, metal roofing and wall systems and metal accessories, Cornerstone Building Brands combines an expansive portfolio of strong brands and quality products with a broad multi-channel distribution platform that includes approximately 20,500 employees at manufacturing, distribution and branch office locations throughout North America. At Cornerstone Building Brands, corporate stewardship is a responsibility that is deeply embedded in our 75-year history. We are committed to our purpose of contributing positively to the communities where we live, work and play. For more information, visit us atwww.cornerstonebuildingbrands.com.
Investor Relations
Tina Beskid 1-866-419-0042info@investors.cornerstonebuildingbrands.com
4
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "anticipate," "guidance," "plan," "potential," "expect," "should," "will," "forecast," "target" and similar expressions are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current expectations, assumptions and/ or beliefs concerning future events. As a result, these forward-looking statements rely on a number of assumptions, forecasts, and estimates and, therefore, these forward-looking statements are subject to a number of risks and uncertainties that may cause the Company's actual performance to differ materially from that projected in such statements. Such forward-looking statements may include, but are not limited to, statements concerning our market commentary and performance expectations, including our first quarter 2021 forecasted net sales, gross profit, and Adjusted EBITDA, and our fiscal year 2021 forecasted capital spending, cash interest expense, cash tax rate and other consolidated financial performance guidance. Among the factors that could cause actual results to differ materially include, but are not limited to, industry cyclicality and seasonality and adverse weather conditions, challenging economic conditions affecting the nonresidential construction industry, downturns in the residential new construction and repair and remodeling end markets, or the economy or the availability of consumer credit, volatility in the United States ("U.S.") economy and abroad, generally, and in the credit markets, the severity, duration and spread of the COVID-19 pandemic, as well as actions that may be taken by the Company or governmental authorities to contain COVID-19 or to treat its impact; an impairment of our goodwill and/or intangible assets; our ability to successfully develop new products or improve existing products, the effects of manufacturing or assembly realignments, seasonality of the business and other external factors beyond our control, commodity price volatility and/or limited availability of raw materials, including steel, PVC resin, glass and aluminum, our ability to identify and develop relationships with a sufficient number of qualified suppliers and to avoid a significant interruption in our supply chains, retention and replacement of key personnel, enforcement and obsolescence of our intellectual property rights, costs related to compliance with, violations of or liabilities under environmental, health and safety laws, changes in building codes and standards, competitive activity and pricing pressure in our industry, our ability to make strategic acquisitions accretive to earnings, our ability to carry out our restructuring plans and to fully realize the expected cost savings, global climate change, including legal, regulatory or market responses thereto, breaches of our information system security measures, damage to our computer infrastructure and software systems, necessary maintenance or replacements to our enterprise resource planning technologies, potential personal injury, property damage or product liability claims or other types of litigation, compliance with certain laws related to our international business operations, increases in labor costs, potential labor disputes, union organizing activity and work stoppages at our facilities or the facilities of our suppliers, significant changes in factors and assumptions used to measure certain of our defined benefit plan obligations and the effect of actual investment returns on pension assets, the cost and difficulty associated with integrating and combining acquired businesses, volatility of the Company's stock price, substantial governance and other rights held by our sponsor investors, the effect on our common stock price caused by transactions engaged in by our sponsor investors, our directors or executives, our substantial indebtedness and our ability to incur substantially more indebtedness, limitations that our debt agreements place on our ability to engage in certain business and financial transactions, our ability to obtain financing on acceptable terms, downgrades of our credit ratings, and the effect of increased interest rates on our ability to service our debt. See also the "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020, to be filed with the SEC on the date hereof, and other risks described in documents subsequently filed by the Company from time to time with the SEC, which identify other important factors, though not necessarily all such factors, that could cause future outcomes to differ materially from those set forth in the forward-looking statements. The Company expressly disclaims any obligation to release publicly any updates or revisions to these forward-looking statements, whether as a result of new information, future events, or otherwise.
Non-GAAP Financial Measures
This press release includes certain "non-GAAP financial measures" as defined under the Securities Exchange Act of 1934 and in accordance with Regulation G. Management believes the use of such non-GAAP financial measures assists investors in understanding the ongoing operating performance of the Company by presenting the financial results between periods on a more comparable basis. Such non-GAAP financial measures should not be construed as an alternative to reported results determined in accordance with U.S. GAAP. We have included reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and provided in accordance with U.S. GAAP at the end of this release. A reconciliation of the forecasted range for Adjusted EBITDA for the first quarter of 2021 is not included in this release due to the number of variables in the projected range and because we are currently unable to quantify accurately certain amounts that would be required to be included in the GAAP measure or the individual adjustments for such reconciliation. In addition, we believe such reconciliation would imply a degree of precision that would be confusing or misleading to investors.
CORNERSTONE BUILDING BRANDS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months EndedDecember 31, 2020
Net sales Cost of sales Gross profit
$ 1,191,369 924,169 267,200 22.4 %
December 31, 2019
Year EndedDecember 31, 2020
$ 1,244,415 956,379 288,036 23.1 %
$ 4,617,369 3,567,049 1,050,320 22.7 %
December 31, 2019
$ 4,889,747 3,801,328 1,088,419 22.3 %Selling, general and administrative expenses Intangible asset amortization
142,625
161,493
579,200 627,861
45,447
44,878
180,994 177,577
Restructuring and impairment charges, net Strategic development and acquisition related costs Goodwill impairment
1,956
2,538
34,120 18,060
19,341 50,185
Income (loss) from operations Interest income
5,791 -
13,517 -
(54,872) (56,128)
Interest expense Foreign exchange gain Other income, net
71,381
65,610
357
183
503,171 (266,506)
1,364 (213,610)
- 214,736 674 (229,262)
2,368 494 19,728 17,848 90.5 %
469 1,183
Income (loss) before income taxes Provision for income taxes
970 518
1,068 2,054
11,153 (477,215)
(10,615)
9,223 82.7 %
5,563
(1.2)%
4,775 (45.0)%
Net income (loss)
Net income allocated to participating securities Net income (loss) applicable to common shares
Income (loss) per common share:
Basic
Diluted
Weighted average number of common shares outstanding: Basic
Diluted
Increase (decrease) in sales
Selling, general and administrative expenses percentage of net sales
$ | 1,880 | $ | 1,930 | $ | (482,778) | $ | (15,390) |
(25) | (27) | - | - | ||||
$ | 1,855 | $ | 1,903 | $ | (482,778) | $ | (15,390) |
$ | 0.01 | $ | 0.02 | $ | (3.84) | $ | (0.12) |
$ | 0.01 | $ | 0.02 | $ | (3.84) | $ | (0.12) |
125,271 | 125,722 | 125,562 | 125,576 | ||||
125,310 | 125,761 | 125,562 | 125,576 | ||||
(4.3)% | 116.9 % | (5.6)% | 144.4 % | ||||
12.0 % | 13.0 % | 12.5 % | 12.8 % |
CONSOLIDATED BALANCE SHEETS
(In thousands) (Unaudited)
December 31, 2020
December 31, 2019
ASSETS
Current assets:
$
674,255 $ 98,386
Cash and cash equivalents Restricted cash
6,223 3,921
554,649 491,740
Accounts receivable, net Inventories, net
431,937 439,194
Income taxes receivable
39,379 48,466
Investments in debt and equity securities, at market Prepaid expenses and other
2,333 3,776
77,751 78,516
Assets held for sale
4,644 1,750
Total current assets
1,791,171
1,165,749
631,821 652,841
Property, plant and equipment, net Lease right-of-use assets
264,107 316,155
Goodwill 1,194,729 1,669,594
Intangible assets, net 1,584,604 1,740,700
1,867 7,510
Deferred income taxes Other assets, net
10,191 11,797
Total assets
$
5,478,490
$
5,564,346
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
$
25,600 $
25,600
Current portion of long-term debt Accounts payable
211,441 205,629
81,548 92,130
Accrued compensation and benefits Accrued interest
25,485 19,070
Accrued income taxes
5,060
-
Current portion of lease liabilities Other accrued expenses
70,125 72,428
247,893 233,687
Total current liabilities
667,152 648,544
Long-term debt
3,563,429
3,156,924
269,792 291,987
337,437 287,793
Deferred income taxes Long-term lease liabilities Other long-term liabilities
Total long-term liabilities
198,875 243,780
4,369,533
3,980,484
Common stock
Additional paid-in capital
1,255 1,257,262
1,261 1,248,787
Accumulated deficit (764,685) (281,229)
Accumulated other comprehensive loss, net (51,517) (32,398)Treasury stock, at cost
(510) (1,103)
Total stockholders' equity
441,805
Total liabilities and stockholders' equity
$
5,478,490
$
935,318 5,564,346
CORNERSTONE BUILDING BRANDS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Year EndedDecember 31, 2020
December 31, 2019
Cash flows from operating activities: Net loss
$
(482,778) $
(15,390)
Adjustments to reconcile net loss to net cash from operating activities:
Depreciation and amortization
284,602 263,764
9,589 8,504
Non-cash interest expense Share-based compensation expense
17,056 14,078
- 16,249
Non-cash fair value premium on purchased inventory Goodwill impairment
Asset impairment
Losses (gains) on asset sales, net Provision for doubtful accounts Deferred income taxes
Changes in operating assets and liabilities, net of effect of acquisitions: Accounts receivable
503,171 4,905 (1,252) 5,390
- - 321 2,035
(4,319) (6,085)
(61,976) (38,242)
Inventories
7,927
91,822
Income taxes
14,146 (32,719)
3,415 (10,279)
8,276 (40,403)
Prepaid expenses and other Accounts payable Accrued expenses Other, net
Net cash provided by operating activities Cash flows from investing activities:
4,663 (21,141)
(4,398) (2,906)
308,417
229,608
Acquisitions, net of cash acquired (41,841) (179,184)
Capital expenditures (81,851) (121,085)Proceeds from sale of property, plant and equipment Net cash used in investing activities
3,569 (120,123)
5,511 (294,758)
Cash flows from financing activities:
Proceeds from ABL facility Payments on ABL facility Proceeds from cash flow revolver Payments on cash flow revolver Payments on term loan Proceeds from senior notes Payments of financing costs
Payments related to tax withholding for share-based compensation Purchases of treasury stock
(415,000)
345,000
290,000 (220,000)
115,000
-
(115,000)
(25,620)
- (25,620)
500,000
-
(6,731)
(1,566)
- (1,934)
(6,428)
-
- (24,906)
Payments on tax receivable agreement Net cash provided by financing activities
389,655 17,540
Effect of exchange rate changes on cash and cash equivalents
222 2,310
Net increase (decrease) in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash at beginning of period Cash, cash equivalents and restricted cash at end of period Supplemental disclosure of cash flow information
578,171
(45,300)
102,307 147,607
Interest paid, net of amounts capitalized
$
680,478
$ 196,770
$ 102,307
$ 240,063
Taxes paid (refunded), net (excluding tax receivable agreement payments)
$
(3,316) $ 51,001
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS ADJUSTED NET INCOME PER DILUTED COMMON SHARE AND
NET INCOME (LOSS) COMPARISON
(In thousands, except per share data)
(Unaudited)
Three Months Ended
Year Ended
December 31, | December 31, | December 31, | December 31, |
2020 | 2019 | 2020 | 2019 |
$
0.01 $
(3.84) $ (0.12)
Net income (loss) per diluted common share, GAAP basis Restructuring and impairment charges, net
0.15 0.40
Strategic development and acquisition related costs Non cash gain on foreign currency transactions
0.02 0.05 (0.02)
0.02 $ 0.02 0.11 (0.01)
0.27 0.14
(0.01) (0.02)
Non cash charge of purchase price allocated to inventories Goodwill impairment
Customer inventory buybacks COVID-19
Other, net
0.01 0.04
Tax effect of applicable non-GAAP adjustments(1)
- - - 0.01 - (0.01)
- - - - 0.01 (0.03)
- 0.13
4.01 0.01 0.10
- - -
(1.18) (0.18)
Adjusted net income per diluted common share(2)
$
0.06
$
0.11
$
(0.48) $ 0.39
Three Months Ended
Year EndedDecember 31, 2020
December 31, 2019
December 31, 2020
December 31, 2019
Net income (loss) applicable to common shares, GAAP basis
$
1,855 $
(482,778) $ (15,390)
Restructuring and impairment charges, net
1,956
5,791
19,341 50,185
Strategic development and acquisition related costs Non cash gain on foreign currency transactions
1,903 $ 2,538 13,517
34,120 18,060
(2,368)
(970)
(1,068)
(2,054)
Non cash charge of purchase price allocated to inventories Goodwill impairment
- -
Customer inventory buybacks COVID-19
188
1,874
Other, net
(214)
1,245
4,726
Tax effect of applicable non-GAAP adjustments(1)
(1,879)
- - - - 946 (4,168)
-
503,171
16,249 -
641
12,508
576 -
(148,230)
(22,813)
Adjusted net income applicable to common shares(2)
$
7,203
$
13,766
$
(61,050) $
49,539
(1) The Company calculated the tax effect of non-GAAP adjustments by applying the applicable federal and state statutory tax rate for the period to each applicable non-GAAP item.
(2) The Company discloses a tabular comparison of Adjusted net income (loss) per diluted common share and Adjusted net income (loss) applicable to common shares, which are non-GAAP measures, because they are instrumental in comparing the results from period to period. Adjusted net income (loss) per diluted common share and Adjusted net income (loss) applicable to common shares should not be considered in isolation or as a substitute for net income (loss) per diluted common share and net income (loss) applicable to common shares as reported on the face of our consolidated statements of operations.
Certain amounts in this release have been subject to rounding adjustments. Accordingly, amounts shown as totals may not be the arithmetic aggregation of the individual amounts that comprise or precede them.
CORNERSTONE BUILDING BRANDS, INC.
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
(In thousands)
(Unaudited)
Consolidated
Three Months Ended
December 31, 2020
Net sales
Impact of Environmental Stoneworks and Kleary acquisitions(1)
December 31, 2019
$
1,191,369 -
Year EndedDecember 31, 2020
$
1,244,415 10,561
December 31, 2019
$
4,617,369 8,358
$
4,889,747 59,464
Pro forma net sales
$ 1,191,369
$ 1,254,976
$
4,625,727
$ 4,949,211
Gross profit
$ 267,200 22.4 %
$ 288,036 23.1 %
$
1,050,320 22.7 %
$ 1,088,419 22.3 %
Operating income, GAAP
Restructuring and impairment charges, net Strategic development and acquisition related costs
Non cash charge of purchase price allocated to inventories Goodwill impairment
Customer inventory buybacks COVID-19
Other, net
Adjusted operating income
$
71,381
1,956
5,791 - -
188
1,874
(214)
$
80,976
65,610 2,538 13,517 - - - - 946 82,611
$
(266,506)
34,277 18,060 19,341 50,185 - 16,249
503,171 641 12,508 1,245
$ 214,736
- 576 - 4,726
304,677 304,532
Other income (loss), net Depreciation and amortization Share-based compensation expense
494 72,189 4,488
518 72,279 3,465
469 1,183
284,602 263,764
17,056 14,078
Adjusted EBITDA
$
158,147
$
158,873 $
606,804 $ 583,557
Impact of Environmental Stoneworks and Kleary acquisitions(1)
-
2,638
1,869 9,626
Pro forma Adjusted EBITDA
Pro forma Adjusted EBITDA as a % of pro forma net sales
$
158,147 13.3 %
$
161,511 12.9 %
$
608,673 13.2 %
$
593,183 12.0 %
(1) Reflects the Adjusted EBITDA of Environmental Stoneworks for the period January 1, 2019 to the acquisition date of February 20, 2019 and Kleary Masonry, Inc. for the period January 1, 2019 to March 1, 2020.
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
(In thousands)
(Unaudited)
Windows
Three Months EndedDecember 31, 2020
Year EndedDecember 31, 2019
December 31, 2020
December 31, 2019
Net sales
$
511,586
$
495,868
$ 1,889,625
$ 1,930,447
Gross profit
$
90,367 17.7 %
$
94,243 19.0 %
$ 347,856 18.4 %
$ 353,089 18.3 %
Operating income (loss), GAAP
Restructuring and impairment charges, net Strategic development and acquisition related costs Goodwill impairment
COVID-19
Other, net
Adjusted operating income
$ 29,148
310 - -
921
349
$
30,499
339
2,893 - -
2,905
$ (223,646)
$ 92,538
7,499 1,865 16 19,947
320,990 6,844 601
- - 3,442
30,728
36,636
112,304 117,792
Other income (expense), net Depreciation and amortization
8
(385) 22,134
(107) (838)
30,840
121,519 94,737
Adjusted EBITDA
Adjusted EBITDA as a % of net sales
$
61,576 12.0 %
$
58,385 11.8 %
$
233,716 12.4 %
$
211,691 11.0 %
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
(In thousands)
(Unaudited)
Siding
Three Months Ended
Year Ended
Net sales
$
293,756
$ 270,806
Impact of Environmental Stoneworks and Kleary acquisitions(1)
Pro forma net sales
December 31, | December 31, | December 31, | December 31, |
2020 | 2019 | 2020 | 2019 |
$ 1,141,946 | $ 1,111,407 | ||
8,358 | 59,464 | ||
1,150,304 | 1,170,871 |
- 10,561 293,756 281,367
Gross profit
$
78,405 26.7 %
$ 68,757 25.4 %
$ 308,466 27.0 %
$ 277,583 25.0 %
65
599
2,966 8,761
Operating income (loss), GAAP Restructuring and impairment charges, net Strategic development and acquisition related costs Non-cash charge of purchase price allocated to inventories Goodwill impairment
Customer inventory buybacks COVID-19
$ 30,986
$ 14,927
$
(61,930)
$ 66,273
Other, net
138
(1,458)
(1,213)
Adjusted operating income
2,043 - -
188
14
33,434
-
-
-
-
-
14,068
10,158 -
176,774
641
81
127,477
- 16,249 - 576 - (1,195) 90,664
Other income (expense), net Depreciation and amortization Adjusted EBITDA
(22)
28,669
37,435
264
(32) 113,737
(52) 121,004
62,081
51,767
241,182 211,616
Impact of Environmental Stoneworks and Kleary acquisitions(1)
-
2,638
1,869 9,626
Pro forma Adjusted EBITDA
$
$
$
$
Pro forma Adjusted EBITDA as a % of pro forma net sales
62,081 21.1 %
54,405 19.3 %
243,051 21.1 %
221,242 18.9 %
(1) Reflects the Adjusted EBITDA of Environmental Stoneworks for the period January 1, 2019 to the acquisition date of February 20, 2019 and Kleary Masonry, Inc. for the periods January 1, 2019 to September 28, 2019 and January 1, 2020 to March 1, 2020.
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
(In thousands)
(Unaudited)
Commercial
Three Months Ended
December 31, 2020
Year EndedDecember 31, 2019
December 31, 2020
December 31, 2019
Net sales
$
386,027
$
477,741
$ 1,585,798
$ 1,847,893
Gross profit
$
98,428 25.5 %
$
125,036 26.2 %
$ 393,998 24.8 %
$ 457,747 24.8 %
Operating income, GAAP
$ 49,944
$
58,637
$
159,586
$ 201,073
(157)
823
20,270 2,790
Restructuring and impairment charges, net Strategic development and acquisition related costs Goodwill impairment
COVID-19
Other, net
Adjusted operating income
- -
60
76
4,041 - -
345
(262) 10,534
49,923
63,846
5,407 2,645 1,021 188,667
- - 2,636 217,033
Other income (expense), net Depreciation and amortization
Adjusted EBITDA
243
11,549
Adjusted EBITDA as a % of net sales
(102) 11,591
$
61,715 16.0 %
$
75,335 15.8 %
CORNERSTONE BUILDING BRANDS, INC.
$
234,560 14.8 %
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
(In thousands)
(Unaudited)
680 45,213
Year EndedDecember 31, 2020
Net cash provided by operating activities Less: Capital expenditures
753 44,550
$
262,336 14.2 %
December 31, 2019
Free cash flow
$
226,566
$
$
308,417 (81,851)
$
229,608 (121,085) 108,523
Attachments
- Original document
- Permalink
Disclaimer
Cornerstone Building Brands Inc. published this content on 03 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 March 2021 09:06:02 UTC.