MRO Magazine

Masonite International Corporation Announces Its Africa Subsidiary Initiates Voluntary Business Rescue


December 22, 2015
By Business Wire News

TAMPA, Fla.

Masonite International Corporation (“Masonite”) (NYSE:DOOR) today announced that the Board of Directors of Masonite (Africa) Limited (“MAL”), a majority owned subsidiary of Masonite, approved of MAL commencing Voluntary Business Rescue proceedings under South African debtor relief laws. The South African Business Rescue laws are designed to provide debtors with the opportunity to restructure their business with the assistance of a professional Business Rescue Practitioner appointed by the company.

The action to file to initiate the business rescue process followed the MAL Board’s evaluation of various strategic alternatives for the business. The MAL Board believes that MAL’s forestry assets have significant value and that this action provides the best opportunity to unlock the value of MAL’s assets for the benefit of its stakeholders in a structured manner.

MAL is publicly listed on the Johannesburg Stock Exchange Limited and 80 percent owned by Masonite. For the twelve months ended September 27, 2015, MAL reported net sales of $54.3 million, or 3.0% of total consolidated net sales of Masonite, and recorded a net loss of $731 thousand over that same time period. MAL currently has no debt aside from normal trade credit.

Masonite does not expect this event to have any impact on its 2015 Adjusted EBITDA.

Forward-looking Statements

This press release contains forward-looking information and other forward-looking statements within the meaning of applicable Canadian and/or U.S. securities laws, including our discussion of the expected impact of Masonite (Africa) Limited entering into voluntary rescue business proceedings. When used in this press release, such forward-looking statements may be identified by the use of such words as “may,” might, “could,” “will,” would,” “should,” “expect,” “believes,” “outlook,” “predict,” “forecast,” “objective,” “remain,” “anticipate,” “estimate,” “potential,” “continue,” “plan,” “project,” “targeting,” or the negative of these terms or other similar terminology.

Forward-looking statements involve significant known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Masonite, or industry results, to be materially different from any future plans, goals, targets, objectives, results, performance or achievements expressed or implied by such forward-looking statements. As a result, such forward-looking statements should not be read as guarantees of future performance or results, should not be unduly relied upon, and will not necessarily be accurate indications of whether or not such results will be achieved. Factors that could cause actual results to differ materially from the results discussed in the forward-looking statements include, but are not limited to, general economic, market and business conditions; levels of residential new construction, residential repair, renovation and remodeling and non-residential building construction activity; competition; our ability to successfully implement our business strategy; our ability to manage our operations including integrating our recent acquisitions and companies or assets we acquire in the future; our ability to generate sufficient cash flows to fund our capital expenditure requirements and to meet our debt service obligations, including our obligations under our senior notes and our senior secured asset-backed credit facility; labor relations (i.e., disruptions, strikes or work stoppages), labor costs, and availability of labor; increases in the costs of raw materials or any shortage in supplies; our ability to keep pace with technological developments; the actions by, and the continued success of, certain key customers; our ability to maintain relationships with certain customers; new contractual commitments; our ability to generate the benefits of our restructuring activities; retention of key management personnel; environmental and other government regulations; limitations on operating our business as a result of covenant restrictions under our existing and future indebtedness, including our senior notes and senior secured asset-based credit facility; and other factors publicly disclosed by the company from time to time.

About Masonite

Masonite International Corporation is a leading global designer and manufacturer of interior and exterior doors for the residential new construction; the residential repair, renovation and remodeling; and the non-residential building construction markets. Since 1925, Masonite has provided its customers with innovative products and superior service at compelling values. Masonite currently serves more than 7,000 customers in 80 countries. Additional information about Masonite can be found at www.masonite.com.

Masonite International Corporation
Joanne Freiberger, 813-739-1808
Vice President and Treasurer
Investorrelations@masonite.com