CHARLOTTE, N.C., Aug. 7, 2023
/PRNewswire/ -- JELD-WEN Holding, Inc. (NYSE: JELD) ("JELD-WEN" or
the "Company") today announced results for the three and six months
ended July 1, 2023. Comparability is
to the same period in the prior year and all periods presented
reflect the Company's Australasia segment as a discontinued
operation, unless otherwise noted. The Company is raising its
full-year guidance for continuing operations to reflect its solid
second quarter results.
Second Quarter Highlights
- Net revenues from continuing operations of $1,125.8 million decreased 4.5% in the second
quarter driven by a (4%) decline in Core Revenue. The Core Revenue
decline was driven by (11%) lower volume/mix partially offset by
+7% price realization.
- Net income from continuing operations was $22.5 million or $0.26 per share, compared to net income from
continuing operations of $35.0
million or $0.40 per share
during the same quarter a year ago. Operating income margin was
5.0% and 4.1% for the quarters ended July 1,
2023 and June 25, 2022,
respectively.
- Adjusted EPS from continuing operations was $0.44, compared to Adjusted EPS of $0.45 in the same quarter a year ago. Adjusted
EPS includes net after-tax charges of $15.3
million or $0.18 per share,
compared to net after-tax charges of $4.6
million or $0.05 per share
during the same quarter a year ago.
- Adjusted EBITDA from continuing operations was $108.9 million, compared to $108.3 million during the same quarter a year
ago. Adjusted EBITDA Margin from continuing operations increased by
50 basis points year-over-year to 9.7%.
- On July 2, 2023, the Company
completed the sale of its Australasia segment (previously announced
on April 17, 2023) for approximately
$446 million in net proceeds. On
August 3, 2023, the Company repaid
$450 million of senior notes funded
by the divestiture proceeds.
"In the second quarter, our global associates continued to
execute against our near-term goals of simplifying and
strengthening JELD-WEN while improving profitability and generating
strong cash flow," said Chief Executive Officer William J. Christensen. "While our end markets
remained dynamic with volume declining in line with our
expectations, we achieved year-over-year improvements in both
margin and cash flow. In addition, we remained focused on
delivering on our commitments including closing the sale of our
Australasia business in early July. This important milestone allows
us to focus on our core businesses and strengthen our balance
sheet."
Christensen continued, "For the remainder of 2023, we expect
continued macroeconomic uncertainty and weak demand across our
markets that we are mitigating with ongoing cost reductions. As our
second quarter results were above our expectations, we are
narrowing the ranges and raising the midpoints of our 2023 Revenue
and Adjusted EBITDA guidance."
Second Quarter 2023 Results (Continuing Operations)
Net revenue for the three months ended July 1, 2023 decreased $53.4 million, or 4.5%, to $1,125.8 million, compared to $1,179.2 million for the same period last year.
The decrease in net revenue was driven by a (4%) Core Revenue
decline composed of lower volume/mix (11%) partially offset by
price realization of +7%.
Net income was $22.5 million in
the second quarter, compared to net income of $35.0 million in the same period last year, a
decrease of $12.5
million. Despite an improvement in operating income,
net income was lower due to negative impacts from accelerated
depreciation, higher selling, general and administrative expense
and lower other income. Adjusted Net Income from continuing
operations for the second quarter decreased $1.8 million, to $37.8
million, compared to $39.6
million in the same period last year.
Earnings per share ("EPS") for the second quarter
was $0.26, compared to $0.40 for
the same quarter last year. Adjusted EPS from continuing
operations for the second quarter was $0.44 compared to Adjusted EPS of $0.45 in the same quarter last year.
Adjusted EBITDA from continuing operations increased
$0.6 million, to $108.9 million, compared to the same quarter last
year. Adjusted EBITDA Margin from continuing operations increased
50 basis points to 9.7%, as positive price/cost was partially
offset by lower volume/mix, higher selling, general and
administrative expenses and a reduction in other income.
On a segment basis for the second quarter of 2023, compared to
the same period last year:
- North America - Net
revenue decreased $22.0 million, or
(2.6%), to $817.1 million, driven by
a (2%) decline in Core Revenue which was due to lower volume/mix
(8%) partially offset by increased price realization +6%. Net
income decreased $18.6 million to
$51.3 million. Operating income
margin was 9.1% for the quarter ended July
1, 2023 and 8.4% for the quarter ended June 25, 2022. Adjusted EBITDA from continuing
operations increased $15.3 million to
$108.8 million, while Adjusted EBITDA
Margin from continuing operations increased 220 basis points to
13.3%.
- Europe - Net revenue
decreased $31.3 million, or (9.2%),
to $308.7 million, due to a (9%)
decline in Core Revenue. Core Revenue declined due to lower
volume/mix (17%) partially offset by price realization of +8%. Net
income increased $7.6 million to
$10.7 million. Operating income
margin was 4.9% for the quarter ended July
1, 2023 and 1.7% for the quarter ended June 25, 2022. Adjusted EBITDA from continuing
operations increased $3.9 million to
$23.9 million, while Adjusted EBITDA
Margin from continuing operations increased by 180 basis points to
7.7%.
Cash Flow(1)
Net cash flow provided by operations was $153.4 million during the first half of 2023, a
$319.1 million improvement compared
to net cash flow used in operations of ($165.7) million during the same period a
year ago. The primary driver to the increased operating cash flow
was a $284.3 million improvement in
cash flow from working capital. Net working capital generated
$2.8 million of cash flow in the
first half of 2023 compared to a use of cash of $281.5 million in the prior year period.
Capital expenditures in the first half of 2023 increased
by $12.1 million to $46.9
million, up from $34.8 million
in the first half of 2022.
Free Cash Flow provided in the first half of 2023 was
$106.4 million, compared to Free Cash
Flow used in the first half of 2022 of ($200.5) million. This $306.9 million improvement is primarily due to
higher net cash flow from operations.
(1) Cash flow includes the Australasia segment.
Updated Full Year 2023 Guidance (Continuing
Operations)
JELD-WEN is raising its guidance to reflect the solid second
quarter performance.
The Company now expects 2023 net revenue of $4.2 to $4.4
billion which reflects a low double digit decline in
volume/mix across its portfolio of products and geographies in
North America and Europe. Core Revenues are forecasted to be
down 4% to 8% as price realization partially offsets lower market
demand.
Further, the Company now expects 2023 Adjusted EBITDA from
continuing operations to be within the range of $350 to $370
million driven by lower year-over-year volumes and a
reduction in other income partially offset by solid price/cost
results and ongoing cost reductions.
|
Revenue
|
Adjusted EBITDA
from
continuing operations
|
May 2023
Guidance
|
$4.0B to
$4.4B
|
$330M to
$370M
|
Updated
Guidance
|
$4.2B to
$4.4B
|
$350M to
$370M
|
Although the Company believes the assumptions reflected in the
range of guidance are reasonable, actual results could vary
substantially given the uncertainty regarding the future
performance of the global economy, the continuing conflict in
Ukraine, potential new COVID-19
lockdowns or restrictions, ongoing disruptions in global supply
chains, and potential changes in raw material prices and other
costs as well as other risks and uncertainties, including those
described below. In addition, the guidance ranges provided for 2023
do not include the impact of potential acquisitions or
divestitures, except the divestiture of the Australasia
business.
Conference Call Information
JELD-WEN management will host a conference call on August 8, 2023, at 8 a.m.
ET, to discuss the Company's financial results. Interested
investors and other parties can access the call either via webcast
by visiting the Investor Relations section of the Company's website
at https://investors.jeld-wen.com, or by dialing 888-330-2446 from
the United States or
+1-240-789-2732 internationally and using ID 1285715. A slide
presentation highlighting the Company's results is available on the
Investor Relations section of the Company's website.
For those unable to listen to the live event, a webcast replay
will be available approximately two hours following completion of
the call. To learn more about JELD-WEN, please visit the Company's
website at https://investors.jeld-wen.com.
Note: See "Non-GAAP
Financial Information" section for definitions and reconciliation
of non-GAAP financial measures.
|
About JELD-WEN Holding, Inc.
JELD-WEN is a leading global designer, manufacturer and
distributor of high-performance interior and exterior doors,
windows, and related building products serving the new construction
and repair and remodeling sectors. Headquartered in Charlotte, N.C., the company operates
facilities in 16 countries in North
America and Europe and
employs approximately 18,000 people. Since 1960, the JELD-WEN team
has been committed to making quality products that create safe and
sustainable environments for customers, associates and local
communities. The JELD-WEN family of brands includes JELD-WEN®
worldwide; LaCantina™ and VPI™ in North
America; and Swedoor® and DANA® in Europe. For more information, visit
www.jeld-wen.com.
Investor Relations Contact:
James Armstrong
Vice President, Investor Relations
704-378-5731
jarmstrong@jeldwen.com
Media Contact:
Colleen
Penhall
Vice President, Corporate Communications
980-322-2681
cpenhall@jeldwen.com
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements are generally identified by
the use of forward-looking terminology, including the terms
"anticipate," "believe," "continue," "could," "estimate," "expect,"
"intend," "likely," "may," "plan," "possible," "potential,"
"predict," "project," "should," "target," "will," "would" and, in
each case, their negative or other various or comparable
terminology. All statements other than statements of historical
facts are forward-looking statements, including statements
regarding our business strategies and ability to execute on our
plans, market potential, future financial performance, customer
demand, the potential of our categories, brands and innovations,
the impact of our footprint rationalization and modernization
program, the impact of acquisitions and divestitures on our
business and our ability to maximize value and integrate
operations, our pipeline of productivity projects, the estimated
impact of tax reform on our results, litigation outcomes, and our
expectations, beliefs, plans, objectives, prospects, assumptions,
or other future events, all of which involve risks and
uncertainties that could cause actual results to differ materially.
For a discussion of these risks and uncertainties, please refer to
our Annual Report on Form 10-K for the year ended December 31, 2022, Quarterly Reports on Form 10-Q
filed in 2023 and our other filings with the U.S. Securities and
Exchange Commission.
The forward-looking statements included in this release are made
as of the date hereof, and we undertake no obligation to update any
forward-looking statements, except as required by law.
Non-GAAP Financial Information
This press release presents certain "non-GAAP" financial
measures, including Adjusted EBITDA from continuing operations,
Adjusted EBITDA Margin from continuing operations, Adjusted Net
Income from continuing operations, Adjusted EPS from continuing
operations, Free Cash Flow, and Net Debt Leverage. The components
of these non-GAAP measures are computed by using amounts that are
determined in accordance with accounting principles generally
accepted in the United States of
America ("GAAP"). A reconciliation of non-GAAP financial
measures used in this press release to their nearest comparable
GAAP financial measures is included in the tables at the end of
this press release. The Company provides certain guidance solely on
a non-GAAP basis because the Company cannot predict certain
elements that are included in certain reported GAAP results. While
management is not able to provide a reconciliation of items for
forward-looking non-GAAP measures without unreasonable effort,
management bases the estimated ranges of non-GAAP measures for
future periods on its reasonable estimates of certain items such as
assumed effective tax rate, assumed interest expense, and other
assumptions about capital requirements for future periods. The
variability of these items may have a significant impact on our
future GAAP results.
Other companies may compute these measures differently. The
non-U.S. GAAP information has limitations as an analytical tool and
should not be considered in isolation from or as a substitute
for U.S. GAAP information. It does not purport to represent any
similarly titled U.S. GAAP information and is not an indicator of
our performance under U.S. GAAP.
We use Adjusted EBITDA from continuing operations, Adjusted
EBITDA Margin from continuing operations, Adjusted Net Income from
continuing operations, and Adjusted EPS because we believe they
assist investors and analysts in comparing our operating
performance across reporting periods on a consistent basis by
excluding items that we do not believe are indicative of our core
operating performance. Management believes Adjusted EBITDA from
continuing operations and Adjusted EBITDA Margin from continuing
operations are helpful in highlighting trends because they exclude
certain items outside the control of management, while other
measures can differ significantly depending on long-term strategic
decisions regarding capital structure, the tax jurisdictions in
which we operate, and capital investments. We use Adjusted EBITDA
from continuing operations and Adjusted EBITDA Margin from
continuing operations to measure our financial performance in
reporting our results to our Board of Directors. Further, our
executive incentive compensation is based in part on Adjusted
EBITDA from continuing operations. Adjusted EBITDA from continuing
operations should not be considered as an alternative to net income
as a measure of financial performance or to cash flows from
operations as a liquidity measure.
We define Adjusted EBITDA from continuing operations as income
(loss) from continuing operations, net of tax, adjusted for the
following items: income tax expense (benefit); depreciation and
amortization; interest expense, net; and certain special items
consisting of non-recurring legal and professional expenses and
settlements; restructuring and asset related charges; facility
closure, consolidation, and other related costs and adjustments;
M&A related costs; share-based compensation expense; non-cash
foreign exchange transaction/translation (income) loss; and other
special items.
Adjusted Net Income from continuing operations represents net
income from continuing operations adjusted for the after-tax impact
of certain special items used to calculate Adjusted EBITDA from
continuing operations as described above. Where applicable, the
specifically identified items are tax effected at the applicable
jurisdictional tax rate and tax expense is adjusted to remove the
effect of discrete tax items.
Adjusted EPS from continuing operations represents net income
from continuing operations per diluted share adjusted to exclude
the estimated per share impact of the same specifically identified
items used to calculate Adjusted Net Income from continuing
operations as described above.
Adjusted EBITDA Margin from continuing operations represents
Adjusted EBITDA from continuing operations as a percentage of net
revenues.
We present several financial metrics in "Core" terms, which
exclude the impact of foreign exchange, acquisitions and
divestitures completed in the last twelve months. We define Core
Revenue as net revenue excluding the impact of foreign exchange,
and acquisitions and divestitures completed in the last twelve
months. The use of "Core" metrics assists management, investors,
and analysts in understanding the organic performance of the
operations.
We present Free Cash Flow because we believe this metric assists
investors and analysts in determining the quality of our earnings.
Free Cash Flow is defined as net cash (used in) provided by
operating activities less capital expenditures (including purchases
of intangible assets). Free Cash Flow should not be considered
alternatives to net cash (used in) provided by operating activities
as a liquidity measure. We also present Net Debt Leverage because
it is a key financial metric that is used by management to assess
the balance sheet risk of the Company. We define Net Debt Leverage
as Net Debt (total principal debt outstanding less unrestricted
cash) divided by Adjusted EBITDA from continuing operations for the
last twelve month period.
Due to rounding, numbers presented throughout this release may
not sum precisely to the totals provided and percentages may not
precisely reflect the absolute figures.
JELD-WEN Holding,
Inc.
Consolidated
Statements of Operations (Unaudited)
(In millions, except
share and per share data)
|
|
|
|
Three Months
Ended
|
|
|
|
|
July 1,
2023
|
|
June 25,
2022
|
|
% Variance
|
Net
revenues
|
|
$
1,125.8
|
|
$
1,179.2
|
|
(4.5) %
|
Cost of
sales
|
|
900.2
|
|
972.5
|
|
(7.4) %
|
Gross margin
|
|
225.6
|
|
206.6
|
|
9.2 %
|
Selling, general and
administrative
|
|
162.5
|
|
152.4
|
|
6.6 %
|
Restructuring and
asset related charges
|
|
6.8
|
|
5.3
|
|
29.4 %
|
Operating
income
|
|
56.3
|
|
48.9
|
|
15.0 %
|
Interest expense,
net
|
|
20.9
|
|
20.2
|
|
3.3 %
|
Other expense
(income), net
|
|
2.2
|
|
(17.1)
|
|
(112.6) %
|
Income from continuing
operations before taxes
|
|
33.3
|
|
45.8
|
|
(27.4) %
|
Income tax
expense
|
|
10.8
|
|
10.9
|
|
(0.9) %
|
Income from continuing
operations, net of tax
|
|
22.5
|
|
35.0
|
|
(35.6) %
|
Income from
discontinued operations, net of tax
|
|
15.8
|
|
10.9
|
|
45.2 %
|
Net income
|
|
$
38.3
|
|
$
45.8
|
|
(16.5) %
|
Diluted Net income per
share from continuing operations
|
|
$
0.26
|
|
$
0.40
|
|
|
Diluted Net income per
share from discontinued operations
|
|
0.18
|
|
0.12
|
|
|
Diluted Net income per
share
|
|
$
0.45
|
|
$
0.52
|
|
|
Diluted
Shares
|
|
85,764,785
|
|
87,967,049
|
|
|
Other financial
data:
|
|
|
|
|
|
|
Operating income
margin
|
|
5.0 %
|
|
4.1 %
|
|
|
Adjusted EBITDA from
continuing operations (1)
|
|
$
108.9
|
|
$
108.3
|
|
0.5 %
|
Adjusted EBITDA Margin
from continuing operations (1)
|
|
9.7 %
|
|
9.2 %
|
|
|
|
|
(1)
|
Adjusted EBITDA from
continuing operations and Adjusted EBITDA Margin from continuing
operations are financial measures that are not calculated in
accordance with GAAP. For a discussion of our presentation of
Adjusted EBITDA from continuing operations and Adjusted EBITDA
Margin from continuing operations, see above under the heading
"Non-GAAP Financial Information."
|
JELD-WEN Holding,
Inc.
Consolidated
Statements of Operations (Unaudited)
(In millions, except
share and per share data)
|
|
|
|
Six Months
Ended
|
|
|
|
|
July 1,
2023
|
|
June 25,
2022
|
|
% Variance
|
Net
revenues
|
|
$
2,206.3
|
|
$
2,224.8
|
|
(0.8) %
|
Cost of
sales
|
|
1,788.9
|
|
1,846.5
|
|
(3.1) %
|
Gross margin
|
|
417.3
|
|
378.3
|
|
10.3 %
|
Selling, general and
administrative
|
|
315.2
|
|
320.0
|
|
(1.5) %
|
Restructuring and
asset related charges, net
|
|
16.1
|
|
5.2
|
|
206.6 %
|
Operating
income
|
|
86.0
|
|
53.0
|
|
62.3 %
|
Interest expense,
net
|
|
42.3
|
|
38.5
|
|
9.9 %
|
Other income,
net
|
|
(1.5)
|
|
(26.2)
|
|
(94.2) %
|
Income from continuing
operations before taxes
|
|
45.2
|
|
40.6
|
|
11.3 %
|
Income tax
expense
|
|
14.2
|
|
9.2
|
|
54.0 %
|
Income from continuing
operations, net of tax
|
|
31.0
|
|
31.4
|
|
(1.3) %
|
Income from
discontinued operations, net of tax
|
|
22.4
|
|
13.9
|
|
61.3 %
|
Net income
|
|
$
53.4
|
|
$
45.3
|
|
17.9 %
|
Diluted Net income per
share from continuing operations
|
|
$
0.36
|
|
$
0.35
|
|
|
Diluted Net income per
share from discontinued operations
|
|
0.26
|
|
0.16
|
|
|
Diluted Net income per
share
|
|
$
0.63
|
|
$
0.51
|
|
|
Diluted
Shares
|
|
85,417,344
|
|
89,557,956
|
|
|
Other financial
data:
|
|
|
|
|
|
|
Operating income
margin
|
|
3.9 %
|
|
2.4 %
|
|
|
Adjusted EBITDA from
continuing operations(1)
|
|
$
188.2
|
|
$
176.3
|
|
6.7 %
|
Adjusted EBITDA Margin
from continuing operations (1)
|
|
8.5 %
|
|
7.9 %
|
|
|
|
|
(1)
|
Adjusted EBITDA from
continuing operations and Adjusted EBITDA Margin from continuing
operations are financial measures that are not calculated in
accordance with GAAP. For a discussion of our presentation of
Adjusted EBITDA from continuing operations and Adjusted EBITDA
Margin from continuing operations, see above under the heading
"Non-GAAP Financial Information."
|
JELD-WEN Holding,
Inc.
Consolidated Balance
Sheets (Unaudited)
(In millions, except
share and per share data)
|
|
|
July 1,
2023
|
|
December 31,
2022
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
188.9
|
|
$
164.5
|
Restricted
cash
|
0.6
|
|
1.5
|
Accounts receivable,
net
|
596.3
|
|
531.2
|
Inventories
|
547.8
|
|
594.5
|
Other current
assets
|
65.0
|
|
73.5
|
Assets held for
sale
|
132.9
|
|
125.7
|
Current assets of
discontinued operations
|
230.7
|
|
204.7
|
Total current
assets
|
1,762.2
|
|
1,695.6
|
Property and
equipment, net
|
628.9
|
|
642.0
|
Deferred tax
assets
|
182.7
|
|
182.2
|
Goodwill
|
383.7
|
|
382.0
|
Intangible assets,
net
|
140.2
|
|
148.1
|
Operating lease
assets, net
|
126.5
|
|
129.0
|
Other
assets
|
29.0
|
|
25.8
|
Non-current assets of
discontinued operations
|
292.7
|
|
296.8
|
Total
assets
|
$
3,545.8
|
|
$
3,501.4
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
313.5
|
|
$
287.0
|
Accrued payroll and
benefits
|
136.3
|
|
107.0
|
Accrued expenses and
other current liabilities
|
242.6
|
|
247.9
|
Current maturities of
long-term debt
|
47.3
|
|
34.1
|
Liabilities held for
sale
|
7.6
|
|
6.0
|
Current liabilities of
discontinued operations
|
109.9
|
|
104.6
|
Total current
liabilities
|
857.2
|
|
786.6
|
Long-term
debt
|
1,638.7
|
|
1,712.8
|
Unfunded pension
liability
|
34.3
|
|
31.1
|
Operating lease
liability
|
101.3
|
|
105.1
|
Deferred credits and
other liabilities
|
89.5
|
|
95.9
|
Deferred tax
liabilities
|
7.8
|
|
7.9
|
Non-current
liabilities of discontinued operations
|
34.7
|
|
38.4
|
Total
liabilities
|
2,763.5
|
|
2,777.8
|
Shareholders'
equity
|
|
|
|
Preferred Stock, par
value $0.01 per share, 90,000,000 shares authorized; no
shares issued and outstanding
|
—
|
|
—
|
Common Stock:
900,000,000 shares authorized, par value $0.01 per share,
85,048,937 and 84,347,712 shares issued and outstanding as of July
1, 2023 and
December 31, 2022, respectively.
|
0.9
|
|
0.8
|
Additional paid-in
capital
|
743.3
|
|
734.9
|
Retained
earnings
|
183.9
|
|
130.5
|
Accumulated other
comprehensive loss
|
(145.7)
|
|
(142.6)
|
Total shareholders'
equity
|
782.4
|
|
723.5
|
Total liabilities and
shareholders' equity
|
$
3,545.8
|
|
$
3,501.4
|
JELD-WEN Holding,
Inc.
Consolidated
Statements of Cash Flows (Unaudited)
(In
millions)
|
|
|
|
Six Months
Ended
|
|
|
July 1,
2023
|
|
June 25,
2022
|
OPERATING
ACTIVITIES
|
|
|
|
|
Net income
|
|
$
53.4
|
|
$
45.3
|
Adjustments to
reconcile net income to cash provided by (used in) operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
71.8
|
|
65.1
|
Deferred income
taxes
|
|
(0.9)
|
|
(2.2)
|
Net loss on
disposition of assets
|
|
0.1
|
|
0.2
|
Adjustment to carrying
value of assets
|
|
3.2
|
|
0.5
|
Amortization of
deferred financing costs
|
|
1.6
|
|
1.5
|
Stock-based
compensation
|
|
9.7
|
|
11.3
|
Amortization of U.S.
pension expense
|
|
0.3
|
|
0.7
|
Recovery of cost from
interest received on impaired notes
|
|
(1.7)
|
|
(13.4)
|
Other items,
net
|
|
(8.0)
|
|
27.2
|
Net change in
operating assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
|
(75.9)
|
|
(170.1)
|
Inventories
|
|
50.1
|
|
(126.9)
|
Other
assets
|
|
6.7
|
|
(32.2)
|
Accounts payable and
accrued expenses
|
|
44.5
|
|
37.6
|
Change in short term
and long-term tax liabilities
|
|
(1.4)
|
|
(10.3)
|
Net cash provided by
(used in) operating activities
|
|
153.4
|
|
(165.7)
|
INVESTING
ACTIVITIES
|
|
|
|
|
Purchases of property
and equipment
|
|
(42.0)
|
|
(31.5)
|
Proceeds from sale of
property and equipment
|
|
0.4
|
|
0.2
|
Purchase of intangible
assets
|
|
(5.0)
|
|
(3.3)
|
Recovery of cost from
interest received on impaired notes
|
|
1.7
|
|
13.4
|
Cash received for
notes receivable
|
|
0.1
|
|
0.1
|
Cash received from
insurance proceeds
|
|
3.2
|
|
—
|
Change in securities
for deferred compensation plan
|
|
(0.7)
|
|
(0.2)
|
Net cash used in
investing activities
|
|
(42.2)
|
|
(21.4)
|
FINANCING
ACTIVITIES
|
|
|
|
|
Change in long-term
debt
|
|
(70.3)
|
|
186.6
|
Common stock issued
for exercise of options
|
|
0.1
|
|
2.0
|
Common stock
repurchased
|
|
—
|
|
(105.2)
|
Payments to tax
authorities for employee share-based compensation
|
|
(0.6)
|
|
(2.4)
|
Net cash (used in)
provided by financing activities
|
|
(70.8)
|
|
81.1
|
Effect of foreign
currency exchange rates on cash
|
|
2.2
|
|
(17.0)
|
Net increase (decrease)
in cash and cash equivalents
|
|
42.6
|
|
(123.0)
|
Cash, cash equivalents
and restricted cash, beginning
|
|
220.9
|
|
396.9
|
Cash, cash equivalents
and restricted cash, ending
|
|
$
263.4
|
|
$
273.9
|
Balances included in
the Consolidated Balance Sheets:
|
|
|
|
|
Cash, cash
equivalents, and restricted cash
|
|
$
189.6
|
|
$
243.2
|
Cash and cash
equivalents included in current assets of discontinued
operations
|
|
73.9
|
|
30.7
|
Cash and cash
equivalents at end of period
|
|
$
263.4
|
|
$
273.9
|
JELD-WEN Holding,
Inc.
Reconciliation of
Non-GAAP Financial Measures (Unaudited)
(In
millions)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
July 1,
2023
|
|
June 25,
2022
|
|
July 1,
2023
|
|
June 25,
2022
|
Income from continuing
operations, net of tax
|
$
22.5
|
|
$
35.0
|
|
$
31.0
|
|
$
31.4
|
Income tax
expense
|
10.8
|
|
10.9
|
|
14.2
|
|
9.2
|
Depreciation and
amortization(1)
|
38.2
|
|
27.6
|
|
66.6
|
|
55.3
|
Interest expense,
net
|
20.9
|
|
20.2
|
|
42.3
|
|
38.5
|
Special
items:
|
|
|
|
|
|
|
|
Legal and professional
expenses and settlements(2)
|
4.4
|
|
0.7
|
|
6.2
|
|
2.5
|
Restructuring and
asset related charges(3)
|
6.8
|
|
5.3
|
|
16.1
|
|
5.2
|
Facility closure,
consolidation, and other related costs and
adjustments(4)
|
1.3
|
|
5.1
|
|
2.6
|
|
5.2
|
M&A related
costs(5)
|
1.3
|
|
2.5
|
|
4.0
|
|
5.8
|
Share-based
compensation expense(6)
|
4.7
|
|
1.3
|
|
8.9
|
|
10.5
|
Non-cash foreign
exchange transaction/translation loss
(income)(7)
|
0.4
|
|
3.1
|
|
(1.2)
|
|
7.0
|
Other special items
(8)
|
(2.4)
|
|
(3.3)
|
|
(2.5)
|
|
5.6
|
Adjusted EBITDA from
continuing operations
|
$
108.9
|
|
$
108.3
|
|
$
188.2
|
|
$
176.3
|
|
|
(1)
|
Depreciation and
amortization expense in the three and six months ended July 1, 2023
includes accelerated depreciation of $9.1 million in North America
from reviews of equipment capacity optimization.
|
(2)
|
Legal and professional
expenses and settlements primarily related to litigation and
transformation initiatives.
|
(3)
|
Represents severance,
accelerated depreciation charges, and other expenses directly
incurred as a result of restructuring events, including equipment
relocation expenses. Restructuring charges related to closure of
Atlanta facility in the three and six months ended July 31, 2023
were $5.2 million and $13.3 million, respectively.
|
(4)
|
Facility closure,
consolidation, and other related costs and adjustments primarily
related to winding down certain facilities scheduled to close in
2023 as well as certain facilities closed in 2022.
|
(5)
|
M&A related costs
consists primarily of legal and professional expenses related to
the potential disposition of Towanda.
|
(6)
|
Represents non-cash
equity-based compensation expense related to the issuance of
share-based awards.
|
(7)
|
Non-cash foreign
exchange transaction/translation loss (income) primarily consists
of losses (gains) associated with fair value adjustments of foreign
currency derivatives and revaluation of intercompany
balances.
|
(8)
|
Other special items not
core to ongoing business activity include: (i) in the three
months ended July 1, 2023 ($2.8) million in compensation and
non-income taxes associated with exercises of legacy equity awards;
(ii) in the three months ended June 25, 2022 (1)
($4.4) million in adjustments related to fire damage and
downtime at one of our facilities in North America, and (2)
$1.0 million unrealized mark-to-market losses from commodity
derivatives; (iii) in the six months ended July 1, 2023
($2.8) million in compensation and non-income taxes associated
with exercises of legacy equity awards; and (iv) in the six months
ended June 25, 2022 (1) $2.4 million in expenses related to
fire damage and downtime at one of our facilities in North America,
(2) $1.9 million compensation and non-income taxes associated
with exercises of legacy equity awards, and (3) $1.0 million
unrealized mark-to-market losses from commodity
derivatives.
|
|
To conform with current
period presentation, certain amounts in prior period information
have been reclassified.
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
(amounts in
millions, except share and per share data)
|
|
July 1,
2023
|
|
June 25,
2022
|
|
July 1,
2023
|
|
June 25,
2022
|
Income from continuing
operations, net of tax
|
|
$
22.5
|
|
$
35.0
|
|
$
31.0
|
|
$
31.4
|
Special
items:(1)
|
|
|
|
|
|
|
|
|
Legal and professional
expenses and settlements
|
|
4.4
|
|
0.7
|
|
6.2
|
|
2.5
|
Restructuring and
asset related charges
|
|
6.8
|
|
5.3
|
|
16.1
|
|
5.2
|
Facility closure,
consolidation, and other related costs
and adjustments
|
|
1.3
|
|
5.1
|
|
2.6
|
|
5.2
|
M&A related
costs
|
|
1.3
|
|
2.5
|
|
4.0
|
|
5.8
|
Share-based
compensation expense
|
|
4.7
|
|
1.3
|
|
8.9
|
|
10.5
|
Non-cash foreign
exchange transactions/translation loss
(income)
|
|
0.4
|
|
3.1
|
|
(1.2)
|
|
7.0
|
Other special
items
|
|
(2.4)
|
|
(3.3)
|
|
(2.5)
|
|
5.6
|
Tax impact of special
items(2)
|
|
(3.4)
|
|
(3.7)
|
|
(8.8)
|
|
(11.6)
|
Tax special
items
|
|
2.1
|
|
(6.4)
|
|
3.2
|
|
(6.4)
|
Adjusted Net
Income from continuing operations
|
|
$
37.8
|
|
$
39.6
|
|
$
59.4
|
|
$
55.2
|
|
|
|
|
|
|
|
|
|
Diluted income
per share from continuing operations
|
|
$
0.26
|
|
$
0.40
|
|
$
0.36
|
|
$
0.35
|
Special
items:(1)
|
|
|
|
|
|
|
|
|
Legal and professional
expenses and settlements
|
|
0.05
|
|
0.01
|
|
0.07
|
|
0.03
|
Restructuring and
asset related charges
|
|
0.08
|
|
0.06
|
|
0.19
|
|
0.06
|
Facility closure,
consolidation, and other related costs
and adjustments
|
|
0.01
|
|
0.06
|
|
0.03
|
|
0.06
|
M&A related
costs
|
|
0.01
|
|
0.03
|
|
0.05
|
|
0.06
|
Share-based
compensation expense
|
|
0.06
|
|
0.02
|
|
0.10
|
|
0.12
|
Non-cash foreign
exchange transactions/translation loss
(income)
|
|
0.01
|
|
0.03
|
|
(0.01)
|
|
0.08
|
Other special
items
|
|
(0.03)
|
|
(0.04)
|
|
(0.03)
|
|
0.06
|
Tax impact of special
items (2)
|
|
(0.04)
|
|
(0.04)
|
|
(0.10)
|
|
(0.13)
|
Tax special
items
|
|
0.02
|
|
(0.07)
|
|
0.04
|
|
(0.07)
|
Adjusted Net
Income per share from continuing operations
|
|
$
0.44
|
|
$
0.45
|
|
$
0.70
|
|
$
0.62
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares used in adjusted EPS
calculation represent the fully dilutive shares for the three
and six months ended July 1, 2023 and June 25, 2022,
respectively.
|
|
85,764,785
|
|
87,967,049
|
|
85,417,344
|
|
89,557,956
|
|
Adjusted net income
from continuing operations per share may not sum due to
rounding.
|
|
|
(1)
|
Refer to the
calculation of Adjusted EBITDA from continuing operations for the
definitions of the Special items listed above.
|
(2)
|
Except as otherwise
noted, adjustments to net income and net income per share are
tax-effected at the jurisdictional statutory tax rate.
|
|
To conform with current
period presentation, certain amounts in prior period information
have been reclassified.
|
|
|
Three Months Ended
July 1, 2023
|
(amounts in
millions)
|
|
North
America
|
|
Europe
|
|
Total
Operating
Segments
|
|
Corporate
and
Unallocated
Costs
|
|
Total
Consolidated
|
Income (loss) from
continuing operations, net of tax
|
|
$
51.3
|
|
$
10.7
|
|
$
61.9
|
|
$
(39.4)
|
|
$
22.5
|
Income tax expense
(benefit)
|
|
21.1
|
|
3.1
|
|
24.2
|
|
(13.5)
|
|
10.8
|
Depreciation and
amortization(1)
|
|
27.7
|
|
7.5
|
|
35.2
|
|
3.0
|
|
38.2
|
Interest expense,
net
|
|
0.8
|
|
0.4
|
|
1.2
|
|
19.7
|
|
20.9
|
Special
items:(1)
|
|
|
|
|
|
|
|
|
|
|
Legal and professional
expenses and settlements
|
|
—
|
|
2.4
|
|
2.4
|
|
2.0
|
|
4.4
|
Restructuring charges
and asset related charges
|
|
5.7
|
|
0.5
|
|
6.2
|
|
0.6
|
|
6.8
|
Facility closure,
consolidation, and other related costs and adjustments
|
|
—
|
|
1.3
|
|
1.3
|
|
—
|
|
1.3
|
M&A related
costs
|
|
0.3
|
|
—
|
|
0.3
|
|
0.9
|
|
1.3
|
Share-based
compensation expense
|
|
1.5
|
|
0.5
|
|
2.0
|
|
2.8
|
|
4.7
|
Non-cash foreign
exchange transaction/translation (income) loss
|
|
(0.1)
|
|
0.6
|
|
0.4
|
|
—
|
|
0.4
|
Other special
items
|
|
0.6
|
|
(3.0)
|
|
(2.4)
|
|
—
|
|
(2.4)
|
Adjusted EBITDA from
continuing operations
|
|
$
108.8
|
|
$
23.9
|
|
$
132.7
|
|
$
(23.8)
|
|
$
108.9
|
|
(1) Refer to the
calculation of Adjusted EBITDA from continuing operations for the
definitions of the Special items listed above.
|
|
|
Three Months Ended
June 25, 2022
|
(amounts in
millions)
|
|
North
America
|
|
Europe
|
|
Total
Operating
Segments
|
|
Corporate
and
Unallocated
Costs
|
|
Total
Consolidated
|
Income (loss) from
continuing operations, net of tax
|
|
$
69.8
|
|
$
3.1
|
|
$
73.0
|
|
$
(38.0)
|
|
$
35.0
|
Income tax
expense(1)
|
|
2.0
|
|
3.1
|
|
5.1
|
|
5.7
|
|
10.9
|
Depreciation and
amortization
|
|
16.9
|
|
7.6
|
|
24.5
|
|
3.2
|
|
27.6
|
Interest expense,
net
|
|
0.8
|
|
2.1
|
|
2.8
|
|
17.4
|
|
20.2
|
Special
items:(2)
|
|
|
|
|
|
|
|
|
|
|
Legal and professional
expenses and settlements
|
|
—
|
|
—
|
|
—
|
|
0.7
|
|
0.7
|
Restructuring charges
and asset-related charges
|
|
4.8
|
|
0.5
|
|
5.3
|
|
—
|
|
5.3
|
Facility closure,
consolidation, and other related costs and adjustments
|
|
—
|
|
5.1
|
|
5.1
|
|
—
|
|
5.1
|
M&A related
costs
|
|
0.1
|
|
—
|
|
0.1
|
|
2.4
|
|
2.5
|
Share-based
compensation expense
|
|
—
|
|
0.4
|
|
0.5
|
|
0.9
|
|
1.3
|
Non-cash foreign
exchange transaction/translation loss (income)
|
|
0.1
|
|
(0.6)
|
|
(0.5)
|
|
3.5
|
|
3.1
|
Other special
items
|
|
(1.0)
|
|
(1.4)
|
|
(2.4)
|
|
(0.9)
|
|
(3.3)
|
Adjusted EBITDA from
continuing operations
|
|
$
93.5
|
|
$
20.0
|
|
$
113.5
|
|
$
(5.2)
|
|
$
108.3
|
|
|
(1)
|
Income tax expense in
Corporate and unallocated costs includes the tax impact of US
Operations.
|
(2)
|
Refer to the
calculation of Adjusted EBITDA from continuing operations for the
definitions of the Special items listed above.
|
|
To conform with current
period presentation, certain amounts in prior period information
have been reclassified.
|
|
|
Six Months Ended
July 1, 2023
|
(amounts in
millions)
|
|
North
America
|
|
Europe
|
|
Total
Operating
Segments
|
|
Corporate
and
Unallocated
Costs
|
|
Total
Consolidated
|
Income (loss) from
continuing operations, net of tax
|
|
$
86.5
|
|
$
18.0
|
|
$
104.5
|
|
$
(73.5)
|
|
$
31.0
|
Income tax expense
(benefit)
|
|
35.7
|
|
4.5
|
|
40.2
|
|
(25.9)
|
|
14.2
|
Depreciation and
amortization
|
|
45.5
|
|
14.9
|
|
60.4
|
|
6.1
|
|
66.6
|
Interest expense,
net
|
|
3.6
|
|
0.5
|
|
4.1
|
|
38.2
|
|
42.3
|
Special
items:(1)
|
|
|
|
|
|
|
|
|
|
|
Legal and professional
expenses and settlements
|
|
—
|
|
2.5
|
|
2.5
|
|
3.8
|
|
6.2
|
Restructuring charges
and asset-related charges
|
|
13.5
|
|
1.8
|
|
15.3
|
|
0.8
|
|
16.1
|
Facility closure,
consolidation, and other related costs and adjustments
|
|
—
|
|
2.6
|
|
2.6
|
|
—
|
|
2.6
|
M&A related
costs
|
|
0.6
|
|
—
|
|
0.6
|
|
3.4
|
|
4.0
|
Share-based
compensation expense
|
|
2.5
|
|
1.0
|
|
3.4
|
|
5.4
|
|
8.9
|
Non-cash foreign
exchange transaction/translation (income) loss
|
|
(0.3)
|
|
(1.2)
|
|
(1.5)
|
|
0.3
|
|
(1.2)
|
Other special
items
|
|
0.6
|
|
(3.1)
|
|
(2.6)
|
|
0.1
|
|
(2.5)
|
Adjusted EBITDA from
continuing operations
|
|
$
188.0
|
|
$
41.5
|
|
$
229.5
|
|
$
(41.3)
|
|
$
188.2
|
|
(1) Refer
to the calculation of Adjusted EBITDA from continuing operations
for the definitions of the Special items listed above.
|
|
|
Six Months Ended
June 25, 2022
|
(amounts in
millions)
|
|
North
America
|
|
Europe
|
|
Total
Operating
Segments
|
|
Corporate
and
Unallocated
Costs
|
|
Total
Consolidated
|
Income (loss) from
continuing operations, net of tax
|
|
$
107.9
|
|
$
2.5
|
|
$
110.4
|
|
$
(79.0)
|
|
$
31.4
|
Income tax
expense(1)
|
|
3.0
|
|
4.5
|
|
7.5
|
|
1.7
|
|
9.2
|
Depreciation and
amortization
|
|
33.5
|
|
15.5
|
|
49.0
|
|
6.3
|
|
55.3
|
Interest expense,
net
|
|
1.9
|
|
3.9
|
|
5.8
|
|
32.7
|
|
38.5
|
Special
items:(2)
|
|
|
|
|
|
|
|
|
|
|
Legal and professional
expenses and settlements
|
|
—
|
|
—
|
|
—
|
|
2.5
|
|
2.5
|
Restructuring charges
and asset-related charges
|
|
4.8
|
|
0.5
|
|
5.3
|
|
—
|
|
5.2
|
Facility closure,
consolidation, and other related costs and adjustments
|
|
—
|
|
5.2
|
|
5.2
|
|
—
|
|
5.2
|
M&A related
costs
|
|
0.3
|
|
—
|
|
0.3
|
|
5.5
|
|
5.8
|
Share-based
compensation expense
|
|
2.1
|
|
1.3
|
|
3.4
|
|
7.2
|
|
10.5
|
Non-cash foreign
exchange transaction/translation loss (income)
|
|
0.4
|
|
(4.2)
|
|
(3.8)
|
|
10.8
|
|
7.0
|
Other special
items
|
|
6.7
|
|
5.5
|
|
12.2
|
|
(6.6)
|
|
5.6
|
Adjusted EBITDA from
continuing operations
|
|
$
160.6
|
|
$
34.7
|
|
$
195.3
|
|
$
(19.0)
|
|
$
176.3
|
|
|
(1)
|
Income tax expense in
Corporate and unallocated costs includes the tax impact of US
Operations.
|
(2)
|
Refer to the
calculation of Adjusted EBITDA from continuing operations for the
definitions of the Special items listed above.
|
|
|
Six Months
Ended
|
|
|
July 1,
2023
|
|
June 25,
2022
|
Net cash provided by
(used in) operating activities (1)
|
|
$
153.4
|
|
$
(165.7)
|
Less capital
expenditures (1)
|
|
46.9
|
|
34.8
|
Free Cash Flow
(1)(2)
|
|
$
106.4
|
|
$
(200.5)
|
|
|
(1)
|
Cash flow information
is inclusive of cash flows from the Australasia segment as
discontinued operations.
|
(2)
|
Free Cash Flow is a
financial measure that is not calculated in accordance with GAAP.
For a discussion of our presentation of Free Cash Flow, see above
under the heading "Non-GAAP Financial Information".
|
|
|
|
|
|
July 1,
2023
|
|
December 31,
2022
|
Total debt
|
|
$
1,686.0
|
|
$
1,746.9
|
Less cash and cash
equivalents
|
|
188.9
|
|
164.5
|
Net Debt
(1)
|
|
$
1,497.1
|
|
$
1,582.4
|
Divided by trailing
twelve months Adjusted EBITDA from continuing operations
(2)
|
|
360.7
|
|
348.8
|
Net Debt Leverage
(1)
|
|
4.1x
|
|
4.5x
|
|
|
(1)
|
Net Debt and Net Debt
Leverage are financial measures that are not calculated in
accordance with GAAP. For a discussion of our presentation of Net
Debt Leverage, see above under the heading "Non-GAAP Financial
Information".
|
(2)
|
Trailing twelve months
Adjusted EBITDA from continuing operations for both periods.
Adjusted EBITDA from continuing operations is a financial measure
that is not calculated in accordance with GAAP. For a discussion of
our presentation of Adjusted EBITDA from continuing operations, see
above under the heading "Non-GAAP Financial
Information".
|
Segment Results
(Unaudited)
(In
millions)
|
|
|
|
Three Months
Ended
|
|
|
|
|
July 1,
2023
|
|
June 25,
2022
|
|
|
Net revenues from
external customers
|
|
|
|
|
|
% Variance
|
North
America
|
|
$
817.1
|
|
$
839.1
|
|
(2.6) %
|
Europe
|
|
308.7
|
|
340.0
|
|
(9.2) %
|
Total
Consolidated
|
|
$
1,125.8
|
|
$
1,179.2
|
|
(4.5) %
|
Adjusted EBITDA from
continuing operations (1)
|
|
|
|
|
|
|
North
America
|
|
$
108.8
|
|
$
93.5
|
|
16.4 %
|
Europe
|
|
23.9
|
|
20.0
|
|
19.1 %
|
Corporate and
unallocated costs
|
|
(23.8)
|
|
(5.2)
|
|
356.4 %
|
Total
Consolidated
|
|
$
108.9
|
|
$
108.3
|
|
0.5 %
|
|
|
(1)
|
Adjusted EBITDA from
continuing operations is a financial measure that is not calculated
in accordance with GAAP. For a discussion of our presentation of
Adjusted EBITDA from continuing operations, see above under the
heading "Non-GAAP Financial Information".
|
|
|
Six Months
Ended
|
|
|
|
|
July 1,
2023
|
|
June 25,
2022
|
|
|
Net revenues from
external customers
|
|
|
|
|
|
% Variance
|
North
America
|
|
$
1,585.1
|
|
$
1,561.5
|
|
1.5 %
|
Europe
|
|
621.1
|
|
663.3
|
|
(6.4) %
|
Total
Consolidated
|
|
$
2,206.3
|
|
$
2,224.8
|
|
(0.8) %
|
Adjusted EBITDA from
continuing operations (1)
|
|
|
|
|
|
|
North
America
|
|
$
188.0
|
|
$
160.6
|
|
17.1 %
|
Europe
|
|
41.5
|
|
34.7
|
|
19.5 %
|
Corporate and
unallocated costs
|
|
(41.3)
|
|
(19.0)
|
|
117.5 %
|
Total
Consolidated
|
|
$
188.2
|
|
$
176.3
|
|
6.7 %
|
|
|
(1)
|
Adjusted EBITDA from
continuing operations is a financial measure that is not calculated
in accordance with GAAP. For a discussion of our presentation of
Adjusted EBITDA from continuing operations, see above under the
heading "Non-GAAP Financial Information".
|
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SOURCE JELD-WEN Holding, Inc.