Jeld-wen Holding, Inc. · NYSE:JELD
Jeld-wen — Q2 2024 Earnings Presentation
33 slides from Jeld-wen's earnings presentation, Aug 6, 2024
Slide 1: Second Quarter 2024 Results
Second Quarter 2024 Results August 6, 2024
Slide 2: Speakers
Speakers Bill Christensen CEO Samantha Stoddard CFO
Slide 3: Disclosures
Disclosures Certain statements in this presentation, including our guidance and business strategies, are forward- looking statements that involve risk, uncertainty and assumptions, and are based on information as of August 6, 2024. Actual results may differ materially from those set forth in such st
Slide 4: Second Quarter 2024 Highlights
Second Quarter 2024 Highlights Second Quarter 2024 ▪ Sales of $986 million ▪ Adjusted EBITDA of $85 million – 8.6% of Sales ▪ Announced Samantha Stoddard as CFO ▪ Opportunistically repurchased 1.6 million shares at an average share price of $15.18 FOCUSED ON STRENGTHENING OUR FOUNDATION 4
Slide 5: Q2 2024 Foundational Actions
Q2 2024 Foundational Actions People Performance Culture & Capabilities Cost Reduction ▪ ~1,400 leaders engaged in alignment ▪ Structural cost reductions across North training America and Europe ▪ Activated change agent network ▪ Additional productivity in sourcing and logistics ONGOING TRANSFORMATIO
Slide 6: Q2 2024 Financial Results
Q2 2024 Financial Results
Slide 7: Q2 2024 Financial Summary
Q2 2024 Financial Summary USD in Millions Net Revenue Adjusted EBITDA Adjusted EBITDA Margin -12% -22% -110 bps $1,126 $109 9.7% 8.6% $986 $85 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Core Revenue down (12%) driven Productivity & SG&A improvements more than by lower volume / mix offset by low
Slide 8: Q2 2024 Revenue Bridge
Q2 2024 Revenue Bridge USD in Millions $1,126 $2 (12%) $986 ($138) ($4) Core Revenue (12%) Q2 2023 Price Volume / Mix Foreign Exchange Q2 2024 LOWER VOLUME / MIX FROM INCREASED MARKET HEADWINDS 8
Slide 9: Q2 2024 Adjusted EBITDA Bridge
Q2 2024 Adjusted EBITDA Bridge USD in Millions $109 ($12) $20 $85 $16 ($49) Adj. Margin Adj. Margin 9.7% 8.6% Q2 2023 Price / Cost Volume / Mix Productivity SG&A / Other Income Q2 2024 Note: Amounts do not foot due to rounding TRANSFORMATION SAVINGS PARTIALLY MITIGATES LOWER VOLUME / MIX 9
Slide 10: Q2 2024 Segment Results
Q2 2024 Segment Results USD in Millions Q2 2023 Q1 2024 Segment Highlights North America Q2 2024 (Prior Year) (Previous Quarter) Net Revenue $711 $817 $680 ▪ Lower volume / mix Adjusted EBITDA $76 $109 $61 - North America down (13%) Adjusted EBITDA margin 10.6% 13.3% 9.0% - Europe down (12%) ▪ Deliv
Slide 11: Market Outlook
Market Outlook North America Europe Low Double-Digit Low Double-Digit Volume Decline Volume Decline New single-family construction Residential construction Up low-single digits High-single digit decline Repair & Remodel Commercial projects Down mid-to-high single digits Down by low double-digits Mul
Slide 12: Transformation Journey
i= Transformation Journey
Slide 13: Key Levers
Key Levers People Performance Culture & Growth Cost Capabilities ▪ Safety-first mindset ▪ Increase salesforce ▪ Invest in process ▪ Improve organizational efficiency automation health ▪ Upgrade go-to-market ▪ Consolidate footprint ▪ Align accountability process ▪ Utilize scale and and incentives ▪ O
Slide 14: Integration: Aligning Door Specifications
Integration: Aligning Door Specifications Leveraging JELD-WEN’s Network 5-year Expected Cumulative Financial Impact ✓ Standardizing build specifications and process >$4 Million ✓ Enables network load balancing EBITDA Benefit ✓ Foundation for further footprint consolidation <$1.5 Million Expense Inve
Slide 15: Automation: Bifold Production
Automation: Bifold Production Improving Efficiency to Meet Customer Needs 5-year Expected Cumulative Financial Impact ✓ Upgrade production equipment >$2 Million EBITDA Benefit ✓ Standardize production process and design ✓ Safety improvement for material handling ~$1.6 Million Expense / Capital Inves
Slide 16: 2024 Guidance
2024 Guidance
Slide 17: 2024 Guidance
2024 Guidance Net Revenue $3.9B to $4.1B ▪ Trending towards lower-end of guidance Core Revenue ▪ Price/cost declines of (~1%) vs. our Down (5%) to (9%) previous expectation of flat ▪ Sustainable SG&A savings partially offsetting market headwinds Adjusted EBITDA $340M to $380M ACCELERATING STRUCTURAL
Slide 18: Updated 2024 Cash Flow Outlook
Updated 2024 Cash Flow Outlook* Previous Current Operating Cash Flow Operating Cash Flow ~$225M ~$200M Cap Ex Cap Ex $150M to $175M $150M to $175M Free Cash Flow Free Cash Flow $50M to $75M $25M to $50M *Includes ~$100 million of non-recurring transformation journey cash expenses. Lower-end of Adjus
Slide 19: JELD-WEN Going Forward
JELD-WEN Going Forward Address Reposition Improve Capital Priorities Transparency Allocation UNLOCKING SIGNIFICANT SHAREHOLDER VALUE 19
Slide 20: Appendix
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Slide 21: Net Revenue Walk
Net Revenue Walk Q2 2024 JELD-WEN North America Europe Price -% -% 2% Volume / Mix (12%) (13%) (12%) Core Revenue Growth (12%) (13%) (10%) FX -% -% (1%) Total (12.4%) (13.0%) (10.8%) 21
Slide 22: Updated Key Assumptions for 2024
Updated Key Assumptions for 2024 USD in Millions Key Assumption 2024 Estimate Previous 2024 Estimate Depreciation and Amortization ~$130 ~$130 Interest Expense, net $65 to $70 $65 to $70 Tax Rate (Adjusted Earnings) ~27% ~27% Diluted Share Count ~86 million ~87 million ✓ Full-year EBITDA split ~45%
Slide 23: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow USD in Millions Cash Flow(1) Q2 2024 Q2 2023 Net cash provided by operating activities $40 $153 Capital Expenditures(2) ($74) ($47) Free Cash Flow(3) ($34) $106 Balance Sheet(4) June 29, 2024 December 31, 2023 Total Debt $1,214 $1,226 Cash $213 $288 Net Debt(5) $1,001 $93
Slide 24: Q2 YTD 2024 Revenue Bridge
Q2 YTD 2024 Revenue Bridge USD in Millions $2,206 $3 (12%) $1 $1,945 ($264) Core Revenue (12%) YTD 2023 Price Volume / Mix Foreign Exchange YTD 2024 Note: Amounts do not foot due to rounding LOWER VOLUME / MIX REFLECTS MARKET HEADWINDS 24
Slide 25: Q2 YTD 2024 Adjusted EBITDA Bridge
Q2 YTD 2024 Adjusted EBITDA Bridge USD in Millions $188 ($14) $31 $154 $28 ($80) Adj. Margin Adj. Margin 8.5% 7.9% YTD 2023 Price / Cost Volume / Mix Productivity SG&A / Other Income YTD 2024 Note: Amounts do not foot due to rounding PRODUCTIVITY PARTIALLY MITIGATES LOWER VOLUME / MIX 25
Slide 26: Q2 2024 and Q2 2023 Adjusted Net Income Reconciliation
Q2 2024 and Q2 2023 Adjusted Net Income Reconciliation USD in Millions Three Months Ended Six Months Ended June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 (Loss) income from continuing operations, net of tax $ (18.5) $ 22.5 $ (46.2) $ 31.0 Special items:(1) Net legal and professional expenses
Slide 27: Q2 2024 and Q2 2023 Adjusted Net Income Per Share Reconciliation
Q2 2024 and Q2 2023 Adjusted Net Income Per Share Reconciliation Three Months Ended Six Months Ended June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Diluted (loss) income per share from continuing operations $ (0.22) $ 0.26 $ (0.54) $ 0.36 Special items:(1) Net legal and professional expenses
Slide 28: Adjusted EBITDA From Continuing Operations Reconciliation
Adjusted EBITDA From Continuing Operations Reconciliation USD in Millions Three Months Ended Six Months Ended June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 (Loss) income from continuing operations, net of tax (18.5) $ 22.5 $ (46.2) $ 31.0 Income tax expense 9.6 10.8 6.1 14.2 Depreciation and
Slide 29: Q2 2024 QTD Segment Adjusted EBITDA Reconciliation
Q2 2024 QTD Segment Adjusted EBITDA Reconciliation USD in Millions Three Months Ended June 29, 2024 Corporate Total North and Total Europe Operating America Unallocated Consolidated Segments Costs Income (loss) from continuing operations, net of tax $ 30.7 $ (5.0) $ 25.7 $ (44.2) $ (18.5) Income tax
Slide 30: Q2 2023 QTD Segment Adjusted EBITDA Reconciliation
Q2 2023 QTD Segment Adjusted EBITDA Reconciliation USD in Millions Three Months Ended July 1, 2023 Corporate Total North and Total Europe Operating America Unallocated Consolidated Segments Costs Income (loss) from continuing operations, net of tax $ 51.3 $ 10.7 $ 61.9 $ (39.4) $ 22.5 Income tax exp
Slide 31: Q1 2024 Segment Adjusted EBITDA Reconciliation
Q1 2024 Segment Adjusted EBITDA Reconciliation USD in Millions Three Months Ended March 30, 2024 Corporate Total North and Total Europe Operating America Unallocated Consolidated Segments Costs Income (loss) from continuing operations, net of tax $ 16.3 $ - $ 16.3 $ (44.0) $ (27.7) Income tax expens
Slide 32: Q2 2024 YTD Segment Adjusted EBITDA Reconciliation
Q2 2024 YTD Segment Adjusted EBITDA Reconciliation USD in Millions Six Months Ended June 29, 2024 Corporate Total North and Total Europe Operating America Unallocated Consolidated Segments Costs Income (loss) from continuing operations, net of tax $ 47.0 $ (5.0) $ 42.0 $ (88.2) $ (46.2) Income tax e
Slide 33: Q2 2023 YTD Segment Adjusted EBITDA Reconciliation
Q2 2023 YTD Segment Adjusted EBITDA Reconciliation USD in Millions Six Months Ended July 1, 2023 Corporate Total North and Total Europe Operating America Unallocated Consolidated Segments Costs Income (loss) from continuing operations, net of tax $ 86.5 $ 18.0 $ 104.5 $ (73.5) $ 31.0 Income tax expe