Jeld-wen Holding, Inc. · NYSE:JELD
Jeld-wen — Q4 2019 Earnings Presentation
22 slides from Jeld-wen's earnings presentation, Feb 18, 2020
Slide 1: Fourth-Quarter 2019 Results Presentation
FOURTH-QUARTER 2019 RESULTS PRESENTATION February 18, 2020
Slide 2: Disclosures
DISCLOSURES Forward-Looking Statements This presentation contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements by our CEO and CFO and statements regarding our business strategies and abi
Slide 3: Introduction
INTRODUCTION Gary Michel, President and CEO |
Slide 4: Q4 Key Takeaways
Q4 KEY TAKEAWAYS Delivered Q4 revenue and cash flow; EBITDA results below expectations North America segment Q4 core revenue growth vs. prior year Sequential improvement in North America Windows, but below expectations Europe delivered core margin improvement for the second consecutive quart
Slide 5: North America Summary and 2020 Catalysts
NORTH AMERICA SUMMARY AND 2020 CATALYSTS Market Segment Q4 Outlook Market Outlook Commentary Residential New • Residential New Construction trends improving in Construction US and Canada • December US housing starts at 13-year high; should translate into improved demand in 2H 2020 Repair & Remodel •
Slide 6: Europe Summary and 2020 Catalysts
EUROPE SUMMARY AND 2020 CATALYSTS Market Segment Q4 Outlook Market Outlook Commentary Residential New • Markets remain flat in aggregate with mixed Construction performance across various countries • EUROCONSTRUCT forecasts show slight Non-Residential New expansion in total construction Construction
Slide 7: Australasia Summary and 2020 Catalysts
AUSTRALASIA SUMMARY AND 2020 CATALYSTS Market Segment Q4 Outlook Market Outlook Commentary Residential New • Australia housing market headwinds continue Construction • Stabilization in new construction market demand not expected until 2H 2020 Repair & Remodel • Renovation market remains stable 2020
Slide 8: Growth Through Innovation
GROWTH THROUGH INNOVATION JELD-WEN ® interior doors offer the broadest choice of flat panel molded and raised panel doors − MODA ® Rustic offers 21 different panel and glass configurations, providing complete design flexibility to the customer JELD-WEN ® exterior fiber glass door system − Comple
Slide 9: Financial Review
FINANCIAL REVIEW John Linker, Executive Vice President and CFO |
Slide 10: Q4 2019 Financial Summary
Q4 2019 FINANCIAL SUMMARY USD in millions NET REVENUES Adj. EBITDA Adj. EBITDA Margin Core Core Core (2%) (16%) (140 bps) (130 bps) (2.1%) (15.9%) $1,091.7 $1,068.6 9.7% $106.1 8.4% $89.2 4Q18 4Q19 4Q18 4Q19 4Q18 4Q19 IMPROVEMENT IN EUROPE OFFSET BY NORTH AMERICA AND AUSTRALASIA Core excludes impact
Slide 11: Q4 2019 Net Revenues Walk
Q4 2019 NET REVENUES WALK JELD-WEN North America Europe Australasia Q4 2019 Pricing 2% 2% 1% (1%) Volume/Mix (4%) (1%) (2%) (14%) Core Growth (2%) 1% (1%) (15%) Acquisitions 2% 2% 0% 0% FX (2%) 0% (3%) (4%) Total (2.1%) 3.1% (3.8%) (18.7%) FY 2019 Pricing 2% 3% 1% 0% Volume/Mix (4%) (5%) 0% (10%) Co
Slide 12: North America Segment Performance
NORTH AMERICA SEGMENT PERFORMANCE USD in millions NET REVENUES Adj. EBITDA Adj. EBITDA Margin Core Core Core 1% (17%) (190 bps) 3.1% (12.0)% (160 bps) $68.6 $642.4 $60.4 11.0% $622.8 9.4% 4Q18 4Q19 4Q18 4Q19 4Q18 4Q19 CORE REVENUE GROWTH OFFSET BY OPERATIONAL INEFFICIENCIES Core excludes impact of F
Slide 13: Europe Segment Performance
EUROPE SEGMENT PERFORMANCE USD in millions NET REVENUES Adj. EBITDA Adj. EBITDA Margin Core Up 1% Core Core (1%) 20% +170 bps Core(1) (3.8%) 15.4% 170 bps $302.0 $290.4 10.1% $29.4 8.4% $25.5 4Q18 4Q19 4Q18 4Q19 4Q18 4Q19 POSITIVE PRICE REALIZATION AND STRONG PRODUCTIVITY DRIVE CORE MARGIN EXPANSION
Slide 14: Australasia Segment Performance
AUSTRALASIA SEGMENT PERFORMANCE USD in millions NET REVENUES Adj. EBITDA Adj. EBITDA Margin Core -2% Core Core (15%) (27%) (200 bps) Core(1) (18.7%) (31.0%) (210 bps) $23.9 14.3% $166.9 12.2% $135.7 $16.5 4Q18 4Q19 4Q18 4Q19 4Q18 4Q19 POSITIVE PRODUCTIVITY NOT ENOUGH TO OFFSET VOLUME HEADWINDS Core
Slide 15: Strong Free Cash Flow Performance in 2019
STRONG FREE CASH FLOW PERFORMANCE IN 2019 USD in millions Free Cash Flow ($M) $203 $167 $122 $101 $95 2015 2016 2017 2018 2019 2019 FREE CASH FLOW CONVERSION OF ~1.5X ADJUSTED NET INCOME 15 |
Slide 16: Balance Sheet and Cash Flow
BALANCE SHEET AND CASH FLOW USD in millions Balance Sheet and Liquidity December 31, 2019 December 31, 2018 Total Debt $1,517.4 $1,477.9 Cash $226.0 $117.0 Total Net Debt $1,291.4 $1,360.9 Net Debt / Adjusted EBITDA 3.1x 3.0x Liquidity (1) $554.4 $380.2 Cash Flow 2019 2018 Cash Flow From Operations
Slide 17: 2020 Outlook
2020 OUTLOOK |
Slide 18: 2020 Outlook
2020 OUTLOOK USD IN MILLIONS 2020 Revenue Outlook by Segment 2019 vs. 2018 2020 vs. 2019 2020 Comments • Improved pricing across all channels • Stable R&R market North America 3% 3% to 6% • Improving residential new construction demand • Small carryover contribution from VPI acquisition • Moderating
Slide 19: 2020 Outlook - Margin Improvement Cadence
2020 OUTLOOK - MARGIN IMPROVEMENT CADENCE Australasia new construction market expected to stabilize North NorthAmerica Americademand new construction expected todemand improve Europe Europe pricing price benefit Footprint rationalization and modernization benefits Full benefit of North North America
Slide 20: Appendix
APPENDIX |
Slide 21: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION ADJUSTED EBITDA ( USD in millions ) Three Months Ended Twelve Months Ended December 31, December 31, December 31, December 31, 2019 2018 2019 2018 Net income $ 7.8 $ 38.1 $ 63.0 $ 141.9 Equity earnings of non-consolidated entities — — — (0.7) Income tax expense 12.0 3.1 57.1
Slide 22: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION ADJUSTED NET INCOME AND FREE CASH FLOW ( USD in millions) Three Months Ended Twelve Months Ended December 31, December 31, December 31, December 31, (amounts in millions, except share and per share data) 2019 2018 2019 2018 Net income $ 7.8 $ 38.1 $ 63.0 $ 141.9 Litigation co