Jeld-wen Holding, Inc. · NYSE:JELD
Jeld-wen — Q2 2017 Earnings Presentation
22 slides from Jeld-wen's earnings presentation, Aug 8, 2017
Slide 1: Q2 2017 Results Presentation
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Slide 2: Disclosures
Disclosures Forward-Looking Statements This presentation contains certain "forward-looking statements" regarding business strategies, market potential, future financial performance, the potential of our categories and brands, our outlook for 2017, and our expectations, beliefs, plans, objectives, pr
Slide 3: Introduction
Introduction Mark Beck, President and CEO 3
Slide 4: JELD-WEN at a Glance
JELD-WEN at a Glance Business Highlights Net Revenues Mix (1) Global market leader in windows and doors Product Geography Application Australasia Q2 2017 LTM Net Revenues of $3.7 billion and Other 9% 14% Non-Resi. 10% Resi. New Construction Adj. EBITDA of $426 million (~11.5% margin) 45% W indow
Slide 5: An Extraordinary Transformation Underway
An Extraordinary Transformation Underway Where We Are Today Where We Are Going Early stages of a multi-year turnaround Adjusted EBITDA Margin % A global platform with scale, iconic brands and 20.0% leading market positions 18.0% A team of accomplished leaders assembled 16.0% 15-20% from the be
Slide 6: Proven Operating Model
Proven Operating Model WORLD-CLASS PERFORMANCE AND RETURNS Operational Excellence Profitable Organic Growth Strategic M&A Safety and Compliance New Products and Innovation Target Identification Quality System Brand Strategy Target Cultivation Customer Experience Channel Management Stage Gate Process
Slide 7: Profitable Organic Growth
Profitable Organic Growth Recent New Product Launches North America Europe Premium Vinyl Windows Fiberglass Doors DesignGlide Hardware Carisma – 3D Printing Concealed Frame Fire Rated Steel Australasia Alumiere Windows Blonde Oak Doors Flomotion & Duomode Sashless INVESTING IN INNOVATION TO DRIVE PR
Slide 8: Profitable Organic Growth
Profitable Organic Growth Recent New Product Launches Architectural Fiberglass Doors Alumiere Windows NEW PRODUCTS DIFFERENTIATED BY DESIGN AND PERFORMANCE 8
Slide 9: Strategic M&A
Strategic M&A Mattiovi Acquisition Leading interior door manufacturer in Finland with a strong business in both the residential and commercial markets Rationale: Strong brand name and product offering improves our Nordic market position and provides additional capacity for door frames Closed J
Slide 10: Second Quarter Highlights
Second Quarter Highlights Adjusted EBITDA growth of 11.2% - Adjusted EBITDA margin of 13.2%, a 150 bps increase over prior year - Favorable pricing, operational cost savings initiatives, and improved mix Net revenues decreased 1.6% - Unfavorable foreign exchange impact and small decrease in core
Slide 11: Financial Review
Financial Review Brooks Mallard, EVP and Chief Financial Officer 11
Slide 12: Q2 and YTD 2017 Financial Summary
Q2 and YTD 2017 Financial Summary USD in millions (except for per share items) Q2 YTD 2017 YoY Change 2017 YoY Change Net Revenues $948.7 (1.6%) $1,796.5 2.0% Gross Margin $235.7 11.1% $421.7 13.9% Gross Margin Percent 24.8% 280 bps 23.5% 250 bps Net Income $46.8 (30.1%) $53.2 (27.1%) EPS – Diluted
Slide 13: Q2 and YTD 2017 Net Revenues Walk
Q2 and YTD 2017 Net Revenues Walk Q2 2017 JELD-WEN North America Europe Australasia Pricing 1% 2% 0% 1% Volume/Mix (2%) (4%) 1% 0% Core Growth (1%) (2%) 1% 1% Acquisitions 1% 0% 0% 5% FX (2%) (1%) (4%) 0% Total (1.6%) (2.8%) (3.0%) 6.0% YTD 2017 Pricing 2% 2% 1% 1% Volume/Mix 0% (1%) 3% 2% Core Grow
Slide 14: North America Segment Performance
North America Segment Performance USD in millions Q2 YTD 2017 YoY Change 2017 YoY Change Net Revenues $551.7 (2.8%) $1,035.8 0.8% Adjusted EBITDA $79.8 5.3% $130.0 21.0% Adjusted EBITDA Margin 14.5% 110 bps 12.6% 210 bps Wood Windows Vinyl Windows Interior Doors Exterior Doors Wall Systems SOLID MAR
Slide 15: Europe Segment Performance
Europe Segment Performance USD in millions Q2 YTD 2017 YoY Change 2017 YoY Change Net Revenues $258.9 (3.0%) $501.2 (0.8%) Adjusted EBITDA $37.1 8.1% $64.3 9.0% Adjusted EBITDA Margin 14.3% 140 bps 12.8% 110 bps Residential Doors Commercial Doors Fire Resistant Sound Dampening Security Doors FX IMPA
Slide 16: Australasia Segment Performance
Australasia Segment Performance USD in millions Q2 YTD 2017 YoY Change 2017 YoY Change Net Revenues $138.2 6.0% $259.5 13.7% Adjusted EBITDA $17.3 21.7% $30.6 32.1% Adjusted EBITDA Margin 12.5% 160 bps 11.8% 170 bps Windows Doors Shower Enclosures Closet Systems Specialty Windows RECENT ACQUISITIONS
Slide 17: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow USD in millions Balance Sheet and Liquidity July 1, 2017 December 31, 2016(1) Total Debt $1,245.8 $1,620.0 Cash $227.7 $102.7 Total Net Debt $1,018.1 $1,517.3 Net Debt / Adjusted EBITDA 2.4x 3.9x Liquidity (2) $527.9 $381.9 Cash Flow YTD Q2 2017 YTD Q2 2016 Cash Flow From
Slide 18: Summary and 2017 Outlook
Summary and 2017 Outlook Mark Beck, President and Chief Executive Officer 18
Slide 19: 2017 Outlook
2017 Outlook USD in millions Net Revenue Growth 1.5% – 3.5% Adjusted EBITDA $440 – $460 Capital Expenditures $80 – $90 OUTLOOK AFFIRMED FOR 2017 REVENUE AND ADJUSTED EBITDA 19
Slide 20: Appendix
Appendix 20
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation Adjusted EBITDA (USD in millions) Three Months Six Months Ended July 1, June 25, July 1, June 25, 2017 2016 2017 2016 Net income $ 46.8 $ 66.9 $ 53.2 $ 72.9 Income from discontinued operations, net of tax — 0.6 — 0.1 Equity earnings of non-consolidated entities (1.1) (0.5) (1
Slide 22: Non-GAAP Reconciliation
Non-GAAP Reconciliation Adjusted EPS & Free Cash Flow (USD in millions) Three Months Ended July 1, 2017 Net income $ 46.8 Legal and professional fees 6.2 Non-cash foreign exchange transactions/translation loss 1.9 Impairment and restructuring charges 0.4 Adjusted net income $ 55.3 Diluted net income