Jeld-wen Holding, Inc. · NYSE:JELD
Jeld-wen — Q1 2017 Earnings Presentation
21 slides from Jeld-wen's earnings presentation, May 9, 2017
Slide 1: Q1 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, and our expectations, beliefs, plans, objectives, prospects, assumptions,
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 Q1 2017 LTM Net Revenues of $3.7 billion and Other 9% 14% Non-Resi. 10% Resi. New Construction Adj. EBITDA of $414 million (~11.1% 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 leading market positions 15%+ A team of accomplished leaders assembled from the best Industrials (Dana
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: Operational Excellence
Operational Excellence JELD-WEN Excellence Model (JEM) Phase IV: Continuously deploy advanced tools (e.g., Policy Deployment, Obeya, etc.) Phase III: Deploy intermediate JEM tools (e.g., Total Productive Maintenance Cycle Time JEM Reduction, Kaizen, Kanban, etc.) Culture: Ongoing Phase II: Deploy fu
Slide 8: Financial Performance
Financial Performance USD in millions Net Revenue Growth Adjusted EBITDA Free Cash Flow (1) 6.4% increase 32.4% increase $31 million increase $847.8 $796.5 $81.0 $61.2 ($18.0) 9.5% 7.7% ($49.0) Q1 2016 Q1 2017 Q1 2016 Q1 2017 Q1 2016 Q1 2017 % Margin BUSINESS TRANSFORMATION DRIVING EARNINGS AND FCF
Slide 9: Financial Review
Financial Review Brooks Mallard, EVP and Chief Financial Officer 9
Slide 10: Q1 2017 Financial Summary
Q1 2017 Financial Summary USD in millions Q1 2017 YoY Change(1) Net Revenues $847.8 6.4% Gross Margin $186.0 17.6% Gross Margin Percent 21.9% 200 bps Net Income $6.4 6.3% Adjusted EBITDA $81.0 32.4% Adjusted EBITDA Margin 9.5% 180 bps MARGIN EXPANSION CONTINUED IN Q1 (1) See page 21 for note on “Adj
Slide 11: Q1 Net Revenues Walk
Q1 Net Revenues Walk Q1 2017 JELD-WEN North America Europe Australasia Pricing 2% 2% 1% 1% Volume/Mix 4% 3% 5% 6% Core Growth 6% 5% 6% 7% Acquisitions 1% 0% 0% 12% FX (1%) 0% (4%) 5% Total 6.4% 5.2% 1.6% 24.1% CORE GROWTH MOMENTUM CONTINUES ACROSS ALL REGIONS 11
Slide 12: North America Segment Performance
North America Segment Performance USD in millions Q1 2017 YoY Change Net Revenues $484.1 5.2% Adjusted EBITDA $50.2 58.3% Adjusted EBITDA Margin 10.4% 350 bps Wood Windows Vinyl Windows Interior Doors Exterior Doors Wall Systems CORE GROWTH DRIVING GROWTH IN EARNINGS AND MARGIN 12
Slide 13: Europe Segment Performance
Europe Segment Performance USD in millions Q1 2017 YoY Change Net Revenues $242.3 1.6% Adjusted EBITDA $27.2 10.2% Adjusted EBITDA Margin 11.2% 80 bps Residential Doors Commercial Doors Fire Resistant Sound Dampening Security Doors SIGNIFICANT MARGIN IMPROVEMENT ON FLAT USD REVENUES IN 2016 13
Slide 14: Australasia Segment Performance
Australasia Segment Performance USD in millions Q1 2017 YoY Change Net Revenues $121.4 24.1% Adjusted EBITDA $13.2 48.5% Adjusted EBITDA Margin 10.9% 180 bps Windows Doors Shower Enclosures Closet Systems Specialty Windows RECENT ACQUISITIONS DRIVING TOP-LINE GROWTH 14
Slide 15: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow USD in millions Balance Sheet and Liquidity April 1, 2017 December 31, 2016(1) Total Debt $1,245.8 $1,620.0 Cash $185.5 $102.7 Total Net Debt $1,060.3 $1,517.3 Net Debt / Adjusted EBITDA 2.56x 3.85x Liquidity (2) $448.4 $381.9 Cash Flow Q1 2017 Q1 2016 Cash Flow From Oper
Slide 16: Summary and 2017 Outlook
Summary and 2017 Outlook Mark Beck, President and Chief Executive Officer 16
Slide 17: Balanced Approach to Revenue Growth
Balanced Approach to Revenue Growth JELD-WEN Revenue Grow th Future Acquisitions Target* Core Grow th 4-5% Share Brand and channel Innovation investments Sales force effectiveness tools New products Pricing Emerging technologies Analytics in place Disciplined approach Markets Strategic
Slide 18: Balanced Approach to Margin Expansion
Balanced Approach to Margin Expansion JELD-WEN Adj. EBITDA Margin Target* Acquisitions 15%+ Drive margin accretive M&A through: Profitable Organic Growth • Target cultivation Operating leverage • Disciplined valuations Operational Excellence • Effective integration Innovative new products • Hi
Slide 19: 2017 Outlook
2017 Outlook USD in millions Original Updated Net Revenue Growth 1.5% – 3.5% 1.5% – 3.5% Adjusted EBITDA $435 – $455 $440 – $460 Capital Expenditures $90 – $100 $90 – $100 OUTLOOK BASED ON CONTINUED MARGIN IMPROVEMENT IN 2017 19
Slide 20: Appendix
Appendix 20
Slide 21: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation USD in millions Three months ending NOTE: Adjustments to Previously Reported Financial Information April 1, 2017 March 26, 2016 During the first quarter ended April 1, 2017, we identified errors related to the tax treatment of our Net Income (loss) $6.4 $6.0 share-base