Jeld-wen Holding, Inc. · NYSE:JELD
Jeld-wen — Q4 2018 Earnings Presentation
22 slides from Jeld-wen's earnings presentation, Feb 19, 2019
Slide 1: Fourth-Quarter and Full Year 2018 Results Presentation
FOURTH-QUARTER AND FULL YEAR 2018 RESULTS PRESENTATION February 19, 2019
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, the estimated impact of tax reform on our results, litigation outcomes, ou
Slide 3: Introduction
INTRODUCTION Gary Michel, President and CEO |
Slide 4: Key Takeaways
KEY TAKEAWAYS Delivered fourth quarter revenue and earnings in line with guidance Core growth headwinds continued in certain business lines Sequential improvement in execution in the fourth quarter Favorable price/cost realization North America and Australasia delivered core margin expansi
Slide 5: Fourth Quarter Summary
FOURTH QUARTER SUMMARY Financial Summary Q4 net revenues increased 11.8% Revenue growth driven primarily by 14% growth from acquisitions Net income of $39.7 million, an increase of $133.4 million, driven by acquisitions and non-recurring tax charges in 2017 Adjusted EBITDA of $109.6 million
Slide 6: JELD-WEN Excellence Model Update
JELD-WEN EXCELLENCE MODEL UPDATE Objectives Status Update Driving JEM Culture through continuous Doubled the number of locations where JEM improvement tools were deployed in 2018 Safety and Compliance Over 2,000 employees trained globally on Quality A3 problem solving Customer Experience
Slide 7: Global Footprint Consolidation Update
GLOBAL FOOTPRINT CONSOLIDATION UPDATE Objectives Status Update Leverage acquired assets and JEM tools to Consolidation projects active in all three segments reduce global facility footprint and increase Several facility closures already announced efficiency Reduce complexity Minimizing any
Slide 8: Consistent Track Record of Earnings Growth
CONSISTENT TRACK RECORD OF EARNINGS GROWTH Summary Adjusted EBITDA Grow th Progress on operational execution 25% CAGR Committed to long-term 15% EBITDA margin target Footprint rationalization underway Acceleration of JEM deployment across the enterprise 2013 2014 2015 2016 2017 2018 25% COMP
Slide 9: Financial Review
FINANCIAL REVIEW John Linker, Executive Vice President and CFO |
Slide 10: Q4 and Full Year 2018 Financial Summary
Q4 AND FULL YEAR 2018 FINANCIAL SUMMARY Q4 YTD 2018 YoY Change 2018 YoY Change Net Revenues $1,091.1 11.8% $4,346.7 15.5% Gross Margin $227.3 9.0% $923.7 8.7% Gross Margin Percentage 20.8% (60 bps) 21.3% (130 bps) Net Income $39.7 NM $144.3 NM EPS – Diluted $0.38 NM $1.36 NM Adjusted EPS – Diluted $
Slide 11: Q4 and Full Year 2018 Net Revenues Walk
Q4 AND FULL YEAR 2018 NET REVENUES WALK Q4 2018 JELD-WEN North America Europe Australasia Pricing 2% 3% 1% 0% Volume/Mix (2%) (4%) 0% (1%) Core Growth 0% (1%) 1% (1%) Acquisitions 14% 14% 12% 19% FX (2%) (0%) (4%) (6%) Total 11.8% 13.0% 9.4% 11.9% FULL YEAR 2018 Pricing 2% 2% 1% 1% Volume/Mix (1%) (
Slide 12: North America Segment Performance
NORTH AMERICA SEGMENT PERFORMANCE Q4 – Total Q4 – Core Only (1) 2018 YoY Change YoY Change Net Revenues $621.6 13.0% (1%) Adjusted EBITDA $68.2 11.6% 3% Adjusted EBITDA Margin 11.0% (10 bps) 40 bps FULL YEAR – Total FY – Core Only (1) 2018 YoY Change YoY Change Net Revenues $2,461.0 14.0% 0% Adjuste
Slide 13: Europe Segment Performance
EUROPE SEGMENT PERFORMANCE Q4 – Total $M USD Q4 – Core Only (1) 2018 YoY Change YoY Change Net Revenues $302.5 9.4% 1% Adjusted EBITDA $29.3 (16.9%) (16%) Adjusted EBITDA Margin 9.7% (310 bps) (210 bps) FULL YEAR – Total $M USD FY – Core Only (1) 2018 YoY Change YoY Change Net Revenues $1,215.8 16.6
Slide 14: Australasia Segment Performance
AUSTRALASIA SEGMENT PERFORMANCE Q4 – Total $M USD Q4 – Core Only (1) 2018 YoY Change YoY Change Net Revenues $166.9 11.9% (1%) Adjusted EBITDA $24.0 13.0% 0% Adjusted EBITDA Margin 14.4% 20 bps 10 bps FULL YEAR – Total $M USD FY – Core Only (1) 2018 YoY Change YoY Change Net Revenues $669.9 19.0% 2%
Slide 15: Balance Sheet and Cash Flow
BALANCE SHEET AND CASH FLOW Balance Sheet and Liquidity December 31, 2018 December 31, 2017 Total Debt $1,477.9 $1,273.7 Cash $117.0 $220.2 Total Net Debt $1,360.9 $1,053.5 Net Debt / Adjusted EBITDA 2.9x 2.4x Liquidity (1) $380.2 $512.2 Cash Flow FY 2018 FY 2017 Cash Flow From Operations $219.7 $26
Slide 16: 2019: Outlook
“tae 2019: OUTLOOK Sp JELPWEN
Slide 17: 2019 Segment Core Growth Outlook
2019 SEGMENT CORE GROWTH OUTLOOK Core Revenue Growth (1) Comments JELD-WEN Segment 2018 Actual 2019 Outlook Stable U.S. R&R market and modest North America 0% 3% to 4% growth in new construction; Canada market flat Moderating economic growth Europe 1% 1% to 2% Contraction in residential new Australa
Slide 18: 2019 Outlook
2019 OUTLOOK First Quarter 2019 Outlook Q1 2019 Outlook Approximately ~18.5% of Full Year Adjusted EBITDA 2019 Adjusted EBITDA Full Year 2019 Outlook 2018 Actual 2019 Outlook Net Revenue Growth v. PY 15.5% 1.0% to 5.0% Adjusted EBITDA $465.3 $470 to $505 Capital Expenditures $118.7 $140 to $160 Full
Slide 19: JELD-WEN's Strategic Growth Drivers
JELD-WEN’S STRATEGIC GROWTH DRIVERS 1 Accelerate Top Line Growth 2 Expand Margins 3 Disciplined Capital Allocation % ``` Invest for Growth Culture and Tools Shareholder Value JELD-WEN IS POSITIONED TO DRIVE GROWTH AND LONG TERM SHAREHOLDER VALUE 19 |
Slide 20: Appendix
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Slide 21: Non-GAAP Reconciliation: Adjusted EBITDA
NON-GAAP RECONCILIATION ADJUSTED EBITDA (USD IN MILLIONS) Three Months Ended Twelve Months Ended December 31, December 31, December 31, December 31, 2018 2017 2018 2017 Net income $ 39.7 $ (93.7) $ 144.3 $ 10.8 Equity earnings of non-consolidated entities — (1.0) (0.7) (3.6) Income tax (benefit) exp
Slide 22: Non-GAAP Reconciliation: Adjusted Net Income and Free Cash Flow
NON-GAAP RECONCILIATION ADJUSTED NET INCOME AND FREE CASH FLOW (USD IN MILLIONS) Three Months Ended Twelve Months Ended (amounts in millions, except share and per December 31, December 31, December 31, December 31, share data) 2018 2017 2018 2017 Net income attributable to common shareholders $ 39.7