Jeld-wen Holding, Inc. · NYSE:JELD
Jeld-wen — Q2 2018 Earnings Presentation
20 slides from Jeld-wen's earnings presentation, Aug 7, 2018
Slide 1: Q2 2018 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, the estimated impact of tax reform on our results, litigation outcomes, ou
Slide 3: Introduction
Introduction Kirk Hachigian, Chairman Gary Michel, President and CEO 3
Slide 4: Introduction
Introduction Mixed Financial Results in Q2 2018: Strong revenue growth Operating results impacted by inflationary environment and investments in core growth Delivered low end of Adjusted EBITDA guidance range Q2 Key Developments: Stabilized North America team and filled key open positions
Slide 5: Gary Michel - Background & Experience
Gary Michel - Background & Experience Joined JELD-WEN from Honeywell International, Inc. where he was president and chief executive officer of the ~$10 billion Home and Building Technologies strategic business group Previously had 32-year successful career with Ingersoll Rand Demonstrated trac
Slide 6: Gary Michel – Initial Observations
Gary Michel – Initial Observations Assessment From First 45 Days Near-Term Priorities Excellent portfolio of brands, broad product range Execute on operational imperatives and unmatched global operating platform - Focus on customer service, delivery, and quality - Fantastic set of assets - Inves
Slide 7: Second Quarter Summary
Second Quarter Summary Q2 net revenues increased 23.6% - Driven by 19% increase from acquisitions and core growth of 3% - Core growth in all three reporting segments - Pricing improved sequentially and year over year Q2 net income of $35.5 million, a decrease of $11.3 million - Impacted by SG&A
Slide 8: Financial Review
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Slide 9: Q2 and YTD 2018 Financial Summary
Q2 and YTD 2018 Financial Summary USD in millions (except for per share items) Q2 YTD 2018 YoY Change 2018 YoY Change Net Revenues $1,172.5 23.6% $2,118.7 17.9% Gross Margin $248.8 7.6% $454.7 10.1% Gross Margin Percent 21.2% (320 bps) 21.5% (150 bps) Net Income $35.5 (24.2%) $75.8 42.3% EPS – Dilut
Slide 10: Q2 and YTD 2018 Net Revenues Walk
Q2 and YTD 2018 Net Revenues Walk Q2 2018 JELD-WEN North America Europe Australasia Pricing 2% 2% 2% 1% Volume/Mix 1% 1% - 2% Core Growth 3% 3% 2% 3% Acquisitions 19% 19% 15% 27% FX 2% - 6% 1% Total 23.6% 22.0% 23.1% 30.7% YTD 2018 Pricing 1% 2% 2% 1% Volume/Mix - (1%) - 3% Core Growth 1% 1% 2% 4% A
Slide 11: North America Segment Performance
North America Segment Performance USD in millions Q2 - Total Q2 – Core Only (1) 2018 YoY Change YoY Change Net Revenues $673.2 22.0% 3% Adjusted EBITDA $79.6 (0.2%) (10%) Adjusted EBITDA Margin 11.8% (270 bps) (180 bps) YTD - Total YTD – Core Only (1) 2018 YoY Change YoY Change Net Revenues $1,171.2
Slide 12: Europe Segment Performance
Europe Segment Performance USD in millions Q2 - Total Q2 – Core Only (1) 2018 YoY Change YoY Change Net Revenues $318.7 23.1% 2% Adjusted EBITDA $37.9 2.3% (10%) Adjusted EBITDA Margin 11.9% (240 bps) (160 bps) YTD - Total YTD – Core Only (1) 2018 YoY Change YoY Change Net Revenues $620.4 23.8% 2% A
Slide 13: Australasia Segment Performance
Australasia Segment Performance USD in millions Q2 - Total Q2 – Core Only (1) 2018 YoY Change YoY Change Net Revenues $180.6 30.7% 3% Adjusted EBITDA $24.2 39.6% 15% Adjusted EBITDA Margin 13.4% 90 bps 140 bps YTD - Total YTD – Core Only (1) 2018 YoY Change YoY Change Net Revenues $327.1 26.0% 4% Ad
Slide 14: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow USD in millions Balance Sheet and Liquidity June 30, 2018 December 31, 2017 Total Debt $1,542.1 $1,273.7 Cash $137.6 $220.2 Total Net Debt $1,404.5 $1,053.5 Net Debt / Adjusted EBITDA 3.1x 2.4x Liquidity (1) $330.4 $512.2 Cash Flow Q2 YTD 2018 Q2 YTD 2017 Cash Flow From O
Slide 15: 2018 Outlook
2018 Outlook 15
Slide 16: 2018 Outlook
2018 Outlook USD in millions Q 3 2018 O ut look 2017 Q 3 Act ual 2018 Q 3 O ut look Adjusted EBITDA $128.2 $143 to $153 Full Y ear 2018 O ut look 2018 FY Prev ious O ut look ( 1 ) 2018 FY Updat ed O ut look ( 2 ) Net Revenue Growth 17.0% to 19.0% 16.0% to 18.0% Adjusted EBITDA $505 to $535 $500 to $
Slide 17: Summary
Summary Successful leadership transition underway; no change to strategy or long-term targets Continue to improve customer service, delivery, and quality Focus on cost out: productivity, overhead reduction, footprint optimization Offset inflation and tariffs with disciplined pricing Succes
Slide 18: Appendix
Appendix 18
Slide 19: Non-GAAP Reconciliation
Non-GAAP Reconciliation Adjusted EBITDA (USD in millions) Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, 2018 2017 2018 2017 Net income $ 35.5 $ 46.8 $ 75.7 $ 53.2 Equity earnings of non-consolidated entities — (1.1) (0.7) (1.6) Income tax expense 23.2 17.7 19.2 20.0 Depreciat
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation Adjusted EPS & Free Cash Flow (USD in millions) Three Months Ended Six Months Ended (amounts in millions, except share and per share June 30, July 1, June 30, July 1, data) 2018 2017 2018 2017 Net income attributable to common shareholders $ 35.5 $ 46.8 $ 75.8 $ 42.7 Legal an