Jeld-wen Holding, Inc. · NYSE:JELD
Jeld-wen — Q1 2024 Earnings Presentation
31 slides from Jeld-wen's earnings presentation, May 7, 2024
Slide 1: First Quarter 2024 Results
First Quarter 2024 Results May 6, 2024
Slide 2: Speakers
Speakers Bill Christensen CEO Julie Albrecht CFO
Slide 3: Disclosures
Disclosures Certain statements in this presentation, including our guidance and business strategies, are forward- looking statements that involve risk, uncertainty and assumptions, and are based on information as of May 6, 2024. Actual results may differ materially from those set forth in such state
Slide 4: First Quarter 2024 Highlights
First Quarter 2024 Highlights First Quarter 2024 ▪ Sales of $959 million ▪ Adjusted EBITDA of $69 million – 7.2% of Sales ▪ In early April, announced two NA site closures to streamline operations FOCUSED ON STRENGTHENING OUR FOUNDATION 4
Slide 5: Q1 2024 Foundational Actions
Q1 2024 Foundational Actions People Performance Culture & Capabilities Cost Reduction ▪ Held global leadership meeting ▪ Announced closure of 2 North America facilities ▪ Began training ~1,600 leaders ▪ Increased CAPEX spending ONGOING TRANSFORMATION ACTIVITY 5
Slide 6: Q1 2024 Financial Results
Q1 2024 Financial Results
Slide 7: Q1 2024 Financial Summary
Q1 2024 Financial Summary USD in Millions Net Revenue Adjusted EBITDA Adjusted EBITDA Margin -11% -13% -10 bps $1,081 7.3% 7.2% $79 $959 $69 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Core Revenue down (12%) driven Productivity improvements more than by lower volume / mix offset by lower volume
Slide 8: Q1 2024 Revenue Bridge
Q1 2024 Revenue Bridge USD in Millions $1,081 $1 (12%) $4 $959 ($127) Core Revenue (12%) Q1 2023 Price Volume / Mix Foreign Exchange Q1 2024 LOWER VOLUME / MIX REFLECTS MARKET HEADWINDS 8
Slide 9: Q1 2024 Adjusted EBITDA Bridge
Q1 2024 Adjusted EBITDA Bridge USD in Millions $79 ($2) $11 $69 $12 ($31) Adj. Margin Adj. Margin 7.3% 7.2% Q1 2023 Price / Cost Volume / Mix Productivity SG&A / Other Income Q1 2024 PRODUCTIVITY PARTIALLY MITIGATES LOWER VOLUME / MIX 9
Slide 10: Q1 2024 Segment Results
Q1 2024 Segment Results USD in Millions Q1 2023 Q4 2023 Segment Highlights North America Q1 2024 (Prior Year) (Previous Quarter) Net Revenue $680 $768 $748 ▪ Lower volume / mix Adjusted EBITDA $61 $79 $94 - North America down (11%) Adjusted EBITDA margin 9.0% 10.3% 12.6% - Europe down (14%) ▪ Delive
Slide 11: Market Outlook
Market Outlook North America Europe Mid Single-Digit Low Double-Digit Volume Decline Volume Decline New single-family construction Residential construction Up low-single digits High-single digit decline Repair & Remodel Commercial projects Down mid-to-high single digits Down by low double-digits 11
Slide 12: Market Assumption Changes vs. Original Guidance
Market Assumption Changes vs. Original Guidance Current Previous Change (May 2024) (February 2024) North America Single Family Up low single digits Flat to up slightly Housing starts improving with top builders Repair & Remodel Down mid-to-high single Down low to mid-single Slow real income growth /
Slide 13: Transformation Journey
Transformation Journey
Slide 14: Two-Pronged Approach
Two-Pronged Approach Short Term Long Term Strengthen Profitable Foundation Growth PEOPLE, PERFORMANCE & STRATEGY 14
Slide 15: Key Levers
Key Levers People Performance Culture & Growth Cost Capabilities ▪ Safety-first mindset ▪ Increase salesforce ▪ Invest in process ▪ Improve organizational efficiency automation health ▪ Upgrade go-to-market ▪ Consolidate footprint ▪ Align accountability process ▪ Utilize scale and and incentives ▪ O
Slide 16: Performance: Windows Stock and Service Program
Performance: Windows Stock and Service Program Meeting Customer Needs by Leveraging our Strengths 5-year Expected Cumulative Financial Impact ✓ Pre-stock selection of vinyl windows ✓ High-volume SKUs with 9-day or next truck guarantee >$5 Million EBITDA Benefit ✓ White glove service <$1 Million ✓ Ta
Slide 17: Performance: Auraline Product Line Exit
Performance: Auraline Product Line Exit Making Decisions to Optimize Portfolio 5-year Expected Cumulative Financial Impact ✓ Not achieving business plan milestones ✓ Sharp input cost increase >$20 Million EBITDA Benefit ~$21 Million* Expense / Capital Investment ~14% IRR * Approximately $14 million
Slide 18: 2024 Guidance
2024 Guidance
Slide 19: 2024 Guidance
2024 Guidance Previous Current Drivers to Net Revenue Updated Guidance Net Revenue $4.0B to $4.3B $3.9B to $4.1B Core Revenue ▪ Interest rates Core Revenue Flat to Down (7%) ▪ Slower seasonal demand Down (5%) to (9%) ▪ One-time site closure costs Adjusted EBITDA ▪ $100M cost savings on track Adjuste
Slide 20: Updated 2024 Cash Flow Outlook
Updated 2024 Cash Flow Outlook* Previous Current Operating Cash Flow Operating Cash Flow ~$250M Lower EBITDA Drives ~$225M Updated Guidance Cap Ex Cap Ex $150M to $200M $150M to $175M Free Cash Flow Free Cash Flow $50M to $100M $50M to $75M *Includes ~$100 million of non-recurring transformation jou
Slide 21: JELD-WEN Going Forward
JELD-WEN Going Forward Address Reposition Improve Capital Priorities Transparency Allocation UNLOCKING SIGNIFICANT SHAREHOLDER VALUE 21
Slide 22: Appendix
Appendix
Slide 23: Net Revenue Walk
Net Revenue Walk Q1 2024 JELD-WEN North America Europe Price -% (1%) 2% Volume / Mix (12%) (11%) (14%) Core Revenue Growth (12%) (12%) (12%) FX 1% ‒ 1% Total (11.2%) (11.5%) (10.7%) 23
Slide 24: Updated Key Assumptions for 2024
Updated Key Assumptions for 2024 USD in Millions Key Assumption 2024 Estimate Previous 2024 Estimate Depreciation and Amortization ~$130 ~$130 Interest Expense, net $65 to $70 $75 to $80 Tax Rate (Adjusted Earnings) ~27% ~27% Diluted Share Count ~87 million ~86 million ✓ Full-year EBITDA split ~40%
Slide 25: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow USD in Millions Cash Flow Q1 2024 Q1 2023 Net cash used in operating activities ($11) ($1) Capital Expenditures(1) ($35) ($24) Free Cash Flow(2) ($46) ($24) Balance Sheet(3) March 30, 2024 December 31, 2023 Total Debt $1,220 $1,226 Cash $234 $288 Net Debt(4) $986 $938 Div
Slide 26: Q1 2024 and Q1 2023 Adjusted Net Income Reconciliation
Q1 2024 and Q1 2023 Adjusted Net Income Reconciliation USD in Millions Three Months Ended March 30, 2024 April 1, 2023 (Loss) income from continuing operations, net of tax $ (27.7) $ 8.5 Special items:(1) Net legal and professional expenses and settlements 17.2 1.8 Restructuring and asset-related ch
Slide 27: Q1 2024 and Q1 2023 Adjusted Net Income Per Share Reconciliation
Q1 2024 and Q1 2023 Adjusted Net Income Per Share Reconciliation Three Months Ended March 30, 2024 April 1, 2023 Diluted (loss) income per share from continuing operations $ (0.32) $ 0.10 Special items:(1) Net legal and professional expenses and settlements 0.20 0.02 Restructuring and asset-related
Slide 28: Adjusted EBITDA From Continuing Operations Reconciliation
Adjusted EBITDA From Continuing Operations Reconciliation USD in Millions Three Months Ended March 30, 2024 April 1, 2023 (Loss) income from continuing operations, net of tax $ (27.7) $ 8.5 Income tax (benefit) expense (3.4) 3.5 Depreciation and amortization(1) 41.4 28.3 Interest expense, net 15.7 2
Slide 29: Q1 2024 Segment Adjusted EBITDA Reconciliation
Q1 2024 Segment Adjusted EBITDA Reconciliation USD in Millions Three Months Ended March 30, 2024 Corporate Total North and Total Europe Operating America Unallocated Consolidated Segments Costs Income (loss) from continuing operations, net of tax $ 16.3 $ - $ 16.3 $ (44.0) $ (27.7) Income tax expens
Slide 30: Q1 2023 Segment Adjusted EBITDA Reconciliation
Q1 2023 Segment Adjusted EBITDA Reconciliation USD in Millions Three Months Ended April 1, 2023 Corporate Total North and Total Europe Operating America Unallocated Consolidated Segments Costs Income (loss) from continuing operations, net of tax $ 35.2 $ 7.3 $ 42.5 $ (34.1) $ 8.5 Income tax expense
Slide 31: Q4 2023 Segment Adjusted EBITDA Reconciliation
Q4 2023 Segment Adjusted EBITDA Reconciliation USD in Millions Three Months Ended December 31, 2023 Total Corporate and Total North America Europe Operating Unallocated Consolidated Segments Costs Income (loss) from continuing operations, net of tax $49.0 ($32.0) $17.0 ($39.7) ($22.6) Income tax exp