Jeld-wen Holding, Inc. · NYSE:JELD
Jeld-wen — Q3 2023 Earnings Presentation
29 slides from Jeld-wen's earnings presentation, Nov 7, 2023
Slide 1: Third Quarter 2023 Results
Third Quarter 2023 Results November 6, 2023
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 November 6, 2023. Actual results may differ materially from those set forth in such
Slide 4: Third Quarter 2023 Highlights
Third Quarter 2023 Highlights Third Quarter 2023 ▪ Sales of $1,077 million ▪ Adjusted EBITDA of $106 million ✓ 9.8% of Sales ✓ 150 bps above Q3 2022 ▪ Generated strong cash flows ▪ Completed Australasia divestiture ▪ 2023 cost savings on track DELIVERING ON OUR COMMITMENTS 4
Slide 5: Completed or Announced Closures
Completed or Announced Closures Further Actions in Q3 Completed Announced Atlanta, Georgia IWP, Mexico Vista, California ▪ Interior door manufacturing ▪ Exterior door site located in ▪ Vinyl window manufacturing site Tijuana site ▪ Returned site to owner in ▪ Expected to end production ▪ Production
Slide 6: Q3 2023 Financial Results
Q3 2023 Financial Results
Slide 7: Q3 2023 Financial Summary
Q3 2023 Financial Summary USD in Millions Net Revenue Adjusted EBITDA Adjusted EBITDA Margin -5.5% +12% +150 bps $1,140 $106 $1,077 $95 9.8% 8.3% Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Core Revenue down 7% Adjusted EBITDA driven by solid price / cost and productivity (Lower volume / mix wit
Slide 8: Q3 2023 Revenue Bridge
Q3 2023 Revenue Bridge USD in Millions $37 +3% $1,140 (10%) $13 $1,077 +1% ($113) Core Revenue (7%) Q3 2022 Price Volume / Mix Foreign Exchange Q3 2023 LOWER VOLUME / MIX PARTIALLY OFFSET BY PRICING 8
Slide 9: Q3 2023 Adjusted EBITDA Bridge
Q3 2023 Adjusted EBITDA Bridge USD in Millions $34 $21 $106 ($3) $95 Includes ~$9M SG&A cost savings ($41) Adj. Margin Adj. Margin 8.3% 9.8% Q3 2022 Price / Cost Volume / Mix Productivity SG&A / FX / Other Q3 2023 SOLID PRICE / COST AND PRODUCTIVITY 9
Slide 10: Q3 2023 Segment Results
Q3 2023 Segment Results USD in Millions Segment Highlights North America Q3 2023 Q3 2022 Q2 2023 Net Revenue $790 $835 $817 ▪ Europe margins up 260 basis Adjusted EBITDA $100 $105 $109 points Adjusted EBITDA margin 12.6% 12.6% 13.3% ▪ Lower volume / mix in North Europe Q3 2023 Q3 2022 Q2 2023 Americ
Slide 11: Market Outlook
Market Outlook Lower Global Demand in 2023 North America Europe High-Single Digit Low-Double Digit Volume Decline Volume Decline New single-family home Weaker residential construction construction down 10% to 15% Flat demand in commercial R&R down mid-single digits 11
Slide 12: 2023 Outlook
2023 Outlook 2023 2023 Net Revenue Adjusted EBITDA $4.25B to $4.35B $365M to $375M Core Revenue down 4%-6% Lower volumes, favorable price / Low double-digit cost and ongoing cost reductions volume / mix decline INCREASING FULL YEAR EBITDA OUTLOOK 12
Slide 13: 2023 Outlook Drivers vs. Previous Expectations
2023 Outlook Drivers vs. Previous Expectations YTD Q3 Q4 Full Year Actuals Outlook Volume / Mix + = Low Double-Digit Decline YOY Price / Cost + = Positive; Better than Anticipated Cost Initiatives + = On Track to Deliver ~$100 Million Better On Plan Worse YTD Q3 PRICE / COST BETTER THAN ANTICIPATED
Slide 14: JELD-WEN's Transformation Journey
JELD-WEN’s Transformation Journey
Slide 15: 2021 Investor Day Recap
2021 Investor Day Recap All previous long-term guidance is rescinded 2021 JELD-WEN Investor Day Observations ▪ No clear roadmap ▪ Foundation did not equal aspiration ▪ Underinvested INCREASED FOCUS ON ACCOUNTABILITY 15
Slide 16: Two-Pronged Approach
Two-Pronged Approach Short Term Long Term Strengthen Profitable Foundation Growth PEOPLE, PERFORMANCE & STRATEGY 16
Slide 17: JELD-WEN's Transformation Journey
JELD-WEN’s Transformation Journey Phase 1 Fix the Foundation ✓ Under Way Phase 2 People & Performance ▪ Sequencing Phase 3 Long Term Profitable ▫ Still to Come Growth 17
Slide 18: Fix the Foundation – 2023 Accomplishments
Fix the Foundation – 2023 Accomplishments Simplified ▪ Sold Australasia business Structure ▪ Transaction closed July 2023 ▪ Repaid $450M in Long-term Debt Strengthened ▪ Net Leverage of 2.7x at end of Q3 Balance Sheet ▪ Significant Working Capital Reduction Adjusted Cost ▪ $100M cost savings on trac
Slide 19: People & Performance Key Levers
Phase 2 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 incent
Slide 20: JELD-WEN Going Forward
JELD-WEN Going Forward Resetting the Bar Address Reposition Improve Capital Priorities Transparency Allocation UNLOCKING SIGNIFICANT VALUE FOR SHAREHOLDERS 20
Slide 21: Appendix
Appendix
Slide 22: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow USD in Millions Cash Flow Q3 2023 Q3 2022 Net cash provided by (used in) operating activities $273 ($73) Capital Expenditures(1) ($80) ($57) Free Cash Flow(2) $193 ($131) Balance Sheet(3) September 30, 2023 December 31, 2022 Total Debt $1,234 $1,747 Cash $239 $165 Net Deb
Slide 23: Net Revenue Walk
Net Revenue Walk Q3 2023 JELD-WEN North America Europe Price 3% 2% 6% Volume / Mix (10%) (7%) (17%) Core Revenue Growth (7%) (5%) (11%) FX 1% ‒ 5% Total (5.5%) (5.4%) (6.0%) YTD Q3 2023 JELD-WEN North America Europe Price 6% 6% 8% Volume / Mix (8%) (6%) (14%) Core Revenue Growth (2%) ‒ (6%) FX ‒ (1%
Slide 24: YTD Q3 2023 Revenue Bridge
YTD Q3 2023 Revenue Bridge USD in Millions $216 +6% (8%) $3,365 $3,283 ($282) ($16) Core Revenue (2%) YTD 2022 Price Volume / Mix Foreign Exchange YTD 2023 LOWER VOLUME / MIX PARTIALLY OFFSET BY HIGHER YOY PRICING 24
Slide 25: YTD Q3 2023 Adjusted EBITDA Bridge
YTD Q3 2023 Adjusted EBITDA Bridge USD in Millions $129 $36 ($92) $294 $271 ($50) Includes ~$30M SG&A cost savings Adj. Margin Adj. Margin 8.0% 9.0% YTD 2022 Price / Cost Volume / Mix Productivity SG&A / FX / Other YTD 2023 SOLID PRICE / COST & PRODUCTIVITY BENEFITS 25
Slide 26: Adjusted EBITDA From Continuing Operations Reconciliation
Adjusted EBITDA From Continuing Operations Reconciliation USD in Millions Three Months Ended Nine Months Ended September 30, September 24, September 30, September 24, 2023 2022 2023 2022 Income (loss) from continuing operations, net of tax $ 16.9 $ (45.1) $ 47.9 $ (13.7) Income tax expense 17.4 11.7
Slide 27: Q3 2023 Segment Adjusted EBITDA Reconciliation
Q3 2023 Segment Adjusted EBITDA Reconciliation Three Months Ended September 30, 2023 Total Corporate and Total (Amounts in millions) North America Europe Operating Unallocated Consolidated Segments Costs Income (loss) from continuing operations, net of tax $40.5 $10.7 $51.1 ($34.2) $16.9 Income tax
Slide 28: Q2 2023 Segment Adjusted EBITDA Reconciliation
Q2 2023 Segment Adjusted EBITDA Reconciliation Three Months Ended July 1, 2023 Total Corporate and Total (Amounts in millions) North America Europe Operating Unallocated Consolidated Segments Costs Income (loss) from continuing operations, net of tax $51.3 $10.7 $61.9 $(39.4) $22.5 Income tax expens
Slide 29: Q3 2022 Segment Adjusted EBITDA Reconciliation
Q3 2022 Segment Adjusted EBITDA Reconciliation Three Months Ended September 24, 2022 Total Corporate and Total (Amounts in millions) North America Europe Operating Unallocated Consolidated Segments Costs Income (loss) from continuing operations, net of tax $81.0 ($53.7) $27.3 ($72.4) ($45.1) Income