Jeld-wen Holding, Inc. · NYSE:JELD
Jeld-wen — Q4 2017 Earnings Presentation
21 slides from Jeld-wen's earnings presentation, Feb 21, 2018
Slide 1: Q4 and Full Year 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, the estimated impact of tax reform on our results, litigation outcomes, ou
Slide 3: Introduction
Introduction Mark Beck, President and CEO 3
Slide 4: Fourth Quarter Highlights
Fourth Quarter Highlights Net revenues increased 0.3% for the quarter, bringing full year total to 2.6% - Normalized Q4 core revenue growth of approximately 3% excluding headwinds from volume impact of five fewer shipping days and Florida business line rationalization Net income impacted by non-
Slide 5: Segment Highlights
Segment Highlights North America Europe Australasia Q4 2017 FY 2017 Q4 2017 FY 2017 Q4 2017 FY 2017 Core Growth (7%) (1%) Core Growth (2%) 2% Core Growth (5%) 1% Adj EBITDA Margin (40 bps) 100 bps Adj EBITDA Margin 30 bps 50 bps Adj EBITDA Margin 160 bps 160 bps Ex-shipping days and Florida Good
Slide 6: Margin and Cash Flow Improvement
Margin and Cash Flow Improvement USD in millions Adjusted EBITDA Margins Free Cash Flow $202.7 11.6% 10.7% 9.2% $122.2 $94.7 6.6% ($49.1) 2014 2015 2016 2017 2014 2015 2016 2017 TRACK RECORD OF CONSISTENT MARGIN AND CASH FLOW IMPROVEMENT 6
Slide 7: Financial Review
Financial Review Brooks Mallard, EVP and Chief Financial Officer 7
Slide 8: Q4 and FY 2017 Financial Summary
Q4 and FY 2017 Financial Summary USD in millions (except for per share items) Q4 FY 2017 YoY Change 2017 YoY Change Net Revenues $976.0 0.3% $3,763.9 2.6% Gross Margin $205.7 (1.6%) $848.2 9.5% Gross Margin Percent 21.1% (40) bps 22.5% 140 bps Net Income ($93.7) N/M $10.8 N/M EPS – Diluted (1) ($0.8
Slide 9: Q4 and FY 2017 Net Revenues Walk
Q4 and FY 2017 Net Revenues Walk Q4 2017 JELD-WEN North America Europe Australasia Pricing 1% 2% 1% 1% Volume/Mix (7%) (9%) (3%) (6%) Core Growth (6%) (7%) (2%) (5%) Acquisitions 4% 4% 3% 4% FX 2% - 7% 2% Total 0.3% (3.3%) 7.8% 1.3% FY 2017 Pricing 1% 2% 1% 1% Volume/Mix (1%) (3%) 1% - Core Growth -
Slide 10: North America Segment Performance
North America Segment Performance USD in millions Q4 FY 2017 YoY Change 2017 YoY Change Net Revenues $550.3 (3.3%) $2,158.1 0.4% Adjusted EBITDA $61.1 (6.9%) $273.6 8.6% Adjusted EBITDA Margin 11.1% (40) bps 12.7% 100 bps Wood Windows Vinyl Windows Interior Doors Exterior Doors Wall Systems MARGIN E
Slide 11: Europe Segment Performance
Europe Segment Performance USD in millions Q4 FY 2017 YoY Change 2017 YoY Change Net Revenues $276.4 7.8% $1,042.8 3.4% Adjusted EBITDA $35.3 9.7% $132.9 8.4% Adjusted EBITDA Margin 12.8% 30 bps 12.7% 50 bps Residential Doors Commercial Doors Fire Resistant Sound Dampening Security Doors STRONG REVE
Slide 12: Australasia Segment Performance
Australasia Segment Performance USD in millions Q4 FY 2017 YoY Change 2017 YoY Change Net Revenues $149.2 1.3% $563.1 10.6% Adjusted EBITDA $21.2 14.6% $74.7 25.5% Adjusted EBITDA Margin 14.2% 160 bps 13.3% 160 bps Windows Doors Shower Enclosures Closet Systems Specialty Windows STRONG PERFORMANCE F
Slide 13: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow USD in millions Balance Sheet and Liquidity December 31, 2017 December 31, 2016(1) Total Debt $1,273.7 $1,620.0 Cash $220.2 $102.7 Total Net Debt $1,053.5 $1,517.3 Net Debt / Adjusted EBITDA 2.4x 3.9x Liquidity (2) $512.2 $381.9 Cash Flow 2017 2016 Cash Flow From Operatio
Slide 14: Tax Reform
Tax Reform USD in millions Preliminary Management Estimates of Tax Reform Impact Pre-Tax Reform: 28% to 32% Book Tax Rate Post-Tax Reform: 23% to 27% Pre-Tax Reform: Mid-teens Cash Tax Rate Post-Tax Reform: Unchanged Limited ability to expense cap ex due to current NOL Capital Expenditures tax asset
Slide 15: Summary and 2018 Outlook
Summary and 2018 Outlook Mark Beck, President and Chief Executive Officer 15
Slide 16: 2018 Market Growth Assumptions
2018 Market Growth Assumptions 2018 Market Volume Growth Rates (1) Residential New JELD-WEN Segment Residential R&R Non-Residential Construction North America (57% of total) 4 - 6% 2 - 4% N/M Europe (28% of total) 1 - 3% 0 - 2% 1 - 3% Australasia (15% of total) (6 - 8%) 1 - 3% N/M (1) Management est
Slide 17: 2018 Outlook
2018 Outlook USD in millions 2017 Actual 2018 Outlook Net Revenue Growth 2.6% 8.0% to 11.0% (1) Core Revenue Growth ~0% ~3% Adj. EBITDA $437.6 $500 to $530 Adj. EBITDA Margin 90 bps 100 to 150 bps Improvement Capital Expenditures $63.0 $100 to $120 Free Cash Flow Greater than Adj. Net Income Greater
Slide 18: Balanced Approach to Margin Expansion
Balanced Approach to Margin Expansion JELD-WEN Adj. EBITDA M argin Target* Acquisitions 15-20% Drive margin accretive M&A through: Profitable Organic Growth • Target cultivation Operating leverage • Disciplined valuations Operational Excellence • Effective integration Innovative new products •
Slide 19: Appendix
Appendix 19
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation Adjusted EBITDA (USD in millions) Three Months Ended Twelve Months Ended December 31, December 31, December 31, December 31, 2017 2016 2017 2016 Net (loss) income $ (93.7) $ 258.2 $ 10.8 $ 377.2 Income from discontinued operations, net of tax — 0.5 — 3.3 Equity earnings of no
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation Adjusted EPS & Free Cash Flow (USD in millions) Three Months Twelve Months Ended Ended December 31, December 31, (amounts in millions, except share and per share data) 2017 2017 Net (loss) income attributable to common shareholders $ (93.7) $ 0.3 Undeclared preferred stock di