Jeld-wen Holding, Inc. · NYSE:JELD
Jeld-wen — Q2 2019 Earnings Presentation
22 slides from Jeld-wen's earnings presentation, Aug 7, 2019
Slide 1: Second-Quarter 2019 Results Presentation
SECOND-QUARTER 2019 RESULTS PRESENTATION August 7, 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 Demonstrated progress on productivity initiatives and footprint rationalization and modernization projects Realized favorable price vs. cost inflation Delivered strong core adjusted EBITDA margin expansion in North America and Australasia despite volume headwinds North America
Slide 5: Second Quarter Summary
SECOND QUARTER SUMMARY Financial Summary Q2 net revenues decreased 4.6% driven primarily by 5% contraction from volume/mix and 3% FX headwind, partially offset by price Net income of $22.4 million, a decrease of $12.4 million Diluted EPS was $0.22 cents, down $0.10 cents compared to prior year
Slide 6: Market Update
MARKET UPDATE North America – New Construction North America – Repair & Remodel Single family new construction starts and Mixed demand in 1H 2019, remain cautious in permits lower than anticipated in 1H 2019 2H Q2 demand weaker than expected, U.S. Census data shows 2nd quarter particularly i
Slide 7: Global Footprint Rationalization Update
GLOBAL FOOTPRINT RATIONALIZATION UPDATE Global Facility Footprint Rationalization Plan Objectives (Square Feet in millions) Leverage acquired assets and JEM tools to 3.2M FT2 3.2M FT2 reduce global facility footprint and increase efficiency Reduce complexity Increase capacity 1.4M FT2 2020+ Fu
Slide 8: New Product Introduction – Composite Window
NEW PRODUCT INTRODUCTION – COMPOSITE WINDOW Auraline™ Composite Window Proprietary technology using JELD-WEN exclusive blend of materials Beauty of wood with durability of vinyl Integrated color resists scratches and never needs painting Composite offers better structural properties than vin
Slide 9: Financial Review
FINANCIAL REVIEW John Linker, Executive Vice President and CFO |
Slide 10: Q2 2019 Financial Summary
Q2 2019 FINANCIAL SUMMARY USD in millions NET REVENUES Adj. EBITDA Adj. EBITDA Margin Core Core Core (3%) (3%) FLAT (4.6%) (4.9%) 0 bps $1,172.5 $1,119.0 $134.1 11.4% 11.4% $127.6 2Q18 2Q19 2Q18 2Q19 2Q18 2Q19 CORE MARGINS FLAT VS. PRIOR YEAR DESPITE LOWER REVENUES Cor e excl udes i mpact of F X and
Slide 11: Q2 2019 Net Revenues Walk
Q2 2019 NET REVENUES WALK JELD-WEN North America Europe Australasia Q2 2019 Pricing 2% 3% 2% 0% Volume/Mix (5%) (6%) (2%) (11%) Core Growth (3%) (3%) 0% (11%) Acquisitions 1% 2% 0% 0% FX (3%) (0%) (6%) (6%) Total (4.6%) (0.7%) (5.7%) (16.8%) YTD 2019 Pricing 2% 4% 1% 0% Volume/Mix (4%) (6%) (0%) (8%
Slide 12: North America Segment Performance
NORTH AMERICA SEGMENT PERFORMANCE USD in millions NET REVENUES Adj. EBITDA Adj. EBITDA Margin Core Core Core (3%) -1% +7% +120 bps Core(1) (0.7%) 9.7% 130 bps $87.5 13.1% $673.2 $668.4 $79.8 11.8% 2Q18 2Q19 2Q18 2Q19 2Q18 2Q19 STRONG CORE MARGIN EXPANSION CONTINUES IN NORTH AMERICA Cor e excl udes i
Slide 13: Europe Segment Performance
EUROPE SEGMENT PERFORMANCE USD in millions NET REVENUES Adj. EBITDA Adj. EBITDA Margin Core Up 1% Core Core Flat (11%) (130 bps) Core(1) (5.7%) (21.8%) (190 bps) $318.7 $37.1 11.6% $300.4 9.7% $29.0 2Q18 2Q19 2Q18 2Q19 2Q18 2Q19 POSITIVE PRICING REALIZATION OFFSET BY FX, VOLUME/MIX, AND INEFFICIENCI
Slide 14: Australasia Segment Performance
AUSTRALASIA SEGMENT PERFORMANCE USD in millions NET REVENUES Adj. EBITDA Adj. EBITDA Margin Core -2% Core Core (11%) (3%) +110 bps Core(1) (16.8%) (11.9%) +80 bps $180.6 $24.1 13.4% 14.2% $150.2 $21.3 2Q18 2Q19 2Q18 2Q19 2Q18 2Q19 CORE MARGIN EXPANSION DESPITE SIGNIFICANT MARKET HEADWINDS Cor e excl
Slide 15: Balance Sheet and Cash Flow
BALANCE SHEET AND CASH FLOW Balance Sheet and Liquidity June 29, 2019 December 31, 2018 Total Debt $1,570.6 $1,477.9 Cash $119.6 $117.0 Total Net Debt $1,451.1 $1,360.9 Net Debt / LTM Adjusted EBITDA 3.2x 3.0x Liquidity (1) $281.6 $380.2 Cash Flow Q2 YTD 2019 Q2 YTD 2018 Cash Flow From Operations $4
Slide 16: 2019 Outlook
2019 OUTLOOK |
Slide 17: 2019 Revised Outlook
2019 REVISED OUTLOOK Third Quarter 2019 Outlook Q3 2019 Outlook Note: Q3 2018 included $7.3 legal Approximately 26% to 27% of Full Year settlement income not expected to recur in Adjusted EBITDA 2019 Adjusted EBITDA 2019. Represents ~60 bps headwind to core margins in the quarter. Full Year 2019 Out
Slide 18: 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 18 |
Slide 19: Appendix
(PM JELD WEN
Slide 20: Non-GAAP Reconciliation: Adjusted EBITDA
NON-GAAP RECONCILIATION ADJUSTED EBITDA (USD IN MILLIONS) Three Months Ended Six Months Ended June 29, June 30, 2019 2018 June 29, 2019 June 30, 2018 Net income $ 22.4 $ 34.7 $ 38.1 $ 75.1 Equity earnings of non-consolidated entities — — — (0.7) Income tax expense 12.2 22.7 22.5 18.5 Depreciation an
Slide 21: 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 Six Months Ended June 29, June 30, June 29, June 30, (amounts in millions, except share and per share data) 2019 2018 2019 2018 Net income attributable to common shareholders $ 22.4 $ 34.8 $ 38.1 $ 75
Slide 22: Adjustments to Previously Reported Financial Information
ADJUSTMENTS TO PREVIOUSLY REPORTED FINANCIAL INFORMATION (USD IN MILLIONS) During the quarter ended June 29, 2019, we identified errors relating to accounting for fulfillment costs associated with our installation contracts at one of our European business units. This resulted in errors in accounts r