Jeld-wen Holding, Inc. · NYSE:JELD
Jeld-wen — Q3 2021 Earnings Presentation
20 slides from Jeld-wen's earnings presentation, Nov 1, 2021
Slide 1: Third Quarter 2021 Results
Third Quarter 2021 Results November 1, 2021
Slide 2: Disclosures
Disclosures Forward-Looking Statements This presentation contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements by our CEO and statements regarding our business strategies and ability to execute on our plans, mar
Slide 3: Introduction
Introduction Gary S. Michel Chairman, President and CEO
Slide 4: Strategic Growth Drivers Delivering Results
Strategic Growth Drivers Delivering Results World-Class Financial Performance and Shareholder Returns • JEM operating system and values-based culture driving differentiation Accelerate Operational Excellence and Cash Flow and Disciplined Capital Premier Performing Organic Growth Culture Margin Expan
Slide 5: Q3 Highlights
Q3 Highlights • Revenue increased 3% driven by 2% core revenue growth • Fifth consecutive quarter of core revenue growth • Over twelve consecutive quarters of favorable pricing in excess of material inflation • Price realization accelerated to 7%, including 10% in the North America segment • Strong
Slide 6: Creating a Premier Performance Culture
Creating a Premier Performance Culture RESULT S-DRIVEN BEHAVIOR TO BEHAVIOR-DRIVEN RESULT S Actions Habits Values Beliefs Exter nal Environment JEM Response • Supply chain disruptions • Drove capacity expansion and reduced cycle time • Material, freight and labor inflation • Insourced and substitute
Slide 7: Compelling Investment Opportunity
Compelling Investment Opportunity Proven WORLD-CLASS Multi-faceted STRATEGY FRANCHISE GROWTH and BUSINESS with BREADTH STRATEGY OPERATING and SCALE SYSTEM ō Repurchased 7.8 million shares in Q3 and 9.7 million year-to-date 7
Slide 8: Financial Review
Financial Review John Linker Executive Vice President and CFO
Slide 9: Q3 2021 Financial Summary
Q3 2021 Financial Summary USD in millions Net Revenue Adjusted EBITDA Adjusted EBITDA Margin Core Core Core 2% (26%) (310 bps) $1,112.9 $1,146.6 $130.7 11.7% $98.9 8.6% Q3 20 Q3 21 Q3 20 Q3 21 Q3 20 Q3 21 Strong demand and pricing offset by revenue throughput constraints, supply chain disruptions, a
Slide 10: Q3 2021 Net Revenue Walk
Q3 2021 Net Revenue Walk JELD-WEN North America Europe Australasia Q3 2021 Pricing 7% 10% 4% 2% Volume/Mix (5%) (8%) (2%) 1% Core Revenue Growth 2% 2% 2% 3% Acquisitions 0% 0% 0% 0% FX 1% 0% 2% 3% Total 3.0% 2.1% 3.7% 5.8% 2021 YTD Pricing 6% 8% 3% 1% Volume/Mix 3% 2% 5% 4% Core Revenue Growth 9% 10
Slide 11: Q3 2021 Segment Performance
Q3 2021 Segment Performance Adj. EBITDA Margin bps Net Revenue vs. PY Adj. EBITDA vs. PY vs. PY 5.8% 3.7% 2.1% As Reported (5.0%) (140) (16.8%) (250) (40.5%) (550) 3% 2% 2% Core (ex. FX & MA) (7%) (120) (17%) (250) (40%) (530) North Europe Australasia North Europe Australasia North Europe Australasi
Slide 12: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow USD in millions Balance Sheet September 25, 2021 December 31, 2020 Total Debt $1,715.6 $1,768.0 Cash $443.9 $735.8 Total Net Debt $1,271.7 $1,032.2 Net Debt / Adjusted EBITDA 2.8x 2.3x Cash Flow YTD 2021 YTD 2020 Adjusted Operating Cash Flow $181.6 $227.5 Capital Expendit
Slide 13: Outlook
Outlook
Slide 14: 2021 Outlook
2021 Outlook USD in millions 2021 REVENUE ADJUSTED CAPITAL GROW TH EBITDA EXPENDITURES 10% to 12% $465 to 480 $100 to $110 Outlook driven by healthy backlog, accelerating order activity, and improving throughput; Pricing offsetting material and freight inflation 1414
Slide 15: Positive Fundamentals For End Market Demand
Positive Fundamentals For End Market Demand North America Europe Australasia Strong intermediate and long-term Core end markets supportive of growth: Record housing activity expected housing fundamentals: • Replace and remodel market following multi-year housing recession: • Underbuilt residential n
Slide 16: Foundation for Accelerating Growth
Foundation for Accelerating Growth VPI Multi Family Windows Energy Efficient and Composite Expansion Window Innovations Smart Door Connected Systems Customer Experience Sustainable Eco Door Options Innovation Investments in innovation and new product offerings driving growth 16
Slide 17: JEM Video
JEM Video 17
Slide 18: NON-GAAP Reconciliation: Adjusted EBITDA
NON-GAAP Reconciliation Adjusted EBITDA USD in millions Three Months Ended Nine Months Ended September 25, September 26, September 25, September 26, (amounts in millions) 2021 2020 2021 2020 Net income $ 40.5 $ 25.5 $ 126.7 $ 48.3 Income tax (benefit) expense (2.9) 16.0 29.8 27.6 Depreciation and am
Slide 19: NON-GAAP Reconciliation: Adjusted Net Income
NON-GAAP Reconciliation Adjusted Net Income USD in millions Three Months Ended Nine Months Ended September September September September (amounts in millions, except share and per share data) 25, 2021 26, 2020 25, 2021 26, 2020 Net income $ 40.5 $ 25.5 $ 126.7 $ 48.3 Legal costs and professional exp
Slide 20: NON-GAAP Reconciliation: Adjusted Free Cash Flow and Net Debt Leverage
NON-GAAP Reconciliation Adjusted Free Cash Flow and Net Debt Leverage USD in millions Nine Months Ended September 25, September 26, 2021 2020 Net cash provided by operating activities $ 135.3 $ 210.6 Plus legacy legal settlements 45.0 16.9 Plus adjustments for secondary offering expenses 1.3 — Adjus