Jeld-wen Holding, Inc. · NYSE:JELD
Jeld-wen — Q1 2023 Earnings Presentation
29 slides from Jeld-wen's earnings presentation, May 9, 2023
Slide 1: First Quarter 2023 Results
First Quarter 2023 Results May 8, 2023
Slide 2: Today's Speakers
Today’s 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 8, 2023. Actual results may differ materially from those set forth in such state
Slide 4: First Quarter 2023 Highlights
First Quarter 2023 Highlights First Quarter ▪ Sales of $1,223 million ▪ Adjusted EBITDA of $94 million ▪ Positive price/cost across the company ▪ Lowering costs while improving customer satisfaction ▪ Reducing inventory throughout the system Solid Start to the Year 4
Slide 5: Two-Pronged Approach
Two-Pronged Approach Short Term Long Term Strengthen Profitable Foundation Growth People, Performance & Strategy 5
Slide 6: Sale of Australasia Business to Platinum Equity
Sale of Australasia Business to Platinum Equity Completed Strategic Review Executing on Near-Term Strategy ▪ Announced sale of Australasia segment ▪ Simplifying JELD for approximately AU $688 million - Focus on two largest segments, North - Transaction expected to close in Q3 2023 America and Europe
Slide 7: Strengthening the Foundation
Strengthening the Foundation Implementing Near-Term Value Streams that are Already Driving Results Improve Drive Optimize Operating Commercial Network Efficiency Excellence Footprint Focused on Execution 7
Slide 8: JELD-WEN Going Forward: Resetting the Bar
JELD-WEN Going Forward Resetting the Bar Address Reposition Improve Capital Priorities Transparency Allocation Significant Opportunities in the Quarters and Years to Come 8
Slide 9: Q1 2023 Financials
Q1 2023 Financials
Slide 10: Q1 2023 Financial Summary
Q1 2023 Financial Summary USD in Millions Net Revenue Adjusted EBITDA Adjusted EBITDA Margin +4.4% +16.6% +80 bps Revenue increase driven by 7% Core Adjusted EBITDA driven by solid price/cost results partially offset Revenue growth partially offset by 3% by lower volume/mix FX adverse impact Improve
Slide 11: Q1 2023 Revenue Bridge
Q1 2023 Revenue Bridge USD in Millions (3%) (3%) +10% Core Revenue Growth +7% Sales Growth of 4% Driven by Carryover Price Realization 11
Slide 12: Q1 2023 Adjusted EBITDA Bridge
Q1 2023 Adjusted EBITDA Bridge USD in Millions Key Drivers: Other Inc/Exp ($9) FX Gains/Loss ($9) Adjusted EBITDA Driven by Solid Price / Cost Results 12
Slide 13: Q1 2023 Segment Results
Q1 2023 Segment Results USD in Millions North America Q1 2023 Q1 2022 Q4 2022 Year-Over-Year Highlights Net Revenue $768 $722 $863 ▪ Lower volume/mix in North Adjusted EBITDA $79 $67 $87 America and Europe (Revenue Adjusted EBITDA margin 10.3% 9.3% 10.1% -3% and -7%, respectively); Higher volume/mix
Slide 14: Market Outlook: Expect Lower Global Demand in 2023
Market Outlook Expect Lower Global Demand in 2023 North America Europe Low-Double Digit High-Single Digit Volume Decline Volume Decline New single-family home Residential construction construction down 15% to 20% declines with flat demand in in 2023 while R&R down mid-to- commercial high single digi
Slide 15: 2023 Outlook
2023 Outlook Australasia Moves to Discontinued Operations, Strong Q1 Performance and Ongoing Cost Reductions 2023 2023 Net Revenue Adjusted EBITDA $4.0B to $4.4B $330M to $370M Core Revenue lower by 4%-8% Earnings impacted by lower volumes driven by double-digit partially offset by favorable volume/
Slide 16: 2023 Outlook Drivers
2023 Outlook Drivers Q1 Volume/Mix and Price/Cost Better than Anticipated Q1* Q2 to Q4* Full Year Volume / Mix + = Low Double Digit Declines YoY Price / Cost + = Positive; Better than Plan Cost Initiatives + = On Track to $100 Million * Versus February 2023 Expectations Better On Plan Worse Rest of
Slide 17: Appendix
Appendix
Slide 18: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow USD in Millions Cash Flow Q1 2023 Q1 2022 Net cash used in operating activities ($1) ($187) Capital Expenditures(1) ($24) ($16) Free Cash Flow(2) ($24) ($203) Balance Sheet April 1, 2023 December 31, 2022 Total Debt $1,750 $1,748 Cash $203 $219 Net Debt(3) $1,548 $1,528 D
Slide 19: Net Revenue Walk
Net Revenue Walk USD in Millions Q1 2023 JELD-WEN North America Europe Australasia Price 10% 10% 10% 9% Volume / Mix (3%) (3%) (7%) 11% Core Revenue Growth 7% 7% 3% 20% FX (3%) (1%) (6%) (7%) Total 4.4% 6.3% (3.3%) 13.3% 19
Slide 20: Additional Full Year 2023 Guidance Detail
Additional Full Year 2023 Guidance Detail Revenue Adjusted EBITDA Original Guidance $4.5B to $4.9B $360M to $400M Less: Australasia (Approx. $550M) (Approx. $60M) Original Guidance Without Australasia $3.9B to $4.3B $300M to $340M Increasing Guidance Approx. $50M Approx. $30M Updated Guidance $4.0B
Slide 21: Q1 2022 and Q1 2023 Adjusted EBITDA Reconciliation
Q1 2022 and Q1 2023 Adjusted EBITDA Reconciliation Three Months Ended (Amounts in millions) 1-Apr-23 26-Mar-22 Net income (loss) $15.1 ($0.5) Income tax expense (benefit) 6.2 (0.2) Depreciation and amortization 32.8 32.6 Interest expense, net 21.2 18.4 Special items: Legal and professional expenses
Slide 22: Q1 2022 and Q1 2023 Adjusted Net Income Reconciliation
Q1 2022 and Q1 2023 Adjusted Net Income Reconciliation Three Months Ended (Amounts in millions, except share and per share data) 1-Apr-23 26-Mar-22 Net income (loss) $15.1 ($0.5) Special items:(1) Legal and professional expenses and settlements 1.8 1.9 Restructuring and asset related charges 9.3 — F
Slide 23: Q1 2022 and Q1 2023 Adjusted Net Income Per Share Reconciliation
Q1 2022 and Q1 2023 Adjusted Net Income Per Share Reconciliation Three Months Ended (Amounts in millions, except share and per share data) 1-Apr-23 26-Mar-22 Diluted net income per share $0.18 ($0.01) Special items:(1) Legal and professional expenses and settlements 0.02 0.02 Restructuring and asset
Slide 24: Revised Q1, Q2 and Q3 2022 Adjusted Net Income Reconciliation
Revised Q1, Q2 and Q3 2022 Adjusted Net Income Reconciliation Three Months Ended March 26, June 25, September 24, (amounts in millions) 2022 2022 2022 Reported Net (loss) income attributable to common shareholders $ (0.5) $ 45.8 $ (33.2) Net legal and professional expenses and settlements 5.0 3.1 6.
Slide 25: Revised Q1, Q2 and Q3 2022 Adjusted EPS Reconciliation
Revised Q1, Q2 and Q3 2022 Adjusted EPS Reconciliation Three Months Ended March 26, June 25, September 24, (amounts in millions) 2022 2022 2022 Reported Net (loss) income attributable to common shareholders $ (0.01) $ 0.52 $ (0.39) Net legal and professional expenses and settlements 0.06 0.04 0.08 G
Slide 26: Q1 2023 Segment Adjusted EBITDA Reconciliation
Q1 2023 Segment Adjusted EBITDA Reconciliation Three Months Ended April 1, 2023 Corporate and Total Operating Total (Amounts in millions) North America Europe Australasia Unallocated Segments Consolidated Costs Net income (loss) $35.2 $7.3 $5.3 $47.9 ($32.7) $15.1 Income tax expense (benefit) 14.5 1
Slide 27: Q4 2022 Segment Adjusted EBITDA Reconciliation
Q4 2022 Segment Adjusted EBITDA Reconciliation Three Months Ended December 31, 2022 Corporate and Total Operating Total (Amounts in millions) North America Europe Australasia Unallocated Segments Consolidated Costs Net income (loss) $71.7 $0.4 $7.4 $79.5 ($45.9) $33.6 Income tax expense (benefit)(1)
Slide 28: Q1 2022 Segment Adjusted EBITDA Reconciliation
Q1 2022 Segment Adjusted EBITDA Reconciliation Three Months Ended March 26, 2022 Corporate and Total Operating Total (Amounts in millions) North America Europe Australasia Unallocated Segments Consolidated Costs Net income (loss) $38.1 ($0.6) $2.0 $39.5 ($40.0) ($0.5) Income tax expense (benefit)(1)
Slide 29: Q1 2022 and Q1 2023 Free Cash Flow and Net Debt Leverage Reconciliation
Q1 2022 and Q1 2023 Free Cash Flow and Net Debt Leverage Reconciliation Three Months Ended (Amounts in Millions) 1-Apr-23 26-Mar-22 Net cash used in operating activities ($0.7) ($186.9) Less capital expenditures 23.6 16.4 Free Cash Flow (1) ($24.3) ($203.2) Three Months Ended (Amounts in Millions ex