Jeld-wen Holding, Inc. · NYSE:JELD
Jeld-wen — Q1 2019 Earnings Presentation
21 slides from Jeld-wen's earnings presentation, May 7, 2019
Slide 1: First-Quarter 2019 Results Presentation
FIRST-QUARTER 2019 RESULTS PRESENTATION May 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 Delivered first quarter results in line with expectations Core revenue growth headwinds continued from volume/mix in certain business lines Favorable price/cost realization; pricing in North America accelerated sequentially to 4% Adjusted EBITDA margin of 9.0% down 30 bps year-
Slide 5: First Quarter Summary
FIRST QUARTER SUMMARY Financial Summary Q1 net revenues increased 6.8% driven primarily by 12% growth from acquisitions offset by significant FX headwind Net income of $16.6 million, a decrease of $23.7 million due to the non-recurrence of a $21 million non-cash gain and related tax benefit on e
Slide 6: 2019 New Product Introductions
2019 NEW PRODUCT INTRODUCTIONS 2019 Window and Door System Solutions Folding Patio Door System Alumiere Windows Siteline Panoramic Gliding Patio Door FiniShield™ Exterior Color Solution Moda Barn Doors Siteline Pocket and Sash Pack DELIVERING CORE GROWTH THROUGH INNOVATION 6 |
Slide 7: Strategic M&A - VPI Quality Windows
STRATEGIC M&A - VPI QUALITY WINDOWS VPI Quality Windows is a market-leading vinyl window manufacturer specializing in customized solutions for mid-rise multi-family, institutional, hospitality and commercial projects, primarily in the western United States Closed on March 29 VPI facilitates en
Slide 8: End Market Outlook
END MARKET OUTLOOK End markets performed as expected in the first quarter North America housing markets expected to be mixed between new construction and repair and remodel, Canada market expected to remain flat Europe markets show mixed growth Australasia residential new construction market
Slide 9: Financial Review
FINANCIAL REVIEW John Linker, Executive Vice President and CFO |
Slide 10: Q1 2019 Financial Summary
Q1 2019 FINANCIAL SUMMARY Q1 2019 YoY Change Net Revenues $1,010.9 6.8% Gross Margin $208.4 1.3% Gross Margin Percentage 20.6% (120 bps) Net Income $16.6 (58.9%) EPS – Diluted $0.16 (56.8%) Adjusted EPS – Diluted $0.23 NM Adjusted EBITDA $90.6 3.2% Adjusted EBITDA Margin 9.0% (30 bps) CORE MARGIN EX
Slide 11: Q1 2019 Net Revenues Walk
Q1 2019 NET REVENUES WALK Q1 2019 JELD-WEN North America Europe Australasia Pricing 2% 4% 1% 1% Volume/Mix (3%) (5%) 0% (3%) Core Growth (1%) (1%) 1% (2%) Acquisitions 12% 15% 7% 10% FX (4%) (0%) (8%) (9%) Total 6.8% 13.6% (0.6%) (0.9%) Q1 CORE REVENUES DOWN 1% POSITIVE PRICE OFFSET BY VOLUME/MIX 11
Slide 12: North America Segment Performance
NORTH AMERICA SEGMENT PERFORMANCE Q1 – Total Q1 – Core Only (1) 2019 YoY Change YoY Change Net Revenues $565.8 13.6% (1%) Adjusted EBITDA $53.5 13.8% (1%) Adjusted EBITDA Margin 9.5% 10 bps 40 bps CORE MARGIN EXPANSION CONTINUES IN NORTH AMERICA ( 1) Excl udes i mpact of F X and acqui si ti ons comp
Slide 13: Europe Segment Performance
EUROPE SEGMENT PERFORMANCE Q1 – Total $M USD Q1 – Core Only (1) 2019 YoY Change YoY Change Net Revenues $300.0 (0.6%) 1% Adjusted EBITDA $28.2 (16.7%) (4%) Adjusted EBITDA Margin 9.4% (180 bps) (50 bps) POSITIVE PRODUCTIVITY OFFSET BY INFLATION AND VOLUME/MIX ( 1) Excl udes i mpact of F X and acqui
Slide 14: Australasia Segment Performance
AUSTRALASIA SEGMENT PERFORMANCE Q1 – Total $M USD Q1 – Core Only (1) 2019 YoY Change YoY Change Net Revenues $145.2 (0.9%) (2%) Adjusted EBITDA $16.4 (1.9%) (3%) Adjusted EBITDA Margin 11.3% (10 bps) 0 bps CORE MARGINS IMPACTED BY SLOWING MARKET ( 1) Excl udes i mpact of F X and acqui si ti ons comp
Slide 15: Balance Sheet and Cash Flow
BALANCE SHEET AND CASH FLOW Balance Sheet and Liquidity March 30, 2019 December 31, 2018 Total Debt $1,572.7 $1,477.9 Cash $94.0 $117.0 Total Net Debt $1,478.7 $1,360.9 Net Debt / Adjusted EBITDA 3.2x 2.9x Liquidity (1) $182.6 $380.2 Cash Flow Q1 2019 Q1 2018 Cash Flow From Operations ($28.0) ($65.3
Slide 16: 2019 Outlook
2019 OUTLOOK. Sp JELB WEN
Slide 17: 2019 Outlook
2019 OUTLOOK Second Quarter 2019 Outlook Q2 2019 Outlook Approximately ~27% of Full Year Adjusted EBITDA 2019 Adjusted EBITDA Full Year 2019 Outlook Original Updated for VPI Acquisition Net Revenue Growth v. PY 1.0% to 5.0% 1.0% to 5.0% Adjusted EBITDA $470 to $505 $475 to $505 Capital Expenditures
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
APPENDIX (0! JELDWEN
Slide 20: Non-GAAP Reconciliation: Adjusted EBITDA
NON-GAAP RECONCILIATION ADJUSTED EBITDA (USD IN MILLIONS) Three Months Ended March 30, March 31, 2019 2018 Net income $ 16.6 $ 40.3 Equity earnings of non-consolidated entities — (0.7) Income tax expense (benefit) 10.3 (4.0) Depreciation and amortization 30.9 28.5 Interest expense, net 17.7 15.7 Imp
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 March 30, March 31, (amounts in millions, except share and per share data) 2019 2018 Net income attributable to common shareholders $ 16.6 $ 40.3 Note: Except as otherwise Legal, acquisition and profe