Jeld-wen Holding, Inc. · NYSE:JELD
Jeld-wen — Q1 2018 Earnings Presentation
20 slides from Jeld-wen's earnings presentation, May 8, 2018
Slide 1: Q1 2018 Results Presentation
\\intranet.barcapint.com\dfs-amer\group\Nyk\area\ibd\Industrial\Companies\Jeld-Wen\2015.07 Project Jamaica Dual Track\2015.10 IPO Execution\Presentation\Roadshow Presentation\Project Falcon_Roadshow Presentation_(1.13.17)_vNear Final_v10pm Q1 2018 Results Presentation | May 8, 2018 1 PRIVILEGED AND
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 Kirk Hachigian, Chairman and Acting CEO 3
Slide 4: Introductory Comments
Introductory Comments What’s Working Near Term Focus Areas Strategy and proven operating model North America execution are in place - Rebuilding and stabilizing key roles in - Significant self-help margin North America leadership team improvement opportunity - Core growth Success with M&A / ca
Slide 5: First Quarter Summary
First Quarter Summary Mixed results in Q1 2018 against strong Q1 2017 - delivered adjusted EBITDA guidance Net revenues increased 11.6%, driven by 7% increase from acquisitions - Flat core growth as unfavorable volume in North America offset core growth in Europe and Australasia Improved North
Slide 6: Financial Review
in Til a HL | Ve Free ee ae Xs oe “a
Slide 7: Q1 2018 Financial Summary
Q1 2018 Financial Summary USD in millions (except for per share items) Q1 2018 YoY Change Net Revenues $946.2 11.6% Gross Margin $205.9 13.3% Gross Margin Percent 21.8% 40 bps Net Income $40.3 $33.8 EPS – Diluted (1) $0.37 N/A Adjusted EPS – Diluted (1) $0.30 N/A Adjusted EBITDA $87.8 8.5% Adjusted
Slide 8: Q1 2018 Net Revenues Walk
Q1 2018 Net Revenues Walk Q1 2018 JELD-WEN North America Europe Australasia Pricing 1% 1% 1% - Volume/Mix (1%) (3%) 1% 4% Core Growth - (2%) 2% 4% Acquisitions 7% 4% 9% 13% FX 5% 1% 13% 4% Total 11.6% 2.9% 24.5% 20.7% CORE GROWTH IN EUROPE AND AUSTRALASIA OFFSET BY NORTH AMERICA 8
Slide 9: North America Segment Performance
North America Segment Performance USD in millions Q1 - Total Q1 – Core Only (1) 2018 YoY Change YoY Change Net Revenues $497.9 2.8% (2%) Adjusted EBITDA $47.0 (6.3%) (9%) Adjusted EBITDA Margin 9.4% (100 bps) (80 bps) Wood Windows Vinyl Windows Interior Doors Exterior Doors Wall Systems MARGINS IMPA
Slide 10: Europe Segment Performance
Europe Segment Performance USD in millions Q1 Q1 – Core Only (1) 2018 YoY Change YoY Change Net Revenues $301.7 24.5% 2% Adjusted EBITDA $33.8 24.3% 14% Adjusted EBITDA Margin 11.2% - 140 bps Residential Doors Commercial Doors Fire Resistant Sound Dampening Security Doors CORE MARGIN IMPROVEMENT OFF
Slide 11: Australasia Segment Performance
Australasia Segment Performance USD in millions Q1 Q1 – Core Only (1) 2018 YoY Change YoY Change Net Revenues $146.6 20.7% 4% Adjusted EBITDA $16.7 26.4% 9% Adjusted EBITDA Margin 11.4% 50 bps 50 bps Windows Doors Shower Enclosures Closet Systems Specialty Windows STRONG PERFORMANCE FROM CORE AND M&
Slide 12: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow USD in millions Balance Sheet and Liquidity March 31, 2018 December 31, 2017 Total Debt $1,471.1 $1,273.7 Cash $103.0 $220.2 Total Net Debt $1,368.1 $1,053.5 Net Debt / Adjusted EBITDA 3.1x 2.4x Liquidity (1) $334.0 $512.2 Cash Flow Q1 2018 Q1 2017 Cash Flow From Operatio
Slide 13: Strategic M&A
Strategic M&A Segment 2015 2016 2017 2018 C l o s e d : Ma r c h 3 0 , 2 0 1 8 E xp e c t e d a n n u a l i ze d r e ve n u e i m p a c t : North $275M America P r o d u c t s : V a l u e - a d d e d m i l l wo r k f a b r i c a t i o n s e r vi c e s f o r d e a l e r s a n d home center customers
Slide 14: 2018 Outlook
2018 Outlook 14
Slide 15: 2018 Outlook
2018 Outlook USD in millions Q2 2018 Outlook 2017 Q2 Actual 2018 Q2 Outlook Adjusted EBITDA $125.3 $135 to $145 Full Year 2018 2018 FY Previous Outlook (1) 2018 FY Updated Outlook (2) Net Revenue Growth 10.0% to 13.0% 17.0% – 19.0% Core Revenue Growth ~3% ~3% Adjusted EBITDA $505 to $535 $505 to $53
Slide 16: Summary
Summary Solidifying North America and Global teams…critical open positions have been filled Continue to improve service and quality Focus on cost out: productivity, overhead reduction, and managing SG&A Balance material inflation, price, market share Successful integration of recent acquis
Slide 17: Appendix
Appendix 17
Slide 18: 2018 Full Year Outlook Development & Assumptions
2018 Full Year Outlook Development & Assumptions Adjusted EBITDA Revenue Growth Adjusted EBITDA Adjusted EBITDA Margin Change vs. 2018 Full Year Outlook Development Outlook Range vs. Margin % Outlook Range Prior Year Prior Year (midpoint) (midpoint) 2017 Actual N/A N/A 11.6% N/A New Developments: •
Slide 19: Non-GAAP Reconciliation
Non-GAAP Reconciliation Adjusted EBITDA (USD in millions) Three Months Ended March 31, April 1, 2018 2017 Net income $ 40.3 $ 6.4 Equity earnings of non-consolidated entities (0.7) (0.5) Income tax expense (benefit) (4.0) 2.3 Depreciation and intangible amortization 28.5 27.1 Interest expense, net(1
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation Adjusted EPS & Free Cash Flow (USD in millions) Three Months Ended March 31, (amounts in millions, except share and per share data) 2018 Net income attributable to common shareholders $ 40.3 Legal and professional fees 9.1 Non-cash foreign exchange transactions/translation (i