Jeld-wen Holding, Inc. · NYSE:JELD
Jeld-wen — Q3 2019 Earnings Presentation
20 slides from Jeld-wen's earnings presentation, Nov 6, 2019
Slide 1: Third-Quarter 2019 Results Presentation
THIRD-QUARTER 2019 RESULTS PRESENTATION November 6, 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 ▪ Operational inefficiencies in a small number of windows facilities in North America were primary driver of performance miss to expectations and a significant component of core margin compression vs. prior year; we do not expect them to recur in 2020 ▪ Volume headwinds in North Americ
Slide 5: Third Quarter Summary
THIRD QUARTER SUMMARY Financial Summary ▪ Q3 net revenues decreased 3.9% driven primarily by 5% contraction from volume/mix and 2% FX headwind, partially offset by price ▪ Net income of $17 million, a decrease of $11.6 million, driven by tax expense ▪ Diluted EPS was $0.17; Adjusted EPS was $0.26 ▪
Slide 6: Market Outlook
MARKET OUTLOOK Market Region Q3 Outlook Market Outlook Commentary North America • Residential New Construction (RNC) market headwinds in U.S. and Canada Residential New • North America returning to modest RNC growth in Construction 2020, with acceleration in the U.S. housing market partially offset
Slide 7: Global Footprint Rationalization Update
GLOBAL FOOTPRINT RATIONALIZATION UPDATE FOOTPRINT RATIONALIZATION MODERNIZATION MANUFACTURING RECENTLY COMPLETED PROJECTS EFFICIENCY GAINS North America ✓ Reduce complexity ✓ Increase throughput ✓ Ozark, AL and Lexington, NC closed with ✓ Increase capacity ✓ Improve quality volume transferred to Atl
Slide 8: Financial Review
FINANCIAL REVIEW John Linker, Executive Vice President and CFO |
Slide 9: Q3 2019 Financial Summary
Q3 2019 FINANCIAL SUMMARY USD in millions NET REVENUES Adj. EBITDA Adj. EBITDA Margin Core Core Core (3%) (17%) (170 bps) (3.9%) (17.9%) (170 bps) $1,136.5 $1,092.0 $132.6 11.7% 10.0% $108.9 3Q18 3Q19 3Q18 3Q19 3Q18 3Q19 CORE MARGIN DECLINE VS. PRIOR YEAR DRIVEN BY LOWER REVENUES Cor e e xcl udes i
Slide 10: Q3 2019 Net Revenues Walk
Q3 2019 NET REVENUES WALK JELD-WEN North America Europe Australasia Q3 2019 Pricing 2% 2% 2% 0% Volume/Mix (5%) (5%) 1% (12%) Core Growth (3%) (3%) 3% (12%) Acquisitions 1% 2% 0% 0% FX (2%) 0% (5%) (5%) Total (3.9%) (1.4%) (1.8%) (17.1%) YTD 2019 Pricing 2% 3% 1% 0% Volume/Mix (4%) (6%) 0% (8%) Core
Slide 11: North America Segment Performance
NORTH AMERICA SEGMENT PERFORMANCE USD in millions NET REVENUES Adj. EBITDA Adj. EBITDA Margin Core Core Core (3%) -1% (23%) (260 bps) Core(1) (1.4%) (20.9)% (250 bps) $84.3 12.6% $667.7 $658.4 $66.7 10.1% 3Q18 3Q19 3Q18 3Q19 3Q18 3Q19 VOLUME AND COST INEFFICIENCIES DROVE CORE MARGIN DECLINE Cor e e
Slide 12: Europe Segment Performance
EUROPE SEGMENT PERFORMANCE USD in millions NET REVENUES Adj. EBITDA Adj. EBITDA Margin Core Up 1% Core Core +3% 17% +120 bps Core(1) (1.8%) 8.9% 100 bps $292.9 $287.7 10.5% $30.2 9.5% $27.7 3Q18 3Q19 3Q18 3Q19 3Q18 3Q19 POSITIVE PRICING REALIZATION AND STRONG PRODUCTIVITY DROVE CORE MARGIN EXPANSION
Slide 13: Australasia Segment Performance
AUSTRALASIA SEGMENT PERFORMANCE USD in millions NET REVENUES Adj. EBITDA Adj. EBITDA Margin Core -2% Core Core (12%) (17%) (80 bps) Core(1) (17.1%) (22.3%) (90 bps) $26.2 14.9% $175.9 14.0% $145.8 $20.3 3Q18 3Q19 3Q18 3Q19 3Q18 3Q19 SIGNIFICANT MARKET HEADWINDS DROVE CORE MARGIN DECLINE Cor e e xcl
Slide 14: Balance Sheet and Cash Flow
BALANCE SHEET AND CASH FLOW Balance Sheet and Liquidity September 28, 2019 December 31, 2018 Total Debt $1,514.4 $1,477.9 Cash $127.9 $117.0 Total Net Debt $1,386.5 $1,360.9 Net Debt / Adjusted EBITDA 3.2x 3.0x Liquidity (1) $449.9 $380.2 Cash Flow Q3 YTD 2019 Q3 YTD 2018 Cash Flow From Operations $
Slide 15: 2019 Outlook
2019 OUTLOOK. Sp JELB WEN
Slide 16: 2019 Outlook
2019 OUTLOOK USD in millions Full Year 2019 Outlook Previous – Aug '19 Current Comments • Australia market deterioration Net Revenue Growth vs. PY Approximately Flat Down ~2% vs. 2018 • North America Q3 revenue softness • Margin expectations reflect lower Adjusted EBITDA $450 to $480 $419 to $429 vo
Slide 17: JELD-WEN's Strategic Growth Drivers
JELD-WEN’S STRATEGIC GROWTH DRIVERS Accelerate Disciplined Capital 1 Top Line Growth 2 Expand Margins 3 Allocation ``` Invest for Growth Culture and Tools Shareholder Value JELD-WEN IS POSITIONED TO DRIVE GROWTH AND LONG-TERM SHAREHOLDER VALUE 17 |
Slide 18: Appendix
APPENDIX (0! JELDWEN
Slide 19: Non-GAAP Reconciliation: Adjusted EBITDA
NON-GAAP RECONCILIATION ADJUSTED EBITDA (USD IN MILLIONS) Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, 2019 2018 2019 2018 Net income $ 17.0 $ 28.6 $ 55.2 $ 103.8 Equity earnings of non-consolidated entities — — — (0.7) Income tax expense 22.5 (31.7) 4
Slide 20: 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 Nine Months Ended September 28, September 29, September 28, September 29, (amounts in millions, except share and per share data) 2019 2018 2019 2018 Net income $ 17.0 $ 28.6 $ 55.2 $ 103.8 Note: Excep