Jeld-wen Holding, Inc. · NYSE:JELD
Jeld-wen — Q2 2023 Earnings Presentation
31 slides from Jeld-wen's earnings presentation, Aug 8, 2023
Slide 1: Second Quarter 2023 Results
Second Quarter 2023 Results August 7, 2023
Slide 2: Speakers
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 August 7, 2023. Actual results may differ materially from those set forth in such st
Slide 4: Second Quarter 2023 Highlights
Second Quarter 2023 Highlights Second Quarter ▪ Sales of $1,126 million ▪ Adjusted EBITDA of $109 million ✓ 9.7% of Sales, +50 bps above Q2 2022 ▪ Generated strong cash flow ▪ Delivering on commitments: ✓ Executing on cost reductions ✓ Improving service to customers ✓ Completed Australasia divestitu
Slide 5: Two-Pronged Approach
Two-Pronged Approach Short Term Long Term Strengthen Profitable Foundation Growth People, Performance & Strategy 5
Slide 6: Completed Sale of Australasia Business to Platinum Equity
Completed Sale of Australasia Business to Platinum Equity Completed Sale of Australasia Executing on Near-Term Strategy ▪ July 2nd: AUA divestiture completed; Net ▪ Simplifying JELD proceeds of ~$446 million - Focus on North America and Europe ▪ August 3rd: Repaid $450 million of senior ▪ Reducing c
Slide 7: 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 7
Slide 8: Q2 2023 Financials
Q2 2023 Financials
Slide 9: Q2 2023 Financial Summary
Q2 2023 Financial Summary USD in Millions Net Revenue Adjusted EBITDA Adjusted EBITDA Margin -4.5% +1% +50 bps $1,179 $108 $109 9.2% 9.7% $1,126 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Core Revenue down 4% Adjusted EBITDA driven by solid price/cost partially offset by (lower volume/mix with
Slide 10: Q2 2023 Revenue Bridge
Q2 2023 Revenue Bridge USD in Millions $77 +7% $1,179 (11%) (‒%) $1,126 ($126) ($4) Core Revenue decline (4%) Q2 2022 Price Volume / Mix Foreign Exchange Q2 2023 Stable Pricing Mitigated Impact of Lower Volume / Mix 10
Slide 11: Q2 2023 Adjusted EBITDA Bridge
Q2 2023 Adjusted EBITDA Bridge USD in Millions $58 $9 ($34) $108 $109 ($32) Includes ~$10M SG&A cost savings Adj. Margin Adj. Margin 9.2% 9.7% Q2 2022 Price / Cost Volume / Mix Productivity SG&A / FX / Other Q2 2023 Adjusted EBITDA Driven by Solid Price / Cost 11
Slide 12: Q2 2023 Segment Results
Q2 2023 Segment Results USD in Millions Segment Highlights North America Q2 2023 Q2 2022 Q1 2023 ▪ Q2 2023 segment margins Net Revenue $817 $839 $768 improved YOY and sequentially Adjusted EBITDA $109 $93 $79 Adjusted EBITDA margin 13.3% 11.1% 10.3% ▪ Lower volume/mix in North Europe Q2 2023 Q2 2022
Slide 13: Market Outlook: Lower Global Demand in 2023
Market Outlook Lower Global Demand in 2023 North America Europe Low-Double Digit Low-Double Digit Volume Decline Volume Decline New single-family home Weaker residential construction construction down 15% to 20% Flat demand in commercial R&R down mid-to-high single digits Continue to Expect Demand W
Slide 14: 2023 Outlook
2023 Outlook Solid 1st Half Performance 2023 2023 Net Revenue Adjusted EBITDA $4.2B to $4.4B $350M to $370M Core Revenue down 4%-8% Lower volumes, favorable price / Double-digit volume / mix decline cost and ongoing cost reductions Focus on Driving Performance in Any Macroeconomic Environment 14
Slide 15: 2023 Outlook Drivers vs. Previous Expectations
2023 Outlook Drivers vs. Previous Expectations 1H Volume/Mix and Price/Cost Better than Anticipated 1st Half 2nd Half Full Year Volume / Mix + = Low Double-Digit Decline YOY Price / Cost + = Positive; Better than Anticipated Cost Initiatives + = On Track to ~$100 Million Better On Plan Worse Anticip
Slide 16: Appendix
Appendix
Slide 17: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow USD in Millions Cash Flow Q2 2023 Q2 2022 Net cash used in operating activities $153 ($166) Capital Expenditures(1) ($47) ($35) Free Cash Flow(2) $106 ($201) Balance Sheet(3) July 1, 2023 December 31, 2022 Total Debt $1,686 $1,747 Cash $189 $165 Net Debt(4) $1,497 $1,582
Slide 18: Net Revenue Walk
Net Revenue Walk Q2 2023 JELD-WEN North America Europe Price 7% 6% 8% Volume / Mix (11%) (8%) (17%) Core Revenue Growth 4% (2%) (9%) FX ‒ (1%) ‒ Total (4.5%) (2.6%) (9.2%) 1H 2023 JELD-WEN North America Europe Price 8% 8% 9% Volume / Mix (8%) (6%) (12%) Core Revenue Growth ‒ 2% (3%) FX (1%) ‒ (3%) T
Slide 19: 1H 2023 Revenue Bridge
1H 2023 Revenue Bridge USD in Millions $180 +8% (8%) $2,225 (1%) ($169) $2,206 ($29) Core Revenue Flat 1H 2022 Price Volume / Mix Foreign Exchange 1H 2023 Higher YOY Pricing Mitigated Impact of Lower Volume / Mix 19
Slide 20: 1H 2023 Adjusted EBITDA Bridge
1H 2023 Adjusted EBITDA Bridge USD in Millions $94 $15 ($51) $188 $176 ($47) Includes ~$22M SG&A cost savings Adj. Margin Adj. Margin 7.9% 8.5% 1H 2022 Price / Cost Volume / Mix Productivity SG&A / FX / Other 1H 2023 Adjusted EBITDA Driven by Solid Price / Cost 20
Slide 21: Q1 2023 Adjusted EBITDA Reconciliation for Discontinued Operations
Q1 2023 Adjusted EBITDA Reconciliation for Discontinued Operations Three Months Ended April 1, 2023 Other As Reported Less: Discontinued Continuing Consolidated As Reported Operations Operations (amounts in millions) JELD-WEN Australasia Adjustments JELD-WEN Net income (loss) $15.1 $(5.3) $(1.4) $8.
Slide 22: Q1 2022 Adjusted EBITDA Reconciliation for Discontinued Operations
Q1 2022 Adjusted EBITDA Reconciliation for Discontinued Operations Three Months Ended March 26, 2022 Other As Reported Less: Discontinued Continuing Consolidated As Reported Operations Operations (amounts in millions) JELD-WEN Australasia Adjustments JELD-WEN Net income (loss) $(0.5) $(2.0) $(1.0) $
Slide 23: Q2 2022 Adjusted EBITDA Reconciliation for Discontinued Operations
Q2 2022 Adjusted EBITDA Reconciliation for Discontinued Operations Three Months Ended June 25, 2022 Other As Reported Less: Discontinued Continuing Consolidated As Reported Operations Operations (amounts in millions) JELD-WEN Australasia Adjustments JELD-WEN Net income (loss) $45.8 $(6.8) $(4.1) $35
Slide 24: Q3 2022 Adjusted EBITDA Reconciliation for Discontinued Operations
Q3 2022 Adjusted EBITDA Reconciliation for Discontinued Operations Three Months Ended September 24, 2022 Other As Reported Less: Discontinued Continuing Consolidated As Reported Operations Operations (amounts in millions) JELD-WEN Australasia Adjustments JELD-WEN Net income (loss) $(33.2) $(9.1) $(2
Slide 25: Q4 2022 Adjusted EBITDA Reconciliation for Discontinued Operations
Q4 2022 Adjusted EBITDA Reconciliation for Discontinued Operations Three Months Ended December 31, 2022 Other As Reported Less: Discontinued Continuing Consolidated As Reported Operations Operations (amounts in millions) JELD-WEN Australasia Adjustments JELD-WEN Net income (loss) $33.6 $(7.4) $(0.3)
Slide 26: FY 2022 Adjusted EBITDA Reconciliation for Discontinued Operations
FY 2022 Adjusted EBITDA Reconciliation for Discontinued Operations Twelve Months Ended December 31, 2022 Other As Reported Less: Discontinued Continuing Consolidated As Reported Operations Operations (amounts in millions) JELD-WEN Australasia Adjustments JELD-WEN Net income (loss) $45.7 $(25.4) $(8.
Slide 27: Q2 2022 and Q2 2023 Adjusted Net Income Reconciliation
Q2 2022 and Q2 2023 Adjusted Net Income Reconciliation Three Months Ended (Amounts in millions, except share and per share data) July 1, 2023 June 25, 2022 Income from continuing operations, net of tax $22.5 $35.0 Special items:(1) Legal and professional expenses and settlements 4.4 0.7 Restructurin
Slide 28: Q2 2022 and Q2 2023 Adjusted Net Income Per Share Reconciliation
Q2 2022 and Q2 2023 Adjusted Net Income Per Share Reconciliation Three Months Ended (Amounts in millions, except share and per share data) July 1, 2023 June 25, 2022 Diluted income per share from continuing operations $0.26 $0.40 Special items:(1) Legal and professional expenses and settlements 0.05
Slide 29: Q2 2023 Segment Adjusted EBITDA Reconciliation
Q2 2023 Segment Adjusted EBITDA Reconciliation Three Months Ended July 1, 2023 Total Corporate and Total (Amounts in millions) North America Europe Operating Unallocated Consolidated Segments Costs Income (loss) from continuing operations, net of tax $51.3 $10.7 $61.9 $(39.4) $22.5 Income tax expens
Slide 30: Q1 2023 Segment Adjusted EBITDA Reconciliation
Q1 2023 Segment Adjusted EBITDA Reconciliation Three Months Ended April 1, 2023 Total Corporate and Total (Amounts in millions) North America Europe Operating Unallocated Consolidated Segments Costs Income (loss) from continuing operations, net of tax $35.2 $7.3 $42.5 $(34.1) $8.5 Income tax expense
Slide 31: Q2 2022 Segment Adjusted EBITDA Reconciliation
Q2 2022 Segment Adjusted EBITDA Reconciliation Three Months Ended June 25, 2022 Total Corporate and Total (Amounts in millions) North America Europe Operating Unallocated Consolidated Segments Costs Income (loss) from continuing operations, net of tax $69.8 $3.1 $73.0 $(38.0) $35.0 Income tax expens