Jeld-wen Holding, Inc. · NYSE:JELD
Jeld-wen — Q3 2017 Earnings Presentation
24 slides from Jeld-wen's earnings presentation, Nov 7, 2017
Slide 1: Q3 2017 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 Q3 2017 Results Presentation | November 7, 2017 1 PRIVILEGED
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, our outlook for 2017, and our expectations, beliefs, plans, objectives, pr
Slide 3: Introduction
Introduction Mark Beck, President and CEO 3
Slide 4: An Extraordinary Transformation Underway
An Extraordinary Transformation Underway Business Highlights Early Stages of Multi-Year Turnaround Global market leader in windows and doors Adjusted EBITDA Margin % A unique platform with scale, iconic brands and 20.0% leading market positions 18.0% A team of accomplished leaders executing a
Slide 5: Proven Operating Model
Proven Operating Model WORLD-CLASS PERFORMANCE AND RETURNS Operational Excellence Profitable Organic Growth Strategic M&A Safety and Compliance New Products and Innovation Target Identification Quality System Brand Strategy Target Cultivation Customer Experience Channel Management Stage Gate Process
Slide 6: JEM: Recent Operational Excellence Success Stories
JEM Recent Operational Excellence Success Stories Location JEM Tools Applied Results Value stream mapping, basic problem solving, line balancing, Increased window production line output by Ringtown, PA principal/flow production, initiated 44% model cell Value stream mapping, basic problem solving, v
Slide 7: Strategic M&A: MMI Door Acquisition
Strategic M&A MMI Door Acquisition Leading provider of comprehensive door Customized Door Systems systems and related value-added services in Pre-Hanging Glass the Midwest U.S. supporting distributors, (Jambs, Sills, (Decorative, Clear) Casing, Molding) dealers, and home centers Rationale: Compl
Slide 8: Strategic M&A: Kolder Acquisition
Strategic M&A Kolder Acquisition Leading Australian provider of shower enclosures, closet systems, and related building products Rationale: Significantly enhances our existing Australian capabilities in glass shower enclosures and built-in closet systems, and supports our strategy to build leade
Slide 9: Strategic M&A: Domoferm Acquisition
Strategic M&A Domoferm Acquisition Leading European provider of steel doors, steel door frames, and fire doors for the commercial and residential markets Rationale: Capabilities in steel frames and doors significantly expand JELD-WEN’s European product range, including certified door systems E
Slide 10: Acquisitions Are Delivering Solid Results
Strategic M&A Acquisitions Are Delivering Solid Results – USD in Millions Total Purchase Annual Acquisition Price Revenues at (Closing Date) (Net of cash Acquisition Date acquired) 2015-2016 LTM Q3 2017 Contribution to Dooria (Aug 2015) JELD-WEN’s Results (1) Aneeta (Aug 2015) Net Revenue $303 Karon
Slide 11: Third Quarter Highlights
Third Quarter Highlights Net revenues increased 6.3% - Positive core growth 2%, favorable foreign exchange impact 2%, and contribution of recent acquisitions 3% Adjusted EBITDA margin of 12.9%, a 20 bps increase over prior year - Favorable pricing and operational cost savings initiatives in all
Slide 12: Consistent Margin Improvement
Consistent Margin Improvement Q3 Adjusted EBITDA Margins Q3 YTD Adjusted EBITDA Margins 12.7% 12.9% 12.0% 11.3% 10.8% 9.5% 9.4% 6.1% 2014 2015 2016 2017 2014 2015 2016 2017 TRACK RECORD OF CONSISTENT MARGIN IMPROVEMENT 12
Slide 13: Financial Review
Financial Review Brooks Mallard, EVP and Chief Financial Officer 13
Slide 14: Q3 and YTD 2017 Financial Summary
Q3 and YTD 2017 Financial Summary USD in millions (except for per share items) Q3 YTD 2017 YoY Change 2017 YoY Change Net Revenues $991.4 6.3% $2,787.9 3.5% Gross Margin $228.2 11.0% $642.5 12.9% Gross Margin Percent 23.0% 90 bps 23.0% 190 bps Net Income $51.3 11.3% $104.5 (12.2%) EPS – Diluted (1)
Slide 15: Q3 and YTD 2017 Net Revenues Walk
Q3 and YTD 2017 Net Revenues Walk Q3 2017 JELD-WEN North America Europe Australasia Pricing 1% 2% 1% - Volume/Mix 1% - - 4% Core Growth 2% 2% 1% 4% Acquisitions 3% 2% 2% 8% FX 2% - 4% 4% Total 6.3% 3.6% 7.4% 15.7% YTD 2017 Pricing 1% 2% 1% 1% Volume/Mix 1% (1%) 2% 3% Core Growth 2% 1% 3% 4% Acquisit
Slide 16: North America Segment Performance
North America Segment Performance USD in millions Q3 YTD 2017 YoY Change 2017 YoY Change Net Revenues $572.0 3.6% $1,607.7 1.8% Adjusted EBITDA $82.5 4.8% $212.5 14.1% Adjusted EBITDA Margin 14.4% 10 bps 13.2% 140 bps Wood Windows Vinyl Windows Interior Doors Exterior Doors Wall Systems MARGIN EXPAN
Slide 17: Europe Segment Performance
Europe Segment Performance USD in millions Q3 YTD 2017 YoY Change 2017 YoY Change Net Revenues $265.1 7.4% $766.3 1.9% Adjusted EBITDA $33.4 6.2% $97.6 8.0% Adjusted EBITDA Margin 12.6% (10 bps) 12.7% 70 bps Residential Doors Commercial Doors Fire Resistant Sound Dampening Security Doors STRONG REVE
Slide 18: Australasia Segment Performance
Australasia Segment Performance USD in millions Q3 YTD 2017 YoY Change 2017 YoY Change Net Revenues $154.3 15.7% $413.9 14.5% Adjusted EBITDA $22.9 28.4% $53.5 30.5% Adjusted EBITDA Margin 14.8% 140 bps 12.9% 160 bps Windows Doors Shower Enclosures Closet Systems Specialty Windows STRONG PERFORMANCE
Slide 19: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow USD in millions Balance Sheet and Liquidity September 30, 2017 December 31, 2016(1) Total Debt $1,251.2 $1,620.0 Cash $219.5 $102.7 Total Net Debt $1,031.7 $1,517.3 Net Debt / Adjusted EBITDA 2.4x 3.9x Liquidity (2) $518.8 $381.9 Cash Flow YTD Q3 2017 YTD Q3 2016 Cash Flo
Slide 20: Summary and 2017 Outlook
Summary and 2017 Outlook Mark Beck, President and Chief Executive Officer 20
Slide 21: 2017 Outlook
2017 Outlook USD in millions Net Revenue Growth 2.0% – 4.0% Adjusted EBITDA $440 – $450 Capital Expenditures $60 – $70 21
Slide 22: Appendix
Appendix 22
Slide 23: Non-GAAP Reconciliation: Adjusted EBITDA
Non-GAAP Reconciliation Adjusted EBITDA (USD in millions) Three Months Ended Nine Months Ended September September September September 30, 2017 24, 2016 30, 2017 24, 2016 Net income $ 51.3 $ 46.1 $ 104.5 $ 119.0 Income from discontinued operations, net of tax — 2.7 — 2.8 Equity earnings of non-conso
Slide 24: Non-GAAP Reconciliation: Adjusted EPS & Free Cash Flow
Non-GAAP Reconciliation Adjusted EPS & Free Cash Flow (USD in millions) Three Months Ended September 30, (amounts in millions, except share and per share data) 2017 Net income $ 51.3 Legal and professional fees 7.9 Non-cash foreign exchange transactions/translation loss (1.3) Impairment and restruct