CHARLOTTE, N.C., May 6, 2024
/PRNewswire/ -- JELD-WEN Holding, Inc. (NYSE: JELD) ("JELD-WEN" or
the "Company") today announced results for the three months ended
March 30, 2024. Additionally, the
Company has updated its full year 2024 guidance. Comparability is
to the same period in the prior year and all periods presented
reflect the Company's Australasia segment as a discontinued
operation, as appropriate and unless otherwise noted.
First Quarter Highlights
- Net revenues from continuing operations of $959.1 million decreased (11.2%) in the first
quarter driven by a (12%) Core Revenue decline as a result of (12%)
lower volume/mix due to weak macro-economic conditions.
- Net loss from continuing operations was $(27.7) million or $(0.32) per share, compared to $8.5 million, or $0.10 per share during the same quarter a year
ago. Operating income/(loss) margin was (2.9)% and 2.8% for the
quarters ended March 30, 2024 and
April 1, 2023, respectively.
- Adjusted EBITDA from continuing operations was $68.7 million, a decrease of $(10.6) million compared to $79.3 million during the same quarter a year ago.
Adjusted EBITDA Margin from continuing operations was 7.2%, a
decrease of (10) basis points year-over-year as the impact of lower
volume/mix was mostly offset by productivity improvements and
higher other income.
"We continue to execute on our transformation journey and
position JELD-WEN for improved performance," said Chief Executive
Officer William J. Christensen. "In
the first quarter, despite the challenging demand environment, we
made good progress on streamlining operations and improving
customer experience. I am proud of how our associates remained
focused on meeting our customers' expectations while working
diligently to implement the necessary changes to fix our
foundation."
First Quarter 2024 Results
Net revenues from continuing operations for the three
months ended March 30, 2024 was
$959.1 million, a decrease of
$(121.4) million, or (11.2%),
compared to $1,080.5 million for the
same period last year. The decrease in net revenues was driven by a
(12%) decline in Core Revenue as a result of (12%) lower volume/mix
due to weak macro-economic conditions.
Net loss from continuing operations was $(27.7) million in the first quarter, compared to
$8.5 million in the same period last
year, a decrease of $(36.2) million.
The decrease was mostly driven by lower volume/mix and increased
costs to execute on JELD-WEN's transformation journey, partially
offset by higher other income. Adjusted Net Income from continuing
operations for the first quarter was $18.4
million, a decrease of $(3.2)
million compared to $21.6
million in the same period last year.
Net loss per share from continuing operations for the first
quarter was $(0.32), compared to EPS
of $0.10 in the same quarter last
year. Adjusted EPS from continuing operations for the first quarter
was $0.21 compared to $0.25 in the same quarter last year. Adjusted EPS
for the quarter ended March 30, 2024
excludes net after-tax charges of $46.1
million, or $0.53 per diluted
share, associated mainly with costs to execute on the Company's
transformation journey. Adjusted EPS for the quarter ended
April 1, 2023 excludes net after-tax
charges of $13.1 million or
$0.15 per diluted share.
Adjusted EBITDA from continuing operations was $68.7 million, a decline of $(10.6) million compared to $79.3 million during the same quarter last year.
Adjusted EBITDA Margin from continuing operations was 7.2%, a
decline of (10) basis points as lower volume/mix was mostly offset
by productivity improvements and higher other income.
On a segment basis for the first quarter of 2024, compared to
the same period last year:
- North America - Net
revenue was $680.0 million, a decline
of $(88.0) million, or (11.5%),
driven by a (12%) decline in Core Revenue due to (11%) lower
volume/mix related to weakened market demand. Net income was
$16.3 million, a decline of
$(19.0) million year-over-year.
Operating income margin was 2.9% for the quarter ended March 30, 2024 and 7.0% for the quarter ended
April 1, 2023. Adjusted EBITDA was
$61.2 million, a decline of
($18.0) million while Adjusted EBITDA
Margin decreased by (130) basis points to 9.0%.
- Europe - Net revenue
was $279.1 million, a decline of
$(33.4) million, or (10.7%), due to a
(12%) decline in Core Revenue. Core Revenue declined due to lower
volume/mix (14%) related to market softness across the region,
partially offset by a 2% benefit from price realization. Net income
was $0.0 million a decline of
$(7.3) million year-over-year.
Operating income margin was 0.9% for the quarter ended March 30, 2024 and 1.7% for the quarter ended
April 1, 2023. Adjusted EBITDA was
$14.5 million, a decline of
$(3.1) million, while Adjusted EBITDA
Margin decreased by (40) basis points to 5.2%.
Cash Flow(1)
Net cash flow used in operations was ($11.0) million for the first quarter of 2024, a
$(10.3) million increase in use of
cash compared to net cash flow used in operations of ($0.7) million during the same period a year
ago. The decreased operating cash flow was due to lower net income
of ($42.9) million and a decline
in changes in accrued expenses of ($28.6) million, both of which were mostly
offset by a $62.7 million improvement
in cash flow associated with working capital.
Capital expenditures in the first quarter of 2024 increased by
$11.1 million to $34.7 million, up from $23.6 million in the first quarter of 2023.
Free Cash Flow used in the first quarter of 2024 was
($45.7) million, compared to Free
Cash Flow used in the first quarter of 2023 of $(24.3) million.
(1) Cash flow for the three months ended
April 1, 2023 includes the
Australasia segment.
Full Year 2024 Guidance
JELD-WEN is lowering its 2024 revenue guidance to a range
of $3.9 to $4.1 billion which
reflects Core Revenues that are down 5% to 9% compared to 2023. The
Company's new guidance range reflects a softening macro-environment
across the company's portfolio of products and geographies in
North America and Europe.
Further, and driven primarily by the updated demand outlook, the
Company now expects that 2024 Adjusted EBITDA will be within the
range of $340 to $380 million.
|
Revenue
|
Adjusted
EBITDA
|
Core Revenue
Decline
|
|
February 2024
Guidance
|
$4.0 to $4.3
billion
|
$370 to $420
million
|
Flat to (7%)
|
|
Updated
Guidance
|
$3.9 to $4.1
billion
|
$340 to $380
million
|
(5%) to (9%)
|
Due to the reduced Adjusted EBITDA guidance, the Company now
expects 2024 operating cash flow to be approximately $225 million compared to the previous outlook of
approximately $250 million. As part
of the Company's plan to improve its financial results, JELD-WEN
expects to use a portion of 2024 operating cash flows to invest in
itself with capital expenditures of approximately 4% of sales as
well as non-recurring cash expenses of approximately $100 million.
Conference Call Information
JELD-WEN management will host a conference call on May 7, 2024 at 8 a.m.
ET, to discuss the Company's financial results. Interested
investors and other parties can access the call either via webcast
by visiting the Investor Relations section of the Company's website
at https://investors.jeld-wen.com, or by dialing 888-596-4144 from
the United States or
+1-646-968-2525 internationally and using ID 7982813. A slide
presentation highlighting the Company's results is available on the
Investor Relations section of the Company's website.
For those unable to listen to the live event, a webcast replay
will be available approximately two hours following completion of
the call. To learn more about JELD-WEN, please visit the Company's
website at https://investors.jeld-wen.com.
Note: See "Non-GAAP Financial Information" section for
definitions and reconciliation of non-GAAP financial measures.
About JELD-WEN Holding, Inc.
JELD-WEN Holding, Inc. (NYSE: JELD) is a leading global
designer, manufacturer and distributor of high-performance interior
and exterior doors, windows, and related building products serving
the new construction and repair and remodeling sectors. Based in
Charlotte, North Carolina,
JELD-WEN operates facilities in 15 countries in North America and Europe and employs approximately 18,000
associates dedicated to bringing beauty and security to the spaces
that touch our lives. The JELD-WEN family of brands includes
JELD-WEN® worldwide, LaCantina® and VPI™ in North America, and Swedoor® and DANA® in
Europe. For more information,
visit corporate.JELD-WEN.com or follow us on LinkedIn.
Investor Relations Contact:
James Armstrong
Vice President, Investor Relations
704-378-5731
jarmstrong@jeldwen.com
Media Contact:
JELD-WEN Holding, Inc.
Caryn Klebba
Head of Global Public Relations
704-807-1275
mediana@jeldwen.com
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements are generally identified by
the use of forward-looking terminology, including the terms
"anticipate," "believe," "continue," "could," "estimate," "expect,"
"intend," "likely," "may," "plan," "possible," "potential,"
"predict," "project," "should," "target," "will," "would" and, in
each case, their negative or other various or comparable
terminology. All statements other than statements of historical
facts are forward-looking statements, including statements
regarding our business strategies and ability to execute on our
plans, market potential, future financial performance, customer
demand, the potential of our categories, brands and innovations,
the impact of our strategic, footprint rationalization, cost
reduction and modernization initiatives, the impact of acquisitions
and divestitures on our business and our ability to maximize value
and integrate operations, our pipeline of productivity projects,
the estimated impact of tax reform on our results, geopolitical and
economic uncertainty, security breaches and other cybersecurity
incidents, impacts on our business from weather and climate change,
litigation outcomes, and our expectations, beliefs, plans,
objectives, prospects, assumptions, or other future events, all of
which involve risks and uncertainties that could cause actual
results to differ materially. For a discussion of these risks and
uncertainties and other factors, please refer to our Annual Report
on Form 10-K for the year ended December 31,
2023, Quarterly Reports on Form 10-Q filed in 2024 and our
other filings with the U.S. Securities and Exchange Commission.
The forward-looking statements included in this release are made
as of the date hereof, and we undertake no obligation to update any
forward-looking statements, except as required by law.
Non-GAAP Financial Information
This press release presents certain "non-GAAP" financial
measures, including Adjusted EBITDA from continuing operations,
Adjusted EBITDA Margin from continuing operations, Adjusted Net
Income from continuing operations, Adjusted EPS from continuing
operations, Free Cash Flow, and Net Debt Leverage. The components
of these non-GAAP measures are computed by using amounts that are
determined in accordance with accounting principles generally
accepted in the United States of
America ("GAAP"). A reconciliation of non-GAAP financial
measures used in this press release to their nearest comparable
GAAP financial measures is included in the tables at the end of
this press release.
The Company provides certain guidance solely on a non-GAAP basis
because the Company cannot predict certain elements that are
included in certain reported GAAP results. While management is not
able to provide a reconciliation of items for forward-looking
non-GAAP measures without unreasonable effort, management bases the
estimated ranges of non-GAAP measures for future periods on its
reasonable estimates of certain items such as assumed effective tax
rate, assumed interest expense, and other assumptions about capital
requirements for future periods. Although the Company believes the
assumptions reflected in the range of its 2024 guidance are
reasonable, actual results could vary substantially given the
uncertainty regarding the future performance of the global economy,
ongoing geopolitical conflicts, disruptions in supply chains, and
changes in raw material prices and other costs as well as other
risks and uncertainties, including those described below. In
addition, the guidance ranges provided for 2024 do not include the
impact of potential acquisitions or divestitures. The variability
of these items may have a significant impact on our future GAAP
results.
Other companies may compute these measures differently. The
non-U.S. GAAP information has limitations as an analytical tool and
should not be considered in isolation from or as a substitute for
U.S. GAAP information. It does not purport to represent any
similarly titled U.S. GAAP information and is not an indicator of
our performance under U.S. GAAP.
We present several financial metrics in "Core" terms, which
exclude the impact of foreign exchange, acquisitions and
divestitures completed in the last twelve months. We define Core
Revenue as net revenue excluding the impact of foreign exchange,
and acquisitions and divestitures completed in the last twelve
months. The use of "Core" metrics assists management, investors,
and analysts in understanding the organic performance of the
operations.
We use Adjusted EBITDA from continuing operations, Adjusted
EBITDA Margin from continuing operations, Adjusted Net Income from
continuing operations, and Adjusted EPS because we believe they
assist investors and analysts in comparing our operating
performance across reporting periods on a consistent basis by
excluding items that we do not believe are indicative of our core
operating performance. Management believes Adjusted EBITDA from
continuing operations and Adjusted EBITDA Margin from continuing
operations are helpful in highlighting trends because they exclude
certain items outside the control of management, while other
measures can differ significantly depending on long-term strategic
decisions regarding capital structure, the tax jurisdictions in
which we operate, and capital investments. We use Adjusted EBITDA
from continuing operations and Adjusted EBITDA Margin from
continuing operations to measure our financial performance in
reporting our results to our Board of Directors. Further, our
executive incentive compensation is based in part on Adjusted
EBITDA from continuing operations. Adjusted EBITDA from continuing
operations should not be considered as an alternative to net income
as a measure of financial performance or to cash flows from
operations as a liquidity measure.
We define Adjusted EBITDA from continuing operations as income
(loss) from continuing operations, net of tax, adjusted for the
following items: income tax expense (benefit); depreciation and
amortization; interest expense, net; and certain special items
consisting of non-recurring net legal and professional expenses and
settlements; restructuring and asset-related charges; M&A
related costs; net (gain) loss on sale of property and equipment;
loss on extinguishment and refinancing of debt; share-based
compensation expense; non-cash foreign exchange
transaction/translation (gain) loss; and other special items.
Adjusted Net Income from continuing operations represents net
income (loss) from continuing operations adjusted for the after-tax
impact of (i) certain special items used to calculate Adjusted
EBITDA from continuing operations as described above and (ii)
accelerated amortization of an ERP that we are no longer utilizing
after we completed our related obligations under the JW Australia
Transition Services Agreement during the first quarter of 2024.
Where applicable, the specifically identified items are tax
effected at the applicable jurisdictional tax rate and tax expense
is adjusted to remove the effect of discrete tax items.
Adjusted EPS from continuing operations represents net income
(loss) from continuing operations per diluted share adjusted to
exclude the estimated per share impact of the same specifically
identified items used to calculate Adjusted Net Income from
continuing operations as described above.
Adjusted EBITDA Margin from continuing operations represents
Adjusted EBITDA from continuing operations as a percentage of net
revenues.
We present Free Cash Flow because we believe this metric assists
investors and analysts in determining the quality of our earnings.
Free Cash Flow is defined as net cash (used in) provided by
operating activities less capital expenditures (including purchases
of intangible assets). Free Cash Flow should not be considered as
an alternative to net cash (used in) provided by operating
activities as a liquidity measure. We also present Net Debt
Leverage because it is a key financial metric that is used by
management to assess the balance sheet risk of the Company. We
define Net Debt Leverage as Net Debt (total principal debt
outstanding less unrestricted cash) divided by Adjusted EBITDA from
continuing operations for the last twelve month period.
Due to rounding, numbers presented throughout this release may
not sum precisely to the totals provided and percentages may not
precisely reflect the absolute figures.
|
JELD-WEN Holding,
Inc.
Consolidated
Statements of Operations (Unaudited)
(In millions, except
share and per share data)
|
|
|
|
Three Months
Ended
|
|
|
|
|
March 30,
2024
|
|
April 1,
2023
|
|
% Variance
|
|
Net
revenues
|
|
$
959.1
|
|
$
1,080.5
|
|
(11.2) %
|
|
Cost of
sales
|
|
786.5
|
|
888.7
|
|
(11.5) %
|
|
Gross margin
|
|
172.6
|
|
191.8
|
|
(10.0) %
|
|
Selling, general and
administrative
|
|
182.8
|
|
152.8
|
|
19.7 %
|
|
Restructuring and
asset-related charges
|
|
18.1
|
|
9.3
|
|
94.9 %
|
|
Operating (loss)
income
|
|
(28.3)
|
|
29.8
|
|
(195.0) %
|
|
Interest expense,
net
|
|
15.7
|
|
21.5
|
|
(27.0) %
|
|
Loss on extinguishment
and refinancing of debt
|
|
1.4
|
|
—
|
|
NM
|
|
Other income,
net
|
|
(14.3)
|
|
(3.7)
|
|
286.8 %
|
|
(Loss) income from
continuing operations before taxes
|
|
(31.2)
|
|
12.0
|
|
(360.7) %
|
|
Income tax (benefit)
expense
|
|
(3.4)
|
|
3.5
|
|
(198.4) %
|
|
(Loss) income from
continuing operations, net of tax
|
|
(27.7)
|
|
8.5
|
|
(427.6) %
|
|
Income from
discontinued operations, net of tax
|
|
—
|
|
6.7
|
|
NM
|
|
Net (loss)
income
|
|
$
(27.7)
|
|
$
15.1
|
|
(283.2) %
|
|
Diluted Net (loss)
income per share from continuing operations
|
|
$
(0.32)
|
|
$
0.10
|
|
|
|
Diluted Net income per
share from discontinued operations
|
|
—
|
|
0.08
|
|
|
|
Diluted Net (loss)
income per share
|
|
$
(0.32)
|
|
$
0.18
|
|
|
|
Diluted
Shares
|
|
85,520,145
|
|
85,149,088
|
|
|
|
Other financial
data:
|
|
|
|
|
|
|
|
Operating (loss) income
margin
|
|
(2.9) %
|
|
2.8 %
|
|
|
|
Adjusted EBITDA from
continuing operations(1)
|
|
$
68.7
|
|
$
79.3
|
|
(13.4) %
|
|
Adjusted EBITDA Margin
from continuing operations(1)
|
|
7.2 %
|
|
7.3 %
|
|
|
|
|
|
(1)
|
Adjusted EBITDA from
continuing operations and Adjusted EBITDA Margin from continuing
operations are financial measures that are not calculated in
accordance with GAAP. For a discussion of our presentation of
Adjusted EBITDA from continuing operations and Adjusted EBITDA
Margin from continuing operations, see above under the heading
"Non-GAAP Financial Information."
|
|
JELD-WEN Holding,
Inc.
Consolidated Balance
Sheets (Unaudited)
(In millions, except
share and per share data)
|
|
|
March 30,
2024
|
|
December 31,
2023
|
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$
234.5
|
|
$
288.3
|
|
Restricted
cash
|
0.8
|
|
0.8
|
|
Accounts receivable,
net
|
528.5
|
|
516.7
|
|
Inventories
|
490.6
|
|
481.5
|
|
Other current
assets
|
76.0
|
|
71.5
|
|
Assets held for
sale
|
138.9
|
|
135.6
|
|
Total current
assets
|
1,469.1
|
|
1,494.3
|
|
Property and
equipment, net
|
647.4
|
|
644.2
|
|
Deferred tax
assets
|
157.6
|
|
150.5
|
|
Goodwill
|
382.8
|
|
390.2
|
|
Intangible assets,
net
|
107.7
|
|
123.9
|
|
Operating lease
assets, net
|
137.1
|
|
146.9
|
|
Other
assets
|
32.0
|
|
30.1
|
|
Total
assets
|
$
2,933.8
|
|
$
2,980.1
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
$
319.4
|
|
$
269.3
|
|
Accrued payroll and
benefits
|
90.8
|
|
132.6
|
|
Accrued expenses and
other current liabilities
|
252.3
|
|
233.8
|
|
Current maturities of
long-term debt
|
35.2
|
|
36.2
|
|
Liabilities held for
sale
|
7.1
|
|
7.1
|
|
Total current
liabilities
|
704.8
|
|
678.9
|
|
Long-term
debt
|
1,185.1
|
|
1,190.1
|
|
Unfunded pension
liability
|
26.3
|
|
26.5
|
|
Operating lease
liability
|
114.3
|
|
122.0
|
|
Deferred credits and
other liabilities
|
85.9
|
|
104.8
|
|
Deferred tax
liabilities
|
5.8
|
|
7.2
|
|
Total
liabilities
|
2,122.2
|
|
2,129.5
|
|
Shareholders'
equity
|
|
|
|
|
Preferred Stock, par
value $0.01 per share, 90,000,000 shares authorized; no
shares issued
and outstanding
|
—
|
|
—
|
|
Common Stock:
900,000,000 shares authorized, par value $0.01 per
share,
85,901,543 and
85,309,220 shares issued and outstanding as of March 30,
2024
and December 31,
2023, respectively.
|
0.9
|
|
0.9
|
|
Additional paid-in
capital
|
758.8
|
|
752.2
|
|
Retained
earnings
|
165.2
|
|
192.9
|
|
Accumulated other
comprehensive loss
|
(113.4)
|
|
(95.3)
|
|
Total shareholders'
equity
|
811.6
|
|
850.6
|
|
Total liabilities and
shareholders' equity
|
$
2,933.8
|
|
$
2,980.1
|
|
JELD-WEN Holding,
Inc.
Consolidated
Statements of Cash Flows (Unaudited)
(In
millions)
|
|
|
|
Three Months
Ended
|
|
|
March 30,
2024
|
|
April 1,
2023
|
|
OPERATING
ACTIVITIES
|
|
|
|
|
|
Net income
|
|
$
(27.7)
|
|
$
15.1
|
|
Adjustments to
reconcile net income to cash provided by (used in) operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
41.4
|
|
32.8
|
|
Deferred income
taxes
|
|
(7.4)
|
|
(4.3)
|
|
Net gain on
disposition of assets
|
|
(2.9)
|
|
(0.1)
|
|
Adjustment to carrying
value of assets
|
|
2.9
|
|
2.2
|
|
Amortization of
deferred financing costs
|
|
0.4
|
|
0.8
|
|
Loss on extinguishment
and refinancing of debt
|
|
0.8
|
|
—
|
|
Loss on foreign
currency translation adjustment related to the substantial
liquidation of a foreign subsidiary
|
|
4.3
|
|
—
|
|
Stock-based
compensation
|
|
5.1
|
|
4.4
|
|
Amortization of U.S.
pension expense
|
|
—
|
|
0.1
|
|
Recovery of cost from
receipts on impaired notes
|
|
(1.4)
|
|
(1.4)
|
|
Other items,
net
|
|
(2.5)
|
|
(4.3)
|
|
Net change in
operating assets and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
|
(17.6)
|
|
(100.2)
|
|
Inventories
|
|
(13.8)
|
|
31.8
|
|
Other
assets
|
|
(9.5)
|
|
(1.8)
|
|
Accounts payable and
accrued expenses
|
|
22.9
|
|
27.6
|
|
Change in short-term
and long-term tax liabilities
|
|
(6.1)
|
|
(3.3)
|
|
Net cash used in
operating activities
|
|
(11.0)
|
|
(0.7)
|
|
INVESTING
ACTIVITIES
|
|
|
|
|
|
Purchases of property
and equipment
|
|
(31.2)
|
|
(21.4)
|
|
Proceeds from sale of
property and equipment
|
|
3.3
|
|
0.4
|
|
Purchase of intangible
assets
|
|
(3.5)
|
|
(2.2)
|
|
Recovery of cost from
receipts on impaired notes
|
|
1.4
|
|
1.4
|
|
Cash received from
insurance proceeds
|
|
1.7
|
|
3.2
|
|
Change in securities
for deferred compensation plan
|
|
(2.1)
|
|
(0.4)
|
|
Net cash used in
investing activities
|
|
(30.5)
|
|
(19.0)
|
|
FINANCING
ACTIVITIES
|
|
|
|
|
|
Change in long-term
debt and payments of debt extinguishment costs
|
|
(7.7)
|
|
0.3
|
|
Common stock issued
for exercise of options
|
|
2.0
|
|
—
|
|
Payments to tax
authorities for employee share-based compensation
|
|
(0.4)
|
|
(0.4)
|
|
Payments related to
the sale of JW Australia
|
|
(0.7)
|
|
—
|
|
Net cash used in
financing activities
|
|
(6.8)
|
|
(0.1)
|
|
Effect of foreign
currency exchange rates on cash
|
|
(5.6)
|
|
2.9
|
|
Net (decrease) in cash
and cash equivalents
|
|
(53.9)
|
|
(16.9)
|
|
Cash, cash equivalents
and restricted cash, beginning
|
|
289.1
|
|
220.9
|
|
Cash, cash equivalents
and restricted cash, ending
|
|
$
235.2
|
|
$
204.0
|
|
Cash flow for the three
months ended April 1, 2023 includes the Australasia
segment.
|
|
|
|
JELD-WEN Holding,
Inc.
Reconciliation of
Non-GAAP Financial Measures (Unaudited)
(In
millions)
|
|
|
Three Months
Ended
|
|
March 30,
2024
|
|
April 1,
2023
|
|
(Loss) income from
continuing operations, net of tax
|
$
(27.7)
|
|
$
8.5
|
|
Income tax (benefit)
expense
|
(3.4)
|
|
3.5
|
|
Depreciation and
amortization(1)
|
41.4
|
|
28.3
|
|
Interest expense,
net
|
15.7
|
|
21.5
|
|
Special
items:
|
|
|
|
|
Net legal and
professional expenses and settlements(2)
|
17.2
|
|
1.8
|
|
Restructuring and
asset-related charges(3)
|
18.1
|
|
9.3
|
|
M&A related
costs(4)
|
1.1
|
|
2.7
|
|
Net gain on sale of
property and equipment(5)
|
(2.9)
|
|
(0.1)
|
|
Loss on extinguishment
and refinancing of debt(6)
|
1.4
|
|
—
|
|
Share-based
compensation expense(7)
|
5.1
|
|
4.1
|
|
Non-cash foreign
exchange transaction/translation gain(8)
|
(1.5)
|
|
(1.6)
|
|
Other special
items(9)
|
4.3
|
|
1.3
|
|
Adjusted EBITDA from
continuing operations
|
$
68.7
|
|
$
79.3
|
|
|
|
(1)
|
Depreciation and
amortization expense in the three months ended March 30, 2024
includes accelerated amortization of $14.1 million in Corporate and
unallocated costs for an ERP that we are no longer utilizing after
we completed our related obligations under the JW Australia
Transition Services Agreement during the first quarter of
2024.
|
|
(2)
|
Net legal and
professional expenses and settlements include strategic
transformation expenses, which are primarily third-party advisory
fees, of $16.4 million and $1.4 million in the three months ended
March 30, 2024 and April 1, 2023, respectively. The residual
amounts primarily relate to litigation.
|
|
(3)
|
Represents severance,
accelerated depreciation and amortization, equipment relocation and
other expenses directly incurred as a result of restructuring
events. The restructuring charges primarily relate to charges
incurred to change the operating structure, eliminate certain
roles, and close certain manufacturing facilities in our North
America and Europe segments.
|
|
(4)
|
M&A related costs
consists primarily of legal and professional expenses related to
the disposition of Towanda.
|
|
(5)
|
Net gain on sale of
property and equipment, primarily in Chile, in the three months
ended March 30, 2024.
|
|
(6)
|
Loss on extinguishment
and refinancing of debt of $1.4 million associated with an
amendment of our Term Loan Facility.
|
|
(7)
|
Represents non-cash
equity-based compensation expense related to the issuance of
share-based awards.
|
|
(8)
|
Non-cash foreign
exchange transaction/translation gain primarily associated with
fair value adjustments of foreign currency derivatives and
revaluation of balances denominated in foreign
currencies.
|
|
(9)
|
Other special items not
core to ongoing business activity in the three months ended March
30, 2024 include a loss of $4.3 million of cumulative foreign
currency translation adjustments related to the substantial
liquidation of a foreign subsidiary in Chile in our North America
segment and ($1.5) million of cash received on an impaired note in
Corporate and unallocated costs.
|
|
|
|
To conform with current
period presentation, certain amounts in prior period information
have been reclassified.
|
|
|
Three Months
Ended
|
|
(amounts in
millions, except share and per share data)
|
|
March 30,
2024
|
|
April 1,
2023
|
|
(Loss) income from
continuing operations, net of tax
|
|
$
(27.7)
|
|
$
8.5
|
|
Special
items:(1)
|
|
|
|
|
|
Net legal and
professional expenses and settlements
|
|
17.2
|
|
1.8
|
|
Restructuring and
asset-related charges
|
|
18.1
|
|
9.3
|
|
M&A related
costs
|
|
1.1
|
|
2.7
|
|
Net gain on sale of
property and equipment
|
|
(2.9)
|
|
(0.1)
|
|
Loss on extinguishment
and refinancing of debt
|
|
1.4
|
|
—
|
|
Share-based
compensation expense
|
|
5.1
|
|
4.1
|
|
Non-cash foreign
exchange transaction/translation gain
|
|
(1.5)
|
|
(1.6)
|
|
Accelerated
amortization of an ERP system(2)
|
|
14.1
|
|
—
|
|
Other special
items
|
|
4.3
|
|
1.3
|
|
Tax impact of special
items(3)
|
|
(13.4)
|
|
(5.4)
|
|
Tax special
items
|
|
2.6
|
|
1.0
|
|
Adjusted Net
Income from continuing operations
|
|
$
18.4
|
|
$
21.6
|
|
|
|
|
|
|
Diluted (loss)
income per share from continuing operations
|
|
$
(0.32)
|
|
$
0.10
|
|
Special
items:(1)
|
|
|
|
|
|
Net legal and
professional expenses and settlements
|
|
0.20
|
|
0.02
|
|
Restructuring and
asset-related charges
|
|
0.21
|
|
0.11
|
|
M&A related
costs
|
|
0.01
|
|
0.03
|
|
Net gain on sale of
property of equipment
|
|
(0.03)
|
|
—
|
|
Loss on extinguishment
and refinancing of debt
|
|
0.02
|
|
—
|
|
Share-based
compensation expense
|
|
0.06
|
|
0.05
|
|
Non-cash foreign
exchange transaction/translation gain
|
|
(0.02)
|
|
(0.02)
|
|
Accelerated
amortization of an ERP system(2)
|
|
0.16
|
|
—
|
|
Other special
items
|
|
0.05
|
|
0.02
|
|
Tax impact of special
items(3)
|
|
(0.15)
|
|
(0.06)
|
|
Tax special
items
|
|
0.03
|
|
0.01
|
|
Adjusted Net
Income per share from continuing operations
|
|
$
0.21
|
|
$
0.25
|
|
|
|
|
|
|
Weighted average
diluted shares used in adjusted EPS calculation represent
the
fully dilutive shares
for the three months ended March 30, 2024 and April 1,
2023,
respectively.(4)
|
|
87,096,028
|
|
85,149,088
|
|
|
|
Adjusted Net Income
from continuing operations per share may not sum due to
rounding.
|
|
(1)
|
Refer to the
calculation of Adjusted EBITDA from continuing operations for a
discussion of the Special items listed above.
|
|
(2)
|
Accelerated
amortization of an ERP that we are no longer utilizing after we
completed our related obligations under the JW Australia Transition
Services Agreement during the first quarter of 2024.
|
|
(3)
|
Except as otherwise
noted, adjustments to net income and net income per share are
tax-effected at the jurisdictional statutory tax rate.
|
|
(4)
|
Dilutive shares for
March 30, 2024 includes basic weighted average shares outstanding
of 85,520,145 and the dilutive impact of restricted stock units,
performance share units, and options to purchase common stock of
1,575,883.
|
|
To conform with current
period presentation, certain amounts in prior period information
have been reclassified.
|
|
|
Three Months Ended
March 30, 2024
|
|
(amounts in
millions)
|
|
North
America
|
|
Europe
|
|
Total
Operating
Segments
|
|
Corporate
and
Unallocated
Costs
|
|
Total
Consolidated
|
|
Income (loss) from
continuing operations, net of tax
|
|
$
16.3
|
|
$
—
|
|
$
16.3
|
|
$
(44.0)
|
|
$
(27.7)
|
|
Income tax expense
(benefit)
|
|
7.4
|
|
2.9
|
|
10.3
|
|
(13.7)
|
|
(3.4)
|
|
Depreciation and
amortization
|
|
18.0
|
|
7.5
|
|
25.5
|
|
15.9
|
|
41.4
|
|
Interest expense,
net
|
|
0.7
|
|
0.3
|
|
1.0
|
|
14.6
|
|
15.7
|
|
Special
items:(1)
|
|
|
|
|
|
|
|
|
|
|
|
Net legal and
professional expenses and settlements
|
|
0.8
|
|
0.3
|
|
1.0
|
|
16.1
|
|
17.2
|
|
Restructuring and
asset-related charges
|
|
13.9
|
|
4.0
|
|
17.9
|
|
0.2
|
|
18.1
|
|
M&A related
costs
|
|
—
|
|
—
|
|
—
|
|
1.1
|
|
1.1
|
|
Net gain on sale of
property and equipment
|
|
(2.8)
|
|
—
|
|
(2.9)
|
|
—
|
|
(2.9)
|
|
Loss on extinguishment
and refinancing of debt
|
|
—
|
|
—
|
|
—
|
|
1.4
|
|
1.4
|
|
Share-based
compensation expense
|
|
1.2
|
|
0.5
|
|
1.8
|
|
3.3
|
|
5.1
|
|
Non-cash foreign
exchange transaction/translation gain
|
|
—
|
|
(0.9)
|
|
(0.9)
|
|
(0.6)
|
|
(1.5)
|
|
Other special
items
|
|
5.6
|
|
—
|
|
5.6
|
|
(1.4)
|
|
4.3
|
|
Adjusted EBITDA from
continuing operations
|
|
$
61.2
|
|
$
14.5
|
|
$
75.7
|
|
$
(7.0)
|
|
$
68.7
|
|
|
|
(1)
|
Refer to the
calculation of Adjusted EBITDA from continuing operations for a
discussion of the Special items listed above.
|
|
|
Three Months Ended
April 1, 2023
|
|
(amounts in
millions)
|
|
North
America
|
|
Europe
|
|
Total
Operating
Segments
|
|
Corporate
and
Unallocated
Costs
|
|
Total
Consolidated
|
|
Income (loss) from
continuing operations, net of tax
|
|
$
35.2
|
|
$
7.3
|
|
$
42.5
|
|
$
(34.1)
|
|
$
8.5
|
|
Income tax expense
(benefit)
|
|
14.5
|
|
1.4
|
|
15.9
|
|
(12.5)
|
|
3.5
|
|
Depreciation and
amortization
|
|
17.8
|
|
7.4
|
|
25.2
|
|
3.1
|
|
28.3
|
|
Interest expense,
net
|
|
2.8
|
|
0.1
|
|
3.0
|
|
18.5
|
|
21.5
|
|
Special
items:(1)
|
|
|
|
|
|
|
|
|
|
|
|
Net legal and
professional expenses and settlements
|
|
—
|
|
0.1
|
|
0.1
|
|
1.8
|
|
1.8
|
|
Restructuring and
asset-related charges
|
|
7.8
|
|
1.3
|
|
9.1
|
|
0.2
|
|
9.3
|
|
M&A related
costs
|
|
0.2
|
|
—
|
|
0.2
|
|
2.5
|
|
2.7
|
|
Net gain on sale of
property and equipment
|
|
—
|
|
(0.1)
|
|
(0.1)
|
|
—
|
|
(0.1)
|
|
Share-based
compensation expense
|
|
1.0
|
|
0.5
|
|
1.5
|
|
2.7
|
|
4.1
|
|
Non-cash foreign
exchange transaction/translation (gain) loss
|
|
(0.2)
|
|
(1.7)
|
|
(1.9)
|
|
0.3
|
|
(1.6)
|
|
Other special
items
|
|
(0.1)
|
|
1.3
|
|
1.3
|
|
—
|
|
1.3
|
|
Adjusted EBITDA from
continuing operations
|
|
$
79.2
|
|
$
17.6
|
|
$
96.8
|
|
$
(17.5)
|
|
$
79.3
|
|
|
|
(1)
|
Refer to the
calculation of Adjusted EBITDA from continuing operations for a
discussion of the Special items listed above.
|
|
To conform with current
period presentation, certain amounts in prior period information
have been reclassified.
|
|
|
Three Months
Ended
|
|
|
March 30,
2024
|
|
April 1,
2023
|
|
Net cash used in
operating activities (1)
|
|
$
(11.0)
|
|
$
(0.7)
|
|
Less capital
expenditures (1)
|
|
34.7
|
|
23.6
|
|
Free Cash Flow
(1)(2)
|
|
$
(45.7)
|
|
$
(24.3)
|
|
|
|
(1)
|
Cash flow information
is inclusive of cash flows from the Australasia segment through the
divestiture date of July 2, 2023.
|
|
(2)
|
Free Cash Flow is a
financial measure that is not calculated in accordance with GAAP.
For a discussion of our presentation of Free Cash Flow, see above
under the heading "Non-GAAP Financial Information."
|
|
|
March 30,
2024
|
|
December 31,
2023
|
|
Total debt
|
|
$
1,220.4
|
|
$
1,226.3
|
|
Less cash and cash
equivalents
|
|
234.5
|
|
288.3
|
|
Net Debt
(1)
|
|
$
985.9
|
|
$
938.0
|
|
Divided by trailing
twelve months Adjusted EBITDA from continuing operations
(2)
|
|
369.8
|
|
380.4
|
|
Net Debt Leverage
(1)
|
|
2.7x
|
|
2.5x
|
|
|
|
(1)
|
Net Debt and Net Debt
Leverage are financial measures that are not calculated in
accordance with GAAP. For a discussion of our presentation of Net
Debt Leverage, see above under the heading "Non-GAAP Financial
Information."
|
|
(2)
|
Trailing twelve months
Adjusted EBITDA from continuing operations for both periods.
Adjusted EBITDA from continuing operations is a financial measure
that is not calculated in accordance with GAAP. For a discussion of
our presentation of Adjusted EBITDA from continuing operations, see
above under the heading "Non-GAAP Financial
Information."
|
|
Segment Results
(Unaudited)
(In
millions)
|
|
|
|
Three Months
Ended
|
|
|
|
|
March 30,
2024
|
|
April 1,
2023
|
|
|
|
Net revenues from
external customers
|
|
|
|
|
|
% Variance
|
|
North
America
|
|
$
680.0
|
|
$
768.0
|
|
(11.5) %
|
|
Europe
|
|
279.1
|
|
312.5
|
|
(10.7) %
|
|
Total
Consolidated
|
|
$
959.1
|
|
$
1,080.5
|
|
(11.2) %
|
|
Adjusted EBITDA from
continuing operations (1)
|
|
|
|
|
|
|
|
North
America
|
|
$
61.2
|
|
$
79.2
|
|
(22.7) %
|
|
Europe
|
|
14.5
|
|
17.6
|
|
(17.8) %
|
|
Corporate and
unallocated costs
|
|
(7.0)
|
|
(17.5)
|
|
(60.1) %
|
|
Total
Consolidated
|
|
$
68.7
|
|
$
79.3
|
|
(13.4) %
|
|
|
|
(1)
|
Adjusted EBITDA from
continuing operations is a financial measure that is not calculated
in accordance with GAAP. For a discussion of our presentation of
Adjusted EBITDA from continuing operations, see above under the
heading "Non-GAAP Financial Information."
|
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SOURCE JELD-WEN Holding, Inc.
