JELD-WEN Announces Fourth Quarter and Full Year 2017 Results; Provides 2018 Outlook; and Announces Closing of Domoferm Acquisition
CHARLOTTE, N.C.--(BUSINESS WIRE)--
JELD-WEN Holding, Inc. (NYSE:JELD) today announced results for the three
months and full year ended December 31, 2017, provided its 2018 outlook,
and announced the closing of its previously disclosed acquisition of the
Domoferm Group.
Highlights:
-
Net revenues for the fourth quarter increased 0.3% on five fewer
shipping days, bringing the full year total increase in net revenues
to 2.6%
-
Net loss for the fourth quarter amounted to $93.7 million, impacted by
non-cash tax charges and expenses related to the December debt
refinancing
-
Diluted earnings (loss) per share ("EPS") for the fourth quarter was a
loss of $(0.89) and adjusted EPS amounted to $0.26
-
Adjusted EBITDA for the fourth quarter amounted to $103.1 million,
bringing the full year total adjusted EBITDA to $437.6 million, an
increase of 11.2% over the prior year
-
Full year 2017 cash flow from operations improved $64.1 million, or
31.8%, over the prior year and free cash flow improved $80.6 million,
or 66.0%, over the prior year
-
Previously announced acquisition of Domoferm closed on February 19,
2018
-
Outlook for 2018 includes net revenue growth of 8.0% to 11.0% and
adjusted EBITDA of $500 million to $530 million
“JELD-WEN completed 2017 by delivering another consecutive quarter of
earnings growth and margin improvement. Strong execution and margin
improvement in most of our portfolio was offset by continued operational
headwinds in specific product lines. Based on our continued progress
with JEM in the fourth quarter, I have confidence we are on the right
path towards consistent future execution and expect to see sequential
improvement throughout 2018,” said Mark Beck, president and chief
executive officer. “Our recent acquisitions continue to perform ahead of
plan. We remain enthusiastic about our pipeline and our ability to
create value through strategic M&A."
Fourth Quarter 2017 Results
Net revenues for the three months ended December 31, 2017 increased $2.8
million, or 0.3%, to $976.0 million, compared to $973.2 million for the
same period last year. The increase was driven by a 4% contribution from
recent acquisitions and 2% due to the favorable impact of foreign
exchange, partially offset by a decrease in core revenues of 6%. Core
revenues, which exclude the impact of foreign exchange and acquisitions
completed in the last twelve months, decreased primarily due to the
impact of five fewer shipping days in the quarter and the previously
announced business line rationalization in Florida. Excluding the impact
of these headwinds, the company estimates that normalized fourth quarter
core revenues increased approximately 3%.
Net loss was $93.7 million, compared to net income of $258.2 million in
the same quarter last year, a reduction of $351.9 million. The reduction
in net income was primarily due to the non-recurrence of a significant
non-cash tax benefit from the release of certain valuation allowances
recorded in the fourth quarter of 2016, approximately $98 million of
distinct non-cash tax charges in the fourth quarter of 2017 associated
with the U.S. Tax Cuts and Jobs Act ("Tax Act"), as well as $23.3
million of debt extinguishment costs related to the company's fourth
quarter debt refinancing.
EPS for the fourth quarter was a loss of $(0.89) and adjusted EPS was
$0.26. A comparison of EPS to the same period last year would not be
meaningful because of the material change in the company’s capital
structure that resulted from its February 2017 initial public offering
("IPO"), as well as the dilutive impact of the primary shares issued in
the IPO.
Adjusted EBITDA increased $1.3 million, or 1.3%, to $103.1 million,
compared to $101.8 million in the same quarter last year. Adjusted
EBITDA margins expanded 10 basis points in the quarter to 10.6%, from
10.5% in the same quarter a year ago. Overall margins were unfavorably
impacted by reduced volume as a result of fewer shipping days. Margin
improvement in the Australasia and Europe segments was offset by
continued operational headwinds in the North America windows product
line.
On a segment basis for the fourth quarter of 2017, compared to the same
period last year:
- North America - Net revenues decreased $18.9 million, or
(3.3)%, to $550.3 million, due to a decrease in core revenues of 7%,
partially offset by a 4% contribution from recent acquisitions. The
decrease in core revenues was primarily due to the volume impact of
five fewer shipping days in the quarter and the impact of the business
line rationalization in Florida. Adjusted EBITDA decreased $4.5
million, or 6.9%, to $61.1 million. Adjusted EBITDA margin declined by
40 basis points to 11.1%. Margins declined primarily due to higher
freight costs and operating inefficiencies in our North America
windows product line.
- Europe - Net revenues increased $19.9 million, or 7.8%, to
$276.4 million, primarily due to a 7% favorable impact from foreign
exchange and 3% from the contribution of recent acquisitions, offset
by a 2% decrease in core revenues. The decrease in core revenues was
primarily due to the volume impact of reduced shipping days. Adjusted
EBITDA increased $3.1 million, or 9.7%, to $35.3 million. Adjusted
EBITDA margin increased by 30 basis points to 12.8%.
- Australasia - Net revenues increased $1.9 million, or 1.3%, to
$149.2 million, primarily due to the contribution from recent
acquisitions of 4% and the favorable impact of foreign exchange of 2%,
offset by a decrease in core revenues of 5%. The decrease in core
revenues was primarily due to the volume impact of reduced shipping
days. Adjusted EBITDA increased $2.7 million, or 14.6%, to $21.2
million. Adjusted EBITDA margin expanded by 160 basis points to 14.2%.
Full Year 2017 Results
Net revenues for the twelve months ended December 31, 2017 increased
$97.1 million, or 2.6%, to $3.764 billion, compared to $3.667 billion in
2016. The increase was primarily driven by the contribution of recent
acquisitions of 2% and the favorable impact of foreign exchange of 1%.
Core revenues were unchanged for the full year, as favorable pricing in
all three reporting segments was offset by reduced volumes in North
America from the unfavorable impact of the business rationalization in
Florida and lower window revenues.
Net income decreased $366.4 million to $10.8 million, compared to $377.2
million in 2016. The decrease in net income was primarily due the
non-recurrence of a significant non-cash tax benefit from the release of
certain valuation allowances recorded in the fourth quarter of 2016,
approximately $98 million of distinct non-cash tax charges in the fourth
quarter of 2017 associated with the Tax Act, higher legal costs in 2017,
and debt extinguishment costs related to debt refinancing activity.
EPS was $0.00 and adjusted EPS was $1.48.
Adjusted EBITDA increased $43.9 million, or 11.2%, to $437.6 million,
compared to $393.7 million in 2016. Adjusted EBITDA margins expanded 90
basis points to 11.6%, from 10.7% in 2016.
Balance Sheet and Cash Flow
Cash and cash equivalents as of December 31, 2017 were $220.2 million,
compared to $102.7 million as of December 31, 2016. Total debt as of
December 31, 2017 was $1.274 billion, compared to $1.620 billion as of
December 31, 2016. On February 1, 2017, the company received net
proceeds from its IPO of $472.4 million and used a portion of these
proceeds to repay $375.0 million of debt. On December 14, 2017, the
company completed a comprehensive debt refinancing, including an $800
million senior notes offering, strengthening its capital structure with
fixed rate interest and extended maturities. In conjunction with the
refinancing, the company incurred debt extinguishment costs of $23.3
million.
Cash flow from operations improved $64.1 million in 2017 to $265.8
million, from $201.7 million in the same period last year. Free cash
flow improved $80.6 million in 2017 to $202.7 million, from $122.2
million in the same period last year. Additionally, during 2017, the
company invested a total of $131.4 million for the acquisitions of
Mattiovi, Kolder Group, and MMI Door.
Domoferm Acquisition
On February 19, 2018, the company completed its acquisition of the
Domoferm Group of companies (“Domoferm”) from holding company Domoferm
International GmbH, which was previously announced on October 11, 2017.
Domoferm is a leading European provider of steel doors, steel door
frames, and fire doors for commercial and residential markets. Domoferm
is based in Gänserndorf, Austria, with over 1,000 employees at four
manufacturing sites in Austria, Germany, and the Czech Republic.
Domoferm’s capabilities in steel frames and doors significantly expand
JELD-WEN's current European product range, including in the area of
certified door systems. JELD-WEN expects the acquisition to add
approximately €110 million in annualized revenue. Terms of the
acquisition were not disclosed.
Annual Outlook for 2018
For full year 2018 compared to full year 2017, the company expects net
revenue growth of 8.0% to 11.0%. The outlook for net revenue growth
assumes core revenue growth of approximately 3%, based on expectations
for favorable demand drivers in the North America and Europe segments,
offset by continued market weakness in the Australasia segment. The
outlook also assumes current foreign exchange rates and contributions
from recent acquisitions, including the carryover of three acquisitions
closed in 2017 as well as the partial year impact of the Domoferm
acquisition.
The company's outlook for 2018 adjusted EBITDA is $500 million to $530
million, compared to 2017 adjusted EBITDA of $437.6 million. The outlook
for adjusted EBITDA reflects margin improvement from our JEM
initiatives, profitable core growth, and contributions from recent
acquisitions.
Capital expenditures are expected to be in the range of $100 million to
$120 million, compared to 2017 capital expenditures of $63.0 million.
“Looking forward into 2018, we are well positioned for core revenue
growth, supported by constructive end market demand and our continued
investments in new products and innovation," stated Beck. "We are
confident that our JEM initiatives will continue to drive self-help
margin improvement. We will also remain disciplined as we use our
healthy balance sheet to continue executing on our pipeline of M&A
opportunities."
Adjustments to Previously Reported Financial Information
During the year, we identified errors related to the tax treatment of
our share-based compensation expense and the inter-quarter allocation of
a tax benefit associated with the release of a valuation allowance in a
foreign jurisdiction reported for the year ended December 31, 2016. The
amounts are not material to the periods impacted, and we have elected to
revise our previously issued consolidated financial statements in our
upcoming filings to correct the prior periods. In addition to the tax
corrections, we also revised the financial statements for other
accumulated misstatements impacting the period. The cumulative impact of
the corrections for the three months ended December 31, 2016 was an
increase in cost of sales of $9.6 million, a decrease in selling,
general and administrative expense of $7.9 million, an increase to
income tax benefit of $26.3 million and an increase in earnings on
non-consolidated entities of $0.5 million. The corrections had no impact
on cash flow and decreased adjusted EBITDA by $1.3 million. The
cumulative impact of the corrections for the twelve months ended
December 31, 2016 was an increase in cost of sales of $25.4 million, a
decrease in selling, general and administrative expense of $23.8
million, an increase to income tax benefit of $20.8 million and an
increase in earnings on non-consolidated entities of $0.5 million. The
corrections had no impact on cash flow and decreased adjusted EBITDA by
$0.5 million. Please refer to our Form 10-K for the twelve month period
ended December 31, 2017 for additional details.
Conference Call Information
JELD-WEN management will host a conference call today, February 21,
2018, at 8 a.m. EST, to discuss the company’s financial results. The
conference call can be accessed by dialing (877) 407-9208 (domestic) or
(201) 493-6784 (international). A telephonic replay will be available
approximately two hours after the call by dialing (844) 512-2921, or for
international callers, (412) 317-6671. The passcode for the replay is
13675654. The replay will be available until 11:59 p.m. EST on March 8,
2018.
Interested investors and other parties can also listen to a webcast of
the live conference call by logging onto the Investor Relations section
of the company’s website at http://investors.jeld-wen.com.
The online replay will be available for 30 days on the same website
immediately following the call. A slide presentation highlighting the
company’s results will also be available on the Investor Relations
section of the company’s website.
To learn more about JELD-WEN, please visit the company’s website at http://investors.jeld-wen.com.
About JELD-WEN
JELD-WEN, founded in 1960, is one of the world’s largest door and window
manufacturers, operating over 120 manufacturing facilities in 19
countries located primarily in North America, Europe and Australia.
Headquartered in Charlotte, N.C., JELD-WEN designs, produces and
distributes an extensive range of interior and exterior doors, wood,
vinyl and aluminum windows and related products for use in the new
construction and repair and remodeling of residential homes and
non-residential buildings. JELD-WEN is a recognized leader in
manufacturing energy-efficient products and has been an ENERGY STAR®
Partner since 1998. Our products are marketed globally under the JELD-WEN®
brand, along with several market-leading regional brands such as Swedoor®
and DANA® in Europe and Corinthian®, Stegbar®,
and Trend® in Australia.
Forward-Looking Statements
This press release contains certain “forward-looking statements”
regarding business strategies, market potential, future financial
performance, the potential of our categories and brands, our outlook for
2018, and our expectations, beliefs, plans, objectives, prospects,
assumptions, or other future events. Forward-looking statements are
generally identified by our use of forward-looking terminology such as
“anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”,
“intend”, “may”, “might”, “plan”, “potential”, “predict”, “seek”, or
“should”, or the negative thereof or other variations thereon or
comparable terminology. Where, in any forward-looking statement, we
express an expectation or belief as to future results or events, such
expectation or belief is based on the current plans, expectations,
assumptions, estimates, and projections of our management. Although we
believe that these statements are based on reasonable expectations,
assumptions, estimates and projections, they are only predictions and
involve known and unknown risks, many of which are beyond our control
that could cause actual outcomes and results to be materially different
from those indicated in such statements.
Our actual results could differ materially from the results contemplated
by these forward-looking statements due to a number of factors,
including the factors discussed in our Annual Reports on Form 10-K, and
our Quarterly Reports on Form 10-Q, both filed with the Securities and
Exchange Commission.
The assumptions underlying the guidance provided for 2018 include the
achievement of anticipated improvements in end markets, competitive
position, and product portfolio; stable macroeconomic factors; no
changes in foreign currency exchange and tax rates; favorable interest
expense due to the recent debt reduction; and our future business plans.
The forward-looking statements included in this release are made as of
the date hereof, and except as required by law, we undertake no
obligation to update, amend or clarify any forward-looking statements to
reflect events, new information or circumstances occurring after the
date of this release.
Non-GAAP Financial Information
This press release presents certain “non-GAAP” financial measures. 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, including the variables
and individual adjustments necessary for a reconciliation to GAAP. While
management is not able to specifically quantify the reconciliation 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 such factors as assumed effective
tax rate, assumed interest expense, and other assumptions about capital
requirements for future periods.
We use Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income, 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 and Adjusted EBITDA margin are helpful in highlighting
trends because they exclude the results of decisions that are 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 and Adjusted EBITDA margin to measure our financial
performance and also to report our results to our board of directors.
Further, our executive incentive compensation is based in part on
Adjusted EBITDA. In addition, we use Adjusted EBITDA as calculated
herein for purposes of calculating compliance with our debt covenants in
certain of our debt facilities. Adjusted EBITDA 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 as net income (loss), eliminating the impact
of the following items: loss from discontinued operations, net of tax;
(gain) loss on sale of discontinued operations, net of tax; equity
(earnings) loss of non-consolidated entities; income tax; depreciation
and amortization; interest expense, net; impairment and restructuring
charges; (gain) loss on sale of property and equipment; share-based
compensation expense; non-cash foreign exchange transaction/translation
(income) loss; other non-cash items; non-recurring, extraordinary items;
other items; and costs related to debt restructuring, debt refinancing,
and the Onex investment. Adjusted EBITDA margin is defined as Adjusted
EBITDA divided by net revenues.
We present free cash flow because we believe it assists investors and
analysts in determining the quality of our earnings. We also use free
cash flow to measure our financial performance and to report to our
board of directors. In addition, our executive incentive compensation is
based in part on free cash flow. We define free cash flow as cash flow
from operations less capital expenditures (including purchases of
intangible assets). Free cash flow should not be considered as an
alternative to cash flows from operations as a liquidity measure.
Adjusted net income represents net income adjusted for the after-tax
impact of i) non-cash foreign currency (gains) losses, ii) impairment
and restructuring charges, and iii) other non-recurring expenses
associated with certain matters such as our initial public offering,
secondary offering, mergers, and litigation. Adjusted EPS represents net
income per diluted share adjusted to exclude the estimated per share
impact of the same specifically identified items used to calculate
adjusted net income as described above. All such items are tax-effected
at our estimated annual effective tax rate.
Other companies may compute these measures differently. No non-GAAP
metric should be considered as an alternative to any other measure
derived in accordance with GAAP.
Due to rounding, numbers presented throughout this document 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) |
| | | | | |
|
| | | Three Months Ended | | | |
| | | December 31,
2017 |
|
| December 31,
2016 | | | % Variance |
|
Net revenues
| | |
$
|
976.0
| | | |
$
|
973.2
| | | |
0.3
|
%
|
|
Cost of sales
| | |
|
770.3
|
| | |
|
764.2
|
| | |
0.8
|
%
|
|
Gross margin
| | | |
205.7
| | | | |
209.0
| | | |
(1.6
|
)%
|
|
Selling, general and administrative
| | | |
151.3
| | | | |
173.1
| | | |
(12.6
|
)%
|
|
Impairment and restructuring charges
| | |
|
9.0
|
| | |
|
4.8
|
| | |
88.2
|
%
|
|
Operating income
| | | |
45.3
| | | | |
31.0
| | | |
46.0
|
%
|
|
Interest expense, net
| | | |
17.4
| | | | |
23.9
| | | |
(27.1
|
)%
|
|
Loss on debt extinguishment
| | | |
23.3
| | | | |
—
| | | |
100.0
|
%
|
|
Other income
| | |
|
(6.2
|
)
| | |
|
(3.9
|
)
| | |
61.4
|
%
|
|
Income before taxes, equity earnings and discontinued operations
| | | |
10.9
| | | | |
11.0
| | | |
(1.3
|
)%
|
|
Income tax expense (benefit)
| | |
|
105.6
|
| | |
|
(246.3
|
)
| | |
(142.9
|
)%
|
|
(Loss) income from continuing operations, net of tax
| | | |
(94.7
|
)
| | | |
257.3
| | | |
(136.8
|
)%
|
|
Equity earnings of non-consolidated entities
| | | |
1.0
| | | | |
1.3
| | | |
(24.7
|
)%
|
|
Loss from discontinued operations, net of tax
| | |
|
—
|
| | |
|
(0.5
|
)
| | |
NM
|
|
|
Net (loss) income
| | |
$
|
(93.7
|
)
| | |
$
|
258.2
|
| | |
(136.3
|
)%
|
| Other financial data: | | | | | | | | | |
|
Adjusted EBITDA(1) | | |
$
|
103.1
| | | |
$
|
101.8
| | | |
1.3
|
%
|
|
Adjusted EBITDA Margin
| | | |
10.6
|
%
| | | |
10.5
|
%
| | | |
(1) |
| Adjusted EBITDA is a financial measure that is not calculated
in accordance with GAAP. For a discussion of our presentation of
Adjusted EBITDA, see above under the heading “Non-GAAP Financial
Information”. |
| |
|
|
|
| |
|
| |
JELD-WEN Holding, Inc.
Consolidated
Statements of Operations (Unaudited)
(In millions) |
| | | | | |
|
| | | Twelve Months Ended | | | |
| | | December 31,
2017 |
|
| December 31,
2016 | | | % Variance |
|
Net revenues
| | |
$
|
3,763.9
| | | |
$
|
3,666.8
| | | |
2.6
|
%
|
|
Cost of sales
| | |
|
2,915.7
|
| | |
|
2,892.2
|
| | |
0.8
|
%
|
|
Gross margin
| | | |
848.2
| | | | |
774.6
| | | |
9.5
|
%
|
|
Selling, general and administrative
| | | |
585.1
| | | | |
565.6
| | | |
3.4
|
%
|
|
Impairment and restructuring charges
| | |
|
13.1
|
| | |
|
13.8
|
| | |
(5.7
|
)%
|
|
Operating income
| | | |
250.1
| | | | |
195.1
| | | |
28.2
|
%
|
|
Interest expense, net
| | | |
79.0
| | | | |
77.6
| | | |
1.9
|
%
|
|
Loss on debt extinguishment
| | | |
23.3
| | | | |
—
| | | |
100.0
|
%
|
|
Other expense (income)
| | |
|
2.0
|
| | |
|
(12.8
|
)
| | |
NM
|
|
|
Income before taxes, equity earnings and discontinued operations
| | | |
145.8
| | | | |
130.3
| | | |
11.8
|
%
|
|
Income tax expense (benefit)
| | |
|
138.6
|
| | |
|
(246.4
|
)
| | |
NM
|
|
|
Income from continuing operations, net of tax
| | | |
7.2
| | | | |
376.7
| | | |
(98.1
|
)%
|
|
Equity earnings of non-consolidated entities
| | | |
3.6
| | | | |
3.8
| | | |
(4.0
|
)%
|
|
Loss from discontinued operations, net of tax
| | |
|
—
|
| | |
|
(3.3
|
)
| | |
NM
|
|
|
Net income
| | |
$
|
10.8
|
| | |
$
|
377.2
|
| | |
(97.1
|
)%
|
| Other financial data: | | | | | | | | | |
|
Adjusted EBITDA(1) | | |
$
|
437.6
| | | |
$
|
393.7
| | | |
11.2
|
%
|
|
Adjusted EBITDA Margin
| | | |
11.6
|
%
| | | |
10.7
|
%
| | | |
(1) |
| Adjusted EBITDA is a financial measure that is not calculated
in accordance with GAAP. For a discussion of our presentation of
Adjusted EBITDA, see above under the heading“Non-GAAP
Financial Information”. |
| |
|
|
|
| |
|
| |
JELD-WEN Holding, Inc.
Selected Financial
Data (Unaudited)
(In millions) |
| | | | | |
|
| | | December 31,
2017 | | | December 31,
2016 |
| Consolidated balance sheet data:
| | | | | | |
|
Cash, cash equivalents
| | |
$
|
220.2
| | | |
$
|
102.7
| |
|
Accounts receivable, net
| | |
453.3
| | | |
407.2
| |
|
Inventories
| | |
405.4
| | | |
334.6
| |
|
Total current assets
| | |
1,145.2
| | | |
877.5
| |
|
Total assets
| | |
2,862.9
| | | |
2,536.0
| |
|
Accounts payable
| | |
259.9
| | | |
188.9
| |
|
Total current liabilities
| | |
577.5
| | | |
513.2
| |
|
Total debt
| | |
1,273.7
| | | |
1,620.0
| |
|
Redeemable convertible preferred stock
| | |
—
| | | |
151.0
| |
|
Total shareholders’ equity
| | |
792.0
| | | |
61.6
| |
| | | | | |
|
| | | Twelve Months Ended |
| Statement of cash flows data: | | | December 31,
2017 | | | December 31,
2016 |
|
Net cash flow provided by (used in):
| | | | | | |
|
Operating activities
| | |
$
|
265.8
| | | |
$
|
201.7
| |
|
Investing activities
| | |
(189.8
|
)
| | |
(156.8
|
)
|
|
Financing activities
| | |
64.1
| | | |
(52.0
|
)
|
| | | | | | | |
|
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JELD-WEN Holding, Inc.
Reconciliation of
Non-GAAP Financial Measures (Unaudited)
(In millions) |
| | | | | |
|
| | | Three Months Ended | | | Twelve Months Ended |
| | | December 31,
2017 |
|
| December 31,
2016 | | | December 31,
2017 |
|
| December 31,
2016 |
|
Net (loss) income
| | |
$
|
(93.7
|
)
| | |
$
|
258.2
| | | |
$
|
10.8
| | | |
$
|
377.2
| |
|
Loss from discontinued operations, net of tax
| | |
—
| | | |
0.5
| | | |
—
| | | |
3.3
| |
|
Equity earnings of non-consolidated entities
| | |
(1.0
|
)
| | |
(1.3
|
)
| | |
(3.6
|
)
| | |
(3.8
|
)
|
|
Income tax expense (benefit)
| | |
105.6
| | | |
(246.3
|
)
| | |
138.6
| | | |
(246.4
|
)
|
|
Depreciation and intangible amortization
| | |
30.7
| | | |
30.5
| | | |
111.3
| | | |
108.0
| |
|
Interest expense, net(1) | | |
17.4
| | | |
23.9
| | | |
79.0
| | | |
77.6
| |
|
Impairment and restructuring charges(2) | | |
9.0
| | | |
6.2
| | | |
13.1
| | | |
18.4
| |
|
Gain on sale of property and equipment
| | |
(0.1
|
)
| | |
—
| | | |
(0.3
|
)
| | |
(3.3
|
)
|
|
Stock-based compensation expense
| | |
3.9
| | | |
6.7
| | | |
19.8
| | | |
22.5
| |
|
Non-cash foreign exchange transaction/translation (income) loss
| | |
(7.5
|
)
| | |
(1.4
|
)
| | |
(2.2
|
)
| | |
5.7
| |
|
Other non-cash items(3) | | |
—
| | | |
(0.2
|
)
| | |
0.5
| | | |
2.8
| |
|
Other items(4) | | |
15.4
| | | |
24.1
| | | |
47.0
| | | |
30.6
| |
|
Costs relating to debt restructuring and refinancing
| | |
23.4
|
| | |
1.1
|
| | |
23.7
|
| | |
1.1
|
|
|
Adjusted EBITDA(5) | | |
$
|
103.1
|
| | |
$
|
101.8
|
| | |
$
|
437.6
|
| | |
$
|
393.7
|
|
| | | | | | | | | | | | | | | | | | | |
|
| (1) |
| For the twelve months ended December 31, 2017, interest expense
includes the write-off of $6.1 million of original issue discount
and deferred financing fees related to the repayment of debt. |
| |
|
| (2) | | Impairment and restructuring charges consist of (i) impairment
and restructuring charges that are included in our consolidated
statements of operations plus (ii) additional charges of (1) $1.4
million for the three months ended December 31, 2016 and (2) $4.5
million for the twelve months ended December 31, 2016. These
additional charges are primarily comprised of non-cash changes in
inventory valuation reserves, such as excess and obsolete reserves.
For further explanation of impairment and restructuring charges that
are included in our consolidated statements of operations, see Note
24 - Impairment and Restructuring Charges of Continuing Operations
in our audited financial statements for the years ended December 31,
2017, and 2016. |
| |
|
| (3) | | Other non-cash items include among other things, (i) charges of
$0.4 million for each of the years ended December 31, 2017 and 2016
relating to (1) the fair value adjustment for inventory acquired as
part of the acquisitions referred to in “Management’s Discussion and
Analysis of Financial Condition and Results of
Operations-Acquisitions” and (2) the impact of a change in how we
capitalize overhead expenses in our valuation of inventory. In
addition, other non-cash items include charges of $2.2 million for
the out-of-period European warranty liability adjustment for the
year ended December 31, 2016. |
| |
|
| (4) | | Other items not core to business activity include: (i) in the
three months ended December 31, 2017, (1) $9.3 million in legal
costs, (2) $2.1 million in acquisition costs, (3) $1.5 million in
realized loss on hedges, (4) $0.9 million in secondary offering
costs and (5) $0.6 million in taxes related to equity-based
compensation; (ii) in the three months ended December 31, 2016,
$20.7 million paid to holders of vested options and restricted
shares in connection with the November 2016 dividend; (iii) in the
twelve months ended December 31, 2017, (1) $34.2 million in legal
costs, (2) $4.2 million in realized loss on hedges, (3) $3.5 million
in acquisition costs, (4) $2.2 million in secondary offering costs,
(5) $0.8 million in tax consulting fees, (6) $0.7 million in legal
entity consolidation costs, (7) $0.6 million in taxes related to
equity-based compensation (8) $0.6 million in facility ramp down
costs and (9) $(2.2) million gain on the settlement of a contract
escrow; (iv) in the twelve months ended December 31, 2016, (1) $20.7
million paid to holders of vested options and restricted shares in
connection with the November 2016 dividend, (2) $3.7 million in
professional fees related to the IPO of our common stock, (3) $1.6
million of acquisition costs, (4) $0.6 million in legal costs
associated with disposition of non-core properties, (5) $0.5 million
of dividend related costs, (6) $0.5 million of costs related to the
recruitment of executive management employees, (7) $0.5 million in
legal costs, and (8) $0.3 million in Dooria plant closure costs. |
| |
|
| (5) | | Adjusted EBITDA is a financial measure that is not calculated
in accordance with GAAP. For a discussion of our presentation of
Adjusted EBITDA, see above under the heading “Non-GAAP Financial
Information”. |
| |
|
|
|
| Three Months
Ended |
|
| Twelve Months
Ended |
(amounts in millions, except share and
per share data) | | | December 31,
2017 |
|
| December 31,
2017 |
|
Net (loss) income attributable to common shareholders
| | |
$
|
(93.7
|
)
| | |
$
|
0.3
| |
|
Undeclared preferred stock dividends related to pre-IPO share
capitalization
| | |
—
| | | |
10.5
| |
|
Legal and professional fees
| | |
6.7
| | | |
24.4
| |
|
Non-cash foreign exchange transactions/translation (income) loss
| | |
(5.4
|
)
| | |
(1.6
|
)
|
|
Impairment and restructuring charges
| | |
6.5
| | | |
9.4
| |
|
Write-off of OID and debt issuance costs
| | |
—
| | | |
4.4
| |
|
Loss on extinguishment of debt
| | |
16.7
| | | |
16.7
| |
|
Impact of U.S. Tax Cuts and Jobs Act
| | |
97.7
|
|
|
|
97.7
|
|
|
Adjusted net income
| | |
$
|
28.5
|
|
|
|
$
|
161.8
|
|
| | | | | |
|
|
Diluted net (loss) income per share
| | |
$
|
(0.89
|
)
| | |
$
|
—
| |
|
Undeclared preferred stock dividends related to pre-IPO share
capitalization
| | |
—
| | | |
0.10
| |
|
Impact of additional dilutive shares on the reported dilutive loss
per share
| | |
0.03
| | | |
(0.01
|
)
|
|
Legal and professional fees
| | |
0.06
| | | |
0.22
| |
|
Non-cash foreign exchange transactions/translation (income) loss
| | |
(0.05
|
)
| | |
(0.01
|
)
|
|
Impairment and restructuring charges
| | |
0.06
| | | |
0.09
| |
|
Write-off of OID and debt issuance costs
| | |
—
| | | |
0.04
| |
|
Loss on extinguishment of debt
| | |
0.15
| | | |
0.15
| |
|
Impact of U.S. Tax Cuts and Jobs Act
| | |
0.90
|
|
|
|
0.90
|
|
|
Adjusted net income per share
| | |
$
|
0.26
|
|
|
|
$
|
1.48
|
|
| | | | | |
|
Diluted shares used in adjusted EPS calculation represent the
fully dilutive shares for the
three months ended December 31,
2017.
| | |
109,209,218
| | | |
109,209,218
| |
NOTE:Where applicable, adjustments to net income (loss) and net
income (loss) per share are tax-effected at 28.0% for the three and
twelve months ended December 31, 2017.
|
|
| Twelve Months Ended |
| | | December 31,
2017 |
|
| December 31,
2016 |
|
Net cash provided by operating activities
| | |
$
|
265.8
| | | |
$
|
201.7
|
|
Less capital expenditures
| | |
63.0
|
| | |
79.5
|
|
Free cash flow
| | |
$
|
202.7
|
| | |
$
|
122.2
|
| | | | | | | | |
|
|
|
| |
|
| |
JELD-WEN Holding, Inc.
Segment Results
(Unaudited)
(In millions) |
| | | | | |
|
| | | Three Months Ended | | | |
| | | December 31,
2017 |
|
| December 31,
2016 | | | |
|
Net revenues from external customers
| | | | | | | | | % Variance |
| North America | | |
$
|
550.3
| | | |
$
|
569.3
| | | |
(3.3
|
)%
|
| Europe | | |
276.4
| | | |
256.5
| | | |
7.8
|
%
|
| Australasia | | |
149.2
|
| | |
147.4
|
| | |
1.3
|
%
|
|
Total Consolidated
| | |
$
|
976.0
|
| | |
$
|
973.2
|
| | |
0.3
|
%
|
|
Adjusted EBITDA(1) | | | | | | | | | |
| North America | | |
$
|
61.1
| | | |
$
|
65.6
| | | |
(6.9
|
)%
|
| Europe | | |
35.3
| | | |
32.2
| | | |
9.7
|
%
|
| Australasia | | |
21.2
| | | |
18.5
| | | |
14.6
|
%
|
|
Corporate and unallocated costs
| | |
(14.5
|
)
| | |
(14.5
|
)
| | |
(0.4
|
)%
|
|
Total Consolidated
| | |
$
|
103.1
|
| | |
$
|
101.8
|
| | |
1.3
|
%
|
| (1) |
| Adjusted EBITDA is a financial measure that is not calculated
in accordance with GAAP. For a discussion of our presentation of
Adjusted EBITDA, see above under the heading “Non-GAAP Financial
Information”. |
| |
|
|
|
| |
|
| |
JELD-WEN Holding, Inc.
Segment Results
(Unaudited)
(In millions) |
| | | | | |
|
| | | Twelve Months Ended | | | |
| | | December 31,
2017 |
|
| December 31,
2016 | | | |
|
Net revenues from external customers
| | | | | | | | | % Variance |
| North America | | |
$
|
2,158.1
| | | |
$
|
2,149.2
| | | |
0.4
|
%
|
| Europe | | |
1,042.8
| | | |
1,008.7
| | | |
3.4
|
%
|
| Australasia | | |
563.1
|
| | |
508.9
|
| | |
10.6
|
%
|
|
Total Consolidated
| | |
$
|
3,763.9
|
| | |
$
|
3,666.8
|
| | |
2.6
|
%
|
|
Adjusted EBITDA(1) | | | | | | | | | |
| North America | | |
$
|
273.6
| | | |
$
|
251.8
| | | |
8.6
|
%
|
| Europe | | |
132.9
| | | |
122.6
| | | |
8.4
|
%
|
| Australasia | | |
74.7
| | | |
59.5
| | | |
25.5
|
%
|
|
Corporate and unallocated costs
| | |
(43.6
|
)
| | |
(40.2
|
)
| | |
8.4
|
%
|
|
Total Consolidated
| | |
$
|
437.6
|
| | |
$
|
393.7
|
| | |
11.2
|
%
|
| (1) |
| Adjusted EBITDA is a financial measure that is not calculated
in accordance with GAAP. For a discussion of our presentation of
Adjusted EBITDA, see above under the heading “Non-GAAP Financial
Information”. |
View source version on businesswire.com: http://www.businesswire.com/news/home/20180221005311/en/
Investor Relations Contact:
JELD-WEN Holding, Inc.
John
Linker, 704-378-7007
SVP, Corporate Development and Investor
Relations
investors@jeldwen.com
Source: JELD-WEN Holding, Inc.