JELD-WEN Announces Second Quarter 2018 Results and Updates 2018 Outlook
CHARLOTTE, N.C.--(BUSINESS WIRE)--
JELD-WEN Holding, Inc. (NYSE:JELD) today announced results for the three
and six months ended June 30, 2018 and updated its 2018 outlook.
Second Quarter Summary:
-
Net revenues for the second quarter increased 23.6%, driven primarily
by a 19% increase from acquisitions and 3% from core growth
-
Net income for the second quarter was $35.5 million, a decrease of
$11.3 million
-
Diluted earnings per share ("EPS") for the second quarter was $0.33, a
decrease of $0.10 and adjusted EPS amounted to $0.45, a decrease of
$0.06
-
Adjusted EBITDA for the second quarter was $135.0 million, an increase
of $9.6 million
-
Cash used for share repurchases in the second quarter totaled $47.0
million for 1,643,917 shares
-
Updated outlook for full year 2018 includes net revenue growth of 16%
to 18% and adjusted EBITDA of $500 million to $520 million
“In the second quarter JELD-WEN grew revenues by 23.6% through
contributions from recent acquisitions and core growth, while our
operating results were challenged by a difficult inflationary
environment. As we move into the second half of 2018, we will gain
momentum as we execute on our near-term priorities such as improving
service levels for our customers, driving cost out of our business, and
remaining disciplined with both pricing and share,” said Gary S. Michel,
president and chief executive officer. “Based on my initial assessment
of JELD-WEN since assuming the CEO role in June, I am confident that we
have the right strategy, operating model, and talent already in place. I
see substantial opportunities in all three segments for core growth,
margin improvement, and bolt-on M&A as we create shareholder value and
continue to make progress towards achieving our long-term financial and
strategic targets."
Second Quarter 2018 Results
Net revenues for the three months ended June 30, 2018 increased $223.7
million, or 23.6%, to $1.172 billion, compared to $948.8 million for the
same period last year. The increase in net revenues was driven by a 19%
contribution from recent acquisitions, 3% from core revenue growth, and
2% from the favorable impact of foreign exchange. Core revenue growth,
which excludes the impact of foreign exchange and acquisitions completed
in the last twelve months, increased 2% from favorable pricing and 1%
from improved in volume/mix.
Net income was $35.5 million, compared to net income of $46.8 million in
the same quarter last year, a decrease of $11.3 million. The decrease in
net income was primarily due to an increase in SG&A as well as a higher
tax rate compared to the same quarter last year. Adjusted net income for
the second quarter was $48.5 million, compared to $55.3 million in the
same quarter last year, a decrease of $6.8 million.
EPS for the second quarter was $0.33 compared to $0.43 for the same
quarter last year, a decrease of $0.10. Adjusted EPS was $0.45 compared
to $0.51 for the same quarter last year, a decrease of $0.06.
Adjusted EBITDA increased $9.6 million, or 7.7%, to $135.0 million,
compared to $125.3 million in the same quarter last year. Adjusted
EBITDA margins decreased 170 basis points in the quarter to 11.5%, from
13.2% in the same quarter a year ago. The decrease in adjusted EBITDA
margins was primarily due to a decrease in core margins of approximately
120 basis points as well as the impact of recent acquisitions. Core
adjusted EBITDA margins were unfavorably impacted by inflation in
materials and freight costs as well as operational investments to
support core growth.
On a segment basis for the second quarter of 2018, compared to the same
period last year:
- North America - Net revenues increased $121.5 million, or
22.0%, to $673.2 million, due to a 19% contribution from recent
acquisitions and 3% core revenue growth. Mid-single digit core revenue
growth in the doors business was offset by lower volumes in the
windows and Canada businesses. Adjusted EBITDA decreased $0.2 million,
or 0.2%, to $79.6 million. Adjusted EBITDA margin declined by 270
basis points to 11.8%, primarily due to a decrease in core adjusted
EBITDA margins of 180 basis points as well as the impact of recent
acquisitions. Core margins declined primarily due to inflation in
materials and freight costs as well as operational investments to
support core growth.
- Europe - Net revenues increased $59.8 million, or 23.1%, to
$318.7 million, due to a 15% contribution from recent acquisitions, 6%
from the favorable impact of foreign exchange, and core growth of 2%.
Adjusted EBITDA increased $0.9 million, or 2.3%, to $37.9 million.
Adjusted EBITDA margins declined 240 basis points to 11.9%, primarily
due to a decrease in core adjusted EBITDA margins of 160 basis points
and the impact of recent acquisitions. Core margins declined primarily
due to inflation in materials and freight costs.
- Australasia - Net revenues increased $42.4 million, or 30.7%,
to $180.6 million, primarily due to the contribution from recent
acquisitions of 27%, core growth of 3%, and 1% from the favorable
impact of foreign exchange. Adjusted EBITDA increased $6.9 million, or
39.6%, to $24.2 million. Adjusted EBITDA margin expanded by 90 basis
points to 13.4%, primarily due to an increase in core adjusted EBITDA
margins of 140 basis points, partially offset by the impact of recent
acquisitions.
Year-to-Date 2018 Results
Net revenues for the six months ended June 30, 2018 increased $322.0
million, or 17.9%, to $2.119 billion, compared to $1.797 billion for the
same period last year. The increase was primarily driven by a 13%
contribution from recent acquisitions, 3% from the favorable impact of
foreign exchange, and core growth of 1%. Net income increased $22.5
million, or 42.3%, to $75.7 million, compared to $53.2 million in the
same period last year. The increase in net income was primarily due to a
non-cash gain and related tax benefits on the revaluation of a minority
investment as well as reduced interest expense. Adjusted EBITDA
increased $16.5 million, or 8.0%, to $222.8 million, compared to $206.3
million in the same period last year. Adjusted EBITDA margins decreased
100 basis points to 10.5%, from 11.5% in the same period a year ago. The
decrease in adjusted EBITDA margins was primarily due to the impact of
recent acquisitions and a decrease in core adjusted EBITDA margins of
approximately 50 basis points.
Cash Flow and Balance Sheet
Cash flows used in operations increased $74.7 million in the first six
months of 2018 to a use of $8.3 million, from $66.4 million of cash
provided in the same period last year. Free cash flow decreased $111.8
million in the first six months of 2018 to a use of $65.3 million, from
$46.6 million of cash provided in the same period last year. The
decrease in free cash flow was due to seasonality in working capital
usage, planned increases in seasonal inventory in certain product lines,
and increased capital expenditures.
During the second quarter of 2018, the company repurchased 1,643,917
shares of its common stock for a total $47.0 million, representing an
average price per share of $28.58. At the end of the quarter, $203.0
million was available for additional repurchases under the current
authorization.
Cash and cash equivalents as of June 30, 2018 were $137.6 million,
compared to $220.2 million as of December 31, 2017. Total debt as of
June 30, 2018 was $1.542 billion, compared to $1.274 billion as of
December 31, 2017.
Outlook for 2018
The company’s outlook for adjusted EBITDA for the third quarter of 2018
is $143 million to $153 million, compared to $128.2 million for the
third quarter of 2017. The third quarter outlook assumes growth from the
contribution of recent acquisitions and accelerating margin improvement
in the core business.
For full year 2018 compared to full year 2017, the company now expects
net revenue growth of 16% to 18%, compared to the previous outlook of
17% to 19%. The assumption for core revenue growth remains unchanged at
approximately 3%. The decrease in the revenue growth outlook is due to
the unfavorable impact of updated assumptions for foreign exchange rates.
The company's outlook for full year 2018 adjusted EBITDA is now $500
million to $520 million, compared to the previous outlook of $505
million to $535 million and 2017 adjusted EBITDA of $437.6 million. The
decrease in the outlook for adjusted EBITDA is due to the unfavorable
impact of updated assumptions for foreign exchange rates as well as the
expected unfavorable impact of recently announced tariffs. The midpoint
of the updated outlook assumes core adjusted EBITDA margin improvement
of approximately 70 basis points. This improvement in core adjusted
EBITDA margins is expected to be offset by the impact of recent
acquisitions and the impact of foreign exchange.
Full year 2018 capital expenditures are expected to be in the range of
$100 million to $120 million, compared to 2017 capital expenditures of
$63.0 million.
Free cash flow for full year 2018 is expected to exceed adjusted net
income.
Conference Call Information
JELD-WEN management will host a conference call today, August 7, 2018,
at 8 a.m. EDT, 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
13681036. The replay will be available until 11:59 p.m. EDT on August
22, 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 manufacturing facilities in 20 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
the third quarter and full year 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 the third quarter
and full year 2018 include the achievement of anticipated improvements
in end markets, competitive position, and product portfolio; stable
macroeconomic factors; continued inflation in materials and freight
costs; no further changes in foreign currency exchange and tax rates;
successful integration of recent acquisitions; 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.
Adjustments to Previously Reported Financial Information
The statement of operations for the three and six months ended July 1,
2017 has been revised to reflect the correction of certain errors and
other accumulated misstatements as described in our Form 10-K - Note 36
- Revision of Prior Period Financial Statements. The errors did
not impact the subtotals for cash flows from operating activities,
investing activities or financing activities for any of the periods
affected. In addition, as a result of our retrospective application of
ASU 2017-07, we reclassified certain amounts in our statement of
operations for the three months ended July 1, 2017. To conform with
current period presentation of revenues, we reclassified certain amounts
in our statement of operations for the three and six months ended
July 1, 2017. The reclassifications were not material to our previously
issued financial statements. The cumulative impact of the adjustments
for the three months ended July 1, 2017 was an increase in revenues of
$0.1 million, increase in cost of sales of $4.4 million, a decrease in
selling, general and administrative expense of $7.6 million, and an
increase in other expense of $3.1 million. The cumulative impact of the
adjustments for the six months ended July 1, 2017 was an increase in
revenues of $0.2 million, increase in cost of sales of $8.8 million, a
decrease in selling, general and administrative expense of $15.0
million, and an increase in other expense of $6.2 million. The
corrections had no impact on net income or adjusted EBITDA. Please refer
to our Form 10-Q for the three and six month period ended June 30, 2018
for additional details.
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, iii) one-time non-cash gains, iv) 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. Where
applicable, 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 |
| |
| | June 30,
2018 |
| July 1,
2017 | | % Variance |
|
Net revenues
| |
$
|
1,172.5
| | |
$
|
948.8
| | |
23.6%
|
|
Cost of sales
| |
923.7
|
| |
717.5
|
| |
28.7%
|
|
Gross margin
| |
248.8
| | |
231.3
| | |
7.6%
|
|
Selling, general and administrative
| |
175.2
| | |
143.9
| | |
21.7%
|
|
Impairment and restructuring charges
| |
2.5
|
| |
0.6
|
| |
353.6%
|
|
Operating income
| |
71.1
| | |
86.8
| | |
(18.1)%
|
|
Interest expense, net
| |
17.8
| | |
17.5
| | |
1.6%
|
|
Other (income) expense
| |
(5.4
|
)
| |
5.9
|
| |
(191.6)%
|
|
Income before taxes, equity earnings and discontinued operations
| |
58.6
| | |
63.4
| | |
(7.5)%
|
|
Income tax expense
| |
23.2
|
| |
17.7
|
| |
31.0%
|
|
Income from continuing operations, net of tax
| |
35.5
| | |
45.7
| | |
(22.4)%
|
|
Equity earnings of non-consolidated entities
| |
—
|
| |
1.1
|
| |
(100.0)%
|
|
Net income
| |
$
|
35.5
|
| |
$
|
46.8
|
| |
(24.2)%
|
| Other financial data: | | | | | | |
|
Adjusted EBITDA(1) | |
$
|
135.0
| | |
$
|
125.3
| | |
7.7%
|
|
Adjusted EBITDA Margin(1) | |
11.5
|
%
| |
13.2
|
%
| | |
| | | | | | | |
|
|
(1)
|
|
|
Adjusted EBITDA is a financial measure that is not calculated in
accordance with GAAP. For a discussion of our presentation of
Adjusted EBITDA and Adjusted EBITDA Margin, see above under the
heading “Non-GAAP Financial Information”.
|
| | |
|
|
|
| JELD-WEN Holding, Inc. |
|
|
| Consolidated Statements of Operations (Unaudited) |
| (In millions) |
|
|
|
| Six Months Ended |
| |
| | June 30,
2018 |
| July 1,
2017 | | % Variance |
|
Net revenues
| |
$
|
2,118.7
| | |
$
|
1,796.6
| | |
17.9%
|
|
Cost of sales
| |
1,664.0
|
| |
1,383.7
|
| |
20.3%
|
|
Gross margin
| |
454.7
| | |
413.0
| | |
10.1%
|
|
Selling, general and administrative
| |
339.9
| | |
283.6
| | |
19.9%
|
|
Impairment and restructuring charges
| |
5.5
|
| |
1.8
|
| |
212.5%
|
|
Operating income
| |
109.3
| | |
127.6
| | |
(14.4)%
|
|
Interest expense, net
| |
33.5
| | |
44.4
| | |
(24.6)%
|
|
Gain on previously held shares of an equity investment
| |
(20.8
|
)
| |
—
| | |
100.0%
|
|
Other expense
| |
2.4
|
| |
11.6
|
| |
NM
|
|
Income before taxes, equity earnings and discontinued operations
| |
94.1
| | |
71.6
| | |
31.5%
|
|
Income tax expense
| |
19.2
|
| |
20.0
|
| |
NM
|
|
Income from continuing operations, net of tax
| |
75.0
| | |
51.7
| | |
45.2%
|
|
Equity earnings of non-consolidated entities
| |
0.7
| | |
1.6
| | |
(52.5)%
|
|
Net income
| |
$
|
75.7
|
| |
$
|
53.2
|
| |
42.3%
|
| Other financial data: | | | | | | |
|
Adjusted EBITDA(1) | |
$
|
222.8
| | |
$
|
206.3
| | |
8.0%
|
|
Adjusted EBITDA Margin(1) | |
10.5
|
%
| |
11.5
|
%
| | |
| | | | | | | |
|
|
(1)
|
|
|
Adjusted EBITDA is a financial measure that is not calculated in
accordance with GAAP. For a discussion of our presentation of
Adjusted EBITDA and Adjusted EBITDA Margin, see above under the
heading “Non-GAAP Financial Information”.
|
| | |
|
|
|
| JELD-WEN Holding, Inc. |
|
|
| Selected Financial Data (Unaudited) |
| (In millions) |
|
|
|
| June 30,
2018 |
| December 31,
2017 |
| Consolidated balance sheet data:
| | | | |
|
Cash, cash equivalents
| |
$
|
137.6
| | |
$
|
220.2
| |
|
Accounts receivable, net
| |
598.2
| | |
453.3
| |
|
Inventories
| |
532.7
| | |
405.4
| |
|
Total current assets
| |
1,322.6
| | |
1,145.2
| |
|
Total assets
| |
3,166.8
| | |
2,862.9
| |
|
Accounts payable
| |
296.7
| | |
259.9
| |
|
Total current liabilities
| |
650.6
| | |
577.5
| |
|
Total debt
| |
1,542.1
| | |
1,273.7
| |
|
Total shareholders’ equity
| |
790.8
| | |
792.0
| |
| | | |
|
| | Six Months Ended |
| Statement of cash flows data: | | June 30,
2018 | | July 1,
2017 |
|
Net cash flow (used in) provided by:
| | | | |
|
Operating activities
| |
$
|
(8.3
|
)
| |
$
|
66.4
| |
|
Investing activities
| |
(223.5
|
)
| |
(38.8
|
)
|
|
Financing activities
| |
116.2
| | |
90.6
| |
| | | | | |
|
|
|
| JELD-WEN Holding, Inc. |
|
|
| Reconciliation of Non-GAAP Financial Measures (Unaudited) |
| (In millions) |
|
|
|
| Three Months Ended |
| Six Months Ended |
| | June 30,
2018 |
| July 1,
2017 | | June 30,
2018 |
| July 1,
2017 |
|
Net income
| |
$
|
35.5
| | |
$
|
46.8
| | |
$
|
75.7
| | |
$
|
53.2
| |
|
Equity earnings of non-consolidated entities
| |
—
| | |
(1.1
|
)
| |
(0.7
|
)
| |
(1.6
|
)
|
|
Income tax expense
| |
23.2
| | |
17.7
| | |
19.2
| | |
20.0
| |
|
Depreciation and amortization
| |
30.6
| | |
26.0
| | |
59.0
| | |
53.1
| |
|
Interest expense, net(1) | |
17.8
| | |
17.5
| | |
33.5
| | |
44.4
| |
|
Impairment and restructuring charges
| |
2.5
| | |
0.6
| | |
5.5
| | |
1.8
| |
|
Gain on previously held shares of an equity investment
| |
—
| | |
—
| | |
(20.8
|
)
| |
—
| |
|
Loss (gain) on sale of property and equipment
| |
0.1
| | |
—
| | |
—
| | |
(0.1
|
)
|
|
Stock-based compensation expense
| |
6.3
| | |
5.3
| | |
8.2
| | |
10.8
| |
|
Non-cash foreign exchange transaction/translation (income) loss
| |
(5.8
|
)
| |
2.8
| | |
(1.9
|
)
| |
7.1
| |
|
Other non-cash items (2) | |
12.2
| | |
—
| | |
12.2
| | |
—
| |
|
Other items(3) | |
12.5
| | |
9.8
| | |
32.8
| | |
17.3
| |
|
Costs relating to debt restructuring and refinancing
| |
0.1
|
| |
—
|
| |
0.1
|
| |
0.3
|
|
|
Adjusted EBITDA(4) | |
$
|
135.0
|
| |
$
|
125.3
|
| |
$
|
222.8
|
| |
$
|
206.3
|
|
| | | | | | | | | | | | | | | |
|
|
(1)
|
|
|
For the six months ended July 1, 2017, interest expense includes the
write-off of $6.1 of original issue discount and deferred financing
fees related to the repayment of debt.
|
| | |
|
|
(2)
| | |
Other non-cash items include charges of $12.2 for inventory
adjustments related to the ABS acquisition inventory fair valuation
in the three and six months ended June 30, 2018.
|
| | |
|
|
(3)
| | |
Other items not core to business activity include: (i) in the three
months ended June 30, 2018, (1) $10.7 in legal costs, and (2) $1.6
in acquisition costs; (ii) in the three months ended July 1, 2017,
(1) $7.8 in legal costs, (2) $1.0 in secondary offering costs, and
(3) $0.7 in legal entity consolidation costs; (iii) in the six
months ended June 30, 2018 (1) $24.3 in legal costs, (2) $4.2 in
acquisition costs, and (3) $2.4 in costs related to the exit of the
former CEO ; and (iv) in the six months ended July 1, 2017 (1) $15.8
in legal costs, (2) $1.0 in secondary offering costs, (3) $0.8 in
legal entity consolidation costs, (4) $0.6 in facility shut down
costs, (5) $0.3 in IPO costs, partially offset by (6) $(2.2) gain on
settlement of contract escrow.
|
| | |
|
|
(4)
| | |
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 | | Six Months Ended |
(amounts in millions, except share and
per share data) | | June 30,
2018 |
| July 1,
2017 | | June 30,
2018 |
| July 1,
2017 |
|
Net income attributable to common shareholders
| |
$
|
35.5
| | |
$
|
46.8
| | |
$
|
75.8
| | |
$
|
42.7
|
|
Legal and professional fees
| |
7.1
| | |
6.2
| | |
16.1
| | |
10.5
|
|
Non-cash foreign exchange transactions/translation (income) loss
| |
(3.9
|
)
| |
1.9
| | |
(1.3
|
)
| |
5.0
|
|
Impairment and restructuring charges
| |
1.7
| | |
0.4
| | |
3.6
| | |
1.2
|
|
Write-off of OID and debt issuance costs
| |
—
| | |
—
| | |
—
| | |
4.3
|
|
Gain on previously held shares of an equity investment
| |
—
| | |
—
| | |
(13.8
|
)
| |
—
|
|
Inventory valuation adjustments related to acquisitions
| |
8.1
| | |
—
| | |
8.1
| | |
—
|
|
Deferred tax liability write-off associated with equity investment
| |
—
|
| |
—
|
| |
(7.1
|
)
| |
—
|
|
Adjusted net income
| |
$
|
48.5
|
| |
$
|
55.3
|
| |
$
|
81.5
|
| |
$
|
63.7
|
| | | | | | | |
|
|
Diluted net income per share
| |
$
|
0.33
| | |
$
|
0.43
| | |
$
|
0.70
| | |
$
|
0.46
|
|
Legal and professional fees
| |
0.07
| | |
0.06
| | |
0.15
| | |
0.11
|
|
Non-cash foreign exchange transactions/translation (income) loss
| |
(0.04
|
)
| |
0.02
| | |
(0.01
|
)
| |
0.05
|
|
Impairment and restructuring charges
| |
0.02
| | |
—
| | |
0.03
| | |
0.01
|
|
Write-off of OID and debt issuance costs
| |
—
| | |
—
| | |
—
| | |
0.05
|
|
Gain on previously held shares of an equity investment
| |
—
| | |
—
| | |
(0.13
|
)
| |
—
|
|
Inventory valuation adjustments related to acquisitions
| |
0.07
| | |
—
| | |
0.07
| | |
—
|
|
Deferred tax liability write-off associated with equity investment
| |
—
|
| |
—
|
| |
(0.06
|
)
| |
—
|
|
Adjusted net income per share
| |
$
|
0.45
|
| |
$
|
0.51
|
| |
$
|
0.75
|
| |
$
|
0.68
|
| | | | | | | |
|
|
Diluted shares used in adjusted EPS calculation represent the fully
dilutive shares
| |
107,653,009
| | |
109,086,129
| | |
108,264,549
| | |
93,733,650
|
|
NOTE: Where applicable, adjustments to net income and net income per
share are tax-effected at 33.64% and for the three and six months
ended June 30, 2018 and 29.76% for the three and six months July 1,
2017.
|
|
|
|
| |
| | Six Months Ended |
| | June 30,
2018 |
| July 1,
2017 |
|
Net cash (used in) provided by operating activities
| |
$
|
(8.3
|
)
| |
$
|
66.4
|
|
Less capital expenditures
| |
57.0
|
| |
19.8
|
|
Free cash flow
| |
$
|
(65.3
|
)
| |
$
|
46.6
|
| | | | | | |
|
|
|
| JELD-WEN Holding, Inc. |
|
|
| Segment Results (Unaudited) |
| (In millions) |
|
|
|
| Three Months Ended |
| |
| | June 30,
2018 |
| July 1,
2017 | | |
|
Net revenues from external customers
| | | | | | % Variance |
| North America | |
$
|
673.2
| | |
$
|
551.7
| | |
22.0%
|
| Europe | |
318.7
| | |
258.9
| | |
23.1%
|
| Australasia | |
180.6
|
| |
138.2
|
| |
30.7%
|
|
Total Consolidated
| |
$
|
1,172.5
|
| |
$
|
948.8
|
| |
23.6%
|
|
Adjusted EBITDA(1) | | | | | | |
| North America | |
$
|
79.6
| | |
$
|
79.8
| | |
(0.2)%
|
| Europe | |
37.9
| | |
37.1
| | |
2.3%
|
| Australasia | |
24.2
| | |
17.3
| | |
39.6%
|
|
Corporate and unallocated costs
| |
(6.8
|
)
| |
(8.9
|
)
| |
(23.5)%
|
|
Total Consolidated
| |
$
|
135.0
|
| |
$
|
125.3
|
| |
7.7%
|
| | | | | | | | | |
|
|
(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. |
|
|
| Segment Results (Unaudited) |
| (In millions) |
|
|
|
| Six Months Ended |
| |
| | June 30,
2018 |
| July 1,
2017 | | |
|
Net revenues from external customers
| | | | | | % Variance |
| North America | |
$
|
1,171.2
| | |
$
|
1,035.9
| | |
13.1%
|
| Europe | |
620.4
| | |
501.2
| | |
23.8%
|
| Australasia | |
327.1
|
| |
259.5
|
| |
26.0%
|
|
Total Consolidated
| |
$
|
2,118.7
|
| |
$
|
1,796.6
|
| |
17.9%
|
|
Adjusted EBITDA(1) | | | | | | |
| North America | |
$
|
126.7
| | |
$
|
130.0
| | |
(2.6)%
|
| Europe | |
71.7
| | |
64.3
| | |
11.6%
|
| Australasia | |
40.9
| | |
30.6
| | |
33.9%
|
|
Corporate and unallocated costs
| |
(16.6
|
)
| |
(18.6
|
)
| |
(10.8)%
|
|
Total Consolidated
| |
$
|
222.8
|
| |
$
|
206.3
|
| |
8.0%
|
| | | | | | | | | |
|
|
(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: https://www.businesswire.com/news/home/20180807005149/en/
Investor Relations:
JELD-WEN Holding, Inc.
John Linker,
704-378-7007
SVP, Corporate Development and Investor Relations
investors@jeldwen.com
Source: JELD-WEN Holding, Inc.