JELD-WEN Announces Third Quarter 2018 Results and Affirms 2018 Outlook
CHARLOTTE, N.C.--(BUSINESS WIRE)--
JELD-WEN Holding, Inc. (NYSE:JELD) today announced results for the three
and nine months ended September 29, 2018 and affirmed its 2018 outlook.
Third Quarter Summary:
-
Results were in line with preliminary results announced on October 15,
2018
-
Net revenues for the third quarter increased 14.7% year over year to
$1.137 billion
-
Net revenue growth was driven primarily by a 17% contribution from
acquisitions, partially offset by a 2% foreign exchange headwind,
while core revenue growth was unchanged
-
Net income for the third quarter was $28.9 million, a decrease of
$22.4 million year over year
-
Diluted earnings per share ("EPS") for the third quarter was $0.27, a
decrease of $0.20, and adjusted EPS amounted to $0.40, a decrease of
$0.15, year over year
-
Adjusted EBITDA for the third quarter was $132.9 million, an increase
of $4.7 million year over year
-
Returned $36.6 million to shareholders through share repurchases
-
Outlook for full year 2018 includes net revenue growth of 15% to 17%
and adjusted EBITDA of $455 million to $470 million
“In the third quarter JELD-WEN grew revenues by 14.7% through
contributions from recent acquisitions, while core operating results
were challenged by lower than anticipated volumes and unfavorable mix in
certain business lines," said Gary S. Michel, president and chief
executive officer. "Volumes were unfavorably impacted by the lingering
effects of prior service issues in our U.S. windows and Northern
European businesses, resulting in operational inefficiencies impacting
our profitability. While we have corrected these service issues, the
impact on our volumes is expected to persist in the fourth quarter. As
we look ahead towards 2019, we are confident in our ability to drive
revenue and earnings growth, realize pricing to offset inflation, and
deliver productivity from our business operating system, the JELD-WEN
Excellence Model or JEM."
Third Quarter 2018 Results
Net revenues for the three months ended September 29, 2018 increased
$145.6 million, or 14.7%, to $1.137 billion, compared to $991.3 million
for the same period last year. The increase in net revenues was driven
by a 17% contribution from recent acquisitions, partly offset by a 2%
adverse impact from foreign exchange. Core revenue, which excludes the
impact of foreign exchange and acquisitions completed in the last twelve
months, was unchanged during the quarter. Core revenue included a 2%
benefit from favorable pricing, which was offset by a 2% impact from
unfavorable volume/mix.
Net income was $28.9 million, compared to net income of $51.3 million in
the same quarter last year, a decrease of $22.4 million. The decrease in
net income was primarily due to higher SG&A, which included litigation
contingency expense of $76.5 million, partially offset by discrete tax
benefits of $59.8 million. Adjusted net income for the third quarter was
$43.0 million, compared to $59.8 million in the same quarter last year,
a decrease of $16.9 million.
EPS for the third quarter was $0.27 compared to $0.47 for the same
quarter last year, a decrease of $0.20. Adjusted EPS was $0.40 compared
to $0.55 for the same quarter last year, a decrease of $0.15.
Adjusted EBITDA increased $4.7 million, or 3.7%, to $132.9 million,
compared to $128.2 million in the same quarter last year. Adjusted
EBITDA margins decreased 120 basis points in the quarter to 11.7%, from
12.9% in the prior year. The decrease in adjusted EBITDA margins was
primarily due to a decrease in core margins of 130 basis points. Core
adjusted EBITDA margins were unfavorably impacted by lower volumes and
related operational inefficiencies, as well as unfavorable mix and
inflation in our North America and Europe segments.
On a segment basis for the third quarter of 2018, compared to the same
period last year:
- North America - Net revenues increased $96.3 million, or 16.8%,
to $668.2 million, due primarily to contribution from recent
acquisitions, while core revenues were unchanged. Core revenue benefit
from pricing was 3% in the quarter, representing a sequential
improvement from 2% in the second quarter, and was offset by a 3%
reduction due to volume/mix. The volume headwinds were primarily due
to the lingering demand impact of previous service and lead time
inefficiencies that have since been resolved. Adjusted EBITDA
increased $1.6 million, or 2.0%, to $84.1 million. Adjusted EBITDA
margin declined by 180 basis points to 12.6%, primarily due to a
decrease in core adjusted EBITDA margins of 100 basis points as well
as the impact of recent acquisitions. Core margins declined primarily
due to productivity inefficiencies from lower volumes, as well as
unfavorable channel mix and inflation in materials and freight.
- Europe - Net revenues increased $27.8 million, or 10.5%, to
$292.9 million, due to a 13% contribution from recent acquisitions,
partially offset by 2% from the unfavorable impact of foreign
exchange. Core revenues were unchanged as a 1% benefit from pricing
was offset by a 1% reduction due to volume/mix. Volumes were
unfavorably impacted by the lingering demand impact of previous
service and lead time issues in our Northern European business.
Adjusted EBITDA decreased $5.2 million, or 15.7%, to $28.1 million.
Adjusted EBITDA margins declined 300 basis points to 9.6%, primarily
due to a decrease in core adjusted EBITDA margins of 250 basis points
and the impact of recent acquisitions. Core margins declined primarily
due to productivity inefficiencies from lower volumes, as well as
unfavorable mix and material inflation.
- Australasia - Net revenues increased $21.5 million, or 14.0%,
to $175.9 million, primarily due to the contribution from recent
acquisitions of 22%, partially offset by 7% from the unfavorable
impact of foreign exchange and a 1% decline in core growth. Adjusted
EBITDA increased $3.4 million, or 14.7%, to $26.3 million. Adjusted
EBITDA margin expanded by 10 basis points to 14.9%, primarily due to
an increase in core adjusted EBITDA margins of 50 basis points,
partially offset by the impact of recent acquisitions.
Year-to-Date 2018 Results
Net revenues for the nine months ended September 29, 2018 increased
$467.7 million, or 16.8%, to $3.256 billion, compared to $2.788 billion
for the same period last year. The increase was primarily driven by a
15% contribution from recent acquisitions, favorable foreign exchange
impact of 1%, and core growth of 1%. Net income increased $0.1 million,
or 0.1%, to $104.6 million, compared to $104.5 million in the same
period last year. Adjusted EBITDA increased $21.2 million, or 6.3%, to
$355.7 million, compared to $334.5 million in the same period last year.
Adjusted EBITDA margins decreased 110 basis points to 10.9%, from 12.0%
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 80 basis points.
Cash Flow and Balance Sheet
Cash flows from operations totaled $88.0 million in the first nine
months of the year compared to $174.3 million in the same period last
year. Cash flows from operations improved sequentially by $96.3 million
compared to the second quarter of 2018, modestly below the $108.0
million sequential period improvement from the second quarter to the
third quarter of 2017. Free cash flow decreased $134.1 million year over
year in the first nine months of 2018 to $7.8 million, from $141.9
million during the same period last year. The decrease in free cash flow
was primarily due to increased working capital requirements and
increased capital expenditures.
Through the first nine months of 2018, the company has repurchased
3,080,594 shares of its common stock for a total $83.6 million,
representing an average price per share of 27.14, including 1,436,677
shares repurchased for a total of $36.6 million during the third
quarter, for an average price per share of $25.48. At the end of the
quarter, $166.4 million was available for additional repurchases through
December 2019 under the current authorization.
Cash and cash equivalents as of September 29, 2018 were $151.4 million,
compared to $220.2 million as of December 31, 2017. Total debt as of
September 29, 2018 was $1.532 billion, compared to $1.274 billion as of
December 31, 2017.
Outlook for 2018
The company’s outlook for adjusted EBITDA for the fourth quarter of 2018
is approximately $99 million to $114 million, compared to $103.1 million
in the fourth quarter of 2017. The fourth quarter outlook assumes growth
from the contribution of recent acquisitions, partially offset by lower
core profitability as a result of continued margin headwinds in North
America and Europe.
The company's outlook for the full year 2018 net revenue and adjusted
EBITDA remains consistent with the last update provided on October 15,
2018.
For full year 2018 compared to full year 2017, the company expects net
revenue growth of 15% to 17%. The revenue growth outlook includes the
impact of lower than anticipated core revenues in the third and fourth
quarters.
The company's outlook for full year 2018 adjusted EBITDA remains $455
million to $470 million, compared to 2017 adjusted EBITDA of $437.6
million. The midpoint of the outlook assumes a core adjusted EBITDA
margin decline of approximately 70 basis points year over year.
Full year 2018 capital expenditures are expected to be in the range of
$100 million to $110 million, a reduction of $5 million at the midpoint
versus previously announced expectations, and an increase compared to
2017 capital expenditures of $63.0 million.
Conference Call Information
JELD-WEN management will host a conference call today, November 6, 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
13681036. The replay will be available until 11:59 p.m. EST on November
20, 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 fourth 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 fourth quarter
and full year 2018 include the achievement of anticipated improvements
in end markets, competitive position, product portfolio, and internal
operations; 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 nine months ended
September 30, 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 September 30, 2017.
To conform with current period presentation of revenues, we reclassified
certain amounts in our statement of operations for the three and nine
months ended September 30, 2017. The reclassifications were not material
to our previously issued financial statements. The cumulative impact of
the adjustments for the three months ended September 30, 2017 was an
decrease in revenues of $0.1 million, increase in cost of sales of $0.2
million, a decrease in selling, general and administrative expense of
$3.4 million, and an increase in other expense of $3.1 million. The
cumulative impact of the adjustments for the nine months ended
September 30, 2017 was an increase in cost of sales of $1.6 million, a
decrease in selling, general and administrative expense of $11.0
million, and an increase in other expense of $9.3 million. The
corrections had no impact on net income or adjusted EBITDA. Please refer
to our Form 10-Q for the three and nine month period ended September 29,
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 | | | |
| | | September 29,
2018 |
|
| September 30,
2017 | | | % Variance |
|
Net revenues
| | |
$
|
1,136.9
| | | |
$
|
991.3
| | | |
14.7
|
%
|
|
Cost of sales
| | |
895.2
|
| | |
763.4
|
| | |
17.3
|
%
|
|
Gross margin
| | |
241.8
| | | |
227.9
| | | |
6.1
|
%
|
|
Selling, general and administrative
| | |
230.3
| | | |
139.2
| | | |
65.5
|
%
|
|
Impairment and restructuring charges
| | |
3.9
|
| | |
2.3
|
| | |
72.0
|
%
|
|
Operating income
| | |
7.6
| | | |
86.4
| | | |
(91.2
|
)%
|
|
Interest expense, net
| | |
18.3
| | | |
17.2
| | | |
6.6
|
%
|
|
Other (income) expense
| | |
(8.0
|
)
| | |
6.0
|
| | |
(233.4
|
)%
|
|
Income before taxes, equity earnings and discontinued operations
| | |
(2.7
|
)
| | |
63.2
| | | |
(104.3
|
)%
|
|
Income tax (benefit) expense
| | |
(31.6
|
)
| | |
13.0
|
| | |
(342.3
|
)%
|
|
Income from continuing operations, net of tax
| | |
28.9
| | | |
50.2
| | | |
(42.5
|
)%
|
|
Equity earnings of non-consolidated entities
| | |
—
|
| | |
1.1
|
| | |
(100.0
|
)%
|
|
Net income
| | |
$
|
28.9
|
| | |
$
|
51.3
|
| | |
(43.7
|
)%
|
| Other financial data: | | | | | | | | | |
|
Adjusted EBITDA(1) | | |
$
|
132.9
| | | |
$
|
128.2
| | | |
3.7
|
%
|
|
Adjusted EBITDA Margin(1) | | |
11.7
|
%
| | |
12.9
|
%
| | | |
| | | | | | | | | | |
|
|
|
| (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) | |
| | | | | | |
|
| | | Nine Months Ended | | | | |
| | | September 29,
2018 |
|
| September 30,
2017 | | | % Variance |
|
Net revenues
| | |
$
|
3,255.6
| | | |
$
|
2,788.0
| | | |
16.8
|
%
|
|
Cost of sales
| | |
2,559.2
|
| | |
2,147.1
|
| | |
19.2
|
%
|
|
Gross margin
| | |
696.4
| | | |
640.9
| | | |
8.7
|
%
|
|
Selling, general and administrative
| | |
570.2
| | | |
422.8
| | | |
34.9
|
%
|
|
Impairment and restructuring charges
| | |
9.4
|
| | |
4.0
|
| | |
133.4
|
%
|
|
Operating income
| | |
116.9
| | | |
214.1
| | | |
(45.4
|
)%
|
|
Interest expense, net
| | |
51.8
| | | |
61.6
| | | |
(15.9
|
)%
|
|
Gain on previously held shares of an equity investment
| | |
(20.8
|
)
| | |
—
| | | |
100.0
|
%
|
|
Other (income) expense
| | |
(5.6
|
)
| | |
17.6
|
| | |
NM
|
|
|
Income before taxes, equity earnings and discontinued operations
| | |
91.4
| | | |
134.8
| | | |
(32.2
|
)%
|
|
Income tax (benefit) expense
| | |
(12.4
|
)
| | |
33.0
|
| | |
NM
|
|
|
Income from continuing operations, net of tax
| | |
103.9
| | | |
101.9
| | | |
2.0
|
%
|
|
Equity earnings of non-consolidated entities
| | |
0.7
| | | |
2.6
| | | |
(71.9
|
)%
|
|
Net income
| | |
$
|
104.6
|
| | |
$
|
104.5
|
| | |
0.1
|
%
|
| Other financial data: | | | | | | | | | | |
|
Adjusted EBITDA(1) | | |
$
|
355.7
| | | |
$
|
334.5
| | | |
6.3
|
%
|
|
Adjusted EBITDA Margin(1) | | |
10.9
|
%
| | |
12.0
|
%
| | | | |
| | | | | | | | | | | |
|
|
|
|
(1)
|
|
Adjusted EBITDA is a financial measure that is not calculated in
accordance with GAAP. For a discussion of our presentation of
Adjusted EBITDA and Adjusted EBITDA Margin, see above under the
heading “Non-GAAP Financial Information”.
|
| | | |
|
|
|
| |
|
| |
JELD-WEN Holding, Inc. Selected Financial Data (Unaudited) (In millions) |
| | | | | |
|
| | | September 29,
2018 | | | December 31,
2017 |
| Consolidated balance sheet data:
| | | | | | |
|
Cash, cash equivalents
| | |
$
|
151.4
| | | |
$
|
220.2
| |
|
Accounts receivable, net
| | |
598.4
| | | |
453.3
| |
|
Inventories
| | |
519.6
| | | |
405.4
| |
|
Total current assets
| | |
1,321.2
| | | |
1,145.2
| |
|
Total assets
| | |
3,202.7
| | | |
2,862.9
| |
|
Accounts payable
| | |
277.8
| | | |
259.9
| |
|
Total current liabilities
| | |
756.0
| | | |
577.5
| |
|
Total debt
| | |
1,532.4
| | | |
1,273.7
| |
|
Total shareholders’ equity
| | |
777.7
| | | |
792.0
| |
| | | | | |
|
| | | Nine Months Ended |
| Statement of cash flows data: | | | September 29,
2018 | | | September 30,
2017 |
|
Net cash flow provided by (used in):
| | | | | | |
|
Operating activities
| | |
$
|
88.0
| | | |
$
|
174.3
| |
|
Investing activities
| | |
(245.4
|
)
| | |
(153.5
|
)
|
|
Financing activities
| | |
56.7
| | | |
85.8
| |
| | | | | | | |
|
|
|
| |
|
| |
JELD-WEN Holding, Inc. Reconciliation of Non-GAAP Financial Measures (Unaudited) (In millions) |
| | | | | |
|
| | | Three Months Ended | | | Nine Months Ended |
| | | September 29,
2018 |
|
| September 30,
2017 | | | September 29,
2018 |
|
| September 30,
2017 |
|
Net income
| | |
$
|
28.9
| | | |
$
|
51.3
| | | |
$
|
104.6
| | | |
$
|
104.5
| |
|
Equity earnings of non-consolidated entities
| | |
—
| | | |
(1.1
|
)
| | |
(0.7
|
)
| | |
(2.6
|
)
|
|
Income tax (benefit) expense
| | |
(31.6
|
)
| | |
13.0
| | | |
(12.4
|
)
| | |
33.0
| |
|
Depreciation and amortization
| | |
31.2
| | | |
27.6
| | | |
90.3
| | | |
80.6
| |
|
Interest expense, net(1) | | |
18.3
| | | |
17.2
| | | |
51.8
| | | |
61.6
| |
|
Impairment and restructuring charges
| | |
3.9
| | | |
2.3
| | | |
9.4
| | | |
4.0
| |
|
Gain on previously held shares of an equity investment
| | |
—
| | | |
—
| | | |
(20.8
|
)
| | |
—
| |
|
Gain on sale of property and equipment
| | |
(0.1
|
)
| | |
(0.1
|
)
| | |
(0.1
|
)
| | |
(0.2
|
)
|
|
Stock-based compensation expense
| | |
4.1
| | | |
5.1
| | | |
12.4
| | | |
15.8
| |
|
Non-cash foreign exchange transaction/translation loss (income)
| | |
2.8
| | | |
(1.8
|
)
| | |
0.9
| | | |
5.3
| |
|
Other non-cash items (2) | | |
—
| | | |
0.5
| | | |
12.2
| | | |
0.5
| |
|
Other items(3) | | |
75.1
| | | |
14.3
| | | |
107.9
| | | |
31.6
| |
|
Costs relating to debt restructuring and refinancing
| | |
0.2
|
| | |
—
|
| | |
0.3
|
| | |
0.3
|
|
|
Adjusted EBITDA(4) | | |
$
|
132.9
|
| | |
$
|
128.2
|
| | |
$
|
355.7
|
| | |
$
|
334.5
|
|
| | | | | | | | | | | | | | | | | | | |
|
|
|
| (1) |
|
For the nine months ended September 30, 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; (i) charges of $12.2 for the fair
value adjustment to the inventory acquired as part of our ABS
acquisition inventory fair valuation in the nine months ended
September 29, 2018; and (2) charges of $0.4 for the fair value
adjustment to the inventory acquired as part of our Mattiovi
acquisition inventory fair valuation in the three and nine months
ended September 30, 2017.
|
| | | |
|
| | (3) | |
Other items not core to business activity include: (i) in the three
months ended September 29, 2018, (1) $76.5 in litigation contingency
accruals, (2) $1.8 in acquisition costs, partially offset by (3)
$(3.7) in realized gain on hedges ; (ii) in the three months ended
September 30, 2017, (1) $9.1 in legal costs, (2) $2.7 in realized
loss on hedges, (3) $1.4 in acquisition costs; and (4) $0.3 in
secondary offering costs; (iii) in the nine months ended September
29, 2018 (1) $76.5 in litigation contingency accruals, (2) $24.3 in
legal costs, (3) $6.0 in acquisition costs, (4) $2.4 in costs
related to the exit of the former CEO, partially offset by (5)
$(3.7) in realized gain on hedges; and (iv) in the nine months ended
September 30, 2017 (1) $24.9 in legal costs, (2) $2.7 in realized
loss on hedges, (3) $1.4 in acquisition costs, (4) $1.3 in secondary
offering costs, (5) $0.8 in legal entity consolidation costs, (5)
$0.6 in facility shut down costs, (6) $0.3 in IPO costs, partially
offset by (7) $(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 |
|
| Nine Months Ended |
(amounts in millions, except share and
per share data) | | | September 29,
2018 |
|
| September 30,
2017 | | | September 29,
2018 |
|
| September 30,
2017 |
|
Net income attributable to common shareholders
| | |
$
|
28.9
| | | |
$
|
51.3
| | | |
$
|
104.7
| | | |
$
|
94.0
|
|
Litigation contingency accrual
| | |
48.9
| | | |
—
| | | |
48.9
| | | |
—
|
|
Legal and professional fees
| | |
1.2
| | | |
7.9
| | | |
19.3
| | | |
18.8
|
|
Impact of U.S. tax cuts and jobs act
| | |
(40.2
|
)
| | |
—
| | | |
(40.2
|
)
| | |
—
|
|
Non-cash foreign exchange transactions/translation (income) loss
| | |
1.8
| | | |
(1.3
|
)
| | |
0.6
| | | |
3.9
|
|
Impairment and restructuring charges
| | |
2.5
| | | |
1.7
| | | |
6.0
| | | |
2.9
|
|
Write-off of OID and debt issuance costs
| | |
—
| | | |
—
| | | |
—
| | | |
4.5
|
|
Gain on previously held shares of an equity investment
| | |
—
| | | |
—
| | | |
(13.3
|
)
| | |
—
|
|
Inventory valuation adjustments related to acquisitions
| | |
—
| | | |
0.3
| | | |
7.8
| | | |
0.3
|
|
Deferred tax liability write-off associated with equity investment
| | |
—
|
| | |
—
|
| | |
(7.1
|
)
| | |
—
|
|
Adjusted net income
| | |
$
|
43.1
|
| | |
$
|
59.8
|
| | |
$
|
126.7
|
| | |
$
|
124.4
|
| | | | | | | | | | | |
|
|
Diluted net income per share
| | |
$
|
0.27
| | | |
$
|
0.47
| | | |
$
|
0.97
| | | |
$
|
0.95
|
|
Litigation contingency accrual
| | |
0.46
| | | |
—
| | | |
0.45
| | | |
—
|
|
Legal and professional fees
| | |
0.01
| | | |
0.07
| | | |
0.18
| | | |
0.19
|
|
Impact of U.S. tax cuts and jobs act
| | |
(0.38
|
)
| | |
—
| | | |
(0.37
|
)
| | |
—
|
|
Non-cash foreign exchange transactions/translation (income) loss
| | |
0.02
| | | |
(0.01
|
)
| | |
0.01
| | | |
0.04
|
|
Impairment and restructuring charges
| | |
0.02
| | | |
0.02
| | | |
0.06
| | | |
0.03
|
|
Write-off of OID and debt issuance costs
| | |
—
| | | |
—
| | | |
—
| | | |
0.05
|
|
Gain on previously held shares of an equity investment
| | |
—
| | | |
—
| | | |
(0.12
|
)
| | |
—
|
|
Inventory valuation adjustments related to acquisitions
| | |
—
| | | |
—
| | | |
0.07
| | | |
—
|
|
Deferred tax liability write-off associated with equity investment
| | |
—
|
| | |
—
|
| | |
(0.07
|
)
| | |
—
|
|
Adjusted net income per share
| | |
$
|
0.40
|
| | |
$
|
0.55
|
| | |
$
|
1.18
|
| | |
$
|
1.26
|
| | | | | | | | | | | |
|
|
Diluted shares used in adjusted EPS calculation represent the fully
dilutive shares
| | |
105,937,429
| | | |
108,962,240
| | | |
107,477,049
| | | |
98,807,146
|
|
NOTE: Where applicable, adjustments to net income and net income per
share are tax-effected at an effective tax rate of 36.14% for the
three and nine months ended September 29, 2018 and 26.9% for the
three and nine months September 30, 2017.
|
|
|
|
|
| Nine Months Ended |
| | | September 29,
2018 |
|
| September 30,
2017 |
|
Net cash provided by operating activities
| | |
$
|
88.0
| | | |
$
|
174.3
|
|
Less capital expenditures
| | |
80.1
|
| | |
32.4
|
|
Free cash flow
| | |
$
|
7.8
|
| | |
$
|
141.9
|
| | | | | | | | |
|
|
|
| |
|
| |
JELD-WEN Holding, Inc. Segment Results (Unaudited) (In millions) |
| | | | | |
|
| | | Three Months Ended | | | |
| | | September 29,
2018 |
|
| September 30,
2017 | | | |
|
Net revenues from external customers
| | | | | | | | | % Variance |
| North America | | |
$
|
668.2
| | | |
$
|
571.9
| | | |
16.8
|
%
|
| Europe | | |
292.9
| | | |
265.1
| | | |
10.5
|
%
|
| Australasia | | |
175.9
|
| | |
154.3
|
| | |
14.0
|
%
|
|
Total Consolidated
| | |
$
|
1,136.9
|
| | |
$
|
991.3
|
| | |
14.7
|
%
|
|
Adjusted EBITDA(1) | | | | | | | | | |
| North America | | |
$
|
84.1
| | | |
$
|
82.5
| | | |
2.0
|
%
|
| Europe | | |
28.1
| | | |
33.4
| | | |
(15.7
|
)%
|
| Australasia | | |
26.3
| | | |
22.9
| | | |
14.7
|
%
|
|
Corporate and unallocated costs
| | |
(5.6
|
)
| | |
(10.6
|
)
| | |
(47.3
|
)%
|
|
Total Consolidated
| | |
$
|
132.9
|
| | |
$
|
128.2
|
| | |
3.7
|
%
|
| | | | | | | | | | | | | |
|
|
|
| (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) |
| | | | | |
|
| | | Nine Months Ended | | | |
| | | September 29,
2018 |
|
| September 30,
2017 | | | |
|
Net revenues from external customers
| | | | | | | | | % Variance |
| North America | | |
$
|
1,839.3
| | | |
$
|
1,607.8
| | | |
14.4%
|
| Europe | | |
913.3
| | | |
766.3
| | | |
19.2%
|
| Australasia | | |
503.0
|
| | |
413.9
|
| | |
21.5%
|
|
Total Consolidated
| | |
$
|
3,255.6
|
| | |
$
|
2,788.0
|
| | |
16.8%
|
|
Adjusted EBITDA(1) | | | | | | | | | |
| North America | | |
$
|
210.8
| | | |
$
|
212.5
| | | |
(0.8)%
|
| Europe | | |
99.9
| | | |
97.6
| | | |
2.3%
|
| Australasia | | |
67.2
| | | |
53.5
| | | |
25.6%
|
|
Corporate and unallocated costs
| | |
(22.1
|
)
| | |
(29.1
|
)
| | |
(24.0)%
|
|
Total Consolidated
| | |
$
|
355.7
|
| | |
$
|
334.5
|
| | |
6.3%
|
| | | | | | | | | | | | |
|
|
|
| (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”.
|
| | | |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20181106005272/en/
JELD-WEN Holding, Inc.
Chris Teachout, 704-378-7007
Investor
Relations Manager
investors@jeldwen.com
Source: JELD-WEN Holding, Inc.