CHARLOTTE, N.C.--(BUSINESS WIRE)--
JELD-WEN Holding, Inc. (NYSE:JELD) today announced results for the three
months and full year ended December 31, 2018, provided its 2019 outlook
and announced an upcoming leadership transition with its board of
directors.
Highlights:
-
Net revenues for the fourth quarter increased 11.8% year over year to
$1.091 billion, bringing full year revenue to $4.347 billion
-
Net revenue growth for the fourth quarter was driven by a 14%
contribution from acquisitions, partially offset by a 2% foreign
exchange headwind, while core revenues were unchanged
-
Net income for the fourth quarter was $39.7 million, an increase of
$133.4 million year over year bringing full year net income to $144.3
million
-
Diluted earnings per share ("EPS") for the fourth quarter was $0.38,
an increase of $1.27, and adjusted EPS amounted to $0.41, an increase
of $0.15, year over year
-
Adjusted EBITDA for the fourth quarter increased by $6.5 million year
over year to $109.6 million, bringing full year adjusted EBITDA to
$465.3 million
-
Repurchased 2.2 million shares for $41.4 million during the fourth
quarter
-
Outlook for full year 2019 includes net revenue growth of 1% to 5% and
adjusted EBITDA of $470 million to $505 million
“I am proud of the sequential improvements in execution that we made
during the fourth quarter, delivering 2018 revenue and adjusted EBITDA
growth of 15.5% and 6.3%, respectively, and capping our fifth
consecutive year of adjusted EBITDA growth," said Gary S. Michel,
president and chief executive officer. "While core operating results in
the fourth quarter were challenged in certain businesses due to weak
volumes, unfavorable mix, and input cost inflation, we delivered core
margin expansion in our North America and Australasia segments. We made
solid progress in the quarter with the deployment of our business
operating system, the JELD-WEN Excellence Model or JEM, driving improved
service levels and favorable labor efficiencies. These improvements have
strengthened our relationships with channel partners and customers,
which will contribute core revenue growth and margin expansion in 2019."
Fourth Quarter 2018 Results
-
Delivered core adjusted EBITDA margin expansion in North America and
Australasia
-
Favorable price / cost realization
-
Europe results challenged by unfavorable mix
Net revenues for the three months ended December 31, 2018 increased
$115.3 million, or 11.8%, to $1.091 billion, compared to $975.8 million
for the same period last year. The increase in net revenues was driven
by a 14% 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 $39.7 million, compared to a net loss of $93.7 million in
the same quarter last year, an increase of $133.4 million. The increase
in net income was primarily due to contributions from recent
acquisitions and the non-recurrence of tax charges taken during the
fourth quarter of 2017. Excluding the benefit of distinct items in the
quarter, the effective book tax rate was approximately 32.2%. Adjusted
net income for the fourth quarter was $42.5 million, compared to $28.5
million in the same quarter last year, an increase of $14.0 million.
EPS for the fourth quarter was $0.38 compared to $(0.89) for the same
quarter last year, an increase of $1.27. Adjusted EPS was $0.41 compared
to $0.26 for the same quarter last year, an increase of $0.15.
Adjusted EBITDA increased $6.5 million, or 6.3%, to $109.6 million,
compared to $103.1 million in the same quarter last year. Adjusted
EBITDA margins decreased 60 basis points in the quarter to 10.0%, from
10.6% in the prior year. The decrease in adjusted EBITDA margins was due
to a decline in core adjusted EBITDA margins of 60 basis points. Core
margins were adversely impacted by unfavorable mix in Europe, partially
offset by core margin improvements in North America and Europe.
On a segment basis for the fourth quarter of 2018, compared to the same
period last year:
-
North America - Net revenues increased $71.5 million, or 13.0%,
to $621.6 million, due primarily to a 14% contribution from recent
acquisitions, partially offset by a 1% decline in core revenues. Core
revenue decline from volume/mix of 4%, was partly offset by a 3%
pricing benefit. Volume headwinds were most significant in the U.S.
windows and Canada businesses. Adjusted EBITDA increased $7.1 million,
or 11.6%, to $68.2 million. Adjusted EBITDA margin declined by 10
basis points to 11.0%, as foreign exchange and the dilutive impact of
recent acquisitions more than offset a 40 basis point improvement in
core adjusted EBITDA margins. The increase in core margins was
primarily due to improved pricing and reduced SG&A expense, partially
offset by unfavorable volume/mix and inflation in raw materials and
freight.
-
Europe - Net revenues increased $26.1 million, or 9.4%, to
$302.5 million, due to a 12% contribution from recent acquisitions,
partially offset by 4% from the unfavorable impact of foreign
exchange. Core revenues increased by 1% due to favorable pricing.
Adjusted EBITDA decreased $6.0 million, or 16.9%, to $29.3 million.
Adjusted EBITDA margins declined 310 basis points to 9.7%, primarily
due to a decrease in core adjusted EBITDA margins of 210 basis points
and the adverse impact of foreign exchange. Core margins declined
primarily due to unfavorable channel and product mix.
-
Australasia - Net revenues increased $17.7 million, or 11.9%,
to $166.9 million, primarily due to the contribution from recent
acquisitions of 19%, partially offset by 6% from the unfavorable
impact of foreign exchange, while core growth declined by 1%. Adjusted
EBITDA increased $2.8 million, or 13.0%, to $24.0 million. Adjusted
EBITDA margin expanded by 20 basis points to 14.4%, due to a 10 basis
point improvement in core adjusted EBITDA margins. The increase in
core margins was due to an improvement in productivity and reduced
SG&A expense.
Full Year 2018 Results
-
Revenue growth of 15.5% driven by recent acquisitions
-
Fifth consecutive year of adjusted EBITDA growth
Net revenues for the twelve months ended December 31, 2018 increased
$583.0 million, or 15.5%, to $4.347 billion, compared to $3.764 billion
for the same period last year. The increase was driven by a 15%
contribution from recent acquisitions and a 1% contribution from core
growth. Net income increased $133.5 million, to $144.3 million, compared
to $10.8 million in the same period last year. Adjusted EBITDA increased
$27.7 million, or 6.3%, to $465.3 million, compared to $437.6 million in
the same period last year. Adjusted EBITDA margins decreased 90 basis
points to 10.7%, from 11.6% 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 70 basis points.
Cash Flow and Balance Sheet
-
Increased capital investments to fund productivity initiatives and
future growth
-
Repurchased $125.0 million of common stock in 2018
-
Strong liquidity and improving leverage ratios now within targeted
range
Cash flows from operations totaled $219.7 million in 2018 compared to
$265.8 million in 2017. Cash flows from operations improved by $131.7
million sequentially during the fourth quarter, compared to a $91.4
million sequential improvement from the third quarter to the fourth
quarter of 2017. Free cash flow decreased $101.7 million year over year
in 2018 to $101.0 million, from $202.7 million in 2017. The decrease in
free cash flow was primarily due to increased working capital
requirements and increased capital expenditures.
The company repurchased 5,287,964 shares of its common stock for a total
of $125.0 million in 2018. During the fourth quarter, the company
repurchased 2,207,370 shares for a total of $41.4 million. At the end of
the quarter, $125.0 million was available for additional repurchases
through December 2019 under the current authorization.
Cash and cash equivalents as of December 31, 2018 were $117.0 million,
compared to $220.2 million as of December 31, 2017. Total debt as of
December 31, 2018 was $1.478 billion, compared to $1.274 billion as of
December 31, 2017.
Outlook for 2019
-
Outlook includes core revenue growth and margin expansion
-
Confidence in 2019 outlook based on pipeline of productivity cost
saving initiatives and pricing actions
-
Elevated capital expenditures to fund facility rationalization
program, which will improve margins and return on invested capital,
simplify operations, and drive efficiencies
In 2019, the company sees a mixed demand environment across its
segments. For the North America segment, the company expects market
growth based on a stable residential repair and remodel backdrop and
modest new construction growth. In the Europe segment, moderating
economic growth is likely to result in flat end market demand. In the
Australasia segment, tightening credit policies are expected to result
in moderate contraction in the company's primary end market of
residential new construction.
The company’s outlook for adjusted EBITDA in 2019 is $470 million to
$505 million, compared to adjusted EBITDA for 2018 of $465.3 million.
The outlook assumes net revenue growth of 1% to 5%, based upon core
revenue growth of approximately 2%. Additionally, the outlook assumes
core adjusted EBITDA margin improvement of 40 basis points at the
midpoint.
Full year 2019 capital expenditures are expected to be in the range of
$140 million to $160 million, compared to 2018 capital expenditures of
$118.7 million. Capital expenditures are expected to remain near these
levels through completion of the company's facility rationalization plan
in 2021.
"Based on our strong pipeline of productivity initiatives, significant
channel investments, pricing actions, and a stabilizing environment for
input cost inflation, we are confident in our ability to meet our
financial commitments in 2019," said Mr. Michel.
Board of Directors Transition
The company also today announced that Kirk S. Hachigian, non-executive
chairman, has indicated his intention to retire from the board of
directors at the conclusion of the company’s annual meeting of
shareholders in May 2019. The board has selected Matthew Ross to succeed
Mr. Hachigian as non-executive chairman when Mr. Hachigian retires. Mr.
Ross joined the board of directors in 2011.
“It has been a great honor to both lead and support the JELD-WEN
management team over the past five years,” said Hachigian. “Following
our successful CEO transition over the past year, I have utmost
confidence in JELD-WEN’s management team under Gary Michel’s leadership.
I am pleased with the recent trajectory of the improvements in the
business and I am confident that JELD-WEN has the right team, strategy,
and operating cadence in place to achieve its goal of becoming a
world-class company.”
Mr. Hachigian joined the board of directors in 2013, also serving as the
company’s chief executive officer and executive chairman during his
tenure.
“On behalf of the board of directors and the company, we thank Kirk for
his outstanding leadership and dedication to JELD-WEN,” said Mr. Michel.
“Kirk was instrumental in the company’s transformation into a publicly
traded industry leader. During his time at JELD-WEN, the company has
seen consistent top line growth and margin expansion and has completed
13 strategic acquisitions. Kirk has positioned us well for the future,
and we are grateful for his legacy. I am personally thankful for the
coaching and mentorship Kirk has provided to me during this transition.”
"We are very pleased with the progress made under Kirk's leadership, and
thank him for his many years of service," said Mr. Ross. "With the new
management team carrying forward the momentum created by Kirk, the board
of directors and I believe JELD-WEN is poised to create significant
shareholder value."
Conference Call Information
JELD-WEN management will host a conference call today, February 19,
2019, at 8 a.m. EST, to discuss the company’s financial results.
Interested investors and other parties can access the call either via
webcast by visiting the Investor Relations section of the company's
website at http://investors.jeld-wen.com,
or by dialing (866) 393-4306 (domestic) or (734) 385-2616
(international). A slide presentation highlighting the company’s results
will also be available on the Investor Relations section of the
company’s website.
For those unable to listen to the live event, a webcast replay will be
available approximately two hours following completion of the call.
To learn more about JELD-WEN, please visit the company’s website at 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, litigation
outcomes, our outlook for 2019, 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 2019 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 months and twelve months ended
December 31, 2017 has been revised as a result of our retrospective
application of ASU 2017-07, pursuant to which we reclassified certain
amounts in our statement of operations for the three months and twelve
months ended December 31, 2017. To conform with current period
presentation of revenues, we reclassified certain amounts in our
statement of operations for the three and twelve months ended
December 31, 2017. The reclassifications were not material to our
previously issued financial statements. The cumulative impact of the
adjustments for the three months ended December 31, 2017 was a decrease
in revenues of $0.2 million, decrease in cost of sales of $3.0 million,
a decrease in selling, general and administrative expense of $1.6
million, and an increase in other expense of $4.5 million. The
cumulative impact of the adjustments for the twelve months ended
December 31, 2017 was a decrease in net revenues of $0.2 million, a
decrease in cost of sales of $1.4 million, a decrease in selling,
general and administrative expense of $12.6 million, and an increase in
other expense of $13.8 million. The corrections had no impact on net
income or adjusted EBITDA. Please refer to our Form 10-K for year ended
December 31, 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. The variability of these items may have
a significant impact on our future GAAP results.
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), adjusted for the
following items: loss from discontinued operations, net of tax; equity
earnings of non-consolidated entities; income tax (benefit) expense;
depreciation and amortization; interest expense, net; impairment and
restructuring charges; gain on previously held shares of equity
investment; (gain) loss on sale of property and equipment; share-based
compensation expense; non-cash foreign exchange transaction/translation
(income) loss; other non-cash items; other items; and costs related to
debt restructuring and debt refinancing. 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
|
|
|
|
|
|
|
|
December 31,
2018
|
|
|
December 31,
2017
|
|
|
% Variance
|
Net revenues
|
|
|
|
$
|
1,091.1
|
|
|
|
$
|
975.8
|
|
|
|
11.8
|
%
|
Cost of sales
|
|
|
|
863.8
|
|
|
|
767.2
|
|
|
|
12.6
|
%
|
Gross margin
|
|
|
|
227.3
|
|
|
|
208.5
|
|
|
|
9.0
|
%
|
Selling, general and administrative
|
|
|
|
163.6
|
|
|
|
149.7
|
|
|
|
9.3
|
%
|
Impairment and restructuring charges
|
|
|
|
8.0
|
|
|
|
9.0
|
|
|
|
(12.0
|
)%
|
Operating income
|
|
|
|
55.8
|
|
|
|
49.8
|
|
|
|
12.0
|
%
|
Interest expense, net
|
|
|
|
19.0
|
|
|
|
17.4
|
|
|
|
9.1
|
%
|
Other (income) expense
|
|
|
|
(7.4
|
)
|
|
|
(1.7
|
)
|
|
|
321.4
|
%
|
Income before taxes, equity earnings and discontinued operations
|
|
|
|
44.1
|
|
|
|
10.9
|
|
|
|
304.8
|
%
|
Income tax (benefit) expense
|
|
|
|
4.5
|
|
|
|
105.6
|
|
|
|
(95.8
|
)%
|
Income from continuing operations, net of tax
|
|
|
|
39.7
|
|
|
|
(94.7
|
)
|
|
|
(141.9
|
)%
|
Equity earnings of non-consolidated entities
|
|
|
|
—
|
|
|
|
1.0
|
|
|
|
(100.0
|
)%
|
Net income
|
|
|
|
$
|
39.7
|
|
|
|
$
|
(93.7
|
)
|
|
|
(142.3
|
)%
|
Other financial data:
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA(1) |
|
|
|
$
|
109.6
|
|
|
|
$
|
103.1
|
|
|
|
6.3
|
%
|
Adjusted EBITDA Margin(1) |
|
|
|
10.0
|
%
|
|
|
10.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
|
|
December 31,
2018
|
|
|
December 31,
2017
|
|
|
% Variance
|
Net revenues
|
|
|
|
$
|
4,346.7
|
|
|
|
$
|
3,763.7
|
|
|
|
15.5
|
%
|
Cost of sales
|
|
|
|
3,423.0
|
|
|
|
2,914.3
|
|
|
|
17.5
|
%
|
Gross margin
|
|
|
|
923.7
|
|
|
|
849.4
|
|
|
|
8.7
|
%
|
Selling, general and administrative
|
|
|
|
733.7
|
|
|
|
572.5
|
|
|
|
28.2
|
%
|
Impairment and restructuring charges
|
|
|
|
17.3
|
|
|
|
13.1
|
|
|
|
32.7
|
%
|
Operating income
|
|
|
|
172.7
|
|
|
|
263.9
|
|
|
|
(34.6
|
)%
|
Interest expense, net
|
|
|
|
70.8
|
|
|
|
79.0
|
|
|
|
(10.4
|
)%
|
Gain on previously held shares of an equity investment
|
|
|
|
(20.8
|
)
|
|
|
—
|
|
|
|
100.0
|
%
|
Loss on debt extinguishment
|
|
|
|
—
|
|
|
|
23.3
|
|
|
|
100.0
|
%
|
Other (income) expense
|
|
|
|
(13.0
|
)
|
|
|
15.9
|
|
|
|
NM
|
|
Income before taxes, equity earnings and discontinued operations
|
|
|
|
135.6
|
|
|
|
145.8
|
|
|
|
(7.0
|
)%
|
Income tax (benefit) expense
|
|
|
|
(8.0
|
)
|
|
|
138.6
|
|
|
|
NM
|
|
Income from continuing operations, net of tax
|
|
|
|
143.5
|
|
|
|
7.2
|
|
|
|
1,906.9
|
%
|
Equity earnings of non-consolidated entities
|
|
|
|
0.7
|
|
|
|
3.6
|
|
|
|
(79.7
|
)%
|
Net income
|
|
|
|
$
|
144.3
|
|
|
|
$
|
10.8
|
|
|
|
1,237.0
|
%
|
Other financial data:
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA(1) |
|
|
|
$
|
465.3
|
|
|
|
$
|
437.6
|
|
|
|
6.3
|
%
|
Adjusted EBITDA Margin(1) |
|
|
|
10.7
|
%
|
|
|
11.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2018
|
|
|
December 31,
2017
|
Consolidated balance sheet data:
|
|
|
|
|
|
|
|
Cash, cash equivalents
|
|
|
|
$
|
117.0
|
|
|
|
$
|
220.2
|
|
Accounts receivable, net
|
|
|
|
471.7
|
|
|
|
453.3
|
|
Inventories
|
|
|
|
513.2
|
|
|
|
405.4
|
|
Total current assets
|
|
|
|
1,154.8
|
|
|
|
1,145.2
|
|
Total assets
|
|
|
|
3,054.4
|
|
|
|
2,862.9
|
|
Accounts payable
|
|
|
|
253.6
|
|
|
|
259.9
|
|
Total current liabilities
|
|
|
|
673.6
|
|
|
|
577.5
|
|
Total debt
|
|
|
|
1,477.9
|
|
|
|
1,273.7
|
|
Total shareholders’ equity
|
|
|
|
767.8
|
|
|
|
792.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
Statement of cash flows data:
|
|
|
|
December 31,
2018
|
|
|
December 31,
2017
|
Net cash flow provided by (used in):
|
|
|
|
|
|
|
|
Operating activities
|
|
|
|
$
|
219.7
|
|
|
|
$
|
265.8
|
|
Investing activities
|
|
|
|
(284.1
|
)
|
|
|
(189.8
|
)
|
Financing activities
|
|
|
|
(67.5
|
)
|
|
|
64.1
|
|
|
|
|
|
|
|
|
|
|
JELD-WEN Holding, Inc.
|
|
Reconciliation of Non-GAAP Financial Measures (Unaudited)
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
|
|
|
December 31,
2018
|
|
|
December 31,
2017
|
|
|
December 31,
2018
|
|
|
December 31,
2017
|
Net income
|
|
|
|
$
|
39.7
|
|
|
|
$
|
(93.7
|
)
|
|
|
$
|
144.3
|
|
|
|
$
|
10.8
|
|
Equity earnings of non-consolidated entities
|
|
|
|
—
|
|
|
|
(1.0
|
)
|
|
|
(0.7
|
)
|
|
|
(3.6
|
)
|
Income tax (benefit) expense
|
|
|
|
4.5
|
|
|
|
105.6
|
|
|
|
(8.0
|
)
|
|
|
138.6
|
|
Depreciation and amortization
|
|
|
|
34.8
|
|
|
|
30.7
|
|
|
|
125.1
|
|
|
|
111.3
|
|
Interest expense, net(1) |
|
|
|
19.0
|
|
|
|
17.4
|
|
|
|
70.8
|
|
|
|
79.0
|
|
Impairment and restructuring charges
|
|
|
|
8.0
|
|
|
|
9.0
|
|
|
|
17.3
|
|
|
|
13.1
|
|
Gain on previously held shares of an equity investment
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(20.8
|
)
|
|
|
—
|
|
Gain on sale of property and equipment
|
|
|
|
0.2
|
|
|
|
(0.1
|
)
|
|
|
0.1
|
|
|
|
(0.3
|
)
|
Stock-based compensation expense
|
|
|
|
2.7
|
|
|
|
3.9
|
|
|
|
15.1
|
|
|
|
19.8
|
|
Non-cash foreign exchange transaction/translation loss (income)
|
|
|
|
(0.9
|
)
|
|
|
(7.5
|
)
|
|
|
—
|
|
|
|
(2.2
|
)
|
Other non-cash items (2) |
|
|
|
(8.4
|
)
|
|
|
—
|
|
|
|
3.9
|
|
|
|
0.5
|
|
Other items(3) |
|
|
|
10.0
|
|
|
|
15.4
|
|
|
|
117.9
|
|
|
|
47.0
|
|
Costs relating to debt restructuring and refinancing
|
|
|
|
—
|
|
|
|
23.4
|
|
|
|
0.3
|
|
|
|
23.7
|
|
Adjusted EBITDA(4) |
|
|
|
$
|
109.6
|
|
|
|
$
|
103.1
|
|
|
|
$
|
465.3
|
|
|
|
$
|
437.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For the year ended December 31, 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 $(8.5) and $3.7 for
fair value adjustments to the inventory acquired as part of our ABS and
Domoferm acquisitions in the three and twelve months ended December 31,
2018, respectively; 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 twelve months ended December 31, 2017.
(3) Other items not core to business activity include: (i) in the three
months ended December 31, 2018, (1) $4.4 in acquisition costs, (2) $2.5
in entity consolidation and reorganization costs, (3) $1.1 in legal
costs, and (4) $1.0 in costs related to the exit of the former CEO and
CFO partially offset by (5) $(1.7) in realized gain on hedges ; (ii) in
the three months ended December 31, 2017, (1) $9.3 in legal costs,
(2)$2.1 in acquisition costs, (3) $1.5 in realized loss on hedges, (4)
$0.9 in secondary offering costs, and (5) $0.6 in taxes related to
equity-based compensation; (iii) in the twelve months ended December 31,
2018 (1) $76.5 in litigation contingency accruals, (2) $25.4 in legal
costs, (3) $10.3 in acquisition costs, (4) $3.4 in costs related to the
exit of the former CEO and CFO, and (5) $2.9 in entity consolidation and
reorganization costs, partially offset by (6) $(5.4) in realized gain on
hedges;and iv) in the twelve months ended December 31, 2017 (1) $34.2 in
legal costs, (2) $4.2 in realized loss on hedges, (3) $3.5 in
acquisition costs, (4) $2.2 in secondary offering costs, (5) 0.8 in tax
consulting fees, (6) $0.7 in legal entity consolidation costs, (5) $0.6
in taxes related to equity-based compensation, and (6) $0.6 in facility
ramp down 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
|
|
|
Twelve Months Ended
|
(amounts in millions, except share and
per share data)
|
|
|
|
December 31,
2018
|
|
|
December 31,
2017
|
|
|
December 31,
2018
|
|
|
December 31,
2017
|
Net income attributable to common shareholders
|
|
|
|
$
|
39.7
|
|
|
|
$
|
(93.7
|
)
|
|
|
$
|
144.4
|
|
|
|
$
|
0.3
|
|
Undeclared preferred stock dividends related to pre-IPO share
capitalization
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
10.5
|
|
Litigation contingency accrual
|
|
|
|
—
|
|
|
|
—
|
|
|
|
49.6
|
|
|
|
—
|
|
Legal and professional fees
|
|
|
|
3.7
|
|
|
|
6.7
|
|
|
|
23.2
|
|
|
|
24.4
|
|
Impact of U.S. tax cuts and jobs act
|
|
|
|
—
|
|
|
|
97.7
|
|
|
|
(40.2
|
)
|
|
|
97.7
|
|
Non-cash foreign exchange transactions/translation (income) loss
|
|
|
|
(0.6
|
)
|
|
|
(5.4
|
)
|
|
|
—
|
|
|
|
(1.6
|
)
|
Impairment and restructuring charges
|
|
|
|
5.4
|
|
|
|
6.5
|
|
|
|
11.2
|
|
|
|
9.4
|
|
Write-off of OID and debt issuance costs
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4.4
|
|
Loss on extinguishment of debt
|
|
|
|
—
|
|
|
|
16.7
|
|
|
|
—
|
|
|
|
16.7
|
|
Gain on previously held shares of an equity investment
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(13.5
|
)
|
|
|
—
|
|
Inventory valuation adjustments related to acquisitions
|
|
|
|
(5.6
|
)
|
|
|
—
|
|
|
|
2.5
|
|
|
|
—
|
|
Deferred tax liability write-off associated with equity investment
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(7.1
|
)
|
|
|
—
|
|
Adjusted net income
|
|
|
|
$
|
42.5
|
|
|
|
$
|
28.5
|
|
|
|
$
|
170.1
|
|
|
|
$
|
161.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per share
|
|
|
|
$
|
0.38
|
|
|
|
$
|
(0.89
|
)
|
|
|
$
|
1.36
|
|
|
|
$
|
—
|
|
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
|
)
|
Litigation contingency accrual
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.47
|
|
|
|
—
|
|
Legal and professional fees
|
|
|
|
0.04
|
|
|
|
0.06
|
|
|
|
0.22
|
|
|
|
0.22
|
|
Impact of U.S. tax cuts and jobs act
|
|
|
|
—
|
|
|
|
0.90
|
|
|
|
(0.38
|
)
|
|
|
0.90
|
|
Non-cash foreign exchange transactions/translation (income) loss
|
|
|
|
(0.01
|
)
|
|
|
(0.05
|
)
|
|
|
—
|
|
|
|
(0.01
|
)
|
Impairment and restructuring charges
|
|
|
|
0.05
|
|
|
|
0.06
|
|
|
|
0.11
|
|
|
|
0.09
|
|
Write-off of OID and debt issuance costs
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.04
|
|
Gain on previously held shares of an equity investment
|
|
|
|
—
|
|
|
|
0.15
|
|
|
|
(0.13
|
)
|
|
|
0.15
|
|
Inventory valuation adjustments related to acquisitions
|
|
|
|
(0.05
|
)
|
|
|
—
|
|
|
|
0.02
|
|
|
|
—
|
|
Deferred tax liability write-off associated with equity investment
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.07
|
)
|
|
|
—
|
|
Adjusted net income per share
|
|
|
|
$
|
0.41
|
|
|
|
$
|
0.26
|
|
|
|
$
|
1.60
|
|
|
|
$
|
1.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares used in adjusted EPS calculation represent the fully
dilutive shares for the three and twelve months December 31, 2017
|
|
|
|
103,183,149
|
|
|
|
109,209,218
|
|
|
|
106,360,657
|
|
|
|
109,209,218
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTE:Where applicable, adjustments to net income and net income
per share are tax-effected at an effective tax rate of 32.2% and 35.2%
for the three and twelve months ended December 31, 2018, respectively,
and 28.0% for the three and twelve months December 31, 2017.
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
|
December 31,
2018
|
|
|
December 31,
2017
|
Net cash provided by operating activities
|
|
|
|
$
|
219.7
|
|
|
$
|
265.8
|
Less capital expenditures
|
|
|
|
118.7
|
|
|
63.0
|
Free cash flow
|
|
|
|
$
|
101.0
|
|
|
$
|
202.7
|
|
|
|
|
|
|
|
|
|
|
|
JELD-WEN Holding, Inc.
|
|
Segment Results (Unaudited)
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
December 31,
2018
|
|
|
December 31,
2017
|
|
|
|
Net revenues from external customers
|
|
|
|
|
|
|
|
|
|
% Variance
|
North America
|
|
|
|
$
|
621.6
|
|
|
|
$
|
550.1
|
|
|
|
13.0
|
%
|
Europe
|
|
|
|
302.5
|
|
|
|
276.4
|
|
|
|
9.4
|
%
|
Australasia
|
|
|
|
166.9
|
|
|
|
149.2
|
|
|
|
11.9
|
%
|
Total Consolidated
|
|
|
|
$
|
1,091.1
|
|
|
|
$
|
975.8
|
|
|
|
11.8
|
%
|
Adjusted EBITDA(1) |
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
|
$
|
68.2
|
|
|
|
$
|
61.1
|
|
|
|
11.6
|
%
|
Europe
|
|
|
|
29.3
|
|
|
|
35.3
|
|
|
|
(16.9
|
)%
|
Australasia
|
|
|
|
24.0
|
|
|
|
21.2
|
|
|
|
13.0
|
%
|
Corporate and unallocated costs
|
|
|
|
(11.9
|
)
|
|
|
(14.5
|
)
|
|
|
(18.0
|
)%
|
Total Consolidated
|
|
|
|
$
|
109.6
|
|
|
|
$
|
103.1
|
|
|
|
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.”
|
JELD-WEN Holding, Inc.
|
|
Segment Results (Unaudited)
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
|
|
December 31,
2018
|
|
|
December 31,
2017
|
|
|
|
Net revenues from external customers
|
|
|
|
|
|
|
|
|
|
% Variance
|
North America
|
|
|
|
$
|
2,461.0
|
|
|
|
$
|
2,157.9
|
|
|
|
14.0
|
%
|
Europe
|
|
|
|
1,215.8
|
|
|
|
1,042.8
|
|
|
|
16.6
|
%
|
Australasia
|
|
|
|
669.9
|
|
|
|
563.1
|
|
|
|
19.0
|
%
|
Total Consolidated
|
|
|
|
$
|
4,346.7
|
|
|
|
$
|
3,763.7
|
|
|
|
15.5
|
%
|
Adjusted EBITDA(1) |
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
|
$
|
279.0
|
|
|
|
$
|
273.6
|
|
|
|
2.0
|
%
|
Europe
|
|
|
|
129.2
|
|
|
|
132.9
|
|
|
|
(2.8
|
)%
|
Australasia
|
|
|
|
91.2
|
|
|
|
74.7
|
|
|
|
22.0
|
%
|
Corporate and unallocated costs
|
|
|
|
(34.0
|
)
|
|
|
(43.6
|
)
|
|
|
(22.0
|
)%
|
Total Consolidated
|
|
|
|
$
|
465.3
|
|
|
|
$
|
437.6
|
|
|
|
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/20190219005360/en/
Investor Relations Contact:
JELD-WEN Holding, Inc.
Chris
Teachout
Investor Relations Manager
704-378-7007
investors@jeldwen.com
Source: JELD-WEN Holding, Inc.