JELD-WEN Reports First Quarter 2024 Results and Updates Full Year Guidance

JELD-WEN Holding, Inc. (“JELD-WEN” or the “Company”) announced results for the three months ended March 30, 2024. Additionally, the Company has updated its full year 2024 guidance. Comparability is to the same period in the prior year and all periods presented reflect the Company’s Australasia segment as a discontinued operation, as appropriate and unless otherwise noted.

First Quarter Highlights

• Net revenues from continuing operations of $959.1 million decreased (11.2%) in the first quarter driven by a (12%) Core Revenue decline as a result of (12%) lower volume/mix due to weak macro-economic conditions.
• Net loss from continuing operations was $(27.7) million or $(0.32) per share, compared to $8.5 million, or $0.10 per share during the same quarter a year ago. Operating income/(loss) margin was (2.9)% and 2.8% for the quarters ended March 30, 2024 and April 1, 2023, respectively.
• Adjusted EBITDA from continuing operations was $68.7 million, a decrease of $(10.6) million compared to $79.3 million during the same quarter a year ago. Adjusted EBITDA Margin from continuing operations was 7.2%, a decrease of (10) basis points year-over-year as the impact of lower volume/mix was mostly offset by productivity improvements and higher other income.

“We continue to execute on our transformation journey and position JELD-WEN for improved performance,” said Chief Executive Officer William J. Christensen. “In the first quarter, despite the challenging demand environment, we made good progress on streamlining operations and improving customer experience. I am proud of how our associates remained focused on meeting our customers’ expectations while working diligently to implement the necessary changes to fix our foundation.”

First Quarter 2024 Results

Net revenues from continuing operations for the three months ended March 30, 2024 was $959.1 million, a decrease of $(121.4) million, or (11.2%), compared to $1,080.5 million for the same period last year. The decrease in net revenues was driven by a (12%) decline in Core Revenue as a result of (12%) lower volume/mix due to weak macro-economic conditions.

Net loss from continuing operations was $(27.7) million in the first quarter, compared to $8.5 million in the same period last year, a decrease of $(36.2) million. The decrease was mostly driven by lower volume/mix and increased costs to execute on JELD-WEN’s transformation journey, partially offset by higher other income. Adjusted Net Income from continuing operations for the first quarter was $18.4 million, a decrease of $(3.2) million compared to $21.6 million in the same period last year. 

Net loss per share from continuing operations for the first quarter was $(0.32), compared to EPS of $0.10 in the same quarter last year. Adjusted EPS from continuing operations for the first quarter was $0.21 compared to $0.25 in the same quarter last year. Adjusted EPS for the quarter ended March 30, 2024 excludes net after-tax charges of $46.1 million, or $0.53 per diluted share, associated mainly with costs to execute on the Company’s transformation journey. Adjusted EPS for the quarter ended April 1, 2023 excludes net after-tax charges of $13.1 million or $0.15 per diluted share.

Adjusted EBITDA from continuing operations was $68.7 million, a decline of $(10.6) million compared to $79.3 million during the same quarter last year. Adjusted EBITDA Margin from continuing operations was 7.2%, a decline of (10) basis points as lower volume/mix was mostly offset by productivity improvements and higher other income.

On a segment basis for the first quarter of 2024, compared to the same period last year:

• North America – Net revenue was $680.0 million, a decline of $(88.0) million, or (11.5%), driven by a (12%) decline in Core Revenue due to (11%) lower volume/mix related to weakened market demand. Net income was $16.3 million, a decline of $(19.0) million year-over-year. Operating income margin was 2.9% for the quarter ended March 30, 2024 and 7.0% for the quarter ended April 1, 2023. Adjusted EBITDA was $61.2 million, a decline of ($18.0) million while Adjusted EBITDA Margin decreased by (130) basis points to 9.0%.
• Europe – Net revenue was $279.1 million, a decline of $(33.4) million, or (10.7%), due to a (12%) decline in Core Revenue. Core Revenue declined due to lower volume/mix (14%) related to market softness across the region, partially offset by a 2% benefit from price realization. Net income was $0.0 million a decline of $(7.3) million year-over-year. Operating income margin was 0.9% for the quarter ended March 30, 2024 and 1.7% for the quarter ended April 1, 2023. Adjusted EBITDA was $14.5 million, a decline of $(3.1) million, while Adjusted EBITDA Margin decreased by (40) basis points to 5.2%.

Cash Flow⁽¹⁾

Net cash flow used in operations was ($11.0) million for the first quarter of 2024, a $(10.3) million increase in use of cash compared to net cash flow used in operations of ($0.7) million during the same period a year ago. The decreased operating cash flow was due to lower net income of ($42.9) million and a decline in changes in accrued expenses of ($28.6) million, both of which were mostly offset by a $62.7 million improvement in cash flow associated with working capital.

Capital expenditures in the first quarter of 2024 increased by $11.1 million to $34.7 million, up from $23.6 million in the first quarter of 2023.

Free Cash Flow used in the first quarter of 2024 was ($45.7) million, compared to Free Cash Flow used in the first quarter of 2023 of $(24.3) million.

(1)  Cash flow for the three months ended April 1, 2023 includes the Australasia segment.

Full Year 2024 Guidance

JELD-WEN is lowering its 2024 revenue guidance to a range of $3.9 to $4.1 billion which reflects Core Revenues that are down 5% to 9% compared to 2023. The Company’s new guidance range reflects a softening macro-environment across the company’s portfolio of products and geographies in North America and Europe.

Further, and driven primarily by the updated demand outlook, the Company now expects that 2024 Adjusted EBITDA will be within the range of $340 to $380 million.

Due to the reduced Adjusted EBITDA guidance, the Company now expects 2024 operating cash flow to be approximately $225 million compared to the previous outlook of approximately $250 million. As part of the Company’s plan to improve its financial results, JELD-WEN expects to use a portion of 2024 operating cash flows to invest in itself with capital expenditures of approximately 4% of sales as well as non-recurring cash expenses of approximately $100 million.

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About JELD-WEN Holding, Inc.

JELD-WEN Holding, Inc. (NYSE: JELD) is a leading global designer, manufacturer and distributor of high-performance interior and exterior doors, windows, and related building products serving the new construction and repair and remodeling sectors. Based in Charlotte, North Carolina, the company operates facilities in 15 countries in North America and Europe and employs approximately 18,000 associates dedicated to bringing beauty and security to the spaces that touch our lives. The JELD-WEN family of brands includes JELD-WEN® worldwide, LaCantina™ and VPI™ in North America, and Swedoor® and DANA® in Europe.  For more information, visit corporate.JELD-WEN.com or follow LinkedIn.

Contact:

Caryn Klebba – Head of Global Public Relations – mediana@jeldwen.com – (704) 807-1275

Source: JELD-WEN Holding, Inc.