JELD-WEN Reports Second Quarter 2024 Results

JELD-WEN Holding, Inc. (“JELD-WEN” or the “Company”) announced results for the three and six months ended June 29, 2024. 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.

Second Quarter Highlights

• Net revenues from continuing operations of $986.0 million decreased (12.4%) in the second quarter driven by a (12%) Core Revenue decline as a result of (12%) lower volume/mix due to weak macro-economic conditions and a continued demand shift.
• Net loss from continuing operations was ($18.5) million or ($0.22) per share, compared to net income from continuing operations of $22.5 million, or $0.26 per share during the same quarter a year ago. Operating income margin was 0.5% and 5.0% for the quarters ended June 29, 2024 and July 1, 2023, respectively.
• Adjusted EBITDA from continuing operations was $84.8 million, a decrease of ($24.0) million compared to $108.9 million during the same quarter a year ago. Adjusted EBITDA Margin from continuing operations was 8.6%, a decrease of (110) basis points year-over-year as lower volume/mix, negative price/cost and increased operating expenses related to inventory write-down associated with plant closures was only partially offset by lower SG&A expense and improved productivity.
• Opportunistically repurchased 1.6 million shares at an average price of $15.18.

“We continue to make strides in our transformation journey, positioning JELD-WEN for improved performance,” said Chief Executive Officer William J. Christensen. “In the second quarter, even as market demand weakened further, we made notable progress in streamlining our operations. I am proud of how our associates stayed focused on meeting our goals and diligently implementing the necessary foundational changes.”

Second Quarter 2024 Results

Net revenues from continuing operations for the three months ended June 29, 2024 was $986.0 million, a decrease of ($139.8) million, or (12.4%), compared to $1,125.8 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 condition and demand shifting to lower priced products.

Net loss from continuing operations was ($18.5) million in the second quarter, compared to net income from continuing operations of $22.5 million in the same period last year, a decrease of ($41.0) million. The decrease was mostly driven by lower volume/mix, negative price/cost and increased costs to execute on JELD-WEN’s transformation journey, partially offset by lower SG&A expense and improved productivity. Adjusted Net Income from continuing operations for the second quarter was $29.4 million, a decrease of ($8.4) million compared to $37.8 million in the same period last year. 

Net loss per share from continuing operations for the second quarter was ($0.22), compared to EPS of $0.26 in the same quarter last year. Adjusted EPS from continuing operations for the second quarter was $0.34 compared to $0.44 in the same quarter last year. Adjusted EPS for the quarter ended June 29, 2024 excludes net after-tax charges of $47.9 million, or $0.55 per diluted share, associated mainly with costs to execute on the Company’s transformation journey. Adjusted EPS for the quarter ended July 1, 2023 excludes net after-tax charges of $15.3 million or $0.18 per diluted share.

Adjusted EBITDA from continuing operations was $84.8 million, a decline of ($24.0) million compared to $108.9 million during the same quarter last year. Adjusted EBITDA Margin from continuing operations was 8.6%, a decline of (110) basis points as lower volume/mix, negative price/cost and increased costs to execute on JELD-WEN’s transformation journey, partially offset by lower SG&A expense and improved productivity.

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

• North America – Net revenue was $710.6 million, a decline of ($106.5) million, or (13.0%), driven by a (13%) decline in Core Revenue due to (13%) lower volume/mix related to weakened market demand and a demand shift towards lower priced products. Net income was $30.7 million, a decline of ($20.6) million year-over-year. Operating income margin was 6.3% for the quarter ended June 29, 2024 and 9.1% for the quarter ended July 1, 2023. Adjusted EBITDA was $75.6 million, a decline of ($33.2) million while Adjusted EBITDA Margin decreased by (270) basis points to 10.6%.
• Europe – Net revenue was $275.4 million, a decline of ($33.2) million, or (10.8%), due to a (10%) decline in Core Revenue. Core Revenue declined due to lower volume/mix (12%) related to market softness across the region, partially offset by a 2% benefit from price realization. Net loss was ($5.0) million a decline of ($15.7) million year-over-year. Operating income margin was 2.2% for the quarter ended June 29, 2024 and 4.9% for the quarter ended July 1, 2023. Adjusted EBITDA was $20.4 million, a decline of ($3.4) million, while Adjusted EBITDA Margin decreased by (30) basis points to 7.4%.

Cash Flow⁽¹⁾

Net cash flow provided by operations was $40.4 million during the first half of 2024, a ($113.0) million decrease compared to net cash flow provided by operations of $153.4 million during the same period a year ago. The decreased operating cash flow was due to lower net income of ($99.6) million and a decline in changes in accrued expenses of ($37.9) million, both of which were partially offset by a $22.4 million improvement in cash flow associated with working capital.

Capital expenditures in the first half of 2024 increased by $27.2 million to $74.1 million, up from $46.9 million in the first half of 2023.

Free Cash Flow used in the first half of 2024 was ($33.8) million, compared to Free Cash Flow provided in the first half of 2023 of $106.4 million.

(1) Cash flow for the six months ended July 1, 2023 includes the Australasia segment.

Full Year 2024 Guidance

JELD-WEN is maintaining 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. Further, the Company continues to expect that 2024 Adjusted EBITDA will be within the range of $340 to $380 million. However, both of these metrics are currently trending towards the low end of the range due to increasing macroeconomic weakness. Due to this trend, along with a higher end-of-year inventory assumption, the Company is lowering its 2024 Operating Cash Flow guidance to approximately $200 million from $225 million previously.

For full second quarter results click here.

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.