JELD-WEN Reports Second Quarter 2023 Results and Updates Full-Year Guidance
Second Quarter Highlights
- Net revenues from continuing operations of
decreased$1,125.8 million 4.5% in the second quarter driven by a (4% ) decline in Core Revenue. The Core Revenue decline was driven by (11% ) lower volume/mix partially offset by +7% price realization. - Net income from continuing operations was
or$22.5 million per share, compared to net income from continuing operations of$0.26 or$35.0 million per share during the same quarter a year ago. Operating income margin was$0.40 5.0% and4.1% for the quarters ended July 1, 2023 and June 25, 2022, respectively. - Adjusted EPS from continuing operations was
, compared to Adjusted EPS of$0.44 in the same quarter a year ago. Adjusted EPS includes net after-tax charges of$0.45 or$15.3 million per share, compared to net after-tax charges of$0.18 or$4.6 million per share during the same quarter a year ago.$0.05 - Adjusted EBITDA from continuing operations was
, compared to$108.9 million during the same quarter a year ago. Adjusted EBITDA Margin from continuing operations increased by 50 basis points year-over-year to$108.3 million 9.7% . - On July 2, 2023, the Company completed the sale of its
Australasia segment (previously announced on April 17, 2023) for approximately in net proceeds. On August 3, 2023, the Company repaid$446 million of senior notes funded by the divestiture proceeds.$450 million
"In the second quarter, our global associates continued to execute against our near-term goals of simplifying and strengthening JELD-WEN while improving profitability and generating strong cash flow," said Chief Executive Officer William J. Christensen. "While our end markets remained dynamic with volume declining in line with our expectations, we achieved year-over-year improvements in both margin and cash flow. In addition, we remained focused on delivering on our commitments including closing the sale of our
Christensen continued, "For the remainder of 2023, we expect continued macroeconomic uncertainty and weak demand across our markets that we are mitigating with ongoing cost reductions. As our second quarter results were above our expectations, we are narrowing the ranges and raising the midpoints of our 2023 Revenue and Adjusted EBITDA guidance."
Second Quarter 2023 Results (Continuing Operations)
Net revenue for the three months ended July 1, 2023 decreased
Net income was
Earnings per share ("EPS") for the second quarter was
Adjusted EBITDA from continuing operations increased
On a segment basis for the second quarter of 2023, compared to the same period last year:
North America - Net revenue decreased , or ($22.0 million 2.6% ), to , driven by a ($817.1 million 2% ) decline in Core Revenue which was due to lower volume/mix (8% ) partially offset by increased price realization +6% . Net income decreased to$18.6 million . Operating income margin was$51.3 million 9.1% for the quarter ended July 1, 2023 and8.4% for the quarter ended June 25, 2022. Adjusted EBITDA from continuing operations increased to$15.3 million , while Adjusted EBITDA Margin from continuing operations increased 220 basis points to$108.8 million 13.3% .Europe - Net revenue decreased , or ($31.3 million 9.2% ), to , due to a ($308.7 million 9% ) decline in Core Revenue. Core Revenue declined due to lower volume/mix (17% ) partially offset by price realization of +8% . Net income increased to$7.6 million . Operating income margin was$10.7 million 4.9% for the quarter ended July 1, 2023 and1.7% for the quarter ended June 25, 2022. Adjusted EBITDA from continuing operations increased to$3.9 million , while Adjusted EBITDA Margin from continuing operations increased by 180 basis points to$23.9 million 7.7% .
Cash Flow(1)
Net cash flow provided by operations was
Capital expenditures in the first half of 2023 increased by
Free Cash Flow provided in the first half of 2023 was
(1) Cash flow includes the
Updated Full Year 2023 Guidance (Continuing Operations)
JELD-WEN is raising its guidance to reflect the solid second quarter performance.
The Company now expects 2023 net revenue of
Further, the Company now expects 2023 Adjusted EBITDA from continuing operations to be within the range of
Revenue | Adjusted EBITDA from | |
May 2023 Guidance | ||
Updated Guidance |
Although the Company believes the assumptions reflected in the range of guidance are reasonable, actual results could vary substantially given the uncertainty regarding the future performance of the global economy, the continuing conflict in
Conference Call Information
JELD-WEN management will host a conference call on August 8, 2023, at 8 a.m. ET, 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 https://investors.jeld-wen.com, or by dialing 888-330-2446 from
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 https://investors.jeld-wen.com.
Note: See "Non-GAAP Financial Information" section for definitions and reconciliation of non-GAAP financial measures. |
About JELD-WEN Holding, Inc.
JELD-WEN 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. Headquartered in
Investor Relations Contact:
James Armstrong
Vice President, Investor Relations
704-378-5731
jarmstrong@jeldwen.com
Media Contact:
Colleen Penhall
Vice President, Corporate Communications
980-322-2681
cpenhall@jeldwen.com
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are generally identified by the use of forward-looking terminology, including the terms "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "likely," "may," "plan," "possible," "potential," "predict," "project," "should," "target," "will," "would" and, in each case, their negative or other various or comparable terminology. All statements other than statements of historical facts are forward-looking statements, including statements regarding our business strategies and ability to execute on our plans, market potential, future financial performance, customer demand, the potential of our categories, brands and innovations, the impact of our footprint rationalization and modernization program, the impact of acquisitions and divestitures on our business and our ability to maximize value and integrate operations, our pipeline of productivity projects, the estimated impact of tax reform on our results, litigation outcomes, and our expectations, beliefs, plans, objectives, prospects, assumptions, or other future events, all of which involve risks and uncertainties that could cause actual results to differ materially. For a discussion of these risks and uncertainties, please refer to our Annual Report on Form 10-K for the year ended December 31, 2022, Quarterly Reports on Form 10-Q filed in 2023 and our other filings with the
The forward-looking statements included in this release are made as of the date hereof, and we undertake no obligation to update any forward-looking statements, except as required by law.
Non-GAAP Financial Information
This press release presents certain "non-GAAP" financial measures, including Adjusted EBITDA from continuing operations, Adjusted EBITDA Margin from continuing operations, Adjusted Net Income from continuing operations, Adjusted EPS from continuing operations, Free Cash Flow, and Net Debt Leverage. The components of these non-GAAP measures are computed by using amounts that are determined in accordance with accounting principles generally accepted in
Other companies may compute these measures differently. The non-
We use Adjusted EBITDA from continuing operations, Adjusted EBITDA Margin from continuing operations, Adjusted Net Income from continuing operations, 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 from continuing operations and Adjusted EBITDA Margin from continuing operations are helpful in highlighting trends because they exclude certain items 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 from continuing operations and Adjusted EBITDA Margin from continuing operations to measure our financial performance in reporting our results to our Board of Directors. Further, our executive incentive compensation is based in part on Adjusted EBITDA from continuing operations. Adjusted EBITDA from continuing operations 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 from continuing operations as income (loss) from continuing operations, net of tax, adjusted for the following items: income tax expense (benefit); depreciation and amortization; interest expense, net; and certain special items consisting of non-recurring legal and professional expenses and settlements; restructuring and asset related charges; facility closure, consolidation, and other related costs and adjustments; M&A related costs; share-based compensation expense; non-cash foreign exchange transaction/translation (income) loss; and other special items.
Adjusted Net Income from continuing operations represents net income from continuing operations adjusted for the after-tax impact of certain special items used to calculate Adjusted EBITDA from continuing operations as described above. Where applicable, the specifically identified items are tax effected at the applicable jurisdictional tax rate and tax expense is adjusted to remove the effect of discrete tax items.
Adjusted EPS from continuing operations represents net income from continuing operations per diluted share adjusted to exclude the estimated per share impact of the same specifically identified items used to calculate Adjusted Net Income from continuing operations as described above.
Adjusted EBITDA Margin from continuing operations represents Adjusted EBITDA from continuing operations as a percentage of net revenues.
We present several financial metrics in "Core" terms, which exclude the impact of foreign exchange, acquisitions and divestitures completed in the last twelve months. We define Core Revenue as net revenue excluding the impact of foreign exchange, and acquisitions and divestitures completed in the last twelve months. The use of "Core" metrics assists management, investors, and analysts in understanding the organic performance of the operations.
We present Free Cash Flow because we believe this metric assists investors and analysts in determining the quality of our earnings. Free Cash Flow is defined as net cash (used in) provided by operating activities less capital expenditures (including purchases of intangible assets). Free Cash Flow should not be considered alternatives to net cash (used in) provided by operating activities as a liquidity measure. We also present Net Debt Leverage because it is a key financial metric that is used by management to assess the balance sheet risk of the Company. We define Net Debt Leverage as Net Debt (total principal debt outstanding less unrestricted cash) divided by Adjusted EBITDA from continuing operations for the last twelve month period.
Due to rounding, numbers presented throughout this release 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, except share and per share data) | ||||||
Three Months Ended | ||||||
July 1, 2023 | June 25, 2022 | % Variance | ||||
Net revenues | $ 1,125.8 | $ 1,179.2 | (4.5) % | |||
Cost of sales | 900.2 | 972.5 | (7.4) % | |||
Gross margin | 225.6 | 206.6 | 9.2 % | |||
Selling, general and administrative | 162.5 | 152.4 | 6.6 % | |||
Restructuring and asset related charges | 6.8 | 5.3 | 29.4 % | |||
Operating income | 56.3 | 48.9 | 15.0 % | |||
Interest expense, net | 20.9 | 20.2 | 3.3 % | |||
Other expense (income), net | 2.2 | (17.1) | (112.6) % | |||
Income from continuing operations before taxes | 33.3 | 45.8 | (27.4) % | |||
Income tax expense | 10.8 | 10.9 | (0.9) % | |||
Income from continuing operations, net of tax | 22.5 | 35.0 | (35.6) % | |||
Income from discontinued operations, net of tax | 15.8 | 10.9 | 45.2 % | |||
Net income | $ 38.3 | $ 45.8 | (16.5) % | |||
Diluted Net income per share from continuing operations | $ 0.26 | $ 0.40 | ||||
Diluted Net income per share from discontinued operations | 0.18 | 0.12 | ||||
Diluted Net income per share | $ 0.45 | $ 0.52 | ||||
Diluted Shares | 85,764,785 | 87,967,049 | ||||
Other financial data: | ||||||
Operating income margin | 5.0 % | 4.1 % | ||||
Adjusted EBITDA from continuing operations (1) | $ 108.9 | $ 108.3 | 0.5 % | |||
Adjusted EBITDA Margin from continuing operations (1) | 9.7 % | 9.2 % |
(1) | Adjusted EBITDA from continuing operations and Adjusted EBITDA Margin from continuing operations are financial measures that are not calculated in accordance with GAAP. For a discussion of our presentation of Adjusted EBITDA from continuing operations and Adjusted EBITDA Margin from continuing operations, see above under the heading "Non-GAAP Financial Information." |
JELD-WEN Holding, Inc.
Consolidated Statements of Operations (Unaudited) (In millions, except share and per share data) | ||||||
Six Months Ended | ||||||
July 1, 2023 | June 25, 2022 | % Variance | ||||
Net revenues | $ 2,206.3 | $ 2,224.8 | (0.8) % | |||
Cost of sales | 1,788.9 | 1,846.5 | (3.1) % | |||
Gross margin | 417.3 | 378.3 | 10.3 % | |||
Selling, general and administrative | 315.2 | 320.0 | (1.5) % | |||
Restructuring and asset related charges, net | 16.1 | 5.2 | 206.6 % | |||
Operating income | 86.0 | 53.0 | 62.3 % | |||
Interest expense, net | 42.3 | 38.5 | 9.9 % | |||
Other income, net | (1.5) | (26.2) | (94.2) % | |||
Income from continuing operations before taxes | 45.2 | 40.6 | 11.3 % | |||
Income tax expense | 14.2 | 9.2 | 54.0 % | |||
Income from continuing operations, net of tax | 31.0 | 31.4 | (1.3) % | |||
Income from discontinued operations, net of tax | 22.4 | 13.9 | 61.3 % | |||
Net income | $ 53.4 | $ 45.3 | 17.9 % | |||
Diluted Net income per share from continuing operations | $ 0.36 | $ 0.35 | ||||
Diluted Net income per share from discontinued operations | 0.26 | 0.16 | ||||
Diluted Net income per share | $ 0.63 | $ 0.51 | ||||
Diluted Shares | 85,417,344 | 89,557,956 | ||||
Other financial data: | ||||||
Operating income margin | 3.9 % | 2.4 % | ||||
Adjusted EBITDA from continuing operations(1) | $ 188.2 | $ 176.3 | 6.7 % | |||
Adjusted EBITDA Margin from continuing operations (1) | 8.5 % | 7.9 % |
(1) | Adjusted EBITDA from continuing operations and Adjusted EBITDA Margin from continuing operations are financial measures that are not calculated in accordance with GAAP. For a discussion of our presentation of Adjusted EBITDA from continuing operations and Adjusted EBITDA Margin from continuing operations, see above under the heading "Non-GAAP Financial Information." |
JELD-WEN Holding, Inc.
Consolidated Balance Sheets (Unaudited) (In millions, except share and per share data) | |||
July 1, 2023 | December 31, 2022 | ||
ASSETS | |||
Current assets | |||
Cash and cash equivalents | $ 188.9 | $ 164.5 | |
Restricted cash | 0.6 | 1.5 | |
Accounts receivable, net | 596.3 | 531.2 | |
Inventories | 547.8 | 594.5 | |
Other current assets | 65.0 | 73.5 | |
Assets held for sale | 132.9 | 125.7 | |
Current assets of discontinued operations | 230.7 | 204.7 | |
Total current assets | 1,762.2 | 1,695.6 | |
Property and equipment, net | 628.9 | 642.0 | |
Deferred tax assets | 182.7 | 182.2 | |
Goodwill | 383.7 | 382.0 | |
Intangible assets, net | 140.2 | 148.1 | |
Operating lease assets, net | 126.5 | 129.0 | |
Other assets | 29.0 | 25.8 | |
Non-current assets of discontinued operations | 292.7 | 296.8 | |
Total assets | $ 3,545.8 | $ 3,501.4 | |
LIABILITIES AND EQUITY | |||
Current liabilities | |||
Accounts payable | $ 313.5 | $ 287.0 | |
Accrued payroll and benefits | 136.3 | 107.0 | |
Accrued expenses and other current liabilities | 242.6 | 247.9 | |
Current maturities of long-term debt | 47.3 | 34.1 | |
Liabilities held for sale | 7.6 | 6.0 | |
Current liabilities of discontinued operations | 109.9 | 104.6 | |
Total current liabilities | 857.2 | 786.6 | |
Long-term debt | 1,638.7 | 1,712.8 | |
Unfunded pension liability | 34.3 | 31.1 | |
Operating lease liability | 101.3 | 105.1 | |
Deferred credits and other liabilities | 89.5 | 95.9 | |
Deferred tax liabilities | 7.8 | 7.9 | |
Non-current liabilities of discontinued operations | 34.7 | 38.4 | |
Total liabilities | 2,763.5 | 2,777.8 | |
Shareholders' equity | |||
Preferred Stock, par value | — | — | |
Common Stock: 900,000,000 shares authorized, par value | 0.9 | 0.8 | |
Additional paid-in capital | 743.3 | 734.9 | |
Retained earnings | 183.9 | 130.5 | |
Accumulated other comprehensive loss | (145.7) | (142.6) | |
Total shareholders' equity | 782.4 | 723.5 | |
Total liabilities and shareholders' equity | $ 3,545.8 | $ 3,501.4 |
JELD-WEN Holding, Inc.
Consolidated Statements of Cash Flows (Unaudited) (In millions) | ||||
Six Months Ended | ||||
July 1, 2023 | June 25, 2022 | |||
OPERATING ACTIVITIES | ||||
Net income | $ 53.4 | $ 45.3 | ||
Adjustments to reconcile net income to cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 71.8 | 65.1 | ||
Deferred income taxes | (0.9) | (2.2) | ||
Net loss on disposition of assets | 0.1 | 0.2 | ||
Adjustment to carrying value of assets | 3.2 | 0.5 | ||
Amortization of deferred financing costs | 1.6 | 1.5 | ||
Stock-based compensation | 9.7 | 11.3 | ||
Amortization of | 0.3 | 0.7 | ||
Recovery of cost from interest received on impaired notes | (1.7) | (13.4) | ||
Other items, net | (8.0) | 27.2 | ||
Net change in operating assets and liabilities: | ||||
Accounts receivable | (75.9) | (170.1) | ||
Inventories | 50.1 | (126.9) | ||
Other assets | 6.7 | (32.2) | ||
Accounts payable and accrued expenses | 44.5 | 37.6 | ||
Change in short term and long-term tax liabilities | (1.4) | (10.3) | ||
Net cash provided by (used in) operating activities | 153.4 | (165.7) | ||
INVESTING ACTIVITIES | ||||
Purchases of property and equipment | (42.0) | (31.5) | ||
Proceeds from sale of property and equipment | 0.4 | 0.2 | ||
Purchase of intangible assets | (5.0) | (3.3) | ||
Recovery of cost from interest received on impaired notes | 1.7 | 13.4 | ||
Cash received for notes receivable | 0.1 | 0.1 | ||
Cash received from insurance proceeds | 3.2 | — | ||
Change in securities for deferred compensation plan | (0.7) | (0.2) | ||
Net cash used in investing activities | (42.2) | (21.4) | ||
FINANCING ACTIVITIES | ||||
Change in long-term debt | (70.3) | 186.6 | ||
Common stock issued for exercise of options | 0.1 | 2.0 | ||
Common stock repurchased | — | (105.2) | ||
Payments to tax authorities for employee share-based compensation | (0.6) | (2.4) | ||
Net cash (used in) provided by financing activities | (70.8) | 81.1 | ||
Effect of foreign currency exchange rates on cash | 2.2 | (17.0) | ||
Net increase (decrease) in cash and cash equivalents | 42.6 | (123.0) | ||
Cash, cash equivalents and restricted cash, beginning | 220.9 | 396.9 | ||
Cash, cash equivalents and restricted cash, ending | $ 263.4 | $ 273.9 | ||
Balances included in the Consolidated Balance Sheets: | ||||
Cash, cash equivalents, and restricted cash | $ 189.6 | $ 243.2 | ||
Cash and cash equivalents included in current assets of discontinued operations | 73.9 | 30.7 | ||
Cash and cash equivalents at end of period | $ 263.4 | $ 273.9 |
JELD-WEN Holding, Inc.
Reconciliation of Non-GAAP Financial Measures (Unaudited) (In millions) | |||||||
Three Months Ended | Six Months Ended | ||||||
July 1, 2023 | June 25, 2022 | July 1, 2023 | June 25, 2022 | ||||
Income from continuing operations, net of tax | $ 22.5 | $ 35.0 | $ 31.0 | $ 31.4 | |||
Income tax expense | 10.8 | 10.9 | 14.2 | 9.2 | |||
Depreciation and amortization(1) | 38.2 | 27.6 | 66.6 | 55.3 | |||
Interest expense, net | 20.9 | 20.2 | 42.3 | 38.5 | |||
Special items: | |||||||
Legal and professional expenses and settlements(2) | 4.4 | 0.7 | 6.2 | 2.5 | |||
Restructuring and asset related charges(3) | 6.8 | 5.3 | 16.1 | 5.2 | |||
Facility closure, consolidation, and other related costs and adjustments(4) | 1.3 | 5.1 | 2.6 | 5.2 | |||
M&A related costs(5) | 1.3 | 2.5 | 4.0 | 5.8 | |||
Share-based compensation expense(6) | 4.7 | 1.3 | 8.9 | 10.5 | |||
Non-cash foreign exchange transaction/translation loss (income)(7) | 0.4 | 3.1 | (1.2) | 7.0 | |||
Other special items (8) | (2.4) | (3.3) | (2.5) | 5.6 | |||
Adjusted EBITDA from continuing operations | $ 108.9 | $ 108.3 | $ 188.2 | $ 176.3 |
(1) | Depreciation and amortization expense in the three and six months ended July 1, 2023 includes accelerated depreciation of |
(2) | Legal and professional expenses and settlements primarily related to litigation and transformation initiatives. |
(3) | Represents severance, accelerated depreciation charges, and other expenses directly incurred as a result of restructuring events, including equipment relocation expenses. Restructuring charges related to closure of |
(4) | Facility closure, consolidation, and other related costs and adjustments primarily related to winding down certain facilities scheduled to close in 2023 as well as certain facilities closed in 2022. |
(5) | M&A related costs consists primarily of legal and professional expenses related to the potential disposition of Towanda. |
(6) | Represents non-cash equity-based compensation expense related to the issuance of share-based awards. |
(7) | Non-cash foreign exchange transaction/translation loss (income) primarily consists of losses (gains) associated with fair value adjustments of foreign currency derivatives and revaluation of intercompany balances. |
(8) | Other special items not core to ongoing business activity include: (i) in the three months ended July 1, 2023 ( |
To conform with current period presentation, certain amounts in prior period information have been reclassified. |
Three Months Ended | Six Months Ended | |||||||
(amounts in millions, except share and per share data) | July 1, 2023 | June 25, 2022 | July 1, 2023 | June 25, 2022 | ||||
Income from continuing operations, net of tax | $ 22.5 | $ 35.0 | $ 31.0 | $ 31.4 | ||||
Special items:(1) | ||||||||
Legal and professional expenses and settlements | 4.4 | 0.7 | 6.2 | 2.5 | ||||
Restructuring and asset related charges | 6.8 | 5.3 | 16.1 | 5.2 | ||||
Facility closure, consolidation, and other related costs | 1.3 | 5.1 | 2.6 | 5.2 | ||||
M&A related costs | 1.3 | 2.5 | 4.0 | 5.8 | ||||
Share-based compensation expense | 4.7 | 1.3 | 8.9 | 10.5 | ||||
Non-cash foreign exchange transactions/translation loss | 0.4 | 3.1 | (1.2) | 7.0 | ||||
Other special items | (2.4) | (3.3) | (2.5) | 5.6 | ||||
Tax impact of special items(2) | (3.4) | (3.7) | (8.8) | (11.6) | ||||
Tax special items | 2.1 | (6.4) | 3.2 | (6.4) | ||||
Adjusted Net Income from continuing operations | $ 37.8 | $ 39.6 | $ 59.4 | $ 55.2 | ||||
Diluted income per share from continuing operations | $ 0.26 | $ 0.40 | $ 0.36 | $ 0.35 | ||||
Special items:(1) | ||||||||
Legal and professional expenses and settlements | 0.05 | 0.01 | 0.07 | 0.03 | ||||
Restructuring and asset related charges | 0.08 | 0.06 | 0.19 | 0.06 | ||||
Facility closure, consolidation, and other related costs | 0.01 | 0.06 | 0.03 | 0.06 | ||||
M&A related costs | 0.01 | 0.03 | 0.05 | 0.06 | ||||
Share-based compensation expense | 0.06 | 0.02 | 0.10 | 0.12 | ||||
Non-cash foreign exchange transactions/translation loss | 0.01 | 0.03 | (0.01) | 0.08 | ||||
Other special items | (0.03) | (0.04) | (0.03) | 0.06 | ||||
Tax impact of special items (2) | (0.04) | (0.04) | (0.10) | (0.13) | ||||
Tax special items | 0.02 | (0.07) | 0.04 | (0.07) | ||||
Adjusted Net Income per share from continuing operations | $ 0.44 | $ 0.45 | $ 0.70 | $ 0.62 | ||||
Weighted average diluted shares used in adjusted EPS | 85,764,785 | 87,967,049 | 85,417,344 | 89,557,956 |
Adjusted net income from continuing operations per share may not sum due to rounding. | |
(1) | Refer to the calculation of Adjusted EBITDA from continuing operations for the definitions of the Special items listed above. |
(2) | Except as otherwise noted, adjustments to net income and net income per share are tax-effected at the jurisdictional statutory tax rate. |
To conform with current period presentation, certain amounts in prior period information have been reclassified. |
Three Months Ended July 1, 2023 | ||||||||||
(amounts in millions) | North | Total | Corporate | Total | ||||||
Income (loss) from continuing operations, net of tax | $ 51.3 | $ 10.7 | $ 61.9 | $ (39.4) | $ 22.5 | |||||
Income tax expense (benefit) | 21.1 | 3.1 | 24.2 | (13.5) | 10.8 | |||||
Depreciation and amortization(1) | 27.7 | 7.5 | 35.2 | 3.0 | 38.2 | |||||
Interest expense, net | 0.8 | 0.4 | 1.2 | 19.7 | 20.9 | |||||
Special items:(1) | ||||||||||
Legal and professional expenses and settlements | — | 2.4 | 2.4 | 2.0 | 4.4 | |||||
Restructuring charges and asset related charges | 5.7 | 0.5 | 6.2 | 0.6 | 6.8 | |||||
Facility closure, consolidation, and other related costs and adjustments | — | 1.3 | 1.3 | — | 1.3 | |||||
M&A related costs | 0.3 | — | 0.3 | 0.9 | 1.3 | |||||
Share-based compensation expense | 1.5 | 0.5 | 2.0 | 2.8 | 4.7 | |||||
Non-cash foreign exchange transaction/translation (income) loss | (0.1) | 0.6 | 0.4 | — | 0.4 | |||||
Other special items | 0.6 | (3.0) | (2.4) | — | (2.4) | |||||
Adjusted EBITDA from continuing operations | $ 108.8 | $ 23.9 | $ 132.7 | $ (23.8) | $ 108.9 |
(1) Refer to the calculation of Adjusted EBITDA from continuing operations for the definitions of the Special items listed above. |
Three Months Ended June 25, 2022 | ||||||||||
(amounts in millions) | North | Total | Corporate | Total | ||||||
Income (loss) from continuing operations, net of tax | $ 69.8 | $ 3.1 | $ 73.0 | $ (38.0) | $ 35.0 | |||||
Income tax expense(1) | 2.0 | 3.1 | 5.1 | 5.7 | 10.9 | |||||
Depreciation and amortization | 16.9 | 7.6 | 24.5 | 3.2 | 27.6 | |||||
Interest expense, net | 0.8 | 2.1 | 2.8 | 17.4 | 20.2 | |||||
Special items:(2) | ||||||||||
Legal and professional expenses and settlements | — | — | — | 0.7 | 0.7 | |||||
Restructuring charges and asset-related charges | 4.8 | 0.5 | 5.3 | — | 5.3 | |||||
Facility closure, consolidation, and other related costs and adjustments | — | 5.1 | 5.1 | — | 5.1 | |||||
M&A related costs | 0.1 | — | 0.1 | 2.4 | 2.5 | |||||
Share-based compensation expense | — | 0.4 | 0.5 | 0.9 | 1.3 | |||||
Non-cash foreign exchange transaction/translation loss (income) | 0.1 | (0.6) | (0.5) | 3.5 | 3.1 | |||||
Other special items | (1.0) | (1.4) | (2.4) | (0.9) | (3.3) | |||||
Adjusted EBITDA from continuing operations | $ 93.5 | $ 20.0 | $ 113.5 | $ (5.2) | $ 108.3 |
(1) | Income tax expense in Corporate and unallocated costs includes the tax impact of US Operations. |
(2) | Refer to the calculation of Adjusted EBITDA from continuing operations for the definitions of the Special items listed above. |
To conform with current period presentation, certain amounts in prior period information have been reclassified. |
Six Months Ended July 1, 2023 | ||||||||||
(amounts in millions) | North | Total | Corporate | Total | ||||||
Income (loss) from continuing operations, net of tax | $ 86.5 | $ 18.0 | $ 104.5 | $ (73.5) | $ 31.0 | |||||
Income tax expense (benefit) | 35.7 | 4.5 | 40.2 | (25.9) | 14.2 | |||||
Depreciation and amortization | 45.5 | 14.9 | 60.4 | 6.1 | 66.6 | |||||
Interest expense, net | 3.6 | 0.5 | 4.1 | 38.2 | 42.3 | |||||
Special items:(1) | ||||||||||
Legal and professional expenses and settlements | — | 2.5 | 2.5 | 3.8 | 6.2 | |||||
Restructuring charges and asset-related charges | 13.5 | 1.8 | 15.3 | 0.8 | 16.1 | |||||
Facility closure, consolidation, and other related costs and adjustments | — | 2.6 | 2.6 | — | 2.6 | |||||
M&A related costs | 0.6 | — | 0.6 | 3.4 | 4.0 | |||||
Share-based compensation expense | 2.5 | 1.0 | 3.4 | 5.4 | 8.9 | |||||
Non-cash foreign exchange transaction/translation (income) loss | (0.3) | (1.2) | (1.5) | 0.3 | (1.2) | |||||
Other special items | 0.6 | (3.1) | (2.6) | 0.1 | (2.5) | |||||
Adjusted EBITDA from continuing operations | $ 188.0 | $ 41.5 | $ 229.5 | $ (41.3) | $ 188.2 |
(1) Refer to the calculation of Adjusted EBITDA from continuing operations for the definitions of the Special items listed above. |
Six Months Ended June 25, 2022 | ||||||||||
(amounts in millions) | North | Total | Corporate | Total | ||||||
Income (loss) from continuing operations, net of tax | $ 107.9 | $ 2.5 | $ 110.4 | $ (79.0) | $ 31.4 | |||||
Income tax expense(1) | 3.0 | 4.5 | 7.5 | 1.7 | 9.2 | |||||
Depreciation and amortization | 33.5 | 15.5 | 49.0 | 6.3 | 55.3 | |||||
Interest expense, net | 1.9 | 3.9 | 5.8 | 32.7 | 38.5 | |||||
Special items:(2) | ||||||||||
Legal and professional expenses and settlements | — | — | — | 2.5 | 2.5 | |||||
Restructuring charges and asset-related charges | 4.8 | 0.5 | 5.3 | — | 5.2 | |||||
Facility closure, consolidation, and other related costs and adjustments | — | 5.2 | 5.2 | — | 5.2 | |||||
M&A related costs | 0.3 | — | 0.3 | 5.5 | 5.8 | |||||
Share-based compensation expense | 2.1 | 1.3 | 3.4 | 7.2 | 10.5 | |||||
Non-cash foreign exchange transaction/translation loss (income) | 0.4 | (4.2) | (3.8) | 10.8 | 7.0 | |||||
Other special items | 6.7 | 5.5 | 12.2 | (6.6) | 5.6 | |||||
Adjusted EBITDA from continuing operations | $ 160.6 | $ 34.7 | $ 195.3 | $ (19.0) | $ 176.3 |
(1) | Income tax expense in Corporate and unallocated costs includes the tax impact of US Operations. |
(2) | Refer to the calculation of Adjusted EBITDA from continuing operations for the definitions of the Special items listed above. |
Six Months Ended | ||||
July 1, 2023 | June 25, 2022 | |||
Net cash provided by (used in) operating activities (1) | $ 153.4 | $ (165.7) | ||
Less capital expenditures (1) | 46.9 | 34.8 | ||
Free Cash Flow (1)(2) | $ 106.4 | $ (200.5) |
(1) | Cash flow information is inclusive of cash flows from the |
(2) | Free Cash Flow is a financial measure that is not calculated in accordance with GAAP. For a discussion of our presentation of Free Cash Flow, see above under the heading "Non-GAAP Financial Information". |
July 1, 2023 | December 31, 2022 | |||
Total debt | $ 1,686.0 | $ 1,746.9 | ||
Less cash and cash equivalents | 188.9 | 164.5 | ||
Net Debt (1) | $ 1,497.1 | $ 1,582.4 | ||
Divided by trailing twelve months Adjusted EBITDA from continuing operations (2) | 360.7 | 348.8 | ||
Net Debt Leverage (1) | 4.1x | 4.5x |
(1) | Net Debt and Net Debt Leverage are financial measures that are not calculated in accordance with GAAP. For a discussion of our presentation of Net Debt Leverage, see above under the heading "Non-GAAP Financial Information". |
(2) | Trailing twelve months Adjusted EBITDA from continuing operations for both periods. Adjusted EBITDA from continuing operations is a financial measure that is not calculated in accordance with GAAP. For a discussion of our presentation of Adjusted EBITDA from continuing operations, see above under the heading "Non-GAAP Financial Information". |
Segment Results (Unaudited) (In millions) | ||||||
Three Months Ended | ||||||
July 1, 2023 | June 25, 2022 | |||||
Net revenues from external customers | % Variance | |||||
$ 817.1 | $ 839.1 | (2.6) % | ||||
308.7 | 340.0 | (9.2) % | ||||
Total Consolidated | $ 1,125.8 | $ 1,179.2 | (4.5) % | |||
Adjusted EBITDA from continuing operations (1) | ||||||
$ 108.8 | $ 93.5 | 16.4 % | ||||
23.9 | 20.0 | 19.1 % | ||||
Corporate and unallocated costs | (23.8) | (5.2) | 356.4 % | |||
Total Consolidated | $ 108.9 | $ 108.3 | 0.5 % |
(1) | Adjusted EBITDA from continuing operations is a financial measure that is not calculated in accordance with GAAP. For a discussion of our presentation of Adjusted EBITDA from continuing operations, see above under the heading "Non-GAAP Financial Information". |
Six Months Ended | ||||||
July 1, 2023 | June 25, 2022 | |||||
Net revenues from external customers | % Variance | |||||
$ 1,585.1 | $ 1,561.5 | 1.5 % | ||||
621.1 | 663.3 | (6.4) % | ||||
Total Consolidated | $ 2,206.3 | $ 2,224.8 | (0.8) % | |||
Adjusted EBITDA from continuing operations (1) | ||||||
$ 188.0 | $ 160.6 | 17.1 % | ||||
41.5 | 34.7 | 19.5 % | ||||
Corporate and unallocated costs | (41.3) | (19.0) | 117.5 % | |||
Total Consolidated | $ 188.2 | $ 176.3 | 6.7 % |
(1) | Adjusted EBITDA from continuing operations is a financial measure that is not calculated in accordance with GAAP. For a discussion of our presentation of Adjusted EBITDA from continuing operations, see above under the heading "Non-GAAP Financial Information". |
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SOURCE JELD-WEN Holding, Inc.