JELD-WEN Holding, Inc. (NYSE:JELD) today announced results for
the three months and full year ended December 31, 2019, including
fourth quarter net revenues of $1.069 billion, net income of $7.8
million, adjusted EBITDA of $89.2 million, earnings per share
("EPS") of $0.08, and adjusted EPS of $0.24.
Highlights:
- Net revenues for the fourth quarter decreased 2.1%
year-over-year to $1.069 billion, unfavorably impacted by
sequential weakness in Australia residential new construction
demand and foreign currency
- Fourth quarter core revenue growth in North America of 1%
demonstrates improving North America residential new construction
demand
- Adjusted EBITDA for the fourth quarter decreased by $16.8
million, or 15.9%, year-over-year to $89.2 million; adjusted EBITDA
margin decreased by 130 basis points to 8.4%
- Cash flow from operations for the twelve months ended December
31, 2019 improved $83.0 million year-over-year to $302.7
million
- Outlook for 2020 includes net revenue growth of 1% to 4% and
adjusted EBITDA of $450 million to $495 million
“2019 was a pivotal year as we advanced deployment of the
JELD-WEN Excellence Model (JEM) across the enterprise and delivered
positive productivity, even as we faced significant market
headwinds in residential new construction demand in our North
America and Australasia segments," said Gary S. Michel, president
and chief executive officer. "During the year, we made significant
progress with our footprint rationalization and modernization
program and launched innovative new products to drive future
growth. Our 65% improvement in 2019 free cash flow demonstrates
that JEM has enhanced our working capital efficiency and improved
our quality of earnings.
"Our fourth quarter results were challenged by continued market
demand headwinds in Australasia and operational inefficiencies in
our North America segment. While I am pleased that we sequentially
improved our North America performance from the third quarter, I'm
disappointed that we did not return to margin expansion.
"Looking to 2020, we have visibility to several catalysts that
will drive core revenue growth and margin improvement. Demand
drivers in residential new construction are supportive of growth in
2020, with improving housing fundamentals in North America and
early signs of recovering demand in Australia later in the year.
Improved pricing, particularly in North America, will expand
margins and allow us to accelerate product and service innovation
for our customers. We also have good visibility to cost savings and
operational improvements from our healthy global pipeline of
productivity and footprint rationalization and modernization
projects."
Fourth Quarter 2019 Results
- Positive price/cost for the fifth consecutive quarter
- Australasia market demand volume headwinds sequentially worse
than third quarter
- Core adjusted EBITDA margins declined 140 basis points, driven
by decreases of 200 basis points in Australasia and 190 basis
points in North America, partially offset by an increase of 170
basis points in Europe
- Second consecutive quarter of margin improvement in Europe
segment
- North America margins primarily impacted by windows operations,
which sequentially improved from the third quarter
Net revenues for the three months ended December 31, 2019
decreased $23.2 million, or 2.1%, to $1.069 billion, compared to
$1.092 billion for the same period last year. The decrease in net
revenues was driven by a 2% decline in core revenues and a 2%
adverse impact from foreign exchange, partially offset by a 2%
positive impact from acquisitions. Core revenues, which exclude the
impact of foreign exchange and acquisitions completed in the last
twelve months, were impacted by a 4% headwind from unfavorable
volume/mix, partially offset by a 2% pricing benefit.
Net income was $7.8 million, compared to net income of $38.1
million in the same quarter last year, a decrease of $30.3 million.
The decrease in net income was primarily due to a higher effective
tax rate and lower gross profit from reduced volumes in each
geographic segment and cost inefficiencies in North America.
Adjusted net income for the fourth quarter was $24.1 million,
compared to $32.7 million in the same quarter last year, a decrease
of $8.6 million.
The effective book income tax rate in the quarter increased to
60.7%, primarily due to a greater proportion of foreign income
subject to the GILTI provisions of U.S. tax reform legislation and
certain discrete tax items. Excluding the impact of the GILTI tax
and discrete tax items specific to the period, the fourth quarter
effective book tax rate would have been approximately 27.4%.
EPS for the fourth quarter was $0.08, compared to $0.37 for the
same quarter last year, a decrease of $0.29. Adjusted EPS was
$0.24, compared to $0.32 a year ago.
Adjusted EBITDA decreased $16.8 million, or 15.9%, to $89.2
million, compared to the same quarter last year. Adjusted EBITDA
margins of 8.4% decreased by 130 basis points compared to the prior
year. Fourth quarter 2019 core adjusted EBITDA margins decreased by
140 basis points compared to the prior year, as improvement in
Europe was offset by core margin reduction in North America and
Australasia.
On a segment basis for the fourth quarter of 2019, compared to
the same period last year:
- North America - Net revenues increased $19.6 million, or
3.1%, to $642.4 million, due to a 1% increase in core revenues and
a 2% contribution from acquisitions. Core revenues increased due to
a 2% pricing benefit, partially offset by a 1% volume/mix headwind.
Adjusted EBITDA decreased $8.2 million, due to unfavorable
volume/mix as well as operational inefficiencies, partially offset
by positive pricing.
- Europe - Net revenues decreased $11.6 million, or 3.8%,
to $290.4 million, due to a 3% adverse impact from foreign exchange
and a 1% decrease in core revenues. Core revenues decreased
primarily due to a 2% decrease in volume/mix, partially offset by a
1% pricing benefit. Adjusted EBITDA increased $3.9 million, or
15.4%, to $29.4 million. Adjusted EBITDA margins increased 170
basis points to 10.1%.
- Australasia - Net revenues decreased $31.2 million, or
18.7%, to $135.7 million, due to a 15% decrease in core revenues
and a 4% unfavorable impact from foreign exchange. Core revenue
growth decreased primarily due to a 14% decrease in volume/mix.
Adjusted EBITDA decreased $7.4 million, primarily due to the
deleverage impact of volume/mix.
Full Year 2019 Results
- Net revenues decreased 1.3% year over year as positive
price/cost and contribution from acquisitions was more than offset
by significant volume/mix weakness in North America and
Australasia
- Core adjusted EBITDA margins declined by 80 basis points
primarily due to the deleverage impact of volume/mix headwinds,
partially offset by positive contributions from price/cost and net
productivity savings
Net revenues for the twelve months ended December 31, 2019
decreased $57.1 million, or 1.3%, to $4.290 billion, compared to
$4.347 billion for the same period last year. The decrease was
driven by a 3% headwind from foreign exchange and a 2% decrease in
core revenues, partially offset by a 4% contribution from
acquisitions. Net income decreased $78.9 million, or 55.6%, to
$63.0 million, compared to $141.9 million in the same period last
year. The decrease in net income was primarily due to lower gross
profit from reduced volume/mix and a significantly higher effective
tax rate. Adjusted EBITDA decreased $44.2 million, or 9.6%, to
$415.0 million, compared to $459.2 million in the same period last
year. Adjusted EBITDA margins decreased 90 basis points to 9.7%,
from 10.6% in the same period a year ago.
Cash Flow and Balance Sheet
- Cash flows from operations of $302.7 million in 2019 improved
by $83.0 million year-over-year, primarily due to an improvement in
working capital
- Free cash flow of $166.5 million in 2019 improved by $65.5
million year-over-year, primarily due to the increase in cash flows
from operations
Cash flows from operations totaled $302.7 million in 2019,
compared to cash flows from operations of $219.7 million in 2018.
The increase in cash flows generated from operations was primarily
due to an improvement in working capital and lower cash taxes. Free
cash flow in 2019 increased $65.5 million year-over-year to $166.5
million, from $101.0 million a year ago due primarily to the
increase in cash flows from operations, partially offset by a $17.5
million increase in capital expenditures.
Cash and cash equivalents as of December 31, 2019 were $226.0
million, compared to $117.0 million as of December 31, 2018. Total
debt as of December 31, 2019 was $1.517 billion, compared to $1.478
billion as of December 31, 2018.
The company repurchased $20.0 million of common stock in 2019;
however, the company did not repurchase any common stock during the
third and fourth quarters.
Outlook for 2020
- Net revenue growth expected to be within a range from 1% to
4%
- Adjusted EBITDA anticipated to be within the range from $450
million to $495 million
- Full year 2020 projected capital expenditures is expected to be
within the range of $135 million to $155 million
"I remain confident in our long-term 15% adjusted EBITDA margin
target and believe that 2020 will be an inflection point in
demonstrating significant progress towards this goal," said Gary S.
Michel, president and chief executive officer. "As our free cash
flow continues to improve, we will make disciplined investments,
strategic acquisitions, and share repurchases, while also ensuring
that we achieve sustained reduction in our net debt leverage
ratio."
Conference Call Information
JELD-WEN management will host a conference call on February 18,
2020, 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 (877)
396-4218 (domestic) or (647) 689-5631 (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
Certain statements in this press release are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995, including statements by our CEO and CFO and
statements regarding our business strategies and ability to execute
on our plans, market potential, future financial performance, the
potential of our categories, brands and innovations, the impact of
our footprint rationalization and modernization program, our
pipeline of productivity projects, the estimated impact of tax
reform on our results, litigation outcomes, our outlook for 2020,
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 2020
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
As previously reported, the statements of operations for the
three months and full year ended December 31,
2018 and for the full year ended December 31, 2019 include the
correction of certain errors and other accumulated misstatements as
described in Note 27 - Revision of Prior Period Financial
Statements of our Form 10-Q for the quarterly period ended June 29,
2019.
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 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 certain
items as presented in our reconciliation of non-GAAP, including the
after-tax impact of i) non-cash foreign currency (gains) losses,
ii) impairment and restructuring charges, iii) one-time non-cash
gains, and iv) other non-recurring expenses associated with mergers
and acquisitions 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. Non-GAAP
metrics should not be considered as alternatives to any other
measures derived in accordance with GAAP.
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)
Three Months Ended
December 31, 2019
December 31, 2018
% Variance
Net revenues
$
1,068.6
$
1,091.7
(2.1
)%
Cost of sales
868.2
867.4
0.1
%
Gross margin
200.4
224.4
(10.7
)%
Selling, general and administrative
158.5
163.7
(3.2
)%
Impairment and restructuring charges
4.2
8.0
(47.6
)%
Operating income
37.8
52.8
(28.4
)%
Interest expense, net
18.1
19.0
(4.9
)%
Other (income) expense
(0.1
)
(7.4
)
(98.4
)%
Income (loss) before taxes and equity
earnings
19.8
41.2
(51.8
)%
Income tax expense (benefit)
12.0
3.1
290.7
%
Income from continuing operations, net of
tax
7.8
38.1
(79.5
)%
Equity earnings of non-consolidated
entities
—
—
—
Net income
$
7.8
$
38.1
(79.5
)%
Other financial data:
Adjusted EBITDA(1)
$
89.2
$
106.1
(15.9
)%
Adjusted EBITDA Margin(1)
8.4
%
9.7
%
(1)
Adjusted EBITDA is a financial measure that is not calculated in
accordance with GAAP. For a discussion of our presentation of
Adjusted EBITDA and Adjusted EBITDA Margin, see above under the
heading “Non-GAAP Financial Information”.
Twelve Months Ended
December 31, 2019
December 31, 2018
% Variance
Net revenues
$
4,289.8
$
4,346.8
(1.3
)%
Cost of sales
3,417.2
3,428.3
(0.3
)%
Gross margin
872.5
918.5
(5.0
)%
Selling, general and administrative
660.6
734.2
(10.0
)%
Impairment and restructuring charges
21.6
17.3
24.4
%
Operating income
190.4
167.0
14.0
%
Interest expense, net
71.8
70.8
1.4
%
Other (income) expense
(1.4
)
(34.9
)
(96.0
)%
Income (loss) before taxes and equity
earnings
120.0
131.1
(8.4
)%
Income tax expense (benefit)
57.1
(10.1
)
(667.4
)%
Income from continuing operations, net of
tax
63.0
141.2
(55.4
)%
Equity earnings of non-consolidated
entities
—
0.7
(100.0
)%
Net income
$
63.0
$
141.9
(55.6
)%
Other financial data:
Adjusted EBITDA(1)
$
415.0
$
459.2
(9.6
)%
Adjusted EBITDA Margin(1)
9.7
%
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.
Selected Financial Data
(Unaudited)
(In millions)
December 31, 2019
December 31, 2018
Consolidated balance sheet
data:
Cash and cash equivalents
$
226.0
$
117.0
Accounts receivable, net
469.8
471.8
Inventories
505.1
508.5
Total current assets
1,243.3
1,146.6
Total assets
3,381.3
3,047.5
Accounts payable
295.0
250.0
Total current liabilities
768.8
672.2
Total debt
1,517.4
1,477.9
Total shareholders’ equity
812.1
761.6
Twelve Months Ended
Statement of cash flows data:
December 31, 2019
December 31, 2018
Net cash flow provided by (used in):
Operating activities
$
302.7
$
219.7
Investing activities
(184.9
)
(284.1
)
Financing activities
(6.4
)
(67.5
)
JELD-WEN Holding, Inc.
Reconciliation of Non-GAAP
Financial Measures (Unaudited)
(In millions)
Three Months Ended
Twelve Months Ended
December 31, 2019
December 31, 2018
December 31, 2019
December 31, 2018
Net income
$
7.8
$
38.1
$
63.0
$
141.9
Equity earnings of non-consolidated
entities
—
—
—
(0.7
)
Income tax expense
12.0
3.1
57.1
(10.1
)
Depreciation and amortization
34.2
34.8
134.0
125.1
Interest expense, net
18.1
19.0
71.8
70.8
Impairment and restructuring charges
(1)
4.2
8.0
22.7
17.3
Gain on previously held shares of equity
investment
—
—
—
(20.8
)
Loss (gain) on sale of property and
equipment
0.6
0.2
2.0
0.1
Share-based compensation expense
2.7
2.7
13.3
15.1
Non-cash foreign exchange
transaction/translation (income) loss
(0.2
)
(0.9
)
3.4
(1.3
)
Other items (2)
9.8
9.5
47.5
117.5
Other non-cash items (3)
(0.1
)
(8.4
)
0.3
3.9
Costs relating to debt restructuring and
debt refinancing
—
—
—
0.3
Adjusted EBITDA
$
89.2
$
106.1
$
415.0
$
459.2
(1)
Impairment and restructuring charges consist of (i) impairment and
restructuring charges that are included in our consolidated
statements of operations plus (ii) additional charges of $1.2 for
the year ended December 31, 2019. This additional charge is
primarily comprised of non-cash changes in inventory valuation
reserves, such as excess and obsolete reserves.
(2)
Other non-recurring items not core to ongoing business activity
include: (i) in the three months ended December 31, 2019 (1) $3.6
in facility closure and consolidation costs related to our facility
footprint rationalization program, (2) $3.2 in legal and
professional fees relating primarily to litigation, (3) $1.4 in
acquisition and integration costs (4) $0.8 in other miscellaneous
costs, and (5) $0.7 in equity compensation to employees in our
Australasia region; (ii) in the three months ended December 31,
2018 (1) $4.4 in acquisition and integration costs, (2) $2.5 in
facility closure and consolidation costs related to our facility
footprint rationalization program, (3) $1.9 in other miscellaneous
costs, (4) $1.2 in legal and professional fees relating primarily
to litigation, (5) $1.1 in costs related to the departure of former
executives, partially offset by, (6) $(1.7) of realized gains on
hedges of intercompany notes; (iii) in the year ended December 31,
2019 (1) $19.1 in facility closure and consolidation costs related
to our facility footprint rationalization program, (2) $15.0 in
acquisition and integration costs including $7.1 related to
purchase price structured by the former owners as retention
payments for key employees at a recent acquisition, (3) $12.9 in
legal cost and professional fees relating primarily to litigation,
(4) $2.0 in other miscellaneous costs, (5) $0.7 in equity
compensation to employees in our Australasia region, and (6) $0.7
in costs related to the departure of former executives, partially
offset by, (7) $(3.1) of realized gains on hedges of intercompany
notes; (iv) in the year ended December 31, 2018, (1) $76.5 in
litigation contingency accruals, (2) $26.5 in legal and
professional fees relating primarily to litigation, (3) $10.3 in
acquisition and integration costs, (4) $3.9 in costs related to the
departure of former executives, (5) $2.9 in entity consolidation
and reorganization costs, (6) $2.3 in miscellaneous costs, (7) $0.5
in stock compensation payroll taxes, partially offset by, (7)
$(5.4) of realized gains on hedges of intercompany notes.
(3)
Other non-cash items include: (i) $0.1 in other items for the
three months ended December 31, 2019; (ii) fair value inventory
gain of $(8.4) for the three months ended December 31, 2018; (iii)
derivative losses of $0.2 in the year ended December 31, 2019; and
(iv) charges of $3.7 for the fair value of inventory acquired as
part of our Domoferm acquisition in the year ended December 31,
2018.
Three Months Ended
Twelve Months Ended
(amounts in millions, except share and
per share data)
December 31, 2019
December 31, 2018
December 31, 2019
December 31, 2018
Net income
$
7.8
$
38.1
$
63.0
$
141.9
Litigation contingency accrual
—
—
—
49.6
Legal and professional fees
2.3
0.6
8.8
16.4
Impact of U.S. tax cuts and jobs act
—
—
—
(40.2
)
Change in valuation allowance
7.4
(9.7
)
7.4
(39.7
)
Non-cash foreign exchange
transactions/translation (income) loss
(0.1
)
(0.6
)
2.5
(0.8
)
Impairment and restructuring charges
3.1
5.4
16.2
11.2
Facility closure and consolidation
charges
2.6
1.7
13.6
1.9
Acquisition and integration charges
1.0
3.0
10.7
6.7
Inventory valuation adjustment
—
(5.7
)
—
2.4
Gain on previously held shares of an
equity investment (1)
—
—
—
(20.8
)
Deferred tax liability write-off
associated with equity investment (1)
—
—
—
(7.1
)
Adjusted net income (1)
$
24.1
$
32.7
$
122.2
$
121.5
Diluted net income per share
$
0.08
$
0.37
$
0.62
$
1.33
Litigation contingency accrual
—
—
—
0.48
Legal and professional fees
0.02
0.01
0.09
0.15
Impact of U.S. tax cuts and jobs act
—
—
—
(0.38
)
Change in valuation allowance
0.07
(0.09
)
0.07
(0.37
)
Non-cash foreign exchange
transactions/translation (income) loss
—
(0.01
)
0.02
(0.01
)
Impairment and restructuring charges
0.03
0.05
0.16
0.11
Facility closure and consolidation
charges
0.03
0.02
0.13
0.02
Acquisition and integration charges
0.01
0.03
0.11
0.06
Inventory valuation adjustment
—
(0.06
)
—
0.02
Gain on previously held shares of an
equity investment (1)
—
—
—
(0.20
)
Deferred tax liability write-off
associated with equity investment (1)
—
—
—
(0.07
)
Adjusted net income per share (1)
$
0.24
$
0.32
$
1.20
$
1.14
Diluted shares used in adjusted EPS
calculation represent the fully dilutive shares for the three and
twelve months ended December 31, 2019 and December 31, 2018,
respectively.
101,628,811
103,183,149
101,464,325
106,360,657
(1)
Adjusted net income and adjusted EPS for the twelve months
ending December 31, 2018 have been revised to eliminate the
estimated tax effect on these items because, due to their nature, a
tax effect adjustment should not have been applied. In addition, we
have revised December 31, 2019 and December 31, 2018 adjusted net
income and adjusted EPS to remove the impact of certain non-cash
changes in valuation allowances which are influenced by the Tax Act
as well as future projections of the Company's performance. As a
result of these adjustments and the impact of the 2018 revision,
three and twelve months ended December 31,2018 adjusted net income
as presented herein was reduced by $9.8 million and $48.6 million,
respectively, and adjusted EPS for the same periods was reduced by
$0.09 and $0.46, respectively.
Note: Except as otherwise noted,
adjustments to net income and net income per share are tax-effected
at an effective tax rate of 27.4% and 28.7% for the three and
twelve months, respectively, ended December 31, 2019; and 32.2% and
35.2% for the three and twelve months ended December 31, 2018.
Twelve Months Ended
December 31, 2019
December 31, 2018
Net cash provided by operating
activities
$
302.7
$
219.7
Less capital expenditures
136.2
118.7
Free cash flow
$
166.5
$
101.0
JELD-WEN Holding, Inc.
Segment Results
(Unaudited)
(In millions)
Three Months Ended
December 31, 2019
December 31, 2018
Net revenues from external customers
% Variance
North America
$
642.4
$
622.8
3.1
%
Europe
$
290.4
$
302.0
(3.8
)%
Australasia
$
135.7
$
166.9
(18.7
)%
Total Consolidated
$
1,068.6
$
1,091.7
(2.1
)%
Adjusted EBITDA(1)
North America
$
60.4
$
68.6
(12.0
)%
Europe
$
29.4
$
25.5
15.4
%
Australasia
$
16.5
$
23.9
(31.0
)%
Corporate and unallocated costs
$
(17.0
)
$
(11.9
)
43.2
%
Total Consolidated
$
89.2
$
106.1
(15.9
)%
(1)
Adjusted EBITDA is a financial measure that is not calculated in
accordance with GAAP. For a discussion of our presentation of
Adjusted EBITDA, see above under the heading “Non-GAAP Financial
Information”.
Twelve Months Ended
December 31, 2019
December 31, 2018
Net revenues from external customers
% Variance
North America
$
2,534.3
$
2,461.6
3.0
%
Europe
1,178.4
1,215.3
(3.0
)%
Australasia
577.0
669.9
(13.9
)%
Total Consolidated
$
4,289.8
$
4,346.8
(1.3
)%
Adjusted EBITDA(1)
North America
$
267.3
$
279.5
(4.4
)%
Europe
116.2
122.8
(5.4
)%
Australasia
74.5
90.9
(18.0
)%
Corporate and unallocated costs
(43.0
)
(34.0
)
26.4
%
Total Consolidated
$
415.0
$
459.2
(9.6
)%
(1)
Adjusted EBITDA is a financial measure that is not calculated in
accordance with GAAP. For a discussion of our presentation of
Adjusted EBITDA, see above under the heading “Non-GAAP Financial
Information”.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200218005372/en/
Investor Relations Contact: JELD-WEN Holding, Inc. Chris
Teachout Investor Relations Manager 704-378-7007
investors@jeldwen.com
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