JELD-WEN Provides COVID-19 Business Update and Strengthens Liquidity Position
March 30 2020 - 6:00AM
Business Wire
Highlights:
- Significant measures in place to safeguard the health and
safety of associates globally
- Well-positioned to navigate uncertainty of current market
environment
- Strong liquidity position and financial flexibility
JELD-WEN Holding, Inc. (NYSE: JELD) announced today that it has
taken proactive steps to safeguard its employees globally and
assure continued business operations through the COVID-19 global
pandemic.
“Ensuring the safety and well-being of our 23,000 associates and
their families, our channel partners, our customers, and each of
the communities in which we operate around the globe is our number
one priority,” said Gary S. Michel, president and chief executive
officer. “We moved decisively across the enterprise and put
measures in place to maintain the continuity of our operations and
protect the safety of our associates as we continue to service our
customers. We are focused on meeting critical customer needs
without disruption, while also complying with the COVID-19-related
regulations and restrictions set by local governments,” said Mr.
Michel.
At the present time, JELD-WEN continues to operate in many of
its global locations. Due to COVID-19 related restrictions, the
company temporarily has suspended production at locations that
cumulatively represent less than 10% of its 2019 consolidated net
revenues. In many jurisdictions, the company’s products and
services fall into categories that have received an ‘essential
business’ or ‘life-sustaining’ designation by government agencies.
Following guidance from the World Health Organization and the
Centers for Disease Control and Prevention, the company implemented
policies and procedures to maintain safe working environments,
decrease the potential spread of COVID-19 and reduce our
associates’ potential exposure to the virus.
JELD-WEN believes it has a strong balance sheet, ample liquidity
and solid financial flexibility with no significant long-term debt
maturities until 2024. Out of an abundance of caution, JELD-WEN
recently enhanced its cash position by drawing down $100 million on
its existing Asset Based Revolving Credit Facility. Reflecting this
draw down, as of March 27, 2020, the company had total liquidity of
approximately $450 million, comprised of unrestricted cash and cash
equivalents of approximately $230 million and approximately $220
million of availability under committed credit facilities.
JELD-WEN’s current level of liquidity reflects the company’s normal
seasonal cycle of working capital investments and is sufficient to
fund near-term operational needs amidst the uncertain market
environment. The company’s financial flexibility is further enabled
by the absence of any standing maintenance financial covenants in
its primary debt agreements.
Mr. Michel added, “We are taking significant austerity measures
to preserve cash and address near-term market dynamics. The
strategic actions we have taken with our footprint rationalization
and modernization program along with the JELD-WEN Excellence Model,
our business operating system, strengthen our position in a
volatile market environment and prepare us to deliver long-term
value creation once the COVID-19 pandemic subsides.”
While the COVID-19 situation is rapidly evolving, JELD-WEN’s
immediate priorities continue to be employee safety and business
continuity.
To learn more about JELD-WEN, please visit the company’s website
at https://www.jeld-wen.com/.
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 regarding our business
strategies and ability to execute on our plans, market potential,
operational needs, liquidity, future financial performance and the
impact of our footprint rationalization and modernization program
and JEM. 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
other 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 Report on
Form 10-K and our subsequent filings with the U.S. Securities and
Exchange Commission. The forward-looking statements included in
this press 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 other circumstances occurring after the date of this
press release.
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20200330005179/en/
Investor Relations: JELD-WEN Holding, Inc. Christopher
Teachout Investor Relations Manager 704.378.7007
investors@jeldwen.com
Media: JELD-WEN Holding, Inc. Noreen Pratscher Vice
President, Global Corporate Communications 980.286.2526
corporate@jeldwen.com
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