CHARLOTTE, N.C., Nov. 4, 2024
/PRNewswire/ -- JELD-WEN Holding, Inc. (NYSE: JELD) ("JELD-WEN" or
the "Company") today announced results for the three and nine
months ended September 28, 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.
Third Quarter Highlights
- Net revenues from continuing operations of $934.7 million decreased (13.2%) in the third
quarter driven by a (13%) Core Revenue decline as a result of (13%)
lower volume/mix due to weak macro-economic conditions and a
continued demand shift to entry level products.
- Net loss from continuing operations was ($73.0) million or ($0.86) per share, compared to net income from
continuing operations of $16.9
million, or $0.20 per share,
during the same quarter a year ago. The net loss from continuing
operations includes a non-cash goodwill impairment charge in the
Europe segment. Operating income
margin was (5.6%) and 4.5% for the quarters ended September 28, 2024 and September 30, 2023, respectively.
- Adjusted EBITDA from continuing operations was $81.6 million, a decrease of ($24.1) million compared to $105.7 million during the same quarter a year
ago. Adjusted EBITDA Margin from continuing operations was 8.7%, a
decrease of (110) basis points year-over-year as lower volume/mix
and higher costs in labor and materials was only partially offset
by lower SG&A expense and improved productivity.
"We continue to make progress on our transformation journey,
expecting $115 million of Adjusted
EBITDA in 2024 from our efforts, which positions JELD-WEN for
future success," said Chief Executive Officer William J. Christensen. "Market conditions
continue to deteriorate which have significantly impacted
volume/mix in the near-term. In response, we continue to work
diligently to align our costs with the softer market conditions
while also preparing for future growth. I am proud of our
associates for their dedication in implementing the necessary
changes in this challenging environment."
Third Quarter 2024 Results
Net revenues from continuing operations for the three months
ended September 28, 2024 was
$934.7 million, a decrease of
($142.3) million, or (13.2%),
compared to $1,077.0 million for the
same period last year. The decrease in net revenues was driven by a
(13%) decline in Core Revenue as a result of (13%) lower volume/mix
due to weak macro-economic conditions and demand shifting to entry
level products.
Net loss from continuing operations was ($73.0) million in the third quarter, compared to
net income from continuing operations of $16.9 million in the same period last year, a
decrease of ($89.9) million. The
decrease was mostly driven by a $63.4 million pre-tax, non-cash goodwill
impairment charge, lower volume/mix, 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 third quarter was $27.6 million, a decrease of ($18.0) million compared to $45.6 million in the same period last
year.
Net loss per share from continuing operations for the third
quarter was ($0.86), compared to EPS
of $0.20 in the same quarter last
year. Adjusted EPS from continuing operations for the third quarter
was $0.32 compared to $0.53 in the same quarter last year. Adjusted EPS
for the quarter ended September 28,
2024 excludes net after-tax charges of $100.5 million, or $1.17 per diluted share, associated mainly with
costs to execute on the Company's transformation journey. Adjusted
EPS for the quarter ended September 30,
2023 excludes net after-tax charges of $28.7 million or $0.33 per diluted share.
Adjusted EBITDA from continuing operations was $81.6 million, a decline of ($24.1) million compared to $105.7 million during the same quarter last year.
Adjusted EBITDA Margin from continuing operations was 8.7%, a
decline of (110) basis points as lower volume/mix and higher costs
in labor and materials was only partially offset by lower SG&A
expense and improved productivity.
On a segment basis for the third quarter of 2024, compared to
the same period last year:
- North America - Net
revenue was $677.9 million, a decline
of ($112.3) million, or (14.2%),
driven by a (14%) decline in Core Revenue due to (14%) lower
volume/mix related to weaker market demand and a demand shift
towards entry level products. Net income was $35.8 million, a decline of ($4.7) million year-over-year. Operating income
margin was 6.3% for the quarter ended September 28, 2024 and 8.8% for the quarter ended
September 30, 2023. Adjusted EBITDA
was $74.8 million, a decline of
($25.2) million while Adjusted EBITDA
Margin decreased by (160) basis points to 11.0%.
- Europe - Net revenue
was $256.8 million, a decline of
($29.9) million, or (10.4%), due to a
(12%) decline in Core Revenue partially offset by 1% in FX
translation. Core Revenue declined due to lower volume/mix (12%)
related to market softness across the region. Net loss was
($66.7) million, a decline of
($77.3) million year-over-year, which
includes a goodwill impairment charge of $63.4 million. Operating income margin was
(24.8%) for the quarter ended September 28,
2024 and 6.0% for the quarter ended September 30, 2023. Adjusted EBITDA was
$16.3 million, a decline of
($8.2) million, while Adjusted EBITDA
Margin decreased by (220) basis points to 6.3%.
Cash Flow (1)
Net cash flow provided by operations was $78.0 million during the first nine months of
2024, a ($195.0) million decrease
compared to net cash flow provided by operations of $273.0 million during the same period a year ago.
The decreased operating cash flow was due to a change in net income
of ($217.8) million and a decline in
accrued expenses of ($48.6) million,
both of which were partially offset by a $8.5 million improvement in cash flow associated
with working capital.
Capital expenditures in the first nine months of 2024 increased
by $37.7 million to $118.0 million, up from $80.4 million in the first nine months of
2023.
Free Cash Flow used in the first nine months of 2024 was
($40.0) million, compared to Free
Cash Flow provided in the nine months of 2023 of $192.6 million.
(1)
Cash flow for the nine months ended September 30, 2023 includes the Australasia
segment.
Full Year 2024 Guidance
JELD-WEN is lowering its 2024 revenue guidance to a range of
$3.7 to $3.75
billion which reflects Core Revenues that are down (13%) to
(14%) compared to 2023. Further, the Company is lowering its
expected 2024 Adjusted EBITDA, and now expects it will be within
the range of $265 to $280 million.
|
Revenue
|
Adjusted
EBITDA
|
Core Revenue
Decline
|
|
May 2024
Guidance
|
$3.9 to $4.1
billion
|
$340 to $380
million
|
(5%) to (9%)
|
|
Updated
Guidance
|
$3.7 to $3.75
billion
|
$265 to $280
million
|
(13%) to
(14%)
|
Due to the reduced Adjusted EBITDA guidance, the Company now
expects 2024 operating cash flow to be approximately $125 million compared to the previous outlook of
approximately $200 million.
Conference Call Information
JELD-WEN management will host a conference call on
November 5, 2024 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 888-596-4144 from
the United States or
+1-646-968-2525 internationally and using ID 6841220. A slide
presentation highlighting the Company's results is 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 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 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,
JELD-WEN operates facilities in 14 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 us on LinkedIn.
Investor Relations Contact:
James Armstrong
Vice President, Investor Relations
704-378-5731
jarmstrong@jeldwen.com
Media Contact:
JELD-WEN Holding, Inc.
Melissa Farrington
Vice President, Enterprise Communications
262-350-6021
mfarrington@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 strategic transformation journey, footprint
rationalization, cost reduction and modernization initiatives, 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, geopolitical and economic uncertainty, security breaches
and other cybersecurity incidents, impacts on our business from
weather and climate change, 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 and other
factors, please refer to our Annual Report on Form 10-K for the
year ended December 31, 2023,
Quarterly Reports on Form 10-Q filed in 2024 and our other filings
with the U.S. Securities and Exchange Commission.
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 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. While management is not
able to provide a reconciliation of 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 certain items such as assumed effective tax
rate, assumed interest expense, and other assumptions about capital
requirements for future periods. Although the Company believes the
assumptions reflected in the range of its 2024 guidance are
reasonable, actual results could vary substantially given the
uncertainty regarding the future performance of the global economy,
ongoing geopolitical conflicts, disruptions in supply chains, and
changes in raw material prices and other costs as well as other
risks and uncertainties, including those described below. In
addition, the guidance ranges provided for 2024 do not include the
impact of potential acquisitions or divestitures. The variability
of these items may have a significant impact on our future GAAP
results.
Other companies may compute these measures differently. The
non-U.S. GAAP information has limitations as an analytical tool and
should not be considered in isolation from or as a substitute for
U.S. GAAP information. It does not purport to represent any
similarly titled U.S. GAAP information and is not an indicator of
our performance under U.S. GAAP.
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 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 (income), net; and certain special
items consisting of non-recurring net legal and professional
expenses and settlements; goodwill impairment; restructuring and
asset-related charges; M&A related costs; net (gain) loss on
sale of business, property, and equipment; loss on extinguishment
and refinancing of debt; share-based compensation expense; non-cash
foreign exchange transaction/translation (gain) loss; and other
special items.
Adjusted Net Income from continuing operations represents net
income (loss) from continuing operations adjusted for the after-tax
impact of (i) certain special items used to calculate Adjusted
EBITDA from continuing operations as described above and (ii)
accelerated amortization of an ERP that we are no longer utilizing
after we completed our related obligations under the JW Australia
Transition Services Agreement during the first quarter of 2024.
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
(loss) 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 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 as
an alternative 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
|
|
|
|
|
September 28,
2024
|
|
September 30,
2023
|
|
% Variance
|
|
Net
revenues
|
|
$
934.7
|
|
$
1,077.0
|
|
(13.2) %
|
|
Cost of
sales
|
|
754.8
|
|
853.4
|
|
(11.5) %
|
|
Gross margin
|
|
179.9
|
|
223.6
|
|
(19.6) %
|
|
Selling, general and
administrative
|
|
143.3
|
|
162.8
|
|
(12.0) %
|
|
Goodwill
impairment
|
|
63.4
|
|
—
|
|
NM
|
|
Restructuring and
asset-related charges
|
|
25.5
|
|
12.7
|
|
101.1 %
|
|
Operating
income
|
|
(52.4)
|
|
48.1
|
|
(209.0) %
|
|
Interest expense,
net
|
|
16.3
|
|
16.7
|
|
(2.5) %
|
|
Loss on extinguishment
and refinancing of debt
|
|
0.5
|
|
6.5
|
|
(92.9) %
|
|
Other income,
net
|
|
(3.5)
|
|
(9.5)
|
|
(63.2) %
|
|
(Loss) income from
continuing operations before taxes
|
|
(65.7)
|
|
34.3
|
|
(291.5) %
|
|
Income tax
expense
|
|
7.3
|
|
17.4
|
|
(58.3) %
|
|
(Loss) income from
continuing operations, net of tax
|
|
(73.0)
|
|
16.9
|
|
(531.5) %
|
|
(Loss) gain on sale of
discontinued operations, net of tax
|
|
(1.4)
|
|
26.1
|
|
(105.5) %
|
|
Income from
discontinued operations, net of tax
|
|
—
|
|
0.8
|
|
NM
|
|
Net (loss)
income
|
|
$
(74.4)
|
|
$
43.8
|
|
(269.9) %
|
|
Diluted Net (loss)
income per share from continuing operations
|
|
$
(0.86)
|
|
$
0.20
|
|
|
|
Diluted Net (loss)
income per share from discontinued operations
|
|
(0.02)
|
|
0.31
|
|
|
|
Diluted Net (loss)
income per share
|
|
$
(0.88)
|
|
$
0.51
|
|
|
|
Diluted
Shares
|
|
84,554,174
|
|
86,349,840
|
|
|
|
Other financial
data:
|
|
|
|
|
|
|
|
Operating income
margin
|
|
(5.6) %
|
|
4.5 %
|
|
|
|
Adjusted EBITDA from
continuing operations (1)
|
|
$
81.6
|
|
$
105.7
|
|
(22.8) %
|
|
Adjusted EBITDA Margin
from continuing operations (1)
|
|
8.7 %
|
|
9.8 %
|
|
|
|
|
|
(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."
|
|
Consolidated
Statements of Operations (Unaudited)
(In millions, except
share and per share data)
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
September 28,
2024
|
|
September 30,
2023
|
|
% Variance
|
|
Net
revenues
|
|
$
2,879.9
|
|
$
3,283.3
|
|
(12.3) %
|
|
Cost of
sales
|
|
2,337.4
|
|
2,642.3
|
|
(11.5) %
|
|
Gross margin
|
|
542.5
|
|
640.9
|
|
(15.4) %
|
|
Selling, general and
administrative
|
|
494.5
|
|
478.1
|
|
3.4 %
|
|
Goodwill
impairment
|
|
63.4
|
|
—
|
|
NM
|
|
Restructuring and
asset-related charges
|
|
60.0
|
|
28.8
|
|
108.7 %
|
|
Operating (loss)
income
|
|
(75.5)
|
|
134.1
|
|
(156.3) %
|
|
Interest expense,
net
|
|
48.6
|
|
59.1
|
|
(17.8) %
|
|
Loss on extinguishment
and refinancing of debt
|
|
1.9
|
|
6.5
|
|
(70.6) %
|
|
Other income,
net
|
|
(20.2)
|
|
(11.0)
|
|
84.2 %
|
|
(Loss) income from
continuing operations before taxes
|
|
(105.8)
|
|
79.5
|
|
(233.1) %
|
|
Income tax
expense
|
|
13.4
|
|
31.6
|
|
(57.7) %
|
|
(Loss) income from
continuing operations, net of tax
|
|
(119.2)
|
|
47.9
|
|
(348.9) %
|
|
(Loss) gain on sale of
discontinued operations, net of tax
|
|
(1.4)
|
|
26.1
|
|
(105.5) %
|
|
Income from
discontinued operations, net of tax
|
|
—
|
|
23.2
|
|
NM
|
|
Net (loss)
income
|
|
$
(120.6)
|
|
$
97.2
|
|
(224.1) %
|
|
Diluted Net (loss)
income per share from continuing operations
|
|
$
(1.40)
|
|
$
0.56
|
|
|
|
Diluted Net (loss)
income per share from discontinued operations
|
|
(0.02)
|
|
0.58
|
|
|
|
Diluted Net (loss)
income per share
|
|
$
(1.42)
|
|
$
1.13
|
|
|
|
Diluted
Shares
|
|
85,115,070
|
|
85,729,136
|
|
|
|
Other financial
data:
|
|
|
|
|
|
|
|
Operating (loss) income
margin
|
|
(2.6) %
|
|
4.1 %
|
|
|
|
Adjusted EBITDA from
continuing operations (1)
|
|
$
235.2
|
|
$
293.9
|
|
(20.0) %
|
|
Adjusted EBITDA Margin
from continuing operations (1)
|
|
8.2 %
|
|
9.0 %
|
|
|
|
|
|
(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)
|
|
|
|
|
|
September 28,
2024
|
|
December 31,
2023
|
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$
208.5
|
|
$
288.3
|
|
Restricted
cash
|
0.8
|
|
0.8
|
|
Accounts receivable,
net
|
491.9
|
|
516.7
|
|
Inventories
|
481.7
|
|
481.5
|
|
Other current
assets
|
75.2
|
|
71.5
|
|
Assets held for
sale
|
148.7
|
|
135.6
|
|
Total current
assets
|
1,406.8
|
|
1,494.3
|
|
Property and
equipment, net
|
670.8
|
|
644.2
|
|
Deferred tax
assets
|
155.5
|
|
150.5
|
|
Goodwill
|
326.4
|
|
390.2
|
|
Intangible assets,
net
|
103.3
|
|
123.9
|
|
Operating lease
assets, net
|
132.7
|
|
146.9
|
|
Other
assets
|
39.2
|
|
30.1
|
|
Total
assets
|
$
2,834.7
|
|
$
2,980.1
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
$
318.9
|
|
$
269.3
|
|
Accrued payroll and
benefits
|
81.8
|
|
132.6
|
|
Accrued expenses and
other current liabilities
|
253.1
|
|
233.8
|
|
Current maturities of
long-term debt
|
30.9
|
|
36.2
|
|
Liabilities held for
sale
|
9.3
|
|
7.1
|
|
Total current
liabilities
|
693.9
|
|
678.9
|
|
Long-term
debt
|
1,179.9
|
|
1,190.1
|
|
Unfunded pension
liability
|
27.9
|
|
26.5
|
|
Operating lease
liability
|
108.0
|
|
122.0
|
|
Deferred credits and
other liabilities
|
98.5
|
|
104.8
|
|
Deferred tax
liabilities
|
6.2
|
|
7.2
|
|
Total
liabilities
|
2,114.4
|
|
2,129.5
|
|
Shareholders'
equity
|
|
|
|
|
Preferred Stock, par
value $0.01 per share, 90,000,000 shares authorized; no
shares issued and outstanding
|
—
|
|
—
|
|
Common Stock:
900,000,000 shares authorized, par value $0.01 per share,
84,617,518 and 85,309,220 shares issued and outstanding as of
September 28,
2024 and December 31, 2023, respectively.
|
0.8
|
|
0.9
|
|
Additional paid-in
capital
|
766.4
|
|
752.2
|
|
Retained
earnings
|
48.0
|
|
192.9
|
|
Accumulated other
comprehensive loss
|
(95.0)
|
|
(95.3)
|
|
Total shareholders'
equity
|
720.3
|
|
850.6
|
|
Total liabilities and
shareholders' equity
|
$
2,834.7
|
|
$
2,980.1
|
|
JELD-WEN Holding,
Inc.
Consolidated
Statements of Cash Flows (Unaudited)
(In
millions)
|
|
|
|
|
|
Nine Months
Ended
|
|
|
September 28,
2024
|
|
September 30,
2023
|
|
OPERATING
ACTIVITIES
|
|
|
|
|
|
Net (loss)
income
|
|
$
(120.6)
|
|
$
97.2
|
|
Adjustments to
reconcile net income to cash provided by (used in) operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
97.6
|
|
102.7
|
|
Deferred income
taxes
|
|
(9.7)
|
|
8.8
|
|
Net gain on sale of
business, property and equipment
|
|
(8.2)
|
|
(3.9)
|
|
Goodwill
impairment
|
|
63.4
|
|
—
|
|
Adjustment to carrying
value of assets
|
|
18.0
|
|
4.8
|
|
Amortization of
deferred financing costs
|
|
1.9
|
|
2.1
|
|
Loss on extinguishment
and refinancing of debt
|
|
1.2
|
|
6.5
|
|
Loss on foreign
currency translation adjustment related to the substantial
liquidation of a
foreign subsidiary
|
|
4.3
|
|
—
|
|
Loss (gain) on sale of
discontinued operations, net of tax
|
|
1.4
|
|
(26.1)
|
|
Share-based
compensation expense
|
|
12.6
|
|
13.2
|
|
Amortization of U.S.
pension expense
|
|
—
|
|
0.4
|
|
Recovery of cost from
receipts on impaired notes
|
|
(1.4)
|
|
(3.0)
|
|
Other items,
net
|
|
(5.2)
|
|
(10.7)
|
|
Net change in
operating assets and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
|
20.4
|
|
(50.2)
|
|
Inventories
|
|
(1.4)
|
|
74.8
|
|
Other
assets
|
|
(0.8)
|
|
22.1
|
|
Accounts payable and
accrued expenses
|
|
11.0
|
|
45.5
|
|
Change in short-term
and long-term tax liabilities
|
|
(6.5)
|
|
(11.2)
|
|
Net cash provided by
operating activities
|
|
78.0
|
|
273.0
|
|
INVESTING
ACTIVITIES
|
|
|
|
|
|
Purchases of property
and equipment
|
|
(109.8)
|
|
(69.6)
|
|
Proceeds from sale of
business, property and equipment
|
|
11.7
|
|
6.3
|
|
Purchase of intangible
assets
|
|
(8.2)
|
|
(10.7)
|
|
Proceeds (payments)
related to the sale of our Australasia segment
|
|
—
|
|
367.5
|
|
Recovery of cost from
receipts on impaired notes
|
|
1.4
|
|
3.0
|
|
Cash received for
notes receivable
|
|
—
|
|
0.1
|
|
Cash received from
insurance proceeds
|
|
1.7
|
|
3.2
|
|
Purchase of securities
for deferred compensation plan
|
|
(3.1)
|
|
(0.9)
|
|
Net cash (used in)
provided by investing activities
|
|
(106.4)
|
|
298.8
|
|
FINANCING
ACTIVITIES
|
|
|
|
|
|
Change in long-term
debt and payments of debt extinguishment costs
|
|
(25.6)
|
|
(549.3)
|
|
Common stock issued
for exercise of options
|
|
2.9
|
|
0.2
|
|
Common stock
repurchased
|
|
(24.3)
|
|
—
|
|
Payments to tax
authorities for employee share-based compensation
|
|
(1.2)
|
|
(1.6)
|
|
Payments related to
the sale of JW Australia
|
|
(2.0)
|
|
—
|
|
Net cash used in
financing activities
|
|
(50.3)
|
|
(550.8)
|
|
Effect of foreign
currency exchange rates on cash
|
|
(1.2)
|
|
(2.0)
|
|
Net (decrease) increase
in cash and cash equivalents
|
|
(79.8)
|
|
19.0
|
|
Cash, cash equivalents
and restricted cash, beginning
|
|
289.1
|
|
220.9
|
|
Cash, cash equivalents
and restricted cash, ending
|
|
$
209.3
|
|
$
239.9
|
|
Cash flow for the nine
months ended September 30, 2023 includes the Australasia
segment.
|
|
|
|
JELD-WEN Holding,
Inc.
Reconciliation of
Non-GAAP Financial Measures (Unaudited)
(In
millions)
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
28, 2024
|
|
September
30, 2023
|
|
September
28, 2024
|
|
September
30, 2023
|
|
(Loss) income from
continuing operations, net of tax
|
$
(73.0)
|
|
$
16.9
|
|
$
(119.2)
|
|
$
47.9
|
|
Income tax
expense
|
7.3
|
|
17.4
|
|
13.4
|
|
31.6
|
|
Depreciation and
amortization(1)
|
27.9
|
|
31.0
|
|
97.6
|
|
97.5
|
|
Interest expense,
net
|
16.3
|
|
16.7
|
|
48.6
|
|
59.1
|
|
Special
items:
|
|
|
|
|
|
|
|
|
Net legal and
professional expenses and settlements(2)
|
12.3
|
|
7.4
|
|
49.8
|
|
13.6
|
|
Goodwill
impairment(3)
|
63.4
|
|
—
|
|
63.4
|
|
—
|
|
Restructuring and
asset-related charges(4)(5)
|
25.5
|
|
12.7
|
|
60.0
|
|
28.8
|
|
M&A related
costs(6)
|
3.0
|
|
1.2
|
|
9.2
|
|
5.2
|
|
Net gain on sale of
business, property, and equipment(7)
|
(5.4)
|
|
(4.0)
|
|
(8.2)
|
|
(4.0)
|
|
Loss on extinguishment
and refinancing of debt(8)
|
0.5
|
|
6.5
|
|
1.9
|
|
6.5
|
|
Share-based
compensation expense(9)
|
2.5
|
|
3.4
|
|
12.6
|
|
12.3
|
|
Non-cash foreign
exchange transaction/translation (gain)
loss(10)
|
(0.4)
|
|
0.3
|
|
(3.1)
|
|
(0.9)
|
|
Other special
items(11)
|
1.7
|
|
(3.7)
|
|
9.1
|
|
(3.6)
|
|
Adjusted EBITDA from
continuing operations
|
$
81.6
|
|
$
105.7
|
|
$
235.2
|
|
$
293.9
|
|
|
|
(1)
|
Depreciation and
amortization expense includes accelerated amortization of $14.1
million in the nine months ended September 28, 2024 and $3.5
million in the three and nine months ended September 30, 2023 in
Corporate and unallocated costs for an ERP that we are no
longer utilizing after we completed our related obligations under
the JW Australia Transition Services Agreement during the first
quarter of 2024. In addition, depreciation and amortization expense
in the nine months ended September 30, 2023 includes accelerated
depreciation of $9.1 million in North America from reviews of
equipment capacity optimization.
|
|
|
|
(2)
|
Net legal and
professional expenses and settlements include non-recurring
transformation journey expenses of $12.0 million and $46.6 million
in the three and nine months ended September 28, 2024,
respectively, and $7.1 million and $12.0 million in the three and
nine months ended September 30, 2023, respectively. These expenses
primarily relate to the engagement of one transformation consultant
for a period spanning from the third quarter of 2023 through the
fourth quarter of 2024, for which we incurred $7.0 million and
$35.4 million in the three and nine months ended September 28,
2024, respectively, and $5.8 million and $6.2 million in the three
and nine months ended September 30, 2023, respectively.
Additionally, net legal and professional expenses and settlements
include amounts relating to litigation of historic legal matters of
$0.2 million and $2.8 million in the three and nine months ended
September 28, 2024, respectively, and of $0.2 million and $1.6
million and in the three and nine months ended September 30, 2023,
respectively.
|
|
|
|
(3)
|
Goodwill impairment
consists of goodwill impairment charges associated with our Europe
reporting unit.
|
|
|
|
(4)
|
Represents severance,
accelerated depreciation and amortization, equipment relocation and
other expenses directly incurred as a result of restructuring
events. The restructuring charges primarily relate to charges
incurred to change the operating structure, eliminate certain
roles, and close certain manufacturing facilities in our North
America and Europe segments.
|
|
|
|
(5)
|
For the three and nine
months ended September 28, 2024, $1.4 million and $7.8 million,
respectively, of product and inventory-related charges related to
announced facility closures were detrimental to Adjusted
EBITDA.
|
|
|
|
(6)
|
M&A related costs
consists primarily of legal and professional expenses related to
the potential disposition of Towanda.
|
|
|
|
(7)
|
Net gain on sale of
business, property, and equipment in the three months ended
September 28, 2024 primarily relates to the sale of our St. Kitts
business. Net gain on sale of business, property, and equipment in
the nine months ended September 28, 2024 primarily relates to the
sale of our business in St. Kitts and property in Chile. Net gain
on sale of business, property and equipment in the three and nine
months ended September 30, 2023 primarily relates to the sale of a
building in Melton, UK.
|
|
|
|
(8)
|
Loss on extinguishment
and refinancing of debt of $0.5 million in the three months ended
September 28, 2024 is related to the redemption of the remaining
$200.0 million of our 4.63% Senior Notes. Loss on extinguishment
and refinancing of debt of $1.9 million in the nine months ended
September 28, 2024 associated with an amendment of our Term Loan
Facility and redemption of the remaining $200.0 million of our
4.63% Senior Notes. Loss on extinguishment and refinancing of debt
of $6.5 million in the three and nine months ended September 30,
2023 is related to the redemption of $250.0 million of our 6.25%
Senior Secured Notes and $200.0 million of our 4.63% Senior
Notes.
|
|
|
|
(9)
|
Represents non-cash
equity-based compensation expense related to the issuance of
share-based awards.
|
|
|
|
(10)
|
Non-cash foreign
exchange transaction/translation gain primarily associated with
fair value adjustments of foreign currency derivatives and
revaluation of balances denominated in foreign
currencies.
|
|
|
|
(11)
|
Other special items not
core to ongoing business activity include: (i) in the three months
ended September 30, 2023, ($3.1) million in income from
short-term investments and forward contracts related to the JW
Australia divestiture; (ii) in the nine months ended September 28,
2024, a loss of $4.3 million of cumulative foreign currency
translation adjustments related to the substantial liquidation of a
foreign subsidiary in Chile in our North America segment, a
one-time realized foreign currency loss of $1.6 million in our
Europe segment related to a cash repatriation event, and
($1.5) million of cash received on an impaired note in
Corporate and unallocated costs; and (iii) in the nine months ended
September 30, 2023, ($3.1) million in income from short-term
investments and forward contracts related to the JW Australia
divestiture.
|
To conform with current period presentation,
certain amounts in prior period information have been
reclassified.
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
(amounts in
millions, except share and per share data)
|
|
September
28, 2024
|
|
September
30, 2023
|
|
September
28, 2024
|
|
September
30, 2023
|
|
(Loss) income from
continuing operations, net of tax
|
|
$
(73.0)
|
|
$
16.9
|
|
$
(119.2)
|
|
$
47.9
|
|
Special items:
(1)
|
|
|
|
|
|
|
|
|
|
Net legal and
professional expenses and settlements
|
|
12.3
|
|
7.4
|
|
49.8
|
|
13.6
|
|
Goodwill
impairment
|
|
63.4
|
|
—
|
|
63.4
|
|
—
|
|
Restructuring and
asset-related charges
|
|
25.5
|
|
12.7
|
|
60.0
|
|
28.8
|
|
M&A related
costs
|
|
3.0
|
|
1.2
|
|
9.2
|
|
5.2
|
|
Net gain on sale of
business, property, and equipment
|
|
(5.4)
|
|
(4.0)
|
|
(8.2)
|
|
(4.0)
|
|
Loss on extinguishment
and refinancing of debt
|
|
0.5
|
|
6.5
|
|
1.9
|
|
6.5
|
|
Share-based
compensation expense
|
|
2.5
|
|
3.4
|
|
12.6
|
|
12.3
|
|
Non-cash foreign
exchange transaction/translation
(gain) loss
|
|
(0.4)
|
|
0.3
|
|
(3.1)
|
|
(0.9)
|
|
Accelerated
amortization of an ERP system (2)
|
|
—
|
|
3.5
|
|
14.1
|
|
3.5
|
|
Other special
items
|
|
1.7
|
|
(3.7)
|
|
9.1
|
|
(3.6)
|
|
Tax impact of special
items (3)
|
|
(7.4)
|
|
(5.0)
|
|
(31.3)
|
|
(13.8)
|
|
Tax special
items(4)
|
|
4.8
|
|
6.4
|
|
16.8
|
|
9.6
|
|
Adjusted Net Income
from continuing operations
|
|
$
27.6
|
|
$
45.6
|
|
$
75.4
|
|
$
105.0
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss) income
per share from continuing
operations
|
|
$
(0.86)
|
|
$
0.20
|
|
$
(1.40)
|
|
$
0.56
|
|
Impact of additional
dilutive shares on the reported
dilutive loss per share
|
|
(0.01)
|
|
—
|
|
0.02
|
|
—
|
|
Special items:
(1)
|
|
|
|
|
|
|
|
|
|
Net legal and
professional expenses and settlements
|
|
0.14
|
|
0.09
|
|
0.58
|
|
0.16
|
|
Goodwill
impairment
|
|
0.74
|
|
—
|
|
0.73
|
|
—
|
|
Restructuring and
asset-related charges
|
|
0.30
|
|
0.15
|
|
0.69
|
|
0.34
|
|
M&A related
costs
|
|
0.04
|
|
0.01
|
|
0.11
|
|
0.06
|
|
Net gain on sale of
business, property, and equipment
|
|
(0.06)
|
|
(0.05)
|
|
(0.09)
|
|
(0.05)
|
|
Loss on extinguishment
and refinancing of debt
|
|
0.01
|
|
0.08
|
|
0.02
|
|
0.08
|
|
Share-based
compensation expense
|
|
0.03
|
|
0.04
|
|
0.15
|
|
0.14
|
|
Non-cash foreign
exchange transaction/translation
gain
|
|
—
|
|
—
|
|
(0.04)
|
|
(0.01)
|
|
Accelerated
amortization of an ERP system (2)
|
|
—
|
|
0.04
|
|
0.16
|
|
0.04
|
|
Other special
items
|
|
0.02
|
|
(0.04)
|
|
0.11
|
|
(0.04)
|
|
Tax impact of special
items (3)
|
|
(0.09)
|
|
(0.06)
|
|
(0.36)
|
|
(0.16)
|
|
Tax special items
(4)
|
|
0.06
|
|
0.07
|
|
0.19
|
|
0.11
|
|
Adjusted Net Income per
share from continuing
operations
|
|
$
0.32
|
|
$
0.53
|
|
$
0.87
|
|
$
1.22
|
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares used in adjusted EPS
calculation represent the fully dilutive shares for the
three and nine months ended September 28, 2024 and
September 30, 2023(5)
|
|
85,630,545
|
|
86,349,840
|
|
86,401,875
|
|
85,729,136
|
|
|
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 a
discussion of the Special items listed above.
|
|
|
|
(2)
|
Accelerated
amortization of an ERP that we are no longer utilizing after we
completed our related obligations under the JW Australia Transition
Services Agreement during the first quarter of 2024.
|
|
|
|
(3)
|
Except as otherwise
noted, adjustments to net income and net income per share are
tax-effected at the jurisdictional statutory tax rate.
|
|
|
|
(4)
|
Tax special items for
the three and nine months ended September 28, 2024 was primarily
driven by tax expense on uncertain tax positions from audits dating
back to the year 2015 of $2.4 million and $12.1 million,
respectively, and valuation expense recorded against our U.S. tax
attributes of $2.6 million and $4.3 million,
respectively.
|
|
|
|
(5)
|
Dilutive shares for the
three months ended September 28, 2024 includes basic weighted
average shares outstanding of 84,554,174 and the dilutive impact of
restricted stock units, performance share units, and options to
purchase common stock of 1,076,371. Dilutive shares for the nine
months ended September 28, 2024 includes basic weighted average
shares outstanding of 85,115,070 and the dilutive impact of
restricted stock units, performance share units, and options to
purchase common stock of 1,286,805.
|
To conform with current period presentation,
certain amounts in prior period information have been
reclassified.
|
|
Three Months Ended
September 28, 2024
|
|
(amounts in
millions)
|
|
North
America
|
|
Europe
|
|
Corporate
and
Unallocated
Costs
|
|
Total
Consolidated
|
|
Income (loss) from
continuing operations, net of tax
|
|
$
35.8
|
|
$
(66.7)
|
|
$
(42.1)
|
|
$
(73.0)
|
|
Income tax expense
(benefit)
|
|
6.5
|
|
2.6
|
|
(1.8)
|
|
7.3
|
|
Depreciation and
amortization
|
|
18.1
|
|
7.9
|
|
1.8
|
|
27.9
|
|
Interest expense,
net
|
|
0.8
|
|
—
|
|
15.5
|
|
16.3
|
|
Special
items:(1)
|
|
|
|
|
|
|
|
|
|
Net legal and
professional expenses and settlements
|
|
0.6
|
|
1.0
|
|
10.7
|
|
12.3
|
|
Goodwill
impairment
|
|
—
|
|
63.4
|
|
—
|
|
63.4
|
|
Restructuring and
asset-related charges
|
|
17.1
|
|
7.8
|
|
0.6
|
|
25.5
|
|
M&A related
costs
|
|
—
|
|
—
|
|
3.0
|
|
3.0
|
|
Net (gain) loss on
sale of business, property, and
equipment
|
|
(5.3)
|
|
—
|
|
(0.2)
|
|
(5.4)
|
|
Loss on extinguishment
and refinancing of debt
|
|
—
|
|
—
|
|
0.5
|
|
0.5
|
|
Share-based
compensation expense
|
|
0.3
|
|
0.3
|
|
1.8
|
|
2.5
|
|
Non-cash foreign
exchange transaction/translation loss
(gain)
|
|
0.1
|
|
(0.5)
|
|
0.1
|
|
(0.4)
|
|
Other special
items
|
|
0.7
|
|
0.3
|
|
0.7
|
|
1.7
|
|
Adjusted EBITDA from
continuing operations
|
|
$
74.8
|
|
$
16.3
|
|
$
(9.4)
|
|
$
81.6
|
|
|
|
(1)
|
Refer to the
calculation of Adjusted EBITDA from continuing operations for a
discussion of the Special items listed above.
|
|
|
Three Months Ended
September 30, 2023
|
|
(amounts in
millions)
|
|
North
America
|
|
Europe
|
|
Corporate
and
Unallocated
Costs
|
|
Total
Consolidated
|
|
Income (loss) from
continuing operations, net of tax
|
|
$
40.5
|
|
$
10.7
|
|
$
(34.2)
|
|
$
16.9
|
|
Income tax expense
(benefit)
|
|
27.4
|
|
6.0
|
|
(16.0)
|
|
17.4
|
|
Depreciation and
amortization(1)
|
|
17.1
|
|
7.5
|
|
6.3
|
|
31.0
|
|
Interest expense,
net
|
|
0.6
|
|
0.1
|
|
16.0
|
|
16.7
|
|
Special
items:(2)
|
|
|
|
|
|
|
|
|
|
Net legal and
professional expenses and settlements
|
|
0.8
|
|
1.3
|
|
5.3
|
|
7.4
|
|
Restructuring and
asset-related charges
|
|
11.9
|
|
0.8
|
|
—
|
|
12.7
|
|
M&A related
costs
|
|
0.1
|
|
—
|
|
1.1
|
|
1.2
|
|
Net loss (gain) on
sale property and equipment
|
|
0.7
|
|
(4.8)
|
|
—
|
|
(4.0)
|
|
Loss on extinguishment
and refinancing of debt
|
|
—
|
|
—
|
|
6.5
|
|
6.5
|
|
Share-based
compensation expense
|
|
0.9
|
|
0.5
|
|
2.0
|
|
3.4
|
|
Non-cash foreign
exchange transaction/translation loss (gain)
|
|
0.1
|
|
2.3
|
|
(2.2)
|
|
0.3
|
|
Other special
items
|
|
(0.2)
|
|
0.1
|
|
(3.5)
|
|
(3.7)
|
|
Adjusted EBITDA from
continuing operations
|
|
$
100.0
|
|
$
24.5
|
|
$
(18.7)
|
|
$
105.7
|
|
|
|
(1)
|
Corporate and
unallocated depreciation and amortization expense includes software
accelerated amortization of $3.5 million for an ERP that we
are no longer utilizing after we completed our related obligations
under the JW Australia Transition Services Agreement during the
first quarter of 2024.
|
|
|
|
(2)
|
Refer to the
calculation of Adjusted EBITDA from continuing operations for a
discussion of the Special items listed above.
|
To conform with current period presentation,
certain amounts in prior period information have been
reclassified.
|
|
Nine Months Ended
September 28, 2024
|
|
(amounts in
millions)
|
|
North
America
|
|
Europe
|
|
Corporate
and
Unallocated
Costs
|
|
Total
Consolidated
|
|
Income (loss) from
continuing operations, net of tax
|
|
$
82.8
|
|
$
(71.7)
|
|
$
(130.3)
|
|
$
(119.2)
|
|
Income tax expense
(benefit)
|
|
26.8
|
|
15.8
|
|
(29.2)
|
|
13.4
|
|
Depreciation and
amortization(1)
|
|
55.0
|
|
22.9
|
|
19.6
|
|
97.6
|
|
Interest expense,
net
|
|
2.1
|
|
0.9
|
|
45.5
|
|
48.6
|
|
Special
items:(2)
|
|
|
|
|
|
|
|
|
|
Net legal and
professional expenses and settlements
|
|
2.3
|
|
2.4
|
|
45.1
|
|
49.8
|
|
Goodwill
impairment
|
|
—
|
|
63.4
|
|
—
|
|
63.4
|
|
Restructuring and
asset-related charges
|
|
40.2
|
|
18.4
|
|
1.4
|
|
60.0
|
|
M&A related
costs
|
|
—
|
|
—
|
|
9.2
|
|
9.2
|
|
Net gain on sale of
business, property, and equipment
|
|
(7.8)
|
|
(0.2)
|
|
(0.2)
|
|
(8.2)
|
|
Loss on extinguishment
and refinancing of debt
|
|
—
|
|
—
|
|
1.9
|
|
1.9
|
|
Share-based
compensation expense
|
|
2.6
|
|
1.0
|
|
9.0
|
|
12.6
|
|
Non-cash foreign
exchange transaction/translation loss
(gain)
|
|
0.3
|
|
(3.8)
|
|
0.4
|
|
(3.1)
|
|
Other special
items
|
|
7.2
|
|
1.9
|
|
—
|
|
9.1
|
|
Adjusted EBITDA from
continuing operations
|
|
$
211.6
|
|
$
51.2
|
|
$
(27.6)
|
|
$
235.2
|
|
|
|
(1)
|
Corporate and
unallocated depreciation and amortization expense includes software
accelerated amortization of $14.1 million for an ERP that we
are no longer utilizing after we completed our related obligations
under the JW Australia Transition Services Agreement during the
first quarter of 2024.
|
|
|
|
(2)
|
Refer to the
calculation of Adjusted EBITDA from continuing operations for a
discussion of the Special items listed above.
|
|
|
Nine Months Ended
September 30, 2023
|
|
(amounts in
millions)
|
|
North
America
|
|
Europe
|
|
Corporate
and
Unallocated
Costs
|
|
Total
Consolidated
|
|
Income (loss) from
continuing operations, net of tax
|
|
$
127.0
|
|
$
28.6
|
|
$
(107.7)
|
|
$
47.9
|
|
Income tax expense
(benefit)
|
|
63.1
|
|
10.5
|
|
(41.9)
|
|
31.6
|
|
Depreciation and
amortization(1)
|
|
62.6
|
|
22.4
|
|
12.5
|
|
97.5
|
|
Interest expense,
net
|
|
4.2
|
|
0.7
|
|
54.2
|
|
59.1
|
|
Special
items:(2)
|
|
|
|
|
|
|
|
|
|
Net legal and
professional expenses and settlements
|
|
0.8
|
|
3.7
|
|
9.1
|
|
13.6
|
|
Restructuring and
asset-related charges
|
|
25.4
|
|
2.6
|
|
0.8
|
|
28.8
|
|
M&A related
costs
|
|
0.7
|
|
—
|
|
4.5
|
|
5.2
|
|
Net loss (gain) on
sale of property and equipment
|
|
1.1
|
|
(5.1)
|
|
—
|
|
(4.0)
|
|
Loss on extinguishment
and refinancing of debt
|
|
—
|
|
—
|
|
6.5
|
|
6.5
|
|
Share-based
compensation expense
|
|
3.4
|
|
1.4
|
|
7.5
|
|
12.3
|
|
Non-cash foreign
exchange transaction/translation (gain)
loss
|
|
(0.2)
|
|
1.2
|
|
(1.9)
|
|
(0.9)
|
|
Other special
items
|
|
—
|
|
(0.1)
|
|
(3.5)
|
|
(3.6)
|
|
Adjusted EBITDA from
continuing operations
|
|
$
288.0
|
|
$
66.0
|
|
$
(60.0)
|
|
$
293.9
|
|
|
|
(1)
|
Corporate and
unallocated depreciation and amortization expense includes software
accelerated amortization of $3.5 million for an ERP that we
are no longer utilizing after we completed our related obligations
under the JW Australia Transition Services Agreement during the
first quarter of 2024. North America depreciation and amortization
expense includes accelerated depreciation of $9.1 million from
reviews of equipment capacity optimization.
|
|
|
|
(2)
|
Refer to the
calculation of Adjusted EBITDA from continuing operations for a
discussion of the Special items listed above.
|
To conform with current period presentation,
certain amounts in prior period information have been
reclassified.
|
|
Nine Months
Ended
|
|
|
September 28,
2024
|
|
September 30,
2023
|
|
Net cash provided in
operating activities (1)
|
|
$
78.0
|
|
$
273.0
|
|
Less capital
expenditures (1)
|
|
118.0
|
|
80.4
|
|
Free Cash Flow
(1)(2)
|
|
$
(40.0)
|
|
$
192.6
|
|
|
|
(1)
|
Cash flow information
is inclusive of cash flows from the Australasia segment through the
divestiture date of July 2, 2023.
|
|
|
|
(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."
|
|
|
|
|
|
September 28,
2024
|
|
December 31,
2023
|
|
Total debt
|
|
$
1,210.7
|
|
$
1,226.3
|
|
Less cash and cash
equivalents
|
|
208.5
|
|
288.3
|
|
Net Debt
(1)
|
|
$
1,002.2
|
|
$
938.0
|
|
Divided by trailing
twelve months Adjusted EBITDA from continuing operations
(2)
|
|
321.7
|
|
380.4
|
|
Net Debt Leverage
(1)
|
|
3.1x
|
|
2.5x
|
|
|
|
(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
|
|
|
|
|
September 28,
2024
|
|
September 30,
2023
|
|
% Variance
|
|
Net revenues from
external customers
|
|
|
|
|
|
|
|
North
America
|
|
$
677.9
|
|
$
790.3
|
|
(14.2) %
|
|
Europe
|
|
256.8
|
|
286.7
|
|
(10.4) %
|
|
Total
Consolidated
|
|
$
934.7
|
|
$
1,077.0
|
|
(13.2) %
|
|
Adjusted EBITDA from
continuing operations (1)
|
|
|
|
|
|
|
|
North
America
|
|
$
74.8
|
|
$
100.0
|
|
(25.2) %
|
|
Europe
|
|
16.3
|
|
24.5
|
|
(33.5) %
|
|
Corporate and
unallocated costs
|
|
(9.4)
|
|
(18.7)
|
|
(49.7) %
|
|
Total
Consolidated
|
|
$
81.6
|
|
$
105.7
|
|
(22.8) %
|
|
|
|
(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."
|
|
|
Nine Months
Ended
|
|
|
|
|
September 28,
2024
|
|
September 30,
2023
|
|
% Variance
|
|
Net revenues from
external customers
|
|
|
|
|
|
|
|
North
America
|
|
$
2,068.5
|
|
$
2,375.4
|
|
(12.9) %
|
|
Europe
|
|
811.3
|
|
907.8
|
|
(10.6) %
|
|
Total
Consolidated
|
|
$
2,879.9
|
|
$
3,283.3
|
|
(12.3) %
|
|
Adjusted EBITDA from
continuing operations (1)
|
|
|
|
|
|
|
|
North
America
|
|
$
211.6
|
|
$
288.0
|
|
(26.5) %
|
|
Europe
|
|
51.2
|
|
66.0
|
|
(22.4) %
|
|
Corporate and
unallocated costs
|
|
(27.6)
|
|
(60.0)
|
|
(54.0) %
|
|
Total
Consolidated
|
|
$
235.2
|
|
$
293.9
|
|
(20.0) %
|
|
|
|
(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.