JELD-WEN Delivers Revenue Growth and Margin Expansion in Fourth Quarter 2021
JELD-WEN Holding, Inc. announced results for the year ended December 31, 2021, including fourth quarter net revenue of $1,286.9 million, net income of $42.1 million, adjusted EBITDA of $120.1 million, cash flow from operations of $175.7 million, earnings per share (EPS) of $0.45, and adjusted EPS of $0.48. Comparability is to the same period in the prior year, unless otherwise noted. References to “core” financial results exclude the impact of foreign exchange and acquisitions completed in the last twelve months.
- Net revenue increased 11.8% for the fourth quarter driven by improvement in pricing and volume/mix
- Core revenue grew 10% in 2021, with growth in each segment
- Adjusted EBITDA increased 4.2% for the full year to $465.1 million
- Repurchased 11.6 million shares in 2021 or approximately 11.5% of total shares outstanding at year-end 2020
- Issued 2022 outlook including revenue growth between 7% and 10% and adjusted EBITDA of $520 million to $565 million
“Our associates’ commitment to serving customers and relentless focus on continuous improvement delivered solid financial performance in 2021 including record revenue and core revenue growth,” said Gary S. Michel, chair, president, and chief executive officer. “Our premier performance culture is a competitive advantage that is driving improved execution including industry leading lead times and setting the foundation for future above-market growth.”
“We head into 2022 with robust demand across our end markets and with confidence that our commercial and operational excellence initiatives are set to drive breakthrough growth and margin expansion,” said Michel. “We expect these initiatives combined with returns-focused capital deployment to drive sustained improvement in shareholder value.”
Fourth Quarter 2021 Results
- Core revenue increased 12% in the fourth quarter; the sixth consecutive quarter of core revenue growth
- Core revenue increased in each reporting segment, led by accelerated price realization in North America and Europe segments
- Realized 11% pricing to mitigate unprecedented raw material and freight inflation
- Core adjusted EBITDA margins expanded 110 basis points in Australasia segment
- Adjusted earnings per share increased 6.7% to $0.48
Net revenue for the three months ended December 31, 2021 increased $135.7 million, or 11.8%, to $1,286.9 million, compared to $1,151.3 million for the same period last year. The increase in net revenue was driven by 12% core revenue growth. Core revenue growth was driven by pricing (+11%) and volume/mix of (+1%).
Net income for the fourth quarter decreased $1.2 million to $42.1 million, compared to $43.2 million in the same period last year. The decrease in net income was largely from lower gross profit due to inflation and higher income tax expense, partially offset by lower SG&A. Adjusted net income for the fourth quarter decreased $1.3 million, or 2.7%, to $44.6 million, compared to $45.9 million in the same period last year.
EPS for the fourth quarter increased 7.1% to $0.45, compared to $0.42 for the same quarter last year. Adjusted EPS increased 6.7% to $0.48, compared to $0.45 a year ago.
Adjusted EBITDA increased $4.6 million, or 4.0%, to $120.1 million, compared to the same quarter last year. Adjusted EBITDA margin declined due to higher raw material, freight and labor inflation, partially offset by higher price realization and lower SG&A expense.
On a segment basis for the fourth quarter of 2021, compared to the same period last year:
- North America – Net revenue increased $101.2 million, or 15.1%, to $772.7 million, due to a 15% increase in core revenue. Core revenue increased due to price (+14%) and volume/mix (+1%). Adjusted EBITDA margin was 10.5%.
- Europe – Net revenue increased $25.8 million, or 7.7%, to $359.6 million, due to a 10% increase in core revenue, partially offset by a 2% adverse impact from foreign exchange. Core revenue increased primarily due to price (+10%). Adjusted EBITDA margin was 9.7%.
- Australasia – Net revenue increased $8.6 million, or 5.9%, to $154.6 million, due to a 6% increase in core revenue. Core revenue increased due to volume/mix (+4%) and price (+2%). Adjusted EBITDA margin was 14.7%, an improvement of 100 basis points.
Full Year 2021 Results
- Net revenue increased 12.7%, driven by a 10% increase in core revenue and a 3% foreign exchange benefit.
- Adjusted EBITDA grew 4.2%
- Net income increased 84.3% to $168.8 million
Net revenue for the twelve months ended December 31, 2021 increased $536.0 million, or 12.7%, to $4.772 billion, compared to $4.236 billion for the same period last year. The increase was driven by a 10% increase in core revenues and a 3% foreign exchange benefit. Net income increased $77.2 million, or 84.3%, to $168.8 million, compared to $91.6 million in the same period last year. The increase in net income was primarily due to higher gross profit from price realization and volume/mix and higher foreign exchange gains, partially offset by higher income tax expense. Adjusted EBITDA increased $18.7 million, or 4.2%, to $465.1 million, compared to $446.4 million in the same period last year. Adjusted EBITDA margins decreased 80 basis points to 9.7%, from 10.5% in the same period a year ago.
Cash Flow and Balance Sheet
- Full year adjusted operating cash flow was $288.4 million, a decrease of $84.7 million
- Full year adjusted free cash flow totaled $188.7 million, a decrease of $87.5 million
Net cash flow from operations in 2021 declined $180.0 million year-over-year to $175.7 million due to higher working capital investment and litigation settlements, partially offset by higher net income. Adjusted operating cash flow totaled $288.4 million in 2021, compared to adjusted operating cash flow of $373.1 million during the same period a year ago. The decrease in adjusted operating cash flow was primarily due to higher working capital investment, partially offset by higher net income. Adjusted free cash flow decreased to $188.7 million, from $276.2 million a year ago, due primarily to lower adjusted operating cash flow.
The company repurchased 1,814,199 shares in the quarter for $45.7 million. For the full year, the company repurchased 11,564,009 or 11.5% of total shares outstanding at December 31, 2020, for $323.7 million.
Total liquidity, including cash and cash equivalents and undrawn committed credit facilities, was $837.8 million as of December 31, 2021, compared to total liquidity of $1,121.5 million as of December 31, 2020.
Full Year 2022 Outlook
- Full year 2022 net revenue growth expected to be within a range of 7% to 10%
- Adjusted EBITDA expected to be within a range of $520 million to $565 million
- Full year 2022 capital expenditures are expected to be within a range of $130 million to $150 million
For the full fourth Quarter results, click here.
Headquartered in Charlotte, N.C., JELD-WEN is a leading global manufacturer of high-performance interior and exterior building products, offering one of the broadest selections of windows, interior and exterior doors, and wall systems. JELD-WEN delivers a differentiated customer experience, providing construction professionals with durable, energy-efficient products and labor-saving services that help them maximize productivity and create beautiful, secure spaces for all to enjoy. The JELD-WEN team is driven by innovation and committed to creating safe, sustainable environments for customers, associates, and local communities. The JELD-WEN family of brands includes JELD-WEN® worldwide; LaCantina™ and VPI™ in North America; Swedoor® and DANA® in Europe; and Corinthian®, Stegbar®, and Breezway® in Australia. Visit jeld-wen.com for more information.
Source: JELD-WEN Holding, Inc.