JELD-WEN Reports First Quarter 2022 Results
JELD-WEN Holding, Inc. today announced results for the three months ended March 26, 2022, including first quarter net revenue of $1,171.0 million, net loss of $0.5 million, adjusted EBITDA of $80.2 million, cash flow used in operations of $186.9 million, net loss per share of $0.01, and adjusted earnings per share (EPS) of $0.16. 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 7.2% for the first quarter driven by 10% core revenue growth
- Seven consecutive quarters of core revenue growth, including core revenue growth in each segment
- Realized 12% pricing to mitigate raw material and freight inflation
- Adjusted EBITDA decreased 18.0% for the first quarter to $80.2 million
- Significant increase in raw material, freight and labor inflation negatively impacted results
- Repurchased 1.8 million shares in the quarter or approximately 2% of total shares outstanding at year-end 2021
“I am proud of our dedicated associates who delivered another solid quarter of core revenue growth across each of our segments,” said Gary S. Michel, chair and chief executive officer. “Our improved execution and customer-centric solutions enabled us to capitalize on solid customer demand. Despite our strong core revenue growth, material increases in raw material, freight and labor inflation had a significant impact on our earnings. As we head into the second quarter, we remain laser-focused on driving above market growth through the introduction of innovative and margin accretive new products and services and additional strategic margin expansion opportunities. Given our strong order books, end market demand and initiatives in progress to drive profitable growth, we remain confident in our ability to deliver our 2022 and long-term financial commitments.”
Net revenue for the three months ended March 26, 2022 increased $78.6 million, or 7.2%, to $1,171.0 million, compared to $1,092.4 million for the same period last year. The increase in net revenue was driven by 10% core revenue growth, partially offset by a 3% adverse impact from foreign exchange. Core revenue growth was driven by price realization (+12%), partially offset by lower volume/mix of (2%).
Net loss was $0.5 million in the first quarter, compared to net income of $25.5 million in the same period last year, a decrease of $26.0 million. The decrease in net income was largely from lower gross profit due to raw material, freight and labor inflation. Adjusted net income for the first quarter decreased $13.7 million, or 49.1%, to $14.2 million, compared to $27.9 million in the same period last year.
Net loss per share for the first quarter was $0.01, compared to earnings per share of $0.25 for the same quarter last year. Adjusted EPS decreased 40.7% to $0.16, compared to $0.27 a year ago.
Adjusted EBITDA decreased $17.7 million, or 18.0%, to $80.2 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.
On a segment basis for the first quarter of 2022, compared to the same period last year:
- North America – Net revenue increased $82.7 million, or 12.9%, to $722.3 million, due to a 13% increase in core revenue. Core revenue increased due to price (+14%), partially offset by lower volume/mix (1%). Adjusted EBITDA margin was 9.3%.
- Europe – Net revenue increased $2.8 million, or 0.9%, to $323.3 million, due to an 8% increase in core revenue, partially offset by a 7% adverse impact from foreign exchange. Core revenue increased due to price (+11%), partially offset by lower volume/mix (3%). Adjusted EBITDA margin was 4.5%.
- Australasia – Net revenue decreased $6.8 million, or 5.2%, to $125.4 million, due to a 6% adverse impact from foreign exchange, partially offset by a 1% increase in core revenue. Core revenue increased due to price (+6%), partially offset by lower volume/mix (5%). Adjusted EBITDA margin was 8.3%.
Net cash flow used in operations was $186.9 million in the first quarter 2022, compared to net cash flow used in operations of $64.9 million during the same period a year ago. The increase in net cash flow used in operations was due to higher working capital investment and lower net income. Free cash flow used was $203.2 million in the first quarter 2022, compared to free cash flow used of $85.9 million during the same period a year ago. The increase in free cash flow used was due to higher net cash flow used in operations, partially offset by lower capital expenditures.
The company repurchased 1,777,266 shares in the first quarter for $40.2 million.
Total liquidity, including cash and cash equivalents and undrawn committed credit facilities, was $584.7 million as of March 26, 2022, compared to total liquidity of $837.8 million as of December 31, 2021.
To view the complete press release, 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.