JELD-WEN Holding Inc. announced results for the three months ended April 1. After taking into account reporting the Australasia segment as discontinued operations, the company is raising its full-year guidance on the remaining business to reflect its first-quarter results and ongoing cost-reduction activities.
First quarter results
Net revenue for the three months ended April 1 increased $51.6 million, or +4.4 percent, to $1,222.6 million, compared to $1,171.0 million for the same period last year. The increase in net revenue was driven by +7 percent core revenue growth, partially offset by a -3 percent adverse foreign exchange impact. Core revenue growth was driven by price realization of +10 percent mostly related to prior year increases and continuing cost inflation partially offset by lower volume/mix (-3 percent).
Net income was $15.1 million in the first quarter, compared to net loss of ($0.5) million in the same period last year, an increase of $15.7 million. The growth in net income was driven by positive price/cost, partially offset by lower volume/mix. Adjusted net income for the first quarter increased $7.8 million, to $29.6 million, compared to $21.8 million in the same period last year.
Earnings per share (EPS) for the first quarter was $0.18, compared to net loss per share of ($0.01) for the same quarter last year. Adjusted EPS for the first quarter was $0.35 compared to Adjusted EPS of $0.24 in the same quarter last year.
Adjusted EBITDA increased $13.3 million, to $93.5 million, compared to the same quarter last year. Adjusted EBITDA Margin increased 80 basis points to 7.7 percent, as positive price/cost was partially offset by lower volume/mix.
Updated 2023 guidance
JELD-WEN is updating its guidance to reflect the solid first-quarter performance, ongoing cost-reduction actions and the impact of the Australasia segment moving to discontinued operations following the April 17 announcement of the agreement to sell the segment.
The company now expects 2023 net revenue of $4.0 to $4.4 billion, which reflects a low double digit decline in volume/mix across its portfolio of products and geographies in North America and Europe. Core revenues are forecasted to be down 4 percent to 8 percent as carry-forward price realization partially offsets lower market demand.
Further, the company now expects 2023 adjusted EBITDA to be within the range of $330 to $370 million driven by lower year-over-year volumes and the non-recurrence of certain other income items partially offset by improved productivity and cost reductions.
JELD-WEN’s take on the results
“We made progress in the first quarter to simplify and strengthen JELD-WEN which, combined with more favorable than expected market conditions, resulted in improved financial performance,” says CEO William Christensen. “During this time of weaker demand, our associates carefully controlled costs while continuing to deliver on our customers’ expectations. In addition, to further simplify our global operations, we recently announced the sale of our Australasia business to Platinum Equity, which will allow us to focus on our two largest regions and strengthen our balance sheet by paying down debt.”
“Driven by our solid first quarter results, ongoing cost reduction activities and the move of our Australasia segment to discontinued operations, we are raising our 2023 guidance on the remaining business,” Christensen continues. “However, with the continued macro-economic uncertainty in North America and Europe, we are taking a pragmatic view of the market and our financial outlook for the year.”
