JELD-WEN Holding, Inc. (JELD) Misses Q1 EPS by 3c, Revenues Miss; Provides FY19 Business Outlook

JELD-WEN Holding, Inc. (NYSE: JELD) reported Q1 EPS of $0.23, $0.03 worse than the analyst estimate of $0.26. Revenue for the quarter came in at $1.01 billion versus the consensus estimate of $1.02 billion.

Highlights:

• Net revenues for the first quarter increased 6.8% year-over-year to $1.011 billion
• Adjusted EBITDA for the first quarter increased by $2.8 million year-over-year to $90.6 million
• Cash flow from operations improved $37.3 million year-over-year to a cash use of $28.0 million
• Repurchased 939,798 shares for $15.0 million during the first quarter
• Full year outlook for 2019 adjusted EBITDA increased to reflect the recent acquisition of VPI Quality Windows ("VPI"); expectations reaffirmed for full year core margin improvement

“Results for the quarter were consistent with our expectations, as we overcame anticipated headwinds in volume and product mix, as well as the unfavorable impact of foreign exchange, to deliver revenue and adjusted EBITDA growth of 6.8% and 3.2%, respectively,” said Gary S. Michel, president and chief executive officer. “I am pleased with the execution of our team in the first quarter, as we remained disciplined on pricing to offset inflation and delivered positive productivity in our manufacturing operations. We also continued to make progress on our key strategic priorities for 2019 -- maintaining strong service levels to drive core revenue growth, deploying the JELD-WEN Excellence Model across the enterprise to generate increased productivity, executing on our footprint rationalization program, and integrating our recent acquisitions.”

Outlook for 2019

• Outlook for 2019 updated to reflect the contribution of the recent acquisition of VPI; net revenue growth range remains 1% to 5% and adjusted EBITDA range increased to $475 million to $505 million
• Confidence in 2019 outlook based on pipeline of productivity cost savings initiatives and pricing actions
• Elevated capital expenditures to fund facility rationalization program, which will improve margins and return on invested capital, simplify operations, and drive efficiencies

The company’s updated outlook for adjusted EBITDA in 2019 is $475 million to $505 million, compared to its previous outlook of $470 million to $505 million, and adjusted EBITDA for 2018 of $465.3 million. The outlook still assumes net revenue growth of 1% to 5% and core adjusted EBITDA margin improvement of at least 40 basis points.

Full year 2019 capital expenditures are still expected to be in the range of $140 million to $160 million, compared to 2018 capital expenditures of $118.7 million.

“We remain confident that we will deliver our full year outlook for 2019 based on our strong visibility to cost savings projects and pricing actions and the demonstrated execution of our teams across the enterprise. While we are intently focused on driving improvement in our core operations, we will remain disciplined stewards of shareholder capital by investing in high-return organic projects, executing strategic acquisitions, and opportunistically repurchasing our shares,” said Mr. Michel.

For earnings history and earnings-related data on JELD-WEN Holding, Inc. (JELD) click here.

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