JELD-WEN Holding, Inc. (JELD) Tops Q1 EPS by 3c, Revenues Beat

JELD-WEN Holding, Inc. (NYSE: JELD) reported Q1 EPS of $0.13, $0.03 better than the analyst estimate of $0.10. Revenue for the quarter came in at $979.2 million versus the consensus estimate of $976.59 million.

First Quarter 2020 Results

• Favorable price/cost for the sixth consecutive quarter
• Third consecutive quarter of core margin improvement in Europe segment
• Volume/mix headwinds due to sequentially worse Australasia market demand, government mandated plant closures in Europe, and unfavorable volume/mix in North America
• Core adjusted EBITDA margins declined 120 basis points

Highlights:

• Net revenues for the first quarter decreased 3.1% year-over-year to $979.2 million, unfavorably impacted by volume/mix in each segment
• Adjusted EBITDA margins of 7.6%, slightly ahead of previous outlook
• Implemented comprehensive COVID-19 response plan with cost savings measures globally, while also prioritizing associate safety and flexibility to meet customer demand
• Withdrew 2020 financial guidance due to global demand uncertainty related to COVID-19 pandemic
• Pro forma first quarter liquidity of approximately $700 million reflecting recently completed transactions

"The health and security of our associates, channel partners, suppliers, and other business partners remains our number one priority as we work to safely maintain production, satisfy customer orders, and prepare for an eventual recovery in end market demand," said Gary S. Michel, president and chief executive officer. "In many locations, JELD-WEN has been identified as an `essential business' or `life sustaining' enterprise, allowing us to maintain operations and meet customer demand. In these locations, we are following World Health Organization and Centers for Disease Control and Prevention recommendations and adhering to local and regional guidelines, while adopting global best practices and utilizing JELD-WEN Excellence Model tools to ensure that we are minimizing exposure risk and protecting our associates."

"In light of the uncertain impact of COVID-19, we moved decisively in the first quarter to reduce operating costs and defer non-essential capital investment, maintain the integrity of our supply chain, and manage our cash and liquidity. We continue to service customers and respond quickly to changing market conditions," said Mr. Michel. "Our cost reduction measures include compensation reductions for our executive leadership team and board of directors, as well as other programs to temporarily reduce our salary costs globally. We have also suspended all discretionary spending and we continue to seek ways to increase overall liquidity."

"I am proud of how our associates have risen to this unprecedented challenge, as our COVID-19 response is expected to have an immediate, positive impact on our cost structure during the second quarter, while helping to further improve safety and maintain business continuity. We will emerge from this crisis a stronger, more unified JELD-WEN."

"I have the utmost confidence in each member of our global team to rise to the unprecedented challenges brought on by the COVID-19 pandemic," said Gary S. Michel, president and chief executive officer. "We will continue to provide our customers with the highest quality products and services, and prudently and safely manage every aspect of our business during this crisis. We have an amazing team, a sound strategy, and great assets, and will emerge from this a stronger JELD-WEN."

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

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