JELD-WEN Holding, Inc. (JELD) Misses Q2 EPS by 6c, Revenues Miss
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JELD-WEN Holding, Inc. (NYSE: JELD) reported Q2 EPS of $0.45, $0.06 worse than the analyst estimate of $0.51. Revenue for the quarter came in at $1.12 billion versus the consensus estimate of $1.16 billion.
Highlights:
- EPS for the second quarter was $0.22 compared to $0.32 for the same quarter last year, a decrease of $0.10.
- Adjusted EPS was $0.45, compared to $0.47 a year ago.
- Net revenues for the second quarter decreased 4.6% year-over-year to $1.119 billion
- Adjusted EBITDA for the second quarter decreased by $6.5 million year-over-year to $127.6 million; adjusted EBITDA margin was unchanged at 11.4%
- Core adjusted EBITDA margins expanded in North America and Australasia year-over-year despite lower volumes in both segments
- Cash flow from operations for the six months ended June 29, 2019 improved $50.9 million year-over-year to $42.6 million
- Full year 2019 outlook for net revenue growth reduced due to second quarter performance and revised expectations for market demand during the second half; expectations for adjusted EBITDA margins remain unchanged while adjusted EBITDA range lowered to $450 million to $480 million from a range of $475 million to $505 million
- Previously reported financial statements revised to correct errors primarily in the Europe reporting segment; amounts are not material to the periods impacted
“I am pleased with the progress we’ve made on cost productivity initiatives, footprint rationalization and modernization projects and the disciplined deployment of our business operating system, the JELD-WEN Excellence Model or JEM. Against a backdrop of soft demand, we expanded adjusted EBITDA margins in North America and Australasia in the second quarter, demonstrating the power of what can be achieved through the execution of JEM,” said Gary S. Michel, president and chief executive officer. “I am disappointed with our revenueresults in the quarter, driven by the sharp deterioration we saw in the Australasia market late in the quarter and the demand softness in North America new construction. I am confident, however, that we will demonstrate further improvement in execution through the continued deployment of JEM as we progress toward our long-term strategic and financial goals.”
Outlook for 2019
- Outlook for 2019 updated to reflect revised expectations for market demand in Australasia and North America, and CMD divestiture
- Net revenue growth range lowered to approximately flat, from 1% to 5% previously and adjusted EBITDA range lowered to $450 million to $480 million
- Outlook for adjusted EBITDA margins remains unchanged as productivity and favorable price/cost offset volume weakness
The company’s updated outlook for revenue growth in 2019 is now approximately flat versus 2018, compared to its previous outlook of 1% to 5% growth. Adjusted EBITDA in 2019 is now expected to be within a range of $450 million to $480 million, compared to the prior outlookof $475 million to $505 million, and adjusted EBITDA for 2018 of $459.2 million.
Full year 2019 capital expenditures remain in the range of $140 million to $160 million, compared to 2018 capital expenditures of $118.7 million.
“Our engaged associates are driving improved execution that can be seen across the organization and expect to deliver productivity in every market environment. I am confident that our investments in innovation and initiatives to grow our market share, coupled with the ongoing improvement in our productivity, will lead to substantial increases in revenue, profitability, and free cash flow,” said Mr. Michel.
For earnings history and earnings-related data on JELD-WEN Holding, Inc. (JELD) click here.
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