JELD-WEN Holding, Inc. (JELD) Misses Q4 EPS by 4c, Revenues Beat

JELD-WEN Holding, Inc. (NYSE: JELD) reported Q4 EPS of $0.24, $0.04 worse than the analyst estimate of $0.28. Revenue for the quarter came in at $1.07 billion versus the consensus estimate of $1.05 billion.

Highlights:

• Net revenues for the fourth quarter decreased 2.1% year-over-year to $1.069 billion, unfavorably impacted by sequential weakness in Australia residential new construction demand and foreign currency
• Fourth quarter core revenue growth in North America of 1% demonstrates improving North America residential new construction demand
• Adjusted EBITDA for the fourth quarter decreased by $16.8 million, or 15.9%, year-over-year to $89.2 million; adjusted EBITDA margin decreased by 130 basis points to 8.4%
• Cash flow from operations for the twelve months ended December 31, 2019 improved $83.0 million year-over-year to $302.7 million
• Outlook for 2020 includes net revenue growth of 1% to 4% and adjusted EBITDA of $450 million to $495 million

“2019 was a pivotal year as we advanced deployment of the JELD-WEN Excellence Model (JEM) across the enterprise and delivered positive productivity, even as we faced significant market headwinds in residential new construction demand in our North America and Australasia segments,\" said Gary S. Michel, president and chief executive officer. \"During the year, we made significant progress with our footprint rationalization and modernization program and launched innovative new products to drive future growth. Our 65% improvement in 2019 free cash flow demonstrates that JEM has enhanced our working capital efficiency and improved our quality of earnings.

"Our fourth quarter results were challenged by continued market demand headwinds in Australasia and operational inefficiencies in our North America segment. While I am pleased that we sequentially improved our North America performance from the third quarter, I\'m disappointed that we did not return to margin expansion.

"Looking to 2020, we have visibility to several catalysts that will drive core revenue growth and margin improvement. Demand drivers in residential new construction are supportive of growth in 2020, with improving housing fundamentals in North America and early signs of recovering demand in Australia later in the year. Improved pricing, particularly in North America, will expand margins and allow us to accelerate product and service innovation for our customers. We also have good visibility to cost savings and operational improvements from our healthy global pipeline of productivity and footprint rationalization and modernization projects."

Outlook for 2020

• Net revenue growth expected to be within a range from 1% to 4%
• Adjusted EBITDA anticipated to be within the range from $450 million to $495 million
• Full year 2020 projected capital expenditures is expected to be within the range of $135 million to $155 million

"I remain confident in our long-term 15% adjusted EBITDA margin target and believe that 2020 will be an inflection point in demonstrating significant progress towards this goal," said Gary S. Michel, president and chief executive officer. "As our free cash flow continues to improve, we will make disciplined investments, strategic acquisitions, and share repurchases, while also ensuring that we achieve sustained reduction in our net debt leverage ratio."

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

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