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Sep 24, 2022

JELD-WEN Q3 2022 Earnings Report

Reported third quarter results with revenue increase driven by core revenue growth and adjusted EBITDA increase, but experienced a GAAP net loss due to goodwill impairment and other charges.

Key Takeaways

JELD-WEN Holding, Inc. reported a 13.0% increase in net revenue for the third quarter of 2022, driven by an 18% core revenue growth. However, the company experienced a GAAP net loss of $33.2 million, or $0.39 per share, compared to a net income of $40.5 million, or $0.41 per share, in the same quarter last year. Adjusted EPS was $0.71, compared to $0.45 in the same quarter a year ago. The company has updated its outlook for full year 2022 adjusted EBITDA to be between $400 million and $420 million.

Net revenue increased by 13.0% driven by 18% core revenue growth.

GAAP net loss was $33.2 million or $0.39 per share, compared to net income of $40.5 million or $0.41 per share during the same quarter a year ago.

Adjusted EPS was $0.71, compared to adjusted EPS of $0.45 in the same quarter a year ago.

Adjusted EBITDA increased 17.9% to $116.5 million; adjusted EBITDA margins expanded 40 basis points to 9.0%.

Total Revenue
$1.3B
Previous year: $1.15B
+13.0%
EPS
$0.71
Previous year: $0.45
+57.8%
Adjusted EBITDA
$117M
Adjusted EBITDA Margin
9%
Gross Profit
$249M
Previous year: $228M
+9.2%
Cash and Equivalents
$200M
Previous year: $444M
-55.0%
Free Cash Flow
$70.7M
Previous year: $70.8M
-0.1%
Total Assets
$3.61B
Previous year: $3.83B
-5.5%

JELD-WEN

JELD-WEN

JELD-WEN Revenue by Segment

JELD-WEN Revenue by Geographic Location

Forward Guidance

The company has updated its outlook for full year 2022 adjusted EBITDA to be between $400 million and $420 million and expects full-year 2022 capital expenditures to be within a range of $85 million to $95 million.

Positive Outlook

  • Net revenue guidance is unchanged, with net revenues still expected to increase by 4% to 6%.
  • Full year 2022 capital expenditures are expected to be within a range of $85 million to $95 million.

Challenges Ahead

  • Adjusted EBITDA is updated to a range of $400 million to $420 million from the previous outlook of $430 million to $450 million.
  • The primary drivers to lower earnings compared to the previous outlook include persistent inflation and reduced savings from productivity.
  • Uncertainty regarding the future performance of the global economy.
  • Continuing conflict in Ukraine.
  • Ongoing disruptions in global supply chains.

Revenue & Expenses

Visualization of income flow from segment revenue to net income