Jeld-Wen Holding Inc. recently released its third quarter (3Q) results and affirmed a 2018 outlook, including impacts from a recently ended court battle with fellow door and window manufacturer Steves and Sons. In mid-October, the company previously stated that it expected to spend more than $75 million in associated 3Q legal fees. Recent results affirm those expectations, including a $76.5 million expenditure for litigation contingency, paid by September 29, 2018.

Aside from heavy legal fees, the company experienced other decreases in 3Q. Compared to the same quarter in 2017, the company’s net income dropped from $51.3 million to $28.9 million. Adjusted net income also dropped from $59.8 million this time last year, to $43 million, while diluted earnings per share (EPS) dropped to $0.27, a decrease of $0.20. The company attributes those decreases, in part, to hefty legal fees.

But Jeld-Wen’s third quarter wasn’t all red. The company’s net revenues increased 14.7 percent year over year to $1.137 billion. The Adjusted EBITDA also increased to $132.9 million, which is a gain of $4.7 million year over year.

“In the third quarter Jeld-Wen grew revenues by 14.7 percent through contributions from recent acquisitions, while core operating results were challenged by lower than anticipated volumes and unfavorable mix in certain business lines,” says Gary S. Michel, president and CEO. “Volumes were unfavorably impacted by the lingering effects of prior service issues in our U.S. windows and Northern European businesses, resulting in operational inefficiencies impacting our profitability.”

While the company has corrected those service issues, Michel says, the impact on its volumes is expected to persist in the fourth quarter 2018, he adds.

“As we look ahead towards 2019, we are confident in our ability to drive revenue and earnings growth, realize pricing to offset inflation, and deliver productivity from our business operating system, the Jeld-Wen Excellence Model, or JEM,” he says.

The company’s yearly outlook remains in line with October predictions, expecting a net revenue growth of 15- to 17-percent.

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