Jeld-Wen announced results for the three months and full year ended December 31, 2018 and provided its 2019 outlook along with an announcement of an upcoming leadership transition with its board of directors.

The company reported a net income for the fourth quarter of $39.7 million, an increase of $133.4 million year over year, bringing full year net income to $144.3 million. This prompts an outlook for full year 2019 to include net revenue growth of 1- to 5-percent and adjusted EBITDA of $470 million to $505 million.

“While core operating results in the fourth quarter were challenged in certain businesses due to weak volumes, unfavorable mix, and input cost inflation, we delivered core margin expansion in our North America and Australasia segments,” said Gary S. Michel, president and chief executive officer. “We made solid progress in the quarter with the deployment of our business operating system, the Jeld-Wen Excellence Model or JEM, driving improved service levels and favorable labor efficiencies. These improvements have strengthened our relationships with channel partners and customers, which will contribute core revenue growth and margin expansion in 2019.”

Net revenues for the fourth quarter increased 11.8-percent year over year to $1.091 billion, bringing full year revenue to $4.347 billion and net revenue growth for the fourth quarter was driven by a 14-percent contribution from acquisitions, partially offset by a 2-percent foreign exchange headwind, while core revenues were unchanged.

Jeld-Wen’s holdings in North America saw net revenues increased $71.5 million, or 13 percent, to $621.6 million, due primarily to a 14-percent contribution from recent acquisitions, partially offset by a 1-percent decline in core revenues. Core revenue decline from volume/mix of 4-percent and was partly offset by a 3-percent pricing benefit, according to the financial results.
Adjusted EBITDA increased $7.1 million, or 11.6-percent, to $68.2 million. Adjusted EBITDA margin declined by 10 basis points to 11 percent, as foreign exchange and the dilutive impact of recent acquisitions more than offset a 40 basis point improvement in core adjusted EBITDA margins. The 2019 Outlook includes core revenue growth and margin expansion and is based on pipeline of productivity, cost saving initiatives and pricing actions. Elevated capital expenditures are suspected to fund a facility rationalization program which will improve margins and return on invested capital, simplify operations and drive efficiencies, according to the company.

Jeld-Wen also announced that Kirk S. Hachigian, non-executive chairman, has shared his intention to retire from the board of directors in May of 2019. The board has selected Matthew Ross (who joined the board of directors in 2011) to succeed Hachigian as non-executive chairman when he retires.

“We are very pleased with the progress made under Kirk’s leadership, and thank him for his many years of service,” said Ross. “With the new management team carrying forward the momentum created by Kirk, the board of directors and I believe Jeld-Wen is poised to create significant shareholder value.”

Leave a Reply

Your email address will not be published. Required fields are marked *