Jeld-Wen, Masonite Report Third Quarter IncreasesNovember 8th, 2022 by Editor
Third-quarter financial reports are rolling in and at least two major players in the door and window manufacturing industry are reporting similar, steady increases over last year’s third quarter.
Jeld-Wen Holdings closed its third quarter on September 24 and dropped the report on Halloween. The company reports a 13% increase in net revenue, resulting in $1,295.8 million. Core revenue growth included 15% price realization and 3% positive volume/mix. Adjusted EPS was $0.71, compared to adjusted EPS of $0.45 in the same quarter a year ago, and adjusted EBITDA increased 17.9% in the third quarter to $116.5 million; adjusted EBITDA margins expanded 40 basis points to 9.0%.
“Jeld-Wen has tremendous potential and, with increased focus and discipline, we believe that we can meet our financial targets and drive more value for customers, associates and shareholders for the long-term,” says Kevin Lilly, interim chief executive officer. “I’m proud of our associates globally who performed well this quarter despite significant change within the company and in the face of a challenging operating environment.”
Net loss was $33.2 million in the third quarter, compared to net income of $40.5 million in the same period last year, a decrease of $73.7 million. The company attributes that loss to a $54.9 million pre-tax, non-cash goodwill impairment charge taken within its Europe segment due to deteriorated macroeconomic conditions, including significant cost inflation and increased interest rates.
“Although we have more work to deliver our full potential, we made meaningful progress this quarter on initiatives to improve execution and performance,” Lilly continues. “We announced a strategic review of our Australasia segment, took additional cost actions and strengthened customers relationships, while laying the groundwork for further strategic action. The board of directors and the company’s leadership are closely aligned on these actions and believe they will improve execution, generate more consistent financial performance and enhance shareholder value.”
While net revenue guidance is unchanged, Jeld-Wen has updated its outlook for full year 2022 adjusted EBITDA to be between $400 million and $420 million, a reduction from the previous outlook of $430 million to $450 million.
Masonite International closed its third quarter on October 2, issuing its third-quarter financial report yesterday. It, too, reports double-digit percentage increases. Net sales were up 12% from the third quarter of 2021, with a 13% year-to-date increase over the same three quarters of last year.
The company’s adjusted third quarter EPS reportedly is up 27% from last year, and the year-to-date adjusted EPS is 30% higher than it was in 2021. Masonite’s adjusted EBITDA is up 7% for the quarter and year-to-date is 12% more than it was over the first nine months of last year.
Masonite’s results don’t include the definitive agreement the company has signed to acquire Endura Products, which it expects will “enable the combined organization to accelerate innovation and propel growth into new and existing markets.” The acquisition is expected to close near the end of 2022, pending regulatory approval and the satisfaction of customary closing conditions.
“Our core North American Residential business continued to deliver outstanding results this quarter, allowing Masonite to achieve double digit net sales growth despite significant macroeconomic headwinds in our European segment,” says Howard Heckes, president and CEO. “The pending acquisition of Endura Products, a U.S. manufacturer of innovative door system components, will drive further momentum and fuel our Doors That Do More strategy.”
Entering the fourth quarter, Heckes says teams remain focused on the “disciplined execution” of the company’s strategy.