Jeld-Wen, Huttig Report Strong 3Q Financial ResultsNovember 5th, 2021 by Editor
Jeld-Wen Holding Inc. and Huttig Building Products Inc. each announced financial results for the third quarter of 2021, with both companies making out better than this time a year ago.
Jeld-Wen’s numbers are from three and nine months ended September 25, 2021, and the improved results were—in part—aided by the conclusion of a lawsuit. The company reports third quarter net revenue of $1.15 million, net income of $40.5 million, adjusted EBITDA of $98.9 million, net cash flow from operations of $135.3 million, earnings per share (EPS) of $0.41, and an adjusted EPS of $0.45.
“I am proud of our associates globally, who moved swiftly this quarter to meet high customer demand, overcoming the impact of wide-spread labor constraints, supply chain challenges and COVID-19 operating restrictions,” says Gary S. Michel, chairperson, president and CEO. “Through the disciplined deployment of our business operating system, the Jeld-Wen Excellence Model (JEM), our commercial and operational excellence programs continue to generate industry leading order fulfillment, deliver positive price realization, alleviate pressure from unprecedented labor and supply chain constraints and drive new business opportunity.”
The net revenue for the three months ended September 25, 2021, increased $33.7 million, or 3.0%, compared to the same period last year. According to the latest release, the increase in net revenue was primarily driven by 2% core revenue growth and a 1% positive impact from foreign exchange. Core revenue growth was driven by a 7% pricing benefit, partially offset by a 5% volume/mix headwind due to labor and supply chain constraints and operating restrictions in certain markets related to COVID-19 mandates and adverse weather events, the company reports.
Net income for the third quarter increased $15.1 million to $40.5 million, compared to net income of $25.5 million in the same period last year. Such a significant increase came largely in part to lower litigation-related expenses and reduced income tax expense, the company reports, though officials also point to the fact that lower gross margin partially offset net income.
Jeld-Wen’s financial report, dated November 1, also notes that its year-to-date gross margin expanded 40 basis points, a strong order and backlog growth in each segment, and “record book-to-bill in North America segment.”
The company repurchased approximately 8 million shares in the quarter for $221.1 million, re-affirmed its outlook for full year 2021 revenue growth and updated assumptions for adjusted EBITDA range.
“Demand remains robust in each of our end markets with strong order and backlog growth, including accelerating order activity through the quarter in our North America segment,” says Michel. “With a favorable housing backdrop ahead, I remain confident that we will deliver on the growth plans and financial targets we set forth in our inaugural investor day in May.”
Meanwhile, Huttig, a domestic distributor of millwork, building materials and wood products, reported financial results for the third quarter ended September 30, 2021, with net sales coming in at $245.3 million, a full $32.6 million, or 15.3%, higher than the $212.7 million the company pulled in for the same period last year.
Gross margins increased to 23.2%, up from 2020’s third quarter at 20.1%, and net earnings increased to $18.7 million, a jump compared to $6.1 million from the same time frame in 2020. Total liquidity also saw a significant increase from $69.8 million in 2020 to $168.5 million this year, while adjusted EBITDA reportedly increased to $17.5 million, over the $8.5 million the company had this time last year.
“Despite the continued challenging business environment related to severe supply chain disruption and a lack of available labor, our organization pulled together once again to generate another quarter of strong financial results,” says Jon Vrabely, president and CEO of Huttig. “Our strong performance in the quarter, and on a year-to-date basis, are a direct result of the fortitude and dedication of our associates, and the actions we have taken over the past two years to meaningfully and sustainably improve our financial model.”