Jeld-Wen Reports Increases in Fourth Quarter and a Strong 2021 OutlookFebruary 18th, 2021 by Tara Taffera
The news was good for Jeld-Wen in the fourth quarter, and the full year for 2020, according to the company’s latest financial results announced this week. Net revenue increased by 7.7% to $1,151.3 million for the fourth quarter, driven primarily by a 5% increase in core revenue. And although net revenue decreased 1.3% for the full year, this was related to falling demand from the impacts of the COVID-19 pandemic and headwinds in the Australia housing market. Looking ahead, the outlook for 2021 is strong with net revenue growth expected to be within a range of 4 to 7%.
“In a challenging operating environment, we delivered significant revenue growth and margin expansion,” said Gary S. Michel, president and CEO. “This quarter’s results exemplify the progress we’ve made as a global team to drive improvement in our operations and consistency in our financial results through the disciplined execution of our business operating system, the Jeld-Wen Excellence Model or JEM. We achieved a number of key financial milestones in the quarter as well, delivering the highest rate of core revenue and adjusted EBITDA growth since 2017, generating record full year free cash flow, and significantly reducing net debt leverage.”
The increase in net revenue for the fourth quarter was driven primarily by a 5% positive impact from core revenue and a 3% positive impact from foreign exchange, the company reports. Core revenue increased due to a 4% pricing benefit and a 1% positive contribution from volume/mix, according to the company.
Net income was $43.2 million during the fourth quarter, compared to net income of $7.8 million in the same quarter last year, an increase of $35.4 million. The increase in net income was primarily due to higher gross profit from improved price realization and operational improvements, as well as tax benefits, partially offset by higher SG&A. Adjusted net income for the fourth quarter increased $21.8 million, or 90.5%, to $45.9 million, compared to $24.1 million in the same quarter last year, according to Jeld-Wen.
Honing in on North America, net revenue increased $29 million, or 4.5%, to $671.5 million, due to a 5% increase in core revenue.
For the full year 2020 results, net revenue decreased $54.1 million, or 1.3%, to $4.236 billion, compared to $4.290 billion for the same period last year. The decrease was driven by a 2% decrease in core revenues. Net income increased $28.6 million, or 45.4%, to $91.6 million, compared to $63 million in the same period last year. The increase in net income was primarily due to higher gross profit from favorable price and productivity savings, and a lower effective tax rate.
“The momentum in growth and margin expansion, the strength of our balance sheet, and demand tailwinds from favorable market conditions, position us nicely to deliver further progress in 2021,” said Michel.