CHARLOTTE, N.C., May 6, 2024 /PRNewswire/ -- JELD-WEN Holding, Inc. (NYSE:JELD) ("JELD-WEN" or the "Company") today announced results for the three months ended March 30, 2024. Additionally, the Company has updated its full year 2024 guidance. Comparability is to the same period in the prior year and all periods presented reflect the Company's Australasia segment as a discontinued operation, as appropriate and unless otherwise noted. First Quarter Highlights Net revenues from continuing operations of $959.1 million decreased (11.2%) in the first quarter driven by a (12%) Core Revenue decline as a result of (12%) lower volume/mix due to weak macro-economic conditions. Net loss from continuing operations was $(27.7) million or $(0.32) per share, compared to $8.5 million, or $0.10 per share during the same quarter a year ago. Operating income/(loss) margin was (2.9)% and 2.8% for the quarters ended March 30, 2024 and April 1, 2023, respectively. Adjusted EBITDA from continuing operations was $68.7 million, a decrease of $(10.6) million compared to $79.3 million during the same quarter a year ago. Adjusted EBITDA Margin from continuing operations was 7.2%, a decrease of (10) basis points year-over-year as the impact of lower volume/mix was mostly offset by productivity improvements and higher other income. "We continue to execute on our transformation journey and position JELD-WEN for improved performance," said Chief Executive Officer William J. Christensen. "In the first quarter, despite the challenging demand environment, we made good progress on streamlining operations and improving customer experience. I am proud of how our associates remained focused on meeting our customers' expectations while working diligently to implement the necessary changes to fix our foundation." First Quarter 2024 Results Net revenues from continuing operations for the three months ended March 30, 2024 was $959.1 million, a decrease of $(121.4) million, or (11.2%), compared to $1,080.5 million for the same period last year. The decrease in net revenues was driven by a (12%) decline in Core Revenue as a result of (12%) lower volume/mix due to weak macro-economic conditions. Net loss from continuing operations was $(27.7) million in the first quarter, compared to $8.5 million in the same period last year, a decrease of $(36.2) million. The decrease was mostly driven by lower volume/mix and increased costs to execute on JELD-WEN's transformation journey, partially offset by higher other income. Adjusted Net Income from continuing operations for the first quarter was $18.4 million, a decrease of $(3.2) million compared to $21.6 million in the same period last year.  Net loss per share from continuing operations for the first quarter was $(0.32), compared to EPS of $0.10 in the same quarter last year. Adjusted EPS from continuing operations for the first quarter was $0.21 compared to $0.25 in the same quarter last year. Adjusted EPS for the quarter ended March 30, 2024 excludes net after-tax charges of $46.1 million, or $0.53 per diluted share, associated mainly with costs to execute on the Company's transformation journey. Adjusted EPS for the quarter ended April 1, 2023 excludes net after-tax charges of $13.1 million or $0.15 per diluted share. Adjusted EBITDA from continuing operations was $68.7 million, a decline of $(10.6) million compared to $79.3 million during the same quarter last year. Adjusted EBITDA Margin from continuing operations was 7.2%, a decline of (10) basis points as lower volume/mix was mostly offset by productivity improvements and higher other income. On a segment basis for the first quarter of 2024, compared to the same period last year: North America - Net revenue was $680.0 million, a decline of $(88.0) million, or (11.5%), driven by a (12%) decline in Core Revenue due to (11%) lower volume/mix related to weakened market demand. Net income was $16.3 million, a decline of $(19.0) million year-over-year. Operating income margin was 2.9% for the quarter ended March 30, 2024 and 7.0% for the quarter ended April 1, 2023. Adjusted EBITDA was $61.2 million, a decline of ($18.0) million while Adjusted EBITDA Margin decreased by (130) basis points to 9.0%. Europe - Net revenue was $279.1 million, a decline of $(33.4) million, or (10.7%), due to a (12%) decline in Core Revenue. Core Revenue declined due to lower volume/mix (14%) related to market softness across the region, partially offset by a 2% benefit from price realization. Net income was $0.0 million a decline of $(7.3) million year-over-year. Operating income margin was 0.9% for the quarter ended March 30, 2024 and 1.7% for the quarter ended April 1, 2023. Adjusted EBITDA was $14.5 million, a decline of $(3.1) million, while Adjusted EBITDA Margin decreased by (40) basis points to 5.2%. Cash Flow(1) Net cash flow used in operations was ($11.0) million for the first quarter of 2024, a $(10.3) million increase in use of cash compared to net cash flow used in operations of ($0.7) million during the same period a year ago. The decreased operating cash flow was due to lower net income of ($42.9) million and a decline in changes in accrued expenses of ($28.6) million, both of which were mostly offset by a $62.7 million improvement in cash flow associated with working capital. Capital expenditures in the first quarter of 2024 increased by $11.1 million to $34.7 million, up from $23.6 million in the first quarter of 2023. Free Cash Flow used in the first quarter of 2024 was ($45.7) million, compared to Free Cash Flow used in the first quarter of 2023 of $(24.3) million. (1)  Cash flow for the three months ended April 1, 2023 includes the Australasia segment. Full Year 2024 Guidance JELD-WEN is lowering its 2024 revenue guidance to a range of $3.9 to $4.1 billion which reflects Core Revenues that are down 5% to 9% compared to 2023. The Company's new guidance range reflects a softening macro-environment across the company's portfolio of products and geographies in North America and Europe. Further, and driven primarily by the updated demand outlook, the Company now expects that 2024 Adjusted EBITDA will be within the range of $340 to $380 million. Revenue Adjusted EBITDA Core Revenue Decline February 2024 Guidance $4.0 to $4.3 billion $370 to $420 million Flat to (7%) Updated Guidance $3.9 to $4.1 billion $340 to $380 million (5%) to (9%) Due to the reduced Adjusted EBITDA guidance, the Company now expects 2024 operating cash flow to be approximately $225 million compared to the previous outlook of approximately $250 million. As part of the Company's plan to improve its financial results, JELD-WEN expects to use a portion of 2024 operating cash flows to invest in itself with capital expenditures of approximately 4% of sales as well as non-recurring cash expenses of approximately $100 million. Conference Call Information JELD-WEN management will host a conference call on May 7, 2024 at 8 a.m. ET, to discuss the Company's financial results. Interested investors and other parties can access the call either via webcast by visiting the Investor Relations section of the Company's website at https://investors.jeld-wen.com, or by dialing 888-596-4144 from the United States or +1-646-968-2525 internationally and using ID 7982813. A slide presentation highlighting the Company's results is available on the Investor Relations section of the Company's website. For those unable to listen to the live event, a webcast replay will be available approximately two hours following completion of the call. To learn more about JELD-WEN, please visit the Company's website at https://investors.jeld-wen.com. Note: See "Non-GAAP Financial Information" section for definitions and reconciliation of non-GAAP financial measures. About JELD-WEN Holding, Inc. JELD-WEN Holding, Inc. (NYSE:JELD) is a leading global designer, manufacturer and distributor of high-performance interior and exterior doors, windows, and related building products serving the new construction and repair and remodeling sectors. Based in Charlotte, North Carolina, JELD-WEN operates facilities in 15 countries in North America and Europe and employs approximately 18,000 associates dedicated to bringing beauty and security to the spaces that touch our lives. The JELD-WEN family of brands includes JELD-WEN® worldwide, LaCantina® and VPI™ in North America, and Swedoor® and DANA® in Europe. For more information, visit corporate.JELD-WEN.com or follow us on LinkedIn. Investor Relations Contact:James ArmstrongVice President, Investor Media Contact:JELD-WEN Holding, Inc.Caryn KlebbaHead of Global Public Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are generally identified by the use of forward-looking terminology, including the terms "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "likely," "may," "plan," "possible," "potential," "predict," "project," "should," "target," "will," "would" and, in each case, their negative or other various or comparable terminology. All statements other than statements of historical facts are forward-looking statements, including statements regarding our business strategies and ability to execute on our plans, market potential, future financial performance, customer demand, the potential of our categories, brands and innovations, the impact of our strategic, footprint rationalization, cost reduction and modernization initiatives, the impact of acquisitions and divestitures on our business and our ability to maximize value and integrate operations, our pipeline of productivity projects, the estimated impact of tax reform on our results, geopolitical and economic uncertainty, security breaches and other cybersecurity incidents, impacts on our business from weather and climate change, litigation outcomes, and our expectations, beliefs, plans, objectives, prospects, assumptions, or other future events, all of which involve risks and uncertainties that could cause actual results to differ materially. For a discussion of these risks and uncertainties and other factors, please refer to our Annual Report on Form 10-K for the year ended December 31, 2023, Quarterly Reports on Form 10-Q filed in 2024 and our other filings with the U.S. Securities and Exchange Commission. The forward-looking statements included in this release are made as of the date hereof, and we undertake no obligation to update any forward-looking statements, except as required by law. Non-GAAP Financial Information This press release presents certain "non-GAAP" financial measures, including Adjusted EBITDA from continuing operations, Adjusted EBITDA Margin from continuing operations, Adjusted Net Income from continuing operations, Adjusted EPS from continuing operations, Free Cash Flow, and Net Debt Leverage. The components of these non-GAAP measures are computed by using amounts that are determined in accordance with accounting principles generally accepted in the United States of America ("GAAP"). A reconciliation of non-GAAP financial measures used in this press release to their nearest comparable GAAP financial measures is included in the tables at the end of this press release. The Company provides certain guidance solely on a non-GAAP basis because the Company cannot predict certain elements that are included in certain reported GAAP results. While management is not able to provide a reconciliation of items for forward-looking non-GAAP measures without unreasonable effort, management bases the estimated ranges of non-GAAP measures for future periods on its reasonable estimates of certain items such as assumed effective tax rate, assumed interest expense, and other assumptions about capital requirements for future periods. Although the Company believes the assumptions reflected in the range of its 2024 guidance are reasonable, actual results could vary substantially given the uncertainty regarding the future performance of the global economy, ongoing geopolitical conflicts, disruptions in supply chains, and changes in raw material prices and other costs as well as other risks and uncertainties, including those described below. In addition, the guidance ranges provided for 2024 do not include the impact of potential acquisitions or divestitures. The variability of these items may have a significant impact on our future GAAP results. Other companies may compute these measures differently. The non-U.S. GAAP information has limitations as an analytical tool and should not be considered in isolation from or as a substitute for U.S. GAAP information. It does not purport to represent any similarly titled U.S. GAAP information and is not an indicator of our performance under U.S. GAAP. We present several financial metrics in "Core" terms, which exclude the impact of foreign exchange, acquisitions and divestitures completed in the last twelve months. We define Core Revenue as net revenue excluding the impact of foreign exchange, and acquisitions and divestitures completed in the last twelve months. The use of "Core" metrics assists management, investors, and analysts in understanding the organic performance of the operations. We use Adjusted EBITDA from continuing operations, Adjusted EBITDA Margin from continuing operations, Adjusted Net Income from continuing operations, and Adjusted EPS because we believe they assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Management believes Adjusted EBITDA from continuing operations and Adjusted EBITDA Margin from continuing operations are helpful in highlighting trends because they exclude certain items outside the control of management, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate, and capital investments. We use Adjusted EBITDA from continuing operations and Adjusted EBITDA Margin from continuing operations to measure our financial performance in reporting our results to our Board of Directors. Further, our executive incentive compensation is based in part on Adjusted EBITDA from continuing operations. Adjusted EBITDA from continuing operations should not be considered as an alternative to net income as a measure of financial performance or to cash flows from operations as a liquidity measure. We define Adjusted EBITDA from continuing operations as income (loss) from continuing operations, net of tax, adjusted for the following items: income tax expense (benefit); depreciation and amortization; interest expense, net; and certain special items consisting of non-recurring net legal and professional expenses and settlements; restructuring and asset-related charges; M&A related costs; net (gain) loss on sale of property and equipment; loss on extinguishment and refinancing of debt; share-based compensation expense; non-cash foreign exchange transaction/translation (gain) loss; and other special items. Adjusted Net Income from continuing operations represents net income (loss) from continuing operations adjusted for the after-tax impact of (i) certain special items used to calculate Adjusted EBITDA from continuing operations as described above and (ii) accelerated amortization of an ERP that we are no longer utilizing after we completed our related obligations under the JW Australia Transition Services Agreement during the first quarter of 2024. Where applicable, the specifically identified items are tax effected at the applicable jurisdictional tax rate and tax expense is adjusted to remove the effect of discrete tax items. Adjusted EPS from continuing operations represents net income (loss) from continuing operations per diluted share adjusted to exclude the estimated per share impact of the same specifically identified items used to calculate Adjusted Net Income from continuing operations as described above. Adjusted EBITDA Margin from continuing operations represents Adjusted EBITDA from continuing operations as a percentage of net revenues. We present Free Cash Flow because we believe this metric assists investors and analysts in determining the quality of our earnings. Free Cash Flow is defined as net cash (used in) provided by operating activities less capital expenditures (including purchases of intangible assets). Free Cash Flow should not be considered as an alternative to net cash (used in) provided by operating activities as a liquidity measure. We also present Net Debt Leverage because it is a key financial metric that is used by management to assess the balance sheet risk of the Company. We define Net Debt Leverage as Net Debt (total principal debt outstanding less unrestricted cash) divided by Adjusted EBITDA from continuing operations for the last twelve month period. Due to rounding, numbers presented throughout this release may not sum precisely to the totals provided and percentages may not precisely reflect the absolute figures.   JELD-WEN Holding, Inc. Consolidated Statements of Operations (Unaudited) (In millions, except share and per share data) Three Months Ended March 30, 2024 April 1, 2023 % Variance Net revenues $            959.1 $         1,080.5 (11.2) % Cost of sales 786.5 888.7 (11.5) % Gross margin 172.6 191.8 (10.0) % Selling, general and administrative 182.8 152.8 19.7 % Restructuring and asset-related charges 18.1 9.3 94.9 % Operating (loss) income (28.3) 29.8 (195.0) % Interest expense, net 15.7 21.5 (27.0) % Loss on extinguishment and refinancing of debt 1.4 — NM Other income, net (14.3) (3.7) 286.8 % (Loss) income from continuing operations before taxes (31.2) 12.0 (360.7) % Income tax (benefit) expense (3.4) 3.5 (198.4) % (Loss) income from continuing operations, net of tax (27.7) 8.5 (427.6) % Income from discontinued operations, net of tax — 6.7 NM Net (loss) income $            (27.7) $              15.1 (283.2) % Diluted Net (loss) income per share from continuing operations $            (0.32) $              0.10 Diluted Net income per share from discontinued operations — 0.08 Diluted Net (loss) income per share $            (0.32) $              0.18 Diluted Shares 85,520,145 85,149,088 Other financial data: Operating (loss) income margin (2.9) % 2.8 % Adjusted EBITDA from continuing operations(1) $              68.7 $              79.3 (13.4) % Adjusted EBITDA Margin ...