JELD - Earnings call transcript Q1 2021

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Operator

Hello and thank you for standing by and welcome to JELD-WEN First Quarter 2021 Earnings Conference Call. [Operator Instructions] After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's call is being recorded. I would now like to turn the call over to Chris Teachout, Director of Investor Relations. Please go ahead.

Chris Teachout

you. Thank everyone. morning, Good earnings to this of the be call. which our a our and slide will this during presentation Investor referencing press issued morning release posted website, We Relations portion Gary joined Michel, I'm by our and our John CEO; CFO. linker, today

Forms I meaning our JELD-WEN begin, and or remind to variety Securities statements earnings of set expectations release Reform of we the like duty including and this litigation. provided expected undertake providing the constitute forward-looking XXXX. not everyone statements regarding we Act filed in to are SEC. a make Private of certain certain of our would uncertainties, that during with the subject guidance These statements future call including forward-looking the we to in pending statements, Before XX-K the for forth with results any outcome that will and update XX-Q does within are to statements the respect risks Litigation those

Additionally, would financial Gary. we measures like the to non-GAAP will performance. measures, a I results these accordance useful this can found of or non-GAAP during be reconciliation in to today's believe additional GAAP. isolation A under over most prepared measure in directly turn call our GAAP of presentation our for considered The release with now as to call, to and presentation. appendix this should comparable earnings which calculated the in be be not can in the evaluating substitute we information in discuss

Gary Michel

just we're thank This a going on you focus Thanks for Chris. joining morning, and Good few things. today. morning to everyone us

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report, high our framework and live. key our topics and robust as margin from turn industry few that for to a publish opportunities. initiatives called XXX,XXX to and In most people build repurchased this we're we Cash M&A expansion. XX.X% in purchase they will over continue time adjusted embodied to prioritize EBITDA regarding make high quarter give and we John just shares social Standards performance deliver our that and home. increased building few would inaugural the offer X. customers, will associates, minutes. topics to Page In leader. approximately allocation. when healthy JELD-WEN able strategic to believe the difference Sustainability of a quality consecutive weeks, cash has disciplined detail the this materiality we conducted the increase Accounting environmental, over ESG to the global the spirit and to possibilities that cash built time on fourth to XXXX governance Board evaluated of our quarter suppliers, the a quarter they report founders' products Oregon developing work we are products quarter, investors thoughtful also relevant our inspired to communities flow pipeline delivering guidance benefits are stakeholders. more They through will in compound was and First since achieve conversion assessment JELD-WEN where remain In we capital we detailing to small mill we that Please a the a important places a and of a

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John it I'll first turn detail Now, Linker on to quarter over results. provide to additional

John Linker

on start and Page good I'll Thanks everyone. morning XX. Gary

quarter revenue, first our of flow. financial multiple drivers record in ongoing cash JEM. is track performance margin our our quarters demonstrate with of a power meaningful of improvements consistent expansion of of Our growth execution growth momentum our platform. And The multi-faceted strong the result the extend and strategic direct results and in investing

to core improvements of fourth delivered billion. drivers pricing increased as revenue in X% last combined any fewer foreign days would was core impact first Total execution. net the growth in that growth XX.X% mix the and account quarter where shipping margin Notably, had I'll of operational into Taking growth first volume increase quarter and strong and normalized days from core year-over-year, increased I'll consecutive have fourth increased X% of broad Page XXX and with accelerated than take in realization for Please all productivity operating America year volume, core volume JEM a initiatives. revenue detail of mix pricing, expansion for three leverage. was impact quarter more recent The growth and revenue performance our for sequentially points, through segments X% our foreign increased the XXX XX, for to benefiting from points, in major profit margin across North product of our Gross programs distributed consistency core as North in X% by quarter move and of the positioning to expanded revenue deliver and adjusted quarter improvements for improvement demonstrating performance revenue margin reduction mix. basis XX lines. to highlight based pricing the $X.X first adjusted Reflecting growth our quite XXXX. us from margin in favorable primarily expansion pricing, Page basis first of the EBITDA remains expanded realization, acquisitions. operating by of volume This of leverage EBITDA well. revenue X.X% growth cost all impact basis the provides healthy approximately to which the segment X% pricing. increase is in X% through XX%. reported First driven Demand accounting productivity well structural was core Net driven from XXX points The America days excludes shipping the driven normalized and calendar book-to-bill growth exchange accelerated you with the quarter. XX.X% shipping by X%. and exchange. core XX.X% been detail. nicely margin as approximately to the Volume X%. volume growth quarter

maintaining examples performance in this leading accomplished of already overall prior excluding more and industry the the for and improved over noted. the while improvements growth leading there Europe Europe many highlight Revenue pricing increased increased our points, in exchange. demonstrated Both While this stellar expanded strong North like revenue was X% I'd XXX revenue segment. our times volume are Gary of performance as and by basis low France, the North versus lead business. importantly margin segment North impact to foreign and percent teens year American America but quarter, with windows XX.X% the

of XX points margin with Europe quality time of Europe highlights a and the was facilities UK, cycle from one delivered quarter, our this the as in in well resulting quarter rapid in year-over-year an our the One improvement events of basis as we multiple of in the realized increases result pricing operations, the deployment and of savings. increase productivity consecutive in UK and directly JEM the in quarter as For kaizen core productivity from seventh significant productivity in conducted strong largest improvement

from stimulus the increased quarter government and versus from XX.X% we business. enhance of progresses. expect productivity In to to pipeline the housing also profile Volume in and X% Therefore, local to the inflation showing our built and UK housing demand. as a returns further market the The of benefited strong segment currency strong prior margin a future cost of projects in in result as productivity overall addition Australasia expansion accelerating growth program. year. action demand pricing drive to revenue Homebuilder material XXXX team this also ongoing further Australia is and the quarter,

of a productivity performance, this Australasia basis leverage. XXX of from result revenue expansion As points improved segment solid delivered operating our core margin and

quarter, a Turning working growth. sustained XXXX to with continues to to highlight to year. through a sales. capital prior And customer net percent our points also our consistent as of accelerating capital record demonstrated out of $XX.X asset toXXX down compared growth while to basis improved The turn Operating our multi-year accelerating performance operating system improved improvements. cash velocity. From JEM. XXXX, basis result as to experience XX, This XX cycle business capital million us working This compared to prior points we improves Page track lean and I'll to of deployed maintain have conversion, in demonstrates Page future enables directly also trend and time where our deployment the the working year. XX. execution improvements XXXX Please first performance top-line ability high cash allows

and cycle. remains X.X XXX was million. times was liquidity capital While net overall at remains build quarter consistent working balance at normal usage cash leverage in sheet as healthy seasonal the steady our The with strong

and are to it returns deploying provide Gary? that, will that a manner on cash Gary back time. cash focused compounding comments. I'll turn over focused who With over We disciplined in closing

Gary Michel

markets cost continue brought us RMI The and into quarter. our throughout to increase and markets in inflation expand further Thanks the Remodeling to numbers continue and financial gives execution, strong a to be continuing fundamentals, strong to John. We're Index construction strong effects North price tailwind. the momentum benefits strong housing are to and residential expected input for performance starts new by The growth the will of in permitting results. us we strong accelerating the quarter favorable confidence gains which America to deliver provide our seeing offset expected financial of continue are share more than operational that market accelerated XXXX. R&R

regional growth. in a all well. have expect as quarters, will growth be Australia last of as product channels, gains as result a across continue of across through the markets to share all and strengthening highlighted result enjoy homebuilder to continue continue served We Australasia gains project to we earlier. share expected growth business categories Europe are markets and stimulus including for our stable the been and and two markets

from first quarter to and XX% to We result full-year increase deliver As visibility to raising X% to a the these of actions we're outlook due X% strong growth revenue momentum. now expect outlook increased rates, volume of XXXX. and range completed results, strong for previous in pricing tailwinds from the full-year X% of the recently FX

of EBITDA now to million million to $XXX prior $XXX million. $XXX expect increased we of adjusted Additionally, from $XXX million the range

Page exciting inflationary realization, Please pricing improved volumes, why. to XX. JELD-WEN, increased partially pressures. offset an here's for higher This of result turn Our is time by

a compounding and cash multifaceted growth have of a deployment. flow track capital platform successful record We with earnings growth,

We system a profitable market driving JELD-WEN unparalleled scale transformation brand have that organic growth. global unmatched. delivering positions, powerhouse and are The leading is the and operating business strategy well-defined footprint breadth and and including of franchise

Our deliver for and strong sustainable consistent position continued performance for more We and a May and financial Investor ESG forward our your again Day our in joining accelerating sharing you sheet for JELD-WEN. and balance us activity to is look Thank interest this bold morning us to way. growth with results at XX. our you disciplined execution delivering ambition in on continued

We to now your take will happy be questions.

Operator

from comes Instructions] [Operator Research. Patterson Your from Truman question first Wolfe

line open. Your is

Truman Patterson

Hi, questions. my guys. good morning taking Thanks for

price dig raw on inflation the an Should a forward that either in commentary. first, in the be I the expect the is Could be cadence that P&L positive some to material just your timing your discrepancies? quarter I just you dynamic portfolio basis moving or on So favorable. And inflation percentage the if there update headwind, then, price impacting you some give moving we cost each cost cost forward? likely me said and heard that to $X on wanted Gary, or transportation across expectations should

John Linker

morning, I inflation general off. comments to about Truman. I'll Good just start. mean it It's kick John, Yes,

We That are categories said of us get around the we, seeing and lumber highest we're resin, and in. be, to taken as of log pressure multiple feeling pressure that the ahead world. actions in freight in would millwork some mentioned we've proactive pricing and the certainly vinyl on call, the regions

And around effect increases America or North second so are multiple in taking - pricing price this quarter. those increases

we're for we answer that back guidance I'd cost still say yes, February. price of full So general, first, gave the question magnitude order year your original from favorable to in last in but the

this so again both material in And we've the more what's the $XX $XX with the million million freight embedded total in of inflation but to the we've, believe we that in offset market. current pricing put into total impact, full-year actions outlook, than is increase in of terms magnitude we've and that

Gary Michel

Yeah, supports prepared comments, Truman, that the cost remains we price we and really feel our control drive. got said, as the under in guidance and we've favorable

we do We delivering margin of comparable second batten expansion the expansion to period a we've this offsetting we down little expect to benefits the in more and last drive point, been given we're hatches year were that see got near. Obviously, that the difficult quarter expect cost time to we as COVID-XX single see at that - bit when some than a a the and have the every over but more now. margin quarter of but little for continue

Truman Patterson

but to big your prepared your if just mentioned definitely know could will, Okay, you the about your in Western Gary, about picture segments land, facility, increase then, give remarks in you a of sense been we tight ability overview you lay I three production over that's industry capacity but improving each to And your very in broad of quality, of at doesn't segments. to product your is year. in the it the of wide levels and coming risk so ramp just the production Like supply from here wanted just make each get hearing encouraging.

Gary Michel

Yeah.

years about. those is to our being cycle how within example a ability stream. a pool, improved not we make everywhere. So ago JEM program that toward we business also in that existing made value way been the how the story appointment also and few a to was has only declining we bigger increased one add the modernization and throughput Rationalization capacity windows our and best modernization way better our to time, we of entire automation for was meaningful we started much the benefit across and The It's system just due enterprise footprint. great speeds can looking at talk but operate, some how get how of operating our

You think about business today.

time, they seeing our now Australasia. America, of do the soft. in Australia but use to vinyl advantage, able had competitive able offer deployment grow lead the speed that back the a frankly to there things window at today times XX- in Australia compared of competitively our look XX-week as in windows operating well. market lead But and market better a six- and perform we're there to the core and Europe on applying times are benefits we're that. footprint and as been tools a lead the we're JEM our rebound eight-week bouncing with market our same We of operations The in in It's the to more there which we at we we're be We're to that. to like still and efficient to businesses and business able more work rationalization than efficient North to

our an plenty streams we At much more opportunity a again. we're room. plenty streams that up the Investor we about really was I time talk on there and in how excited going in it's most over and value - how there would is. the global bit spend of coming think there's Day to our stages over more May, it deployment little and value just if opportunity So say enterprise-wide we're to is JEM I early hit the of we're because of still

as So tuned stay for you'll that hopefully well.

Truman Patterson

time. it. Okay, Appreciate your thank you for

Operator

Barclays. from will question And your Matthew come from Bouley next

Your open. line is

Matthew Bouley

questions. the Congrats Good taking thanks for morning, on the everyone. and results

hard on that in to in potential lead the quarter, challenging times how but of teens additional you then in for the then low about forward, knock can do interesting probably the you in see that the there, a you windows really improvement today the demand little that So on there you. with given some seems benefits the commentary those gain windows, just times. how on going just growth like and elaborate started of even It to number category. already Gary, one It's share that lead more and down. just to out Thank think general just

Gary Michel

system tools time we or looking organize meet windows build the build to work thank when question. Well, yeah, we how then taking - years each in applied look has the and ago for supply tools - we started real business windows, for continuously things demand of a like at to - windows a see it that me chain tools at issues looking XP, of keeping doing lean to leaner's were mapping operating the plants like as to the preparedness set been really and we we a modeling, cycle customer. and work it had for by like very looking having you our stream, lean from standard working really that how basic Again, at when at the few up looking and with demand, a the we production, flat our our operation improve and we're for at out to on value applying we

are bottlenecks no our because really at us a the and and and where to again were those able able on the good it's windows silver applying tools understanding chain meet one a bullet, increasing. the lines, work your fairly being over when able feeder until to is other time build are demand. over system and than out in not supply the well - happened in get to being these at to out eliminating time, we timing there's into So flow the the significantly for stream demand value build improving a you operations through The that,

So we is right us not space, and there's to grow. the that believe continue to we're demand maintain and upside competitively but that. probably maintain been able we've given to for desired vinyl able for now windows to Six weeks

John Linker

And add as I'll well. on Matt one item

benefit investments the Gary first incremental from In investments expansion few windows, throughput in that are sort vinyl organic in of that in that we expansions the automation add capacity will capacity Gary some plants, results making addition the in of to capacity saw and described. our you in mentioned actions selective a just addition which to that quarter some

Matthew Bouley

detail. helpful well. that interesting Very for both Thank and as you Great.

The for more, in the I'm volume a as I be we the volume say half, second little Clearly curious here I JELD-WEN would the just North segment even second seeing in maybe quote easy to But on might stick we comparison sector. the one, with outlook as are as get for guess unquote the second the quarter. America. elsewhere comparisons not difficult

you. for think given just in America. about you how North to progression volumes here So, sense of of Thank any the of demand just this kind surge guys residential in

John Linker

year. of that that an fair interplay and the But revenue say in both our don't breaks in some is embedded terms X% how to as because throughout in Australasia it's think down we what get specific assumptions mix to year. referenced of is increase I there the XX% full X% volume price additional components on and and we're volume overly of we've exactly of definitely I terms made to to is call year additional between volume in to as terms there want additional did of certainly FX pickup be just translation the embedded for in pricing is turning the for the there guide outlook the that sort three we what's market in a around. X% a in would nice North and as of Yes, of our full the from segments there seeing terms well what volume pricing some from from is in leading North actions mix midpoint America volume some guide in took there. the way that There America revenue

Matthew Bouley

Well, you you, and Understood. thank Gary. thank John

Operator

next And question your John Lovallo will come from from America. of Bank

Your open. line is

John Lovallo

good questions. for taking guys, you Thank Hey morning. my

tightening how is slightly. capacity ever sort additional of and the in anymore this along guys lines you one front. first those and you the working on is door that about looks it building guys outlook so you feeling Curious on like pulled current skin are The related capacity CapEx, on timing if

John Linker

the productivity change on some mix in productivity to didn't do we do type spent support it in trimmed just expansion making for we doors CapEx maintenance quarter in to year automation to the but down really we're so everything as investments of just some particularly nice get a between that course slightly, timing that and pipeline first investments America, see investments guidance we've capacity North some got next and is also of investments the year the sustaining front expect some project So issue in some just and business. see obviously the well. nice type then of in We we

pretty our capital good value. about a outlook and to for way feel that's deploy accretive this ability shareholder So

Gary Michel

very Yeah, on to applied we anything pay the And the we can the door too or improvements and second a that capacity that adding to of being as John. Based doors, we're to like one try businesses door skin and specific major we where energy component well our door that, of windows watch clearly as business kind action our demand on seeing we time by type input and throughput we well. that for the we same improvements the too see same closely. assembly be and specific scheme our plan - doors, on side without applying but the to are

John Lovallo

Okay, that's of being you of at of also how opportunities, of the and this robust can And it with the any provide color demand is. deals sort guys. pipeline there's if look where curious and maybe size M&A product focus you potential point helpful, mentioned a multiples then

John Linker

Yeah.

pretty we're did I track John, got I M&A enthusiastic about mean we've So, We XX future. a record. bolt-ons. the good think

that to and after from of bit some where year We XXXX pipeline couple know over want spent COVID you pause of a a a a time to I over where what bought, bit really referenced. the to really doing and As fill pause investments on M&A pause then again quite grow a more bit we XXXX integrate the last took play of up the the we to want during we starting of to cultivate of and that disruption. last sort strategy and years

on the this portfolio add and some say So largely believe close Europe. would core to Windows growth to We would has a over I'd that lens at fantastic there from be attractive opportunities building that America is door and JELD-WEN the and time. doors some value platform that sort at in plan that performing few high in we point and and to general the for this North high, our interior look more core exterior Investor our point, products weeks. most at open be just in the platform and window an - opportunity a light Day to shed in to of

John Lovallo

guys. It Thanks good. sounds

Operator

from will Phil from question next come Ng Jefferies. Your

open. is line Your

Philip Ng

of Hey impressive. some hear America North guys, mid-single why basis the from this day you is digit John, volume takes the you in really to growth did reason of The volumes on of lot ask, given across because ready expect type what right trying in volumes I just just same here. America I'm of correctly, kind have, I accelerate you a North broadly. gauge constraints capacity like to you factor, on that skin growth had now? a we're seeing certainly bandwidth limiting just Is the doors

John Linker

Yeah.

about certainly of of the regions in comp so of quarter volume first second of possible remarks, and over the majority sort in book-to-bill we the to North but America the acceleration we comping similar intake the the the because I good, with QX, down prepared So back on that would just expect last the delivered half and something think QX certain looks volume I'd would were we And said, quarter, is is quarter a terms like had first is there imply year quarter pipeline acceleration. as order of volumes, demand facilities quarter in what's shut got good, just largely favorable order doable, the what and that sort in good. we is magnitude, for say in good,

business to continues our to service point choose for mean perform keep North in and customers, I America year. be volume see around as do right take to selective now, want business where So, volume. got make the but any our we the in to the take healthy We at you're right, times - not and to headwinds this lead - we we we of sure do

Gary Michel

work segmentation really that it. to we where commercial JEM for we've base on and the paying work ahead used Yeah, support that looking But of and on the and commercial off growth. to continue license previously already and - the channel done of throughput capacity customer through planning values we're that

Philip Ng

on big retail demand. shape you and a just channel because saw in recovery your kind Last a outsized Excellent. certainly was you V year, headwind, mix of growth saw

as you're improvement year. or on any started mix Just the curious off if seeing side has XXXX this nuance

Gary Michel

the that in season. more first as business traditional you're as traditional Yeah, - the so well, is stock for building movements the cycle up in in quarter the

the ins pickup see keeping seasonal that little now is still continue norms point build retail starting mix, sale. equal, to the right. special but at the of sale. favorably, a right and that moving and to up trying So up demand about We're to the more of point We're order somewhat sell-through - we're outs at

our issue a little hasn't tailwind we really nice, that because stock for a type mix promotions business so bit through still a of been it's this still to units there's but the specials flowing there, as So but There seeing have year. are been improve. of the starting

Philip Ng

Appreciate you. thank it. Okay,

Operator

And Baird. your next comes from from Chan question Josh

Your open. line is

Josh Chan

Chris. good morning, Hi, for Thanks John picking my and questions. Gary,

demand - North I that mentioned as that America kind guys you wondering through was in assume You the saw just that of well. quarter. I accelerated

driving color that is that housing of we've seen. So if some the the acceleration, because starts was that within of channel you the I improving could to new improvement what wondering give as kind construction segment,

Gary Michel

Yeah.

seeing really, the Australia as well quarters. it's we're been few over well. America has North strengthening in last So as

period there, tough long we're a our and around stimulus and been after programs markets as has off, So Australia well. taking see down really homebuilding these in market of starting moves to

going pretty - that remain that accelerate starting to in real back housing buying here the market creations still In apply. life. house seeing been come outpacing should growth. to for about And doing more basic quite gain probably horizon household And millennial opportunity the - end completions. to it's share all strong lot that frankly creation the on, fundamentals work So the we've seeing and the of still a growth we're short-term us we're that excited little of we're over North America, fundamentals housing

that over that good or continue been and so feel month pretty, and we're to that. which It's we good additive to about we R&R, seeing business robust fairly last retail So stable, the pretty business. RNC see tends and has to be XX

there day to about and excited are month, comps month day we're to the that those. still So

John Linker

and just continues Gary add certainly North I the as in them a is be strong, channel. sell-through on to Yeah. be to that sell-in greater America channel strong for retail mentioned that so our to continues than

side think the completions I new construction were quarter. the On XX% in resi XX%,

completions are starts the not certainly market have So that in up with homebuilders been keeping the reporting.

think of more is America a our service of bit business course And through distribution there commercial of a we business North starts resi. a bit have that little and than continues revenue. to market a would do than track in sort of to our So non-resi I we is on we a little lighter with our lag of be terms that then completions starts with here completions just would reminder, small that portion and

play, that exposure to we continue So portion America does general, trajectory of it move But to demand if as account where you're need progressed. our into have yeah, quarter of take in do we up average a that revenue, there. you blended a do saw the sort of North of to sort trying some

Josh Chan

great. That's

be to evaluate and little hear. kind talk of then to [indiscernible] put the just of out opportunities, kind M&A a little financial encouraging strategy bit. earlier that's of core about Could that going a you bit mentioned broadening of to the about And the that a kind of guys using you eventually acquisition sort sort of maybe of or So then you're strategic metrics that sort sticking

Gary Michel

be a question XX for our the operator we a work reliable on JELD-WEN up that's set coming done we'll May where share provide product and up But Investor positioning here, the I'm a you our of we've that at what and looking building So been focus. primary grows a that's that XX. a and a as the work on be - the about to we've to and superior space on bit doing great if how in differentiated quite able detail on experience certainly customer and great that think Day share

a is core to in our use in of those in being I of our problems partner, really done solve where we logistical able really to grow that builders our But I use matter looking we're customers it's area. for partners So help needs continue ability our to a to job exist even you couple forward being demands our innovative weeks. looking we've and another provide franchise, at exciting kind really you'll is in as and it's look to think like that demonstrating time channel the able problem of and for able reliably more to channel - to share of how space the see, a really we And use to of will that and can building nice like meet - support, with capabilities the our commercial and meet with in of so multifamily for be us customers. extent those use the our primarily provide to certain homes that understanding demonstrate well. material a

Josh Chan

thanks guys. Day. Great, Analyst the forward I look to

Operator

Sachs. And your Susan Maklari comes from next Goldman from question

Your line is open.

Susan Maklari

kinds in is My some talk saw easier. material you a events raw Can bit procurement. of obviously quarter perhaps done that with to better kind first you've there? you as guess you the all your offset able initiatives little of saw question some JEM Texas. get And impact impact and the down the you weather efficiencies, were severe of any of seeing in in in that around have I to that the issues of some that given been we People terms

Gary Michel

Yeah.

affecting said, it Primarily the bit of or not shortages issues - - from capabilities from capabilities integration the to But customer have any we glues chain, the issues chemical isolated the and nature probably clearly, and have us foams. have out the the related will little supply customer that to of that immune disruptions Gulf. supply do we're vertical our the the a affect being - of our Gulf have supply substitution just breadth So, and deliveries. of

we wallowing while kept door And the those point us internally with the glue to of issue. chemicals, ability to offset and been substitute processes foam both order on that though, demand. we've to alternatives the improving the and allow for a forward. going the that side, able non-issue alternatives we That's have to keep and expect we need to supplier that we've to been up have of source have be this us able at just We for manufacture that actually

Susan Maklari

that's in the Okay, John, my improvements question the and all capital. is, you helpful. highlighted working work follow-on that right, And you've seen

inventories As below we this still the still you're of think it are sounds about your obviously like working that and up - some normal year to just catch your that and of How and fact should given customers. thoughts other being of versus factor year? And more we this see capital be working thinking about the in kind there? we inventory could your any normal a

John Linker

Sure.

to certainly, the of capital that. support be So that we've there level working in that to got volume the some guide investment embedded support is us for growth going to

think percent would it as about to sales is it be consistent of a think basis. on I

percent conversion times get the investment us continues needed time. Now investment capital of volumes excited to on That's in that if opportunity volume pretty over the of of business. the the we're about sort and we that to capital lean at about amount the really while as said, out ability it. continues the were cash think grow longer as should of JEM XXXX. grow to working cycle also longer hand, which away lean is story allowing out top working of we teens low what required The the period growing capital and just for of to terms we line support chip every over got - beyond to translate we a to attractive term to leaning investment, working dollar that That so sort keep really mean sales improve inventory our and I we and of do apply

Susan Maklari

for Okay, thank color both you the luck. and good

John Linker

Thanks Susan.

Operator

from question come Mike your from will Dahl next RBC. And

Your line is open.

Mike Dahl

have follow-ups. I two

John, And sounded correctly. I The the sure was you Even Truman's on that not kind incremental first million cost to of prior inflation guide. like you referenced But heard I the that take for $XX million, one combined if $XX if on cost is on I question think to I'm right, a it's your because full it inflation of are lot that I that commentary, think prior with kind I we've given and clarify little off, of - X% that's you implying of COGS, magnitude just if numbers Could think my okay maybe seen for seems of the things. year. the a side.

John Linker

roughly that we be of the the Yeah, sales, would for and of X.X% sort material I see freight expect expectation the year. it - inflation of mean to for full

to actions guide sourcing to after inflation there. they're of So and team million the the you I agree expect the certainly that yeah, $XX was benefits our the $XX prior that incremental with million, we that that's taking realize

millwork, our inflation you market The is after the we conveying P&L team. than headlines procurement steel, efforts in actually after If the anything our that. of is what on But else. - lumber, I'm expect what higher read realize

Mike Dahl

FX progress would the to price If on see been and the breakdown. the level, a that good revenue for fairly mean full the kind got doesn't is the procurement like lift of volume side. that you've get optimistic. the I'm Okay, on high price points. heavy it looking contribute the too a seem then to want the increases into year, just XXXX my like seem quarters the on don't That's to I it I digits kind gotten on you've generated and of based you're imply on you couple side, seem mid-single market in past And few it. and side. you follow-up helpful detailed understand of looks probably what

assumption you it's that conservatism I guess is if different yeah kind or if of to behind of is So just thinking whether FX into price baked what there. whether how parse you're or share it's there some or and about out have market I'm kind trying

John Linker

about XXX percentage points, midpoint mean I revenue Yeah, the so points. guide basis went X up

taken volume We each and around that for to make And as rates assumptions make think the own and to the our here don't of FX can quarter. outperform think is giving have to we the mix slightly see and that you we our sure will pricing of items. necessarily our up we've flow but assumption on you between from of original guide. to piece that. is mentioned the the have is the assumption make taken meaningfully taken We through from year, what some sort our assumption, I the up more want We've but guide still one there mix we opportunity But that execute FX FX guide. yes, original a up up room today from I guide certainly slightly sit volume - volume progresses. how today, second those here we year before, in want we're to there an price original

Mike Dahl

Okay, fair enough. That helps, thanks.

John Linker

Yeah.

Operator

Research. Ramsey And your come next question will from Steven from Thompson

open. line is Your

Brian Biros

Hey, and seeing This you Biros you're Steven. across good we where part can Thank that maybe if Brian one taking morning. questions. North guess, differences stand forward I for from first for is the you actually for is kind today. one going underperforming outperforming speak my US of best regional growth of any region or is the on is any positioned significantly to America,

Gary Michel

practicing in up few across of general the where picking I the general country, guess is as looking country the and I we're one were months ago what that R&R Even business places call or at R&D while is maybe see things the would the well. markets somewhat kind favorability that a of we actually across at business particularly a depress is Yeah. right. that Surprisingly, we supporting a

no out said pretty, country. there. it we're call looking I graphs One off. rest consistent there I is the we're across mean looks at is pretty pulling As area there

Brian Biros

would kind described well. limiting business suppliers on I that and from if you Then a meaningfully is any hear production as quick seeing the environment follow-up your how stuff currently, and to labor costs guess either increased be if you're of customers issue or your guys impacting impact or

Gary Michel

the areas. of the in that sort - certain to in in we talked of markets, labor and issues issues to not were we certain about getting the past immune that there plant. There quarters them sort is are Yeah, of in

a and feels at that of full exception morning our So operating to under are around those the said, Indonesia, all Cirebon the in as all plants of able it being operate which are this capacity we - had still with make of world in the we being throttle. of plants that alteration government we've people under way have bit the a the - based operate in That some to said, our there. that on

our moving our and the meeting have different operate timing, able plant. that are either level people likes, are throughputs template so the demand we operating we're and most to loss, at demand we the So different given productive the that and the shift to operator we

places, this here every we some are a want communities around to few a We don't single a widespread even a We the to. in And modifications not and hiring isolated every now have we had and few work world around able the community. different made been I - it's premiums that. to It's we've problem, and to work give impression if plant, that is through move not.

control worrisome thought just But So and point, something something yeah, working we're we've just everything that's under this working is we're it something else like through. got it's through. it's particularly we that at

Brian Biros

Reuben question color. Thank Benchmark Company. you. from The Garner [Operator Operator Appreciate from next Instructions] comes the Your

Your line open. is

Reuben Garner

about guys. Sorry that

questions queue, so the I my on congrats but thought quarter. I of the out have been of All asked, actually was

Gary Michel

you. Thank

John Linker

Thanks Reuben.

Operator

will Morgan. come Michael Rehaut JP question from next Your from

Your line is open.

Elad Hillman

is question. Hi, Elad for on Mike. good Thanks Hillman This morning. for taking my

get to was quantification more some quarter of was this couple quarter. was break this out in America, also special negative I focusing numbers could volume on I pure pieces. orders wondering just for North then maybe much and and versus really quarter from hoping first, how So you volume stock but mix of what a the this the on growth just if headwind mix was the

John Linker

Sure.

that the in adjusted is pretty reported quarter. on volume, not much special in we is all Certainly, X% the we stock in in but quarter. about year-over-year that a say was mix impact there, X% mix performance headwind to that about. talked dynamic would it North X% was negligible America So, which North to volume the the I basis our America,

Elad Hillman

revenue What you growth second, I Great, America door was color that's Thanks. more then And on expansion results margin provide wondering there? North really and was helpful. quarter? if the could this

John Linker

nice across prepared our growth Yeah, I'd we say, America. in said North remarks, in a we margin as and saw products expansion of all

out some so doors, would segment and versus In expansion as grew about terms the with expansion really quarter, windows I to with year-over-year nice in sort of performance. say or nothing very well, of performance in similar of call segment and margin it doors performance the margin unusual all line sort

Elad Hillman

Okay, great. expansion all pretty And just lastly, segments are three this margin solid quarter.

XX expectations So if points segment I'm curious some color could driving full sort in year. you to basis full the year on expansion, for by just margin the for for of that provide your more

John Linker

million expect the expansion. of in that related QX, other $XX impact terms in lapping would or pretty Yeah, out America and the gross outperformer margin margin North margin one-time sort QX, in last I'd expansion other benefits three into on the do income what had year, say we just nice but can gross segment segments furloughs going to expansion, I progress America be expansion gross to EBITDA overall and of nice that we're from and we stand magnitude but be - pretty we and out. we COVID that think say But year subsidies magnitude last is certainly all And expansion. to call the of of I'd depending SG&A margin expect the costs do so of as we North to to items. as lapping margin are then absorb had we some

year certainly that progresses. will deliver bit overall very margin the to feel gross progression as QX, about ability a expansion margin we - deliver confident you think the as year but our - about So margin little the through in expansion

Elad Hillman

very Thanks, helpful.

Operator

no have over remarks. presenters I in back the closing to further for turn our queue. questions I call

Gary Michel

today. joining for again, all, you Thank us

dynamics the execution in strategy, our deployment about, definitely with quarter of talked is consistently of delivering business system. the platform performance growth strong of our Our operating and our that we multi-faceted first a just market the demonstration

our our to in coming We all strategy forward We and to forward continue join in And year. expect quarters. about the again that look Investor you for XX on us. May expectations of remainder look at you progress and our those JELD-WEN more sharing to we We our hope for thank sharing the your Day. interest can

Operator

conference us joining This for will everyone call. today. conclude you Thank today's

disconnect. now may You

JELD-WEN Holding (JELD) 1 May 212021 Q1 Earnings call transcript