Earnings call transcript Q4 2022

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the JELD-WEN Holding Inc. Fourth Quarter 2022 Earnings Conference Call.

I would now like to turn the call over to James Armstrong, Vice President of Investor Relations. Please go ahead.

James Armstrong

Thank you and good morning. can quarter a XXXX Investor slide of website, fourth morning release Relations our investor.jeldwen.com. our posted at and presentation which issued and earnings full-year this portion We found be to the We'll be call. during this referencing presentation our

Bill I'm Officer, and Officer. Chief Julie Today, Christensen, Executive Chief Albrecht, by Financial joined

Litigation XXXX. those forward-looking Bill, the our Before of our call, certain make uncertainties, and we to a like statements the remind of I Reform filed are constitute variety meaning of to Act XX-Q in These subject set within I with statements risks Securities provided turn the Forms and and it everyone earnings including to Private will XX-K statements in would over that, SEC. forth this that during release

to statements, future any the to JELD-WEN including we with undertake for certain are expectations does not update forward-looking providing respect duty results. guidance

Additionally, The in information during can or will GAAP. in believe we in prepared considered substitute useful evaluating as non-GAAP of with we which isolation, a presentation for, discuss measures today's not be call, results our accordance this performance. be should additional

be reconciliation and in A non-GAAP their can to directly our financial presentation. these measures to GAAP under earnings measures comparable release our appendix in calculated the most earnings of found

With that, over I'd call like to now Bill. to turn the

William Christensen

year. first last And call of since everyone, you, today. JELD-WEN’s for my in you, to thank December join earnings Thank I'm being James. joining our honored call CEO appointed

look the working of meeting XXXX, great to world more months changes. challenging our that various First, with their I year want and to in be ahead. and many associates to than win, team proud around our thank a a to in I wants I'm for employees weeks forward more hard work XX,XXX the with

fourth full-year then and I developing our XXXX. results XX over my provide an quarter hand and first to a speak for Julie our way as some more initial our before forward. from to will days outlook our discuss detail approach bit about highlights, to first insights to discuss and share CEO reviewing I’ll myself then it in

not than April began the For do more year the some I've two last lead before who and as markets. building multinational years spent by in for companies to JELD-WEN of having manufacturing automotive our those financial in time served of I me career you segment. XX my in yet, industry, European in products, know followed joined business CEO manufacturing I

coming on and full-year we guidance provided that positive Turning the slide results in slightly year the October. note, ended quarterly to and we in sales our a X, above earnings on with

the talk will as still minutes. few During we'd fourth as it not in about price down, a and depth more cost. slightly quarter, expected our our in while financial was and outperformed performance demand we was for expectations weak Julie

I'll higher highlight patio in XXXX, this US, and including areas, windows growth composite our the which margin that, doors we plan expansion the to in of we continue year. Auraline introduction invested new in

customers of the with manufacturing to firsthand. new We in visit local a team to serve month discuss I had the Windows, reach the also the VPI of and Coast our Quality VPI commercial earlier this our segment. grew North with investments East Carolina view progress facility multifamily growing to and addition national great

we be deliver value stakeholders. all Finally, of in August. JELD-WEN committed sustainability will who ESG our ESG to part we are report an new important we annual as goals to when XXXX published continue to

our look I perspective of but my business. into I solid view stepped objectively global I'm have outsider's the have an new a JELD-WEN, understanding I've a bring company. believe still to I As enough role, and new at unique to

I believe but to our cost within head of business, challenges be business. I I've CEO, significant base considerable as continuing are our that a seen as tenure During my within streamline there Europe opportunities. first and benefits days addressing the the and delivered lot of also can XX by see

we of plans foundation business the deliver organization deploying have expansion X, slide accountability, a trust This margin around Strengthening and focusing as on structured focused our on organizational taking operational the on right people, place value will framework performance efficiency see is transformation you include well and we long two-pronged the are As the approach, term. short ensuring and creation in to through initiatives. on as strategy. both

strategically as business include work streams, segments. down and accountability, managed will line by commercial teams phase, sourcing global excellence. or of addressing pushing already plans and business in some which in such These our rationalizing execution of the close be transformation to footprint, These topics different are our

we're on our support value the cash will creation projects conversion flow strong margin that delivering focused Finally, to improvement. fund

value, We performance long our also such to strategy, will giving what customers to growth. the more consistent, need on they more an shareholder while improved market innovation. and eye We long-term term deliver deliverables profitable clear as of have drive establishing returns, simplify that

service launched important ground to to frame will of more our pipeline featured International ensure and is area help designers. we appropriate recently at to focus LaCantina easy January, high-end the the redesigned in as design up, meet latest VX folding the example, our architects, the needs homeowners the from and I be with product glass, state-of-the-art line spending Show. operation system, For we time less innovation. door align in to Builders’ better a on more well as have VX including this understand trends,

facilities our Atlanta and a efforts announced with of page already closure the on expect in to the seen of the door of our we X, million segments. across $XX through savings have continued lower demand deliver cost steps, number XXXX consolidation of completed recently footprint continued we facility, which taken annually. managing We business our decisive As closure five

to more expected a million. facility completed of project a We benefits also and linked announced $X broader the closure outsourcing of with in annual than Latvia sawmill

will that when We Europe continue to cost North further reduction appropriate. and we evaluate share facility both America optimization in and actions

expected to costs annual with our will SG&A demand drive SG&A to our steps flexing actions taking are plans we to taking our steps about more reduce be we our additional workforce than across to to forward. salaried address and Europe. are of million our savings, $XX of are work We force and X% reduce America costs These and North going needs

segment, some European time During internal of the my I complexity our business witnessed leading first hand.

and many made specific local of were a smaller arrived, a the As too accountability. the with but you When Europe many top is homogeneous not markets I needed market, know, series decisions of level without at differences.

dynamics. the addressing our similar to in changing simplify nimble company. other the to be I further One we opportunities push allowing down actions streamline us local was adjusting And to regions regions, are of in authority more the quickly first market the took into decision-making and to

strategic the business addition, is underway. well Australasia our In review of

at further to all with this to a time, we nothing options While continue of maximizing goal evaluate stakeholders. we have all value share for

the forward. nor Towanda, due And is to court is proceedings, the after can cannot an divestiture moving process outcome. we we some delay under divestiture the Because supervision, on guarantee process court finally, on comment

not actions we housing the in are are insulated we gaining momentum conditions in weakening from macro progress. from have the Although across already we globe,

clear on well-defined innovation X, accountability, investment greater of and to to include runway with will have drive the the to augmented growth. with we and look significant years on performance quarters As page plans, setting self-help improved and ensure in costs focus achieve, returns targets that I a drive we to come. active opportunities a believe to future future These monitoring

to We footprint. and also This global we strategy. include at as our our our a plan portfolio take looking approach assess long-term holistic closely will entire

on reducing our committed to Specific quickly projects allocation, improve term, to our to investing reducing near strong as the In leverage while will remain be we focus possible profitability. capital in X as times. leverage below payback our

well want provide underlying committed our drivers and information that perform investors. to our to from transparent what and not expectations. letting did our won't We you we shy finally, of to the helps more And what are know away business with be explain went

We the can strategy goals, anticipate to so way. to you review long-term appropriate year. develop to mile this sharing markers progress along in those results giving are half that our are We second and evaluate our long-term of goals committed the taking we time of the

costs strategic However, large in executing our on already out. laid and our is throughout to business, near have term, on reduce continuing we the the footprint actions the rationalizing focus

to hand financial detailed now it to discuss our results. I'll over Julie

Julie Albrecht

Bill. Thanks,

Turning our to for the X, quarter consolidated see results you slide fourth of XXXX.

in across As results Bill earlier, earnings our the were mentioned that slightly segments. our expectations, sales demand ahead of quarter stronger and delivered we driven by mostly

year-ago Our revenue billion, was up X.X% approximately $X.X from levels.

had quarter sales of translation revenue was when about our a topline impact provide slide. next additional fourth I X%. while solid an exchange cover X%, core the adverse Our comments foreign growth I'll

margin in the quarter, leading EBITDA an was X.X%. million adjusted of adjusted Our $XX.X EBITDA to

higher SG&A cost than price While offset lower more by volume and this results, we was mix positive recognized expenses.

in such was to XXXX, to significant million and cost approximately our XXXX, inflation. factor we want in in In $XXX for inflation year. experienced expand what XXXX on total we Since I recognized the results a full continues

However, we price same year. cost, energy the materials, XX% Approximately of by amount in cost to roughly our our about inflation meaning and increases this full were sales, with raw labor. the added neutral driven for price freight the was remainder

timing were and costs actions to expenses, taken cost due SG&A, incentive offset which quarter unique more last than fourth to our amounts year-over-year year. higher of Moving SG&A reduction compensation

at of expenses, fourth the Specifically, quarter due compensation incentive SG&A the fourth of comp the expenses and year. in XXXX, was for more appropriate normal accrued as levels the quarter XXXX incentive to we of lower reversal in while current

in as growth the reflects increases XX, fourth put just to inflation, our primary revenue which I've place see selling described. was slide On quarter you offset to cost our driver primarily price prices, that higher

X%, US foreign Our impact further due exchange stronger dollar. by total to negative volume translation mix declined a from with the

Moving results fourth slide on XX. segment on our quarter to

sales, segment up from million America levels. Our generated North in year-ago $XXX XX%

Additionally, adjust of quarter, was price XX.X%. fourth realization while the $XX continued significant cover up to slightly year-over-year, cost this X% declined EBITDA as we flat million, pricing segment adjusted Volume was to margins inflation. while to strong in had mix

as strong had factors demand slowdown in due as due in Offsetting starts. the doors. market to in North gains positive in to weather winter Canada these builder share interior declines to overall housing well America direct mild were business

generated declining based American adjusted and complete. conversations our As $XX destocking XXXX revenue million margins quarter, activity customers' of in customers, Europe on that and we with million generally $XXX with North ended, the X.X%. to our EBITDA, In fourth think is

realization driven offset was of strong flat roughly weak XX%, were price by revenues by inflation, cost volume as mix. Core

had line XX% translation. In from a foreign top negative impact of exchange addition, Europe

to inflation as quarter, driving During continued suffer Europe volume significant macroeconomic from that conditions weak utilities, the the on headwinds. and as materials are fourth well

sales As see retail through ended, due did stronger channels flow we to XXXX restocking.

believe channel. throughout retail ended the inventories at are the the that we in levels forward, that destocking most region and has of Going balanced

flat, were results, quarter revenue volumes fourth other XX%. $XX million, of while our margins million realization significant price of driven $XXX solid was EBITDA price to this XX.X%. had continued inflation. at segments, adjusted increase cost Australasia reporting Similar was and by with Year-over-year

exchange XX% In addition, Australasia’s foreign negatively revenues by due were translation. impacted to

Now, the market slide on XX. turning outlook to

we begins, across our have permits and demand North America, to year-over-year regions. also of single in XXXX slow. continue permits XX% XX% expect are As starts of all slowing and driving approximately to declines to multifamily In higher family interest rates started three

mid-single remodel that also and will though a digit rate. repair We decline, activity believe only at

of All expected our reduction America for for low-double-digit North combines this business. in an volume

region's In will be as to remains by the Europe, macroeconomic we high-single-digits soft challenges. ongoing that demand anticipate the down due market

growth declines side, modest construction in expected is renovation modestly. see to renovation. continued in be the Commercial construction residential grows we new commercial flat, we while residential while expect On

are our least the we of remain backlogs year through year. starting this at solid In half with Australasia, to first expect the and demand strong

full-year Our availability. and commercial new for as growth demand this impact year, later interest outlook mid-single-digits decline home potential by is to hampered of due labor higher is rates construction a continue to slowing

On EBITDA. slide outlook XX, and you sales for XXXX see our adjusted

between We billion EBITDA between and and to $XXX million. XXXX billion adjusted expect be revenues and $XXX million full-year be full-year $X.X $X.X to

does the of the not that year. guidance occur Our potential may include impact this divestitures

double expectations digit guidance described. products the demand we portfolio Across to core geographies, just lower sales of that driven Our reductions our our forecast in revenue reflects I've demand. X%, and by that is low X% down

in assumptions previously from positive increases, price implemented but from sales Additional a include impact to X% exchange also our foreign translation. X% outlook headwind a

which both offset headwind mix, cost of and decremental Our a savings adjusted which lower to XX% this by actions, in and Most through of his XX% EBITDA reflects guidance earnings at Bill earlier. volume the impact ongoing new previewed is from productivity many margin. comments drops

typical on to impaired driven our other one-time cost price income, of increases as as received Due inflationary expect interest we full in first year, XX% seasonality well positive quarter be are forward the and combination slightly to the in adjusted not $XX weakest For of Also timing flat of half business continuing notes, being of that reductions, recoveries costs. XXXX. the the approximately by as quarter earnings, mostly year. price XXXX EBITDA to to cover non-recurring we other our cost our repeat included EBITDA with expect of the of first to be our certain adjusted approximately year carry items million note, the insurance expected

flow, over flow our generation we cash on XXXX improving cash to shifting Now results. keenly are our focused

deliver of strong on than to this high and has coming reducing working over expect capital working earnings inventory focused half We cash reductions. an with net more Each year our quality $XXX operating reduction. capital by flows from from million, action segment this plan

investing maintaining as be safe in and long-term spending to expect efficient we capital These profitability. help short-term focused as improve addition, us to projects operations, are slightly investments well year-over-year. and on higher In mostly

turn Q&A. I'll move to now James to to it over

James Armstrong

Operator, begin to Q&A. we're Julie. now ready Thanks,

Operator

Instructions] [Operator proceed. Maklari from line first Goldman the Sachs. question from Our comes Susan of Please

Susan Maklari

bit I to of what gave that how you this there. been us some you are the question details out business good relative operating the over a an give more Can several has first the the of some last idea think my years? through initiatives different of us is is, -- on

in it really the through? we should of start efforts and or Will we where margins of that it how see perhaps underlying thinking get more a or years really be be start to XXXX in operations? in the benefits will coming And XXXX later it about the be even something we to those

William Christensen

thanks for Yeah, question, Susan. the

Europe to that views on I I've to the Why comment I initial our will XXXX. fall some what then for here. So, US line see can bottom the first the on over swing different? been it yes, in of maybe start can you this through share in Maybe saw is only perspective. time to and I

level, were So, were in made to being I top as down. so the being Europe, when sucked at arrived, many opposed too up pushed decisions being decisions

you the make real So, country holding teams lack Europe, in the business need there increase is to also but accountable. to agility, And level to on sure local of accountability. more you're focused run

business footprint cost right-sized the in that around creation to reality same push did now the cetera? accountable. it the of Is model value these hold at thing America So, going country that people we're where missing aspiration? what actions some those holding is but We set that. there level, are plans. XXXX? the Does North we're the transformation down, And we definitely on up pretty and on of was to is some So robust really North set When America. arrived, in I Things the that's really the things et to a a like, and plan. we're plan value ourselves doing accountable deliver aspiration, and I up the into rolling match was balanced, both Europe details the in in we're creation in monitor measures and offices value to creation

you a kind but hopefully specifics. Julie, you maybe, that'll answer, broader detail. give some around some of detail add that's And can So,

Julie Albrecht

going our Sure. volumes Susan, down obviously, year. We've as be guidance, Absolutely. we've said to in Right? mentioned this are low-double-digits.

productivity we're that and – so drop-through to way perspective at headwind, but when there And of cost the the a profits, is look you for on lot right, up a from making reductions. offset guidance that

actions so, to we to footprint, the took impact that this headcount last reductions, et that's – cetera, carry continues et SG&A, of related related And forward cetera, some year year.

the impact and savings carryover there's new cost actions. there of again, So, is

just and short with think term, right, kind add focused medium we're color, to term. a I then, Bill, And of more little clearly

our a gap lot on and of right, would a expect from is and focus Bill foundation we – we so, future the strengthening closure, in And obviously, this cost the profitability. come improving mentioned. to that has reduction would more year, years And expect

Susan Maklari

might builder that sales helpful thinking direct through as the together are North hopefully Okay. lot bit the you that about come for America mentioned to is year for through relative thinking then, move of about And That's you. behind very we the color. how How different quarter. a strong and moves XXXX, that destocking the this were quarters? A you the channels business in

William Christensen

Yeah.

Okay.

very there So, a at with Maybe messages. and weeks obviously, of mixed number I was give couple different the colleagues few key market. additional a KBIS picture. was it's of you some a the back, show on a perspective

sector. an that So, clearly, with clearly, lot we're There seeing the still in was side. clearly the is the view three general affordability residential expectations today has in better is impact down our build a an ago. than months that double-digit it And on issue that

expect just XX is XX% we of retail, years moderate US in more R&R is may up. the some our it On old. holding housing be stock because over

people small they're So, clearly, they at renovations home. consider may are if holding because uncertain,

more that a hard stabilize it's as But me. a Low-double R&R decline digit, decline kind XXXX And low-double So, balances low-single view the of digit that's think pretty a we out that. our residential digit than decline will bit clear to a to in in overall anticipated. on excuse that on view a XXXX. give – result,

Operator

Our line comes next Please Truist. proceed. question from Hughes Keith of from the

Keith Hughes

about the highlighted half had expecting decline versus the will volume just first Can half? declines during think second year. you're you pacing be You maybe what talk the of you the volume

William Christensen

Yeah.

inventory regions. So, what has of we're seeing feel most is rebalanced actually in across that we QX our

in start think Europe, XXXX. America in North will to in We as stabilize well. it So,

out the to be of Our see HX. expect expectations, year. turbulent balancing half more And a HX the clearly, settling in of will second is than we that demand

half the to first current view. challenging. That's the expect be We still

Keith Hughes

you're little by Is is midpoint, increases year-over-year. – up the on or savings, volume based sorry? more half second to driven cost a split that second cost in driven And the bit by that going EBITDA half, – Okay. first, be

Julie Albrecht

about half you're to talking clarify, Keith, half Yeah. versus first margins? just second

Keith Hughes

Well, seems… just split you the EBITDA gave

Julie Albrecht

Yeah. Yeah.

Keith Hughes

my imply of …to second little to half. drive going What’s a bit is the that in improvement question.

Julie Albrecht

profitability half the continuing is cost second reductions that of Most improved Yeah. take hold. in to

things. think that literally I about various made, believe announced end When be you months. we the to of that January, in doors coming our closure project that Atlanta So, the closure the coming closure, facility of was will

savings half occur second cost the of that year. So will

that will projects and implemented that quarter are are There in are that well. approved half working on second now other and the into second as the the hold getting take operations

growing as bit and improved little a momentum more takeout. continued reductions kind year. it's as a Not of really just the of cost – it's really, momentum move it's phasing-wise, much cost of through So, volume we but

Operator

Our next John question from proceed. Please comes from Lovallo of line the UBS.

John Lovallo

one, inflation First of cost idea dovetailing there's is XX% mat, just energy, about. million just you kind give $XXX of run it. of that what talked an us the where of about I off mentioned, you think guys Can total of being Keith today? Raw freight, rate

Julie Albrecht

rate. We're expecting color can inflation, inflation to Bill and we definitely Yeah. continued there. This seeing kind that year, that at any absolutely definitely a – kind in XX% on But basis. lower last more of year, that to X% those that XX%. were add we're a that's full-year like albeit numbers said XX% more experienced we of

want lower know continued a at if So, you don't add rate. more any but to color? definitely inflation, I Bill,

William Christensen

are energy logs from price glass, input an driven by ups has just we're increase. seeing What our because base increasing. We're as in Yeah. lumber other Europe, which getting is But supply costs things continue to is like and are there's being example, that Hardware as off. well. demand the been softening

price XXXX. an forward our balance XXXX still a we We're from of in no We believe that's deflation see will yet and job not expect signs we But environment. deflationary environment. XXXX be do currently. some rolling, So that obviously, to that inflation

John Lovallo

side. most number strategic outlined, as a daily mentioning, Bill, you're operating the Sue of initiatives on you focused Curious on a basis? on what was

William Christensen

Yeah.

cost now So financial need just to market need the it's we on de-lever. our clear. to today. very need X do in We the some there, quite be but on doing performance clearly flow also based get of forward, cash which ourselves need which we these attractive should base. reality, invest obviously, our We putting to and times projects to so improve they to address We need obviously. can generation, under We based homework is the organization the

focus So, later to that have in short-term and and the I foundation that's Julie build get the really the ready that then out to ourselves year. on strengthen

Operator

of Our Bouley proceed. Matthew next question from comes Barclays. Please from the line

Matthew Bouley

Europe So one, I to there, shifting sort market the market over of just overall. first to think declines high-single-digit end outlook you and spoke

bulk new the think I coming is if correctly, construction. from I of heard you that resi

and R&R. think I some R&R might be commercial flat said up, you in be growth still maybe new commercial resi might

in side in seeing just up, on or of sort segments the being the those market are Thank on focusing such So, areas? but variation why there, kind any with additional maybe end outlook you. some of and confidence resi flat that has other growth the weaker color new Europe still

William Christensen

Yeah. Matt. Thanks for question, the

a different So, and countries Europe, is of of you as know, a number mosaic segments.

Just in general, down. residential is

and I significantly, everyone borrowing effect consumer starts has aware Costs are short-term increasing is cost increasing is on very of confidence. think so a significantly, why. whiplash that

you participate, doesn't is segments If which one pipeline, we away. are projects lead is is to government those typically the stronger over off is sticky a typically drop also where longer funding there of right there with roll times, that and commercial, and other

favorable in seeing development are still that market segment. we So,

weakness some balancing we that the that's residential. of So have on

general, And don't that's there they business. in Europe. a hold, side, up And in why stock underlying also flip to typically is buy on it an but renovate across housing certain there's standards. R&R People in are houses. They general and the aging keep good to R&R

based the energy doing experiencing consumers that outdoors a lot holding inflation their are on people bills, off now something right on or on of else. significant swapping However, are

recover as as cost will across of that there is energy we and soon certainty Europe. supply So, think that

in And to a as is ongoing to certainty are in clear need Ukraine. in there's there And sentiment resolution warmer war things feel that's to currently dramatically positive. not that and the the get first is just conflict that before of increasing anticipated, as small Costs needs do to the Ukraine clearly, goes But swing the very weather. to a we a resolution on everything the one upside. we a based happen

Matthew Bouley

Australasia Second the you according plan of one, to on leverage want leverage, around and of proceeds thoughts organic kind to your curious you'd from CapEx any both use a if be and there Towanda, just share Thank us on assuming where of do with everything between perspective? kind update you. investment, And goes thoughts repurchase?

William Christensen

course, But attractive to Of in our well present down transformation That's important, we X and we projects we capital as do that that. urgent are process. do need aware available good need leverage highly through below also of we have invest get we're times. and we think to and make sure our that go will returns to

are two those clear So buckets.

– and the in – see how this view activity on because starting M&A market of a there's shake things currently already a Clearly we up there's out. lot disrupting

investing allow short something So that future But, looking enough going both that flexibility. to and and will it's is balance return. feel ourselves the to are Julie? strong again, our in arms we the we're at that sheet good that want term, it's be present sure in and we projects make de-levering

Julie Albrecht

comments. mentioned Yeah. generation I'll focused Absolutely, really really cash just an just add and well. Bill anomaly. We good view flow flow as in organic on results as Bill. And this cash his XXXX We're

expecting our of look cash When the to years, level flow back back year. to that's you this we're business get at prior

just we Bill a on in as flows ourselves. investing then, from at potential mentioned, in fund opportunistically, and intense have capital look to would to addition real generating so, own divestitures, And cash proceeds our And anything de-levering from also else, focus we allocation. that the

Operator

line Our next comes Jefferies. the of Ng Phil Please question from from proceed.

Philip Ng

operationally, you see look consistent you outside being harder results? you else And that's about portfolio Congrats the I JELD-WEN? with are Bill, do more leadership the to asset anything piece when Australasia Is over as restructuring lot a gone of picture, on delivering construction, of it What a big whether think guess quarter. strong guys under through really missing it sense base JELD-WEN’s years. taking big that makes different the under-invested? been a

William Christensen

Yeah.

I’ll your maybe and at of end front start head the So, Phil, back the question, to after.

really because looking at in discussed delivering we're homework value short there, today, clearly clearly, how it's de-levering. in term So, on to the we market is as unlock cost want we going the to plan and the and half be second everything to the base, a but

There is would And in probably sites of in a do the around sites We some world. say, have high our of complexity been organization. general, have level of the underinvested. a number I

that's footprint working project then, to we right the the sure to have through And sure So make why in right areas. really we're assets we we're make the investing in that need them, balancing in and making get automation, level of which levels doing, of facilities above right putting in efficiency. the operating we are or we're cost market at sure those to ourselves

term have the homework and longer clearly, these So, that's some are ahead that plans. we

or where to where do are market well our defining you want it As America. know, assets to and making we we in those Europe, than to at into in make play, complex and footprint from they're above is in of investing project a sure levels. standpoint a North may clearly, footprint want we changes be play But will competitive is for example, lot more challenging

Philip Ng

is pricing guys, the take prevalent, carryover past, assuming pretty given side update competitive a your on and just still you us reviews do price Thanks. we've more activity time seen pricing here? in inflation time centers. pressure? on need demand Give weaker to from to just home seeing the on And are things? you of the where line just With In guidance an backdrop, from any pricing

Julie Albrecht

Yes.

how of the we're Absolutely. continue. real I'll The is maybe year way start watching benefit just inflation there. does in most is So, this pricing carryforward year-over-year starting pricing. closely we're And

selling the we through first obviously, be that year We this from costs have, of will P&L, our quarter inflationary the running call last inventory it, in through and year.

the is any you say year Most carry of about start we I'd looking the maybe especially we've pretty of for year price we're is so, market increases. Bill, balanced dynamics. what this – And talk new planned forward. at as can some

William Christensen

was a partners to detail Vegas, a Las maybe this of few asked. Obviously, I'll back retail our retail there key reference on based question number KBIS probably a but not so you the few in I met, just messages. key is met more that and Phil, that weeks back partners

that a came forward within out. one key is of Number was continuity couple looking at there the they're organization. messages So, leadership JELD-WEN of that senior to levels more

why clearly, that's change. will something So that here. one. And I'm we That's said number that's

was one. that So number

the Number the homes and lot of issue of of is holding and lot sidelines. about a on renovators Everyone talk that and two, prospective growth opportunities. a there now believes right apartments buyers was affordability upgraders

ourselves So, which finding that plans as make back upswing retail the also that a their we're customers downturn. will our on prepared to with sure rebound, way for the to they look the to demand growth happen, unlock of of get and and kind able that end support

was positive. it very So,

little growth the There on and economics of pricing. around of view was reviews The discussion But opportunity there that is most discussion being the affordability and market less some still through topic. economics. the clearly, end to pushed are the on on very line was more user, creating and really

Operator

from Dahl Please Our RBC of the next Markets. of Capital question comes proceed. Mike line

Michael Dahl

that non-recurring remarks terms I'm follow I the I EBITDA up if may sure on of want exactly to in $XX XXXX. the in not been million And, Julie, have bridge. heard your

again, can $XXX us you've year-on-year non-recurring, of million, of you're to a I base, I'm on out at maybe more part be when guide – But $XX look volume the will that and terms on to – the if imply sure XX% billion that a I But like saves that roughly this maybe your And answer. of articulated conviction? XX% of EBIDTA. not to million guiding what heard would than EBITDA decremental you sales a decline low-double-digits productivity. So, and then at exactly your effectively XX% decremental, the was little gives more but what million – seems midpoint, and which help elaborate $XX on cost the what in flat $X

Julie Albrecht

I it, looking it, Yeah, we're level $XXX is to through And think, of million to call the $XXX million absolutely. well. profit at call that, what drop gross as

biggest it call headwind, one that's So, headwind. the

reoccur. not again, would in just then, call have, did other on items to your it, And we we XX go to other million-ish unique point income, XXXX, that, of to expect

headwinds. the are two those again, So,

So so between, help additional from is, it, call you there this actions in taken we've amount carry-forward the year this or either productivity will half that we and is us, then, range have cost year. year taking that will in first be year-over-year last call again, things and of reductions, did it, the benefit what of that XXX-plus-million-dollar

so, on of top this right cost But around that roughly as Bill's in in XXXX. And us, that this environment. of already priority And delivered is been really conviction a EBITDA same for midpoint several again, the that a number. especially lot saying is times we takeout margin you're the have we guidance morning, the

Michael Dahl

of going going takeout actions of to been understand about sales some like to type numbers early certainly what's all down should impacts started see but it [indiscernible] product what up environment, the thinking and around was restructuring? in I appreciate flow I think how lot be tough to to to move that cost I those there historically it's the underway on. Especially the a a network of volume a this to that'll kind through have give actions, sales be year, the closures bottom there's part of a still of the any guess line. lot be, now to year, or from that question be closures forward. inefficiencies, on that? complete last these And I of potential we were be And would follow-up not on seem seems cost between either and

William Christensen

I can take that.

volume basically, doing, is off. we're what So

that to well we that growth. We're So, doing. generate the profitable where not we're believe positioned there's pruning two things we're portfolio the

a it's to offline taking consolidation those and opportunity is, moving plants And that's sales other So, into the portfolio. basically our existing network. self-selected second optimize a

but reducing losing base. our So, fixed not we're sales, cost we're

Operator

of from line question Morgan. J.P. Our comes from Michael Rehaut Please proceed. the next

Michael Rehaut

to to XX%, also First about X% core and question, for hoping X% of I a guide believe. almost is I thinking on you're FX? about the to get was there fiscal how FX, down if XXXX, a you're range seems little clarity like It line total top down talking X%

So, to price XXXX those to in is – also, missing wanted not make I make want thinking think And sure I to just on as the if about there the with right well. contribution FX how if also anything some pricing sure just ranges. from I'm components. about I'm of

Julie Albrecht

I'll try there. to help out

from start X% when we year, looking exchange. X% foreign the So, just a to this specifically point, line at headwind foreign at exchange, to we're of top

– that's baked the again, into So, guidance. that's

that's mix to price. down again, obviously, And volume of core then to back and X%, being X% the combination

low-double-digit volume So, offsetting X% of increases. mostly, the to decline is, it, forward call X% again, carry price

able get should the to range. that all guidance be math you So and to sales do

Michael Rehaut

journey, thinking the taken. of kind I actions structure cost – so terms speak, an also ongoing of and it's different just know to in you’ve about your guess, I

to types of the again, understand XXXX. at benefits point are the and talked took operating know take so in as I or how far out. actions zero in cost what savings might more You $XXX that on or again today from annualized just take taken you actions take the this in think of lot this that's and of on you million to both a so, taken, cost times you a expect just function those what and XXXX. was at this the year lot the you of year you've used about, in in of and word I – to that can different expect you that in take is to what reductions if leverage. break trying from basis, benefits either last two times, actions I'm hoping XXXX restructuring take point? in to both productivity of expect But future. and believe, to in another or to expect XXXX the an XXXX and A of you took kind kind more maybe from about cost productivity I

Julie Albrecht

Yeah, absolutely.

again, took we and we've of actions are similar are combination kind year. year, with starting last and to Those in between mentioned, the guess, America Europe sites done I North basically We've XXXX, – So, of five now. this which as footprint closed rationalization.

savings tightening savings and And – there again, just then, headcount from reductions, last year generally controllable – cost. year some this so, is, carryover partial again, any of the around belt

carryforward bottom things then estimate The is XXXX. benefiting impact did XXXX $XX of and about we we that benefit split of savings, last line, million roughly in year, annualized XXXX between cost in

number call $XX pick that this us kind year, million, of if helping what's part million again, of $XX that, to it, million is we I So mentioned. that want $XXX

this year that then are, this that again, So, taking of year. the rest actions we're for

year. so, have expect that we've to already And million, that currently, we process are an – got taken implementation another, either benefit of call that us approval we identified in $XX process, would or it, kind approval this $XX million

that And of the it, million $XX so, call call – of that's savings cost balance the, again million, benefit year. in $XX this

do in do America, site it's ourselves closures, it's again, leverage It's it, holistically transportation, we, and manage reductions. than looking more the transportation, a in haven't how So, really we in especially we past? maybe in are procurement, buying JELD-WEN, That's not done just of the power but highlighted leveraging something like, we've so how logistics better headcount at we and things in but other America. especially lot, how call our North North areas,

you're cost And think So, kind of is actions between expected combined this of getting I this XXXX that again, year. about XXXX productivity. to right takeout actions, all us

and, out, these actions. are mover specific normal is savings, little footprint productivity helps some a very but us cost cetera, cost labor course. what's think the us with stakes table the efficiency et I the reduction of dial for It obviously, bit intentional in

Operator

from the Our from Please comes next Reuben of Benchmark Company. question line Garner proceed.

Reuben Garner

on Bill, first your Congrats, quarter and call.

you capacity be of how coming different kind out? generalize where footprint stand cost – product much remember horse, but how lines utilization can't got it, just you facility consolidation, about but but could if can talk you savings, just dead to and that rates that sits, a know you've I and or So, lot a mentioned rationalization I the is think beat framed of I types, maybe where not helpful. would you

William Christensen

of just on the in with room put clearly revenue It's one on consolidate expected to And, footprint. complexity obviously, our there's of an high-single-digit, that hard the business. further decline to based number core

always However, long-term view is for the the short-term balancing us, profitability growth the trajectory. and then

exceptionally the we're it's products are really We're it call doing well, strong adding So, growth that on today. together multifamily doing side. in. The in We've The capacity. we're actually balancing the talked is bringing on other segments the so that's adding about and exceptionally in VPI the on well. why points LaCantina capacity business see investing the we

So environment and a needs general, to I'd that's which your homework, be say, we're good to do in doing. done, what it's

Reuben Garner

potential XX%, would tailwind things trajectory probably see side, like America down North measurement than gyms something specific On but pressure doors of a the this of per late. is this we a Just changes over in under that's and year? doors the seems homes? in whether it that's question, the if home, it's it volume less is folks are number but I starts of any that reversed it's different offices or be as their years, been that adding or the know

William Christensen

would I Yes, no. say

opportunity more exterior houses, solutions that windows Just you either in the general, we on more see have smaller focused need We're the it's you much imply driving – clearly delivers. that end more in LaCantina trend high where would and and much more doors. larger to a areas multifamily, doors so and example, there's in rooms, like so for

see areas as longer those we're per better why what I us and focused more And actually that's we're on. that's So, transaction in term the we think that's value play where for and investing well. that's

increasing America richness So, first clearly North in no team the are that on. but and to of focused question, is mix the the something John his

Operator

comes next the line Our Steven Thompson question Please proceed. Group. from Ramsey from of Research

Steven Ramsey

VPI. I products growth two operations, these the And you wanted scale surpass drags you to in could margin corporate as Auraline and you the margins? up for these on expect this focus products XXXX, on Are do these EBITDA at guys, point revenue XXXX?

William Christensen

Yeah.

these there that well strong ramping startup up product And we're the are feel in et very running we yes. anytime et So, the as project, into why investing expenses, that the clear is know, attractive cetera. and pull We you're lines. expectations clearly a products costs that's consumers. market. And you cetera, in product the or They're answer meeting have a of tools, are

that have we last business or Auraline, behind the at with us we're our internal clearly, the for So, above year, expectations growing cases.

weeks few Coast a a orders I backlog here multifamily. have on East back, environment of the same a up we're a VPI. the thing and headed spent a So robust they very And day market plant into happy. very six-month with on at

very pleased segments, we're those was your question. which specific So, with two

Steven Ramsey

little On it effort? detail? or by And multi-year equation, this completion windows more you're the the portfolio is more that Is anything of a you something a on? is flip share nearing side, this Or part on the maybe pruning doors can geared geography?

William Christensen

Yeah, no.

European So, I'd portfolio. portfolio say was this The was is effort. I multi-year that referring the specifics pruning in a to

the things UK, closure the business because out we of it three of just our actually of is, we competitive we And One Melton the is that our through Mowbray the windows was did the stepped in leader, in on focused loss where capital a believe and need win. get position. platform can or didn't view to resources the we clearly, we right have sites we

between also it easy focusing So And that the where an close of focus portfolio. areas that on really portfolio, growth the performance. was exterior, of driving on one within sites, interior, to out decision clearly pruning segment, high was and the and door we're balancing across the the step

we at, setup are longer looking portfolio growth. for John the America areas those right And figuring are in all and out are that have So also constantly term ongoing. clearly how North really that team his things

further this if our two and enterprise you clearly, macro relevant on mentioned portfolio, are at the in a look regard. announced, we One level then, areas it today we've on is And call, that of obviously asset be second which comment Towanda on review America. of that. our is ordered obviously Australasia here the No divestiture North court on would And our track. business, strategic in

are potentially simplify and/or things have our to portfolio. that could those an also So impact streamline

Operator

comes proceed. from Patterson question Wolfe Truman final Research. from Our Please

Truman Patterson

volumes, cost heard across pricing $XX EBITDA a and reduction. million call maintaining million more I There's really in productivity bridge. purely bit Mike's $XXX of headwind $XX robust million we're a EBITDA you these? kind on from or to on in other bridge, another million costs the returning, little wanted that be that follow Just Is still an will $XXX If right? lower up of assuming all

Julie Albrecht

Yeah.

a think things. of I couple

we again, we a the think, I the what it obviously, today. remains say year, should all start be challenging know we – I'll feel these good – pretty we so, as all that reasons right? all right, no And are ranges, they about of about. for But, macroenvironment

but $XXX through, come again, to dropped benefit And year $XXX call more this the that we perspective, just I from I’d $XX or never a know I out a perspective. threw cost I'll up $XXX nothing plus million. a minus sad. or of that that's really it dynamic, so. little I'd And again, other say what might guess you a million That's it, So, like point, out again, volume material. call but mix income say million know say from million.

to to cost, positive. slightly our it comes outlook now, right When flat is price

And that year, dynamic. I very so, stay will guess, as dynamic, we go through the

key here, the to big kind in with think I got directional think so, we're of Truman, is ranges I And and expecting buckets. But are is you've what these these from just work that. everything

Truman Patterson

might Just of you America, new interior from gains kind if you doors channel. builder there capacity, that then, pricing be but pricing XXXX in is to throughout also X%, correctly, assumption the improved that. in incremental the carryover, share volume market embedded all design and primarily purely in the Was And what mentioned heard in of year rebates? X% In occurred that there? I production, North

William Christensen

take comment of can before the part your the me on Julie Truman, last Let question, then pricing.

to share at the The different So, we clearly, market some market. are that increase business partners large penetration with balance know opportunities regionally our look our very better North customers. is you American supply always in to retail and there and run regions

probably strategy these that an will is and we're partners. managing different penetration They're their with our line one ongoing managing process end. retail card, never this So,

answer would be to… the Then, question. the to price, on second you Julie, your that want maybe So,

Julie Albrecht

the Definitely first price it price you call this and us the year-over-year is, in carryforward we're the does half price Yeah. landing half And then gains. point we our what price of, year neutral is most positive, of benefits. for pricing, the give benefit first negative it, of last it, when were, year. the pretty price cost But cost look dynamics at on expecting this call year, at cost point

Obviously, comes demand to when environment, is And doing? a is it then, dynamic very right? this What again, think, inflation I additional price is down. increases,

we're type it planning really action. This price And expecting I'd kind cautious for increases. of it, of, call to isn't environment comes the say or that opportunistic so, when

Operator

That does closing for the James conclude today's Armstrong like call questions. over I to now to would remarks. turn

James Armstrong

our Well, you, today. everyone, call joining thank for

and If follow-up to you Thank questions, would this And be have have day. a answer. and please happy ends reach any out great call I our you.

Operator

This for Thank your ladies you conclude gentlemen. call. you, Thank and does today's participation.

disconnect. now may You

JELD-WEN Holding (JELD) 21 Feb 232022 Q4 Earnings call transcript