JELD - Earnings call 3 2023 | JELD-WEN Holding, Inc.

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Operator

Thank you for standing by, and welcome to the JELD-WEN Holding, Inc.

Third Quarter 2023 Earnings Conference Call. I would now like to welcome James Armstrong, Vice President of Investor Relations to begin the call. James, over to you.

James Armstrong

Thank you, and good morning. found quarter presentation release portion to website, can third posted night of our which slide a the be issued XXXX last earnings and our We investor.jeld-wen.com. at Investor Relations

by Officer. referencing be and our I'm Executive presentation We Bill Chief will Chief Financial this Christensen, Albrecht, call. during Today, joined Julie Officer;

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

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

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

William Christensen

marking provide against strengthen will journey to the to activities. short-term of our their better a before thank performance it executed more want transformation call JELD-WEN report for for forward. as Julie that in especially and you, in environment and I'm you today. going expect of work I pleased than and us the third progress the our quarter our continued thank results well on a quarter results that JELD-WEN. have then will James, row quarter what results I you, entire to hard we our operate third the we were some team I goals foundation everyone, Today, we of expected Thank from share to discuss our in third financial a first improvement turning brief to can detail. our highlight challenging business over overview joining

third quarter our with on begin X. I'll Slide highlights

were continued in to sales earnings above with results. solid forecast, While line expectations, primarily our were price/cost our due

pleased flows and on proceeds. business structure. generate balance continue by long-term also the our I'm earnings we are of our the in debt and improvements. to driven third cash quarter delivering commitments early simplify also Australasia divestiture completed to repaid the our We that million strong the with We business cost working $XXX of capital better and

certain to cost on continue slide. we more addition, including In business, from closures remove the next in our that site North America fixed discuss I'll

are We to further later our remarks. about actions shareholders, value I'll significant my in talk unlock JELD-WEN improve for performance and also which actively planning

Turning to X. Slide

with costs activities fixed our of to facilities. closure announced X of the to strengthen we foundation, reduce ongoing continue part our As or our closure

of we during facility our First, the closure completed third Atlanta the quarter. Doors

closure. discussed million EBITDA result this $XX in savings we approximately year, as this year anticipate As per of earlier a site we

and primarily this our continue to fiberglass, towards we wood in Tijuana Next, are process Mexico. doors IWP Products, in in exterior International has become as business makes the specialty business. preferences or consumer closing facility non-core our of Wood operation This to move

$X year, relatively at are small further it is approximately savings Although million the simplification. a a

high underutilized cost. Finally, we operating and had closure manufacturing announced Windows facility, Vinyl was the California Vista, of a the which

by $X facilities therefore, within utilizing other our network existing approximately to million capacity. expect a better the and to save moving year We production

look forward about I for opportunities see we in our to future as the continue We to simplification execute footprint, speaking which further our plans. of

Julie, it performance now go third our through detail. in more quarter financial I'll to over turn to

Julie Albrecht

Bill. Thanks,

X. Slide to Turning

the see for consolidated You our of third results quarter XXXX.

by Our due third X.X% volume quarter partially revenue to was our Driven year a ago. higher from offset market-driven revenue core in reduction billion, $X.X approximately reductions, pricing. down by a slightly

Our in solid quarter, as management reflects lower optimization. EBITDA sourcing site X.X%. head was basis of EBITDA areas count such adjusted actions improvement execution reductions, savings strong freight margin to and leading adjusted an approximately of points million despite $XXX This XXX margin year-over-year in productivity volumes, the closures, of our

additional about I'll trends a X comments on for Europe this you was earnings price months North to find also, increases And partially including cost inflation. year decline pricing our presentation. segment by quarter shortly. walk, our driven volume the appendix details third of see revenue second and America was of to realization. of relates in provide half by of of which offset and first volume the X% This our the higher year price revenue you'll Slide the quarter As offset mostly last XX%, in third lower X, mix our

pricing On overall Slide adjusted We offset price see that increased favorable inflation we partially by impact from Related the solid contributions million as and approximately to volume $XX profitability which continue generated see costs. cost, price year-over-year. mix. EBITDA in our lower were X, from focused cost discipline to you our are by improved we on productivity,

cost areas, While inflation insurance. as pressures in we see and is such areas labor in certain lower

are in quarter, our reflected these EBITDA are on to $XX we third In that of in approximately Additionally, cost million bridge year. we approximately productivity SG&A. the realized on savings achieve savings track million and this $XXX

earlier of rate actions run started this to the Our is increasing timing year. due that

results earnings segment of price in our a year of X%, XX.X%. as well stable of was flow. by which strong million cash X%. standardized approximately a region's Despite lower focus down to ago from a practices. margins North the levels. This our was decline the $XXX revenue volume is to management America X%, moving positive market-driven of driven rigorous sales, generated weakness, X% quarter, inventory remained delivering million of reduction had as at year-over-year, segment cash X% down with mix driver demand on North North third result to America realization A from the on impact our core America due and EBITDA In Slide is $XXX inventory results a solid key more XX. Now adjusted flow while team

million lower mix Across price million in on Core our $XXX North which of region, by actions America adjusted of realization the continues revenues revenue identifying efficiency improve executing to was Europe decreased and XX%, capital higher operating and by metrics. our higher productivity XXX team strong This volume the of driven by Europe cost volume offset EBITDA. both flows focus points XX% working generated ongoing to partially despite challenges, our improvement quarter, Similar $XX was XX% North America, in EBITDA in leading to focused continue and will year-over-year, this earnings delivering and the solid focus and margin cash improvement Adjusted due into a XXXX. to team is and results to gains. price X%. was solid positive basis X.X%. to on

turning the on XX and with outlook Now market Slide starting to North America.

has and but a declining sale improvements expectations. America high R&R call. quarter and for expecting U.S. compared construction better earnings of with outlook year availability permits, given decline. existing and second for single the a the volumes higher homes incentives, expect lower to interest previous previous we new to XX% in to XX% rates housing single-family our be on home continue America versus now activity presented to digits homebuilder our down than are We slight We year-over-year due our XX% our starts for improved single-family to In to North impact both XX% North home full construction outlook

repair we will down After be geopolitical R&R In to continue now throughout range saw third that a the at are the anticipate slow start anticipate demand market and versus and down the activity region's pickup our as the due quarter, our channel. digits and by markets, For believe expected. we the full mid- critically macroeconomic the volumes year mid-single-digit low challenges. remodel we in levels to double to be low that a ongoing weakens in inventories Europe, previously range high single-digit to to

was what mix experienced the months this volume third XX% European quarter Our first quarter. by the and year, in a we volume fourth mix in down to similar we expect of X decline

broad-based side, to starts declines residential country some of in down depending and specific as the see by as XX% much construction XX% on markets, we XX%. is demand in new the On residential construction residential

the In XXXX as In market new environment. are near and beginning due under in remodel pressure but the term, being commercial remains works declining signs Europe, the volumes macroeconomic addition, through in of repair projects continued backlogs and are activity delayed. show to in to to stable be soft market are expected construction the

for outlook EBITDA. our full adjusted Slide On XXXX we provide updated XX, revenue and year

due billion of tightening adjusted are the are $X.XX million we conditions, billion to We forecast solid $XXX While cautious ability our and outlook million. full results $X.XX our year we adjusted be fourth uncertain between expect deliver quarter to are between EBITDA guidance. our our quarter. unchanged now third the guidance revenues operating for raising EBITDA of in XXXX ranges and to and EBITDA revenue and we Further, to and our continued year these adjusted full and be $XXX our in remain confident midpoint the

low the mostly outlook our mix. revenues double-digit in decline versus X-month price we due offset year as our year-over-year year's increases. X% revenues first down expect our core this the prior quarter, for fourth volumes volume to to limited a increases Specific with price combined were In by revenue, core core carryforward reduced lower

our down this of X%. for full updated revenues core to All X% combines to year outlook being support

Now turning to XX. Slide

of updated the for our You first year quarter in X guidance. the can fourth this how with our support months to see results year, our combined full outlook

volumes. expectations, ourselves our were I've savings line successfully better morning, invest which outlook continue delivering price is strong my the fourth third on prior balance initiatives. lower cash our continue to described to planned execute sheet. quarter, quarter and cost global this expectations, as strengthen of expect our our our in our in further actions year-over-year impact reduction to cost comments As than focused in flows In cost We remain generating on and we the mitigate our we with benefits

contributing Our was increase improvement significant The capital which to the in quarter is of driver year-to-date million, a improvement. this operating cash all $XXX same is million cash third flow working primary components to improved the with flow strong last working management period $XXX capital year. over

opportunities focus see to continue we our across for on working capital practices reduced implementing We best business. as

to Xx X medium-term our have and our of below goal near-term net pleased updated between are leverage achieved target be X.Xx. to We have and

now to JELD-WEN's for it financial back performance. improving turn discuss plans our to I'll Bill

William Christensen

Thanks, Julie.

results our towards Slide XXXX performance the shows driving Day. address true XXXX have targets take that JELD-WEN established JELD-WEN is I XX Before since at want to XXXX. Investor that the been I a goals transformation instead macroeconomic comment presented then. the second our our to on It goals, conditions of journey, Unfortunately, deteriorated. in steadily tough

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were we in the are long-term a communicated company's formally result, As targets withdrawing XXXX. that

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Moving to Slide XX.

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that from proceeds the repaid reduced and long-term target. leverage below our With Xx our sale, we debt near-term net

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Turning to previous I've focus In strategy. areas: my earnings and Slide shared performance people, XX. calls, X

now drive want, able To and to focused is X adapt performance needs to areas. be journey transformation change. Our our we the on investors the deserve, culture and first

to focused and and on organized building necessary sustain the organizational then have on and culture capabilities potential. is We required improving trust measuring, a includes improving reach stream and behaviors full cross-functional JELD-WEN's capabilities our health. work that the This focusing

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work growth and through performance initiatives. we our also on we're both culture, improvements cost As driving

Our on force pricing instead the capabilities further as processes our basics include We're to such improving we also don't and effectiveness. on increase fences, focused plans go-to-market focusing as to upgrading are growth for inflation. swing plans our anticipate using sales our the training but

have on Most reductions, themes on performance accelerating already both expanding and cost efforts of focus. our are we near-term in

among We utilizing and manufacturing and across consolidating our automation, smaller investing streamline network, many scale are sourcing to rightsizing in other the initiatives our organization.

as firsthand and example, of and Board in one we manufacturing inventory have last leadership doors our the site As Garland, areas management. opportunities such our visited automation Texas, team where we week, saw in Directors senior

Additionally, as cost on on solid previously, investing ourselves we as reductions, be more we projects. high of our drive to permanent these we'll execute indicated pipeline ROIC

color transformation on forward. as next Slide In Turning going well to as our more are call, and which XXXX action we will more investments our sharing giving our conditions, in our forward XX. market I to committed mid-February, look to be internal journey on guidance earnings plans.

scorecard as to a near-term We of our progress. well measure will expectations as also provide our mild markers

deliver continued We are the appreciate opportunities I'm more results, interest near we confident to improved metrics. anticipated expect about We and XXXX actions profitability your significantly headwinds. than can in our macroeconomic to JELD-WEN excited overcome and improve sustain In the term, that JELD-WEN.

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

James Armstrong

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

Operator

Jefferies. first Instructions] from question Our [Operator Phil with comes the of line Ng

Philip Ng

first unpack think help team's for well. your in early but stabilization America kind America quite demand maybe really and in a give seem JELD-WEN. what North backdrop. of and to in accelerate some demand market like but peers America, that the of down Congrats looking just seeing helpful doesn't are on off, perhaps housing, North read, many us kind fourth the standpoint in R&R to high this strong North quarter. maybe a us from of single-digit to about It volume case, performance year and declines talked could Europe, color XXXX, any in on building the executing growth declines since in out have tough products it imply you particular, flat means The obviously your I guess, I any I think maybe

William Christensen

Yes. Thanks, Phil.

say, we these, stabilize So are market level. at low run the seeing rate I'd

soft. in So The mid-single current to What what if from us of it's Europe, the single, we Similarly, market expectations surprises in early for improved we're headwinds 'XX. no down it on you a we're basically remains high bit had That's there. to on saying for us QX seeing. reality. R&R are remember, is down. too our guide kind

QX. as we volume a continue expect into We that decline roll from to standpoint

QX but share of going So on clearly and XXXX. in but to signals our talk on also when no results, February more color views also surprises, . we our we're rebounds strong significant no

Philip Ng

Bill. Got it. That's helpful

Sorry, go ahead, Julie.

Julie Albrecht

going North to that strong were was America QX, I pretty in did just last add, through. we year we backlog a have working

year's last help in quarter did that North so America. And fourth volume-wise

So this that backlog same working year, don't we have through.

that is just And so dynamic. from there more volume-wise, headwind year-over-year bit of a little a

Philip Ng

in really probably give backdrop have you're where me journey. From a contextualize But color opinion. $XXX little more once in going us million you baseball going cost demand And you're a of so analogy, of help tough with guys Bill, the this savings far truly my February. impressive to are a is again, achieved in tell you us kind to

Phase like us I, gave Phase II. You

next accelerating in half of we In when next are and kind terms and have year, you to demand cost you EBITDA build next year? demand year of tailwind kind can again, a kind another savings, million look weaker grow I this standpoint from still in back still you inning $XXX build out this? that to of seems Do to its looking levers can from off actually you challenging. what is of out offset think pretty Because the -- enough once year, where perhaps visibility

William Christensen

Yes.

question, start me with let Phil. the second So

we're confident based there's of and ample be to that use us current early gives projects say that the sequencing So on we're we definitely our that conviction today clearly, to that's able offset number a is baseball going saying to opportunity, in feel I'd analogy. expectation. what headwinds innings do that volume clearly the we're we're

We resources that prepared the said it. expect process from the will the across around pretty and broad-based through of some we're put a process $XX roll some opportunities, as put all of XXXX. $XXX I into sequencing my million And to pricing in went in on our we and organization it forward remarks, roughly million gather

of is the from roughly will we've is expecting, significant high to XXXX. projects. that's Number fund X.X% of increase a projects, to There's into of of we're what ROIC fund a X% so number or CapEx those to been quarter a up. into going moving X% have, those kind signaling expectation we're our two, that's kind expectations, EBITDA one, be as And couple dialed implications getting our

performance that. based the flow, on have ample self-fund cash all We to obviously, of

So been given pretty we But conditions. current has you feel know, pretty Phil volatile. as market comfortable well

more when really continue. can So we a will our share in lot and execution sequencing a we and definitely obviously, better projects share of February color of sight line

at we'll point. some give detail more that So obviously

Operator

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

Matthew Johnson

implied contraction else over there down recognizing be This on guess, margin Matt and is based looks will XQ will on John. actually as XXX which Johnson it the it appreciate first for driving a like sequential like X.X% I outlook, sales basis little off, anything I is your margins? EBITDA XXXX points lower on sequentially guess, looks be I well. sequentially is around in

Julie Albrecht

see margins so Yes. really, almost not mean, This in very and look is is XXX trends about sales quarter. EBITDA, and we year operations, Yes. quarter at the No, think down ended our more Julie. guidance. When that that right fourth the points year's you last that is of over has really on I seasonality demand about really. it's with typically maybe fourth X.X%, the and basis our holidays -- year-over-year seasonal. implied and importantly is you're impact that really margin That historical the you our looking and

I really the And drop-off that is year-over-year improvement more in sequential so highlight what I that's than of more think fourth would the quarter.

Matthew Johnson

guess, during to third And driving Appreciate a what regards that. this? of bit And R&R then the activity Okay. quarter. of I this mentioned XXXX in pickup with low you across XQ are it if would guys being within did do guess, also inventories some phenomenon guide? happen? I you the think seeing expecting you a a more Or channel guys very be replenishment your was

William Christensen

Yes.

So If or of in planning rebalancing channel. the did significant expecting it 'XX. we're inventories happen, any definitely not

stock points below retail trigger tight. channel been is stock, reload. big some consistent some drop We're are our have in that of seeing for lines comments extremely Our XX% partners outs. to We're seeing inventory which

quarter declines, the We were as So played expecting, shared mid-single-digit in happening. there's that's specific is we which kind balancing it's out. how of third

and this. And the reach. are exterior, daily consumers obvious doors that news all driving I windows almost the are hear say point spend basis of feeling depending to reasons you're wouldn't your just general I about at any Year-over-year into we looking the on that we is on mixed, a for specific that factor cautious about comps would if or

So major into rebalancing QX no no in of changes big baked QX and that expected are results. our inventories

Operator

Our the with from next comes question of Stifel. line Stanley Elliott

Stanley Elliott

for is long think you're of CapEx long on question Just how bump a on this next free for it investments, the two, get automation one, quick looking what flow. CapEx you this ultimately standpoint, up A And trying already at how will year? piece. then these kind guess that end my will for, sense piece, do last? from elevated to getting Some the doing of cash you're an teed up

William Christensen

Yes.

X-year There is I'd projects volume we're and the ample digest definitely just working sequencing. that opportunity the now a it's and we're to our do say is and on So what execute organization of through topic. not we ability right have, of

invested X-year. of Stanley balancing. high-impact as obviously, to complexity to sequencing differently, do achieve, things X- think very have return at we're duration we're So this And projects. that like a you attractive cost obviously, Said capital. more achieve, and And we're making sure on to looking

and uptick in that saying, have myself X- So reevaluate a about we this state X-year do had the what at insights are sharing invest is we our that. to we need that. did And were under-invested union that we'll started to sites, since and of to We point, of JELD-WEN signaling kind and we appropriately in sites. CapEx. And is been the many as we starting the the it's not process reset Julie clearly at too we what

free Stanley, of for the implications size make Julie can flow cash kind on can maybe to sure So comment appropriately. just you you, that

Julie Albrecht

still very I'd confident the cash of year flow generation we're week what business. obviously still week, with rebounding -- flow great cash we've we're bullish say is had year XXXX, about generation this and unusually really after And so a a sure. Yes,

improvement February of as we'll in expect opportunities to next our and amount call. year, that about EBITDA, still we working next think You year into look more strong deliver for provide and some capital on

improvements you ramp really expect as the restructuring operating cash still would expenses business. increase said, capital think that all and about when cash to year. costs, nonetheless, But up to we free in positive we investing this flow be ourselves But other next is and

got still in would all confident well cash and positive but expect again, ourselves, the flow putting obviously need invest as CapEx to the staying We'll XXXX. generating we've absolutely as funds. be we're So OpEx that funds these we together, free to plans be in again,

Stanley Elliott

just some doing And you of kind that all. of you're a the products of about marketplace mentioned. in for on the what follow-up, some products growth talk you the of maybe as longer-term targeting? guys you talked then Perfect. profitable as some capital Maybe behind remind the us Could the are things of plans about design and you're win kind scenes to explore new new you to return

William Christensen

Yes.

we're for we Investor you shared Stanley Day XXXX know, for guide was put XXXX resending at kind as So goals. the that all that once and out the of today,

If of opportunities. around our average you capital significantly be of that at. to things logic look and there's of Obviously, on above a our are ample at that weighted returns return couple see cost employed, kind capital delivering need we looking we we're

definitely or we're better. So high and kind opportunities looking the seeing. returns we're that that this The of is teens at kind of

that expectation need But and hit that's working our a we investors our hard to ratio our ] conviction we have deliver. market and a clearly, stable aspiration. singles on in high capital that [ quarterly the to really some that's on something promises. with create a and And we're trying delivering So on we're basis to

ourselves. ramp capital foundation going to delivering and and and of according show appropriate to that CapEx, we're the to the the ahead make sure market returns, prove the we'll just our up get running is that want fixing to tackling plan. want do don't And We that results. those we see by to we as blocking we So

Operator

with comes from question next Maklari Goldman of Sachs. Susan Our line the

Susan Maklari

think about start next especially come price this relative year. And you're a end through you on year to I thinking continuing Can to see that to business? inflation little the bit maybe into that and any mentioned the you of then talk let's updates cost. you're how pricing

William Christensen

Yes.

can some that's high-level maybe of add I'll couple Julie more So give if a color maybe comments, appropriate.

lower the see cost And be second we as this our stay we we're base started but signaled that HX third have through prices is because had at higher up. half. positive. year goal -- in -- we of against still inflation, really a would So then effect price it's last comping point we but 'XX see earlier the kind trending pushing still a We to the do we it's in year, rate, do

major no our currently because But that at have market we're we the are opportunities point that planning sized. time, we There's of at that the kind for is input appropriately actions evaluating in perspectives price look feel in as XXXX, we what the we're this sourcing and costs.

So do year. a what evaluating, high but level, it's obviously, status we're to quo, on we want next

Julie Albrecht

in been the forecast, quarter the to impact year-over-year very that, top the other trend year. Susan, mentioning the only fourth all just specifically we've price Maybe add and little little to in our And very price very But I'd is color mentioned, in we fourth quarter. as have line cost. this just Bill

and is mix basically driving the volume decline what's QX mentioned really, reductions productivity. our by cost offset then outlook So again, we've really and that

a had say, first in so I'll the to, fourth So less lot QX, We we really in out that benefit. expect quarter. do in significantly cost half price flatten

just adding So additional that clarity there.

Susan Maklari

those helpful the terms color. where process made quarters guess all going to how should about forward, in we of we of view you've then, the that asset when announced has, base Okay. facilities And in higher through the that couple the That's think first of Bill, the of will some -- this remarks, some this to are in given of or already any are and business those this kind I closing. think about prepared year? be of -- you completed you progress that those your outlined changes

William Christensen

Yes.

I'd there's say of factors. a couple So

this definitely into process. overarching number headwinds a and There's kind topics we're on finished, expectations coming macro not our is obviously, So midterm of that decision-making Susan. are of volumes. One,

regional is to Second, time to full presence customers. deliver and on our our ability and

a place. in have we So it's the network sure making right that assets basically, view,

between effectively talked Third, what and today already are balanced labor automation. we've we about investments in is,

today. argue And I balanced we're would not definitely

So this to us benefit obviously, then for And to also serve the have a ability is we opportunity there's big that, customers. probably to rebalancing forward. that move the will to a and lead sure we there's that as be also to a cost a going of assets make but

lot that assets. that said This long-term operating which a sites create leads question not are to coming process. the And we there's we're we've fewer is a process, high-performing in your of constantly and into topics need definitely answer finished. this no, then overarching for overinvest is, So that decision-making we

So again, I this when use you the automation quarter. early game, lead we're a on the going And something to the is some of especially with that this we're to around is look solve not the at shared times in Phil, the next world, that long analogy in innings.

Operator

comes Our of next Garner with Company. line Benchmark from question The Reuben the

Reuben Garner

seeing to categories X the in Or on doors So from the maybe months? Are there within you standpoint what start clarification changed that's near are anything sequential stable? or pricing outlook to a guys pretty any on last been over X doors a windows you from windows competitive term. seeing or are the -- Has standpoint it versus pricing? a

William Christensen

and I'd that flat. Yes, it's pretty puts all it's in, Reuben. flat, there's takes, say but

Reuben Garner

And in discussion. of kind Okay. your then longer-term

used. mentioned things What at would helpful. pricing been be you the less centralized? Is looking Any centralized detail mean? terminology I have capabilities, think, that was You does than that more

William Christensen

Yes, sure.

would been environment, that we've organization so prepared our inflation capabilities the potential base those one means kind react to getting as fact systems So on volatile of an that aligned decision-making that make we throwing ourselves not they make as in robust volatile could the environment better within have feel couple would to react, building the into documentation decisions should years, to and high to argue be And be a area. to that is be. able It's last sure we yes, continue. organization and potentially want I to as create we're been and better and environment that of what

to we're just And homework. second our that sure point is make doing

We have player. portfolio. We're global broad a very a

teams sales on of a world to and job many different in operate pricing the we the guide our make we're around we right doing want sure So to decisions. documentation and markets, that data good with just supporting

Operator

with from comes Michael the JPMorgan. next question of line Our Rehaut

Andrew Azzi

Andrew in rest point get your comment I maybe channel retail kind perceive on on compared of and the you the underlying market? for is the wanted of to And Azzi for ask to on can trending sale read monthly trends maybe relative volumes volume just to you how industry? your the Mike. of if how doors

William Christensen

Yes.

are that Julie we've to the through remarks, retail in out kind what she talking our of which market. There's we pocket the for EBITDA sequential as prepared of kind the seeing general way But margins, industry. normal obviously, feel was when the downtick comps, that the about of is we're of digits. in and don't in segment our mid-single talked So of we down seasonal a based on discussed QX be the expectations, kind

general So and And line obviously, with participate, I'd we say regions. we're in the different number geographic in trending a of channels market.

results some quarterly environment, a competitors customers, last discussion customers opportunities and this Europe, had we support and the we're to in and discussion, not some gaining was on see pretty because actually were in volatile call. want did some themselves the overextended it. the have We some share we as there So able

our volume was Europe. some of production there number of sites different to a transfer across countries in So

just So our presence. in we've benefiting the some scale on size say, cracks the we're show. general, and tracking to But and our and and are based in with line of what seeing. market definitely I'd And been starting from we're that

Andrew Azzi

capacity if then there? comment maybe you overall sense the in could for on how utilization And tracking is That's helpful. industry your

William Christensen

Yes.

share detail. can with our there's and Susan's question wouldn't kind what a of a is lot us we're of deliver we that cost The supply market chain also products just into thing we and supply this to from optimize I to talked opportunity and is one for kind that chain different say, standpoint, rebalancing segments. what about So global of doing

automation So will help. really

products is because or in issue year-over-year. down volume soft. around It's I think in general, a the know in I building utilization clearly, general, world there's

We expect that current expectations on continue to into based trend QX.

that cost focused of taking we're that reality, homework on good we've job overdeliver and the this I is care is pretty holding with done EBITDA, capacity. what the managing side quarter. on which price of But on there to So excess happy feel market a our and

Operator

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

Steven Ramsey

there of On performance And along which of fastest of the X points furthest achieve? these maybe which this is key bullet biggest to is the are the growth them, juncture? do Phase the there, mover, these levers, the of at X which these maybe feel you is

William Christensen

participating on that effectively. do in. opportunity I what in just segments efficiency kind there's to sales where general, more force levels are, just an is of things different think I think do we're based we maturity of

an different Definitely, a efficiency, short-term improving and going there's more pricing better et go-to-market levers, things a levers. process cetera, short-term doing we're be that opportunity. So But there's that's go are into the sales are levers. our and around midterm force what not lot those clearly of to segmentation, training, of

we're zones we and of sequencing we As the can then the we look the opportunity that benefits going how into the see that balance time in through.

we're benefit our So against time achieve. this is to also process make part that balancing sequencing and complexity kind to resources of and sure of

Steven Ramsey

Okay. about then is in Or than component be not forward? much QX. think you year? And that EBITDA early in the when I into better that move to productivity maybe we of going about of as kind talk quantify, is as improvement and clearly fourth that benefits significant QX moderates something Helpful. Can next quarter but

Julie Albrecht

actually higher fourth would productivity. I I quarter, Yes. expect probably the in would say

going that on more we've productivity of combine higher activities as taking day-to-day and that base again, reductions, been closures, call tackling and other cost You operations. in cost head it savings again, are going count it, frankly, blocking call that productivity types the level versus, quite site well and explicit about actions talking business, as reduction the the with, across intentional maybe day-to-day more, of project on,

right, So same again, that QX bottom level that face about really noting this for we're that price expect line, And I earlier I mentioned headwinds productivity we demand had from we've QX and these into year. that cost QX. benefit we mean is before, like as talking would we important, of in the that accelerate to don't have

going today and a yet But we So productivity for year, year. before, of lot talking I'm a there improve as and -- expect as center to well. of as next profitability. has I into again, around be And as been lot of and to cost view opportunity the to about some to continue what mean, we that well next going reductions mentioned does our quantify we've not growth Bill items

Operator

with Riley. the Our Rygiel of from line B. comes next question Alex

Alexander Rygiel

revenue is to there from relates anticipated it facility X closures, loss the any those? As

William Christensen

very Yes, Alex. it's limited.

today prior with and that least the take As there's be to baking closures, our expectation going able that's pretty we to what we're model. confident our into feel and offline loss, we're asset at revenue nominal

Alexander Rygiel

can of new you in investment uptick? also then in And CapEx talk light products about the

William Christensen

Yes.

clearly, areas growth things well. innovation, as at it's growth, other windows, some are growth, clearly, a and that exceptionally that we're base. I to see cost going doing our create are not we products to have growth there's in a So off mean that doing also future. be we But we growth, low Obviously, there's growth. one looking product we composite exceptional mean, look around opportunities. take out. which but automation point demand. high can where I'll will the factors the we percentage And area strong I be how innovation at

our in underpenetrated. area windows, business, an that's which multifamily So where we VPI we're is believe, clearly,

lot great and of there's We products, have team, a great a opportunities.

about well we're where spot taking just yet of products. we're and and not pushing It's doing new So really areas kind what it it's into active. and we penetration white also not about have,

more pretty people lot seeing to ample performance in starting the about, around that's innovation. the it's also opportunity we're longer-term about and We short term. challenge, those do So but happy on That's there's buckets. what for now, we're in term short a work something that a of do and right have we're to think

Operator

comes Our next from Truman line Patterson the Wolf with of question Research.

Trevor Allinson

Trevor Truman. on is for This Allinson

So I'll start on Europe.

some You margin but there, sequential year-over-year not also guys a nice on really only improvement basis, had basis. a on

were margins XQ. versus points I think up XX basis

down were revenues sequentially. Your

continue maybe about Just you that put in to wondering through? there sequentially? forward to normal then should if outperforming think margins And you could initiatives about of seasonality margin improvement what drove we improvement flow some talk these going

William Christensen

and I mean, as pretty a I shared release and there headwind. saw in comments today, that is you the the significant volume Julie

look volume is volume you at this teens QX, in the high headwinds. were mix If

productivity pleased market. combination price/cost improvements with and in that of we're we're making. we're It's a making tightening the So the up that progress positive cost,

not yet, expecting definitely Europe. we challenging say across but And we're there we need so environment I'd doing what be to are continued macroeconomic doing,

interest I that inflation, expectations macro that, our rates. volumes. see you continued see building effect detrimental will have are And on a products reality you mean

an We going are getting the have a heating into war. become energy costs issue to We're season, again. where

times a So environment, on comment doing expecting nice and QX, job. a tough Julie but it's can we're And tough we're ahead.

to need make that done the to we sure for homework So reality. is that being prepare

Julie Albrecht

with that Thanks, Bill. of And doing. Europe strong. a quarter forward. margins pleased they're were third Yes, absolutely. doing team We're Yes, really sure. going is great lot in things what the very

show that same margins their quarter of outlook Our don't really for fourth level improvement though.

not quarter. QX probably In Europe what last the I delivered year, in to of we're to level back of mean, probably getting closer fact, to going this say, fourth we

XX% XX% volume kind still we're Europe, Europe's in really of down volumes year-over-year for quarter in fourth So expecting to again, Bill's price benefit. to year-over-year limited, point, the that

volume pretty around so one And work for large the and headwind that productivity despite such. is them a all good

I'll like probably I levels. closer we expect, QX So And a QX exactly like don't that like year, level similar into margin those this to in Europe. more maybe say but not QX of something again, something of said,

Trevor Allinson

but head onetime Okay. down the corporate coming unallocated fourth back in I that know $XX year-over-year. good run million from how costs about million unallocated thinking were corporate savings count costs reductions. you've also Understood. Is on about here $XX rate Is there, forward? about that and one you've that got talked And year-over-year. quick then some some moving a down a you quarter? are And

Julie Albrecht

Yes.

I But wildcard. a end a like of I the that run number events quarter million. But pretty million $XX of income time that $XX lot is when look year we the that's unallocated million unforecastable other visibility a lot reasonable. things material. kind towards that do roughly in we think nonetheless, times, lands more $XX that year, of of full of corporate probably have to to to the in that not think rate mean that time come from we don't in have I

Operator

Our the line of Truist. final question from Hughes comes with Keith

Keith Hughes

You and believe that's number the when correct? I America? I number much is two, cost get do be And guess, that $XX fourth towards, year, year-over-year third is how Europe roughly, one, how had million the in all is called we out North trend and in savings. in much you that think we next $XX will quarter it million as of

Julie Albrecht

Yes.

we $XX things, around the quarter kind First million $XX yes, range it, the QX call we're of savings that of all, kind to cost just that and in of in and delivered, year-to-date million is clarify, all productivity.

into we're 'XX. to Just on all, not 'XX. then the $XXX And we're this And thinking $XX where taken million, about again, clarify carryover with just getting in $XX year. million well, this first obviously is of this year, -- lands actions all delivering million that

XXXX. way split the million that about the of I about -- So right line can bit clarification. we delivery I going around our more it's forward pro do we think color make probably perspective, to and business about a is talk also want a think with as give that right more And and little make think that I the in rata, from of reduction $XXX plans more now, roughly to cost

continues actions allocated. roughly very footprint, in supply split and headcount, review with the generally It's business chain, I'd right? Europe America our to say et North site. is speaking, how high level, They're But across et is footprint are the But cost line cetera, its broad. cetera. that overhead,

Keith Hughes

more see do to it going going year-over-year? to we in you is work? tick Or as it will is million kind of Or the And $XX fourth quarter? that up

Julie Albrecht

have our to, I I $XX million, a $XXX think little be run we rate think And to million. need frankly, to visibility to deliver around quite which bit to QX. we the in specifically, going get is higher

with So we're point. comfortable that at this

run a in over QX. bit increases yes, So the QX rate little

Operator

James turn call I for the like Armstrong to would remarks. over to now closing

James Armstrong

you today. for call our joining Thank

anything a have out, you questions, happy any and I have reach call please can. follow-up answer be to today, great day. and please This If I'll ends our

Operator

presentation, today's This for would you us. may disconnect. thank our call, and now joining concludes I thank all like speakers to you now today's and for

JELD-WEN Holding (JELD) 7 Nov 232023 Q3 Earnings call transcript