Jeld-Wen Posts Solid First-Quarter Results

May 11th, 2017 by Editor

Jeld-Wen announced that its revenue for the first quarter of 2017 increased by 6.4 percent.

“Our first-quarter results demonstrated continued improvement in our operational performance, as we delivered another quarter of profitable growth across all three segments,” said Mark Beck, president and chief executive officer. “Based on our strong first quarter performance and favorable outlook for the rest of the year, we are increasing our 2017 estimates for adjusted EBITDA (earnings before interest, taxes, depreciation and amortzation).”

Net revenues increased $51.2 million to $847.8 million, compared to $796.5 million for the same period last year. The increase was driven by core growth of 6 percent, as well as the contribution of recent acquisitions in the Australasia segment. Gross margin increased $27.8 million, or 17.6 percent, to $186 million, compared to $158.1 million for the same period last year. The increase in gross margin was due to profitable core growth, improved cost productivity and the contribution from recent acquisitions. Net income increased $0.4 million to $6.4 million, compared to $6 million in the same quarter last year. Adjusted EBITDA increased $19.8 million, or 32.4 percent, to $81 million, compared to $61.2 million in the same quarter last year.

For full year 2017 compared to full year 2016, the company continues to expect an increase in net revenues of 1.5% to 3.5%. The increase in net revenues is expected to be driven by core growth and a small incremental carryover from 2016 acquisitions, partially offset by unfavorable foreign exchange impact.

The company has raised its expectation for 2017 adjusted EBITDA to a range of $440 million to $460 million, from its prior expectation of $435 million to $455 million, compared to adjusted EBITDA of $394.1 million for 2016. Capital expenditures are still expected to be in the range of $90 million to $100 million.

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