| Over a month ago | ||||
As previously reported,… As previously reported, Wolfe Research analyst Truman Patterson initiated coverage of Jeld-Wen with an Outperform rating and $33 price target. His constructive view is based on elevated U.S. new home demand, recently improved industry pricing discipline and the company's ongoing restructuring efforts, Patterson tells investors. | ||||
Wolfe Research analyst… Wolfe Research analyst Truman Patterson initiated coverage of Jeld-Wen with an Outperform rating and $33 price target. | ||||
The deal size was… The deal size was increased to 8M shares from 7M shares. Goldman Sachs acted as sole book running manager for the offering. | ||||
Jeld-Wen announced that… Jeld-Wen announced that Onex Corporation and certain investment funds managed by Onex Partners Manager and its affiliates intend to offer 7M shares of the company's common stock for sale in an underwritten public offering. Subject to the completion of the offering, the company intends to repurchase 800K of the aggregate 7M shares of the company's common stock that are the subject of the offering. The price per share to be paid by the company will equal the price at which the underwriter will purchase the shares from the selling shareholders in the offering. Accordingly, the number of shares of the company's common stock available to the general public will be 6.2M shares. The offering of shares is not conditioned upon the completion of such share repurchase. Goldman Sachs is acting as sole underwriter in the offering. | ||||
Jeld-Wen announced that… Jeld-Wen announced that the U.S: Court Appeals for the Fourth Circuit issued its opinion regarding the company's ongoing litigation with Steves and Sons. The Fourth Circuit's opinion affirms in part and reverses in part the original 2018 ruling of the district court. The Fourth Circuit affirmed the district court's finding of antitrust injury and its decision to order divestiture of Jeld-Wen 's facility in Towanda, Pennsylvania - part of a 2012 acquisition of CraftMaster Manufacturing- but vacated the district court's alternative $139.4M lost-profits award to Steves. The Fourth Circuit agreed with Jeld-Wen 's arguments that the lost-profits award was premature because Steves has not suffered the purported injury on which its claim for future lost profits rests. In addition, the Fourth Circuit's decision will allow Jeld-Wen to continue its claims of trade secret theft in Texas state court against Sam Bell Steves II and Edward G. Steves, the owners of Steves, and John Pierce. The Fourth Circuit decision also clarifies that Jeld-Wen retains the right to challenge the terms of any divestiture, including whether a sale to any particular buyer will serve the public interest, and made clear that the district court may need to revisit its divestiture order if the special master cannot locate a satisfactory buyer. | |
B. Riley Securities… B. Riley Securities analyst Alex Rygiel raised the firm's price target on Jeld-Wen to $31 from $25 and reiterates a Neutral rating on the shares following the company's Q4 results. Jeld-Wen is benefiting from improved demand, recent price increases, cost reduction initiatives, and its JEM business operating system, Rygiel tells investors in a research note. However, given continued COVID-related risks and unknown longer-term demand in Europe and Australasia, the analyst maintains a Neutral rating. | |
Barclays analyst Matthew… Barclays analyst Matthew Bouley lowered the firm's price target on Jeld-Wen to $31 from $32 and keeps an Overweight rating on the shares. The analyst trimmed estimates following the company's Q4 earnings and 2021 guidance. Although Bouley thinks the guidance could prove conservative as strong residential demand drives higher volumes, he says the overall acceleration in earnings appears to be a bit less in fiscal 2021 than previously expected. | |
Sees FY21 adjusted EBITDA… Sees FY21 adjusted EBITDA $480M-$520M. Sees FY21 capital expenditures $135M-$145M. The 2021 outlook assumes revenue growth from the acceleration of housing demand in primary markets, improved product mix, increased pricing, and a small positive impact from foreign exchange. The 2021 outlook also assumes margin expansion from volume, pricing, and productivity, partially offset by higher expenses related to inflation and SG&A. "Despite the effects of the pandemic and other unique headwinds in 2020, we delivered strong financial performance through the disciplined deployment of JEM and strategies to expand our capability to serve customers," said Michel. "The momentum in growth and margin expansion, the strength of our balance sheet, and demand tailwinds from favorable market conditions, position us nicely to deliver further progress in 2021." | |
Reports Q4 revenue… Reports Q4 revenue $1.15B, consensus $1.1B. "In a challenging operating environment, we delivered significant revenue growth and margin expansion," said Gary Michel, president and chief executive officer. "This quarter's results exemplify the progress we've made as a global team to drive improvement in our operations and consistency in our financial results through the disciplined execution of our business operating system, the JELD-WEN Excellence Model or JEM. We achieved a number of key financial milestones in the quarter as well, delivering the highest rate of core revenue and adjusted EBITDA growth since 2017, generating record full year free cash flow, and significantly reducing net debt leverage. I am proud of our associates around the world who took deliberate action to deliver for our customers, shareholders, and the communities where we live and work, in a safe and productive way." |