JELD-WEN(JELD)2025-05-05 20:35Financial Performance - Net revenues for Q1 2025 were $776.0 million, a decrease of $183.1 million, or 19.1%, compared to $959.1 million in Q1 2024, primarily due to the divestiture of the Towanda facility and a 15% decline in Core Revenue[5][10] - The net loss for Q1 2025 was $179.8 million, compared to a net loss of $27.7 million in the same period last year, an increase of $152.1 million, largely due to a $125 million non-cash goodwill impairment charge[6][10] - Adjusted EBITDA for Q1 2025 was $21.9 million, a decline of $46.8 million from $68.7 million in Q1 2024, with an Adjusted EBITDA Margin of 2.8%, down 440 basis points year-over-year[8][10] - Adjusted EPS for Q1 2025 was ($0.17), compared to $0.21 in Q1 2024, reflecting the impact of the non-cash goodwill impairment charge[7][10] - The operating loss margin for Q1 2025 was (22.1%), compared to (2.9%) for the same quarter last year[10] - Gross margin declined by 35.1% to $112.1 million, down from $172.6 million year-over-year[31] - Operating loss increased significantly to $171.8 million, compared to a loss of $28.3 million in the prior year, representing a 507.5% increase[31] - Net loss for the quarter was $179.8 million, a 548.4% increase from a loss of $27.7 million in the same quarter last year[31] - Adjusted net loss income was $(14.2) million for Q1 2025, a significant decline from adjusted net income of $18.4 million in Q1 2024[39] - The company reported a diluted net loss per share of $2.12, compared to $0.32 in the same quarter last year[31] Cash Flow and Working Capital - Net cash used in operating activities increased to $83.5 million in Q1 2025, up from $11.0 million in Q1 2024, primarily due to unfavorable earnings changes and a decrease in working capital[11] - Free cash flow for Q1 2025 was $(125.4) million, compared to $(45.7) million in Q1 2024[44] - Accounts receivable increased to $453.6 million from $388.4 million, indicating a rise in outstanding customer payments[33] Segment Performance - North America segment net revenue was $530.6 million, a decline of $149.4 million, or 22.0%, driven by a 17% decrease in Core Revenue due to weaker market demand[17] - Europe segment net revenue was $245.4 million, a decline of $33.7 million, or 12.1%, primarily due to a 9% decrease in Core Revenue from market softness[17] - North America revenues fell by 22.0% to $530.6 million, while Europe revenues decreased by 12.1% to $245.4 million[46] Asset and Liability Changes - Total assets decreased to $2,429.3 million from $2,620.2 million at the end of the previous year[33] - Cash and cash equivalents decreased to $132.5 million from $150.3 million at the end of the previous year[33] - Net debt increased to $1,049.7 million as of March 29, 2025, compared to $1,033.1 million at the end of 2024[44] - The net debt leverage ratio rose to 4.6x, up from 3.8x in the previous quarter[44] Impairment and Charges - Goodwill impairment charge of $124.6 million was recorded, reflecting significant asset valuation adjustments[31] - The company incurred a goodwill impairment of $124.6 million in Q1 2025, which was not present in Q1 2024[39] - The company recorded $11.9 million in net legal and professional expenses and settlements during Q1 2025[41] Strategic Focus - The company remains committed to its transformation strategy, focusing on cost reduction and improving quality and service levels despite challenging market conditions[4]