JELD-WEN(US:JELD)2022-02-22 19:20Financial Data and Key Metrics Changes - In Q4 2021, net revenue increased by 11.8% to $1.3 billion, driven by improvements in pricing and volume mix [23] - Full-year net revenue reached $4.8 billion, marking a 12.7% increase overall and a 10% increase on a core basis, excluding foreign exchange impacts [24] - Adjusted EBITDA for Q4 improved by 4.0% to $120.1 million, while adjusted EBITDA margin compressed due to inflation [23][24] - EPS and adjusted EPS increased by 7% to $0.45 and $0.48 respectively [23] Business Line Data and Key Metrics Changes - North America core revenue grew by 15% in Q4, driven by improved volume throughput and pricing actions [11] - Europe saw a core revenue increase of 10%, significantly driven by sequential improvements in price realization [13] - Australasia's core revenue grew by 6%, with the highest adjusted EBITDA margin at 14.7%, improving by 100 basis points [13] Market Data and Key Metrics Changes - Demand remained strong across all end markets, particularly in new housing starts and the R&R markets [10] - North America exited December with revenue growth above 20% and a book-to-bill ratio of approximately 1.07 [29] - In Europe, revenue increased by 7.7% overall, with labor availability impacting volume throughput due to COVID-19 [30] Company Strategy and Development Direction - The company is focused on operational and commercial excellence initiatives to drive long-term growth, leveraging a premier performance culture [6] - Plans for 2022 include new customer-centric innovation launches, capacity expansion, and channel initiatives to accelerate top-line growth [14] - The company aims to enhance market penetration in Europe and introduce new products, such as technical doors in the UK and ENERGY STAR-rated products in Australia [16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in favorable housing fundamentals across all regions, expecting continued strong demand for products in 2022 [36] - The company anticipates total consolidated revenue growth between 7% and 10% for 2022, supported by core growth from all segments [39] - Management acknowledged challenges from inflation but emphasized the ability to offset these through pricing actions and operational efficiencies [28][39] Other Important Information - The company repurchased $45.7 million of its stock in Q4, totaling nearly $325 million for the year, representing approximately 11.5% of shares outstanding [11] - Adjusted operating cash flow totaled $288.4 million for 2021, a decrease primarily due to higher cash usage for working capital [33] - The balance sheet remains strong, with a cash balance of $395.6 million and liquidity of $837.8 million at the end of Q4 [34] Q&A Session Summary Question: Can you discuss specific levers to hit 2022 margin targets? - Management highlighted strong markets, pricing to offset inflation, and investments in growth initiatives as key drivers for margin improvement [44][46] Question: What is the magnitude of new price increases in 2022? - Management confirmed that carryover from 2021 price increases is included in the outlook, with no notable shift towards lower-priced products observed [47][48] Question: Are you factoring in any slowdown in the North American segment due to interest rates? - Management noted a strong demand backdrop in North America, with no current signs of slowdown from interest rate movements [51][52] Question: Can you elaborate on site transformation efforts? - Management plans to deploy three times the number of rapid improvement events across operations, focusing on enhancing capacity and productivity [62][66] Question: What are the expectations for cost inflation this year? - Management expects year-over-year inflation throughout 2022 but does not anticipate worsening inflation from current levels [111]