Shares of door and window maker Jeld-Wen Holdings (JELD) dropped in pre-market trading after the company released preliminary third-quarter results that were below Street forecasts and lowered its full-year guidance. The company also announced that Chief Financial Officer Brooks Mallard is leaving on November 8, and will be replaced by Senior Vice President John Linker.
QUARTERLY RESULTS AND GUIDANCE: On Monday after the close, Jeld-Wen said it expects revenue for the third quarter to be $1.13B-$1.14B, below the $1.16B Wall Street analysts were expecting. Preliminary adjusted EBITDA for the quarter is $130M-$130M, which is improved compared to $128.2M in the same period a year ago, but below previous guidance of $143M-$153M. In a statement, Jeld-Wen said its results were negatively impacted by lower than expected revenues and related operational inefficiencies in North America and Europe, as well as from unfavorable channel mix impacting price realization. The company expects its Q3 results will include a charge of $76.5M for a litigation contingency related to a recent court ruling in its ongoing antitrust and trade secrets litigation with Steves & Sons, Inc. Looking to fiscal 2018, Jeld-Wen cut its revenue growth view to 15%-17% from 16%-18%, against analysts’ current estimates of 4.42B. The company also lowered its FY18 adjusted EBITDA view to $455M-$470M from $500M-$520M and the high end of its view for capital expenditures to $100M-$100M from $100M-$120M.
CFO DEPARTURE: Separately, the company announced that its CFO, L. Brooks Mallard, will leave the company to pursue other career interests on November 8. He will be replaced by John Linker, who currently serves as the company’s SVP, corporate development and investor relations. The company noted that Mallard’s departure is not based on any disagreement with the company or based on any accounting or financial reporting matters.
PRICE ACTION: In pre-market trading, Jeld-Wen dropped 13.2%.
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