JELD-WEN Holding, Inc.

2024 earnings release last night and posted a slide presentation to the investor relations portion of our website, which can be found at investors.jeldwin.com. We will be referencing this presentation during our call. Today, I am joined by Bill Christensen, Chief Executive Officer, and Samantha Stoddard, Chief Financial Officer. Before I turn it over to Bill, I would like to remind everyone that during this call, we will be making certain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to a variety of risks and uncertainties, including those set forth in our earnings release and provided in our forms 10-K and 10-Q filed with the SEC. GELDWIN does not undertake any duty to update forward-looking statements, including the guidance we are providing with respect to certain expectations for future results. Additionally, during today's call, we will discuss non-GAAP measures which we believe can be useful in evaluating our performance. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of these non-GAAP measures to their most directly comparable financial measures calculated under GAAP can be found in our earnings release and in the appendix of our earnings presentation. With that, I would like to now hand the call over to Bill.

Thank you, James, and thank you, everyone, for joining our call today. I'm pleased with our progress on the transformation journey and remain committed to strengthening Gels Wins Foundation. While facing various near-term market challenges, we are confident in our ability to achieve enhanced performance going forward. Firstly, I'd like to express my gratitude to our associates for their ongoing dedication in quite a dynamic macroeconomic environment. As we strive to meet our customers' expectations, we're also taking important steps to improve our financial performance. Today, I'll initially share a brief overview of second quarter results and discuss some of the actions we've completed. I'll then hand it over to Samantha to discuss our financial results in more detail before returning to discuss future actions in our transformation journey, talk about our 2024 financial guidance, and take your questions. I'll begin with our second quarter highlights on slide four. Second quarter sales and EBITDA were in line with our expectations as a positive impact from our ongoing productivity actions helped mitigate the anticipated headwinds from softer demand in both North America and Europe. In the quarter, we also announced that Samantha Stoddard was promoted to CFO as Julie pursues other opportunities. We're thrilled to welcome Samantha to the call in her new and expanded role and look forward to you getting to know her in the months and years to come. I want to wish Julie all the best in her future endeavors and thank her for her contributions to Gelduan during a pivotal time for the company. Finally, we repurchased approximately 1.6 million shares at an average price of $15.18 per share. This move allowed us to offset dilution from the past 18 months at an attractive price, utilizing existing authorization to execute the buyback quickly. Although we do not currently plan to repurchase more shares, we will remain opportunistic with available cash to maximize shareholder value. Turning to slide five, we continue to make progress with our transformational journey and our focus on people and performance remains the same. In the second quarter, we further advanced our culture transformation. Since launching, approximately 1,400 of our leaders including both Samantha and myself, each spent four hours on leadership alignment training. This training sets the groundwork for desired communication and behavior expectations for our leaders, creating a uniform language that is applicable across the company. Additionally, our network of approximately 250 change agents continues to make culture-improving strides. We recently completed two project sprints that aim to drive both transparency and accountability across the organization. I also personally met with these change agents, allowing some of our most influential team members to provide direct feedback. Moving on to performance, during the second quarter, we remained focused on delivering cost savings. As I mentioned on our last earnings call, we decided to close two facilities. the Vista California Composite Windows Facility, and the Hopkins Wisconsin Wood Windows Facility. These closures are part of our strategy to simplify and streamline the business, concentrating on sales quality and asset utilization. Collectively, these facility closures are expected to generate at least $11 million in annual EBITDA savings. We are on track with both projects to deliver results as per our internal business plans. Additionally, and as announced, we are increasing our CapEx spending to support operational improvements. In the second quarter, our CapEx rose by about $16 million year over year, mainly funding projects linked to our transformation journey. These include efforts to use materials more efficiently and increase automation which will reduce costs and improve quality. Although we are still in the early phases of our transformational journey, we are encouraged by the progress today. I'm proud of our team's continued hard work and dedication in making GELDWIN a stronger and more profitable company. I'll now turn it over to Samantha to discuss the financial results.

Thanks, Bill. It's an honor to be on my first earnings call as CFO. While I am new to the CFO role, my tenure with Jeldwin spans four years, during which I have held various key positions. Most recently, I led the North American Finance Organization and oversaw corporate financial planning and analysis. During my time in North America, I met with large customers to understand their needs and sat with critical suppliers to gain insights into our supply chain. In addition, I have spent time in our business to learn how our operations work, and understand the areas of opportunity. These experiences have provided me with a comprehensive understanding of GELDWIN and I am confident that this background equips me with a great foundation, allowing me to effectively contribute from the onset. As I reflect on my priorities in this new role, I see opportunities to enhance our financial performance and position our company as the global leader it has the potential to be. My immediate focus areas will be leading the organization to adapt to market challenges, managing controllable factors, and driving accountability. I am confident in our team's capability, and they are already making notable progress in strengthening our foundation despite market challenges. Now, turning to the financials and looking at slide seven, our second quarter revenues were $986 million, down 12% from the prior year. This decreased was driven by a reduction in our core revenues due mostly to the expected market-driven volume declines in both North America and Europe, combined with a mixed shift from higher-priced to lower-priced products as customers focus on affordability. Our adjusted EBITDA was $85 million in the second quarter, down $24 million year-over-year, leading to an adjusted EBITDA margin of 8.6%. As you see on slide 8, Our second quarter revenue decline was driven by lower volume mix of 12%, with about 60% of the decline due to the mix shift from higher average selling price products, such as wood windows and exterior doors, into lower price products. I'll provide additional comments about our North America and Europe market trends shortly. On slide nine, you see that our second quarter adjusted EBITDA decreased by $24 million year over year. Despite significant volume mix and slight price-cost headwinds, we generated solid profit contributions from improved productivity and significantly lower SG&A costs. We are on track to achieve our targeted cost savings of approximately $100 million this year. Additionally, due to timing, a small portion of the $10 million one-time costs associated with the previously announced plant closures are being incurred in the third quarter versus the second quarter. As a reminder, these $10 million of closure costs are not being added back to adjusted earnings. Moving to our segment results on slide 10. In the second quarter, our North America segment generated $711 million in sales, which was a decline of 13% from prior year. This was driven by a reduction in core revenues of 13% due to lower volume mix. North America's adjusted EBITDA decreased to $76 million from $109 million year over year. This decline was due to the lower volume mix I just referenced, as well as slightly negative price cost in the quarter. In Europe, we generated $275 million in revenue and $20 million in adjusted EBITDA in Q2. Core revenues decreased by 10% year over year, driven by lower volume mix of 12%. Adjusted EBITDA declined $4 million, leading to margins of 7.4%. The decremental impact from lower volume was mitigated by solid productivity improvements and slightly better price cost. Now, turning to the market outlook on slide 11, I'll provide some high-level comments. Starting with North America, as interest rates remain elevated and consumer confidence weakens, we now expect North America volumes to be down by low double digits in 2024. The market is trending moderately worse than our previous guidance. We still anticipate that new single-family home construction will be higher by low single digits. However, the outlook for repair and remodel activity remains challenging, and we expect R&R activity to be down by mid to high single digits, which is trending slightly worse than we previously disclosed. Furthermore, though our multifamily exposure is relatively small, the pace of market declines has accelerated. We now expect the combined multifamily and Canadian market to be down more than 25% year over year. The European market remains under pressure and is also trending towards the weaker end of our previous guidance due to the ongoing macroeconomic and geopolitical challenges. However, over the last quarter, the rate of decline has slowed. Overall, we continue to anticipate volumes in the region to be down by low double digits. I'll now turn it back to Bill to talk about our transformational journey.