At the present time, Jeld-Wen Holding, Inc. continues to operate in many of its global locations. Due to COVID-19 related restrictions, the company temporarily has suspended production at locations that cumulatively represent less than 10% of its 2019 consolidated net revenues.
In many jurisdictions, the company’s products and services fall into categories that have received an ‘essential business’ or ‘life-sustaining’ designation by government agencies. Following guidance from the World Health Organization and the Centers for Disease Control and Prevention, the company implemented policies and procedures to maintain safe working environments, decrease the potential spread of COVID-19 and reduce our associates’ potential exposure to the virus.
Jeld-Wen believes it has a strong balance sheet, ample liquidity and solid financial flexibility with no significant long-term debt maturities until 2024. Out of an abundance of caution, Jeld-Wen recently enhanced its cash position by drawing down $100 million on its existing Asset Based Revolving Credit Facility.
Reflecting this draw down, as of March 27, 2020, the company had total liquidity of approximately $450 million, comprised of unrestricted cash and cash equivalents of approximately $230 million and approximately $220 million of availability under committed credit facilities.
Jeld-Wen’s current level of liquidity reflects the company’s normal seasonal cycle of working capital investments and is sufficient to fund near-term operational needs amidst the uncertain market environment. The company’s financial flexibility is further enabled by the absence of any standing maintenance financial covenants in its primary debt agreements.
Gary S. Michel, president and CEO said: “We are taking significant austerity measures to preserve cash and address near-term market dynamics. The strategic actions we have taken with our footprint rationalization and modernization program along with the Jeld-Wen Excellence Model, our business operating system, strengthen our position in a volatile market environment and prepare us to deliver long-term value creation once the COVID-19 pandemic subsides.”
Jeld-Wen is one of the world’s largest door and window manufacturers, operating manufacturing facilities in 20 countries located primarily in North America, Europe and Australia.
