CHARLOTTE, NC – JELD-WEN (NYSE:JELD) Holding, Inc. (NYSE:JELD), a leading global manufacturer of building products with a market capitalization of $653 million, announced the departure of Kevin Lilly, Executive Vice President of Global Transformation, effective as of Thursday. Lilly's retirement follows a tenure marked by strategic growth initiatives within the company, coming at a time when the stock has declined over 58% in the past year and is trading near its 52-week low of $7.59.
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According to the company's recent SEC filing, Lilly's departure was accompanied by a Separation and Release Agreement that outlines the terms of his retirement benefits. Under the agreement, Lilly will receive separation payments consistent with his employment contract for a qualifying termination. Additionally, he will maintain the rights to continued vesting of restricted stock units, performance share units, and stock options that were granted to him on February 16, 2022, February 14, 2023, and February 6, 2024. These will vest on their respective dates as if Lilly were still employed by JELD-WEN.
Furthermore, Lilly has agreed to adhere to certain restrictive covenants post-employment, which include non-competition and non-solicitation clauses, ensuring the protection of JELD-WEN's business interests following his departure.
JELD-WEN has not yet announced a successor for Lilly's position, nor has it detailed the impact of his departure on the company's ongoing global transformation efforts.
The details of this corporate change are based on the information provided in the company's filing with the Securities and Exchange Commission. JELD-WEN's commitment to transparency in its executive transitions underscores the company's adherence to corporate governance standards and regulatory compliance.
Investors and industry watchers will be observing how JELD-WEN navigates this transition and any potential shifts in the company's strategic direction. Lilly's contributions to the company's growth and transformation will remain part of JELD-WEN's corporate legacy as it moves forward.
In other recent news, JELD-WEN Holding, Inc. has reported significant developments in its operations and financial performance.
The company has sold its Towanda facility to Woodgrain Inc. for approximately $115 million. This sale, a result of a court-ordered divestiture, is expected to reduce JELD-WEN's annual revenue by $150 million to $200 million and EBITDA by $25 million to $50 million in the year following the transaction's completion.
Simultaneously, JELD-WEN has experienced a decline in its third-quarter financial performance, with a 13% year-over-year decrease in revenue, dropping to $935 million. The company's adjusted EBITDA also fell to $82 million. Analysts at Loop Capital and RBC (TSX:RY) Capital have responded to these developments by reducing their price targets for JELD-WEN, with RBC Capital maintaining an Underperform rating and Loop Capital maintaining a Hold rating on the stock.
In addition to the sale of the Towanda facility and financial underperformance, JELD-WEN has also lost a major Midwest retailer's stock business, which is expected to impact annual sales by $75 million to $100 million. Despite these challenges, the company is implementing cost-reduction measures and focusing on operational efficiency to mitigate losses.
JELD-WEN has revised its 2024 revenue guidance downward to between $3.7 billion and $3.75 billion, and anticipates $115 million in cost savings for the fiscal year. The company also expects an additional $100 million growth in EBITDA in 2025 due to transformation efforts. These are the recent developments in JELD-WEN's financial status and strategic direction.
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