For the quarter ended December 2023, The AZEK Company (AZEK) reported revenue of $240.44 million, up 11.2% over the same period last year. EPS came in at $0.10, compared to -$0.09 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $234.12 million, representing a surprise of +2.70%. The company delivered an EPS surprise of +100.00%, with the consensus EPS estimate being $0.05.While investors scrutinize revenue and earnings changes year-over-year and how they compare with ...

The AZEK Company (AZEK) came out with quarterly earnings of $0.10 per share, beating the Zacks Consensus Estimate of $0.05 per share. This compares to loss of $0.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 100%. A quarter ago, it was expected that this company would post earnings of $0.30 per share when it actually produced earnings of $0.36, delivering a surprise of 20%.Over the last four quarters, the company has surp ...

CHICAGO--(BUSINESS WIRE)--The AZEK Company Inc. (NYSE: AZEK) (“AZEK” or the “Company”), the industry-leading manufacturer of beautiful, low-maintenance and environmentally sustainable outdoor living products, including TimberTech® decking and railing, Versatex® and AZEK® Trim and StruXure® pergolas, today announced financial results for its fiscal first quarter ended December 31, 2023. CEO COMMENTS “The AZEK team delivered strong results ahead of plan this quarter, including 11% net sales growth year-ov ...

```markdown PART I. Financial Information This section presents unaudited financial statements and management's discussion and analysis of financial condition and results of operations [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) This section presents unaudited consolidated financial statements, including balance sheets, income, equity, cash flows, and related notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's assets, liabilities, and stockholders' equity at specific dates Condensed Consolidated Balance Sheets (in thousands) | in thousands ASSETS: | December 31, 2023 | September 30, 2023 | |:----------------------------------------|:------------------|:-------------------| | Cash and cash equivalents | $ 274,759 | $ 278,314 | | Trade receivables, net of allowances | 32,398 | 57,660 | | Inventories | 261,562 | 221,101 | | Prepaid expenses | 16,528 | 13,595 | | Other current assets | 8,131 | 12,300 | | **Total current assets** | **593,378** | **582,970** | | Property, plant and equipment - net | 456,504 | 501,023 | | Goodwill | 967,816 | 994,271 | | Intangible assets - net | 183,604 | 199,497 | | Other assets | 87,426 | 87,793 | | **Total assets** | **$ 2,288,728** | **$ 2,365,554** | | LIABILITIES AND STOCKHOLDERS' EQUITY: | | | | Current liabilities: | | | | Accounts payable | $ 43,119 | $ 56,015 | | Accrued rebates | 67,925 | 60,974 | | Accrued interest | 368 | 260 | | Current portion of long-term debt | 6,000 | 6,000 | | Accrued expenses and other liabilities | 80,999 | 71,994 | | **Total current liabilities** | **198,411** | **195,243** | | Deferred income taxes | 47,117 | 56,330 | | Long-term debt—less current portion | 579,111 | 580,265 | | Other non-current liabilities | 104,784 | 104,073 | | **Total liabilities** | **929,423** | **935,911** | | Total stockholders' equity | 1,359,305 | 1,429,643 | | **Total liabilities and stockholders' equity** | **$ 2,288,728** | **$ 2,365,554** | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) This section details the company's net sales, expenses, and resulting income or loss over a period Condensed Consolidated Statements of Comprehensive Income (Loss) (in thousands) | in thousands | Three Months Ended December 31, 2023 | Three Months Ended December 31, 2022 | |:-------------|:-------------------------------------|:-------------------------------------| | Net sales | $ 240,444 | $ 216,259 | | Cost of sales| 149,011 | 168,680 | | Gross profit | 91,433 | 47,579 | | Selling, general and administrative expenses | 77,246 | 73,444 | | Loss on disposal of property, plant and equipment | 2,185 | — | | Operating income (loss) | 12,002 | (25,865) | | Interest expense, net | 7,910 | 9,299 |\n| Gain on sale of business | (38,515) | — | | Total other income and expenses | (30,605) | 9,299 | | Income (loss) before income taxes | 42,607 | (35,164) | | Income tax expense (benefit) | 16,888 | (9,328) | | Net income (loss) | $ 25,719 | $ (25,836) | | Comprehensive income (loss) | $ 22,624 | $ (27,632) | | Net income (loss) per common share: Basic | $ 0.17 | $ (0.17) | | Net income (loss) per common share: Diluted | $ 0.17 | $ (0.17) | | Weighted-average common shares outstanding: Basic | 147,297,662 | 150,877,635 | | Weighted-average common shares outstanding: Diluted | 148,876,282 | 150,877,635 | [Condensed Consolidated Statements of Stockholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) This section outlines changes in the company's equity, including net income, share repurchases, and comprehensive loss - **Total stockholders' equity decreased** from **$1.43 billion** at September 30, 2023, to **$1.36 billion** at December 31, 2023. This change was primarily influenced by **net income of $25.7 million**, partially offset by **treasury stock purchases of $100.8 million** and an **accumulated other comprehensive loss of $3.1 million**[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section reports cash inflows and outflows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (in thousands) | in thousands | Three Months Ended December 31, 2023 | Three Months Ended December 31, 2022 | |:-------------|:-------------------------------------|:-------------------------------------|\n| Operating activities: Net cash provided by (used in) operating activities | $ (16,288) | $ 6,409 | | Investing activities: Net cash provided by (used in) investing activities | $ 115,530 | $ (30,263) | | Financing activities: Net cash used in financing activities | $ (102,797) | $ (10,098) | | Net decrease in cash and cash equivalents | $ (3,555) | $ (33,952) | | Cash and cash equivalents – Beginning of period | $ 278,314 | $ 120,817 | | Cash and cash equivalents – End of period | $ 274,759 | $ 86,865 | - **Net cash used in operating activities** was **$(16.3) million** for the three months ended December 31, 2023, a decrease from **$6.4 million provided** in the prior year, primarily due to **increased inventory**[16](index=16&type=chunk)[143](index=143&type=chunk)[144](index=144&type=chunk) - **Net cash provided by investing activities** significantly **increased to $115.5 million**, driven by **$133.1 million** in **net proceeds from the Vycom business divestiture**, offsetting capital expenditures[16](index=16&type=chunk)[143](index=143&type=chunk) - **Net cash used in financing activities** **rose to $102.8 million**, mainly due to **$100.0 million** in **treasury stock repurchases**[16](index=16&type=chunk)[146](index=146&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures for the financial statement line items and accounting policies [1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=9&type=section&id=1.%20ORGANIZATION%20AND%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This section describes the company's business, fiscal year, accounting principles, and significant accounting policies - The AZEK Company Inc. is a Delaware corporation specializing in environmentally sustainable building products for residential, commercial, and industrial markets, operating under brands like AZEK®, TimberTech®, and Scranton Products®. The company's fiscal year ends September 30, and its financial statements are prepared in accordance with U.S. GAAP, relying on management estimates for various accounts. **Research and development costs**, primarily for new product development and manufacturing process improvements, were **$3.1 million** for the three months ended December 31, 2023, an increase from **$2.1 million** in the prior year[18](index=18&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk)[22](index=22&type=chunk) - The company is evaluating the impact of recently issued accounting pronouncements, ASU 2023-07 (Segment Reporting) and ASU 2023-09 (Income Taxes), which will be adopted in fiscal years beginning October 1, 2024, and October 1, 2025, respectively[23](index=23&type=chunk) [2. REVENUE](index=10&type=section&id=2.%20REVENUE) This section details the company's revenue recognition policies and customer rebate activities - Revenue is recognized when control of promised goods is transferred to customers upon shipping. Customer rebates are recorded in 'Net sales' and 'Accrued rebates' or 'Trade receivables'. **Accrued rebates increased** to **$67.9 million** as of December 31, 2023, from **$54.6 million** as of December 31, 2022[24](index=24&type=chunk) Rebate Activity (in thousands) | | Three Months Ended December 31, 2023 | Three Months Ended December 31, 2022 | |:----------------|:-------------------------------------|:-------------------------------------|\n| Beginning balance | $ 66,958 | $ 56,542 | | Rebate expense | 22,239 | 15,716 | | Rebate payments | (16,804) | (11,192) | | Ending balance | $ 72,393 | $ 61,066 | [3. DIVESTITURE](index=10&type=section&id=3.%20DIVESTITURE) This section outlines the sale of the Vycom business, including net proceeds and recognized gain - On November 1, 2023, the Company completed the **sale of its Vycom business** within the Commercial segment for net proceeds of approximately **$133.1 million**. This divestiture generated a **pre-tax gain on sale of $38.5 million**, recognized in the Condensed Consolidated Statements of Comprehensive Income (Loss). The sale was not reported as discontinued operations as it was not considered a major strategic shift[26](index=26&type=chunk) [4. INVENTORIES](index=11&type=section&id=4.%20INVENTORIES) This section describes inventory valuation methods and changes in inventory balances - Inventories are valued at the lower of cost or net realizable value, using the FIFO method, and are reduced for slow-moving and obsolete items. **Total inventories increased** to **$261.6 million** at December 31, 2023, from **$221.1 million** at September 30, 2023, primarily due to an **increase in finished goods**[27](index=27&type=chunk)[28](index=28&type=chunk) Inventories (in thousands) | in thousands | December 31, 2023 | September 30, 2023 | |:-------------|:------------------|:-------------------|\n| Raw materials| $ 60,918 | $ 67,330 | | Work in process | 31,742 | 37,038 | | Finished goods | 168,902 | 116,733 | | **Total inventories** | **$ 261,562** | **$ 221,101** | [5. PROPERTY, PLANT AND EQUIPMENT—NET](index=11&type=section&id=5.%20PROPERTY%2C%20PLANT%20AND%20EQUIPMENT%E2%80%94NET) This section details the composition and changes in property, plant, and equipment, including depreciation - **Total property, plant and equipment – net decreased** to **$456.5 million** at December 31, 2023, from **$501.0 million** at September 30, 2023. **Depreciation expense** was approximately **$20.5 million** for the three months ended December 31, 2023[29](index=29&type=chunk)[30](index=30&type=chunk) Property, Plant and Equipment – Net (in thousands) | | December 31, 2023 | September 30, 2023 | |:-----------------------------|:------------------|:-------------------|\n| Land | $ 3,209 | $ 4,829 | | Buildings and improvements | 103,824 | 129,031 | | Manufacturing equipment | 595,551 | 624,754 | | Computer equipment | 32,561 | 32,300 | | Furniture and fixtures | 6,614 | 7,290 | | Vehicles | 1,163 | 1,105 | | Total property and equipment | 742,922 | 799,309 | | Construction in progress | 79,314 | 94,422 | | Accumulated depreciation | (365,732) | (392,708) | | **Total property and equipment – net** | **$ 456,504** | **$ 501,023** | [6. GOODWILL AND INTANGIBLE ASSETS—NET](index=11&type=section&id=6.%20GOODWILL%20AND%20INTANGIBLE%20ASSETS%E2%80%94NET) This section reports changes in goodwill and intangible assets, including impacts from divestitures and amortization - **Goodwill, net, decreased** to **$967.8 million** at December 31, 2023, from **$994.3 million** at September 30, 2023, primarily due to a **$26.5 million disposal related to the Vycom divestiture** within the Commercial segment. **Intangible assets, net, decreased** to **$183.6 million** at December 31, 2023, from **$199.5 million** at September 30, 2023, with a **weighted-average remaining amortization period of 11.1 years**[32](index=32&type=chunk)[34](index=34&type=chunk) Goodwill (in thousands) | | Residential | Commercial | Total | |:------------------------------------------|:------------|:-----------|:----------|\n| Goodwill, net as of September 30, 2023 | $ 953,882 | $ 40,389 | $ 994,271 | | Divestiture (net disposal) | — | (26,455) | (26,455) | | **Goodwill, net as of December 31, 2023** | **$ 953,882** | **$ 13,934** | **$ 967,816** | Finite-Lived Intangible Assets (in thousands) | | December 31, 2023 Net Carrying Value | September 30, 2023 Net Carrying Value | |:--------------------|:-------------------------------------|:--------------------------------------|\n| Proprietary knowledge | $ 43,042 | $ 46,792 | | Trademarks | 59,258 | 65,481 | | Customer relationships | 78,894 | 84,584 | | Patents | 2,362 | 2,587 | | Other intangibles | 48 | 53 | | **Total intangible assets** | **$ 183,604** | **$ 199,497** | [7. COMPOSITION OF CERTAIN BALANCE SHEET ACCOUNTS](index=12&type=section&id=7.%20COMPOSITION%20OF%20CERTAIN%20BALANCE%20SHEET%20ACCOUNTS) This section provides a breakdown of specific balance sheet accounts, such as allowances and accrued liabilities - The **allowance for doubtful accounts decreased** to **$1.3 million** at December 31, 2023, from **$1.77 million** at October 1, 2023, partly due to a **$32 thousand reduction from divestiture**. **Accrued expenses and other current liabilities increased** to **$81.0 million** at December 31, 2023, from **$72.0 million** at September 30, 2023, primarily driven by an **increase in taxes and employee-related liabilities**[36](index=36&type=chunk)[39](index=39&type=chunk) Allowance for Doubtful Accounts (in thousands) | | Three Months Ended December 31, 2023 | Three Months Ended December 31, 2022 | |:----------------|:-------------------------------------|:-------------------------------------|\n| Beginning balance | $ 1,773 | $ 1,397 | | Provision | (433) | 277 | | Divestiture | (32) | — | | **Ending balance** | **$ 1,308** | **$ 1,674** | Accrued Expenses and Other Liabilities (in thousands) | | December 31, 2023 | September 30, 2023 | |:-----------------------------------|:------------------|:-------------------|\n| Taxes | $ 28,168 | $ 6,959 | | Employee related liabilities | 20,673 | 34,313 | | Marketing | 4,799 | 3,868 | | Lease liability - operating | 4,559 | 4,180 | | Customer deposits | 3,771 | 4,152 | | Warranty | 2,927 | 2,739 | | Lease liability - finance | 2,829 | 2,777 | | Freight | 1,833 | 1,242 | | Utilities | 1,802 | 2,141 | | Professional fees | 1,706 | 2,073 | | Construction in progress | 1,530 | 2,863 | | Commissions | 873 | 991 | | Other | 5,529 | 3,696 | | **Total accrued expenses and other current liabilities** | **$ 80,999** | **$ 71,994** | [8. DEBT](index=13&type=section&id=8.%20DEBT) This section details the company's debt structure, interest rates, and related interest expenses - **Total debt**, net of unamortized deferred financing costs and original issue discount, was **$579.1 million** at December 31, 2023, down from **$580.3 million** at September 30, 2023. The **Term Loan Agreement**, maturing April 28, 2029, had **$592.5 million** outstanding at December 31, 2023, bearing interest at SOFR + **2.50%** (**7.96%** at December 31, 2023). The **Revolving Credit Facility** provides up to **$150.0 million** in borrowings, with **$147.8 million** available as of December 31, 2023, and no outstanding borrowings[40](index=40&type=chunk)[41](index=41&type=chunk)[43](index=43&type=chunk) Debt (in thousands) | | December 31, 2023 | September 30, 2023 | |:----------------------------------------------------------------------------------------------------------------------------------------|:------------------|:-------------------|\n| Term Loan due April 28, 2029 — SOFR + 2.50% + 0.1% (7.96% at December 31, 2023 and 7.92% at September 30, 2023) | $ 592,500 | $ 594,000 | | Revolving Credit Facility through March 31, 2026 - SOFR + 0.1% | — | — | | Total | 592,500 | 594,000 | | Less unamortized deferred financing costs | (3,818) | (3,996) | | Less unamortized original issue discount | (3,571) | (3,739) | | Less current portion | (6,000) | (6,000) | | **Long-term debt—less current portion and unamortized deferred financing costs** | **$ 579,111** | **$ 580,265** | Interest Expense (in thousands) | | Three Months Ended December 31, 2023 | Three Months Ended December 31, 2022 | |:--------------------------------|:-------------------------------------|:-------------------------------------|\n| Term Loan Agreement | $ 11,358 | $ 8,916 | | Revolving Credit Facility | 150 | 151 | | Other | 1,123 | 1,109 | | Amortization - Deferred financing costs (Term Loan Agreement) | 179 | 179 | | Amortization - Deferred financing costs (Revolving Credit Facility) | 66 | 66 | | Amortization - Original issue discount (Term Loan Agreement) | 167 | 167 | | Capitalized interest | (1,079) | (1,289) | | Interest expense | 11,964 | 9,299 | | Interest income | (4,054) | — | | **Interest expense, net** | **$ 7,910** | **$ 9,299** | [9. PRODUCT WARRANTIES](index=15&type=section&id=9.%20PRODUCT%20WARRANTIES) This section outlines the company's product warranty policies and changes in the warranty reserve - The Company provides product warranties ranging from 5 years to lifetime coverage. The **warranty reserve decreased** to **$15.0 million** at December 31, 2023, from **$16.2 million** at October 1, 2023, due to **adjustments and claims payments**[46](index=46&type=chunk)[47](index=47&type=chunk) Warranty Reserve Activity (in thousands) | | Three Months Ended December 31, 2023 | Three Months Ended December 31, 2022 | |:----------------------------------|:-------------------------------------|:-------------------------------------|\n| Beginning balance | $ 16,195 | $ 15,023 | | Adjustments to reserve | (542) | (172) | | Warranty claims payment | (624) | (313) | | **Ending balance** | **$ 15,029** | **$ 14,538** | | Current portion of accrued warranty | (2,927) | (2,492) | | Accrued warranty – less current portion | $ 12,102 | $ 12,046 | [10. LEASES](index=15&type=section&id=10.%20LEASES) This section describes the company's lease arrangements, including lease assets, liabilities, and expenses - The Company leases various assets under operating and finance leases. **Total lease assets** were **$86.6 million** and **total lease liabilities** were **$96.6 million** as of December 31, 2023. **Total lease expense** for the three months ended December 31, 2023, was **$3.9 million**[48](index=48&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk) Lease Assets and Liabilities (in thousands) | | December 31, 2023 | September 30, 2023 | |:-------------------------|:------------------|:-------------------|\n| ROU operating lease assets | $ 16,068 | $ 15,423 | | ROU finance lease assets | 70,554 | 71,529 | | **Total lease assets** | **$ 86,622** | **$ 86,952** | | Current Operating | $ 4,559 | $ 4,180 | | Current Finance | 2,829 | 2,777 | | Non-Current Operating | 13,916 | 13,699 | | Non-Current Finance | 75,276 | 75,718 | | **Total lease liabilities**| **$ 96,580** | **$ 96,374** | Maturities of Lease Liabilities at December 31, 2023 (in thousands) | (in thousands) | Operating Leases | Finance Leases | Total | |:---------------|:-----------------|:---------------|:------|\n| 2024 | $ 4,045 | $ 5,358 | $ 9,403 | | 2025 | 4,719 | 7,105 | 11,824 | | 2026 | 2,844 | 6,942 | 9,786 | | 2027 | 2,105 | 6,480 | 8,585 | | 2028 | 1,841 | 5,278 | 7,119 | | Thereafter | 6,071 | 117,012 | 123,083 | | Total lease payments | 21,

CHICAGO--(BUSINESS WIRE)--The AZEK Company Inc. (NYSE: AZEK) ("AZEK" or the “Company”), the industry-leading manufacturer of beautiful, low-maintenance and environmentally sustainable outdoor living products, including TimberTech® decking and railing, Versatex® and AZEK® Trim, and StruXure™ pergolas, today announced that it will release its fiscal first quarter 2024 results after the market closes on Tuesday, February 6, 2024. That same day, the Company will hold a conference call to discuss the results at ...

Financial Highlights - The company's Q4 2023 net sales increased to $388.8 million, compared to $304.6 million in Q4 2022[13] - Adjusted EBITDA for Q4 2023 was $106.4 million, a 63.4% increase year-over-year from $65.1 million in Q4 2022[13] - Adjusted diluted EPS for Q4 2023 was $0.36, a 118.7% increase year-over-year from $0.16 in Q4 2022[15] - The company generated $92 million in free cash flow in Q4 2023, an $83 million increase year-over-year[11] - For fiscal year 2023, the company generated $274 million of free cash flow, increasing $339 million year-over-year[9] Segment Performance - Residential segment net sales for Q4 2023 were $349.6 million, a 37.6% increase compared to $254.2 million in Q4 2022[16] - Residential segment adjusted EBITDA for Q4 2023 was $118.0 million, an 82.9% increase compared to $64.5 million in Q4 2022[16] - Commercial segment net sales for Q4 2023 were $39.2 million, a 22.4% decrease compared to $50.4 million in Q4 2022[18] - Commercial segment adjusted EBITDA for Q4 2023 was $9.2 million, a 36.5% decrease compared to $14.6 million in Q4 2022[18] Fiscal Year 2024 Outlook - The company expects net sales to be in the range of $1.335 billion to $1.395 billion for fiscal year 2024[22] - The company expects adjusted EBITDA to be in the range of $320 million to $335 million for fiscal year 2024[22]

The AZEK Company Inc. (NYSE:AZEK) Q4 2023 Earnings Conference Call November 28, 2023 5:00 PM ET Company Participants Eric Robinson - IR Jesse Singh - CEO Peter Clifford - CFO Conference Call Participants Tim Wojs - Baird Keith Hughes - Truist Matthew Bouley - Barclays Phil Ng - Jefferies Michael Rehaut - JPMorgan John Lovallo - UBS Susan Maklari - Goldman Sachs Mike Dahl - RBC Capital Markets Rafe Jadrosich - Bank of America Noah Merkousko - Stephens Operator Welcome to The AZEK Company's Fourth Quarter Fis ...

Credit Facilities and Debt Management - The company has $150.0 million available under the Revolving Credit Facility as of September 30, 2023, with an option to increase commitments by up to $100.0 million[172] - A 100 basis point change in interest rates would result in a $2.9 million change in annual interest expense on the Senior Secured Credit Facilities as of September 30, 2023[174] - The company has entered into $300 million of interest rate swaps to hedge against interest rate volatility associated with the 2022 Term Loan Agreement[174] - The company had $594.0 million outstanding under the 2022 Term Loan Agreement as of September 30, 2023[310] - The company's variable rate indebtedness exposes it to interest rate risk, with potential increases in debt service obligations if interest rates rise[173] - The company's ability to grow and compete effectively may be limited due to restrictive covenants under the Senior Secured Credit Facilities[169] Share Repurchase Program - The company's share repurchase program authorizes the repurchase of up to $400 million of Class A common stock[182] Accounts Receivable and Cash Management - As of September 30, 2023, receivables from one customer represented 17.2% of gross trade receivables[313] - The company's cash and cash equivalents are maintained at major financial institutions in the United States, with deposits likely exceeding insured limits[313] Raw Material Costs and Supply Chain Management - The company's cost of sales is subject to inflationary pressures, including raw material prices, freight, and labor costs[315] - The company relies on various raw materials including petrochemical resins, reclaimed polyethylene, PVC material, waste wood fiber, and aluminum for production[316] - The company does not typically enter into fixed-price contracts with suppliers and currently has no fixed-price contracts with major vendors[316] - Raw material costs are managed through sales terms and maintaining relationships with multiple vendors, with spot market prices negotiated continuously[316] - Petrochemical resin costs are subject to significant price volatility, historically affected by supply-demand changes and crude oil prices[317] - Resin supply contracts average 1-2 years, with pricing variable based on an industry benchmark price index[317] - The company is obligated to purchase a minimum amount of resins from each supplier under annual contracts[317] - Prices for reclaimed polyethylene, waste wood fiber, aluminum, and additives fluctuate based on market supply-demand and business conditions[318] - The company has not entered into hedges for raw material costs but may consider doing so in the future[316] - Short-term supply contracts for resins include indexed-based pricing, with occasional strategic purchases of larger quantities[316] - Raw materials are generally purchased on an as-needed basis, except for indexed-based resin contracts and strategic purchases[316]

3rd Quarter FY 2023 Earnings Presentation DISCLAIMER Important Notice This presentation contains “forward-looking statements” within the meaning of federal securities laws, including the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this presentation, including statements regarding future operations are forward-looking statements. In some cases, forward looking statements may be identified b ...

The AZEK Company Inc. (NYSE:AZEK) Q3 2023 Earnings Conference Call August 8, 2023 5:00 PM ET Company Participants Eric Robinson – Investor Relations Jesse Singh – Chief Executive Officer Peter Clifford – Chief Financial Officer Conference Call Participants Phil Ng – Jefferies Michael Rehaut – JPMorgan Ryan Merkel – William Blair Keith Hughes – Truist Tim Wojs – Baird Susan Maklari – Goldman Sachs Trey Grooms – Stephens John Lovallo – UBS Adam Baumgarten – Zelman & Associates Rafe Jadrosich – Bank of America ...