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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 Title of each class Trading Symbol Name of each exchange on which registered Class A Common Stock, par value $0.001 per share AZEK The New York Stock Exchange FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ ...

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 ...

PART I [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for The AZEK Company Inc. as of June 30, 2023 [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2023, total assets slightly decreased to **$2.36 billion**, with cash doubling to **$244.6 million** and inventories significantly decreasing Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2023 | September 30, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $244,597 | $120,817 | | Inventories | $221,281 | $299,905 | | Total current assets | $569,647 | $530,594 | | Total assets | $2,358,866 | $2,383,091 | | **Liabilities & Equity** | | | | Total current liabilities | $167,092 | $182,491 | | Long-term debt—less current portion | $581,418 | $584,879 | | Total liabilities | $921,051 | $938,648 | | Total stockholders' equity | $1,437,815 | $1,444,443 | [Condensed Consolidated Statements of Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Net sales decreased **1.9%** to **$387.6 million** for Q3 2023, while net income increased **26.9%** to **$34.9 million**, but nine-month net income fell **68.4%** to **$25.3 million** Statement of Comprehensive Income Summary (in thousands, except per share data) | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Nine Months Ended June 30, 2023 | Nine Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $387,553 | $394,991 | $981,504 | $1,050,954 | | Gross profit | $132,200 | $126,387 | $287,952 | $337,456 | | Operating income | $58,550 | $47,650 | $66,398 | $124,728 | | Net income | $34,875 | $27,476 | $25,312 | $80,001 | | Diluted EPS | $0.23 | $0.18 | $0.17 | $0.51 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly increased to **$230.0 million** for the nine months ended June 30, 2023, driven by inventory reduction Cash Flow Summary (in thousands) | Activity | Nine Months Ended June 30, 2023 | Nine Months Ended June 30, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $230,043 | $65,700 | | Net cash used in investing activities | $(54,047) | $(225,809) | | Net cash provided by (used in) financing activities | $(52,216) | $69,194 | | Net increase (decrease) in cash | $123,780 | $(90,915) | | Cash and cash equivalents – End of period | $244,597 | $159,621 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section details accounting policies, including revenue recognition, business combinations, debt structure, segment performance, and share repurchase activities - In Q3 2023, the company completed a secondary offering where selling stockholders sold **16.1 million** shares, and the company repurchased **1.48 million** shares for approximately **$36.0 million** as part of the offering[22](index=22&type=chunk) - On August 1, 2022, the company acquired INTEX Millwork Solutions for a total purchase price of approximately **$25.9 million**, which included **$20.1 million** in cash and **$5.8 million** in contingent consideration[34](index=34&type=chunk) - As of June 30, 2023, the company had **$595.5 million** outstanding under its 2022 Term Loan Agreement and no outstanding borrowings under its **$150.0 million** Revolving Credit Facility[53](index=53&type=chunk)[54](index=54&type=chunk)[56](index=56&type=chunk) - In November 2022, the company entered into two interest rate swap agreements, each with a notional amount of **$150 million**, to hedge against interest rate volatility on its term loan[69](index=69&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 and nine-month fiscal 2023 financial results, highlighting sales declines due to volume, segment performance, non-GAAP measures, and liquidity [Results of Operations](index=30&type=section&id=Results%20of%20Operations) Q3 2023 net sales decreased **1.9%** to **$387.6 million** due to volume declines, while nine-month net sales fell **6.6%** to **$981.5 million** with net income down **68.4%** Q3 2023 vs Q3 2022 Performance (in thousands) | Metric | Q3 2023 | Q3 2022 | $ Variance | % Variance | | :--- | :--- | :--- | :--- | :--- | | Net sales | $387,553 | $394,991 | $(7,438) | (1.9)% | | Gross profit | $132,200 | $126,387 | $5,813 | 4.6% | | Operating income | $58,550 | $47,650 | $10,900 | 22.9% | | Net income | $34,875 | $27,476 | $7,399 | 26.9% | Nine Months 2023 vs 2022 Performance (in thousands) | Metric | 9M 2023 | 9M 2022 | $ Variance | % Variance | | :--- | :--- | :--- | :--- | :--- | | Net sales | $981,504 | $1,050,954 | $(69,450) | (6.6)% | | Gross profit | $287,952 | $337,456 | $(49,504) | (14.7)% | | Operating income | $66,398 | $124,728 | $(58,330) | (46.8)% | | Net income | $25,312 | $80,001 | $(54,689) | (68.4)% | - The decrease in nine-month net sales was primarily due to a **16%** decline in volume, resulting from channel inventory reductions in the first part of the fiscal year[125](index=125&type=chunk) [Segment Results of Operations](index=32&type=section&id=Segment%20Results%20of%20Operations) The Residential segment saw **2.5%** Q3 sales growth, while the Commercial segment experienced a significant **30.8%** Q3 sales drop due to channel inventory drawdowns Residential Segment Performance (in thousands) | Metric | Q3 2023 | Q3 2022 | % Variance | 9M 2023 | 9M 2022 | % Variance | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net sales | $351,608 | $343,064 | 2.5% | $873,208 | $914,555 | (4.5)% | | Segment Adjusted EBITDA | $105,503 | $91,093 | 15.8% | $211,885 | $258,874 | (18.2)% | Commercial Segment Performance (in thousands) | Metric | Q3 2023 | Q3 2022 | % Variance | 9M 2023 | 9M 2022 | % Variance | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net sales | $35,945 | $51,927 | (30.8)% | $108,296 | $136,399 | (20.6)% | | Segment Adjusted EBITDA | $8,780 | $12,271 | (28.4)% | $21,763 | $25,693 | (15.3)% | [Non-GAAP Financial Measures](index=33&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP measures show Q3 2023 Adjusted EBITDA at **$97.0 million** and nine-month Free Cash Flow significantly improved to **$176.0 million** Non-GAAP Performance Summary (in thousands) | Metric | Q3 2023 | Q3 2022 | 9M 2023 | 9M 2022 | | :--- | :--- | :--- | :--- | :--- | | Adjusted Gross Profit | $156,183 | $147,554 | $358,784 | $398,398 | | Adjusted Net Income | $45,046 | $45,241 | $58,187 | $124,781 | | Adjusted EBITDA | $96,955 | $86,524 | $184,865 | $235,964 | | Free Cash Flow | $160,126 | $107,747 | $175,984 | $(73,791) | [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2023, the company had **$244.6 million** in cash and **$147.2 million** available credit, with operating cash flow increasing to **$230.0 million** for the nine months - The company's liquidity position as of June 30, 2023, includes **$244.6 million** in cash and cash equivalents and **$147.2 million** available under its Revolving Credit Facility[155](index=155&type=chunk) - Net cash from operating activities increased by **$164.3 million** to **$230.0 million** for the nine months ended June 30, 2023, primarily due to a decrease in inventory[161](index=161&type=chunk) - Under its Share Repurchase Program, the company repurchased **1.95 million** shares for **$48.5 million** in Q3 2023, with approximately **$262.5 million** remaining available for future repurchases as of June 30, 2023[164](index=164&type=chunk)[165](index=165&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from interest rate fluctuations, inflation, and raw material price volatility, with a **100-basis-point** interest rate change impacting annual cash interest by **$3.0 million** - A **100 basis point** increase or decrease in floating interest rates would change annual cash interest by approximately **$3.0 million** as of June 30, 2023[174](index=174&type=chunk) - The company has entered into interest rate swaps on a notional amount of **$300 million** to convert variable-rate debt to a fixed rate, hedging against interest rate volatility[174](index=174&type=chunk) - The company faces inflationary pressures and price fluctuations for key raw materials such as polyethylene, PVC resins, and wood fiber, which it attempts to offset through price increases and production efficiencies[177](index=177&type=chunk)[178](index=178&type=chunk) [Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2023, with no material changes to internal control over financial reporting - Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2023[180](index=180&type=chunk) - No changes occurred during the quarter ended June 30, 2023, that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[181](index=181&type=chunk) PART II. Other Information [Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal actions but does not expect any material adverse effects on its financial condition or operations - The company states that there are no current legal claims or proceedings that are expected to have a material adverse effect on its business, financial condition, or cash flows[183](index=183&type=chunk) [Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the company's 2022 Form 10-K - No material changes have been made to the risk factors disclosed in the company's 2022 Form 10-K since September 30, 2022[184](index=184&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q3 2023, the company repurchased **1,946,747** shares of Class A common stock at an average price of **$24.90** per share Issuer Purchases of Equity Securities (Q3 2023) | Period | Total Shares Purchased | Average Price Paid per Share | Approx. Value of Shares Remaining for Repurchase | | :--- | :--- | :--- | :--- | | May 2023 | 1,603,307 | $25.39 (calculated) | $271,637,771 | | June 2023 | 343,440 | $26.46 (calculated) | $262,548,740 | | **Total** | **1,946,747** | **$24.90 (reported)** | **N/A** | - The repurchases in Q3 2023 included **1,477,832** shares bought from the underwriter in the secondary offering for ~**$36.0 million** and **468,915** shares bought on the open market for ~**$12.0 million**[187](index=187&type=chunk) [Other Information](index=45&type=section&id=Item%205.%20Other%20Information) CEO Jesse Singh established a Rule 10b5-1 trading plan for the potential sale of up to **143,000** Class A common shares - CEO Jesse Singh established a Rule 10b5-1 trading plan on May 10, 2023, for the sale of up to **143,000** shares of Class A common stock over a one-year period starting September 11, 2023[189](index=189&type=chunk) [Exhibits](index=46&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the report, including certifications and XBRL data files - The report includes standard filings such as CEO and CFO certifications under Sarbanes-Oxley Sections 302 and 906, and Inline XBRL documents[191](index=191&type=chunk)