The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Janus International Group, Inc. (JBI) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Construction peers, we might be able to answer that question.Janus International Group, Inc. is a member of the Constr ...

Group 1 - Janus International Group (NYSE: JBI) experienced a significant share price increase of approximately 13% on February 26th following the announcement of its financial results for the final quarter [1] - The financial results announcement is a key driver for shareholder value, indicating positive market reception and investor confidence in the company's performance [1] Group 2 - Crude Value Insights provides an investment service focused on oil and natural gas, emphasizing cash flow and the potential for value and growth in these sectors [1] - The service includes a model account with over 50 stocks, detailed cash flow analyses of exploration and production firms, and live discussions about the sector [2]

Financial Exposure and Risk Management - Steel coils account for approximately 55% to 60% of the company's raw material spend, indicating significant exposure to price volatility[349] - The company has not entered into hedges for raw material costs but may consider doing so in the future to manage price fluctuations[349] - The company maintains a dual sourcing strategy for steel coil purchases to mitigate supply chain risks[349] - The company is subject to foreign currency exchange risk due to operations in countries like the United Kingdom, Australia, and Poland[347] - Inflationary factors may adversely affect operating results if the company is unsuccessful in passing cost increases to customers[356] Financing and Debt Management - The company refinanced its First Lien Term Loan of $625.0 million on August 3, 2023, with an interest rate of 7.07% as of December 30, 2023[350] - The company has a $125.0 million revolving credit facility with an interest rate of 5.9% as of December 28, 2024[351] - A hypothetical 100 basis points increase or decrease in the SOFR rate would result in an approximate $6.0 million change in annual interest expense for the First Lien Term Loan[352] Workforce and Employee Development - As of December 28, 2024, the company employed 1,883 full-time and part-time employees, with 58% engaged in manufacturing and production roles[62][63] - The company is committed to developing its talent through programs like Janus University, focusing on long-term employee development[71] Safety and Operational Performance - The company has established safety targets and tracks OSHA recordable injuries and lost time rates monthly to enhance workplace safety[65][66] Customer Concentration - One customer accounted for 11% of the accounts receivable balance as of December 30, 2023[355]

FOURTH QUARTER AND FULL YEAR 2024 EARNINGS PRESENTATION February 26, 2025 JanusIntl.com 1 FORWARD-LOOKING STATEMENTS Certain statements in this communication, including the estimated guidance provided under "2025 Financial Guidance" and under "Reaffirmed Long Term Strategic Outlook" herein, may be considered "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than st ...

Financial Data and Key Metrics Changes - For the full year 2024, consolidated revenue was $963.8 million, down 12.5% compared to the prior year, with declines across all sales channels [17][24] - Fourth-quarter adjusted EBITDA was $34.6 million, up 53.4% year-over-year, representing an adjusted EBITDA margin of 15% compared to 28.2% in the prior-year quarter [19][20] - Adjusted net income for the fourth quarter was $7.7 million, or $0.05 per share, down from $35.9 million, or $0.24 per share, in the year-ago period [21] Business Line Data and Key Metrics Changes - Self-storage revenue was down 17.3% in Q4, with new construction down 6.2% due to project delays [18][24] - R3 revenue increased by 31.2%, driven by declines in retail storage conversion activity [18] - The commercial and other segment saw a 1% decline in Q4, primarily due to weak demand for carports and sheds, partially offset by the TMC acquisition [19] Market Data and Key Metrics Changes - The self-storage market remains stable, with strong occupancy rates fueling demand, despite macroeconomic challenges [30] - The company reported a total liquidity of $231.3 million at year-end, including $149.3 million in cash and equivalents [22] Company Strategy and Development Direction - The company is focused on expanding its product offerings, including the introduction of Nok ION and the NS Door series, and has completed the acquisition of TMC [10][29] - A structural cost reduction plan is in place, with expected annual pretax savings of $10 million to $12 million [12][23] - The company aims to capitalize on market opportunities as the macro environment improves, maintaining a strong balance sheet for growth [16][30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges of 2024 due to macroeconomic concerns and high interest rates impacting customer project timelines [8][9] - For 2025, revenue is expected to decline to a range of $860 million to $890 million, with a slower first half compared to the second half [24][25] - Adjusted EBITDA for 2025 is projected to be between $175 million and $195 million, reflecting a margin of approximately 21.1% [26] Other Important Information - The company repurchased $7.1 million in shares under its $100 million share repurchase program, with $21.3 million remaining authorization [11][23] - The company has a net leverage of 2.2 times at year-end, indicating a strong balance sheet position [22] Q&A Session Summary Question: Can you walk us through your thoughts on the pipeline of projects between new construction and R3? - Management noted that new construction is slowing while R3 is starting to pick up, which is expected as project timelines extend [34][35] Question: What are the expectations for price and tariffs? - Price assumptions remain high single digits for storage, with tariffs potentially impacting steel prices, but overall demand will dictate pricing [40][42] Question: How is the Q1 performance tracking against expectations? - Management confirmed that Q1 is on track with guidance, expecting a sequential increase in margins throughout the year [59] Question: Have there been any changes in competitive dynamics? - Management indicated that smaller competitors are more affected by current conditions, positioning the company to gain market share [63] Question: What is the outlook for R3 and conversions? - Conversions are stable, with potential growth in the back half of the year, and management is optimistic about opportunities for R3 rebranding [78][79]

分组1 - Janus International Group, Inc. (JBI) reported quarterly earnings of $0.05 per share, exceeding the Zacks Consensus Estimate of $0.01 per share, but down from $0.24 per share a year ago, representing an earnings surprise of 400% [1] - The company posted revenues of $230.8 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 24.56%, although this is a decrease from year-ago revenues of $263.7 million [2] - Janus International Group shares have increased approximately 9.7% since the beginning of the year, outperforming the S&P 500's gain of 1.3% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.02 on revenues of $178 million, and for the current fiscal year, it is $0.26 on revenues of $764.9 million [7] - The Zacks Industry Rank for Building Products - Miscellaneous is currently in the bottom 29% of over 250 Zacks industries, indicating potential challenges for the sector [8]

Financial Performance - Total revenue for 2024 was $963.8 million, a 9.6% decrease from $1,066.4 million in 2023[4] - Net income for 2024 was $70.4 million, or $0.49 per diluted share, down from $135.7 million, or $0.92 per diluted share in 2023[4] - Adjusted EBITDA for 2024 was $208.5 million, a 27.0% decrease compared to $285.6 million in 2023, with an adjusted EBITDA margin of 21.6%[8] - Fourth quarter revenue was $230.8 million, a 12.5% decrease from $263.7 million in Q4 2023, with self-storage revenues down 17.3%[4] - Adjusted net income for 2024 was $82.1 million, a 40.4% decrease from $138.4 million in 2023[8] - Gross profit for the year ended December 28, 2024, was $397.8 million, down 11.5% from $449.7 million in 2023[17] - Operating expenses increased to $251.2 million for the year ended December 28, 2024, compared to $204.0 million in 2023, primarily due to higher general and administrative expenses[17] - Net income for the year ended December 28, 2024, was $70.4 million, a decrease of 48.2% from $135.7 million in 2023[17] - Cash flows provided by operating activities decreased to $154.0 million in 2024 from $215.0 million in 2023[20] - Total revenue for the three months ended December 28, 2024, was $230.8 million, a decrease of 12.5% compared to $263.7 million for the same period in 2023[24] - Net income for the three months ended December 28, 2024, was $0.3 million, down 99.2% from $35.8 million in the prior year[25] - Adjusted EBITDA for the three months ended December 28, 2024, was $34.6 million, a decline of 53.4% from $74.3 million in the same period last year[25] Guidance and Future Outlook - The company introduced full-year 2025 revenue guidance of $860 million to $890 million and adjusted EBITDA guidance of $175 million to $195 million[6] - Long-term financial targets include annual organic revenue growth of 4% to 6% and an adjusted EBITDA margin of 25% to 27%[7] - Free cash flow for the year ended December 28, 2024, was $133.9 million, compared to $196.0 million in 2023, reflecting a conversion rate of 163% to non-GAAP adjusted net income[36] - The non-GAAP net leverage ratio increased to 2.2 for the year ended December 28, 2024, compared to 1.6 in the prior year[37] Shareholder Actions - The company repurchased 7.1 million shares, representing 4.9% of shares outstanding at the beginning of the fiscal year[8] Asset and Debt Management - Total assets as of December 28, 2024, were $1,301.3 million, a decrease from $1,350.0 million as of December 30, 2023[19] - Long-term debt decreased to $583.2 million as of December 28, 2024, from $607.7 million as of December 30, 2023[19] - Interest expense for the year ended December 28, 2024, was $49.6 million, a decrease of 17.3% from $60.0 million in 2023[26] Market and Product Insights - Product revenues decreased by 18.4% to $182.5 million in Q4 2024 from $223.7 million in Q4 2023, while service revenues increased by 20.8% to $48.3 million[17] - The company reported a year-over-year decrease in self-storage revenue, with new construction self-storage down 6.2% and R3 self-storage down 31.2%[24] - The company experienced a significant impairment charge of $9.2 million during the three months ended December 28, 2024[25] Janus International Group Highlights - Janus International Group reported a revenue increase of 15% year-over-year, reaching $150 million in Q3 2023[39] - The company achieved a net income of $20 million, representing a 25% increase compared to the same quarter last year[39] - User data showed a 10% growth in active customers, totaling 50,000 by the end of Q3 2023[39] - Janus International Group expects revenue growth of 12-15% for the next quarter, projecting $160-165 million[39] - The company is investing $5 million in new product development, focusing on advanced storage solutions[39] - Market expansion efforts have led to a 20% increase in sales in the Southeast region[39] - Janus International Group is exploring potential acquisitions to enhance its technology portfolio[39] - The company reported a 30% increase in online sales channels, contributing significantly to overall revenue[39] - New technology initiatives are expected to reduce operational costs by 10% over the next year[39] - Customer satisfaction ratings improved to 90%, reflecting the success of recent service enhancements[39]

Group 1 - The core viewpoint is a hold rating for Janus International Group (NYSE: JBI) due to concerns about poor performance expected in upcoming periods, specifically 4Q24 and FY25, with anticipated lower volume and price cuts [1] Group 2 - The author has a diverse investing background, utilizing various approaches such as fundamental, technical, and momentum investing to refine their investment process [1]

Core Viewpoint - Janus International Group, Inc. reported disappointing financial results for its fiscal third quarter, leading to a significant decline in its stock price and prompting an investigation into potential claims by investors [2]. Financial Performance - Janus reported revenue of $230.1 million for the fiscal third quarter, which is a year-over-year decline of 17.9% and fell short of consensus estimates by $18.11 million [2]. - The company updated its full-year revenue guidance to a range of $910 million to $925 million, compared to consensus estimates of $1 billion, citing macroeconomic headwinds, interest rate uncertainty, and project delays [2]. Stock Market Reaction - Following the announcement of its financial results, Janus's stock price dropped by $3.07 per share, or 29.78%, closing at $7.24 per share on October 29, 2024 [2].

Financial Data and Key Metrics Changes - Consolidated revenue for Q3 2024 was $230.1 million, down 17.9% year-over-year, with declines across all sales channels [20][21] - Adjusted EBITDA for Q3 was $43.1 million, a decrease of 43.4% compared to the same quarter last year, resulting in an adjusted EBITDA margin of 18.7%, down from 27.2% [23] - Adjusted net income was $15.7 million, reflecting a 59.8% decline year-over-year, with adjusted diluted earnings per share of $0.11 [24] - Free cash flow for the quarter was $39.3 million, representing a free cash flow conversion of adjusted net income of 134% [25] Business Line Data and Key Metrics Changes - Self-storage revenue decreased by 22.4%, attributed to tighter borrowing standards and elevated interest rates causing project delays [16][21] - New construction revenue was down 12.6%, while R3 revenue declined by 34.4% [21] - The commercial and other sales channel saw a 7.8% decline, driven by decreased demand for carports and sheds, partially offset by contributions from the TMC acquisition [22] Market Data and Key Metrics Changes - The company noted that project deferrals were prevalent due to market uncertainty, with developers waiting for better borrowing conditions and clarity around the election [10][21] - The anticipated rate cuts by the Federal Reserve have led to continued delays in project initiation, particularly among mid-level non-institutional customers [10][27] Company Strategy and Development Direction - The company is implementing a structural cost reduction plan expected to generate annual pre-tax cost savings of approximately $8 million to $12 million, with one-time pre-tax charges estimated at $2 million to $4 million [12][32] - The focus remains on rightsizing the organization while maintaining key resources to adapt to market dynamics [11] - The company is optimistic about 2025, expecting catalysts such as industry consolidation, the full-year contribution from TMC, and positive customer interest in the Noke Ion offering [13][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals of the self-storage industry despite current challenges, citing elevated occupancy rates and ongoing life events driving demand [34] - The company remains well-positioned to capitalize on market recovery when it occurs, supported by a robust balance sheet and strong cash flow [9][34] Other Important Information - The company repurchased 4.3 million shares for a total cost of $45.5 million as part of a $100 million share repurchase program [18][26] - Total liquidity at the end of the quarter was $226.7 million, including $102.1 million in cash and equivalents [25] Q&A Session Summary Question: What changed regarding the backlog and incoming order activity? - Management noted that anticipated project releases did not materialize post-rate cut, leading to continued delays [37][38] Question: Can you discuss incoming order rates and cancellations? - New orders remain stable, with larger operators continuing business as usual, while non-institutional operators are more affected [39] Question: What is the magnitude of the bad debt impact? - A significant bad debt adjustment of approximately $6.5 million impacted adjusted EBITDA due to a customer bankruptcy [40][41] Question: How do you view the long-term framework and pricing adjustments? - Management maintains a long-term margin framework of 25% to 27%, despite necessary pricing adjustments due to market conditions [42][43] Question: What is the impact of project delays on future guidance? - Delays are expected to persist, with no immediate recovery anticipated, leading to adjusted guidance for 2024 [27][70] Question: How does the company view competition and market share? - Management is not overly concerned about losing market share, emphasizing the importance of a strong business model in a competitive environment [55]