Financial Data and Key Metrics Changes - For Q1 2025, the company reported revenue of $210.5 million, a decrease of 17.3% compared to Q1 2024 [8][12] - Adjusted EBITDA for the quarter was $38.4 million, down 42.1% year-over-year, resulting in an adjusted EBITDA margin of 18.2%, a decrease of approximately 790 basis points from the prior year [15] - Adjusted net income was $17.7 million, a decrease of 51.6% from the previous year, with adjusted EPS at $0.13 [16] Business Line Data and Key Metrics Changes - The self-storage segment saw a revenue decline of 23.1%, attributed to decreased volume due to economic uncertainty [8][12] - New construction revenues decreased by 25.5%, primarily due to project delays linked to high interest rates [12] - The R3 segment experienced a revenue increase of 19.3%, driven by door replacement and renovation activities, despite a nearly 50% decrease in retail big box conversions [12][13] Market Data and Key Metrics Changes - The international segment's revenues increased by $6.5 million, or 44.2%, compared to the prior year, due to normalizing market conditions following a recession in the UK [13] - The commercial and other sales channel experienced a 1% decline, primarily due to softness in the rolling sheet door market, partially offset by contributions from the TMC acquisition [8][12] Company Strategy and Development Direction - The company is focused on operational excellence and disciplined capital allocation while investing for long-term success [6][7] - A cost reduction plan is in place, expected to yield annual pre-tax savings of $10 million to $12 million by the end of 2025 [9][15] - The company anticipates a shift in customer focus towards optimizing and upgrading existing properties rather than new construction [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying demand for self-storage solutions despite current market volatility [9][11] - The company expects to see strengthening results in the latter half of 2025, with a reaffirmation of full-year revenue guidance between $860 million and $890 million [17][18] - Management noted that the current tariff environment is manageable, with estimated impacts in the low single-digit millions for 2025 [10][11] Other Important Information - The company generated cash from operating activities of $48.3 million and free cash flow of $41.9 million in the quarter, representing a free cash flow conversion of 170% of adjusted net income [16] - The company repurchased 600,000 shares for $5.1 million during the quarter, with $16.3 million remaining on its share repurchase authorization [10][17] Q&A Session Summary Question: What is the latest on project delays and order activity in the pipeline? - Management noted that projects are moving through the pipeline, with steady small growth in both backlog and pipeline [25][27] Question: How is pricing expected to change given steel inflation and tariffs? - Management indicated that pricing would blend into the year, with Q1 not as impacted due to existing inventory [28][29] Question: What is the expected cadence of cost savings from structural reductions? - The company expects to reach a full run rate for cost savings by the end of Q2, with various initiatives in place to drive these savings [52] Question: How is the R3 segment performing and what are the expectations for retail conversions? - Management observed incremental increases in R3 projects and expects retail conversions to stabilize [39][40] Question: Are there signs of stabilization in the commercial segment? - Management confirmed stabilization in the commercial segment, with growth in certain product lines [46] Question: Are there more project starts moving forward or cancellations? - Management reported an increase in project starts, with no unusual cancellations noted [48]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported revenue of $210.5 million, a decrease of 17.3% compared to Q1 2024 [8][13] - Adjusted EBITDA for the quarter was $38.4 million, down 42.1% year-over-year, resulting in an adjusted EBITDA margin of 18.2%, a decrease of approximately 790 basis points from the prior year [15] - Adjusted net income was $17.7 million, a decrease of 51.6% from the previous year, with adjusted EPS at $0.13 [16] Business Line Data and Key Metrics Changes - The self-storage segment saw a revenue decline of 23.1%, attributed to reduced volume due to economic uncertainty [8][13] - New construction revenues decreased by 25.5%, primarily due to project delays linked to high interest rates [13] - The R3 segment experienced a revenue increase of 19.3%, although retail big box conversions and facility expansions were down nearly 50% [13][15] - The international segment's revenues increased by $6.5 million or 44.2% compared to the prior year, benefiting from normalizing market conditions [14] Market Data and Key Metrics Changes - The company noted ongoing macroeconomic volatility impacting customer liquidity and capital deployment [6][9] - The backlog and pipeline showed growth despite market uncertainty, indicating stability in demand for self-storage solutions [7][20] - Tariff impacts are expected to be low single-digit millions for 2025, with potential ongoing annual impacts estimated at $10 million to $12 million beyond 2025 [11][12] Company Strategy and Development Direction - The company is focused on operational excellence and disciplined capital allocation while investing for long-term success [6][7] - A cost reduction plan is in place, expected to yield annual pre-tax savings of approximately $10 million to $12 million by the end of 2025 [10][15] - The company anticipates a shift in customer focus towards optimizing and upgrading existing properties rather than new construction [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals of the self-storage industry, citing strong underlying demand drivers [12][20] - The company expects results to strengthen in the latter half of 2025, with an increase in R3 project activity [18][19] - Management acknowledged the challenges posed by high interest rates but noted that project timelines are beginning to normalize [26][49] Other Important Information - The company generated cash from operating activities of $48.3 million and free cash flow of $41.9 million in the quarter, representing a free cash flow conversion of 170% of adjusted net income [16][17] - The company repurchased 600,000 shares for $5.1 million during the quarter, with $16.3 million remaining on its share repurchase authorization [17][18] Q&A Session Summary Question: What is the latest on project delays and order activity in the pipeline? - Management noted that projects are moving through the pipeline, with steady growth in both orders and backlog since the beginning of the year [26][28] Question: How is pricing being affected by tariffs and steel inflation? - Management indicated that pricing impacts are expected to blend into the year, with Q1 not as affected due to existing inventory [29][30] Question: What is the expected cadence of cost savings from structural reductions? - Management expects to reach a full run rate for cost savings by the end of Q2, with various initiatives in place to drive these savings [53][54] Question: How is the R3 segment performing and what are the expectations for retail conversions? - Management observed an increase in R3 project activity and expects steady state performance in retail conversions moving forward [40][41] Question: Are there signs of stabilization in the commercial segment? - Management confirmed stabilization in the commercial segment, with growth in certain product lines, although the commercial sheet door sector remains depressed [47]

Core Viewpoint - Janus International Group, Inc. reported quarterly earnings of $0.13 per share, exceeding the Zacks Consensus Estimate of $0.08 per share, but down from $0.21 per share a year ago, indicating a 62.50% earnings surprise [1] Group 1: Earnings Performance - The company has surpassed consensus EPS estimates two times over the last four quarters [2] - The quarterly revenue was $210.5 million, surpassing the Zacks Consensus Estimate by 1.54%, but down from $254.5 million year-over-year [2] - The earnings surprise for the last quarter was 400%, with actual earnings of $0.05 compared to an expected $0.01 [1] Group 2: Stock Performance and Outlook - Janus International Group shares have declined approximately 2.7% year-to-date, while the S&P 500 has decreased by 4.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.12 on revenues of $212.2 million, and for the current fiscal year, it is $0.48 on revenues of $874.6 million [7] Group 3: Industry Context - The Building Products - Miscellaneous industry is currently ranked in the top 38% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]

FIRST QUARTER 2025 EARNINGS PRESENTATION May 8, 2025 JanusIntl.com 1 Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS, Free Cash Flow, Free Cash Flow Conversion of Adjusted Net Income, and Net Leverage Ratio are non-GAAP financial measures used by Janus to evaluate its operating performance, generate future operating plans, and make strategic decisions, including those relating to operating expenses and the allocation of internal resources. Accordingly, Janus believes these non-GAAP financial meas ...

Financial Performance - Total revenue for Q1 2025 was $210.5 million, a 17.3% decrease from $254.5 million in Q1 2024[4] - Net income for Q1 2025 was $10.8 million, or $0.08 per diluted share, down 64.8% from $30.7 million, or $0.21 per diluted share in Q1 2024[4] - Adjusted EBITDA for Q1 2025 was $38.4 million, a 42.1% decrease compared to $66.3 million in Q1 2024, with an adjusted EBITDA margin of 18.2%[4] - Adjusted net income for Q1 2025 was $17.7 million, down 51.6% from $36.6 million in Q1 2024, with adjusted net income per diluted share of $0.13[4] - Total revenue for the three months ended March 29, 2025, was $210.5 million, down 17.3% from $254.5 million in the prior year[20] - Net income for the three months ended March 29, 2025, was $10.8 million, a decrease of 64.8% compared to $30.7 million for the same period in 2024[21] - Adjusted EBITDA for the three months ended March 29, 2025, was $38.4 million, a decline of 42.1% from $66.3 million in the same period last year[21] - Non-GAAP adjusted net income for the three months ended March 29, 2025, was $17.7 million, down from $36.6 million in the same period last year[25] Revenue Breakdown - Self-storage revenues decreased by 23.1% in Q1 2025, while commercial and other revenues declined by 1.0%[4] - Revenue from self-storage new construction was $86.9 million, a decrease of 25.5% from $116.6 million in the prior year[20] - The acquisition of TMC contributed $3.5 million to the revenue of the commercial and other sales channel[4] Cash Flow and Liquidity - Cash flows provided by operating activities increased to $48.3 million for the three months ended March 29, 2025, compared to $28.6 million for the same period in 2024[19] - Free Cash Flow for the three months ended March 29, 2025, was $41.9 million, up from $24.0 million for the same period in 2024, representing a 74.6% increase[29] - Cash Flow from Operating Activities for the three months ended March 29, 2025, was $48.3 million, compared to $28.6 million for the same period in 2024[29] - Total cash as of March 29, 2025, was $140.8 million, a decrease from $149.3 million as of December 28, 2024[31] Debt and Leverage - The company’s long-term debt decreased to $544.5 million as of March 29, 2025, down from $583.2 million at the end of 2024[18] - Net Debt as of March 29, 2025, was $416.2 million, down from $449.2 million as of December 28, 2024[31] - Non-GAAP Net Leverage Ratio increased to 2.3 as of March 29, 2025, compared to 2.2 as of December 28, 2024[31] - Long-Term Debt to Net Income ratio increased to 11.0 as of March 29, 2025, from 8.5 as of December 28, 2024[31] Shareholder Actions - The company repurchased 0.6 million shares of common stock for $5.1 million, with $16.3 million remaining under its share repurchase authorization[4] Guidance and Outlook - The company reaffirmed its full-year 2025 revenue guidance in the range of $860 million to $890 million and adjusted EBITDA guidance of $175 million to $195 million[5] - The CEO expressed confidence in the company's ability to deliver solid results despite macroeconomic volatility and inflation concerns[3] Asset Management - Total assets decreased to $1,271.8 million as of March 29, 2025, down from $1,301.3 million as of December 28, 2024, representing a decline of 2.3%[18] - The company reported a decrease in cash and cash equivalents to $140.8 million as of March 29, 2025, from $149.3 million at the end of 2024[19] - Trailing Twelve-Month Free Cash Flow as of March 29, 2025, was $151.8 million, down from $175.7 million as of March 30, 2024[29] - Trailing Twelve-Month Adjusted EBITDA for the period ended March 29, 2025, was $180.6 million, down from $208.5 million for the period ended December 28, 2024[31] - GAAP diluted EPS for the three months ended March 29, 2025, was $0.08, unchanged from the same period in 2024[28] - Free Cash Flow Conversion of Non-GAAP Adjusted Net Income reached 237% for the three months ended March 29, 2025, compared to 66% for the same period in 2024[29]

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]