Anselm Wong Anselm Wong Stanley Elliott And then on the back end, look, it's -- that's ever-evolving. We will continue to refine and enhance the back end, but as you know, you've heard us talk about, we are still in the very, very early innings of this opportunity. Yes, we're happy with the growth rates, but we're certainly not satisfied in terms of what the total opportunity is and where we think the market is ultimately going long term. Great. And then the industry is seeing some larger M&A deals here rec ...

Financial Performance Highlights - Strong organic revenue growth of 9.2% across all sales channels[1] - Free cash flow generation of $42.8 million, with a TTM 2Q 2023 free cash flow conversion of Adjusted Net Income of 100%[1] - Adjusted EBITDA grew by 46.0% to $74.0 million, representing a 27.3% margin[18, 27] - Net income increased by 62.0% to $36.987 million for the three months ended July 1, 2023, compared to $22.837 million for the three months ended July 2, 2022[8] - Net income increased by 48.0% to $62.969 million for the six months ended July 1, 2023, compared to $42.541 million for the six months ended July 2, 2022[8] Guidance and Outlook - Updated full-year revenue guidance to $1.07 billion to $1.09 billion, a 5.9% increase versus 2022 at the midpoint[6] - Updated full-year Adjusted EBITDA guidance to $269.5 million to $289.5 million, a 23.2% increase versus 2022 at the midpoint[6] Capital Structure and Allocation - Paid down $35 million on the first lien term loan in the second quarter, with a year-to-date total voluntary debt paydown of $85 million[7, 26, 34] - Quarter-end net leverage ratio of 2.1x, down 1.8x from 2Q 2022, within the target range of 2.0x - 3.0x[7] Segment Performance - New Construction sales increased by 33.9%[18] - Restore, Rebuild & Replace ("R3") sales increased by 7.6%[33] - Commercial & Other sales decreased by 9.3%[1]

Great. And then lastly for me, on Nok, a nice sequential pickup. What are you learning from your customers there? In the past, I guess, youÂ've talked about maybe potential add-ons for other products, other services down the road. Does that seem to be something that is of interest to them? Or is it more just kind of making sure we have the lock system in place and rolling that out on a kind of more industry standard? And I guess one last quick one. Are you having any problems or seeing anything on the suppl ...

| --- | --- | |-------|-------| | | | | | | | | | Certain statements in this communication, including the estimated guidance provided under "2023 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 statements of historical fact included in this communication are forward-looking statements, including, but not limited to statemen ...

[Cautionary Note Regarding Forward-Looking Statements](index=4&type=section&id=CAUTIONARY%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This section clarifies that the Form 10-K contains forward-looking statements about future events and financial performance, which are subject to risks and uncertainties that could cause actual results to differ materially [Forward-Looking Statements Disclosure](index=4&type=section&id=Forward-Looking%20Statements%20Disclosure) This section clarifies that the Form 10-K contains forward-looking statements about future events and financial performance, which are subject to risks and uncertainties that could cause actual results to differ materially. The company does not undertake to update these statements unless required by law - Statements in this Form 10-K regarding future events, financial performance, business strategies, and expectations are considered 'forward-looking statements' under federal securities laws[14](index=14&type=chunk) - These statements involve risks and uncertainties, including those detailed in 'Part I, Item 1A, "Risk Factors"', which could cause actual results to differ materially from those contemplated[15](index=15&type=chunk) - The company does not assume any obligation to update forward-looking statements after the report date, except as required by law[15](index=15&type=chunk) [Summary Risk Factors](index=6&type=section&id=SUMMARY%20RISK%20FACTORS) This section outlines key risks impacting Janus's business and common stock ownership, including operational challenges, market competition, acquisition integration, raw material price volatility, and public company obligations [Risks Relating to Janus's Business](index=6&type=section&id=Risks%20Relating%20to%20Janus's%20Business) Janus's business faces risks including dependence on qualified personnel, intense competition, challenges in integrating acquisitions, volatility in raw material prices (especially steel coil), potential litigation, and exposure to complex privacy and environmental regulations. Cybersecurity threats and economic downturns also pose significant risks to operations and financial results - Janus's success is dependent on its ability to hire, retain, and utilize qualified personnel, facing a competitive market for talent[23](index=23&type=chunk) - The company operates in a highly competitive and fragmented business, which can lead to downward pressure on contract prices and profit margins[23](index=23&type=chunk) - Acquisitions are a key growth strategy, but they present risks related to integration, achieving synergies, identifying suitable opportunities, and assuming unknown liabilities[23](index=23&type=chunk) - Dependence on raw materials like steel coil and purchased components exposes the company to price fluctuations and supply disruptions, which can adversely affect financial results if cost increases cannot be passed to customers[23](index=23&type=chunk) - The company is subject to complex and evolving U.S. and foreign laws and regulations regarding privacy, data protection, and environmental matters, creating uncertainty about future expenditures and liabilities[23](index=23&type=chunk) - Significant disruptions or unauthorized access to computer systems (cybersecurity risks) could lead to service degradation, data disclosure, intellectual property theft, and harm to reputation and financial condition[23](index=23&type=chunk) - Economic uncertainty or downturns, particularly impacting specific industries like self-storage and commercial markets, could adversely affect demand for products and services, leading to reduced spending and increased bad debts[23](index=23&type=chunk) [Risks Relating to Ownership of our Common Stock](index=6&type=section&id=Risks%20Relating%20to%20Ownership%20of%20our%20Common%20Stock) Risks for common stock ownership include potential dilution from future equity issuances, dependence on subsidiary profits for dividends, anti-takeover provisions, and increased costs and obligations as a public company. Material weaknesses in internal controls and the restatement of financial statements also pose risks to investor confidence and stock price - The company's only significant asset is its ownership interest in Janus Core, making it dependent on its subsidiaries' profits for distributions and to meet financial obligations[23](index=23&type=chunk) - Provisions in the company's certificate of incorporation and Delaware law, such as a staggered Board and authorized preferred stock, may inhibit takeovers and entrench management, potentially limiting the future price of common stock[23](index=23&type=chunk) - As a public company, Janus incurs increased costs and obligations related to compliance with SEC and NYSE rules, which may divert management's attention and reduce profitability[23](index=23&type=chunk) - The company has identified **material weaknesses** in its internal control over financial reporting as of **December 31, 2022**, which could affect the accuracy and timeliness of financial reporting and investor confidence[24](index=24&type=chunk) - The restatement of interim financial statements has exposed the company to additional risks, including increased professional costs and the possibility of legal proceedings[24](index=24&type=chunk) - Future issuance of additional common stock or other equity securities without stockholder approval could dilute existing ownership interests and depress the market price of the Common Stock[24](index=24&type=chunk) [Part I](index=8&type=section&id=PART%20I) [Item 1. Business](index=8&type=section&id=Item%201.%20BUSINESS) Janus International Group, Inc. is a global manufacturer and supplier of turn-key self-storage, commercial, and industrial building solutions. The company offers a comprehensive suite of products and services, including door automation, access control, roll-up and swing doors, hallway systems, and relocatable storage units, serving customers from facility planning to restoration. Key strengths include strong market share in self-storage, mission-critical solutions, a complete product offering, proprietary technology, an experienced management team, and a disciplined acquisition strategy - Janus International Group, Inc. is a leading global manufacturer, supplier, and provider of turn-key self-storage, commercial, and industrial building solutions[26](index=26&type=chunk) - The company offers facility and door automation, access control technologies, roll-up and swing doors, hallway systems, and relocatable storage units, supporting customers through all project phases[26](index=26&type=chunk) - Competitive strengths include a **strong market share** (over **50% for interior building solutions** in self-storage), mission-critical products representing a small fraction of facility costs, a complete product and service offering, proprietary high-ROI technology solutions (like Nokē Smart Entry), and a proven, experienced management team[28](index=28&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk) - Janus's acquisition strategy focuses on portfolio diversification, geographic expansion, and technological innovation, as evidenced by recent acquisitions of ACT, DBCI, and G&M Stor-More[33](index=33&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) [Overview](index=8&type=section&id=Overview) Janus International Group, Inc. is a global manufacturer and supplier of turn-key self-storage, commercial, and industrial building solutions, offering a comprehensive suite of products and services from facility planning to restoration - Janus International Group, Inc. is a leading global manufacturer, supplier, and provider of turn-key self-storage, commercial, and industrial building solutions, headquartered in Temple, Georgia[26](index=26&type=chunk) - The company offers facility and door automation, access control technologies, roll-up and swing doors, hallway systems, and relocatable storage units[26](index=26&type=chunk) - Janus provides solutions spanning facility planning, design, construction, technology, and restoration, rebuilding, and replacement (R3) of damaged or end-of-life products[26](index=26&type=chunk) [Company History](index=8&type=section&id=Company%20History) Founded in 2002, Janus has expanded globally over two decades, with its common stock now listed on the NYSE under 'JBI' - Founded in **2002**, Janus has expanded its operations globally over **20 years**[27](index=27&type=chunk) - The company's common stock is listed and traded on the New York Stock Exchange (NYSE) under the ticker symbol '**JBI**'[27](index=27&type=chunk) [Competitive Strengths](index=8&type=section&id=Competitive%20Strengths) Janus maintains a strong market position in self-storage with over 50% market share, offering mission-critical, comprehensive, and technologically advanced solutions supported by an experienced management team and a disciplined acquisition strategy - Janus holds a **strong market share**, estimated over **50% for interior building solutions** in the self-storage market, serving both institutional REITs and non-institutional operators[28](index=28&type=chunk) - The company provides mission-critical solutions that are typically the last items installed before properties generate income, making reliability and efficiency highly valued by customers[29](index=29&type=chunk) - Janus offers a complete suite of products, solutions, and services, including maintenance, fabrication, and installation, through a large network of third-party installers and **eleven manufacturing facilities** in the U.S[30](index=30&type=chunk) - The company is a first-mover in proprietary high-ROI technology solutions, particularly in the self-storage sector, with its Nokē Smart Entry platform[31](index=31&type=chunk) - Janus is led by a proven and experienced management team with deep industry expertise and a track record of organic and inorganic growth[32](index=32&type=chunk) - The company employs a disciplined, highly accretive acquisition strategy focused on portfolio diversification, geographic expansion, and technological innovation[33](index=33&type=chunk) [Acquisitions](index=9&type=section&id=Acquisitions) Janus strategically acquired ACT, DBCI, and G & M Stor-More Pty Ltd. in 2021 to expand its installation network, customer base, product offerings, and geographical reach in self-storage and commercial markets - In **August 2021**, Janus acquired ACT (Access Control Technologies), a low-voltage/security systems integrator specializing in self-storage and multi-family industries, to expand its Nokē Smart Entry installation network[34](index=34&type=chunk) - Also in **August 2021**, Janus acquired DBCI, a North American manufacturer of exterior building products, to increase its customer base and expand product offerings in commercial and self-storage markets[35](index=35&type=chunk) - In **January 2021**, Janus acquired G & M Stor-More Pty Ltd. to increase its self-storage customer base and expand geographical reach in the Australian market[36](index=36&type=chunk) [Industry Overview](index=9&type=section&id=Industry%20Overview) Janus's sales are primarily driven by the self-storage market (**63% of total sales**), which benefits from favorable macroeconomic trends and high occupancy rates, alongside a growing commercial industrial door market (**37% of total sales

Janus International Group, Inc. (JBI) Q4 2022 Earnings Conference Call March 16, 2023 10:00 AM ET Corporate Participants John Rohlwing - Vice President, Investor Relations & FP&A Ramey Jackson - Chief Executive Officer Anselm Wong - Chief Financial Officer Conference Call Participants Jeff Hammond - KeyBanc Capital Markets Reuben Garner - The Benchmark Company Andrew Maser - Stifel Daniel Moore - CJS Securities Spencer Kaufman - UBS Josh Pokrzywinski - Morgan Stanley Operator Hello, and welcome to the Janus ...

Janus International Group, Inc. (NYSE:JBI) Q3 2022 Earnings Conference Call November 10, 2022 10:00 AM ET Company Participants John Rohlwing - Vice President-Investor Relations & FP&A Ramey Jackson - Chief Executive Officer Anselm Wong - Chief Financial Officer Conference Call Participants David Tarantino - KeyBanc Capital Markets Reuben Garner - The Benchmark Company Daniel Moore - CJS Securities Stanley Elliott - Stifel John Lovallo - UBS Operator Hello, and welcome to the Janus International Third Quarte ...

Q3 2022 Highlights - The company achieved a well-balanced revenue growth of 39.8%, including 35.2% organic YoY growth[10] - Commercial & Other revenue increased by 58.3%[10] - R3 (Restore, Rebuild & Replace) revenue increased by 49.1%[10] - New Construction revenue increased by 13.8%[10] - The Adjusted EBITDA margin was 24.1%, an increase of approximately 480 basis points compared to Q3 2021[10] Q3 2022 Financial Results - Revenue reached $262.5 million, a 39.8% increase[12] - Adjusted EBITDA was $63.3 million, a 74.3% increase with a 24.1% margin[12] - Adjusted Diluted EPS was $0.22[12] - Adjusted Net Income was $32.3 million[12] - Operating Cash Flow was $19.4 million and Free Cash Flow was $16.8 million[12] 2022 Outlook - The company raised its full-year revenue outlook to a range of $990 million to $1.01 billion, representing a 33.3% increase vs 2021 at the midpoint[15] - The company raised its full-year Adjusted EBITDA outlook to a range of $218 million to $225 million, representing a 49.5% increase vs 2021 at the midpoint[15] Leverage - Quarter end leverage ratio of 3.3x – a decrease of 0.6x from Q2 2022[16]

Financial Data and Key Metrics Changes - The company reported consolidated revenues of $247.7 million, an increase of approximately 42% compared to the same period last year, or approximately 27% on an organic basis [14][20] - Adjusted EBITDA was $50.7 million, up approximately 41% from Q2 of 2021, with adjusted EBITDA margins stable year-over-year but increased sequentially by 100 basis points over Q1 2022 [15][23] - Adjusted net income for Q2 2022 was $24.8 million, a 22.8% increase from Q2 2021, with adjusted diluted earnings per share of $0.17 compared to $0.25 in the prior year [28] Business Line Data and Key Metrics Changes - The Commercial and Other segment saw an impressive growth of 81.6%, driven by e-commerce logistics demand and market share gains [20] - The Restore, Rebuild & Replace (R3) segment grew by 34.3%, supported by new capacity additions [20][21] - New Construction revenue increased by 17.3% compared to the prior year quarter, reflecting pent-up demand from previous construction delays [22] Market Data and Key Metrics Changes - The self-storage industry remains strong with high demand and occupancy rates, leading to increased capacity additions [10][18] - The company has maintained favorable lead times despite ongoing supply constraints, allowing for superior execution with customers [20] Company Strategy and Development Direction - The company is focused on key growth strategies, including expanding the rolling steel product line and leveraging acquisitions to accelerate growth [12] - The company aims to reduce leverage towards a target of 2.5 to 3.5 times adjusted EBITDA while remaining opportunistic for M&A opportunities [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum for the second half of the year, citing all-time high backlog and strong early indicators [45] - The company raised its full-year 2022 revenue outlook to a range of $940 million to $960 million, reflecting strong first-half results and continued demand [31][34] Other Important Information - The company closed the quarter with $710.1 million in total debt and a net leverage of 3.9 times net debt to adjusted trailing 12-month EBITDA, down from 4.3 times at the end of Q1 [30] - Free cash flow conversion was 84% year-to-date, indicating strong cash generation capabilities [29] Q&A Session Summary Question: Inventory risk in the building products space - Management confirmed that inventory risk is mitigated as they are a build-to-order solutions provider and have chosen to invest in inventory to meet customer demand [44] Question: Visibility into the second half - Management indicated that all early indicators are at all-time highs, providing confidence in continued momentum [45] Question: Gross margin expectations - Management expects a step function increase in gross margins as commercial actions take effect, with benefits from lower steel costs anticipated towards the end of Q4 2022 and into 2023 [47] Question: Business mix and segment strength - Management sees consistent growth across all sales channels, with expectations for new construction to pull through more strongly in the second half of the year [63] Question: Steel flow through into P&L - Management noted that the timing for steel price benefits has been slightly longer than normal due to supply chain issues [65]

| --- | --- | --- | |-------|-------|-------| | | | | | | | | 2 FORWARD LOOKING STATEMENTS Certain statements in this communication, including the estimated guidance provided under "2022 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 statements of historical fact included in this communication are forward-looking statement ...