Wall Street expects a year-over-year increase in earnings on higher revenues when Janus International Group, Inc. (JBI) reports results for the quarter ended March 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on May 9, 2024, might help the stock move higher if these key numbers are b ...

Financial Overview - Steel coils comprise approximately 58.3% of commodity spend for the fiscal year ended December 30, 2023, down from 62.2% in the previous year[326]. - The interest rate on the Amendment No. 6 First Lien term loan as of December 30, 2023, was 8.76%, based on Adjusted Term SOFR with a 1.00% floor[327]. - The Company maintains a $125.0 million credit facility with an interest rate of 6.8% as of December 30, 2023[328]. - Inflationary factors may adversely affect operating results if the Company cannot pass on cost increases to customers[332]. Customer and Employee Insights - As of December 30, 2023, one customer accounted for 11% of the accounts receivable balance, with no other customers exceeding 10%[331]. - The Company has 1,864 full-time and part-time employees worldwide, with approximately 59% engaged in manufacturing and production roles[63][64]. Environmental and Safety Initiatives - The Company aims to cut greenhouse gas emissions by up to 40% from 2005 levels in the U.S. by 2030, in line with the Inflation Reduction Act of 2022[62]. - The Company tracks OSHA recordable injuries and lost time rates monthly, establishing annual safety targets[66]. Raw Material Management - The Company has not entered into hedges for raw material costs but may consider doing so in the future to combat price fluctuations[326]. - The Company continues to develop new potentially patentable products and enhancements, with patents expiring between 2026 and 2041[57].

[Financial Performance Highlights](index=1&type=section&id=Financial%20Performance%20Highlights) [Fourth Quarter 2023 Performance](index=1&type=section&id=Fourth%20Quarter%202023%20Highlights) Q4 2023 revenue declined 5.7% to $263.7 million, yet Net Income and Adjusted EBITDA grew, expanding the margin to 28.2% Q4 2023 Key Financial Metrics (vs. Q4 2022) | Metric | Q4 2023 ($M) | Q4 2022 ($M) | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $263.7 | $279.7 | -5.7% | | Self-Storage Revenue | - | - | +2.5% | | Commercial & Other Revenue | - | - | -20.2% | | **Net Income** | $35.8 | $32.7 | +9.5% | | Diluted EPS | $0.24 | $0.22 | +9.1% | | **Adjusted EBITDA** | $74.3 | $68.2 | +8.9% | | Adjusted EBITDA Margin | 28.2% | 24.4% | +3.8 p.p. | | **Adjusted Net Income** | $35.9 | $32.7 | +9.8% | | Adjusted Diluted EPS | $0.24 | $0.22 | +9.1% | [Full Year 2023 Performance](index=1&type=section&id=Full%20Year%202023%20Highlights) Janus achieved record FY23 results with 4.6% organic revenue growth to $1,066.4 million, Net Income and Adjusted EBITDA up 25.9%, and net leverage reduced to 1.6x Full Year 2023 Key Financial Metrics (vs. FY 2022) | Metric | FY 2023 ($M) | FY 2022 ($M) | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $1,066.4 | $1,019.5 | +4.6% | | Self-Storage Revenue | - | - | +13.2% | | Commercial & Other Revenue | - | - | -10.2% | | **Net Income** | $135.7 | $107.7 | +25.9% | | Diluted EPS | $0.92 | $0.73 | +26.0% | | **Adjusted EBITDA** | $285.6 | $226.9 | +25.9% | | Adjusted EBITDA Margin | 26.8% | 22.3% | +4.5 p.p. | | **Adjusted Net Income** | $138.4 | $109.2 | +26.6% | | Adjusted Diluted EPS | $0.94 | $0.74 | +27.0% | - The company achieved strong cash flow, with operating cash flow reaching **$215.0 million**, compared to $88.5 million in 2022[6](index=6&type=chunk) - Net leverage was significantly reduced, ending the year at **1.6x**, a decrease of 1.2x from the end of 2022[6](index=6&type=chunk) [Management Commentary and Outlook](index=2&type=section&id=Management%20Commentary%20and%20Outlook) [Management Commentary](index=2&type=section&id=Management%20Commentary) CEO Ramey Jackson attributed record 2023 results to strong execution and demand, highlighting debt refinancing, new facilities, cloud migration, and reduced net leverage - CEO Ramey Jackson highlighted key 2023 accomplishments: - Paid down and refinanced the term loan - Opened an Atlanta software center and a manufacturing facility in Poland - Migrated the Nokē cloud provider to Amazon Web Services[4](index=4&type=chunk) [2024 Financial Outlook](index=2&type=section&id=2024%20Financial%20Outlook) Janus initiated FY24 guidance, projecting revenues of $1.092 billion to $1.125 billion and Adjusted EBITDA of $286 million to $310 million, with ~4% YoY growth at midpoint Full Year 2024 Guidance | Metric | Guidance Range | Midpoint YoY Growth | | :--- | :--- | :--- | | **Revenue** | $1.092B - $1.125B | +4.0% | | **Adjusted EBITDA** | $286M - $310M | +4.3% | [Long-Term Financial Targets](index=2&type=section&id=Reaffirms%20Long%20Term%20Financial%20Targets) The company reaffirmed long-term financial targets: 4-6% organic revenue growth, 25-27% Adjusted EBITDA margins, 75-100% free cash flow conversion, and 2.0x-3.0x net leverage - The company's long-term financial goals are: - **Annual Organic Revenue Growth:** 4% to 6% - **Adjusted EBITDA Margin:** 25% to 27% - **Free Cash Flow Conversion:** 75% - 100% of adjusted net income - **Net Leverage:** 2.0x to 3.0x[8](index=8&type=chunk)[13](index=13&type=chunk) [Capital Allocation](index=3&type=section&id=Capital%20Allocation) [Share Repurchase Program](index=3&type=section&id=Share%20Repurchase%20Program) Janus announced an inaugural share repurchase program, authorized for up to $100 million of common stock, with no expiration and funded by cash and future free cash flow - The Board of Directors has authorized a new share repurchase program for up to **$100 million** of its common stock[9](index=9&type=chunk) - The program has no expiration date and will be funded by cash on hand and expected future free cash flow[9](index=9&type=chunk)[10](index=10&type=chunk) [Financial Statements and Reconciliations](index=6&type=section&id=Financial%20Statements%20and%20Reconciliations) [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) FY23 total revenues increased to $1,066.4 million, gross profit to $449.7 million, income from operations to $245.7 million, and net income rose 26% to $135.7 million Full Year 2023 vs. 2022 Statement of Operations (in millions) | Line Item | FY 2023 ($M) | FY 2022 ($M) | Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $1,066.4 | $1,019.5 | +4.6% | | **Gross Profit** | $449.7 | $364.9 | +23.2% | | **Income from Operations** | $245.7 | $187.5 | +31.0% | | **Net Income** | $135.7 | $107.7 | +26.0% | | **Diluted EPS** | $0.92 | $0.73 | +26.0% | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) As of December 30, 2023, total assets reached $1,350.0 million, cash doubled to $171.7 million, total liabilities decreased, and stockholders' equity grew to $519.6 million Balance Sheet Highlights (in millions) | Account | Dec 30, 2023 ($M) | Dec 31, 2022 ($M) | | :--- | :--- | :--- | | **Cash** | $171.7 | $78.4 | | **Total Current Assets** | $463.1 | $363.2 | | **Total Assets** | $1,350.0 | $1,270.6 | | **Long-term Debt, net** | $607.7 | $699.9 | | **Total Liabilities** | $830.4 | $895.3 | | **Total Stockholders' Equity** | $519.6 | $375.3 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) FY23 net cash from operating activities surged to $215.0 million, investing activities used $19.9 million, financing activities used $102.4 million, increasing the cash balance to $171.7 million Full Year 2023 vs. 2022 Cash Flows (in millions) | Cash Flow Activity | FY 2023 ($M) | FY 2022 ($M) | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $215.0 | $88.5 | | **Net Cash Used in Investing Activities** | $(19.9) | $(8.7) | | **Net Cash Used in Financing Activities** | $(102.4) | $(14.7) | | **Net Increase in Cash** | $93.3 | $65.2 | | **Cash, End of Year** | $171.7 | $78.4 | [Revenue by Sales Channel](index=9&type=section&id=Revenue%20by%20Sales%20Channel) In 2023, total Self-Storage revenue grew 13.2% to $729.8 million, driven by New Construction, while Commercial and Other declined 10.2% to $336.6 million Full Year 2023 Revenue by Sales Channel (in millions) | Sales Channel | FY 2023 Revenue ($M) | FY 2022 Revenue ($M) | YoY Growth | | :--- | :--- | :--- | :--- | | New Construction - Self Storage | $394.9 | $323.4 | +22.1% | | R3 - Self Storage | $334.9 | $321.1 | +4.3% | | **Total Self Storage** | **$729.8** | **$644.5** | **+13.2%** | | **Commercial and Other** | **$336.6** | **$375.0** | **-10.2%** | | **Total Revenue** | **$1,066.4** | **$1,019.5** | **+4.6%** | [Non-GAAP Reconciliations](index=10&type=section&id=Non-GAAP%20Reconciliations) The company provides reconciliations for non-GAAP measures like Adjusted EBITDA, Adjusted Net Income, Adjusted EPS, and Free Cash Flow Conversion to their GAAP equivalents [Reconciliation to Adjusted EBITDA](index=10&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA) FY23 Net Income of $135.7 million was reconciled to Adjusted EBITDA of $285.6 million, with major adjustments for interest, taxes, depreciation, amortization, and debt extinguishment loss FY 2023 Reconciliation of Net Income to Adjusted EBITDA (in millions) | Line Item | FY 2023 ($M) | | :--- | :--- | | **Net Income** | **$135.7** | | Interest expense | $60.0 | | Income taxes | $47.1 | | Depreciation | $9.3 | | Amortization | $29.8 | | Loss on extinguishment of debt | $3.9 | | Other adjustments | $(0.2) | | **Adjusted EBITDA** | **$285.6** | [Reconciliation to Non-GAAP Adjusted Net Income](index=11&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Non-GAAP%20Adjusted%20Net%20Income) FY23 GAAP Net Income of $135.7 million was adjusted to Non-GAAP Adjusted Net Income of $138.4 million by adding pre-tax non-GAAP items and subtracting their tax effect FY 2023 Reconciliation to Non-GAAP Adjusted Net Income (in millions) | Line Item | FY 2023 ($M) | | :--- | :--- | | **Net Income** | **$135.7** | | Net Income Adjustments (pre-tax) | $3.7 | | Tax Effect on Adjustments | $(1.0) | | **Non-GAAP Adjusted Net Income** | **$138.4** | [Non-GAAP Adjusted EPS](index=11&type=section&id=Non-GAAP%20Adjusted%20EPS) FY23 GAAP Diluted EPS was $0.92, adjusted to Non-GAAP Diluted EPS of $0.94, calculated using Non-GAAP Adjusted Net Income of $138.4 million and 146.9 million shares FY 2023 GAAP vs. Non-GAAP EPS | Metric | FY 2023 (USD) | FY 2022 (USD) | | :--- | :--- | :--- | | **GAAP Diluted EPS** | $0.92 | $0.73 | | **Non-GAAP Adjusted Diluted EPS** | $0.94 | $0.74 | [Non-GAAP Free Cash Flow Conversion](index=12&type=section&id=Non-GAAP%20Free%20Cash%20Flow%20Conversion) FY23 free cash flow was $196.0 million (operating cash flow $215.0 million less $19.0 million capex), resulting in 142% free cash flow conversion of Non-GAAP Adjusted Net Income, a significant improvement from 73% in 2022 FY 2023 Free Cash Flow Conversion (in millions) | Metric | FY 2023 ($M) | FY 2022 ($M) | | :--- | :--- | :--- | | Cash flow from operating activities | $215.0 | $88.5 | | Less: capital expenditure | $(19.0) | $(8.8) | | **Free cash flow** | **$196.0** | **$79.7** | | Non-GAAP Adjusted Net Income | $138.4 | $109.2 | | **Free cash flow conversion** | **142%** | **73%** |

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission file number 001-40456 ________________________ JANUS INTERNATIONAL GROUP, INC. (Exact name of r ...

Financial Data and Key Metrics Changes - The company reported consolidated revenue of $280.1 million for Q3 2023, an increase of approximately 6.7% compared to the same period last year, driven primarily by new construction which was up 40.3% [100][106] - Adjusted net income for Q3 2023 was $39 million, reflecting a 20.3% increase from Q3 2022, with adjusted diluted earnings per share rising to $0.27 from $0.22 [12][100] - Adjusted EBITDA for the quarter was $76.2 million, up 20.4% year-over-year, resulting in an adjusted EBITDA margin of 27.2%, an improvement of 310 basis points [84][130] Business Line Data and Key Metrics Changes - The R3 segment experienced a 1.9% decline in Q3 2023, primarily due to project timing and a strong Q3 2022, but year-to-date, R3 is up 9.6% [11] - New construction was the primary driver of revenue growth, significantly outperforming other segments [100][106] - Commercial and other revenues declined by 11.1% year-over-year, attributed to difficult comparisons with a particularly strong Q3 2022 [100][104] Market Data and Key Metrics Changes - Self-storage occupancy rates remain above mid-cycle levels, indicating strong demand for new capacity from facility owners [5] - The company noted that the fundamentals driving customer investment decisions remain strong despite economic uncertainties [5][81] Company Strategy and Development Direction - The company is focused on maintaining a secure balance sheet while preserving capital for potential M&A opportunities [8] - The strategic emphasis on M&A is highlighted, with management indicating a willingness to leverage up for significant strategic deals [20][112] - The company is expanding its production capacity in Europe and the West Coast to support growth and enhance its suite of offerings [89] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong backlog and visibility into end markets, raising the full-year 2023 outlook for revenue and adjusted EBITDA [106][90] - The company anticipates continued growth and margin improvement into 2024, consistent with its long-term objectives [90] - Management acknowledged the challenges posed by inflation, particularly in steel prices, but remains optimistic about maintaining margins [55][130] Other Important Information - The company achieved a free cash flow conversion of 117% of adjusted net income over the past 12 months, indicating strong cash generation capabilities [8][105] - The net leverage ratio improved to 1.8 times net debt to adjusted trailing 12-month EBITDA, down from 3.3 times at the end of 2022 [13][101] Q&A Session Summary Question: How is the backlog trending and what is the pipeline for 2024? - Management has not provided specific 2024 guidance but indicated that the backlog remains strong for both new construction and R3 [18][37] Question: What are the dynamics in the new construction market? - Management noted that new construction is a long-term game, and while there may be fluctuations, the overall market remains resilient [42][81] Question: How is the competitive landscape for Nok evolving? - Management highlighted that new entrants are significantly behind in technology and integration, maintaining a strong competitive position [72][130] Question: What is the outlook for inflation and potential pricing actions? - Management indicated that while steel prices have been volatile, they are currently aligned with pricing strategies, and they will monitor costs closely [55][128]

| --- | --- | |-------|-------| | | | | | | Certain statements in this communication, including the estimated guidance provided under "2023 Financial Guidance" 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 sta ...

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]

Financial Data and Key Metrics Changes - The company reported consolidated revenues of $251.9 million, an increase of 9.8% compared to the prior year quarter [31] - Adjusted EBITDA was $61.2 million, up 37% year-over-year, resulting in an adjusted EBITDA margin of 24.3%, an improvement of 480 basis points [27][50] - Free cash flow was approximately $44.2 million, with a trailing 12-month free cash flow conversion of 88% of adjusted net income [33][46] - Net leverage decreased to 2.4 times net debt to trailing 12-month adjusted EBITDA, down from 2.8 times at the end of 2022 [28][78] Business Line Data and Key Metrics Changes - The R3 segment led revenue growth, increasing by 26.9% year-over-year, while new construction and commercial segments saw low-single digit increases of around 2% to 3% [31][45] - The company continues to see elongation in construction times due to delays, with growth in the commercial segment normalizing compared to a strong first quarter of 2022 [32][49] Market Data and Key Metrics Changes - The self-storage market remains strong, with high demand and robust business fundamentals driving investment in facilities [24][42] - The company is experiencing strong momentum in both new construction and R3 segments, with a solid backlog and visibility into future demand [56][88] Company Strategy and Development Direction - The company aims to expand its industry-leading positions, grow Nok adoption, drive efficiencies, and execute value-accretive M&A [29] - The focus remains on maintaining a robust balance sheet while being flexible to respond to growth opportunities [46][48] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand environment, indicating that the fundamentals in end markets are largely insulated from broader macroeconomic uncertainties [42][53] - The company raised its full-year 2023 revenue outlook to a range of $1.06 billion to $1.08 billion, reflecting a 5% increase at the midpoint compared to 2022 [34] Other Important Information - The company paid down $50 million of its first lien term loan facility, which is expected to help offset rising interest rates [51] - The credit rating was upgraded by Moody's, reflecting the company's strong financial performance [51] Q&A Session Summary Question: What is the visibility of the order pipeline? - Management confirmed that the pipeline backlog remains robust, with strong momentum in both new construction and R3 segments [56] Question: How is the traction for Nok among larger REITs? - Management noted that the entry of competitors validates their market position, and they are pleased with the progress in customer adoption [57][58] Question: What are the expectations for margin progression in the first and second halves? - Management indicated that while the second half is expected to be stronger, the first quarter exceeded expectations, leading to a more balanced outlook for the year [67][79] Question: How does the company view capital allocation between M&A and stock buybacks? - Management stated that they are focused on maintaining flexibility in capital allocation, considering options for debt repayment, buybacks, and M&A opportunities [98][99] Question: What is the outlook for EBITDA margins for the full year? - Management expects EBITDA margins to improve, with a target range of 25% to 27% over the next several years [79]

| --- | --- | |-------|-------| | | | | | | | | | 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 ...