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The AZEK Company(AZEK) - 2024 Q4 - Annual Results
AZEKThe AZEK Company(AZEK)2024-11-19 21:08

Financial Performance - Consolidated net sales for fiscal year 2024 increased by 5% year-over-year to 1.44billion,withresidentialsegmentnetsalesgrowing121.44 billion, with residential segment net sales growing 12% to 1.37 billion[3] - Net income for fiscal year 2024 rose 146% to 153million,withanetprofitmarginexpansionof600basispointsto10.6153 million, with a net profit margin expansion of 600 basis points to 10.6%[3] - Adjusted EBITDA for fiscal year 2024 increased by 34% to 379 million, with an adjusted EBITDA margin expansion of 560 basis points to 26.3%[3] - The company generated 224millionincashfromoperatingactivitiesand224 million in cash from operating activities and 147 million in free cash flow for fiscal year 2024[3] - Net income for the three months ended September 30, 2024, was 28,363,down27.828,363, down 27.8% from 39,231 in the same period of 2023[52] - Adjusted Net Income for the year ended September 30, 2024, was 176,929,000,comparedto176,929,000, compared to 106,139,000 in 2023, reflecting a 66.4% increase[66] - The company reported a net income of 153,379thousandfortheyearendedSeptember30,2024[76]FutureProjections−Forfiscalyear2025,consolidatednetsalesareexpectedtobebetween153,379 thousand for the year ended September 30, 2024[76] Future Projections - For fiscal year 2025, consolidated net sales are expected to be between 1.51 billion and 1.54billion,representingagrowthofapproximately51.54 billion, representing a growth of approximately 5% to 7% year-over-year[4] - The residential segment is projected to achieve net sales between 1.439 billion and 1.466billioninfiscalyear2025,indicatingagrowthofapproximately51.466 billion in fiscal year 2025, indicating a growth of approximately 5% to 7% year-over-year[30] - The company expects adjusted EBITDA for fiscal year 2025 to be in the range of 400 million to 415million,representingayear−over−yearincreaseof5415 million, representing a year-over-year increase of 5% to 9%[31] - For the first quarter of fiscal year 2025, consolidated net sales are anticipated to be between 260 million and 266million,reflectingan8266 million, reflecting an 8% to 11% year-over-year growth[32] - The company anticipates driving above-market growth in fiscal year 2025 and achieving double-digit growth over the long term[33] Cash Flow and Assets - As of September 30, 2024, total assets decreased to 2,167.7 million from 2,343.9millionasofSeptember30,2023,reflectingadeclineofapproximately7.42,343.9 million as of September 30, 2023, reflecting a decline of approximately 7.4%[49] - Current assets decreased to 471.4 million from 561.3million,areductionofabout16.0561.3 million, a reduction of about 16.0% year-over-year[49] - Total liabilities decreased to 810.8 million from 933.6million,representingadeclineofapproximately13.1933.6 million, representing a decline of approximately 13.1%[49] - The company reported a net cash position of 164.0 million in cash and cash equivalents, down from 278.3million[49]−NetcashprovidedbyoperatingactivitiesfortheyearendedSeptember30,2024,was278.3 million[49] - Net cash provided by operating activities for the year ended September 30, 2024, was 224,479, a decrease from 362,542in2023[54]−NetcashusedinfinancingactivitiesfortheyearendedSeptember30,2024,was362,542 in 2023[54] - Net cash used in financing activities for the year ended September 30, 2024, was (387,907), compared to (116,541)inthepreviousyear[54]−Cashandcashequivalentsattheendoftheperiodwere(116,541) in the previous year[54] - Cash and cash equivalents at the end of the period were 164,025, a decrease from 278,314atthebeginningoftheperiod[54]SegmentPerformance−NetsalesforthethreemonthsendedSeptember30,2024,were278,314 at the beginning of the period[54] Segment Performance - Net sales for the three months ended September 30, 2024, were 348,227, a decrease of 10.5% from 388,812inthesameperiodof2023[52]−GrossprofitforthethreemonthsendedSeptember30,2024,was388,812 in the same period of 2023[52] - Gross profit for the three months ended September 30, 2024, was 129,746, down from 145,293,representingadeclineof10.7145,293, representing a decline of 10.7%[52] - Operating income for the three months ended September 30, 2024, was 51,133, compared to 60,371intheprioryear,reflectingadecreaseof15.360,371 in the prior year, reflecting a decrease of 15.3%[52] - Segment Adjusted EBITDA for the Residential segment for the three months ended September 30, 2024, was 85,943, a decrease of 7.3% from 92,706intheprioryear[57]AdjustedMetrics−AdjustedEBITDAfortheyearendedSeptember30,2024,reached92,706 in the prior year[57] Adjusted Metrics - Adjusted EBITDA for the year ended September 30, 2024, reached 379,341,000, up 33.6% from 283,838,000in2023[62]−AdjustedGrossProfitforQ32024was283,838,000 in 2023[62] - Adjusted Gross Profit for Q3 2024 was 133,702,000, down 10.7% from 149,736,000 in Q3 2023[64] - Adjusted SG&A expenses for Q3 2024 were 65,539,000, a decrease from 70,517,000inQ32023[72]−AdjustedDilutedEPSforQ32024was70,517,000 in Q3 2023[72] - Adjusted Diluted EPS for Q3 2024 was 0.29, down from 0.33inQ32023[68]−TotaladjustmentsforQ32024amountedto0.33 in Q3 2023[68] - Total adjustments for Q3 2024 amounted to 63,391,000, representing 18.2% of total revenue[62] Sustainability and Operations - The AZEK Company is committed to increasing the use of recycled materials in its products, which are made from up to 85% recycled content[38] - The company has been recognized as one of America's Climate Leaders by USA Today, highlighting its commitment to sustainability[38] - AZEK's manufacturing and recycling facilities are located across multiple states, including Ohio, Pennsylvania, and Texas, enhancing its operational capacity[38] Stock and Financing Activities - AZEK repurchased approximately 1.4 million shares of its Class A common stock for a total of 67.5millionduringthequarter[26]−NetcashusedinfinancingactivitiesforthethreemonthsendedSeptember30,2024,was67.5 million during the quarter[26] - Net cash used in financing activities for the three months ended September 30, 2024, was (220,846) thousand, compared to (58,475)thousandinthesameperiodof2023[75]−Purchasesofproperty,plant,andequipmentfortheyearendedSeptember30,2024,were(58,475) thousand in the same period of 2023[75] - Purchases of property, plant, and equipment for the year ended September 30, 2024, were (77,147) thousand, down from (88,545)thousandin2023[75]InterestandDebt−InterestexpenseforQ32024was(88,545) thousand in 2023[75] Interest and Debt - Interest expense for Q3 2024 was 15,800,000, increasing from 8,812,000inQ32023[62]−NetdebtasofSeptember30,2024,was8,812,000 in Q3 2023[62] - Net debt as of September 30, 2024, was 365,110 thousand, calculated from gross debt of 529,135thousandminuscashandcashequivalentsof529,135 thousand minus cash and cash equivalents of 164,025 thousand[76]