Janus International (US:JBI)2024-10-29 10:56Financial Performance - Total revenue for Q3 2024 was $230.1 million, a 17.9% decrease from $280.1 million in Q3 2023, with self-storage revenues down 22.4% and commercial revenues down 7.8%[3] - Net income for Q3 2024 was $11.8 million, or $0.08 per diluted share, representing a 68.1% decrease compared to $37.0 million, or $0.25 per diluted share in Q3 2023[3] - Adjusted EBITDA for Q3 2024 was $43.1 million, a 43.4% decrease from $76.2 million in Q3 2023, with an adjusted EBITDA margin of 18.7%, down approximately 850 basis points year-over-year[5] - Gross profit for the three months ended September 28, 2024, was $91.2 million, down 23.5% from $119.1 million in the prior year[22] - Operating expenses for the three months ended September 28, 2024, were $61.7 million, an increase of 17.3% from $52.6 million in the prior year[22] - Net income for the nine months ended September 28, 2024, was $70.1 million, a decrease of 29.9% compared to $100.0 million for the same period in 2023[34] - Adjusted EBITDA for the nine months ended September 28, 2024, was $173.9 million, a decrease of 17.7% from $211.4 million in the same period of 2023[34] - The company reported a basic net income per share of $0.08 for the three months ended September 28, 2024, down from $0.25 in the same period of 2023[22] - Non-GAAP Adjusted Net Income for the nine months ended September 28, 2024, was $76.8 million, down from $102.6 million in the same period of 2023, representing a decline of 25.3%[36] - The Free Cash Flow for the nine months ended September 28, 2024, was $88.6 million, compared to $133.0 million for the same period in 2023, indicating a decrease of 33.5%[42] Shareholder Actions - The company repurchased 4.3 million shares for $45.5 million in Q3 2024, with $29.9 million remaining on its share repurchase authorization[6] Guidance and Projections - The company updated its full-year 2024 revenue guidance to a range of $910 million to $925 million and adjusted EBITDA guidance to a range of $195 million to $205 million[11] - The company has excluded a quantitative reconciliation of Adjusted EBITDA for its 2024 guidance due to the inherent uncertainty in predicting certain non-cash and nonrecurring expenses[35] Cost Management - A structural cost reduction plan is expected to generate annual pre-tax cost savings of approximately $8 million to $12 million, with one-time estimated pre-tax charges of $2 million to $4 million[9] Acquisitions and Contributions - The acquisition of TMC contributed $13.7 million to revenue in Q3 2024[3] - Cash paid for acquisitions was $59.4 million for the nine months ended September 28, 2024, compared to $1.0 million in the same period of 2023[28] Economic Environment - The company is facing headwinds from macroeconomic factors, including interest rate uncertainty and project delays, impacting demand across all sectors[10] Product Development - The launch of the Nokē Ion product has shown early positive results, contributing to the company's long-term profitability strategy[8] Balance Sheet and Leverage - Total current assets decreased to $375.3 million as of September 28, 2024, from $463.1 million as of December 30, 2023[25] - Total liabilities decreased to $768.4 million as of September 28, 2024, from $830.4 million as of December 30, 2023[25] - The long-term debt to net income ratio increased to 5.7x compared to 4.6x in Q4 2023, with a net leverage ratio of 2.0x, an increase of 0.4x from the previous quarter[6] - The Non-GAAP Net Leverage Ratio as of September 28, 2024, was 2.0, an increase from 1.6 as of December 30, 2023[44] - The company reported a trailing twelve-month Adjusted EBITDA of $248.2 million for the period ended September 28, 2024, down from $285.6 million for the period ended December 30, 2023[44] Cash Flow and Expenses - The company reported a net cash provided by operating activities of $102.6 million for the nine months ended September 28, 2024, down from $146.5 million in the previous year[28] - The company incurred a provision for expected losses on accounts receivable of $8.6 million for the nine months ended September 28, 2024, compared to a reversal of $0.7 million in the prior year[28] - Depreciation expense increased to $8.9 million for the nine months ended September 28, 2024, from $6.6 million in the same period of 2023, reflecting increased asset base[34] - The company reported a loss on extinguishment of debt of $1.7 million for the nine months ended September 28, 2024, down from a loss of $3.9 million in the previous year[34] Taxation - The effective tax rate for the three and nine months ended September 28, 2024, was 24.9%, compared to 25.2% for the same periods in 2023[36]