The AZEK Company(AZEK) - 2024 Q2 - Quarterly Results

Financial Performance - Consolidated Net Sales for Q2 2024 expected to be $418.4 million, an 11% year-over-year growth, with Residential Segment Net Sales at $402.5 million, representing an 18% increase [2]. - For the first half of fiscal 2024, consolidated net sales are projected at $658.9 million, also an 11% year-over-year growth, with net income estimated between $74 to $75 million and an adjusted EBITDA range of $167 to $169 million [2]. - The fiscal 2024 net sales outlook has been raised to a range of $1.407 to $1.438 billion, with adjusted EBITDA expected between $364 to $380 million [3]. - The Residential segment is expected to achieve 9% to 12% year-over-year growth in net sales for fiscal 2024 [12]. - Adjusted Net Income for the six months ended March 31, 2024, is estimated to be between $74,000 and $75,400 thousand [29]. - Adjusted EBITDA for the same period is projected to be between $166,690 and $168,690 thousand, with an Adjusted EBITDA Margin of approximately 25.3% to 25.6% [29][30]. - Net sales for the three months ended March 31, 2024, reached $418,408 thousand, an increase from $377,692 thousand in the same period of 2023 [32]. - Adjusted Net Sales excluding the impact from the divested Vycom business for the six months ended March 31, 2024, is $655,534 thousand compared to $552,970 thousand in the same period of 2023 [32]. - The estimated Net Profit Margin for the six months ended March 31, 2024, is between 11.2% and 11.4% [30]. Shareholder Returns - The company returned $25 million to shareholders through share repurchases in the fiscal second quarter [5]. Capital Expenditures and Investments - The company anticipates capital expenditures for fiscal year 2024 to be in the range of $85 to $95 million [12]. - Free Cash Flow is defined as net cash provided by operating activities less capital expenditures, although specific figures were not disclosed in the provided content [25]. Adjusted EBITDA and Margins - The adjusted EBITDA margin for fiscal 2024 is expected to be between 25.8% to 26.4%, an increase from previous estimates [12]. - The company has not reconciled Adjusted EBITDA or Adjusted EBITDA Margin guidance to GAAP measures due to uncertainties regarding reconciling items [33]. - Segment Adjusted EBITDA and Segment Adjusted EBITDA Margin are used for resource allocation and performance assessment, but may differ from overall Adjusted EBITDA calculations [27]. Product Innovations - New product innovations, including the TimberTech Advanced PVC Vintage Collection, have set new industry standards and received multiple awards for sustainability [5]. Inventory and Financial Restatement - The company identified an inventory discrepancy that will lead to a restatement of financial results for prior fiscal years, but this will not impact net sales or business operations [14][16]. Future Growth Expectations - AZEK expects to continue driving above-market growth in the second half of fiscal 2024 and into fiscal 2025, supported by ongoing growth initiatives and market expansion [11].