Delivered 50.2% revenue growth, including 35.7%
organic improvement
Delivered over 35% increase Adjusted EBITDA
Sequential Adjusted EBITDA margin improvement
of over 100 basis points from Q4 2021
Raises full-year 2022 revenue and Adjusted
EBITDA guidance
Janus International Group, Inc. (NYSE: JBI) (“Janus” or the
“Company”), a leading provider of cutting-edge access control
technologies and building product solutions for the self-storage
and other commercial and industrial sectors, today announced
financial results for the first quarter ended April 2, 2022.
First Quarter 2022 Highlights
- Revenues of $229.5 million, a 50.2% increase compared to $152.8
million for the first quarter of 2021, driven primarily by strong
performance across all sales channels, including Restore, Rebuild
& Replace (“R3”) up 56.6%, Commercial and Other up 51.1%, and
New Construction up 44.3%, along with a $22.1 million contribution
from the 2021 acquisitions of DBCI and ACT.
- Adjusted EBITDA (defined as net income plus the corresponding
add-backs shown in the Adjusted EBITDA reconciliation tables below)
of $44.7 million, a 37.0% increase compared to $32.6 million for
the first quarter of 2021, driven by increased revenue from all
sales channels, partially offset by higher cost of sales and
general and administrative expenses. Adjusted EBITDA as a
percentage of revenues was 19.5%, a decrease of approximately 175
basis points from the prior year period due primarily to higher
costs impacting raw material, labor and logistics in advance of
commercial actions and productivity initiatives taking full effect,
as well as incremental costs associated with being a public
company. However, as a result of volume growth, productivity
initiatives and commercial actions, Adjusted EBITDA margins
increased by more than 100 basis points over the fourth quarter of
2021.
- Net income was $19.7 million, or $0.13 per diluted share,
compared to $14.7 million, or $0.22 per diluted share in the first
quarter of 2021.
- Adjusted Net Income (defined as Net Income plus the
corresponding tax-adjusted add-backs shown in the Adjusted Net
Income reconciliation tables below) of $20.1 million, up 22.8%
compared to $16.4 million in the first quarter of 2021. Adjusted
Net Income per diluted share was $0.14, compared to $0.25 per
diluted share in the prior year quarter. The decrease in Adjusted
Net Income per diluted share versus the prior year quarter was due
to the increase in the weighted average number of outstanding
shares as a result of the business combination in June of 2021,
partially offset by higher Adjusted Net Income.
- Operating cash flow of $24.8 million compared to $25.6 million
in the first quarter of 2021. Free cash flow was $21.9 million
compared to $23.2 million in the first quarter of 2021, reflecting
continued strong free cash flow conversion of 109% of Adjusted Net
Income, despite the continued investments in working capital to
support the ongoing growth of the business.
Ramey Jackson, Chief Executive Officer, stated, “Our strong
results in the first quarter set the tone for what we expect will
be an exciting year for Janus. We generated substantial
year-over-year revenue growth from all of our sales channels, led
again by particular strength in our R3 and Commercial and Other
segments. The actions we took last year to combat inflationary
pressures on our business are showing results, as demonstrated by
an over 100 basis point sequential improvement in Adjusted EBITDA
margin.”
Mr. Jackson continued, “2022 marks our 20th year in business,
and I couldn’t be prouder of the team or more excited about the
strong fundamentals we see in the self-storage industry today. We
have achieved a great deal in the three quarters since becoming a
public company, and we look to build on that momentum even as we
navigate the macro challenges. Continuing to be proactive in
managing inflationary pressures through cost savings initiatives
and additional commercial actions is a major part of that success.
Given the strong first quarter results, our expectations for the
balance of the year, and a focus on driving continued margin
improvement, we are pleased to raise our full year 2022
outlook.”
2022 Financial Outlook:
Based on the Company’s current business outlook, Janus is
raising its full-year 2022 guidance as follows:
- Revenue in a range of $890 million to $910 million, up from the
previous range of $845 million to $865 million. The new range
represents a 20.0% increase at the midpoint as compared to 2021
levels.
- Adjusted EBITDA in a range of $193 million to $200 million, up
from the previous range of $183 million to $190 million. The new
range represents a 32.6% increase at the midpoint as compared to
2021 levels.
About Janus International Group
Janus International Group, Inc. (www.JanusIntl.com) is a leading
global manufacturer and supplier of turn-key self-storage,
commercial and industrial building solutions, including: roll-up
and swing doors, hallway systems, re-locatable storage units and
facility and door automation technologies. The Janus team operates
out of several U.S. locations and six locations
internationally.
Conference Call and Webcast
The Company will host a conference call and webcast to review
first quarter results, discuss recent events and conduct a
question-and-answer session on Tuesday, May 17, 2022, at 10:00 a.m.
Eastern time. The live webcast and archived replay of the
conference call can be accessed on the Investors section of the
Company’s website at www.janusintl.com. For those unable to access
the webcast, the conference call will be accessible domestically or
internationally, by dialing 1-877-407-0789 or 1-201-689-8562,
respectively. Upon dialing in, please request to join the Janus
International Group First Quarter 2022 Earnings Conference Call. To
access the replay of the call, dial 1-844-512-2921 (Domestic) and
1- 412-317-6671 (International) with pass code 13729807.
Forward Looking Statements
Certain statements in this communication, including the
estimated guidance provided under “2022 Financial 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 statements regarding Janus’s positioning in the
industry to strengthen its pipeline and deliver on its objectives
and Janus’s belief regarding the demand outlook for Janus’s
products and the strength of the industrials markets. When used in
this communication, words such as “may,” “should,” “could,”
“would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,”
“continue,” or the negative of such terms or other similar
expressions, as they relate to the management team, identify
forward-looking statements. Such forward-looking statements are
based on the current beliefs of Janus’s management, based on
currently available information, as to the outcome and timing of
future events, and involve factors, risks, and uncertainties that
may cause actual results in future periods to differ materially
from such statements.
In addition to factors previously disclosed in Janus’s reports
filed with the SEC and those identified elsewhere in this
communication, the following factors, among others, could cause
actual results to differ materially from forward-looking statements
or historical performance: (i) risks of the self-storage industry;
(ii) the highly competitive nature of the self-storage industry and
Janus’s ability to compete therein; and (iii) the risk that the
demand outlook for Janus’s products may not be as strong as
anticipated.
There can be no assurance that the events, results, trends or
guidance regarding financial outlook identified in these
forward-looking statements will occur or be achieved.
Forward-looking statements speak only as of the date they are made,
and Janus is not under any obligation and expressly disclaims any
obligation, to update, alter or otherwise revise any
forward-looking statement, whether as a result of new information,
future events or otherwise, except as required by law. This
communication is not intended to be all-inclusive or to contain all
the information that a person may desire in considering an
investment in Janus and is not intended to form the basis of an
investment decision in Janus. All subsequent written and oral
forward-looking statements concerning Janus or other matters and
attributable to Janus or any person acting on its behalf are
expressly qualified in their entirety by the cautionary statements
above and under the heading “Risk Factors” in Janus’s most recently
filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q,
as updated from time to time in amendments and its subsequent
filings with the SEC.
Non-GAAP Financial Measures
Janus uses measures of performance that are not required by or
presented in accordance with GAAP in the United States. Non-GAAP
financial performance measures are used to supplement the financial
information presented on a GAAP basis. These non-GAAP financial
measures should not be considered in isolation or as a substitute
for the relevant GAAP measures and should be read in conjunction
with information presented on a GAAP basis.
Adjusted EBITDA, Adjusted Net Income, Adjusted Basic EPS, and
Adjusted Diluted EPS are non-GAAP financial measures used by Janus
to evaluate its operating performance, generate future operating
plans, and make strategic decisions, including those relating to
operating expenses and the allocation of internal resources.
Accordingly, Janus believes Adjusted EBITDA, Adjusted Net Income,
Adjusted Basic EPS, and Adjusted Diluted EPS provide useful
information to investors and others in understanding and evaluating
Janus’s operating results in the same manner as its management and
board of directors and in comparison with Janus’s peer group
companies. In addition, Adjusted EBITDA, Adjusted Net Income,
Adjusted Basic EPS, and Adjusted Diluted EPS provide useful
measures for period-to-period comparisons of Janus’s business, as
they remove the effect of certain non-recurring events and other
non-recurring charges, such as acquisitions, and certain variable
or non-recurring charges. Adjusted EBITDA is defined as net income
excluding interest expense, income taxes, depreciation expense,
amortization, and other non-operational, non-recurring items.
Adjusted Net Income is defined as net income plus the corresponding
tax-adjusted add-backs shown in the Adjusted EBITDA reconciliation.
Adjusted Basic earnings (income) per share (EPS) is computed by
taking Adjusted Net Income divided by the weighted average number
of shares of common stock outstanding during the period. Adjusted
Diluted earnings (income) per share (EPS) is computed by dividing
Adjusted Net Income by the weighted average number of common shares
outstanding plus the effect of dilutive potential common shares
outstanding during the period using the treasury stock method.
Dilutive potential common shares include stock purchase warrants
and contingently issuable shares attributable to the earn-out
consideration.
Adjusted EBITDA, Adjusted Net Income, Adjusted Basic EPS, and
Adjusted Diluted EPS should not be considered in isolation of, or
as an alternative to, measures prepared in accordance with GAAP.
There are a number of limitations related to the use of Adjusted
EBITDA, Adjusted Net Income, Adjusted Basic EPS, and Adjusted
Diluted EPS rather than net income (loss), which is the nearest
GAAP equivalent of Adjusted EBITDA and Adjusted Net Income, or
Basic EPS and Diluted EPS, which is the nearest equivalent to
Adjusted Basic EPS and Adjusted Diluted EPS. These limitations
include that the non-GAAP financial measures: (i) exclude
depreciation and amortization, and although these are non-cash
expenses, the assets being depreciated may be replaced in the
future; (ii) do not reflect interest expense, or the cash
requirements necessary to service interest on debt, which reduces
cash available; (iii) do not reflect the provision for or benefit
from income tax that may result in payments that reduce cash
available; (iv) exclude non-recurring items (i.e., the
extinguishment of debt); and (v) may not be comparable to similar
non-GAAP financial measures used by other companies, because the
expenses and other items that Janus excludes in the calculation of
these non-GAAP financial measures may differ from the expenses and
other items, if any, that other companies may exclude from these
non-GAAP financial measures when they report their operating
results. Because of these limitations, these non-GAAP financial
measures should be considered along with other operating and
financial performance measures presented in accordance with
GAAP.
Janus International Group,
Inc.
Consolidated Statements of
Operations and Comprehensive Income (Loss)
(In thousands)
Three Months Ended
April 2, 2022
March 27, 2021
REVENUE
Sales of product
$
197,306
$
121,696
Sales of services
32,214
31,128
Total revenue
229,520
152,824
Cost of Sales
152,950
99,531
GROSS PROFIT
76,570
53,293
OPERATING EXPENSE
Selling and marketing
13,349
9,458
General and administrative
28,106
19,586
Operating Expenses
41,455
29,044
INCOME FROM OPERATIONS
35,115
24,249
Interest expense
(8,775
)
(8,126
)
Other expense
(28
)
(1,559
)
Other Expense, Net
(8,803
)
(9,685
)
INCOME BEFORE TAXES
26,311
14,564
Provision for Income Taxes
6,607
(155
)
NET INCOME
19,704
14,719
Other Comprehensive Income
(Loss)
(516
)
311
COMPREHENSIVE INCOME
19,188
15,030
Net income attributable to common
stockholders
19,704
14,719
Weighted-average shares outstanding,
basic and diluted
Basic
146,561,717
66,145,633
Diluted
146,832,889
66,145,633
Net income per share, basic and
diluted
Basic
$
0.13
$
0.22
Diluted
$
0.13
$
0.22
Janus International Group,
Inc.
Consolidated Balance
Sheets
(In thousands)
April 2,
January 1,
2022
2022
ASSETS
Current Assets
Cash and cash equivalents
$
26,626
$
13,192
Accounts receivable, less allowance for
credit losses; $5,733 and $5,449, at April 2, 2022 and January 1,
2022, respectively
118,758
107,372
Costs and estimated earnings in excess of
billing on uncompleted contracts
30,286
23,121
Inventory, net
64,226
56,596
Prepaid expenses
12,255
9,843
Other current assets
2,922
4,057
Total current assets
$
255,073
$
214,181
Right-of-use assets, net
41,518
—
Property and equipment, net
42,584
41,607
Customer relationships, net
305,080
312,199
Tradename and trademarks
107,826
107,980
Other intangibles, net
15,495
15,861
Goodwill
369,279
369,286
Deferred tax asset, net
59,998
58,915
Other assets
1,855
1,973
Total assets
$
1,198,708
$
1,122,002
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current Liabilities
Accounts payable
$
65,336
$
54,961
Billing in excess of costs and estimated
earnings on uncompleted contracts
28,053
23,207
Current maturities of long-term debt
8,215
8,067
Other accrued expenses
65,867
54,111
Total current liabilities
$
167,471
$
140,346
Line of credit
—
6,369
Long-term debt, net
703,022
703,718
Deferred tax liability, net
1,804
749
Other long-term liabilities
39,260
2,533
Total liabilities
$
911,557
$
853,715
STOCKHOLDERS’ EQUITY
Common Stock, 825,000,000 shares
authorized, $.0001 par value, 146,561,717 and 146,561,717 shares
issued and outstanding at April 2, 2022 and January 1, 2022,
respectively
15
15
Additional paid-in capital
278,399
277,799
Accumulated other comprehensive loss
(1,465
)
(949
)
Accumulated surplus (deficit)
10,202
(8,578
)
Total stockholders’ equity
$
287,151
$
268,287
Total liabilities and stockholders’
equity
$
1,198,708
$
1,122,002
Janus International Group,
Inc.
Consolidated Statements of
Cash Flows
(In thousands)
Three Months Ended
April 2, 2022
March 27, 2021
(Unaudited)
(Unaudited)
Cash Flows Provided By Operating
Activities
Net income
$
19,704
$
14,719
Adjustments to reconcile net income to
net cash provided by operating activities
Depreciation of property and equipment
1,857
1,473
Reduction in carrying amount of
right-of-use assets
1,319
—
Intangible amortization
7,225
6,832
Deferred finance fee amortization
912
754
Share based compensation
600
52
Loss on extinguishment of debt
—
1,421
Loss on sale of assets
—
61
Loss on abandonment of PP&E
103
—
Undistributed earnings of affiliate
(22
)
(40
)
Deferred income taxes
—
(768
)
Changes in operating assets and
liabilities
Accounts receivable
(11,752
)
837
Costs and estimated earnings in excess of
billings and billings in excess of costs and estimated earnings on
uncompleted contracts
(7,165
)
(920
)
Prepaid expenses and other current
assets
(1,285
)
20
Inventory
(7,630
)
(4,942
)
Accounts payable
10,375
5,641
Other accrued expenses
9,875
1,869
Other assets and long-term liabilities
661
(1,449
)
Net Cash Provided By Operating
Activities
$
24,777
$
25,560
Cash Flows Used In Investing
Activities
Proceeds from sale of equipment
—
55
Purchases of property and equipment
(2,880
)
(2,363
)
Cash paid for acquisitions, net of cash
acquired
—
(1,565
)
Net Cash Used In Investing
Activities
$
(2,880
)
$
(3,873
)
Cash Flows Used In Financing
Activities
Net repayments on line of credit
(6,369
)
—
Distributions to Janus Midco LLC
unitholders
—
(96
)
Principal payments on long-term debt
(2,017
)
(1,631
)
Principal payments under financing lease
obligations
(19
)
—
Payments for deferred financing fees
—
(765
)
Cash Used In Financing
Activities
$
(8,405
)
$
(2,492
)
Effect of exchange rate changes on cash
and cash equivalents
(58
)
54
Net Increase in Cash and Cash
Equivalents
$
13,434
$
19,249
Cash and Cash Equivalents, Beginning of
Period
13,192
45,255
Cash and Cash Equivalents, End of
Period
$
26,626
64,504
Supplemental Cash Flows
Information
Interest paid
$
6,096
$
11,292
Income taxes paid
$
370
$
321
Cash paid for operating leases
$
1,900
$
—
Right-of-use assets obtained in exchange
for operating lease obligations
$
42,202
$
—
Right-of-use assets obtained in exchange
for finance lease obligations
$
633
$
—
Deferred transaction costs related to
Juniper merger
$
—
$
8,032
Janus International Group,
Inc.
Reconciliation of Net Income
to Adjusted EBITDA
(In thousands)
Three Months Ended
Variance
April 2, 2022
March 27, 2021
$
%
Net Income
$
19,704
$
14,719
$
4,985
33.9
%
Interest Expense
8,775
8,126
649
8.0
%
Income Taxes
6,607
(155
)
6,762
(4362.6
)%
Depreciation of property and equipment
1,857
1,473
384
26.1
%
Amortization
7,225
6,832
393
5.8
%
EBITDA
$
44,168
$
30,995
$
13,173
42.5
%
Loss (gain) on extinguishment of
debt(1)
—
1,421
(1,421
)
(100.0
)%
COVID-19 related expenses(2)
109
198
(89
)
(44.9
)%
Facility relocation(3)
103
—
103
—
%
Acquisition Expense(4)
287
—
287
—
%
Adjusted EBITDA
$
44,667
$
32,614
$
12,053
37.0
%
(1)
Adjustment for loss on
extinguishment of debt regarding the write off of unamortized fees
and third-party fees as a result of the debt modification completed
in February 2021.
(2)
Expenses which are one-time and
non-recurring related to the COVID-19 pandemic.
(3)
Expenses related to the facility
relocation for ASTA.
(4)
Expenses related to the
transition services agreement for the DBCI acquisition which closed
August 18, 2021.
Janus International Group,
Inc.
Reconciliation of Net Income
to Non-GAAP Adjusted Net Income
(In thousands)
Three Months Ended
April 2, 2022
March 27, 2021
Net Income
$
19,704
$
14,719
Net Income Adjustments(1)
499
1,619
Tax Effect Non-GAAP on Net Income
Adjustments(2)
(125
)
17
Non-GAAP Adjusted Net Income
$
20,078
$
16,355
(1)
Refer to SEC public filings for
detailed breakout. This amount reconciles to the EBITDA
Adjustments/Non-GAAP Adjustments
(2)
Tax effected for the net income
adjustments. Used effective tax rates 25.1% and (1.1)% for the
three months ended April 2, 2022 and March 27, 2021.
Janus International Group,
Inc.
Non-GAAP Adjusted EPS
(In thousands)
Three Months Ended
April 2, 2022
March 27, 2021
Numerator:
Non-GAAP Adjusted Net Income
$
20,078
$
16,355
Denominator:
Weighted average number of shares:
Basic
146,561,717
66,145,633
Adjustment for Restricted Stock Units
271,172
—
Diluted
146,832,889
66,145,633
Non-GAAP Adjusted Basic EPS
$
0.14
$
0.25
Non-GAAP Adjusted Diluted EPS
$
0.14
$
0.25
Janus International Group,
Inc.
Non-GAAP Free Cash Flow
Conversion
(In thousands)
Three Months Ended
April 2, 2022
March 27, 2021
Cash flow from operating
activities
$
24,776
$
25,560
Less capital expenditure
(2,880
)
(2,363
)
Free cash flow
$
21,896
$
23,197
Non-GAAP Adjusted Net Income
$
20,078
$
16,355
Free cash flow conversion of Non-GAAP
Adjusted Net Income
109
%
142
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220517005349/en/
Investor Contacts, Janus
John Rohlwing Vice President, Investor Relations & FP&A,
Janus International
Rodny Nacier / Dan Scott, ICR on behalf of Janus
IR@janusintl.com (770) 562-6399
Media Contacts, Janus
Bethany Morehouse Marketing Content Manager, Janus International
770-746-9576 Marketing@Janusintl.com
Jason Chudoba, ICR on behalf of Janus
Jason.Chudoba@ICRinc.com
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