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

%

 

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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