Earnings call transcript Q2 2023

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Operator

Hello, and welcome to Janus International Second Quarter 2023 Earnings Conference Call. Currently, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the call over to your host, Mr. of and President Vice Rohlwing, Investor FP&A. Relations John you. Thank

You may Rohlwing. Mr. begin,

John Rohlwing

all and call. our operator, you, for thank conference Thank earnings you joining XXXX second quarter

hope in presentation in issued of earnings at this that seen janusintl.com. can you section support have morning. be of which found website we a Please note Investors We release posted also call, that the have this our our

latest based regarding on from today's Securities to results is anticipated. conference the current anticipated review contained and from update Exchange earnings These call the statements differ that company's reminder, could periodic forward-looking prospects. to future actual company's Commission, you a are those filings with release to company's we As materially statements important and we and and the differ include those are our expectations duty cause that actual encourage undertake and plans may results carefully. results may to no the note It factors Factors them. in

In net of will adjusted their margin, for release reconciliation measures filings EBITDA financial measures EBITDA, non-GAAP GAAP EPS. adjusted providing today, adjusted or addition, and certain most be and see our directly including adjusted a Please earnings we to comparable measures. these income non-GAAP discussing

continue your I'm provide our the call and Chief Ramey Officer, an a by and open outlook questions. up joined will of an today Wong, before discussion results operations update; and Financial will our Jackson, overview who business who with Chief for our Executive we Anselm give of financial our Officer,

over call to turn this At will point, I the Ramey.

Ramey Jackson

everyone. and good you, morning, John, Thank

another record resulting position to the us results in we performance established momentum to The outstanding of that accelerated the year financial year platform. across the quarter, second in start deliver

resilience as demand fundamentals long-term economic an bullish see our end and robust be the products solutions we for across markets against to our uncertain show continue Customer backdrop.

customers' behavior, and occupancy New the continues of demand Construction their shifts driven on side by and fundamental facility in owners, Specifically, high RX both from rates the business. the

us again for end achieve our possible. of employees positions and continued strong Our be backlog for once us gives without visibility like our thank into outlook markets would goals longer-term all I to confidence and growth the our to revenue our performance and margin. success the whom year to our and raise wouldn't

Now turning The and expansions. further fuel investment financial second our improvement, customers decisions needed quarter around results construction record in quarter. to solid gains happening some to throughout cash solid year-over-year specific through thoughts fundamentals operational by that are and industry and Janus' and included revenues, generation. add dramatic much new conversions the inherent the margin deleveraging both capacity

approximately ramp Our Noke market strong Smart XX% total representing with capabilities Entry and nearly continue ended our XXX,XXX we second our We quarter another quarter, units, as installed year-to-date. growth system had to penetration. expand

has Our its best by to industry future has the offer, Smart it and and of Access adoption use excited headlined by Solution, are the our accelerating Noke, both in represents we store. the

Other increase an highlights up million, while to year. to revenue XX.X%, RX last up same approximately as the Commercial the included of period for the growth delivered We was strength of financial consolidated and Now quarter. shifting Construction, New X.X% particular X.X% X.X% in $XXX.X compared lower. & This was

of year-over-year. adjusted higher an EBITDA improvement QX margin XXX of points than basis Our of came XX.X%, XXXX, represents approximately $XX adjusted which XX% EBITDA in million an

particularly of mix, our costs than in business, favorable commercial productivity quarter, labor many parts continue higher actions we the During logistics. and to and experience more initiatives, offset

continues further Our strong generate company flows, in which cash shortly. detail Anselm to will discuss

conversion our of cash income end flow the the quarter, free past of was the Over through net XX adjusted months, second XXX%.

also while on solid conversion remain maintaining position in focus to them. maintaining opportunities a to identify putting cash firepower us strong to value-enhancing balance over time, expect to a the we as M&A sheet, We respond robust

leverage the quarter our of our net management Board of leverage focus to trailing proud key team. and reduce debt and target at times. balance I were by putting our X.X net remains XX that basis quarter-end us a points, sheet, to we times of within another X at this our range able EBITDA Speaking XX-month net am to adjusted extremely X comfortably our

call. Anselm, Before talk I our to progress laid QX hand it longer-term XXXX like I'd in long objectives towards our earnings over about our out to

and, We value-accretive our platform these markets, are our by expanding efficiencies targets on appropriate, across customers, achieve growing driving end industry-leading position adoption executing M&A. our self-storage all pace in when Noke the to with

With longer-term to on this for our full X% year of growth. track to of organic range half target our first the stated achieve X% us growth respect goals, year top-line to revenue our puts

EBITDA quarter first XX% range target of for achieving and Our margins of well half positions us the the longer-term our XXXX, towards XX%. to

half of target XXXX our to achieve strong income year. of up in us flow adjusted Our cash conversion the conversion of sets first to net XX% XXX% the for to full free range

Our end markets remain strong and resilient.

our of continue to look stakeholders. create share long-term our and at ways capture to value additional position We leadership to leverage for all

will the for over updated call With to our turn and an outlook for full Anselm financials the the year. I overview that, of

Anselm Wong

everyone. Thanks, Ramey, and good morning,

prior-year X.X% quarter, the million second the $XXX.X of up compared revenue quarter. to In was

the Commercial up X.X% & and New the lower was XX.X%, and quarter. RX Construction versus while X.X% was was prior-year led up Other way

continued well by which diversity show We for sales a and quarter, channels. mix our to the good across our our be offerings evidenced to revenue stability three and continues balanced as from mix

diving Now channels. sales into deeper the

was many of from combined volume taken in New commercial overall actions well of of offset inflationary This which pressures came impact the XX.X% XXXX XXXX was growth. that and early improvement up on inputs, year-over-year. key result a Our as strength in quarter the our primarily as Construction,

our This quarter, we catch-up customers who permitting by experienced spending saw delays.

actions. retail adding RX our new impact focus to availability grew X.X% bolstered in helping the to the commercial demand, The offerings. on conversions segment which in idle continued and by meet capacity rapidly of additions brick-and-mortar of capacity the RX quarter, expansions, customers new growth Our in persistent form continues of and positive drive is our

and their the marketplace. upgrade for and to retrofit their in customers to continue facilities competitive customers our stay Additionally,

In quarter, Commercial a XXXX which difficult against of year-over-year a decline & up we resulted in comparisons to came particularly Other, X.X%. strong

we pace up and As the before, us which market of on steel, times share discussed to during our stocked pandemic, faster increase lead allowed we've take at advantage a than anticipated. quicker

a in product As were begun markets for have certain which to an high we at during normalize, all-time the seen shift pandemic. have lines, demand

Commercial broad well over as schools, continued gains see time. are products Other, margin a pharmacies, range Our of many in potential & others. as markets, improvement and We increased hotels, share in warehouses, used including end for

initiatives Noke Adjusted of investments year-ago to actions as combination continued of XX% growth, quarter. up solid million $XX.X EBITDA business was compared increases commercial cost the savings our demand, and including in labor, system. additional we offset help to in Smart continues for work scale to Entry The the

for Adjusted an the quarter from increase year-ago basis XX.X%, EBITDA margin the XXX was quarter. of roughly points

a overall New channel. Commercial outperformance As Construction higher and two The is and helped profile the our & drive higher margins sales than commercial New these in in similar relative RX the decline Construction in roughly versus our Other sales margin for reminder, margins. quarter channels produce

the from of with particularly really favorable projects, strong In nature highest-margin Construction timing a mix. contributions work addition, our along the certain in saw and some product quarter due New and in we of to RX

normalized to mix consistent outlook. time, expect margin to We our revert revenue over longer-term the more levels with

$X.XX $XX.X For to per Adjusted produced $X.XX earnings net second is from of diluted adjusted second compares we the XXXX. up of share XXXX, quarter income the million, XX.X% quarter. in year-ago which quarter

another solid generation. had We quarter cash flow of

XXX% approximately activities strong $XX.X and conversion trend and cash cash productivity flow free to representing to of operating million, adjusted of by net conversion from was flow Second our quarter trailing working free $XX.X adjusted volume net of cash cash free a income. flow, was adds million XX-month This driven growth, multi-year capital. income approximately of

the our in for have guidance. and savings half Europe remainder the West strong free growth solve Europe. times to providing cash for serve to and outlook long-term customers The XXX% incremental on flow on opportunities first cost position of expand for to Coast West and year to Brexit for In deliver lead target results conversion the additional months, of to our our and us and Coast the capacity XX% we growth on better the CapEx issues, production coming in

We metric. also strengthen continue to focus and on initiatives our improve working to capital

months we perspective, X.X sheet equivalents, EBITDA, and of to trailing balance $XXX.X times debt first million from the times debt, down end of the $XXX.X of and the at adjusted a quarter net total XXXX of X.X XX cash of ended leverage X.X times From quarter. end the at with a and million net

$XXX national plus of paydown leading refinancing supported by to we and paid million debt, down a term. contingent down bringing of seven-year of first-lien an quarter-end, include SOFR a a We additional points, to terminal upgrade. with to a $XX XXX was banks basis step ratings refinanced that on along the million. floating point facility our XX $XX diverse basis year-to-date the terms rate Subsequent in strongly The million syndicate of our

million is into spread credit million of has revolving that the from tightening was not lending the business, facility. also reflective credit ABL the entered strength facility from credit previous We $XXX of of a asset-backed despite upsized which the This markets. new the $XX facility, revolving existing changed in

times within and maintaining to times. X.X to we leverage target performance on X.X quickly Our demonstrates our our delever ability of long-term remain range focused our

turning of by backlog be $X.XX on markets, and current driven and midpoint to solid our adjusted again the to our X.X% billion, of growth. results, at our outlook. end revenue and the expect combination to pleased outlook primarily to Based XXXX year visibility year now a strong once organic actions Now, quarter second results, year-to-date to a our are full XXXX full We increase $X.XX in volume-related XXXX range EBITDA. for compared of commercial billion continued and revenue we raise

all reflect growth underlying fundamentals in three see We sales expect we XXXX channels. across the to strong

in full for year. our EBITDA the are year XXXX range $XXX.X raising be million, the at $XXX.X for XX.X% our results, increase XX.X% versus expectations to a EBITDA and million of to midpoint representing We adjusted margin the a

full expect solid of we over business the margin objectives margins results pursue long-term healthy reflect our EBITDA adjusted in of the XX% to several our range our a XX% we to years. year improvement next Overall, as in year deliver

remarks. to you. will call for turn Thank I closing now back the Ramey

Ramey Jackson

Great. Anselm. Thank again, you

strength our deliver us the and team entire results once that in our expectations. of end efforts quarter exceeded financial our helped markets for again focused the The

and relentless and generation, our cash innings we a margins, a model. revenues, to environment, entire strong continue business and options. focus strategic believe one thank Janus to should stakeholders. to maintaining strong of testament continued the of that long-term balance demand pipeline continue of We execution broad range for EBITDA for early Our resiliency solid, to flow we robust like all all a multi-year are affords as the a the I'd in value backlog remain us drive build solid again fortress their while our team sheet that once unwavering of

joining us. Thank you lines Operator, we again open can please. for Q&A, up now for the

Operator

you. Thank

question now Capital KeyBanc Instructions] with Hammond be will session. Markets. Please your We a [Operator comes question. Our Jeff from with conducting question-and-answer first proceed

Jeff Hammond

good guys. Hey, morning,

Ramey Jackson

Hey, Jeff.

Anselm Wong

Jeff. Hey,

Ramey Jackson

Good morning.

Jeff Hammond

Maybe construction. is start, had speak new trending, like to activity some customers? qualitatively seeing what in you're you more to standpoint, the backlog just you sounds how self-storage can results catch-up it just of the of order some to from -- some big just an mixed given And from

impacted So, I'm that just Thanks. wondering backlog. how

Ramey Jackson

Look, Difficulty]. Yeah, [Technical know think, great I as you question.

John Rohlwing

that. Go about ahead. Sorry

Ramey Jackson

our of look, XX% Yeah, top accounts revenue. Jeff. represent our Sorry, total than XX less

decent print was think good customers, had quarter. I some our a with they there

the mentioned that we're and with we're to the in seeing like kind it we're dashboard, certainly the of As optimistic our what notwithstanding internal looks -- our around opening, backdrop, conscientious great, data. everything economic relates of to kind I

perspective of construction, So, from new was applies some a you the on correct, same are RX. there for and and permitting timing kind pent-up demand

Jeff Hammond

half, I drove unpack maybe that's the there And just along speak Okay. comment. that know the dynamic Construction if the was maybe into line. And to just margins? something simply versus or within New mix don't that Commercial, that, better RX then the normalization second and was that if just stronger else product

Ramey Jackson

on But, things yes, yes, to about components you that mix, start. I'll less in margins New the and of revenue we slightly tend dilutive. as nature so And the internal hallway know, Construction margins. kind product systems are then with Yeah, of be higher of when talk the some Commercial, our

product mix the speak really that's of. So we

want you do to... Anselm,

Anselm Wong

Yeah, exactly right, that's Ramey.

second you then in and really just it's mix had it's that We commercial the of mixes; tremendous total, half. So side products forecasting, two should as piece. just the of can that. little quarter the we're lot, a that the are a self-storage in but that Not of because see, normalize higher product bit a a margin what

Jeff Hammond

Okay.

quickly delevering the great last Leverage, one. Just low here, end. of kind at you're job

point wondering Clearlake or consider and given the turn you strong at leverage take some M&A flow Thanks. out to of the cash what buyback Just attention of kind back free is? where just the to the shares

Ramey Jackson

Yeah. Appreciate it. We worked really hard.

deleveraging. think a I movement really certainly It is to their job great shares, Can't quarter. done saw I us, comment some we've the you think not on but it's up Clearlake. last

to of the the who here. And value you relates continue part know assets shareholder it Jeff, M&A, and add to find as base. we situation that are It's to we'll

look we balance optionality a want pull, to us gives the into So to it at what again, levers lot sheet, you triggers, of speak. so when what

Anselm Wong

agree and Yeah, Ramey. I with,

net of We're is But definitely on a the we looking thing actively that we're this lot built on again, big of was company proud the business. accretive targets for leverage. landed think are the to where M&A. I

want sure that accretive we to are continue to we for that targets make us. find So,

Jeff Hammond

guys. Thanks, Okay.

Anselm Wong

Thanks.

Operator

you. Thank

Brad with Our next your Wolfe Research. proceed question comes from Hewitt with Please question.

Brad Hewitt

and you, Thank morning. Hi. good

Anselm Wong

Good Brad. morning,

Brad Hewitt

So, about Obviously, obviously, from the in How some think are from prior you the we perspective, and square New catch-up permitting industry where a in in results strong who experienced adds? cycle top-line for quarters. in had delays customers QX. New very do for outlook footage Construction Construction

Ramey Jackson

it expansions we think kind conversions strength metrics really capacity, shows It come, construction. our Yeah, internally, RX when right? can dictate but that, tremendous of of, at I new amount don't in and look with or you a adding

backlog we're very perspective, still and nothing say, has pipeline our would optimistic there. changed from I So,

you think growth timing. really the at it's around I when quarter-to-quarter, look rates

Brad Hewitt

normalize the that's And was benefit you quarters. you mix the in mix. in Obviously, to saw deceleration helpful. in in quarter-to-date? of the maybe puts about takes steel how to mix And Would in QX? half, QX Okay, margins driving then we the then you to in coming given the able over be the think is switching mentioned second seen kind that and should we've that favorable expected and quantify implied deflation

Anselm Wong

put of in haven't between I way but commercial, be I wouldn't The that disclosed a a think Yeah. number, that your high-level kind would just easier look about it's that change When bit terms I piece. mix that, in self-storage into of rate if will again, point more, of of we what of view. And normalizes see half a second that's you'll not way kind -- said, at do anything and like that kind you drastic a printed margin we why calculation. we to QX, really the

looking a will perform time, rest customers at think from in and of the for I mix, to we of think out a will the deliver Ramey little. it again I kind normalize our like of for said, view. need year play it it's And timing what the point terms we how of

exactly and if always mix they predict how So, where it changed the can again we it's stayed us the to timing. deliver time solution wouldn't is them. me surprise where it for here, but some We had want

Brad Hewitt

you. Okay. Thank

Anselm Wong

Thanks.

Operator

you. Thank

Moore comes Please with Our your Daniel CJS with question. Securities. from proceed next question

Daniel Moore

up obviously, from just think to a that Thank you. in morning. Maybe New that experiencing you RX is that bit Congrats largely largely caught catch-up. delays? in those a or great customers of Construction, QX, you little been little on, color. permitting bit The Good too mentioned progress. -- are into prior spill I some Do expect customers

Ramey Jackson

something with No, the of the that permitting year. we'll deal I this rest is think issue have to

some listed to customers issue. that think of I you hear speak our

have in backlog relates you've and previous pipeline prints soon. as in still away that But coming So us call that we I heard we to strong relates as don't see well. Construction, it's our that to quarters then really as New the it our anytime it it going say

Anselm Wong

had just I what that you is REIT a higher what Yeah, rates think, obviously say, which Dan, [indiscernible] significantly customers reminder, our still again XX%. printed, if look at in low all they XX%-s, than occupancy

actually data get that about low in XX%-s some to have know pretty the slowdown, out build comments all showed occupancy quarter. again, they back we they of But again, provided, but a rate had bit range down. much they still this so, to And I that for again,

Ramey Jackson

most know, customers And tertiary as one markets, Yeah. of there listed the markets. MSAs. in is, we're And secondary comment the deal you We're everywhere. our more in top

them to are hear you that markets when those it Dan, So outside is, information top quarter quarter, from MSA. really the

Daniel Moore

about full good Helpful. Anselm, versus is you think color, year as point operating we cadence terms that kind any there margin, expect that for of is in that the any And a discernible fiscal adjusted of 'XX? full QX in year jumping-off 'XX embedded QX, margin, guide?

Anselm Wong

out, I what of jumping-off the it. Yeah, said decent is the of, way kind I a rate. it that's point, how is just second full looking would the implied for lay year, kind half There think you and

the that well again, self-storage. I they see what some see normalization as we'll mix on commercial products as think, is we'll of what buy, the

the think what implying see, I to So we're you forecast what pretty it good use. for is in

Daniel Moore

thinking between just And there nothing about seasonality, difference any? discernible the quarters and kind no if of is --

Anselm Wong

But disclose about there one is don't in there. it. probably your say, valid we a Yeah, assumption terms I would

we think, of other business, has ones QX I bit said are all of as that January, seasonality in a a only before, our the consistent. more quarter bit is because and the

Daniel Moore

to XX, may to conversations And, customers penetration XX Any XX, Noke. as on again. are your And good. obviously, continue maybe Thanks of see to customers? to with having color increase color that any Very increasing be what good adoption? you types as top

Ramey Jackson

the very we're of proud growth. Yeah, look,

We're up of I to back We've shore it end. the continue a made. a think the lot testament to make it's we've there really investments investing that robust.

it is, expand past, the us you've come seeing seeing in. talk type customers think stage, you'll there profile, that. nuance you're labor at on the control, of seeing see around of we're productivity access our I center customers get of shortage and labor But the right really what about in put what minimize And existing now portfolio, the terms customers smart to heard to pandemic access the trying say this forcing the is it's -- their -- really control. I'll new is In smart customer you're

you're And that of but on sales so because and only interest, issue. not acceleration seeing interest

Daniel Moore

again. color the Appreciate helpful. Very

Ramey Jackson

Thanks, Dan.

Anselm Wong

Thanks, Dan.

Operator

Thank you.

Our question. with with Please Reuben from proceed Garner comes your next Benchmark Company. question

Reuben Garner

Thank you. Good everybody. morning,

Anselm Wong

Good morning, Reuben.

Reuben Garner

mix same here. a to So, impact gross commercial higher than the the same now net the hate space, are of of clarifying is or operating specifically specifically but margins from self-storage drum they in a the on margins self-storage that beat the The is meaning EBITDA gross margin and comment, out in as I couple others, versus the altogether? higher are to or commercial an kind standpoint, place the storage questions

Anselm Wong

that the for margin slightly EBITDA the It's said, gross No. always be than the margin first has we to lower. leading self-storage, lower been slightly to commercial

I think always it's there. been

improved, always it's think been I but it's lower.

Ramey Jackson

Yeah.

certainly been a will It of Reuben. there. and improving that to to product sale Just improve, follow-up has but more on it's segment, continue commercial

the have margins detailing, have self-storage, with side. we On should installation and that enhance design the the self-storage on proposition that you value-added

Reuben Garner

new just conversions the quarter along? is construction deceleration, the technically within growth, the RX as growth mix year convergence, the guess, kind Was different of to goes deceleration then RX footage base. And -- on I will that normalized of more the is and I is know new Okay. was the revert square in a was -- this the and one-off which kind that rates it between

Ramey Jackson

will. Yeah, I think they

than And terms with when in have we this therein. quarter, -- are timing, right? anything concern in ready, growth no of normalization more but we it's RX. the see sites you'll mentioned, like dictate Anselm We really think don't don't I

spend that they redevelopment I into beefing all about remix customers, if or think up and are listed the we it's of regardless nature. talking things talk CapEx about our

RX we're sector. very So on still bullish the

Reuben Garner

to Okay. can. I I in sneak one if want more

where So recovered opportunity gross they from, levels going, that would of this reached kind year, beyond and that kind margins are and kind expansion the margin now of, of the for is G&A, today? most have leverage come

Ramey Jackson

you I if wouldn't the to... But are Anselm, opportunity. say they biggest want

Anselm Wong

Yeah. No.

is in I -- there, obviously, our terms product think, more how is a of an we constantly I there. and improve nice volume get at this said, business think productivity and has looking lines management there products like to but leverage, out opportunity

we everything. lever, say wouldn't only one major I at So think I look it's

I So everywhere. think opportunity there's

Reuben Garner

going strong Okay, forward. great. and again, luck guys Congrats the on results good

Anselm Wong

Reuben. Thanks,

Operator

you. Thank

Our next proceed from Please question comes Stifel. with with Elliott question. Stanley your

Stanley Elliott

place the this Hey, new right seeing existing there Hey, it, and Noke, is continue or the -- helpful. customers be end. adding you a like where question. it in have on a good can now think morning, that color to great, turning you everyone. feel your continue go-forward basis? back are existing to lot you even you which now XX% to Do Thank at higher then you more guys I back work you but retrofitting scale of said customers on And done growth, you're levels Any would also for a units? maybe

Ramey Jackson

Yeah.

the new best new it, has describe construction, So that -- success with among a in when customer yeah, that But way it's they the Obviously, an breakout, part, have around XX-XX. is new kind construction we seeing to get it's first of of mix renovation. construction of existing adoption and project terms a existing good portfolio. the we're portfolio what the and and

the then -- back on it's that's look, And ever-evolving. end,

total as Yes, us is term. but where very about, refine of we're we're talk rates, to the opportunity enhance ultimately not in what end, the the of is and going the heard happy growth back the in market opportunity. this you think but terms very, we we certainly long continue and with you've will early know, We innings still are satisfied

Anselm Wong

Yeah.

know is to based without make of going be proper solution there. on be our scale can the [indiscernible] our only end, in to have I why the think we've our think that just, sure the for back-end, What want to that's backlog we've mission-critical as kind volume and the investment I there able so I'll addition to that prior to it. not deliver is growth the customers that is the talked really that know we -- for we don't future back focus sure add system discussions, make a is I we

we have So -- should sure to robust want that get solution it that our they make customers the be.

Stanley Elliott

M&A the seeing being else Great. deals And recently equal? your customers. Does institutional forward that larger larger all here industry of some some with improve then visibility your is

Ramey Jackson

RX And they whichever Yeah, think rely Obviously, based stand it really consolidating RX does. But into I dual exist. it not that or or Yeah, that of going our us there's yes, me, side that -- side. they brands Not looks on We direction don't the for to we the opportunities it solutions. just the but look, stand rebranding information, business. certainly go to but one. are ready off them, customers, the -- certainly of there to help with does. on quantify, either running help have specifically what like, excuse acquisitions, ready comment them with

Stanley Elliott

gone Great. the have industry. And to of kind around your conversations age accelerate how Then of fleet? existing at that lastly, the some customers of down allow utilization your Does is you'll that? with coming the position given RX

Ramey Jackson

I it. when think about That's new construction construction XXXX. of the new a think great way to was I Look, look, peak think --

spite great We that. growth to print continue of in

they think on existing when folks construction lot new there's with to competition. less -- With a a of they of lot when capacity portfolio. I are a coming online, focus have new tendency, the busy

renovate, they they're into invest going into are portfolio. they stay money save They to are to their smart and relevant. so going that existing and And --

assessment. good that's So a

Stanley Elliott

of best and luck. much so Thanks guys. Great,

Ramey Jackson

Thanks, Stan.

Anselm Wong

Thanks.

Operator

you. Thank

Lovallo question question. John your from Our proceed with with Please next UBS. comes

Spencer Kaufman

markets first John. Can you seeing just morning. bit Kaufman end better, actually for business. provide little pretty for Spencer what which questions. the your as is on to Maybe little commercial in you're which are you doing good guys ones Thank bit a one, from of challenged? guys, various markets side and ones This the different end to have a a exposure the color are you of the broad there, Hey more

Ramey Jackson

Yeah, in of the the going is R&R product revenue the of we getting great is space. than other visibility where their lion's share the we're have from is our don't feedback customers, in terms

should darlings. data So of the that's kind are There some normalized a segments back good were pulled that I us. point for pandemic that commercial have or sector say, within

business outdoor sheds segment think starting when the to you So of about is carports, that normalize. outdoor and

So, to revenue share of that is we some very visibility here, do for fact to is but have that, the us. market And their from sheer R&R us. just the on play it's most comforting a

Spencer Kaufman

guys XXXX think to Okay. see in prepay allocation of expect now the of guys debt excess think. Should should I the matures side some refinance loan, continue which Got it. or that you term that? we you cash utilizing capital Good we about earlier, to voluntarily to how

Anselm Wong

I that options, that's are the the proactively I to still Yeah, of terms make acquisitions we're probably sure it but Ramey one think if of -- looking, meaningful we earlier, like that are accretive put said in we wanted which to business.

that's I a -- of debt side, leverage the we think that's from priority optionality So, side about business. if to accretive I and I in ourselves we've good acquisition the if be think to could prioritize, lot got here, but an a were the get thinking it is, there for have yes, would we position out

Spencer Kaufman

Good sense. guys. luck, Makes

Anselm Wong

Thanks.

Operator

would to to like turn for Ramey over There at I time. comments. are further closing the back floor Thank questions this you. no

Ramey Jackson

joining Janus everyone International of appreciate look Thank and Great. updating you a Have for day. your We support us you forward today. great progress. on to our

Operator

This concludes today's teleconference.

your this for you at your participation. time. disconnect may You Thank lines

Janus International (JBI) 10 Aug 232023 Q2 Earnings call transcript