JBI - Earnings call transcript Q4 2024 | Janus International Group, Inc.

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Operator

Hello, and welcome to the Janus International Fourth Quarter and Full Year 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would like to now turn the call over to your host, Ms. Sara Macioch, Senior Director of Investor Relations for Janus. Thank you.

You may begin, Ms. Macioch.

Sara Macioch

Chief thank am for Chief seen joined Ramey and and conference our Executive our operator, Wong. We Jackson; I Anselm this call. today our earnings you, release you you morning. joining all earnings Officer, hope issued Thank that Officer, have Financial by our

in presentation of section our at janusintl.com. We a of call, Investors in have also which the this support posted can be found website,

statements call and and business with I forward-looking begin, to no Securities remind affect like describing to control. any includes was expectations, forward-looking plans, could principal Commission, us We the would reasons, see date call Any actual statements. currently results are by today's recent we assume only of when Before is may those you projections statements. results. and statements, our statements only identify forward-looking Please our many differ variety to the forward-looking such Exchange uncertainties made. the for publicly made company's on assumptions obligation of beliefs, it available as which based our risks that of and from beyond filings that and by a anticipated The are information us during which any prospects update statement this future speaks made and our forward-looking

will introduce some XXXX our the continue and call to call will Ramey EPS. open closing financial to including up discussing your will We call, their adjusted non-GAAP point, guidance, our adjusted see comparable business. EBITDA, over adjusted before GAAP provide today, these results margin, an and providing non-GAAP of EBITDA reconciliation will our shares I with this a measure. On questions. At net filings overview measures discussion for the most turn of measures or and Please we Ramey. be financial for release adjusted thoughts income Ramey of certain today's directly our and Anselm a

Ramey Jackson

to has kick off project busy Through what sustained proved resilience thanking our my with team concerns, showcase hard to second the entire Janus I'd business, late for on have to rates macroeconomic sets a their all, new high our Sara. of we you, focused is XXXX, us quality backdrop. XXXX for beginning number that our service adjust expansions with year can the business reliability, the which impacting interest a customers year a which challenging as control, timing our footprint. in liquidity, in and be of by Janus quarter. the the comments Janus like difficult Thank remained safety and allowed apart a of had today to it professionalism, caused the milestones, the against many and model and customers. We of of employees work we offerings

to and trucking durability, we maintenance terminal premier for our Noke both engineered level On of Self-Storage our and division, provider the TMC, which of States, Entry security generation side, for systems facilities. At next to services United the ASTA already new solutions locking is introduced magnetic introduced assets solution, inside-the-door heightened it's a solutions a engineered of contributing fast-moving the door Ion, results. security our Smart series, high-performance roll-up the provide safety the the NS seamless self-storage an hardwired acquired primarily and for that door operation. We X of new includes and door X smart LTL we system in Noke Southeastern and industry, favorably

Mount Carolina distribution X centers: new and Ontario, Additionally, X in we X Airy, in Canada. opened North

shares and an to of repriced improvement received ratings our plus million X.X During Moody's XXXX, upgrades points. authorization XXX, remaining $XXX SOFR at the $XX.X basis both term million paid term leaving million we year-end. XX of S&P from share first-lien repurchase loan, our our program, successfully voluntarily of of We under credit and million down loan repurchased $XX.X then

a we call, taken into moment, our benefits. have to in reducing annual our already reduction As rationalizing estate the streamlining details includes the real we align and expenses. comments plan but better have full This on I'd SG&A last $XX million structural realize the year now few proactive quarter first, that begun outlined labor will savings. Anselm plan near-term the million seeing expect a on steps to $XX the pretax We of involves a like force, cost to on is to cost track, of market results. holdings make high-level get our business realities. and The with

offset as full XXXX, Self-Storage was basis, RX. our increase than in decline channel in more For Construction by a a on the year X.X%, combined was New XX.X% X.X% sales down

demand backdrop, sheet, also Ion generating for Construction a challenging to its to delays with for was in and that innovative macroeconomic impacted year enthusiasm was strong first year. for our from New rollout XXXX, at in XXXX. partially increase and and remote access began free units, range, delays as in by customization from unique XXX,XXX while was with of reflected XX.X% Self-Storage our as we outstanding declines quarter met of target and a strong quarter installed net impacted cash conversion updated anticipate full TMC particularly XXXX Other capabilities of ended suite sheds, impacted May. Noke, with early the customers, and RX fourth beyond. Despite demand structure, in continues income. be balance Results the of solutions, maintain quarter in and Noke during our year. second activity. Commercial Ion an flexible activity acquisition the The XX% in retail-to-storage pricing in have that While of flow conversion leverage weakness well the offset adjusted carports off the the the continued by Noke the we

result, organically market and to normalizes. both as we balance acquisitively the sheet As a strength have grow the

results, as on As stakeholders the fourth the macro turn of the XXXX along capitalize environment for overview I'll we quarter industry call over in further Anselm? that, initial a leader value with and are beyond. With our long-term opportunities guidance. create our to XXXX in improves to of Anselm well self-storage and for all solutions, the positioned

Anselm Wong

and year Ramey, with will a revenue quarter, discussion performance, covered everyone. I the sales as X on a our channels. $XXX.X XX.X% my focus prior XXXX good guidance. In across of fourth Thanks, followed our comments results by initial at high fourth million consolidated of quarter all level, and our full compared declines to up morning, was quarter, year the Ramey

XX.X% driven that in by from retail-to-storage off and conversion began activity. with renovation declines as X.X%, in Construction we Self-Storage earlier the see to in was as Our continued business as activity down slowdowns impact delays the New for was XX.X%, quarter, the RX well down continue redevelopment year.

driven Other and sheds, by decline weakness for Commercial in carports and fourth continued acquisition. the X% a offset Our quarter, in mostly by our demand segment saw TMC

and adjusted is roughly margin For year the by XX.X% decline volume. Fourth was an million quarter. This adjusted revenues XX%, to price compared decreases. of to XX% quarter, ago the of by compared primarily quarter driven XX% of was year EBITDA The in represents profitability quarter. the $XX.X up prior XX.X% EBITDA volume impact result in organic to the the

reserve for in had an and additional adjustment the losses provision our to credit warranty also We an additional quarter.

compared the quarter, was adjusted the approximately $X.XX, these to produced of $XX.X year margin Excluding XX%. In ago adjusted adjustments, in we or the X EBITDA the fourth fourth or period. income $X.X net quarter million, $X.XX, million,

operating cash $XXX continuing year, the demonstrate we robust million For generated the profile cash business. of million, full the in of from to fourth $XX.X the activities including generation quarter,

$XXX.X cash a free free For XXX%. We and of of $XXX.X flow million. of conversion million This including generated the cash full year represents liquidity, the flow balance net with $XXX.X of equivalents income the on total cash year, sheet. of adjusted we million finished

to leverage X.Xx. The cash at and generation strength combination of million our of share repurchase the to $XXX.X on remaining execute $XXX program, pursue has our balance offers net M&A Our us outstanding and was $XX.X authorization. continued strong was total and which debt targets million optionality sheet million, year-end liquidity, continue

we annual As to we to pretax We now the track, previous XXXX range total the compared call mentioned benefits. to earnings from $XX the is of associated our in million updating quarter to and savings of million, seeing We already the expect in $X prior structural now during million be reduction to $X $X third million on fourth Ramey the plan our charges $XX $XX estimate announced the plan booked estimate million quarter $X.X with million million. charges of $X on onetime the million, earlier, onetime and are in range of cost million. of to $X estimate

million the our XXXX guidance. million be to to XXXX moving to compared million, in range in of to Full expected XXXX. revenue is $XXX Now $XXX $XXX.X year

half. back to We slower expect XXXX the half the be first of than

we XXXX, outpaced While RX growth last to RX towards the expect their customers few in in focus shift Construction projects. over our has years, New

New for similar. reminder, and profiles a As Construction RX the are margin

margin. revenue, $XXX.X softer than as So extending is about the We margin previously of half expectations in moves in XXXX, top with the of expect some Commercial the in reflects mentioned line And work million, impact revenues continued quarter the EBITDA range was we tough the earlier, quarter. The XXXX unfavorable decline timelines of to $XXX million the customers announced first EBITDA reflects particularly I EBITDA some half Consistent year midpoint, affected project EBITDA are million a be half comp XXXX. year-over-year the XX.X%. in be adjusted back and agnostic in first for for of the first expected compared fourth and actions. XXXX to foresee EBITDA an to of to $XXX channels. items. adjusted At this the we sales as between softness onetime by through New our for X in Construction we

we Ramey in free the I And We XX% now near range the we of posted assumptions anticipate net flow call of expect the Ramey? to to XXXX. Thank the have to conversion remarks. cash of turn closing details improve for for XXXX, margins XXX%. Please planning for presentation flow you. key remains the quarter. Cash for refer adjusted first his robust. over will to being the income higher end target sequentially on

Ramey Jackson

Thank series, Ion new Despite and we we including completed you NS of introduced again, lines, Noke of the XXXX, Anselm. TMC. Door in the several the challenges acquisition product

net self-storage continue long-term we flow unchanged. to our achieve Strong for rates leverage our industry to targets. And long-term demand, fuel also net framework remains intact. importantly, We fundamentals and income free cash to the believe are conversion and continue occupancy adjusted

more over replacement need than Additionally, base. and estimate aging are the creates XX% of XX installed existing refurbishment self-storage which of years we old, potential for facilities

for self-storage, for out offering and the while in we delivering of offerings are our joining strong foundation, flow With in capabilities accretive momentum creation balance seeking beyond and Q&A. forward stakeholders. Thank to for suite positive will shareholder the strength, and Operator, we cash leader our as our ever-evolving again solutions XXXX continue can us. We value-enhancing building look value of opportunities. for expanding purpose-built, industry long-term and drive line diversified customers. we you sheet all open now our I

Operator

will Markets. Instructions] from [Operator with come Hammond, question Jeff KeyBanc first Capital And our

David Tarantino

This projects 'XX? the pipeline break walk Tarantino kind New for David more to Maybe is us that how changes specifically RX on key on in out Construction on you that Self-Storage, the thoughts through your could Jeff. informs and between your start on just of and of and thoughts

Anselm Wong

question. Great Sure.

the if to up what at in what we're to normally see and little, see seeing is there, kind Construction. pick is is starting of you I while expected we're change expect guided, we think when Construction, look New that little, New starting slowing terms of we that of is, it, a which still RX slowdown the a as and

New pretty that's now. that's starting of is healthy to right what's see seeing in in So we're -- we're It's Construction now. but terms not what slowly what there, slowly still

David Tarantino

on Or up, weakness maybe Construction state? would you that to expect to we're more And incremental of kind just side of the in of XQ? what a relative kind seeing clear steady New

Anselm Wong

That's our see grow. starting kind we our in XXXX guide. again, to then into would would still some And We Construction. see RX New expectation built is slowness of

Ramey Jackson

capitalized addition customer in mind strategy markets. that climate. around our And continue well to focused local, is go-to-market then And spots bright segments, see the current in which the keep certain for bodes self-storage is that, to in more and we

David Tarantino

on could kind then how us for key update And on some could the walk maybe expectations outlook? color takes and are into maybe you tariffs your factored Particularly, you the that, helpful. an on And the puts give on margin of price? That's line? Okay. through us

Anselm Wong

Sure.

high piece same assumption storage business I the of where had, will piece in storage of still be of price, think, in on terms that terms our So digits we've price it single year-over-year. the

order terms as steel, have lag get in terms buy in put to you the In of the guys way tariffs, know, we we we when X-month steel. the when of a usually our we

of prices you in point. So end if year a steel it, think year, last already of of were, chunk beginning is call terms price this this that year, year of at the of big about

producers up. steel. But price I of is going We their look, terms overall likely by don't In be down; we tariffs, prices. raise going think steel going steel to see are the of ultimately, to steel going the demand steel impacted see most the

be in actual to really street that will wait-and-see seeing of happens. what happens it a So it the terms in price terms when actually of

Ramey Jackson

not tariffs? to be domestic Will on we they demand? it what to on the mills based how But believe I supply do accelerate that, be going is, the Just add true pricing the the is question based price the products? think Or their will around down. and will protectionism steel will

Operator

with CJS Our Moore, next Securities. from will Daniel question come

Dan Moore

around and makes It comments the HX HX. sense. for certainly the Appreciate cadence

should and in kind Anselm, EBITDA of QX to about Just little saw more QX think, a [indiscernible]? how granularity, maybe that about relative revenue up margins how holistically, think we overall? bit. you kind I said we as should of we But for just what think

Anselm Wong

point. the of is kind What jump-off guided we've

way If cost the and QX the just about get adjust increasing benefits The be you well jump-off you you one-timers QX, point we as sequentially think come a of that margin year XX% increases. that in it, the as the is if as kind will view through for throughout as volume it of rate.

Dan Moore

a comments jump-off as using top from it. QX a Got And of point? any kind line,

Anselm Wong

the at it, pent-up was about look talked with way that the the think, -- starting we that's delays, I It we probably and there through. will obviously, be come demand to

going nicely. And you'd so of look quarter, normal seasonality. weather lot to the a conditions just think allow at probably be for I this into don't you back if it weather. look if it there's probably you I as our to remind QX, want will that far at see everyone construction

we be [ a have be normal that ] bit that from impact probably there'll will So some lower. that seasonality

Dan Moore

of to I'll the Got just the how we delineate and jump New you'd back I the guess between, look if it. guide, about And Helpful. you midpoint actually in Construction then more, the revenue is sounds gave a you year? just on one versus Do of RX kind like, I in But good get that versus New on to mean, obviously, back then, basis. Construction the out. see year-over-year if of maybe New we maybe think kind Self-Storage of Construction. starting back color It flatten queue. at growth half And

helpful. that's So

Anselm Wong

should you first the that, The way that about impact it, price amount. Dan, is absolute dollar did we will the obviously, off, think actions Commercial

of see So still absolute dollar view. from you year-over-year point an decline would

again, throughout New see by is little probably would thinking grows declining You Construction still about RX as what slowly a the year again we're impacted price.

of thoughts the Commercial, a in the that growth lot good the that steel of of our got to keep a in house. are seeing is bottom. side So kind rolling that then mind. And other that's have gotten it We've component we're

grow new the to have Airy that's locations there. Mount We helping

So expectation start Commercial we'll seeing to that growth well. our as back is getting

Operator

question from next Our John UBS. comes with Lovallo,

John Lovallo

stronger with dovetailing last you in just you're those through terms out track of and with how I to are on are off are catch jump-off there mean, a QX pretty Or things consistently seasonality, I kind the kind the Maybe expecting March far feeling point XX% actually mean, quarter? the you some so up? of like shaking question expectations? of

Anselm Wong

have on guide now. We're the with right track we

see So expected -- I along right that think as moving now. everything we that's is

John Lovallo

in the terms a the slowed may like of buybacks, Okay. then pace And bit. seems it have

like reason have like versus, I in $XX off quarter the maybe despite in there? quarter, bit looks the million may lower. fourth third you it $X think being stock something why the Any million guess, I a backed

Anselm Wong

there, the just it But happen. that equipment. for of had still balancing just cash. other Obviously, just our uses then do if did looking that want and it just what of needed of balance we was some all were were uses at of we that that the that's It's in some at of there kind cash M&A, we also just to for we that year-end some kind of kind relooking sure there, And was we we CapEx cash. of made to timing

John Lovallo

XX end. from competitive And the new any in emerging it. changes Have Got over maybe dynamics you last your X one months? noticed my the markets? call or Any or past, capacity guys even across months it, competitors

Ramey Jackson

the impacted on more competitors are capitalized Good customer go-to-market strategy the question. are smaller There more current Like some the is and situation. that right now. is sideline the Basically, are opposite. I certainly earlier, theirs mom-and-pops around segment, mentioned by the our that

So share in we're in think lot position 'XX. gain a to a I good of market

Operator

comes Phil question Ng, Jefferies. next from with Our

Philip Ng

Rates The last still projects you've few pretty about elevated. on rates. talked being paused quarters, remain

just here. customer seeing to How on group? you update backlogs up well? orders the are bidding from your curious certainly, as shaping conversion So and, get to activity What are perhaps that

Anselm Wong

I about question, trying just still the rates And was impact our is, Great what high, talked yes, and interest Phil. liquidity we to customers. the think thing to articulate we're big are

So the to concurrent well they that able time. not do customers many are be still projects might at same capitalized, so

project the finally they because those and project were had held saw finished So now some that being a we of to to able up it. projects add of another just movement

So I still think in obviously kind QX. Rates are started of see what high. we that's to

them add can even necessarily they So to projects all do. I don't what sudden a than able more being see concurrently of

Ramey Jackson

international our And metrics the backlog, remain we're growth the those the business. and in actual seeing stable. both addition that, terms that In just pipeline to of report of in backlog happy in to

Philip Ng

storage question things. correctly, price high expectation side If the Super. of call your heard declines single-digit still is for, I it, you Okay. Anselmn. guess, I for for a

just quarter. think that and of out if were was and mid-teens almost down like, we at kind volumes, So your look fourth parse down, in volumes XX% I in XQ

So is volume in about how when it cadence of the the expected through should the that pretty year, back some we in recovery negative the first it? half we about sort think be then and still Is half? think to

Anselm Wong

We Yes, out greatest cautious. that's still It's there. the what we're still seeing conditions -- wanted just right now. not we're

to all is of trying really reminder, at out we're in look how pipeline stretching So little we're in what what project and we about they as terms again, is we see. And a be took flow. right will seeing deep-dive timing a projects a And just timing the now more. the cautious

that's in to still some maybe So why QX. into would expect decline we and little see a first that half going

Philip Ng

That's Okay. quarter. one was helpful weak color. pretty one And for still last RX the during me.

progressing to alluded I for I you there's and of perhaps opportunity how the you contribute seeing of it's that's that us conversion kind Have we large more a could turn a positive? know that still look bottom? You year? And soft and to started pretty seeing Or color out large then on does that 'XX, about how rebranding growth. little REIT on you an Can where kind here? of conversions? for that -- are give talked side when customer. a things, this believe customer And

Anselm Wong

increase. is I open I acquisitions think from not there's right bottomed to half. seeing that customers. not be seeing all because -- environment rebranding, the REIT, it's for -- going a Conversions work more we're more big of not could pretty more some be But don't There think the in are point, this just we that. RX at We're much. back the one to opportunities,

So we'll RX see I more think that's rebranding work. where

Operator

it our are time. remarks. to I'd additional this like closing to presenters at any questions now for There turn back no

Ramey Jackson

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

Operator

and does presentation. you, gentlemen. ladies today's conclude Thank This

disconnect. You may now

Janus International (JBI) 26 Feb 252024 Q4 Earnings call transcript