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Janus International Group Reports Third Quarter 2024 Financial Results

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Janus International Group (NYSE: JBI) reported Q3 2024 financial results with revenue of $230.1 million, down 17.9% year-over-year. The company posted net income of $11.8 million ($0.08 per diluted share), a 68.1% decrease from Q3 2023. Adjusted EBITDA was $43.1 million with an 18.7% margin. Self-Storage revenues declined 22.4%, while Commercial and Other decreased 7.8%. The company announced a structural cost reduction plan expected to generate $8-12 million in annual savings and updated its FY2024 guidance to revenue of $910-925 million and Adjusted EBITDA of $195-205 million.

Janus International Group (NYSE: JBI) ha riportato i risultati finanziari del terzo trimestre 2024, registrando un fatturato di 230,1 milioni di dollari, in calo del 17,9% rispetto all'anno precedente. L'azienda ha riportato un reddito netto di 11,8 milioni di dollari (0,08 dollari per azione diluita), con una diminuzione del 68,1% rispetto al terzo trimestre 2023. L'EBITDA rettificato è stato di 43,1 milioni di dollari con un margine del 18,7%. I ricavi da Self-Storage sono diminuiti del 22,4%, mentre quelli Commerciali e Altri sono scesi del 7,8%. L'azienda ha annunciato un piano di riduzione strutturale dei costi, che si prevede genererà un risparmio annuale di 8-12 milioni di dollari, e ha aggiornato le sue previsioni per l'anno fiscale 2024, con un fatturato previsto di 910-925 milioni di dollari e un EBITDA rettificato di 195-205 milioni di dollari.

Janus International Group (NYSE: JBI) informó sobre los resultados financieros del tercer trimestre de 2024, con ingresos de 230,1 millones de dólares, una disminución del 17,9% en comparación con el año anterior. La compañía presentó un ingreso neto de 11,8 millones de dólares (0,08 dólares por acción diluida), lo que representa una disminución del 68,1% respecto al tercer trimestre de 2023. El EBITDA ajustado fue de 43,1 millones de dólares con un margen del 18,7%. Los ingresos de Self-Storage disminuyeron un 22,4%, mientras que los ingresos Comerciales y Otros disminuyeron un 7,8%. La empresa anunció un plan de reducción de costos estructurales que se espera genere ahorros anuales de entre 8 y 12 millones de dólares y actualizó su guía para el año fiscal 2024 a ingresos de entre 910 y 925 millones de dólares y un EBITDA ajustado de entre 195 y 205 millones de dólares.

Janus International Group (NYSE: JBI)는 2024년 3분기 재무 실적을 보고하며 2억 3천만 1천 달러매출을 기록했으며, 이는 지난해 대비 17.9% 감소한 수치입니다. 회사는 1천 1백 8십만 달러의 순이익을 발표했으며(희석 주당 0.08달러), 이는 2023년 3분기 대비 68.1% 감소한 것입니다. 조정된 EBITDA는 4천 3백 1십만 달러로 18.7%의 마진을 기록했습니다. 셀프 스토리지 수익은 22.4% 감소했으며, 상업 및 기타 수익은 7.8% 감소했습니다. 회사는 연간 8-12백만 달러의 절감을 기대하는 구조적 비용 절감 계획을 발표했으며, 2024 회계연도 가이드를 9억 1천만 달러에서 9억 2천 5백만 달러 매출, 조정 EBITDA 1억 9천 5백만 달러에서 2억 5백만 달러로 업데이트했습니다.

Janus International Group (NYSE: JBI) a annoncé ses résultats financiers pour le troisième trimestre 2024, avec un chiffre d'affaires de 230,1 millions de dollars, en baisse de 17,9% par rapport à l'année précédente. La société a enregistré un revenu net de 11,8 millions de dollars (0,08 dollar par action diluée), ce qui représente une diminution de 68,1% par rapport au troisième trimestre 2023. Le EBITDA ajusté s'élevait à 43,1 millions de dollars avec une marge de 18,7%. Les revenus provenant du Self-Storage ont diminué de 22,4%, tandis que ceux issus des activités commerciales et autres ont baissé de 7,8%. L'entreprise a annoncé un plan de réduction des coûts structurels visant à générer des économies annuelles de 8 à 12 millions de dollars et a mis à jour ses prévisions pour l'exercice 2024 à un chiffre d'affaires de 910 à 925 millions de dollars et un EBITDA ajusté de 195 à 205 millions de dollars.

Janus International Group (NYSE: JBI) hat die finanziellen Ergebnisse für das 3. Quartal 2024 veröffentlicht, mit Umsätzen von 230,1 Millionen Dollar, was einem Rückgang von 17,9% im Vergleich zum Vorjahr entspricht. Das Unternehmen verzeichnete einen Nettogewinn von 11,8 Millionen Dollar (0,08 Dollar pro verwässerter Aktie), was einem Rückgang von 68,1% im Vergleich zum 3. Quartal 2023 entspricht. Das bereinigte EBITDA betrug 43,1 Millionen Dollar bei einer Marge von 18,7%. Die Einnahmen aus Self-Storage sanken um 22,4%, während die Einnahmen aus Gewerbe und anderen Bereichen um 7,8% zurückgingen. Das Unternehmen kündigte einen strukturellen Kostenreduzierungsplan an, der jährliche Einsparungen von 8 bis 12 Millionen Dollar bringen soll, und aktualisierte seine Prognose für das Geschäftsjahr 2024 auf einen Umsatz von 910 bis 925 Millionen Dollar und ein bereinigtes EBITDA von 195 bis 205 Millionen Dollar.

Positive
  • TMC acquisition contributed $13.7 million to revenue
  • Implementing cost reduction plan targeting $8-12 million annual savings
  • Strong cash flow generation maintained
  • Share repurchase of 4.3 million shares for $45.5 million executed
Negative
  • Revenue decreased 17.9% year-over-year
  • Net income declined 68.1% to $11.8 million
  • Adjusted EBITDA decreased 43.4% to $43.1 million
  • Self-Storage revenue down 22.4%
  • Commercial and Other revenue declined 7.8%
  • Net leverage ratio increased to 2.0x
  • Downward revision of full-year 2024 guidance

Insights

The Q3 results reveal significant headwinds impacting Janus International's performance. Revenue declined -17.9% to $230.1 million, with self-storage segment dropping 22.4%. The adjusted EBITDA margin contracted 850 basis points to 18.7%, reflecting volume pressure from project deferrals.

The structural cost reduction initiative targeting $8-12 million in annual savings demonstrates management's proactive approach, though implementation costs of $2-4 million will impact near-term results. The revised full-year guidance of $910-925 million in revenue and $195-205 million in adjusted EBITDA indicates continued challenges ahead.

While maintaining a healthy net leverage ratio of 2.0x, the $45.5 million share repurchase signals management's confidence in long-term fundamentals despite current market pressures. The TMC acquisition contributed $13.7 million to revenue, helping partially offset organic declines.

The self-storage industry is experiencing a significant slowdown due to macroeconomic headwinds, particularly interest rate uncertainty affecting project timelines. This structural shift is forcing developers to postpone investments until borrowing conditions improve.

The launch of Nokē Ion and TMC acquisition integration represent strategic moves to diversify revenue streams and enhance market position. However, the election uncertainty and broader commercial sector weakness suggest recovery may extend into 2025.

The 68.1% decline in net income to $11.8 million reflects both cyclical and structural challenges. The cost reduction plan indicates a strategic pivot to protect margins while maintaining operational flexibility for future growth opportunities.

Delivered $230.1 Million in Total Revenue

Generated Net Income of $11.8 Million, or $0.08 Per Diluted Share, with Adjusted EPS of $0.11

Achieved an Adjusted EBITDA of $43.1 Million and Adjusted EBITDA Margin of 18.7%

Deployed $45.5 Million in Share Repurchases

Announced Structural Cost Reduction Plan

Updated Full-year 2024 Revenue and Adjusted EBITDA Guidance

TEMPLE, Ga.--(BUSINESS WIRE)-- Janus International Group, Inc. (NYSE: JBI) (“Janus” or the “Company”), a leading provider of building product solutions and cutting-edge access control technologies for the self-storage and other commercial and industrial sectors, today announced financial results for its fiscal third quarter ended September 28, 2024.

Third Quarter 2024 Highlights

  • Revenues of $230.1 million, an 17.9% decrease compared to $280.1 million for the third quarter of 2023, as total Self-Storage revenues were down 22.4% and Commercial and Other declined 7.8%. The 2024 acquisition of TMC contributed $13.7 million to revenue.
  • Net income of $11.8 million, or $0.08 per diluted share, a 68.1% decrease compared to $37.0 million, or $0.25 per diluted share in the third quarter of 2023.
  • Adjusted Net Income (defined as net income plus the corresponding tax-adjusted add-backs shown in the Adjusted EBITDA reconciliation tables below) of $15.7 million, down 59.8% compared to $39.0 million in the third quarter of 2023. Adjusted Net Income per diluted share of $0.11, a 16.0% decrease compared to $0.27 per diluted share in the third quarter of 2023.
  • Adjusted EBITDA of $43.1 million, a 43.4% decrease compared to $76.2 million for the third quarter of 2023, driven by decreases in revenues and increases in general and administrative expenses. Adjusted EBITDA margin (defined as total revenues divided by Adjusted EBITDA) was 18.7%, a decrease of approximately 850 basis points from the prior year period due primarily to the negative impacts of volume declines due to project deferrals.
  • Long-term debt to net income ratio of 5.7x compared to 4.6x in the fourth quarter of 2023. Net leverage ratio of 2.0x, an increase of 0.4x from the fourth quarter of 2023.
  • Repurchased 4.3 million shares for $45.5 million (including commissions and excise taxes) in the third quarter. At quarter end, the Company had $29.9 million remaining on its share repurchase authorization.

“We saw continued pressure in the third quarter as headwinds from macroeconomic factors, interest rate uncertainty and project delays persisted,” said Ramey Jackson, Chief Executive Officer. “We’re confident in our value proposition and believe long-term self-storage industry fundamentals remain strong. We're taking proactive steps to align with current market conditions, while remaining flexible to capitalize on the next phase of growth. This includes a structural cost reduction program aimed at right sizing the business to remain nimble.”

Mr. Jackson continued, “We’re encouraged by early results of our Nokē Ion product launch, and the synergies we’ve realized from the acquisition of TMC. Our cash flow generation and ability to achieve long-term profitability remain key differentiators for Janus. We continue to invest in the business, to build resilience and enhance our market share which we believe will support long-term value creation for all stakeholders.”

Structural Cost Reduction Plan

The Company is undertaking a structural cost reduction plan designed to streamline our labor force, rationalize real estate holdings and reduce selling, general and administrative expenses.

  • Cost Reduction Plan actions are expected to generate approximately $8 million to $12 million of annual pre-tax cost savings.
  • The Company expects to record total one time estimated pre-tax charges of $2 million to $4 million with the plan.

2024 Financial Outlook

In light of the headwinds described above, the Company is revising its full year 2024 guidance. Prior 2024 guidance should no longer be relied upon. Assumptions driving revisions to guidance for 2024 include:

  • Extension of self-storage project delays from elevated interest rate levels decreasing at a slower pace than anticipated, as developers and customers await optimal borrowing conditions.
  • Return to growth in Commercial and Other is expected to be pushed into 2025.
  • Election uncertainty has impacted demand across all sectors.

Based on these macroeconomic impacts, Janus is updating its full year 2024 guidance as follows:

  • Revenue in a range of $910 million to $925 million
  • Adjusted EBITDA in a range of $195 million to $205 million

The estimates set forth above were prepared by the Company’s management and are based upon a number of assumptions. See “Forward-Looking Statements.” The Company has excluded a quantitative reconciliation of Adjusted EBITDA with respect to the Company’s 2024 guidance under the “unreasonable efforts” exception in Item 10(e)(1)(i)(B) of Regulation S-K. See “Non-GAAP Financial Measures” below for additional information.

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, relocatable 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 third quarter results and conduct a question-and-answer session on Tuesday October 29, 2024 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 1-800-343-4136 or 1-203-518-9843, respectively. Upon dialing in, please request to join the Janus International Group Third Quarter 2024 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 11157071.

Forward-Looking Statements

Certain statements in this communication, including the estimated guidance provided under “2024 Financial Outlook” and the expectations associated with the structural cost reduction plan under “Structural Cost Reduction Plan” 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 belief regarding the demand outlook for Janus’s products, the strength of the industrials markets, the structural cost reduction plan and any anticipated benefits of the structural cost reduction plan, and Janus’s expectations regarding its revenue, operating expenses, other operating results, and other key metrics, including Janus’s ability to meet previously announced earnings guidance with respect to Janus and/or its individual segments. When used in this communication, words such as “may,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “continue,” “positioned,” 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; (iii) litigation, complaints, and/or adverse publicity; (iv) cyber incidents or directed attacks that could result in information theft, data corruption, operational disruption, and/or financial loss; (v) risks related to our share repurchase program, including risks if it is or is not fully consummated and the risk that it will not enhance shareholder value; (vi) the risk that the demand outlook for Janus’s products may not be as strong as anticipated; (vii) general economic conditions, including the capital and credit markets, and adverse macroeconomic conditions, including unemployment, inflation, rising interest rates, changes in consumer practices due to slower economic growth, and regional or global liquidity constraints; and (viii) any anticipated synergies and/or benefits from acquisitions. There can be no assurance that the events, results, trends, or guidance regarding the 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 and Adjusted Net Income 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 and Adjusted Net Income 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 and Adjusted Net Income 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.

Please note that the Company has not provided the most directly comparable GAAP financial measure, or a quantitative reconciliation thereto, for the Adjusted EBITDA forward-looking guidance for 2024 and long-term outlook included in this communication in reliance on the “unreasonable efforts” exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. Providing the most directly comparable GAAP financial measure, or a quantitative reconciliation thereto, cannot be done without unreasonable effort due to the inherent uncertainty and difficulty in predicting certain non-cash, material and/or non-recurring expenses or benefits, legal settlements or other matters, and certain tax positions. Because these adjustments are inherently variable and uncertain and depend on various factors that are beyond the Company’s control, the Company is also unable to predict their probable significance. The variability of these items could have an unpredictable, and potentially significant, impact on our future GAAP financial results.

Adjusted EBITDA and Adjusted Net Income 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 and Adjusted Net Income rather than net income (loss), which is the nearest GAAP equivalent of Adjusted EBITDA and Adjusted Net Income. These limitations include that the non-GAAP financial measures: exclude depreciation and amortization, and although these are non-cash expenses, the assets being depreciated may be replaced in the future; do not reflect interest expense, or the cash requirements necessary to service interest on debt, which reduces cash available; do not reflect the provision for or benefit from income tax that may result in payments that reduce cash available; exclude non-recurring items (i.e., the extinguishment of debt); and 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

(In millions, except share and per share data - Unaudited)

 

 

Three Months Ended

 

Nine Months Ended

 

September 28, 2024

 

September 30, 2023

 

September 28, 2024

 

September 30, 2023

REVENUES

 

 

 

 

 

 

 

Product revenues

$

175.9

 

 

$

237.8

 

 

$

596.8

 

 

$

686.0

 

Service revenues

 

54.2

 

 

 

42.3

 

 

 

136.2

 

 

 

116.6

 

Total revenues

$

230.1

 

 

$

280.1

 

 

$

733.0

 

 

$

802.6

 

Product cost of revenues

 

102.6

 

 

 

129.7

 

 

 

332.5

 

 

 

380.4

 

Service cost of revenues

 

36.3

 

 

 

31.3

 

 

 

89.9

 

 

 

86.9

 

Cost of revenues

$

138.9

 

 

$

161.0

 

 

$

422.4

 

 

$

467.3

 

GROSS PROFIT

$

91.2

 

 

$

119.1

 

 

$

310.6

 

 

$

335.3

 

OPERATING EXPENSES

 

 

 

 

 

 

 

Selling and marketing

 

17.1

 

 

 

17.7

 

 

 

51.8

 

 

 

49.2

 

General and administrative

 

44.6

 

 

 

34.9

 

 

 

122.2

 

 

 

104.3

 

Operating expenses

$

61.7

 

 

$

52.6

 

 

$

174.0

 

 

$

153.5

 

INCOME FROM OPERATIONS

$

29.5

 

 

$

66.5

 

 

$

136.6

 

 

$

181.8

 

Interest expense, net

 

(11.6

)

 

 

(14.5

)

 

 

(38.9

)

 

 

(45.3

)

Loss on extinguishment and modification of debt

 

 

 

 

(3.9

)

 

 

(1.7

)

 

 

(3.9

)

Impairment

 

(2.8

)

 

 

 

 

 

(2.8

)

 

 

 

Other income

 

 

 

 

1.3

 

 

 

0.2

 

 

 

1.1

 

INCOME BEFORE TAXES

$

15.1

 

 

$

49.4

 

 

$

93.4

 

 

$

133.7

 

Provision for income taxes

 

3.3

 

 

 

12.4

 

 

 

23.3

 

 

 

33.7

 

NET INCOME

$

11.8

 

 

$

37.0

 

 

$

70.1

 

 

$

100.0

 

Other comprehensive income (loss)

$

2.2

 

 

$

(1.7

)

 

$

1.8

 

 

$

(0.4

)

COMPREHENSIVE INCOME

$

14.0

 

 

$

35.3

 

 

$

71.9

 

 

$

99.6

 

 

 

 

 

 

 

 

 

Weighted-average shares outstanding, basic and diluted

 

 

 

 

 

 

 

Basic

 

143,666,406

 

 

 

146,827,175

 

 

 

145,376,074

 

 

 

146,765,567

 

Diluted

 

144,281,252

 

 

 

146,993,865

 

 

 

145,920,863

 

 

 

146,839,308

 

Net income per share, basic and diluted

 

 

 

 

 

 

 

Basic

$

0.08

 

 

$

0.25

 

 

$

0.48

 

 

$

0.68

 

Diluted

$

0.08

 

 

$

0.25

 

 

$

0.48

 

 

$

0.68

 

Janus International Group, Inc.

Consolidated Balance Sheets

(In millions, except share and per share data - Unaudited)

 

 

September 28,
2024

 

December 30,
2023

ASSETS

 

 

 

Current Assets

 

 

 

Cash and cash equivalents

$

102.1

 

 

$

171.7

 

Accounts receivable, less allowance for credit losses of $11.9 and $3.6, as of September 28, 2024 and December 30, 2023, respectively

 

160.8

 

 

 

174.1

 

Contract assets

 

25.3

 

 

 

49.7

 

Inventories

 

54.5

 

 

 

48.4

 

Prepaid expenses

 

9.0

 

 

 

8.4

 

Other current assets

 

23.6

 

 

 

10.8

 

Total current assets

$

375.3

 

 

$

463.1

 

Property, plant and equipment, net

 

58.4

 

 

 

52.4

 

Right-of-use assets, net

 

51.1

 

 

 

50.9

 

Intangible assets, net

 

392.0

 

 

 

375.3

 

Goodwill

 

383.9

 

 

 

368.6

 

Deferred tax assets, net

 

28.9

 

 

 

36.8

 

Other assets

 

5.4

 

 

 

2.9

 

Total assets

$

1,295.0

 

 

$

1,350.0

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current Liabilities

 

 

 

Accounts payable

$

52.1

 

 

$

59.8

 

Contract liabilities

 

21.1

 

 

 

26.7

 

Current maturities of long-term debt

 

7.3

 

 

 

7.3

 

Accrued expenses and other current liabilities

 

53.7

 

 

 

80.3

 

Total current liabilities

$

134.2

 

 

$

174.1

 

Long-term debt, net

 

586.1

 

 

 

607.7

 

Deferred tax liabilities, net

 

1.8

 

 

 

1.7

 

Other long-term liabilities

 

46.3

 

 

 

46.9

 

Total liabilities

$

768.4

 

 

$

830.4

 

STOCKHOLDERS’ EQUITY

 

 

 

Common stock, 825,000,000 shares authorized, $0.0001 par value, 147,234,872 and 146,861,489 shares issued as of September 28, 2024 and December 30, 2023, respectively

$

 

 

$

 

Treasury stock, at cost, 6,160,579 and 34,297 shares as of September 28, 2024 and December 30, 2023, respectively

 

(72.5

)

 

 

(0.4

)

Additional paid-in capital

 

296.2

 

 

 

289.0

 

Accumulated other comprehensive loss

 

(1.1

)

 

 

(2.9

)

Retained earnings

 

304.0

 

 

 

233.9

 

Total stockholders’ equity

$

526.6

 

 

$

519.6

 

Total liabilities and stockholders’ equity

$

1,295.0

 

 

$

1,350.0

 

Janus International Group, Inc.

Consolidated Statements of Cash Flows

(In millions - Unaudited)

 

 

Nine Months Ended

 

September 28,
2024

 

September 30,
2023

Operating activities

 

 

 

Net income

$

70.1

 

 

$

100.0

 

Adjustments to reconcile net income to net cash provided by operating activities

 

 

 

Depreciation of property, plant and equipment

 

8.9

 

 

 

6.6

 

Noncash lease expense

 

5.6

 

 

 

4.7

 

Provision for inventory obsolescence

 

0.2

 

 

 

1.4

 

Amortization of intangibles

 

23.7

 

 

 

22.3

 

Deferred income taxes

 

7.9

 

 

 

 

Deferred finance fee amortization

 

1.9

 

 

 

3.1

 

Provision for expected losses on accounts receivable

 

8.6

 

 

 

(0.7

)

Share-based compensation

 

7.2

 

 

 

5.4

 

Impairment

 

2.8

 

 

 

 

Loss on extinguishment of debt

 

 

 

 

1.6

 

Loss on equity investment

 

 

 

 

0.1

 

Loss on sale of property, plant, and equipment

 

 

 

 

0.1

 

Changes in operating assets and liabilities, excluding effects of acquisition

 

 

 

Accounts receivable

 

7.3

 

 

 

(14.9

)

Contract assets

 

24.5

 

 

 

(12.1

)

Prepaid expenses and other current assets

 

(13.3

)

 

 

9.8

 

Inventories

 

(5.7

)

 

 

12.0

 

Other assets

 

0.4

 

 

 

0.1

 

Accounts payable

 

(8.6

)

 

 

3.6

 

Contract liabilities

 

(6.3

)

 

 

(3.6

)

Accrued expenses and other current liabilities

 

(27.5

)

 

 

11.0

 

Other long-term liabilities

 

(5.1

)

 

 

(4.0

)

Net cash provided by operating activities

$

102.6

 

 

$

146.5

 

Investing activities

 

 

 

Purchases of property, plant, and equipment

$

(14.0

)

 

$

(13.5

)

Cash paid for acquisitions, net of cash acquired

 

(59.4

)

 

 

(1.0

)

Payment for equity-method investment

 

(2.5

)

 

 

 

Proceeds from sale of property, plant and equipment

 

 

 

 

0.1

 

Net cash used in investing activities

$

(75.9

)

 

$

(14.4

)

Financing activities

 

 

 

Principal payments on long-term debt

$

(23.4

)

 

$

(426.9

)

Proceeds from long-term debt

 

 

 

 

337.6

 

Principal payments under finance lease obligations

 

(1.4

)

 

 

(0.5

)

Payments for deferred financing fees

 

(0.2

)

 

 

(11.2

)

Cash paid for common stock withheld for taxes

 

(1.2

)

 

 

 

Repurchase of common stock

 

(70.2

)

 

 

 

Net cash used in financing activities

$

(96.4

)

 

$

(101.0

)

Effect of exchange rate changes on cash

$

0.1

 

 

$

0.2

 

Net (decrease) increase in cash

$

(69.6

)

 

$

31.3

 

Cash, beginning of period

$

171.7

 

 

$

78.4

 

Cash, end of period

$

102.1

 

 

$

109.7

 

Supplemental cash flows information

 

 

 

Interest paid

$

47.5

 

 

$

38.9

 

Income taxes paid

$

26.5

 

 

$

22.5

 

Cash paid for operating leases included in operating activities

$

6.6

 

 

$

6.2

 

Non-cash investing and financing activities:

 

 

 

Right-of-use assets obtained in exchange for operating lease obligations

$

4.2

 

 

$

4.5

 

Right-of-use assets obtained in exchange for finance lease obligations

$

1.6

 

 

$

2.4

 

RSU shares withheld included in accrued employee taxes

$

0.1

 

 

$

0.2

 

Excise taxes from common share repurchase included in accrued expenses

$

0.7

 

 

$

 

Capital expenditures in accounts payable

$

0.2

 

 

$

 

Janus International Group, Inc.

Revenue by Sales Channel

(In millions, except percentages)

 

 

Three Months Ended

 

Variance

Consolidated

September 28, 2024

 

% of sales

 

September 30, 2023

 

% of sales

 

$

 

%

Self-storage - new construction

$

92.2

 

40.1

%

 

$

105.5

 

37.7

%

 

$

(13.3

)

 

(12.6

)%

Self-storage - R3

 

56.9

 

24.7

%

 

 

86.7

 

31.0

%

 

 

(29.8

)

 

(34.4

)%

Self Storage

$

149.1

 

64.8

%

 

$

192.2

 

68.6

%

 

$

(43.1

)

 

(22.4

)%

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and other

 

81.0

 

35.2

%

 

 

87.9

 

31.4

%

 

 

(6.9

)

 

(7.8

)%

Total

$

230.1

 

100.0

%

 

$

280.1

 

100.0

%

 

$

(50.0

)

 

(17.9

)%

 

Nine Months Ended

 

Variance

Consolidated

September 28, 2024

 

% of sales

 

September 30, 2023

 

% of sales

 

$

 

%

Self-storage - new construction

$

319.5

 

43.6

%

 

$

291.9

 

36.4

%

 

$

27.6

 

 

9.5

%

Self-storage - R3

 

189.1

 

25.8

%

 

 

252.5

 

31.5

%

 

 

(63.4

)

 

(25.1

)%

Total self-storage

$

508.6

 

69.4

%

 

$

544.4

 

67.8

%

 

$

(35.8

)

 

(6.6

)%

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and other

 

224.4

 

30.6

%

 

 

258.2

 

32.2

%

 

 

(33.8

)

 

(13.1

)%

Total

$

733.0

 

100.0

%

 

$

802.6

 

100.0

%

 

$

(69.6

)

 

(8.7

)%

Janus International Group, Inc.

Reconciliation of Net Income to EBITDA* and Adjusted EBITDA*

(In millions, except percentages)

 

 

Three Months Ended

 

Variance

 

September 28, 2024

 

September 30, 2023

 

 

 

 

 

 

 

$

 

%

Net Income

$

11.8

 

$

37.0

 

 

$

(25.2

)

 

(68.1

)%

Interest, net

 

11.6

 

 

14.5

 

 

 

(2.9

)

 

(20.0

)%

Income taxes

 

3.3

 

 

12.4

 

 

 

(9.1

)

 

(73.4

)%

Depreciation

 

3.0

 

 

2.2

 

 

 

0.8

 

 

36.4

%

Amortization

 

8.2

 

 

7.4

 

 

 

0.8

 

 

10.8

%

EBITDA*

$

37.9

 

$

73.5

 

 

$

(35.6

)

 

(48.4

)%

Restructuring charges1

 

0.4

 

 

0.2

 

 

 

0.2

 

 

100.0

%

Acquisition expense2

 

2.0

 

 

(1.4

)

 

 

3.4

 

 

(242.9

)%

Impairment3

 

2.8

 

 

 

 

 

2.8

 

 

100.0

%

Loss on extinguishment and modification of debt4

 

 

 

3.9

 

 

 

(3.9

)

 

(100.0

)%

Adjusted EBITDA*

$

43.1

 

$

76.2

 

 

$

(33.1

)

 

(43.4

)%

 

Nine Months Ended

 

Variance

 

September 28, 2024

 

September 30, 2023

 

 

 

 

 

 

 

$

 

%

Net Income

$

70.1

 

$

100.0

 

 

$

(29.9

)

 

(29.9

)%

Interest, net

 

38.9

 

 

45.3

 

 

 

(6.4

)

 

(14.1

)%

Income taxes

 

23.3

 

 

33.7

 

 

 

(10.4

)

 

(30.9

)%

Depreciation

 

8.9

 

 

6.6

 

 

 

2.3

 

 

34.8

%

Amortization

 

23.7

 

 

22.3

 

 

 

1.4

 

 

6.3

%

EBITDA*

$

164.9

 

$

207.9

 

 

$

(43.0

)

 

(20.7

)%

Restructuring charges1

 

1.1

 

 

1.0

 

 

 

0.1

 

 

10.0

%

Acquisition expense2

 

3.4

 

 

(1.4

)

 

 

4.8

 

 

(342.9

)%

Impairment3

 

2.8

 

 

 

 

 

2.8

 

 

100.0

%

Loss on extinguishment and modification of debt4

 

1.7

 

 

3.9

 

 

 

(2.2

)

 

(56.4

)%

Adjusted EBITDA*

$

173.9

 

$

211.4

 

 

$

(37.5

)

 

(17.7

)%

(1)

Restructuring charges consist of the following: 1) facility relocations, and 2) severance and hiring costs associated with our strategic transformation, including executive leadership team changes, and 3) strategic business assessment and transformation projects.

(2)

Expenses or income related to various professional fees, net working capital finalization, and legal settlements from acquisition related activities.

(3)

Impairment consists of the write down of the DBCI Tradename intangible asset.

(4)

Adjustment for loss on extinguishment and modification of debt related to the write off of unamortized fees and third-party fees as a result of the debt modification completed in April 2024.

 
*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.
 
The Company has excluded a quantitative reconciliation of Adjusted EBITDA with respect to the Company’s 2024 guidance in the “2024 Financial Outlook” section under the “unreasonable efforts” exception in Item 10(e)(1)(i)(B) of Regulation S-K. Providing the most directly comparable GAAP financial measure, or a quantitative reconciliation thereto, cannot be done without unreasonable effort due to the inherent uncertainty and difficulty in predicting certain non-cash, material and/or non-recurring expenses or benefits, legal settlements or other matters, and certain tax positions. Because these adjustments are inherently variable and uncertain and depend on various factors that are beyond the Company's control, the Company is also unable to predict their probable significance. The variability of these items could have an unpredictable, and potentially significant, impact on our future GAAP financial results.

Janus International Group, Inc.

Reconciliation of Net Income to Adjusted Net Income*

(In millions)

 

 

Three Months Ended

 

Nine Months Ended

 

September 28, 2024

 

September 30, 2023

 

September 28, 2024

 

September 30, 2023

Net Income

$

11.8

 

 

$

37.0

 

 

$

70.1

 

 

$

100.0

 

Net Income Adjustments1

 

5.2

 

 

 

2.7

 

 

 

9.0

 

 

 

3.5

 

Tax Effect on Net Income Adjustments2

 

(1.3

)

 

 

(0.7

)

 

 

(2.3

)

 

 

(0.9

)

Non-GAAP Adjusted Net Income*

$

15.7

 

 

$

39.0

 

 

$

76.8

 

 

$

102.6

 

(1)

Net Income Adjustments for the three months ended September 28, 2024 include $0.4 restructuring charges, $2.8 impairment, and $2.0 acquisition expenses. Net Income adjustments for the nine months ended September 28, 2024 include $1.1 restructuring charges, $2.8 impairment, $3.4 acquisition expenses and $1.7 loss on extinguishment and modification of debt. Refer to the Adjusted EBITDA table above for further details.

(2)

The effective tax rates of 24.9% was used for the three and nine months ended September 28, 2024. The effective tax rates of 25.2% was used for the three and nine months ended September 30, 2023.

 

*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.

Janus International Group, Inc.

Adjusted EPS*

(In millions, except share and per share data)

 

 

Three Months Ended

 

September 28, 2024

 

September 30, 2023

Numerator:

 

 

 

GAAP Net Income

$

11.8

 

$

37.0

Non-GAAP Adjusted Net Income

$

15.7

 

$

39.0

Denominator:

 

 

 

Weighted average number of shares:

 

 

 

Basic

 

143,666,406

 

 

146,827,175

Adjustment for Dilutive Securities

 

614,846

 

 

166,690

Diluted

 

144,281,252

 

 

146,993,865

 

 

 

 

GAAP Basic EPS

$

0.08

 

$

0.25

GAAP Diluted EPS

$

0.08

 

$

0.25

Non-GAAP Adjusted Basic EPS

$

0.11

 

$

0.27

Non-GAAP Adjusted Diluted EPS

$

0.11

 

$

0.27

 

Nine Months Ended

 

June 29, 2024

 

July 1, 2023

Numerator:

 

 

 

GAAP Net Income

$

70.1

 

$

100.0

Non-GAAP Adjusted Net Income

$

76.8

 

$

102.6

Denominator:

 

 

 

Weighted average number of shares:

 

 

 

Basic

 

145,376,074

 

 

146,765,567

Adjustment for Dilutive Securities

 

544,789

 

 

73,741

Diluted

 

145,920,863

 

 

146,839,308

 

 

 

 

GAAP Basic EPS

$

0.48

 

$

0.68

GAAP Diluted EPS

$

0.48

 

$

0.68

Non-GAAP Adjusted Basic EPS

$

0.53

 

$

0.70

Non-GAAP Adjusted Diluted EPS

$

0.53

 

$

0.70

 

*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.

Janus International Group, Inc.

Free Cash Flow Conversion*

(In millions, except percentages)

 

 

Nine Months Ended

 

September 28, 2024

 

September 30, 2023

Cash Flow from Operating Activities

$

102.6

 

 

$

146.5

 

Less: Purchases of property plant and equipment

 

(14.0

)

 

$

(13.5

)

Free Cash Flow

$

88.6

 

 

$

133.0

 

 

 

 

 

Non-GAAP Adjusted Net Income

$

76.8

 

 

$

102.6

 

 

 

 

 

Free Cash Flow Conversion of Non-GAAP Adjusted Net Income

 

115

%

 

 

130

%

 

Trailing Twelve-Months Ended

 

September 28, 2024

 

September 30, 2023

Cash Flow from Operating Activities

$

171.0

 

 

$

172.4

 

Less: Purchases of property plant and equipment

 

(19.8

)

 

 

(14.4

)

Free Cash Flow

$

151.2

 

 

$

158.0

 

 

 

 

 

Non-GAAP Adjusted Net Income1

$

112.8

 

 

$

135.1

 

 

 

 

 

Free Cash Flow Conversion of Non-GAAP Adjusted Net Income

 

134

%

 

 

117

%

(1)

Trailing Twelve-month Adjusted Net Income for the period ended September 28, 2024 consists of the sum of Adjusted Net Income as reported in the Company’s Quarterly or Annual Reports, as applicable, of $35.9, $31.1, $30.1 and $15.7 for the periods ended December 30, 2023, March 30, 2024, June 29, 2024 and September 28, 2024, respectively. Trailing Twelve-month Adjusted Net Income for the period ended September 30, 2023 consists of the sum of Adjusted Net Income as reported in the Company’s Quarterly or Annual Reports, as applicable, of $32.7, $26.4, $37.0 and $39.0 for the periods ended December 31, 2022, April 1, 2023, July 1, 2023 and September 30, 2023, respectively.

 

*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.

Janus International Group, Inc.

Non-GAAP Net Leverage Ratio*

(In millions, except ratios)

 

 

September 28, 2024

 

December 30, 2023

Note payable - First Lien

$

600.0

 

$

623.4

Less: Cash

 

102.1

 

 

171.7

Net Debt*

$

497.9

 

$

451.7

 

 

 

 

Net Income (Trailing Twelve-Month periods ended)1

$

105.9

 

$

135.7

Adjusted EBITDA (Trailing Twelve-Month periods ended)2

$

248.2

 

$

285.6

 

 

 

 

Long-Term Debt to Net Income

 

5.7

 

 

4.6

Non-GAAP Net Leverage Ratio*

 

2.0

 

 

1.6

(1)

Trailing Twelve-months Net Income for the period ended September 28, 2024 consists of the sum of Net Income as reported in the Company’s Quarterly and Annual Reports, as applicable of $35.8, $30.7, $27.6 and $11.8 for the periods ended December 30, 2023, March 30, 2024, June 29, 2024 and September 28, 2024, respectively. Trailing Twelve-months Net Income for the period ended December 30, 2023 is Net Income as reported in the Company’s Annual Report on Form 10-K for the year ended December 30, 2023.

(2)

Trailing Twelve-months Adjusted EBITDA for the period ended September 28, 2024 consists of the sum of Adjusted EBITDA as reported in the Company’s Quarterly or Annual Reports, as applicable of $74.3, $66.3, $64.5 and $43.1 for the three month periods ended December 30, 2023, March 30, 2024, June 29, 2024 and September 28, 2024, respectively. Trailing Twelve-month Adjusted EBITDA for the period ended December 30, 2023 is Adjusted EBITDA as reported in the Company’s Annual Report on Form 10-K for the year ended December 30, 2023.

 

*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.

 

Investor Contacts, Janus

Sara Macioch

Senior Director, Investor Relations, Janus International

770-562-6399

IR@janusintl.com

Media Contacts, Janus

Suzanne Reitz

Vice President of Marketing, Janus International

770-746-9576

Marketing@Janusintl.com

Source: Janus International Group, Inc

FAQ

What was Janus International's (JBI) revenue in Q3 2024?

Janus International reported revenue of $230.1 million in Q3 2024, representing a 17.9% decrease from $280.1 million in Q3 2023.

How much did JBI's self-storage revenue decline in Q3 2024?

Janus International's self-storage revenue declined by 22.4% in Q3 2024 compared to the same period in 2023.

What is JBI's updated revenue guidance for full-year 2024?

Janus International updated its full-year 2024 revenue guidance to a range of $910 million to $925 million.

How many shares did JBI repurchase in Q3 2024?

Janus International repurchased 4.3 million shares for $45.5 million during Q3 2024.

Janus International Group, Inc.

NYSE:JBI

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