Janus International Group Reports Third Quarter 2024 Financial Results
Delivered
Generated Net Incomeof
Achieved an Adjusted EBITDA of
Deployed
Announced Structural Cost Reduction Plan
Updated Full-year 2024 Revenue and Adjusted EBITDA Guidance
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 totalSelf-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 approximately850basis 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
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
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
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
Non-GAAP Financial Measures
Janus uses measures of performance that are not required by or presented in accordance with GAAP in
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.
|
Consolidated Statements of Operations and Comprehensive Income (In millions, except share and per share data - Unaudited) |
|||||||||||||||
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|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
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|
|
|
|
|
|
|
|
||||||||
|
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 |
|
|
|
|
|
|
|
|
|
|
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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 |
|
|
|
|
|
|
|
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Basic |
$ |
0.08 |
|
|
$ |
0.25 |
|
|
$ |
0.48 |
|
|
$ |
0.68 |
|
|
Diluted |
$ |
0.08 |
|
|
$ |
0.25 |
|
|
$ |
0.48 |
|
|
$ |
0.68 |
|
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Consolidated Balance Sheets (In millions, except share and per share data - Unaudited) |
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ASSETS |
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Current Assets |
|
|
|
||||
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Cash and cash equivalents |
$ |
102.1 |
|
|
$ |
171.7 |
|
|
Accounts receivable, less allowance for credit losses of |
|
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 |
|
|
|
|
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, |
$ |
— |
|
|
$ |
— |
|
|
|
|
(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 |
|
|
Consolidated Statements of Cash Flows (In millions - Unaudited) |
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|
|
Nine Months Ended |
||||||
|
|
|
|
|
||||
|
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 |
|
|
$ |
— |
|
|
Revenue by Sales Channel (In millions, except percentages) |
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|
|
Three Months Ended |
|
Variance |
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|
Consolidated |
|
|
% of sales |
|
|
|
% 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 |
)% |
|
|
$ |
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 |
|
|
% of sales |
|
|
|
% 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 |
)% |
|
Reconciliation of Net Income to EBITDA* and Adjusted EBITDA* (In millions, except percentages) |
|||||||||||||
|
|
Three Months Ended |
|
Variance |
||||||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
$ |
|
% |
||||||||
|
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 |
||||||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
$ |
|
% |
||||||||
|
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 |
|
| *Janus uses measures of performance that are not required by or presented in accordance with GAAP in |
||
| 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. | ||
|
Reconciliation of Net Income to Adjusted Net Income* (In millions) |
|||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
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 |
|
| (2) |
The effective tax rates of 24.9% was used for the three and nine months ended |
|
|
|
||
| *Janus uses measures of performance that are not required by or presented in accordance with GAAP in |
||
|
Adjusted EPS* (In millions, except share and per share data) |
|||||
|
|
Three Months Ended |
||||
|
|
|
|
|
||
|
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 |
|
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 |
||||
|
|
|
|
|
||
|
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 |
|
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 |
|||||
|
Free Cash Flow Conversion* (In millions, except percentages) |
|||||||
|
|
Nine Months Ended |
||||||
|
|
|
|
|
||||
|
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 |
||||||
|
|
|
|
|
||||
|
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 |
|
|
|
||
| *Janus uses measures of performance that are not required by or presented in accordance with GAAP in |
||
|
Non-GAAP Net Leverage Ratio* (In millions, except ratios) |
|||||
|
|
|
|
|
||
|
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 |
|
|
(2) |
Trailing Twelve-months Adjusted EBITDA for the period ended |
|
|
|
||
| *Janus uses measures of performance that are not required by or presented in accordance with GAAP in |
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20241029640490/en/
Investor Contacts, Janus
Senior Director, Investor Relations,
770-562-6399
IR@janusintl.com
Media Contacts, Janus
Vice President of Marketing,
770-746-9576
Marketing@Janusintl.com
Source:
