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Table of Contents
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM
 
10-Q
 
 
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 25, 2021
OR
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                 to                    
Commission file number:
001-40456
 
 
JANUS INTERNATIONAL GROUP, INC.
(Exact name of registrant as specified in its charter)
 
 
 
Delaware
(State or other jurisdiction of
incorporation or organization)
  
86-1476200
(I.R.S. Employer
Identification No.)
   
135 Janus International Blvd.
Temple, GA
(Address of principal executive offices)
  
30179
(Zip Code)
(866)
562-2580
(Registrant’s telephone number, including area code)
 
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of Each Class
  
Trading
Symbol(s)
  
Name of Each Exchange
on Which Registered
Common Stock, par value $0.0001 per share
Warrants, each to purchase one share of Common Stock
  
JBI
JBI WS
  
New York Stock Exchange
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes :  ☒    No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation
S-T
(§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes :  ☒    No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated
filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule
12b-2
of the Exchange Act.
 
Large accelerated filer      Accelerated filer  
       
Non-accelerated filer
     Smaller reporting company  
       
         Emerging growth company  
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  
Indicate by check mark whether the registrant is a shell company (as defined in Rule
12b-2
of the Exchange Act).    Yes :  ☐    No
 
 
As of November 5, 2021,
142,936,580 shares of Class A Common Stock, par value $0.0001, were issued and outstanding.
 
 
 

Table of Contents
JANUS INTERNATIONAL GROUP, INC.
Q
uarterly Report on Form
 
10-Q
TABLE OF CONTENTS
 
 
 
 
  
Page
 
  
 
3
 
Item 1.
 
  
 
3
 
Item 2.
 
  
 
26
 
Item 3.
 
  
 
55
 
Item 4.
 
  
 
56
 
  
 
58
 
Item 1.
 
  
 
58
 
Item 1A.
 
  
 
58
 
Item 2.
 
  
 
58
 
Item 3.
 
  
 
58
 
Item 4.
 
  
 
58
 
Item 5.
 
  
 
58
 
Item 6.
 
  
 
58
 
  
 
61
 

Table of Contents
PART I—FINANCIAL INFORMATION
Item 1. Financial Statements.
Janus International Group, Inc.
Consolidated Balance Sheets
 
 
    
September 25,
   
December 26,
 
    
2021
   
2020
 
     (Unaudited)        
ASSETS
                
Current Assets
                
Cash and cash equivalents
   $ 9,221,607     $ 45,254,655  
Accounts receivable, less allowance for doubtful accounts; $4,366,000 and $4,485,000, at September 25, 2021 and December 26, 2020, respectively
     101,680,287       75,135,295  
Costs and estimated earnings in excess of billing on uncompleted contracts
     23,602,670       11,398,934  
Inventory, net
     52,830,737       25,281,521  
Prepaid expenses
     8,851,831       5,949,711  
Other current assets
     3,505,602       5,192,386  
    
 
 
   
 
 
 
Total current assets
  
$
199,692,734
   
$
168,212,502
 
Property and equipment, net
     49,786,563       30,970,507  
Customer relationships, net
     319,339,643       309,472,398  
Tradename and trademarks
     107,958,402       85,597,528  
Other intangibles, net
     18,380,776       17,387,745  
Goodwill
     369,607,198       259,422,822  
Deferred tax asset, net
     63,616,900       —    
Other assets
     1,992,783       2,415,243  
    
 
 
   
 
 
 
Total assets
  
$
1,130,374,999
   
$
873,478,745
 
    
 
 
   
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
Current Liabilities
                
Accounts payable
   $ 56,817,373     $ 29,889,057  
Billing in excess of costs and estimated earnings on uncompleted contracts
     25,759,923       21,525,319  
Current maturities of long-term debt
     8,111,212       6,523,417  
Other accrued expenses
     62,209,935       37,164,627  
    
 
 
   
 
 
 
Total current liabilities
  
$
152,898,443
   
$
95,102,420  
 
Line of credit
     19,350,803      
 
 
 
Long-term debt, net
     706,927,275       617,604,254  
Deferred tax liability, net
           15,268,131  
Derivative warrant liability
     35,525,000       —    
Other long-term liabilities
     4,234,276       4,631,115  
    
 
 
   
 
 
 
Total liabilities
  
$
918,935,797
   
$
732,605,920
 
    
 
 
   
 
 
 
STOCKHOLDERS’ EQUITY
                
Common Stock, 825,000,000 shares authorized, $.0001 par value, 138,384,360 and 66,145,633 shares issued and outstanding at September 25, 2021 and December 26, 2020, respectively
     13,838       6,615  
Additional paid in capital
     231,407,780       189,298,544  
Accumulated other comprehensive loss
     (1,123,039     (227,160
Accumulated deficit
     (18,859,377     (48,205,174
    
 
 
   
 
 
 
Total stockholders’ equity
  
$
211,439,202
   
$
140,872,825
 
    
 
 
   
 
 
 
Total liabilities and stockholders’ equity
  
$
1,130,374,999
   
$
873,478,745
 
    
 
 
   
 
 
 
See accompanying Notes to the Unaudited Consolidated Financial Statements
 
3

Table of Contents
Janus International Group, Inc.
Consolidated Statements of Operations and Comprehensive Income
 
 
    
Three Months Ended
   
Nine Months Ended
 
    
September 25,
2021
   
September 26,
2020
   
September 25,
2021
   
September 26,
2020
 
     (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  
REVENUE
                                
Sales of product
   $ 155,669,772     $ 113,511,689     $ 417,922,304     $ 317,048,413  
Sales of services
     32,120,153       26,827,369       96,874,278       83,334,062  
    
 
 
   
 
 
   
 
 
   
 
 
 
Total revenue
     187,789,925       140,339,058       514,796,582       400,382,475  
Cost of Sales
     125,551,395       87,574,908       340,070,342       254,755,038  
    
 
 
   
 
 
   
 
 
   
 
 
 
GROSS PROFIT
     62,238,530       52,764,150       174,726,240       145,627,437  
OPERATING EXPENSE
                                
Selling and marketing
     12,065,859       7,823,145       31,906,155       25,800,711  
General and administrative
     24,947,491       18,309,277       78,318,621       52,875,943  
Contingent consideration and earnout fair value adjustments
     —         (2,875,248     686,700       (2,875,248
    
 
 
   
 
 
   
 
 
   
 
 
 
Operating Expenses
     37,013,350       23,257,174       110,911,476       75,801,406  
    
 
 
   
 
 
   
 
 
   
 
 
 
INCOME FROM OPERATIONS
     25,225,180       29,506,976       63,814,764       69,826,031  
Interest expense
     (7,663,536     (8,768,791     (23,265,333     (27,447,267
Other income (expense)
     90,873       319,091       (2,387,997     418,302  
Change in fair value of derivative warrant liabilities
     3,552,500       —         1,624,000       —    
    
 
 
   
 
 
   
 
 
   
 
 
 
Other Expense, Net
     (4,020,163     (8,449,700     (24,029,330     (27,028,965
    
 
 
   
 
 
   
 
 
   
 
 
 
INCOME BEFORE TAXES
     21,205,017       21,057,276       39,785,434       42,797,066  
Provision for Income Taxes
     3,527,275       284,282       6,265,664       1,054,574  
    
 
 
   
 
 
   
 
 
   
 
 
 
NET INCOME
   $ 17,677,742     $ 20,772,994     $ 33,519,770     $ 41,742,492  
    
 
 
   
 
 
   
 
 
   
 
 
 
Other Comprehensive Income (Loss)
     (1,169,565     3,339,777       (895,879     (418,283
    
 
 
   
 
 
   
 
 
   
 
 
 
COMPREHENSIVE INCOME
   $ 16,508,177     $ 24,112,771     $ 32,623,891     $ 41,324,209  
    
 
 
   
 
 
   
 
 
   
 
 
 
Net income attributable to common stockholders
   $ 17,677,742     $ 20,772,994     $ 33,519,770     $ 41,742,492  
    
 
 
   
 
 
   
 
 
   
 
 
 
Weighted-average shares outstanding, basic and diluted (Note 15)
                                
Basic
     138,384,284       65,875,152       95,179,726       65,773,907  
Diluted
     142,840,792       65,875,152       97,828,380       65,773,907  
Net income per share, basic and diluted (Note 15)
                                
Basic
   $ 0.13     $ 0.32     $ 0.35     $ 0.63  
Diluted
   $ 0.10     $ 0.32     $ 0.33     $ 0.63  
See accompanying Notes to the Unaudited Consolidated Financial Statements.
 
4

Table of Contents
Janus International Group, Inc.
Consolidated Statement of Changes in Stockholders’ Equity (Unaudited)
 
 
   
Class B

Common Units
   
Class A

Preferred Units
   
Common Stock
   
Additional
paid-in

capital
   
Accumulated
Other
Comprehensive
Income (Loss)
   
Accumulated

Equity
(Deficit)
   
Total
 
    Unit     Amount     Unit     Amount     Shares     Amount                          
Balance as of December 28, 2019
 
 
2,599
   
$
91,278
   
$
189,044
   
 
189,043,734
   
$
—  
 
 
$
—  
 
 
$
—  
   
$
(2,152,685
 
$
(56,088,082
 
$
130,894,245
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Retroactive application of the recapitalization
 
 
(2,599
 
$
(91,278
 
$
(189,044
 
 
(189,043,734
 
$
65,676,757
   
$
6,568
   
$
189,128,444
   
$
—  
 
 
$
—  
 
 
$
—  
 
Balance as of December 28, 2019, as adjusted
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
65,676,757
   
 
6,568
   
 
189,128,444
   
 
(2,152,685
 
 
(56,088,082
 
$
130,894,245
 
Vesting of Midco LLC class B units
    —         —         —         —         93,054       9       27,683       —         —         27,692  
Distributions to Janus Midco LLC Class A unitholders
    —         —         —         —         —         —         —         —         (54,484     (54,484
Cumulative translation adjustment
    —         —         —         —         —         —         —         (3,531,485     —         (3,531,485
Net income
    —         —         —         —         —         —         —                 9,952,030       9,952,030  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Balance as of March 28, 2020, as adjusted
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
65,769,811
   
 
6,577
   
 
189,156,127
   
 
(5,684,170
 
 
(46,190,536
 
 
137,287,998
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Vesting of Midco LLC class B units
    —         —         —         —         105,341       11       29,956       —         —         29,967  
Distributions to Janus Midco LLC Class A unitholders
    —         —         —         —         —         —         —         —         (285,498     (285,498
Cumulative translation adjustment
    —         —         —         —         —         —         —         (226,575     —         (226,575
Net income
    —         —         —         —         —         —         —         —         11,017,468       11,017,468  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Balance as of June 27, 2020, as adjusted
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
65,875,152
   
 
6,588
   
 
189,186,083
   
 
(5,910,745
 
 
(35,458,566
 
 
147,823,360
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Vesting of Midco LLC class B units
    —         —         —         —         177,426       18       60,593       —         —         60,611  
Distributions to Janus Midco LLC Class A unitholders
    —         —         —         —         —         —         —         —         (35,797,005     (35,797,005
Cumulative translation adjustment
    —         —         —         —         —         —         —         3,339,777       —         3,339,777  
Net income
    —         —         —         —         —         —         —         —         20,772,994       20,772,994  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Balance as of September 26, 2020, as adjusted
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
66,052,578
   
 
6,606
   
 
189,246,676
   
 
(2,570,968
 
 
(50,482,577
 
 
136,199,737
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
5

Table of Contents
Janus International Group, Inc.
Consolidated Statement of Changes in Stockholders’ Equity (Unaudited)
 
 
   
Class B

Common Units
   
Class A

Preferred Units
   
Common Stock
   
Additional
paid-in

capital
   
Accumulated
Other
Comprehensive
Income (Loss)
   
Accumulated

Equity
(deficit)
   
Total
 
    Unit     Amount     Unit     Amount     Shares     Amount                          
Balance as of December 26, 2020
 
 
4,478
   
$
261,425
   
$
189,044
   
 
189,043,734
   
$
—  
 
 
$
—  
 
 
$
—  
 
 
$
(227,160
 
$
(48,205,174
 
$
140,872,825
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Retroactive application of the recapitalization
    (4,478     (261,425     (189,044     (189,043,734     66,145,633       6,615       189,298,544       —         —         —    
Balance as of December 26, 2020, as adjusted
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
66,145,633
   
 
6,615
   
 
189,298,544
   
 
(227,160
 
 
(48,205,174
 
 
140,872,825
 
Vesting of Midco LLC class B units
    —         —         —         —         111,895       11       51,865       —         —         51,876  
Distributions to Class A preferred units
    —         —         —         —         —         —         —         —         (95,883     (95,883
Cumulative translation adjustment
    —         —         —         —         —         —         —         310,768       —         310,768  
Net income
    —         —         —         —         —         —         —         —         14,718,821       14,718,821  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Balance as of March 27, 2021, as adjusted
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
66,257,528
   
 
6,626
   
 
189,350,409
   
 
83,608
   
 
(33,582,236
 
 
155,858,407
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Vesting of Midco LLC class B units
    —         —         —         —         4,012,872       401       2,058,822       —         —         2,059,223  
Issuance of PIPE Shares
    —         —         —         —         25,000,000       2,500       249,997,500       —         —         250,000,000  
Issuance of common stock upon merger, net of transaction costs, earn out, and merger warrant liability
    —         —         —         —         41,113,850       4,111       226,939,423       —         —         226,943,534  
Issuance of earn out shares to common stockholders
    —         —         —         —         2,000,000       200       26,479,800       —         —         26,480,000  
Distributions to Janus Midco, LLC unitholders
    —         —         —         —         —         —         (541,710,278     —         —         (541,710,278
Distributions to Class A preferred units
    —         —         —         —         —         —         —         —         (4,078,090     (4,078,090
Deferred Tax Asset
    —         —         —         —         —         —         78,290,839       —         —         78,290,839  
Cumulative translation adjustment
    —         —         —         —         —         —         —         (37,082     —         (37,082
Net income
    —         —         —         —         —         —         —         —         1,123,207       1,123,207  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Balance as of June 26, 2021
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
138,384,250
   
 
13,838
   
 
231,406,515
   
 
46,526
   
 
(36,537,119
 
 
194,929,760
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Warrant Redemption
    —         —         —         —         110       —         1,265       —         —         1,265  
Cumulative translation adjustment
    —         —         —         —         —         —         —         (1,169,565     —         (1,169,565
Net income
    —         —         —         —         —         —         —         —         17,677,742       17,677,742  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Balance
 
as
 
of
 
September 25,
 
2021
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
138,384,360
   
 
13,838
   
 
231,407,780
   
 
(1,123,039
 
 
(18,859,377
 
 
211,439,202
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
See accompanying Notes to the Unaudited Consolidated Financial Statements
 
6

Table of Contents
Janus International Group, Inc.
Consolidated Statements of Cash Flows
 
    
Nine Months Ended
 
    
September 25,
2021
   
September 26,
2020
 
     (Unaudited)     (Unaudited)  
Cash Flows Provided By Operating Activities
                
Net income
   $ 33,519,770     $ 41,742,492  
Adjustments to reconcile net income to net cash provided by operating activities
                
Depreciation
     4,677,954       4,270,649  
Intangible amortization
     21,851,717       20,287,353  
Deferred finance fee amortization
     2,286,480       2,419,061  
Share based compensation
     2,111,099       118,270  
Loss on extinguishment of debt
     2,414,854       (257,545
Change in fair value of contingent consideration and earnout
     686,700       (2,875,248
Loss on sale of assets
     43,091       22,595  
Change in fair value of derivative warrant liabilities
     (1,624,000     —    
Undistributed (earnings) losses of affiliate
     75,565       (12,685
Deferred income taxes
     (767,658     237,359  
Changes in operating assets and liabilities
                
Accounts receivable
     (16,942,650     571,872  
Costs and estimated earnings in excess of billings and billings in excess of costs and estimated earnings on uncompleted contracts
     (12,101,214     1,392,227  
Prepaid expenses and other current assets
     (4,488,285     (2,846,461
Inventory
     (18,474,167     1,033,221  
Accounts payable
     18,409,091       1,011,609  
Other accrued expenses
     29,127,435       7,728,116  
Other assets and long-term liabilities
     (1,122,518     2,068,168  
    
 
 
   
 
 
 
Net Cash Provided By Operating Activities
     59,683,264       76,911,053  
    
 
 
   
 
 
 
Cash Flows Used In Investing Activities
                
Proceeds from sale of equipment
     79,409       7,348  
Purchases of property and equipment
     (15,930,575     (4,936,347
Cash paid for acquisition
s
, net of cash acquired
     (179,713,814     (4,472,105
    
 
 
   
 
 
 
Net Cash Used In Investing Activities
     (195,564,980     (9,401,104
    
 
 
   
 
 
 
Cash Flows Provided by (Used In) Financing Activities
                
Net borrowings on line of credit
     19,350,803       —    
Distributions to Janus Midco LLC unitholders
     (4,173,973     (36,136,986
Principal payments on long-term debt
     (64,824,518     (6,623,601
Proceeds from issuance of long term debt
     155,000,000       —    
Proceeds from merger
     334,873,727       —    
Proceeds from PIPE
     250,000,000       —    
Payments for transaction costs
     (44,489,256     —    
Payments to Janus Midco, LLC unitholders at the business combination
     (541,710,278     —    
Proceeds from warrant redemption
     1,265       —    
Payment of contingent consideration
     —         (3,923,271
Payments for deferred financing fees
     (4,320,821     —    
    
 
 
   
 
 
 
Cash Provided
By
(Used In
)
Financing Activities
   $ 99,706,948     $ (46,683,858
    
 
 
   
 
 
 
Effect of exchange rate changes on cash and cash equivalents      141,720       (1,003,090
    
 
 
   
 
 
 
Net (Decrease) Increase in Cash and Cash Equivalents
  
$
(36,033,048
 
$
19,823,001
 
    
 
 
   
 
 
 
Cash and Cash Equivalents, Beginning of Fiscal Year
  
$
45,254,655
   
$
19,905,598
 
    
 
 
   
 
 
 
Cash and Cash Equivalents as of September 25, 2021 and September 26, 2020
  
$
9,221,607
   
$
39,728,599
 
    
 
 
   
 
 
 
Supplemental Cash Flows Information
                
Interest paid
   $ 19,226,554     $ 20,231,744  
Income taxes paid
   $ 1,509,592     $ 848,831  
See accompanying Notes to the Unaudited Consolidated Financial Statements
 
7

Table of Contents
Janus International Group, Inc.
Notes to Unaudited Consolidated Financial Statements
 
1
.
Nature of Operations
Janus International Group, Inc. (“Group” or “Janus”) is a holding company. Janus International Group, LLC (“Janus Core”) is a wholly-owned subsidiary of Janus Intermediate, LLC (“Intermediate”). Intermediate is a wholly-owned subsidiary of Janus Midco, LLC (“Midco”) and Midco is a wholly-owned subsidiary of Group. These entities are all incorporated in the state of Delaware. The Group is a 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 with manufacturing operations in Georgia, Texas, Arizona, Indiana, North Carolina, United Kingdom, Australia, and Singapore.
The Group’s wholly owned subsidiary, Janus International Europe Holdings Ltd. (UK) (“JIE”), owns 100% of the equity of Janus International Europe Ltd. (UK), a company incorporated in England and Wales, and its subsidiary Steel Storage France (s.a.r.l), a company incorporated in France. JIE owns 100% of the equity for Active Supply & Design (CDM) Ltd. (UK) (“AS&D”), a company incorporated in England and Wales and 100% of the equity for Steel Storage Australia &
Steel Storage
Asia (“Steel Storage”), companies incorporated in Australia and Singapore.
The Group’s wholly owned subsidiary, Janus Cobb Holdings, LLC (“Cobb”), owns 100% of the equity of Asta Industries, Inc. (“ASTA”), a company incorporated in Georgia, and its subsidiary Atlanta Door Corporation, a company incorporated in Georgia. Cobb also owns 100% of the equity of Nokē, Inc. (“NOKE”), a company incorporated in Delaware, and Betco, Inc. (“BETCO”), a company also incorporated in Delaware.
On January 2, 2020, JIE purchased 100% of the outstanding shares of Steel Storage.
On January 18, 2021, the Group, through its wholly owned subsidiary Steel Storage acquired 100% of the net assets of G & M Stor-More Pty Ltd (“G&M”) as more fully described in
Note 9 – “Business Combinations.”
On August 18, 2021, the Group, through its wholly owned subsidiary Janus Core acquired 100%
of the equity interests of DBCI, LLC f/k/a Dingo NewCo, LLC (“DBCI”), a company incorporated in Delaware as more fully described in
Note 9 – “Business Combinations.”
On August 31, 2021, the Group, through its wholly owned subsidiary Janus Core acquired 100%
of the equity of Access Control Technologies, LLC (“ACT”), a company incorporated in North Carolina. Through this acquisition, the Group also acquired all assets and certain liabilities of Phoenix Iron Worx, LLC (“Phoenix”), a company incorporated in North Carolina as more fully described in
Note 9 – “Business Combinations.”
The Group’s business is operated through two
geographic regions that comprise our two reportable segments: Janus North America and Janus International. The Janus International segment is comprised of JIE, whose production and sales are largely in Europe and Australia. The Janus North America segment is comprised of all the other entities including Janus Core together with each of its operating subsidiaries BETCO, NOKE, ASTA, DBCI, ACT, Janus Door, LLC (“Janus Door”) and Steel Door Depot.com, LLC.
As of June 7, 2021, Janus Parent, Inc. (“Company”) consummated the business combination (the “Business Combination”) contemplated by the Business Combination Agreement, dated as of December 21, 2020 (as amended from time to time, the “Business Combination Agreement”), by and among Janus International Group, Inc. (f/k/a Janus Parent, Inc.), Juniper Industrial Holdings, Inc. (“Juniper” or “JIH”), a blank check company, JIH Merger Sub, Inc., a wholly-owned subsidiary of the Company (“JIH Merger Sub”), Jade Blocker Merger Sub 1, Inc., Jade Blocker Merger Sub 2, Inc., Jade Blocker Merger Sub 3, Inc., Jade Blocker Merger Sub 4, Inc., Jade Blocker Merger Sub 5, Inc. (collectively referred to as the “Blocker Merger Subs”), Clearlake Capital Partners IV
(AIV-Jupiter)
Blocker, Inc., Clearlake Capital Partners IV (Offshore)
(AIV-Jupiter)
Blocker, Inc., Clearlake Capital Partners V
(AIV-Jupiter)
Blocker, Inc., Clearlake Capital Partners V (USTE)
(AIV-Jupiter)
Blocker, Inc., Clearlake Capital Partners V (Offshore)
(AIV-Jupiter)
Blocker, Inc. (collectively referred to as the “Blockers”), Janus Midco, LLC (“Midco”), Jupiter Management Holdings, LLC, Jupiter Intermediate Holdco, LLC, J.B.I., LLC and Cascade GP, LLC, solely in its capacity as equityholder representative. Pursuant to the Business Combination Agreement, (i) JIH Merger Sub merged with and into Juniper with Juniper being the surviving corporation in the merger and a wholly-owned subsidiary of the Company, (ii) each of the Blocker Merger Subs merged with and into the corresponding Blockers with such Blocker being the surviving corporation in each such merger and a wholly-owned subsidiary of the Company, (iii) each other equityholder of Midco contributed or sold, as applicable, all of its equity interests in Midco to the Company or Juniper, as applicable, in exchange for cash, preferred units and/or shares of the Common Stock, as applicable, and (iv) the Company contributed all of the equity interests in Midco acquired pursuant to the foregoing transactions to Juniper, such that, as a result of the consummation of the Business Combination, Midco became an indirect wholly-owned subsidiary of Juniper. Refer to Note 9 – “Business Combinations” for further discussion on the Business Combination.
 
 
8

Table of Contents
Janus International Group, Inc.
Notes to Unaudited Consolidated Financial Statements
 
 
Immediately upon the completion of the Business Combination, Juniper and Midco became wholly-owned subsidiaries of Janus International Group, Inc. The Group’s common stock and warrants issued to the public shareholders are currently traded on the New York Stock Exchange under the symbols “JBI” and “JBI WS”, respectively.
Assets held at foreign locations were approximately $56,439,000 and $53,424,000 as of September 25, 2021 and December 26, 2020, respectively. Revenues earned at foreign locations totaled approximately $17,824,000 and $12,621,000 for the three months ended September 25, 2021 and September 26, 2020 and $48,729,000 and $32,165,000 for the nine months ended September 25, 2021 and September 26, 2020, respectively.
2. Summary of Significant Accounting Policies
Unaudited Interim Financial Statements
The accompanying consolidated balance sheet as of September 25, 2021, consolidated statements of operations and comprehensive income and consolidated statements of stockholders’ equity for the three and nine months ended September 25, 2021 and September 26, 2020, respectively and consolidated statements of cash flows for the nine months ended September 25, 2021 and September 26, 2020, are unaudited
.
These financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information. However, they do not include all of the financial information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of the Company’s management, the unaudited consolidated financial statements include all adjustments necessary for the fair presentation of the Company’s balance sheet as of September 25, 2021, and its results of operations, including its comprehensive income and stockholders’ equity for the three and nine months ended September 25, 2021 and September 26, 2020, and its cash flows for the nine months ended September 25, 2021 and September 26, 2020. The results for the three and nine months ended September 25, 2021 are not necessarily indicative of the results to be expected for any subsequent quarter or for the fiscal year ending January 1, 2022. These unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Form S-1 (as amended), initially filed with the Securities and Exchange Commission (the “SEC”) on July 7, 2021 and declared effective by the staff of the SEC on August 6, 2021, including the final prospectus dated August 6, 2021 (including supplements to the prospectus filed from time to time).
Basis of Presentation
The accompanying consolidated financial statements are presented in U.S. dollars and have been prepared in accordance with U.S. GAAP and pursuant to the accounting and disclosure rules and regulations of the SEC for interim financial information.
The Business Combination, completed as of June 7, 2021, was accounted for as a reverse recapitalization in accordance with U.S. GAAP. Under this method of accounting, JIH is treated as the acquired company and Midco is treated as the acquirer for financial statement reporting purposes (the “Combined Company”). Midco has been determined to be the accounting acquirer based on an evaluation of the following facts and circumstances:
 
   
Janus Midco equityholders have the majority ownership and voting rights
 in the Combined
 Company
. The relative voting rights is equivalent to equity ownership (each share of common stock is one vote). JIH shareholders (IPO investors, founders, PIPE investors) hold 49.2% voting interest compared to Janus Midco’s 50.8% voting interest.
 
   
The board of directors of the Combined Company is composed of nine directors, with Janus Midco equity holders having the ability to elect or appoint a majority of the board of directors in the Combined Company.
 
   
Janus Midco’s senior management are the senior management of the Combined Company.
 
   
The Combined Company has assumed the Janus name.
Accordingly, for accounting purposes, the financial statements of the Combined Company represent a continuation of the financial statements of Midco with the acquisition being treated as the equivalent of Midco issuing stock for the net assets of JIH, accompanied by a recapitalization. The net assets of JIH will be stated at historical cost, with no goodwill or other intangible assets recorded. Midco is deemed to be the predecessor of the Company, and the consolidated assets and liabilities and results of operations prior to the Closing Date (for the year ended December 26, 2020 and the three and nine months ended September 26, 2020) are those of Midco. The shares and corresponding capital amounts and net income (loss) per share available to common stockholders, prior to the Business Combination, have been retroactively restated to reflect the exchange ratio established in the Business Combination Agreement.
One-time
direct and incremental transaction costs incurred by the Company were recorded based on the activities to which the costs relate and the structure of the transaction. The costs relating to the issuance of equity is recorded as a reduction of the amount of equity raised, presented in additional paid in capital, while all costs related to the warrants and contingent consideration were estimated and charged to expense.
 
9

Table of Contents
Janus International Group, Inc.
Notes to Unaudited Consolidated Financial Statements
 
 
Principles of Consolidation
The consolidated financial statements include the accounts of the
Group
and its wholly owned subsidiaries. The Company’s joint venture is accounted for under the equity method of accounting. All significant intercompany accounts and transactions have been eliminated in consolidation.
Reclassification
In the third quarter of 2021, the Group reclassified the change in fair value of earnout recorded in June 2021 from general and administrative expense to contingent consideration and earnout fair value adjustments within operating expenses in the Consolidated Statements of Operations and Comprehensive Income
.
Reorganization
As of June 7, 2021, Midco transferred its wholly owned direct subsidiary Janus
 
Core, to the Group, thereby transferring the business for which historical financial information is included in these results of operations, to be indirectly held by Midco.
Use of Estimates in the Consolidated Financial Statements
The preparation of consolidated financial statements in conformity with U.S GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Significant items subject to such estimates and assumptions include, but are not limited to, the fair value of contingent consideration, the fair value of assets and liabilities related to acquisitions, the derivative warrant liability, the recognition of the valuations and unit-based compensation arrangements, the useful lives of property and equipment, revenue recognition, allowances for uncollectible receivable balances, fair values and impairment of intangible assets and goodwill and assumptions used in the recognition of contract assets.
Coronavirus Outbreak
The
COVID-19
outbreak will continue to have a negative impact on our operations, supply chain, transportation networks and customers. The impact on our business and the results of operations included temporary closure of our operating locations, or those of our customers or suppliers, among others. In addition, the ability of our employees and our suppliers’ and customers’ employees to work may be significantly impacted by individuals contracting or being exposed to
COVID-19,
which may significantly hamper our production throughout the supply chain and constrict sales channels. The extent of these factors are uncertain and cannot be predicted. Our consolidated financial statements reflect estimates and assumptions made by management as of September 25, 2021. Events and changes in circumstances arising after September 25, 2021, including those resulting from the impacts of
COVID-19
pandemic, will be reflected in management’s estimates for future periods.
Emerging Growth Company
Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies are required to comply with the new or revised financial accounting standards. The Company qualifies as an “Emerging Growth Company” and has elected to use the extended transition period for complying with new or revised accounting standards under Section 102(b)(1) of the JOBS Act. This election allows the Company to adopt the new or revised standard at the same time periods as private companies.
Shipping and Handling (Revenue & Cost of Sales)
The Company records all amounts billed to customers in sales transactions related to shipping and handling as revenue earned for the goods provided. Shipping and handling costs are included in cost of sales. Shipping and handling costs were approximately $8,562,000 and $5,993,000 and $24,136,000 and $17,729,000 for the three and nine months ended September 25, 2021 and September 26, 2020, respectively.
 
10

Table of Contents
Janus International Group, Inc.
Notes to Unaudited Consolidated Financial Statements
 
 
Inventories
Inventories are measured using the
first-in,
first-out
(FIFO) method. Labor and overhead costs associated with inventory produced by the Company are capitalized. Inventories are stated at the lower of cost or net realizable value as of September 25, 2021 and December 26, 2020. The Company has recorded a reserve for inventory obsolescence as of September 25, 2021 and December 26, 2020, of approximately $1,672,000 and $1,964,000, respectively.
Property and Equipment
Property and equipment acquired in business combinations are recorded at fair value as of the acquisition date and are subsequently stated less accumulated depreciation. Property and equipment otherwise acquired are stated at cost less accumulated depreciation. Depreciation is charged to expense on the straight-line basis over the estimated useful life of each asset. Leasehold improvements are amortized over the shorter of the lease term or their respective useful lives. Maintenance and repairs are charged to expense as incurred.
The estimated useful lives for each major depreciable classification of property and equipment are as follows
Manufacturing machinery and equipment
    
3-7 years
 
Office furniture and equipment
    
3-7
years
 
Vehicles
    
3-10 years
 
Leasehold improvements
    
3-20
years
 
Other Current Assets
Other current assets as of September 25, 2021 consists primarily of other receivables and net VAT taxes of approximately $3,506,000. As of December 26, 2020, other current assets consists primarily of other receivables, net VAT taxes and deferred transaction costs associated with the Business Combination with Juniper of approximately $3,444,000.
Fair Value Measurement
The Company uses valuation approaches that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. A three-tiered hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value. This hierarchy requires that the Company use observable market data, when available, and minimize the use of unobservable inputs when determining fair value:
 
 
 
Level 1, observable inputs such as quoted prices in active markets;
 
 
 
Level 2, inputs other than the quoted prices in active markets that are observable either directly or indirectly; and
 
 
 
Level 3, unobservable inputs in which there is little or no market data, which requires that the Company develop its own assumptions.
The fair value of cash, accounts receivable, less allowance for doubtful accounts and account payable approximate the carrying amounts due to the short-term maturities of these instruments which fall within Level 1 of the Fair Value hierarchy. The fair value of the Company’s debt approximates its carrying amount as of September 25, 2021 and December 26, 2020 due to its variable interest rate that is tied to the current London Interbank Offered Rate (“LIBOR”) rate plus an applicable margin and consistency in our credit rating. To estimate the fair value of the Company’s long term debt, the Company utilized fair value based risk measurements that are indirectly observable, such as credit risk that falls within Level 2 of the Fair Value hierarchy. As of September 25, 2021, the public warrants were valued at market price. The fair value of the private warrants contains significant unobservable inputs including the expected term and volatility. Therefore, the private warrant liabilities were evaluated to be a Level 3 fair value measurement. The fair value of private warrants is estimated using a Binomial Lattice in a risk-neutral framework. Specifically, the future stock price of the Company is modeled assuming a Geometric Brownian Motion (GBM) in a risk-neutral framework. For each modeled future price, the warrant payoff is calculated based on the contractual terms, and then discounted at the term-matched risk-free rate. Finally, the value of the private warrants was calculated as the probability-weighted present value over all future modeled payoffs. The following assumptions were used for the valuation of the private warrants:
 
Warrant term (yrs.)
  
 
4.7
 
Volatility
  
 
30.4
Risk-free rate
  
 
0.91
Dividend yield
  
 
The change in the fair value of warrant liabilities is as follows:
 
Balance at June 26, 2021
  
$
39,077,500
 
Change in fair value of warrants
  
 
(3,552,500
 
  
 
 
 
Balance at September 25, 2021
  
$
35,525,000
 
 
  
 
 
 
 
11

Table of Contents
Janus International Group, Inc.
Notes to Unaudited Consolidated Financial Statements
 
 
Warrant Liability
The Company classifies Private Placement Warrants (defined and discussed in Note 11 – “Stockholders’ Equity”) as liabilities. At the end of each reporting period, changes in fair value during the period are recognized as a component of other income (expense), net within the consolidated statements of operations and comprehensive income. The Company will continue to adjust the warrant liability for changes in fair value until the earlier of a) the exercise or expiration of the warrants or b) the redemption of the warrants, at which time the warrants will be reclassified to additional
paid-in
capital. On October 13, 2021, the Group announced that the
 
Company will redeem all of its outstanding warrants which is further discussed in Note 18 – “Subsequen
t
 Events.”
Recently Issued Accounting Pronouncements Not Yet Adopted
In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU
2016-13,
 
Financial Instruments—Credit Losses:
 
Measurement of Credit Losses on Financial Instruments (Topic 326), which changes the impairment model for most financial assets. The new model uses a forward-looking expected loss method, which will generally result in earlier recognition of allowances for losses. ASU
2016-13,
as subsequently amended for various technical issues, is effective for emerging growth companies following private company adoption dates for fiscal years beginning after December 15, 2022 and for interim periods within those fiscal years. The Company is currently evaluating the impact of this standard to the consolidated financial statements.
In January 2017, the FASB issued ASU
2017-04,
Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This update removes Step 2 of the goodwill impairment test under current guidance, which requires a hypothetical purchase price allocation. The new guidance requires an impairment charge to be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. Upon adoption, the guidance is to be applied prospectively. ASU
2017-04
is effective for Emerging Growth Companies in fiscal years beginning after December 15, 2021, with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the impact of the adoption of ASU
2017-04
on the consolidated financial statements and does not expect a significant impact of the standard on the consolidated financial statements.
In March 2020, the FASB issued ASU
2020-04,
Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This standard provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The ASU is effective and may be applied beginning March 12, 2020, and will apply through December 31, 2022. Janus is currently evaluating the impact this adoption will have on Janus’s consolidated financial statements. In January 2021, the FASB issued ASU
No. 2021-01,
Reference Rate Reform (Topic 848) (“ASU
2021-01”).
The amendments in ASU
2021-01
provide optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference the LIBOR or another reference rate expected to be discontinued because of the reference rate reform. The provisions must be applied at a Topic, Subtopic, or Industry Subtopic level for all transactions other than derivatives, which may be applied at a hedging relationship level.
In June 2020, the FASB issued ASU
2020-05,
Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842) which deferred the effective date for ASC 842, Leases, for one year.
T
he leasing standard will be effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption would continue to be allowed. The Company is evaluating the impact the standard will have on the consolidated financial statements; however, the standard is expected to have a material impact on the consolidated financial statements due to the recognition of additional assets and liabilities for operating leases.
In August 2020, the FASB issued ASU
2020-06,
Debt - Debt with Conversion and Other Options (Subtopic
470-20)
and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic
815-40):
Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the accounting for certain convertible instruments, amends guidance on derivative scope exceptions for contracts in an entity’s own equity, and modifies the guidance on diluted earnings per share (EPS) calculations as a result of these changes. The standard will be effective for Janus beginning February 7, 2022 and can be applied on either a fully retrospective or modified retrospective basis. Early adoption is permitted for fiscal years beginning after December 15, 2020. Janus is currently evaluating the impact of this standard on Janus’s consolidated financial statements.
In May 2021, the FASB issued ASU
2021-04,
Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic
470-50),
Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic
815-40)
Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options. ASU
2021-04
addresses issuer’s accounting for certain modifications or exchanges of freestanding equity-classified written call options. ASU
2021-04
is effective for fiscal years beginning after December 15, 2021 and interim periods within those fiscal years, with early adoption permitted. The Group does not expect adoption of the new guidance to have a significant impact on
the consolidated
financial statements.
 
12

Table of Contents
Janus International Group, Inc.
Notes to Unaudited Consolidated Financial Statements
 
 
Although there are several other new accounting pronouncements issued or proposed by the FASB, w
hich ha
ve been adopted or will be adopted as applicable, management does not believe any of these accounting pronouncements has had or will have a material impact on the Group’s consolidated financial position or results of operations.
3. Inventories
The major components of inventories at :
 
    
September 25,
    
December 26,
 
    
2021
    
2020
 
Raw materials
   $ 38,852,320      $ 17,431,731  
Work-in-process
     838,389        637,109  
Finished goods
     13,140,028        7,212,681  
    
 
 
    
 
 
 
    
$
52,830,737
    
$
25,281,521
 
4. Property and Equipment
Property, equipment, and other fixed assets as of September 25, 2021 and December 26, 2020 are as follows:
 
    
September 25,
    
December 26,
 
    
2021
    
2020
 
Land
   $ 4,501,295      $ 3,361,295  
Manufacturing machinery and equipment
     34,913,905        26,446,933  
Leasehold improvements
     5,204,632        5,127,065  
Construction in progress
     11,127,210        2,170,193  
Other
     12,725,431        8,084,391  
    
 
 
    
 
 
 
     $ 68,472,473      $ 45,189,877  
Less
accumulated
depreciation
     (18,685,910      (14,219,370
    
 
 
    
 
 
 
    
$
49,786,563
    
$
30,970,507
 
    
 
 
    
 
 
 
                 
5. Acquired Intangible
Assets
and Goodwill
Intangible assets acquired in a business combination (see Note 9 – “Business Combinations”) are recognized at fair value and amortized over their estimated useful lives. The carrying basis and accumulated amortization of recognize
d in
tangible assets at September 25, 2021 and December 26, 2020, are as follows:
 
    
September 25,
    
December 26,
 
    
2021
    
2020
 
     Gross Carrying
Amount
     Accumulated
Amortization
     Average
Remaining
Life in
Years
     Gross Carrying
Amount
     Accumulated
Amortization
 
Intangible Assets
                                            
Customer
relationships
   $ 410,021,868      $ 90,682,225     
 
12
 
   $ 380,862,639      $ 71,390,241  
Noncompete agreements
     411,010        238,732        6        412,949        151,028  
Tradenames and trademarks
     107,958,402        —          Indefinite        85,597,528        —    
Other intangibles
     61,831,402        43,622,904        6        58,404,905        41,279,081  
    
 
 
    
 
 
             
 
 
    
 
 
 
    
$
580,222,682
    
$
134,543,861
             
$
525,278,021
    
$
112,820,350
 
    
 
 
    
 
 
             
 
 
    
 
 
 
Changes to gross carrying amount of recognized intangible assets due to translation adjustments include an approximate $369,000 and $997,000 loss for the period ended September 25, 2021 and December 26, 2020, respectively. Amortization expense was approximately $8,229,000 and $6,892,000 and $21,852,000 and $20,287,000 for the three and nine months ended September 25, 2021 and September 26, 2020, respectively.
 
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Table of Contents
Janus International Group, Inc.
Notes to Unaudited Consolidated Financial Statements
 
 
The changes in the carrying amounts of goodwill for the period ended September 25, 2021 were as follows:
 
Balance as of December 26, 2020
  
$
259,422,822
 
    
 
 
 
Goodwill acquired during the period
     110,641,756  
Changes due to foreign currency fluctuations
     (457,380 )
    
 
 
 
Balance as of September 25, 2021
  
$
369,607,198
 
    
 
 
 
6. Accrued Expenses
Accrued expenses are summarized as follows:
 
    
September 25,
    
December 26,
 
    
2021
    
2020
 
Sales tax payable
   $ 2,132,147      $ 1,324,696  
Interest payable
     6,576,691        4,832,590  
Contingent consideration payable - short term
     4,000,000        4,000,000  
Other accrued liabilities
     1,998,182        5,294,414  
Employee compensation
     10,088,860        6,090,304  
Customer deposits and allowances
     25,179,906        10,780,783  
Other
     12,234,149        4,841,840  
    
 
 
    
 
 
 
Total
  
$
62,209,935
    
$
37,164,627
 
    
 
 
    
 
 
 
Other accrued liabilities consist primarily of deferred transaction costs of $0 and $3,337,000 as of September 25, 2021 and December 26, 2020, respectively. Other consists primarily of property tax, freight accrual, Federal and State income taxes, legal, accounting and other professional fees.
7. Line of Credit
On February 12, 2018, the Company, through Intermediate
 
and Janus Core, entered into a revolving line of credit facility with a financial institution. In August 2021, the Company increased the available line of credit from $50,000,000 to $80,000,000, incurred additional fees for this amendment of $425,000 and extended the maturity date from February 18, 2023 to August 12, 2024. The current line of credit facility is for $80,000,000 with interest payments due in arrears. The interest rate on the facility is based on a base rate, unless a LIBOR Rate option is chosen by the Company. If the LIBOR Rate is elected, the interest computation is equal to the LIBOR Rate plus the LIBOR Rate Margin. If the Base Rate is elected, the interest computation is equal to the Base Rate plus the Base Rate Margin. At the beginning of each quarter the applicable margin is set and determined by the administrative agent based on the average net availability on the line of credit for the previous quarter. As of September 25, 2021 and December 26, 2020, the interest rate in effect for the facility was 3.5%. The line of credit is collateralized by accounts receivable and inventories. The Company has incurred deferred loan costs in the amount of $1,483,000 which are being amortized over the term of the facility that expires on August 12, 2024, using the effective interest method. The amortization of the deferred loan costs is included in interest expense on the consolidated statements of operations and comprehensive income. The unamortized portion of the fees as of September 25, 2021 and December 26, 2020 was approximately $740,000 and $448,000, respectively. There was $19,350,803 and $0 outstanding balance on the line of credit as of September 25, 2021 and
December 26, 2020, respectively.
 
14

Table of Contents
Janus International Group, Inc.
Notes to Unaudited Consolidated Financial Statements
 
 
8. Long-Term Debt
Long-term debt consists of the following:
    
September 25,
    
December 26,
 
    
2021
    
2020
 
Note payable—First Lien
   $         $ 562,363,000  
Note payable—First Lien B2
               73,875,000  
Note payable—Amendment No. 4 First Lien
     726,413,482            
Notes payable—Auto Loans
     92,684            
    
 
 
    
 
 
 
    
 
726,506,166
    
 
636,238,000
 
Less unamortized deferred finance fees
     11,467,679        12,110,329  
Less current maturities
     8,111,212        6,523,417  
    
 
 
    
 
 
 
Total long-term debt
  
$
706,927,275
    
$
617,604,254
 
    
 
 
    
 
 
 
Notes Payable – First Lien and First Lien B2
The
First Lien notes payable was comprised of a syndicate of lenders that originated on February 12, 2018, in the amount of $470,000,000 with interest payable in arrears. The Company subsequently entered into the first amendment of the First Lien notes payable on March 1, 2019, to issue an additional tranche of the notes payable in the amount of $75,000,000 (First Lien B2), and the second amendment of the First Lien notes payable on August 9, 2019, to increase the first tranche of the notes payable by $106,000,000. Both tranches bore interest, as chosen by the Company, at a floating rate per annum consisting of LIBOR plus an applicable margin percent, and were secured by substantially all business assets. On July 21, 2020, the Company repurchased $1,989,000 principal amount of the First Lien (the “Open Market Purchase”) at an approximate $258,000 discount, resulting in a gain on the extinguishment of debt of approximately $258,000. Following the repurchase of the First Lien in the Open Market Purchase, approximately $573,000,000 principal amount of the 1st Lien remained outstanding. The total interest rate for the First Lien was 4.75% as of December 26, 2020. Unamortized debt issuance costs were approximately $10,304,000 at December 26, 2020.
The First Lien B2 was comprised of a syndicate of lenders that originated on March 1, 2019, in the amount of $75,000,000 with interest payable in arrears. The outstanding loan balance was to be repaid on a quarterly basis of 0.25% of the original balance beginning the last day of June 2019 with the remaining principal due on the maturity date of February 12, 2025. As chosen by the Company, the First Lien B2 notes payable bore interest at a floating rate per annum consisting of LIBOR plus an applicable margin percent (total rate of 5.50% as of December 26, 2020.) The debt was secured by substantially all business assets. Unamortized debt issuance costs were approximately $1,806,000 as of December 26, 2020.
Notes Payable – Amendment No. 3 First Lien
As of February 
5, 2021, the Company completed a repricing of its First Lien and First Lien B2 Term Loans, in which the principal terms of the amendment were a reduction in the overall interest rate based upon the loan type chosen and a consolidation of the prior two outstanding tranches into a single tranche of debt with the syndicate. The Amendment No.
 
3 First Lien was comprised of a syndicate of lenders originating on February 5, 2021 in the amount of $634,607,000 with interest payable in arrears. The outstanding loan balance
was
 to be repaid on a quarterly basis of 0.25% of the original balance beginning the last day of September 2021 with the remaining principal due on the maturity date of February 12, 2025. As chosen by the Company, the amended loan bears interest at a floating rate per annum consisting of LIBOR, plus an applicable margin percent (total rate of 4.25% as of September 25, 2021). The debt
was
 secured by substantially all business assets.
As a result of the repricing transaction, the Company recognized a loss on extinguishment of approximately $1,421,000. The loss is included in Other income (expense) on the Consolidated Statements of Operations and Comprehensive Income.
As of June 7, 2021 and as a result of the Business Combination, the Company repaid approximately $61,600,000 of debt and recognized a loss on extinguishment of approximately $994,000. The loss is included in Other income (expense) on the Consolidated Statements of Operations and Comprehensive Income.
Notes Payable – Amendment No. 4 First Lien
On
August 18, 2021, the Company completed a refinancing of its First Lien Amendment No. 3, in which the principal terms of the amendment were new borrowings of $155,000,000
which was used to fund the DBCI acquisition. The Amendment No. 4 First Lien is comprised of a syndicate of lenders originating on August 18, 2021 in the amount of
$726,413,000 with interest payable in arrears. The
 
outstanding loan balance is to be repaid on a quarterly basis of 0.25% of the original balance beginning the last day of September 2021 with the remaining principal due on the maturity date of February 12, 2025. As chosen by the Company, the amended loan bears interest at a floating rate per annum consisting of LIBOR, plus an applicable margin percent (total rate of 4.25% as of September 25, 2021). The debt is secured by substantially all business assets. Unamortized debt issuance costs are approximately $11,468,000 at September 25, 2021. This refinancing amendment was accounted for as modification and as such no gain or loss was recognized for this transaction and any third party fees were expensed with bank fees, original issue discount and charges capitalized and are being amortized as a component of interest expense over the remaining loan term.
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Table of Contents
Janus International Group, Inc.
Notes to Unaudited Consolidated Financial Statements 
 
 
Notes Payable – Auto Loans
With the acquisition of ACT (see Note 9 – “Business Combinations”), the
Group acquired various loans secured by automobiles used by ACT to service customers. The loans outstanding balances at September 25, 2021 are approximately
$93,000 and have interest rates ranging from 4.29% to 8.35%, are secured by the individual vehicles and have remaining terms of 1 to 4 years.
The loans have approximate m
o
nthly payments ranging from
$400 to $1,200.