Janus International Group Reports Second Quarter 2022 Financial Results

Delivered 42.2% revenue growth, including 27.4% organic improvement

Delivered over 41% increase in Adjusted EBITDA to $50.7 million; Net Income grew to $22.8 million

Sequential Adjusted EBITDA margin improvement of approximately 100 basis points from Q1 2022 and over 200 basis points from Q4 2021

Sequential Net Income growth of approximately 16% from Q1 2022 and over 122% from Q4 2021

Raises full-year 2022 revenue and Adjusted EBITDA outlook

TEMPLE, Ga.--(BUSINESS WIRE)-- Janus International Group, Inc. (NYSE: JBI) (“Janus” or the “Company”), a leading provider of cutting-edge access control technologies and building product solutions for the self-storage and other commercial and industrial sectors, today announced financial results for the second quarter ended July 2, 2022.

Second Quarter 2022 Highlights

  • Revenues of $247.7 million, a 42.2% increase compared to $174.2 million for the second quarter of 2021, driven primarily by strong performance across all sales channels, including Commercial and Other up 81.6%, Restore, Rebuild & Replace (“R3”) up 34.3%, and New Construction up 17.3%, along with a $25.8 million contribution from the 2021 acquisitions of DBCI and ACT.
  • Adjusted EBITDA (defined as net income plus the corresponding add-backs shown in the Adjusted EBITDA reconciliation tables below) of $50.7 million, a 41.1% increase compared to $35.9 million for the second quarter of 2021, driven by increased revenue from all sales channels, partially offset by incremental general and administrative expenses. Adjusted EBITDA as a percentage of revenues was 20.5%, a decrease of approximately 10 basis points from the prior year period due primarily to higher costs impacting raw material, labor and logistics in advance of commercial actions and productivity initiatives taking full effect, as well as incremental costs associated with being a public company. However, as a result of volume growth, productivity initiatives and commercial actions, Adjusted EBITDA margins increased by approximately 100 basis points over the first quarter of 2022 and over 200 basis points over the fourth quarter of 2021.
  • Net income was $22.8 million, or $0.16 per diluted share, compared to a $1.7 million loss, or $(0.02) per diluted share in the second quarter of 2021.
  • Adjusted Net Income (defined as Net Income plus the corresponding tax-adjusted add-backs shown in the Adjusted Net Income reconciliation tables below) of $24.8 million, up 20.4% compared to $20.6 million in the second quarter of 2021. Adjusted Net Income per diluted share was $0.17, compared to $0.25 per diluted share in the prior year quarter. The decrease in Adjusted Net Income per diluted share versus the prior year quarter was due to the increase in the weighted average number of outstanding shares as a result of the business combination in June of 2021, partially offset by higher Adjusted Net Income.
  • Operating cash flow of $18.4 million compared to $19.3 million in the second quarter of 2021. Free cash flow was $16.0 million compared to $17.6 million in the second quarter of 2021, reflecting continued strong free cash flow conversion of 65% of Adjusted Net Income, despite the continued investments in working capital to support the ongoing growth of the business.
  • Quarter end leverage ratio of 3.9x – a decrease of 0.4x from Q1 2022, with continued focus on de-levering the business towards goal of 2.5x - 3.5x.

Ramey Jackson, Chief Executive Officer, stated, “The strong momentum we established to start the year continued in the second quarter. We once again generated substantial year-over-year revenue growth from all of our sales channels, led again by particular strength in our Commercial and Other and R3 sales channels. We were particularly pleased to see a second consecutive quarter of strong sequential EBITDA margin improvement, highlighting how the commercial actions and the cost savings initiatives we have undertaken are yielding impressive results.”

Mr. Jackson continued, “Even as macroeconomic concerns around inflation, currency, labor availability, and supply chains persist, high occupancy rates in the self-storage industry continue to support pricing power for our customers that in turn is driving increasing levels of investment in both existing and new facilities. With our market-leading product offerings and solutions across self-storage, commercial, and industrial end markets, and supported by our strong cash generation profile, we are well situated to benefit from these tailwinds. Given the strong first half results, our expectations for the balance of the year, and a focus on driving continued margin improvement, we are pleased to raise our full-year 2022 outlook.”

2022 Financial Outlook:

Based on the Company’s current business outlook, Janus is raising its full-year 2022 outlook as follows:

  • Revenue in a range of $940 million to $960 million, up from the previous range of $890 million to $910 million. The new range represents a 26.6% increase at the midpoint as compared to 2021 levels.
  • Adjusted EBITDA in a range of $204 million to $211 million, up from the previous range of $193 million to $200 million. The new range represents a 40.0% increase at the midpoint as compared to 2021 levels.

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, re-locatable 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 first quarter results, discuss recent events and conduct a question-and-answer session on Tuesday, August 16, 2022, 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 1-877-407-0789 or 1-201-689-8562, respectively. Upon dialing in, please request to join the Janus International Group Second Quarter 2022 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 13731298.

Forward Looking Statements

Certain statements in this communication, including the estimated guidance provided under “2022 Financial Outlook” 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 positioning in the industry to strengthen its pipeline and deliver on its objectives and Janus’s belief regarding the demand outlook for Janus’s products and the strength of the industrials markets. When used in this communication, words such as “may,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “continue,” 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; and (iii) the risk that the demand outlook for Janus’s products may not be as strong as anticipated.

There can be no assurance that the events, results, trends or guidance regarding 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, Adjusted Net Income, Adjusted Basic EPS, and Adjusted Diluted EPS 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, Adjusted Net Income, Adjusted Basic EPS, and Adjusted Diluted EPS 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, Adjusted Net Income, Adjusted Basic EPS, and Adjusted Diluted EPS 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. Adjusted Basic earnings (income) per share (EPS) is computed by taking Adjusted Net Income divided by the weighted average number of shares of common stock outstanding during the period. Adjusted Diluted earnings (income) per share (EPS) is computed by dividing Adjusted Net Income by the weighted average number of common shares outstanding plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include stock purchase warrants and contingently issuable shares attributable to the earn-out consideration.

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

(In thousands)

 

 

Three Months Ended

 

Six Months Ended

 

July 2, 2022

 

June 26, 2021

 

July 2, 2022

 

June 26, 2021

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

REVENUE

 

 

 

 

 

 

 

Sales of product

$

213,969

 

 

$

140,556

 

 

$

411,274

 

 

$

262,253

 

Sales of services

 

33,745

 

 

 

33,626

 

 

 

65,960

 

 

 

64,754

 

Total revenue

 

247,714

 

 

 

174,182

 

 

 

477,234

 

 

 

327,007

 

Cost of Sales

 

163,733

 

 

 

114,988

 

 

 

316,684

 

 

 

214,519

 

GROSS PROFIT

 

83,981

 

 

 

59,194

 

 

 

160,550

 

 

 

112,488

 

OPERATING EXPENSE

 

 

 

 

 

 

 

Selling and marketing

 

14,389

 

 

 

10,381

 

 

 

27,739

 

 

 

19,840

 

General and administrative

 

29,743

 

 

 

36,936

 

 

 

57,849

 

 

 

56,522

 

Contingent consideration and earnout fair value adjustments

 

 

 

 

687

 

 

 

 

 

 

687

 

Operating Expenses

 

44,132

 

 

 

48,004

 

 

 

85,588

 

 

 

77,049

 

INCOME FROM OPERATIONS

 

39,849

 

 

 

11,190

 

 

 

74,962

 

 

 

35,439

 

Interest expense

 

(8,868

)

 

 

(7,476

)

 

 

(17,643

)

 

 

(15,602

)

Other expense

 

(342

)

 

 

(919

)

 

 

(369

)

 

 

(2,478

)

Change in fair value of derivative warrant liabilities

 

 

 

 

(1,929

)

 

 

 

 

 

(1,929

)

INCOME BEFORE TAXES

 

30,639

 

 

 

866

 

 

 

56,950

 

 

 

15,430

 

Provision (benefit) for Income Taxes

 

7,802

 

 

 

2,560

 

 

 

14,409

 

 

 

2,405

 

NET INCOME (LOSS)

$

22,837

 

 

$

(1,694

)

 

$

42,541

 

 

$

13,025

 

Other Comprehensive Income (Loss)

 

(3,387

)

 

 

(37

)

 

 

(3,901

)

 

 

274

 

COMPREHENSIVE INCOME (LOSS)

$

19,450

 

 

$

(1,731

)

 

$

38,640

 

 

$

13,299

 

Net income (loss) attributable to common stockholders

$

22,837

 

 

$

(1,694

)

 

$

42,541

 

 

$

13,025

 

Weighted-average shares outstanding, basic and diluted

 

 

 

 

 

 

 

Basic

 

146,575,720

 

 

 

81,009,261

 

 

 

146,568,719

 

 

 

73,577,447

 

Diluted

 

146,717,937

 

 

 

81,009,261

 

 

 

146,648,306

 

 

 

73,879,851

 

Net income (loss) per share, basic and diluted

 

 

 

 

 

 

 

Basic

$

0.16

 

 

$

(0.02

)

 

$

0.29

 

 

$

0.18

 

Diluted

$

0.16

 

 

$

(0.02

)

 

$

0.29

 

 

$

0.18

 

 

Janus International Group, Inc.

Consolidated Balance Sheets

(In thousands)

 

 

July 2,

 

January 1,

 

2022

 

2022

 

(Unaudited)

 

 

 

 

 

 

ASSETS

 

 

 

Current Assets

 

 

 

Cash and cash equivalents

$

40,718

 

 

$

13,192

 

Accounts receivable, less allowance for credit losses; $6,607 and $5,449, at July 2, 2022 and January 1, 2022, respectively

$

132,531

 

 

$

107,372

 

Costs and estimated earnings in excess of billing on uncompleted contracts

$

21,715

 

 

$

23,121

 

Inventory, net

$

66,769

 

 

$

56,596

 

Prepaid expenses

$

8,211

 

 

$

9,843

 

Other current assets

$

3,288

 

 

$

4,057

 

Total current assets

$

273,232

 

 

$

214,181

 

Right-of-use assets, net

$

40,535

 

 

$

 

Property and equipment, net

$

42,557

 

 

$

41,607

 

Customer relationships, net

$

296,779

 

 

$

312,199

 

Tradename and trademarks

$

107,403

 

 

$

107,980

 

Other intangibles, net

$

15,118

 

 

$

15,861

 

Goodwill

$

368,085

 

 

$

369,286

 

Deferred tax asset, net

$

60,005

 

 

$

58,915

 

Other assets, net

$

1,825

 

 

$

1,973

 

Total assets

$

1,205,539

 

 

$

1,122,002

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current Liabilities

 

 

 

Accounts payable

$

56,425

 

 

$

54,961

 

Billing in excess of costs and estimated earnings on uncompleted contracts

$

26,084

 

 

$

23,207

 

Current maturities of long-term debt

$

8,229

 

 

$

8,067

 

Other accrued expenses

$

65,958

 

 

$

54,111

 

Total current liabilities

$

156,696

 

 

$

140,346

 

Line of credit

$

 

 

$

6,369

 

Long-term debt, net

$

701,883

 

 

$

703,718

 

Deferred tax liability, net

$

1,827

 

 

$

749

 

Other long-term liabilities

$

37,620

 

 

$

2,533

 

Total liabilities

$

898,026

 

 

$

853,715

 

STOCKHOLDERS’ EQUITY

 

 

 

Common Stock, 825,000,000 shares authorized, $.0001 par value, 146,639,377 and 146,561,717 shares issued and outstanding at July 2, 2022 and January 1, 2022, respectively

$

15

 

 

$

15

 

Additional paid-in capital

$

279,309

 

 

$

277,799

 

Accumulated other comprehensive loss

$

(4,850

)

 

$

(949

)

Accumulated surplus (deficit)

$

33,039

 

 

$

(8,578

)

Total stockholders’ equity

$

307,513

 

 

$

268,287

 

Total liabilities and stockholders’ equity

$

1,205,539

 

 

$

1,122,002

 

 

Janus International Group, Inc.

Consolidated Statements of Cash Flows

(In thousands)

 

 

Six Months Ended

 

July 2, 2022

 

June 26, 2021

 

(Unaudited)

 

(Unaudited)

Cash Flows Provided By Operating Activities

 

 

 

Net income

$

42,541

 

 

$

13,025

 

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

 

 

 

Depreciation of property and equipment

 

3,835

 

 

 

2,979

 

Reduction in carrying amount of right-of-use assets

 

2,615

 

 

 

 

Intangible amortization

 

14,871

 

 

 

13,623

 

Deferred finance fee amortization

 

1,832

 

 

 

1,487

 

Provision for losses on accounts receivable

 

1,158

 

 

(666

)

Share based compensation

 

1,510

 

 

 

5,262

 

Loss on extinguishment of debt

 

 

 

 

2,415

 

Change in fair value of contingent consideration

 

 

 

 

687

 

(Gain) Loss on sale of assets

 

(28

)

 

 

43

 

Loss on abandonment of PP&E

 

571

 

 

 

 

Change in fair value of derivative warrant liabilities

 

 

 

 

1,929

 

Undistributed (earnings) losses of affiliate

 

(60

)

 

 

(105

)

Deferred income taxes

 

 

 

 

(768

)

Changes in operating assets and liabilities

 

 

 

Accounts receivable

 

(26,682

)

 

 

(3,756

)

Costs and estimated earnings in excess of billings and billings in excess of costs and estimated earnings on uncompleted contracts

 

1,406

 

 

 

(5,216

)

Prepaid expenses and other current assets

 

2,481

 

 

 

(2,946

)

Inventory

 

(10,173

)

 

 

(11,008

)

Accounts payable

 

1,464

 

 

 

15,393

 

Other accrued expenses

 

6,971

 

 

 

13,783

 

Other assets and long-term liabilities

 

(1,160

)

 

 

(1,338

)

Net Cash Provided By Operating Activities

$

43,152

 

 

$

44,823

 

Cash Flows Used In Investing Activities

 

 

 

Proceeds from sale of equipment

$

45

 

 

$

79

 

Purchases of property and equipment

 

(5,268

)

 

 

(3,993

)

Cash paid for acquisition, net of cash acquired

 

 

 

 

(1,565

)

Net Cash Used In Investing Activities

$

(5,223

)

 

$

(5,479

)

Cash Flows Used In Financing Activities

 

 

 

Repayments on line of credit

$

(6,369

)

 

$

 

Distributions to Janus Midco LLC unitholders

 

 

 

 

(4,174

)

Principal payments on long-term debt

 

(4,034

)

 

 

(63,238

)

Proceeds from merger

 

 

 

 

334,874

 

Proceeds from PIPE

 

 

 

 

250,000

 

Payments for transaction costs, net

 

 

 

 

(44,489

)

Payments to Janus Midco, LLC unitholders at the business combination

 

 

 

 

(541,710

)

Principal payments under capital lease obligations

 

(66

)

 

 

 

Payments for deferred financing fees

 

 

 

 

(766

)

Cash Used In Financing Activities

$

(10,469

)

 

$

(69,503

)

Effect of exchange rate changes on cash and cash equivalents

$

66

 

 

$

191

 

Net (Decrease) Increase in Cash and Cash Equivalents

$

27,526

 

 

$

(29,968

)

Cash and Cash Equivalents, Beginning of Period

$

13,192

 

 

$

45,255

 

Cash and Cash Equivalents, End of Period

$

40,718

 

 

$

15,287

 

Supplemental Cash Flows Information

 

 

 

Interest paid

$

18,296

 

 

$

16,848

 

Income taxes paid

$

11,889

 

 

$

774

 

Cash paid for operating leases

$

3,832

 

 

$

 

Fair value of earnout

$

 

 

$

687

 

Fair value of warrants

$

 

 

$

1,929

 

Non-cash investing and financing activities:

 

 

 

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

$

42,380

 

 

$

 

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

$

706

 

 

$

 

 

Janus International Group, Inc.

Reconciliation of Net Income to Adjusted EBITDA

(In thousands)

 

 

Three Months Ended

 

 

 

 

 

July 2, 2022

 

June 26, 2021

 

Variance

 

 

 

$

 

%

 

 

 

 

 

 

 

 

Net Income

$

22,837

 

$

(1,694

)

 

$

24,531

 

 

1448.1

%

Interest Expense

 

8,868

 

 

7,476

 

 

 

1,392

 

 

18.6

%

Income Taxes

 

7,802

 

 

2,560

 

 

 

5,242

 

 

204.8

%

Depreciation

 

1,978

 

 

1,506

 

 

 

472

 

 

31.3

%

Amortization

 

7,646

 

 

6,791

 

 

 

855

 

 

12.6

%

EBITDA

$

49,131

 

$

16,639

 

 

$

32,492

 

 

195.3

%

Loss (gain) on extinguishment of debt(1)

 

 

 

994

 

 

 

(994

)

 

(100.0

)%

COVID-19 related expenses(2)

 

 

 

13

 

 

 

(13

)

 

(100.0

)%

Transaction related expenses(3)

 

 

 

10,398

 

 

 

(10,398

)

 

(100.0

)%

Facility relocation(4)

 

517

 

 

49

 

 

 

468

 

 

955.1

%

Share-based compensation(5)

 

 

 

5,210

 

 

 

(5,210

)

 

(100.0

)%

Acquisition expense(6)

 

535

 

 

 

 

 

535

 

 

100.0

%

Severance and transition costs (7)

 

500

 

 

 

 

 

500

 

 

100.0

%

Change in fair value of contingent consideration(8)

 

 

 

687

 

 

 

(687

)

 

(100.0

)%

Change in fair value of derivative warrant liabilities(9)

 

 

 

1,929

 

 

 

(1,929

)

 

(100.0

)%

Adjusted EBITDA

$

50,683

 

$

35,919

 

 

$

14,764

 

 

41.1

%

 

 

Six Months Ended

 

 

 

 

 

July 2, 2022

 

June 26, 2021

 

Variance

 

 

 

$

 

%

 

 

 

 

 

 

 

 

Net Income

$

42,541

 

$

13,025

 

 

$

29,516

 

 

226.6

%

Interest Expense

 

17,643

 

 

15,602

 

 

 

2,041

 

 

13.1

%

Income Taxes

 

14,409

 

 

2,405

 

 

 

12,004

 

 

499.1

%

Depreciation

 

3,835

 

 

2,979

 

 

 

856

 

 

28.7

%

Amortization

 

14,871

 

 

13,623

 

 

 

1,248

 

 

9.2

%

EBITDA

$

93,299

 

$

47,634

 

 

$

45,665

 

 

95.9

%

Loss (gain) on extinguishment of debt(1)

 

 

 

2,415

 

 

 

(2,415

)

 

(100.0

)%

COVID-19 related expenses(2)

 

109

 

 

209

 

 

 

(100

)

 

(47.8

)%

Transaction related expenses(3)

 

 

 

10,398

 

 

 

(10,398

)

 

(100.0

)%

Facility relocation(4)

 

620

 

 

67

 

 

 

553

 

 

825.4

%

Share-based compensation(5)

 

 

 

5,210

 

 

 

(5,210

)

 

(100.0

)%

Acquisition expense(6)

 

821

 

 

 

 

 

821

 

 

100.0

%

Severance and transition costs (7)

 

500

 

 

 

 

 

500

 

 

100.0

%

Change in fair value of contingent consideration(8)

 

 

 

687

 

 

 

(687

)

 

(100.0

)%

Change in fair value of derivative warrant liabilities(9)

 

 

 

1,929

 

 

 

(1,929

)

 

(100.0

)%

Adjusted EBITDA

$

95,349

 

$

68,549

 

 

$

26,800

 

 

39.1

%

(1)

Adjustment for loss (gain) on extinguishment of debt regarding the write off of unamortized fees and third-party fees as a result of the debt modification completed in February 2021 and the prepayment of debt in the amount of $61.6 million that occurred on June 7, 2021 in conjunction with the Business Combination. See Liquidity and Capital Resources section.

(2)

Expenses which are one-time and non-recurring related to the COVID-19 pandemic. See Impact of COVID-19 section.

(3)

Transaction related expenses incurred as a result of the Business Combination on June 7, 2021 which consist of employee bonuses and the transaction cost allocation.

(4)

Expenses related to the facility relocation for ASTA and Janus Core.

(5)

Share-based compensation expense associated with Midco, LLC Class B Common units that fully vested at the date of the Business Combination.

(6)

Expenses related to the transition services agreement for the DBCI acquisition which closed August 18, 2021.

(7)

Reflects one-time costs associated with our strategic transformation, including executive leadership team changes, strategic business assessment and transformation projects.

(8)

Adjustment related to the change in fair value of contingent consideration related to the earnout of the 2,000,000 common stock shares that were issued and released on June 21, 2021.

(9)

Adjustment related to the change in fair value of derivative warrant liabilities for the private placement warrants.

 

Janus International Group, Inc.

Reconciliation of Net Income to Non-GAAP Adjusted Net Income

(In thousands)

 

 

Three Months Ended

 

July 2, 2022

 

June 26, 2021

Net Income (Loss)

$

22,837

 

$

(1,694

)

Net Income Adjustments(1)

 

1,552

 

 

19,279

 

Tax Effect Non-GAAP on Net Income Adjustments(2)

 

393

 

 

3,005

 

Non-GAAP Adjusted Net Income

$

24,782

 

$

20,590

 

 

 

Six Months Ended

 

July 2, 2022

 

June 26, 2021

Net Income

$

42,541

 

$

13,025

 

Net Income Adjustments(1)

 

2,051

 

 

20,914

 

Tax Effect Non-GAAP on Net Income Adjustments(2)

 

519

 

 

3,260

 

Non-GAAP Adjusted Net Income

$

45,111

 

$

37,199

(1)

Refer to SEC public filings for detailed breakout. This amount reconciles to the EBITDA Adjustments/Non-GAAP Adjustments

(2)

Tax effected for the net income adjustments. Used effective tax rates 25.3% and 15.6% for the three and six months ended July 2, 2022 and June 26, 2021, respectively.

 

Janus International Group, Inc.

Non-GAAP Adjusted EPS

(In thousands)

 

 

 

Three Months Ended

 

July 2, 2022

 

June 26, 2021

Numerator:

 

 

 

Non-GAAP Adjusted Net Income

$

24,782

 

$

20,590

Denominator:

 

 

 

Weighted average number of shares:

 

 

 

Basic

 

146,575,720

 

 

81,009,261

Adjustment for Restricted Stock Units

 

142,217

 

 

Diluted

 

146,717,937

 

 

81,009,261

Non-GAAP Adjusted Basic EPS

$

0.17

 

$

0.25

Non-GAAP Adjusted Diluted EPS

$

0.17

 

$

0.25

 

 

 

Six Months Ended

 

July 2, 2022

 

June 26, 2021

Numerator:

 

 

 

Non-GAAP Adjusted Net Income

$

45,111

 

$

37,199

Denominator:

 

 

 

Weighted average number of shares:

 

 

 

Basic

 

146,568,719

 

 

73,577,447

Adjustment for Restricted Stock Units

 

79,587

 

 

302,404

Diluted

 

146,648,306

 

 

73,879,851

Non-GAAP Adjusted Basic EPS

$

0.31

 

$

0.51

Non-GAAP Adjusted Diluted EPS

$

0.31

 

$

0.50

 

Janus International Group, Inc.

Non-GAAP Free Cash Flow Conversion

(In thousands)

 

 

Three Months Ended

 

July 2, 2022

 

June 26, 2021

Cash flow from operating activities

$

18,377

 

 

$

19,263

 

Less capital expenditure

 

(2,388

)

 

 

(1,629

)

Free cash flow

$

15,989

 

 

$

17,634

 

 

 

 

 

Non-GAAP Adjusted Net Income

$

24,782

 

 

$

20,590

 

 

 

 

 

Free cash flow conversion of Non-GAAP Adjusted Net Income

 

65

%

 

 

86

%

 

 

Six Months Ended

 

July 2, 2022

 

June 26, 2021

Cash flow from operating activities

$

43,152

 

 

$

44,823

 

Less capital expenditure

 

(5,268

)

 

 

(3,993

)

Free cash flow

$

37,884

 

 

$

40,830

 

 

 

 

 

Non-GAAP Adjusted Net Income

$

45,111

 

 

$

37,199

 

 

 

 

 

Free cash flow conversion of Non-GAAP Adjusted Net Income

 

84

%

 

 

110

%

 

Investor Contacts, Janus

John Rohlwing
Vice President, Investor Relations & FP&A, Janus International

Rodny Nacier / Dan Scott, ICR on behalf of Janus
IR@janusintl.com
(770) 562-6399

Media Contacts, Janus

Bethany Morehouse
Marketing Content Manager, Janus International
770-746-9576
Marketing@Janusintl.com

Jason Chudoba, ICR on behalf of Janus
Jason.Chudoba@ICRinc.com

Source: Janus International Group, Inc.