Janus International Group, Inc. · NYSE:JBI
Janus International — FY2022 Earnings Presentation
29 slides from Janus International's earnings presentation, Mar 16, 2023
Slide 1: Q4 and Full Year 2022 Earnings Presentation & Long-Term Outlook
Q4 AND FULL YEAR 2022 EARNINGS PRESENTATION & LONG-TERM OUTLOOK March 16, 2023 JanusIntl.com
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain statements in this communication, including the estimated guidance provided under “2022 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 Ex
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES In this presentation 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 f
Slide 4: Agenda
3 AGENDA Ramey Jackson Anselm Wong Chief Executive Officer Chief Financial Officer 2022 Business Overview & 2022 Financial Overview & Long-Term Strategic Outlook Long-Term Financial Outlook 3
Slide 5: Q4 / Full Year 2022 & 2023 Guidance Overview
Q4 / FULL YEAR 2022 & 2023 GUIDANCE OVERVIEW 4
Slide 6: Full Year 2022 Highlights and Milestones
Full Year 2022 Highlights and Milestones • Well-balanced 35.9% revenue growth, including 28.4% organic YoY Balanced FY 2022 Revenue Mix • Commercial & Other up 54.5% • Restore, Rebuild & Replace (“R3”) up 45.0% • New Construction up 13.1% 31.5% • Integration of DBCI and ACT acquisitions completed ah
Slide 7: Q4 2022 Results Overview
Q4 2022 Results Overview Adj. EBITDA1 Revenue $279.7M $68.3M 57.5% increase 18.9% increase 24.4% margin Adj. Diluted EPS1 Operating Cash Flow $0.22 Adj. Net Income1 $25.9M of $32.8M FCF2 of $24.9M Continued Strong Growth and Execution 1. Adjusted EBITDA, Adjusted Net Income and Adjusted Diluted EPS
Slide 8: Full Year 2022 Results Overview
Full Year 2022 Results Overview Adj. EBITDA1 Revenue $1.02B $226.9M 53.1% increase 35.9% increase 22.3% margin Adj. Diluted EPS1 Operating Cash Flow $0.74 Adj. Net Income1 $88.5M of $109.2M FCF2 of $79.7M Continued Strong Growth and Execution 1. Adjusted EBITDA, Adjusted Net Income and Adjusted Dilu
Slide 9: 2022 Summary
2022 Summary • Strong full year organic growth driven by balanced strength in all sales channels, bolstered by contributions from the DBCI and ACT acquisitions • Commercial and productivity initiatives helping drive top line growth, offsetting higher costs • ~250 bps improvement in Adj. EBITDA1 marg
Slide 10: 2023 Guidance
2023 Guidance Building on Established Momentum to Deliver Another Year of Record Results FULL YEAR 2023 Guidance • Initiating full year guidance for revenue and Adjusted EBITDA Revenue Adjusted EBITDA1 • Strong outlook reflects current backlog and pipeline, along $1.05B to $1.07B with combined benef
Slide 11: Long-Term Strategic Outlook
LONG-TERM STRATEGIC OUTLOOK 10 10
Slide 12: Key Take Aways for Long-Term Outlook
Key Take Aways for Long-Term Outlook ➢ Expand position as the industry leader in a resilient well-structured market ➢ Deliver strong growth through commercial actions, share gains across all three sales channels, increase content per square foot, and expand adoption of Nokē Remote Access ➢ Drive rob
Slide 13: Where We Are Today / Where We're Going
Where We are Today Where We’re Going 2022A 3-5 Year Long-Term Targets Revenues Annual Organic Revenue Growth Industry Leader in Self-Storage $1.02B with Attractive Expansion Opportunities in Commercial and 4% - 6% Industrial Markets EBITDA Margin1 EBITDA Margin 22.3% Well-Positioned to Expand Share
Slide 14: Multiple Levers to Drive Long-Term Growth
Multiple Levers to Drive Long-Term Growth . . . Growth in New Construction and R3 fueled by self-storage demand Increasing market share in Commercial with an expanded suite of offerings Continuing to drive innovation and adoption of Nokē Smart Entry System Continuously evolving portfolio with innova
Slide 15: Supported by Strong Fundamentals In All Sales Channels
. . . Supported by Strong Fundamentals In All Sales Channels Benefiting from Unique Convergence of Structural Tailwinds Self-Storage Market Commercial & Other Structural demand drivers for self storage are not dependent on market, mainly arising from the “6 Ds” • Dislocation • Divorce • Decluttering
Slide 16: Nokē Growth Strategy
Nokē Growth Strategy Provide End-to-End Access As A Service Build Business Around Key Operational Metrics 2020 2021 2022 Total Market Opportunity Hardware Software Integration, Implementation Data & Analytics INSTALLED ~60,000 ~101,000 ~166,000 ~25M – 30M BASE | UNITS Note: Total Units is defined as
Slide 17: Highly Successful M&A Strategy with Significant Opportunity for Continued Growth
Highly Successful M&A Strategy with Significant Opportunity for Continued Growth Nine acquisitions completed since 2016 with a healthy and diverse pipeline of potential targets focused on strategic growth Proven Track Record of Successful M&A Over 150 Potential Targets in M&A Pipeline • Management h
Slide 18: Long-Term Financial Outlook
LONG-TERM FINANCIAL OUTLOOK 17 17
Slide 19: Poised to Execute Against Long-term Financial Outlook Over 3-5 Years
Poised to Execute Against Long-term Financial Outlook Over 3- 5 Years Organic Revenue Growth Margin Expansion Cash Flow Generation (Long-Term Targets) (Long-Term Targets) (Long-Term Targets) Annual Organic Revenue Growth Adj. EBITDA Margin Free Cash Flow Net Leverage Conversion 4% - 6% 25% - 27% 75%
Slide 20: Organic Revenue Growth Components
Organic Revenue Growth Components Numerous Market Drivers and Strategic Actions to Deliver Long-Term Organic Growth Organic Growth Building Blocks ➢ Leveraging strong end-market growth dynamics ‒ Structural demand for self storage space not dependent on economic cycles 4-6% ‒ Well-capitalized self s
Slide 21: Key Drivers of Adjusted EBITDA Margin Expansion
Key Drivers of Adjusted EBITDA Margin Expansion 25% - 27% ➢ Volume Leverage ➢ Commercial Actions ➢ Product Mix ~22% ➢ Operational Improvements ➢ Technology Enhancements 1. Adjusted EBITDA, Adjusted Net Income and Adjusted Diluted EPS are not financial measures determined in accordance with GAAP. For
Slide 22: Building on Record of High Return Capital Allocation
Building on Record of High Return Capital Allocation Strong cash flow profile, financial flexibility, disciplined capital deployment Free Cash Conversion of Adj. NI 75% - 100% Solid Balance Sheet Invest in Growth Financial Flexibility 2x-3x Leverage Target Acquisitions Optimize Returns Net Debt/Adj.
Slide 23: Key Take Aways: Plan In Motion for Significant Value Creation
Key Take Aways: Plan In Motion for Significant Value Creation 3-5 Year Long-Term Targets ➢ Expand industry-leading position in well-structured market Annual Organic Revenue Growth 4% - 6% ➢ Deliver strong growth across existing sales channels and expand adoption of Nokē Remote Access EBITDA Margin 2
Slide 24: Appendix
Appendix APPENDIX A Supplemental Materials 23
Slide 25: Long-Term Financial Performance
Long-Term Financial Performance Key Metrics 2021 2022 Long-Term Target Organic Growth 30.0% 28.4% 4% - 6% EBITDA Margin (1) 19.8% 22.3% 25% - 27% FCF Conversion(2) 96% 73% 75% - 100% Net Leverage(3) 4.4x 2.8x 2.0x – 3.0x 1. Adjusted EBITDA, Adjusted Net Income and Adjusted Diluted EPS are not financ
Slide 26: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation 25 25
Slide 27: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation 26 26
Slide 28: Non-GAAP Adjusted EPS
Non-GAAP Adjusted EPS ‘Three Months Ended December 31,2022_ __January 1, 2022 Numerator: GAAP Net Income s 32.714 $ 10.282 Non-GAAP Adjusted Net Income 5 32,747 S$ Denominator: Weighted average number of shares: Basic 146,647,897 143.240.473 Adjustment for Restricted Stock Units 229,038 881.673 Dilu
Slide 29: Free Cash Flow Conversion
Free Cash Flow Conversion 28 28
Janus International Group — FY2022 Earnings Presentation on 6ix