Janus International Group, Inc.

Hello and welcome to the Janus International Second Quarter 2021 Earnings Conference Call. Currently, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, you may press star then zero on your telephone keypad. As a reminder, the conference is being recorded. I would now like to turn the call over to your host, Mr. Scott Sanis, Chief Financial Officer of Janus. Thank you. You may begin, Mr. Sanis.

Thank you, operator, and thank you all for joining our second quarter 2021 earnings conference call. We hope that you have seen our earnings release issued this morning. Please note that we have also posted a presentation in support of this call, which can be found in the investors section of our website at janisintl.com. Before we begin, I would like to remind you that today's call may include forward-looking statements. Any statements describing our beliefs, goals, plans, strategies, expectations, projections, forecasts, and assumptions are forward-looking statements. Please note that the company's actual results may differ from those anticipated by such forward-looking statements for a variety of reasons, many of which are beyond our control. Please see our recent filings with the Securities and Exchange Commission, which identify the principal risks and uncertainties that could affect our business, prospects, and future results. We assume no obligation to update publicly any forward-looking statements. In addition, we will be discussing or providing certain non-GAAP financial measures today, including adjusted EBITDA, adjusted EBITDA margins, adjusted net income, and adjusted EPS. Please see our release and filings for reconciliation of these non-GAAP measures for their most directly comparable GAAP measure. I am joined today by our Chief Executive Officer, Ramey Jackson, who will provide an overview of our business and give an operations update. I will continue with the discussion of our financial results and outlook before we open up the call for your questions. At this point, I will turn the call over to Ramey.

Thank you, Scott. Before I begin, I think it would be a good idea to remind you all of who we are and what we do at Janus, given this is our first public earnings call. Janus provides industry leading products and access control technologies to the self-storage and commercial space. We offer a wide range of critical products and solutions with over 50% share of the fast-growing self-storage market. In our R3 division, which is our replacement, remix, and renovation business, we sell products and services to help customers upgrade their assets within an aging storage industry. As approximately 60% of self-storage facilities are over 20 years old, this sales channel provides Janet with a significant growth opportunity. We are our first mover in providing smart lock technology through our proprietary Nokia wireless solution. In addition, we provide a full line of complete self-storage building systems with our Betco division, as well as a complete offering of rolling steel doors for the commercial, industrial, and warehousing space with our Asta division. Over the past five years, we've doubled our business and expect to replicate that growth rate in the future. We have a very strong position in self storage and a leading position with our customers in all of our business segments. The second quarter of 2021 was a transformative one for Janus. We completed our business combination with Juniper Industrial Holdings and became a public company in June. We backed up our strong start to the year by delivering solid financial results for the quarter, even in the face of unprecedented inflationary pressures from raw material, labor and logistics while continuing to invest in strategic growth initiatives. High occupancy rates continue to drive new capacity additions in self-storage industry. This is a significant tailwind for the business and our outlook. Janus is a leading beneficiary of capacity additions no matter which form they take, be it new construction or repurposing and refurbishing existing facilities. Recently, we made a number of strategic leadership appointments. We promoted Christine to board and March to president of Noki and followed that up this quarter by naming Shane Self as Noki director of wireless networks and Jennifer Schaefer as Noki director of training and development. In July, we named David Alexander as the head of the recently launched facilitate initiative. our newest service offering that complements our suite of self-storage solutions by offering facility maintenance services and solutions for self-storage facilities. As we seek to advance our growth prospects, one path of opportunity for us is the international markets. In January, we acquired GNM StoreMore in Australia, which expanded our geographic presence and complemented our existing international product offerings. we will continue to look for other strategic, accretive opportunities to expand our industry-leading position in North America to other parts of the world. We're also excited about the acquisition of DBCI, which we will further discuss shortly. I'm excited to now share a number of proof points with you today that demonstrate our focus and discipline to execute on our strategy and continue creating long-term value for our stakeholders. We are pleased by our second quarter results and how they position us to accomplish our objectives for the full year. We delivered gross revenue of $174.2 million, an increase of 42.5% as compared to the same period last year. This growth was fueled by the continued strength in our commercial and other sales channel, and it also reflected a shift in mix from new construction to R3 sales. via increased conversions and expansions, a trend we have been expecting. Janice also experienced strong recovery across our end markets from the heavily COVID-impacted year-ago quarter. The pandemic continues to present challenges in certain areas of our business, including raw material inflation, labor availability inflation, and logistical challenges. Despite these impacts, our teams are working together to execute efficiently and safely. The company has taken actions to offset the inflationary effects through both commercial and cost containment initiatives, and we expect to see the benefits of these actions filled in the second half of 2021. Our adjusted EBITDA of $35.9 million came in 26% stronger than at Q2 of 2020. The higher EBITDA was driven by higher revenues partially offset by the inflationary pressure I just mentioned, coupled with the strategic investments being made to continue to achieve the strategic growth plan of the business. M&A continues to be a focus for the company's growth plans. Last month, we announced the strategic acquisition of DBCI, a manufacturer of steel roll-up doors and building products for both commercial and self-storage industries from cornerstone building brands. The transaction is expected to close in the third quarter and begin positively contributing to our results. The acquisition broadens our customer set to now include DBCI's core general contractor and distributor base and provides an opportunity to deliver more comprehensive value-added solutions to them. We are very excited to add the DBCI business to Janus and look forward to leveraging its product portfolio and servicing its terrific customer base. In summary, I'm very pleased with our results for the second quarter and how our actions have positioned us to create long-term value for all of our stakeholders. With that, I will turn the call over to Scott for an overview of the financials and outlooks for the full year.