Janus International Group, Inc.

Hello and welcome to the Janus International first quarter 2022 earnings conference call. Currently, all participants are in 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 zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the call over to your host, Mr. John Rowling, Vice President of Investor Relations and FP&A. Thank you. You may begin, Mr. Rowling.

Thank you, operator, and thank you all for joining our first quarter 2022 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 JanusINTL.com. As a reminder, today's conference call may include forward-looking statements regarding the company's future plans and prospects. These statements are based on our current expectations, and we undertake no duty to update them. It is important to note that the company's actual results may differ materially from those anticipated. Factors that could cause actual results to differ from anticipated results are contained in the company's latest earnings release and periodic filings with the Securities and Exchange Commission, and we encourage you to review those factors carefully. 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. We see our earnings release and filings for reconciliation of these non-GAAP measures to 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, and our Chief Financial Officer, Scott Sanders, who 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, John. Good morning, everyone. 2022 marks our 20th year in business at Janus, and I'm proud to say we're off to a very strong start. Over the 20 years, we've experienced a lot at Janus. We've grown to approximately 1,600 employees and over 10,000 active customers and have operations around the world. In the past five years alone, we doubled our business through a balanced mix of organic and inorganic growth and are well positioned to continue to grow attractively in the future. We have a strong position in self-storage and a leading position with our customers in all of our business segments, which we expanded with last year's DBCI and ACT acquisitions. We had a momentous 2021 that saw us become a public company, complete our largest acquisition to date, make significant progress in our DBCI synergy plan, and meet inflationary pressures on multiple fronts head-on. We continue to focus on the relentless execution of our plan to drive both top and bottom line growth and create long-term value for our shareholders. At Janus, we're far more than a steel roll-up door company. We are at heart a value-added solutions provider for our customers across the self-storage, commercial, and industrial sectors. building industries. Filling that role for self-storage in adjacent industries helps drive the strong margin profile for the business and contributes to a high level of stickiness we have with our customers. It's an exciting time as the self-storage industry experienced unprecedented growth in 2021, and we continue to see investor demand and capital inflows into the industry. Each of the self-storage REITs that has reported earnings so far highlighted how industry fundamentals remain strong and they are positioning themselves for the coming busy season. Collectively, they expect favorable performance trends seen in 2021 to continue in 2022, and that outlook was reflected in their updated guidance. High occupancy rates continue to drive demand for new capacity additions in the self-storage industry. Increasingly from a larger, more investment-driven, and better capitalized group of owners in self-storage facilities like REITs. In fact, several self-storage focused REITs reported occupancy levels at quarter end in range of 93 to 95%, reflecting strong demand for products as well as the near-term need to add additional capacity in the forms of expansions, conversions, relocatable storage units, and unit mix changes. We positioned ourselves to be the leading beneficiary of capacity additions, no matter which form they take, as we derive similar margin profiles from either new construction or the repurposing and refurbishing of existing facilities. We remain keenly focused on several key growth strategies. On the NOCI front, we leveraged the acquisition of ACT last year to accelerate growth, resulting in our highest revenue quarter to date. And in the commercial segment, we continue to build out the rolling steel product line at our ASTA business unit, bolstered by the additional opportunities that DBCI acquisition brings to the commercial side of the business. Also on the Nokia front, subsequent to quarter end, we announced the launch of Nokia Screen, the latest in a line of award-winning smart security products in the Nokia Smart Entry product line. Nokia Screen boasts a number of exciting design features. like a customizable full graphic display screen, Wi-Fi and Bluetooth connectivity, and an all-in-one design that combines the controller and the keypad in a single device. This controller and keypad design improves functionality and reduce cost of upgrading access control systems by eliminating one of the most expensive and most commonly replaced pieces of the access control puzzle, the controller. The design of Nokia screen also significantly mitigates vulnerability to lightning strikes and other electrical surges that are prevalent in the access control market today. Now shifting to the financial highlights for the quarter. We delivered consolidated revenues of 229.5 million, an increase of 50.2% as compared to the same period last year, or 35.7 on an organic basis. This growth reflected the strength in all three of our sales channels. On the new construction side, we saw strong demand in our second consecutive bounce back quarter as the pinup demand caused by permitting and other construction delays during 2021 was converted to revenue. We benefited from the contributions from DBCI and the ACT acquisitions that closed during the third quarter of last year. Our adjusted EBITDA of $44.7 million came in at 37% higher than Q1 of 21, driven primarily by higher revenues and was partially offset by higher cost of sales and general and administrative expenses, reflecting the growth and inflation we were experiencing. However, as a result of our volume growth, commercial actions and productivity initiatives, our adjusted EBITDA margins increased by more than 100 basis points over the fourth quarter of 2021. We continue to see challenges in certain areas of our business, including raw material and labor availability and inflation, as well as logistical challenges. Last year, we took actions to offset these inflationary effects through both commercial and productivity initiatives. And over the 100 basis point sequential improvement in adjusted EBITDA margin reflects the benefits of those actions. Many of those challenges are ongoing. with the continued volatility in steel prices, continued inflationary pressures, and labor availability. As a result, and supported by our continued strong market fundamentals and demand for our products, we're taking additional commercial and productivity actions to ensure recovery of these costs in 2022. Each company also continues to generate impressive cash flow, which Scott will discuss in further detail shortly. In the first quarter, our free cash flow conversion was 109% of adjusted net income. We expect cash conversion to remain solid over time, putting us in a strong position to further reduce leverage towards our goal of 2.5 to 3.5 times adjusted EBITDA while being opportunistic as M&A situations present themselves. We are pleased that we are able to build on the momentum we had coming out of a very exciting 2021 with another quarter of outstanding growth, even in the face of continued global inflationary and geopolitical pressures. As our end markets accelerate to meet increased demand for capacity, we look to leverage our strong market position to capture additional share and create long-term value for all of our stakeholders. With that, I'll turn the call over to Scott for an overview of the financials and outlook for the full year.