Janus International Group, Inc.

Hello, and welcome to the Janus International second quarter 2022 earnings conference call. Currently, all participants are on a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require assistance during the conference, you may press star, then 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 Rawling, Vice President of Investor Relations and FP&A. Thank you. You may begin, Mr. Rawlings.

Thank you, Operator. And thank you all for joining our second 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 investor section of our website at janiceimtl.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. Please see our earnings release and filings for reconciliation of these non-GAAP measures to their most strictly comparable GAAP measure. I'm joined today by our Chief Executive Officer, Rami Jackson, who will provide an overview of our business and give an operations update, and our Chief Financial Officer, Anselm Wong, who will continue with a 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 Randy.

Thank you, John, and good morning, everyone. We had a remarkable quarter and continue to build out our record of incredible results. It's an exciting time to be a Janus. We recently had the opportunity to ring the bell at the New York Stock Exchange in July. This event celebrated our one year anniversary since becoming a publicly traded company and our 20th year anniversary to delivering leading solutions, products, and services to our customers. Now turning to the second quarter of 2022, Janus produced strong operational and financial results that included record revenues, sequential margin improvement, record backlog, and strong cash generation. Against a backdrop of macroeconomics uncertainties, the self-storage industry continues to flourish. as it has in the past, with persistently high demand and occupancy rates driving the need for new capacity additions in the form of expansions, conversions, relocatable storage units, and unit mix changes. Our customers are larger, better funded, and more strategically focused than at any point in our industry's past. As the leading provider of value-added solutions for customers across the self-storage, commercial, and industrial building industries, We believe we are uniquely positioned to continue benefiting from these market dynamics and to gain market share, regardless of how that capacity is added. As a reminder, our margin profile is similar for Greenfield New Construction and for R3. We remain focused on a number of key growth strategies. In our commercial segment, we continue to build out the rolling steel product line at our ASTA business unit. and are benefiting from additional opportunities that the DBCI acquisition brings to that segment. On the NOKI front, we are leveraging the prior year acquisition of ACT to accelerate growth, which once again resulted in strong revenue quarter to date. As we mentioned on our last call in April, we launched NOKI Screen, the latest in a line of award-winning smart security products in the NOKI Smart Entry product line, Nokia screen boasts several exciting design features. Its controller and keypad design improves functionality and reduces the cost of upgrading access control systems. We're very excited about the Nokia product line and its growth trajectory and look forward to it being an increasing part of our solutions offering and profitability. Now shifting to the financial highlights for the quarter. we delivered consolidated revenues of $247.7 million, an increase of approximately 42% as compared to the same period last year, or approximately 27% on an organic basis. This growth reflected strength in all three of our sales channels, with commercial and other leading the way, and we continue to benefit from the contributions from the DBCI and ACT acquisitions that closed during the third quarter last year. Our adjusted EBITDA of 50.7 million came in approximately 41% higher than Q2 of 2021, which was a solid performance given the higher cost we are experiencing in many parts of our business. Adjusted EBITDA margins were roughly stable year over year, but due to our volume growth, commercial actions, and productivity initiatives, margins increased sequentially for the second consecutive quarter. rising by 100 basis points over the first quarter of 2022. And while we continue to see inflationary pressures on raw materials, labor, and logistics, the cumulative margin improvement over 200 basis points as compared to our recent trough in Q4 of last year provides clear evidence that our commercial actions and cost-saving initiatives we implemented last year are working. Our company continues to generate strong cash flows, which Ansel will discuss in further detail shortly. Year-to-date, our free cash flow conversion was 84% 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 have earned a market leadership position within self-storage industry and continue to gain market share with the commercial sales channel. This is a testament to our role as a full lifecycle partner and solutions provider to our customers. In summary, our end markets remain strong and resilient, particularly the self-storage industry, which as we have highlighted before, is an event-driven end market. As facility owners accelerate investment to meet the increased demand for capacity, We look to leverage our leading market position to capture additional share and create long-term value for our stakeholders. All of this has resulted in our increased outlook for revenue and EBITDA in 2022. With that, I'll turn the call over to Anselm for an overview of the financials and our updated outlook for the full year.