Janus International Group, Inc.

Hello, and welcome to the Janus International third quarter 2022 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, 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, Mr. Rowley. You may begin.

Thank you, operator, and thank you all for joining our third 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 janisintl.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 filings for a 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, Anson Wong, 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 Rainey. Thank you, John.

Good morning, everyone. We delivered yet another quarter of outstanding results as we continue to build on our momentum in 2022. Especially encouraging is the fact that we achieved these results against a backdrop of significant economic uncertainty, which is a testament up to the fundamentals of our industry and the execution by our company. It also illustrates how our customers, particularly in self-storage, continue to enjoy high demand and business fundamentals that should drive a sustained period of investment to add new greenfield capacity, conversions, or expansions within an industry in need of it. These results wouldn't be possible without the combined effort of all of our employees, and I want to take a moment to personally thank them for their professionalism and hard work. Now turning to some specific thoughts around the quarter, Janus once again produced outstanding operational and financial results that included record revenues, strong margin improvement, a meaningful decrease in leverage, and solid cash generation. The fundamentals inherent throughout the industry that I just described are fueling investment decisions by our customers, providing the strong tailwinds we enjoy today and expect to realize for years to come. Their choice to add much needed capacity through conversions and expansions continue to power our restore, rebuild, and replace business, in addition to robust greenfield new construction activity benefiting that side of our business. The strong results for the quarter were also driven by our integration activities with respect to DBCI and ACT. The synergies from those two acquisitions are coming in above our initial expectations and at a faster pace. I'm proud of our integration team's effort to drive additional value from both, and I'm excited for how each expands our exposure to key end markets. Nokia had another strong quarter, as the addition of ACT's high-quality low-voltage installation and integration capabilities is helping us enhance our offerings there. Growth in NOKI continues consistent with our expectations and we look forward to adding additional color on its performance as it becomes more meaningful portion of our results. Now shifting to the financial highlights for the quarter. We delivered consolidated revenues of $263 million, an increase of approximately 40% as compared to the same period last year, or approximately 35% on an organic basis. The growth reflected strength in all of our sales channels, with commercial and other once again leading the way, and we continue to benefit from the contributions from the DBCI and ACT acquisitions, which contributed $8.7 million in the quarter. Our adjusted EBITDA of $63 million came in approximately 74% higher than Q3 of 21, which represents an adjusted EBITDA margin of 24.1%, an improvement of 480 basis points year over year. During the quarter, commercial actions, cost-saving initiatives, and volume growth had a significant impact, helping to offset higher costs we continue to experience in many parts of our business. Our company also continues to generate strong cash flows, which Anselm will discuss in further detail shortly. Year-to-date, our free cash flow conversion was 71% of adjusted net income. We expect cash conversion to remain solid over time, putting us in a strong position to focus on maintaining our leverage within our target range of 2.5 to 3.5 times adjusted EBITDA while being flexible for value enhancing opportunities. I want to expand on the point about leverage. I'm extremely proud that we've been able to achieve our target range less than 18 months after becoming a public company. Solid execution, strong underlying fundamentals, and prudent uses of cash put us in the enviable position today where we can run the business with a healthy balance sheet while being able to analyze both organic and inorganic growth opportunities. Our end markets remain strong and resilient. We look to leverage our leading market position to capture additional share and create long-term value for all stakeholders. All of this has resulted in an 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 updated outlook for the full year.