Janus International Group, Inc.

Hello, and welcome to Janus International's second quarter 2023 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. You may begin, Mr. Rowling.

Thank you, Operator, and thank you all for joining our second quarter 2023 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 janiceintl.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 a reconciliation of these non-GAAP measures to their most directly comparable GAAP measure. I'm 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 a discussion of our financial results and outlook before we open up the call for your questions. At this point, I'll turn the call over to Randy.

Thank you, John, and good morning, everyone. The momentum we established to start the year accelerated in the second quarter, resulting in record financial results that position us to deliver another year of outstanding performance across the platform. Customer demand for our products and solutions continue to be robust. as the long-term bullish fundamentals we see across our end markets show resilience against an uncertain economic backdrop. Specifically, the demand from facility owners driven by high occupancy rates and fundamental shifts in their customers' behavior continues on both the new construction and R3 side of the business. Our backlog and visibility into our end markets gives us the confidence to once again raise our outlook for the year and positions us to achieve our longer-term goals for revenue growth and margin. I would like to thank all of our employees without whom our continued strong performance and success wouldn't be possible. Now, turning to some specific thoughts around the quarter. Janus' record second quarter operational and financial results included solid year-over-year gains in revenues, dramatic margin improvement, further deleveraging, and solid cash generation. The fundamentals inherent throughout the industry that fuel investment decisions by our customers to add much-needed capacity are happening both through new construction and conversions and expansions. Our Nokia smart entry system had another strong quarter as we continue to ramp our capabilities and expand our market penetration. We ended second quarter with approximately 230,000 total installed units, representing nearly 39% growth year-to-date. Our smart access solution, headlined by Nokia, represent the best our industry has to offer, and we are excited by both the accelerating adoption of its use and the future it has in store. Now shifting to the financial highlights for the quarter. we delivered consolidated revenue of 270.6 million, an increase of approximately 9.2% as compared to the same period last year. This growth included particular strength in new construction up 33.9% while R3 was up 7.6% and commercial and other was 9.3% lower. Our adjusted EBITDA of 74 million came in approximately 46% higher than Q2 2022, which represents an adjusted EBITDA margin of 27.3%, an improvement of 680 basis points year-over-year. During the quarter, favorable mix, productivity initiatives, and commercial actions more than offset higher costs we continue to experience in many parts of business, particularly labor and logistics. Our company continues to generate strong cash flows, which Anselm will discuss in further detail shortly. Over the past 12 months through the end of the second quarter, our free cash flow conversion of adjusted net income was 100%. We expect cash conversion to remain solid over time, putting us in a strong position to focus on maintaining a robust balance sheet while also maintaining the firepower to respond to value-enhancing M&A opportunities as we identify them. Speaking of the balance sheet, our net leverage remains a key focus of our board and our management team. I am extremely proud that we were able to reduce our net leverage this quarter by another 30 basis points, putting us at 2.1 times net debt to trailing 12-month adjusted EBITDA at quarter end and comfortably within our target range of two to three times. Before I hand it over to Anselm, I'd like to talk about our progress towards our longer-term objective laid out in our Q4 2022 earnings call. We are on pace to achieve all these targets by expanding our industry-leading position in our end markets, growing Nokia adoption with our self-storage customers, driving efficiencies across the platform, and when appropriate, executing value-accretive M&A. With respect to our Stated longer-term goals, our top-line growth for the first half of this year puts us on track to achieve our full-year target range of 4% to 6% organic revenue growth. Our EBITDA margins for the quarter in the first half of 2023 positions us well towards achieving our longer-term target range of 25% to 27%. Our strong conversion of adjusted net income to free cash flow in the first half of 2023 sets us up to achieve our target conversion range of 75% to 100% for the full year. Our end markets remain strong and resilient. We continue to look at ways to leverage our leadership position to capture additional share and create long-term value for all of our stakeholders. With that, I'll turn the call over to Ansem for an overview of the financials and our updated outlook for the full year.