Janus International Group, Inc.

Hello, and welcome to the Janus International Group fourth quarter and full year 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's 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 Rolwing, Vice President, Investor Relations, FP&A, and M&A of Janus. Thank you. You may begin.

Thank you, operator, and thank you all for joining our earnings conference call. I'm joined today by our Chief Executive Officer, Ramey Jackson, and our Chief Financial Officer, Anthony Wong. 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 janiceintl.com. Before we begin, I would like to remind you that today's call may include forward-looking statements. Any statements made 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 identifies 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 and forward-looking statements made by us during this call is based only on information currently available to us and speaks only as of the date when it is made. In addition, we will be discussing or providing certain non-GAAP financial measures today, including adjusted EBITDA, adjusted need and a margin, adjusted net income, and adjusted EPS. Please see our release and filings for a reconciliation of these non-GAAP measures to their most directly comparable GAAP measures. Today, we announce that the Board has approved a stock repurchase program of $100 million. We make no assurances that any repurchases will take place. On today's call, Ramey will provide an overview of the business. Ansem will continue with the discussion of our financial results and introduce our 2024 guidance before Ramey shares some closing thoughts and we open up the call for questions. At this point, I will turn the call over to Ramey.

Thank you, John. I'd like to kick off my comments today with a recap of Janice's financial, operational, and strategic highlights and accomplishments. 2023 proved to be another year of outstanding momentum. Everything we achieve at Janice is a team effort, and I couldn't be prouder of our employees' dedication, hard work, and professionalism. We delivered strong financial results, raising and exceeding financial guidance throughout the year, and delivered full-year adjusted EBITDA that was up 25.9% on a 4.6% increase in revenue. We converted over 140% of adjusted net income to free cash flow of $196 million. This drove year-end net leverage to a record low since going public at 1.6 times, down another 1.2 times during the year, and below our stated long-term target range of two to three times. Our core business is self-storage, which consists of new construction and restore, rebuild, replace, our R3 sales channel. Combined, self-storage makes up roughly two-thirds of our revenue and even a higher percentage of our EBITDA. As we have previously said, the margin profiles across the two components of self-storage are similar, making us agnostic to how our customers seek to add much-needed capacity. And while we will report specifics for each channel, along with our commercial and other segments, the discussion of total self-storage helps to smooth out the quarterly noise across the two segments given the lumpiness of project timing. For full year 2023, on a combined basis, self-storage was up 13.2%, driven by new construction, which was up 22.1%, while the R3 sales channel increased 4.3%. Industry fundamentals continue to drive investment in self-storage capacity, which over the last several quarters has focused on greenfield sites, compared to 2022, when we saw more demand for R3 projects. Commercial and other was off 10.2% for the full year. Results reflected challenging comps for the year-ago period, as well as decline in demand for certain product lines. We continue to innovate and broaden our reach to various end markets in order to access tremendous untapped potential on the commercial side. Despite the year-over-year top line decline, we are very excited about our opportunities there. Nokia, our innovative suite of remote access solutions, had another strong quarter to top off a year of expansion and capabilities in customer adoption. For the year, we increased the number of installed Nokia smart entry system units by 66.3% to 276,000. In support of this expansion, in October, we announced the complete back-end migration of Nokia to Amazon Web Services, or AWS. Moving to AWS opens up our ability to further scale the business, leveraging their enterprise software, AI, and security capabilities, and positioning us to lead digital innovation in self-storage. We have both enhanced global reach and improved our user experience for both customers and their tenants. We also opened our Atlanta Software Center, which gives us expanded capabilities to scale the Nokia business for continued strong demand. In January, we announced that a customer intends to expand its install base of Nokia Smart Locks across its 43 facilities. This followed our September announcement that a major REIT intends to expand its install base for our Nokia Screen Digital Access across more than 400 additional facilities, above and beyond their 700 facilities to date. So as you can see, we continue to be excited about Nokia and what it can mean for the future of Janus. On the operations front, we recently opened our first European manufacturing facility in Poland. This new facility is strategically located to serve our European market. The fourth quarter also saw a major milestone reach for Janus. As Clear Lake, our financial sponsor and partner when we became public, sold the last of its position and stepped down from their board seats. This nearly doubled our public float, dramatically improved our stock liquidity, In adherence with our governance objectives, in January, we announced the addition of three highly accomplished independent directors. On the basis of our solid record of strong results, robust balance sheet, exceptional cash generation profile, expanded flow, and desire to create shareholder value through multiple paths, we are pleased today to announce the $100 million share repurchase plan authorized by the board. The ability to repurchase shares only adds to our commitment of pursuing value-enhancing initiatives through organic expansion and M&A while maintaining a prudently leveraged balance sheet. In summary, we are excited that in 2023, we were able to build on our momentum with another year of record results and strong cash flow while further eleveraging the company. We look forward to expanding our strong market position to capture additional share and create long-term value for all of our stakeholders in 2024 and beyond. With that, I'll turn the call over to Anselm for a further overview of our results, along with our initial 2024 guidance. Anselm? Thanks, Ramey, and good morning, everyone.