Janus International Group, Inc.

Please stand by, we're about to begin. Hello, and welcome to the Janus International Group first quarter 2025 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, Ms. Sarah Maciok, Senior Director, Investor Relations of Janus. Thank you. You may begin, Ms. Maciok.

Thank you, Operator, and thank you all for joining our earnings conference call. I am joined today by our Chief Executive Officer, Ramey Jackson, and our Chief Financial Officer, Ansem Wong. We hope that you have seen our earnings release issued this morning. 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. Before we begin, I would like to remind you that today's call may include forward-looking statements. Any statements made describing our beliefs, plans, strategies, expectations, projections, and assumptions are forward-looking statements. 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 identify 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 any forward-looking statement 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 EBITDA 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 measure. On today's call, Ramey will provide an overview of our business. Ansem will continue with the discussion of our financial results and 2025 guidance before Ramey shares some closing thoughts and we open up the call for your questions. At this point, I will turn the call over to Ramey.

Thank you, Sarah, and good morning, everyone. Thank you all for joining us today. I'm pleased with our start to 2025 with results mostly in line with our expectations despite ongoing macroeconomic volatility. Our team continues to execute well in this challenging environment, maintaining our focus on operational excellence and disciplined capital allocation while positioning the business for long-term success. The strength of our business model has enabled us to navigate these headwinds effectively while continuing to invest in the future. With that, let me start by highlighting a few key themes related to our first quarter results. First, despite ongoing market uncertainty, we're seeing growth in our backlog and continued stability in our pipeline. Second, we're making progress on our cost reduction plan, which is yielding tangible benefits. Third, we continue to demonstrate financial strength with robust cash generation and disciplined capital allocation. And finally, we believe we are well positioned to navigate the current tariff environment. For the first quarter of 2025, we delivered revenue of $210.5 million, down 17.3% compared to first quarter of 2024. Total self-storage saw a decrease of 23.1% given a decline in volume associated with the uncertainty in the economic and interest rate environment. Our commercial and other sales channel saw a decrease of 1% driven by a softness and rolling sheet door market partially offset by a contribution from our TMC acquisition completed last May. Our NOKI Smart Entry System continues to gain traction in the market with 384,000 installed units at quarter end representing sequential growth of 5.2%. We're excited about the momentum we're building in this business and see opportunities for further growth as customer adoption of Nokia Ion continues in 2025. While customers remain cautious about their liquidity and capital deployment in the current environment, we are confident in the underlying demand for self-storage solutions. The restructuring initiatives we implemented in 2024 are progressing well. with our structural cost reduction plan on track to deliver approximately $10 million to $12 million in annual pre-tax cost savings by the end of 2025. These actions are designed to improve margins, simplify our organizational structure, and enhance our operational efficiencies. From a financial standpoint, we continue to demonstrate the resilience of our business model. Our excellent cash flow generation and balance sheet have provided us the financial flexibility to make a voluntary prepayment of $40 million on our first lien term loan and repurchase 0.6 million shares for a 5.1 million under our share repurchase program during the quarter. At quarter end, we had 16.3 million remaining on our share repurchase authorization. I'd like to take a moment to address tariffs and the potential expense impacts to Janus. While the bulk of our steel and material inputs are sourced domestically, we do have some exposure to components sourced from areas that we expect will be impacted by tariffs. We have dual sources for many of our components, which coupled with our inventory on hand, allows us to mitigate much of our exposure to tariffs in 2025. At this time, we estimate the total potential expense impact related to tariffs for 2025 to be in the low single-digit millions. At the current expected tariff rates beyond 2025, we estimate the potential ongoing annual impacts to be in the range of 10 to 12 million. We anticipate that our productivity and commercial actions will provide a mitigating effect against these impacts. As we look ahead, we remain confident in the long-term fundamentals of our business. We expect the self-storage industry to continue to benefit from strong underlying demand drivers and believe there is significant opportunity for our R3 business as consolidation across the self-storage industry, coupled with the average facility age exceeding 20 years, will lead customers focusing their capital allocation on existing properties. As an industry leader in self-storage solutions, our strong balance sheet, exceptional cash flow generation, and suite of innovative offerings positions us well to deliver attractive long-term shareholder value. Now I'll turn the call over to Anselm for a detailed review of our financial results and updates to our 2025 guidance. Anselm?