Janus International Group Inc (JBI) 2023 Q4 法說會逐字稿

In our Group Fourth Quarter and Full Year 2023 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded. I would now like to turn the call over to your host,Mr. John Rohlwing, Vice President, Investor Relations, FP&A and M&A of Janus. Thank you may begin.

在我們的集團 2023 年第四季和全年財報電話會議上。（操作員指示）謹此提醒，本次會議正在錄製中。我現在想把電話轉給你的主持人，先生。 John Rohlwing，Janus 投資者關係、FP&A 和併購副總裁。謝謝你可以開始了。

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, Anselm 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 Genesis INTL. dot com.

謝謝運營商，也謝謝大家參加我們的財報電話會議。今天我們的執行長雷米傑克森 (Ramey Jackson) 也加入了我的行列。以及我們的財務長 Anselm Wong。我們希望您已經看到我們今天早上發布的收益報告。請注意，我們也發布了支援此電話會議的演示文稿，您可以在 Genesis INTL 網站的投資者部分找到該演示文稿。 .com。

Before we begin, I would like to remind you that today's call may include forward-looking statements. Statements made describing our belief, goal, plans, strategy, expectation, projections, forecasts, and assumptions are forward-looking statements.

在開始之前，我想提醒您，今天的電話會議可能包含前瞻性陳述。描述我們的信念、目標、計劃、策略、期望、預測、預測和假設的聲明均為前瞻性聲明。

Please note that the company's actual results we 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 in future results.

請注意，由於多種原因，公司的實際結果可能與此類前瞻性陳述所預期的結果有所不同，其中許多原因超出了我們的控制範圍。其中確定了主要風險和可能影響我們未來業績的業務前景的不確定性。

We assume no obligation to update publicly any forward-looking statements and forward-looking statements made by us during this call is that only on information currently available to us includes only as of the date when made penetration 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 measures.

我們不承擔公開更新任何前瞻性陳述的義務，並且我們在本次電話會議期間做出的前瞻性陳述是，僅我們當前可獲得的信息僅包括截至滲透之日的信息，我們將討論或提供某一些非-今天的 GAAP 財務指標，包括調整後 EBITDA、調整後 EBITDA 利潤率、調整後淨利潤和調整後每股收益。請參閱我們的新聞稿和備案文件，以了解這些非公認會計準則衡量指標與其最直接可比較的公認會計準則衡量指標的對帳情況。

Today, we announced that the Board has approved a stock repurchase program of $100 million. We've had no assurance that any repurchases will take place on Tuesday call. Ramey will provide an overview of the business and some will continue with a discussion of our financial results and introduce our 2024 time before Ramey shares. Some closing thoughts before we open up the call for questions.

今天，我們宣布董事會已批准 1 億美元的股票回購計畫。我們無法保證任何回購都會在周二的電話會議上進行。Ramey 將提供業務概述，有些人將繼續討論我們的財務業績，並在 Ramey 股票之前介紹我們的 2024 年時間。在我們開始提問之前，有一些總結性的想法。

At this point, I will turn the call over to Ramey .

此時，我會將電話轉給 Ramey。

Thank you, John. I'd like to kick off my comments today with a recap of Genesis financial, operational and strategic highlights and accomplishments. 2023 proved to be another year of outstanding momentum. Everything we achieve at Genesis, a team effort and I couldn't be prouder of our employees' dedication, hard work and professionalism.

謝謝你，約翰。我想在今天的評論開始時回顧 Genesis 的財務、營運和策略亮點和成就。事實證明，2023 年又是勢頭強勁的一年。我們在 Genesis 所取得的一切都是團隊努力的成果，我為員工的奉獻精神、辛勤工作和專業精神感到無比自豪。

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 2 times to 3 times our core business and self storage, which consist of new construction and restore rebuild, replace our three sales channel combined self storage makes up roughly two thirds of our revenue and even a higher percentage of our EBITDA.

我們取得了強勁的財務業績，全年提高並超越了財務指引。並交付全年調整後 EBITDA。營收成長 4.6%，成長 25.9%。我們將超過 140% 的調整後淨利潤轉化為 1.96 億美元的自由現金流。這使得年末淨槓桿率創下上市以來的新低，為 1.6 倍，年內又下降了 1.2 倍，低於我們既定的長期目標範圍，即核心業務和自助倉儲（包括新建建築）的 2 倍至 3 倍恢復重建、更換我們的三個銷售管道組合的自助倉儲約占我們收入的三分之二，甚至占我們EBITDA 的比例更高。

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 segment, 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.

正如我們之前所說，自助倉儲的兩個組成部分的利潤概況相似，這使得我們不知道客戶如何尋求增加急需的容量。雖然我們將報告每個管道以及商業和其他細分市場的具體信息，但考慮到 2023 年全年項目時間的混亂，對總自助存儲的討論有助於消除這兩個細分市場的季度噪音。

On a combined basis, self storage was up 13.2%, driven by new construction, which was up 22.1%. While the RV 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 our three projects, commercial and other was off 10.2% for the full year results reflected challenging comps for the year ago period.

綜合來看，在新建築成長 22.1% 的推動下，自助倉儲成長了 13.2%。而房車銷售通路則成長了4.3%。產業基本面持續推動對自助倉儲容量的投資，與2022 年相比，過去幾季的自助倉儲容量投資主要集中在新建場地，當時我們看到對商業和其他三個項目的需求增加，全年業績下降了10.2%，反映出挑戰去年同期的比較。

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. Notably, our innovative suite of Remote Access Solutions had another strong quarter to top off a year of expansion in capabilities and customer adoption.

以及某些產品線的需求下降。我們繼續創新並擴大我們對各個終端市場的影響力，以便在商業方面獲得巨大的未開發潛力，儘管收入同比下降，但我們對我們在那裡的機會感到非常興奮。值得注意的是，我們創新的遠端存取解決方案套件在本季又表現強勁，為一年來的功能和客戶採用擴展畫上了圓滿的句號。

For the year, we increased the number of installed Nike 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 note 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.

今年，我們將耐吉智慧門禁系統的安裝數量增加了 66.3%，達到 276,000 台，以支持這項擴張。10 月份，我們宣布將 note 後端完整移轉到 Amazon Web Services 或 AWS。遷移到 AWS 使我們能夠進一步擴展業務，利用他們的企業軟體、人工智慧和安全功能，並使我們能夠引領自助儲存領域的數位創新。我們增強了全球影響力，並改善了客戶及其租戶的使用者體驗。

We also opened our Atlanta software center, which gives us expanded capabilities to scale the Nike business for continued strong demand. In January, we announced that a customer intends to expand its installed base. Of note the smart locks across its 43 facilities.

我們還開設了亞特蘭大軟體中心，這使我們能夠擴展耐吉業務以滿足持續強勁的需求。一月份，我們宣布一位客戶打算擴大安裝基礎。值得注意的是，其 43 個設施均配備智慧鎖。

This followed our September announcement that a major RE intends to expand its installed base for our multi-screen digital access across more than 400 additional facilities above and beyond their 700 facilities today. So as you can see, we continue to be excited about Nequi and what it can mean for the future of gas.

先前，我們在 9 月宣布，一家大型 RE 打算將其多螢幕數位存取安裝基礎擴大到 400 多個額外設施，超過目前的 700 個設施。正如您所看到的，我們仍然對 Nequi 及其對天然氣未來的意義感到興奮。

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.

在營運方面，我們最近在波蘭開設了第一家歐洲製造工廠。這個新工廠地理位置優越，旨在服務我們的歐洲市場。

Fourth quarter also saw a major milestone reached for Agennix has clearly our financial sponsor and partner when we became public. So the last of its position and stepped down from their board seats. Nearly doubled our public float dramatically improve our stock liquidity in adherence with our governance objectives.

第四季也實現了一個重要的里程碑，當我們上市時，Agnnix 顯然已經成為我們的財務贊助商和合作夥伴。因此，最後一個位置從董事會席位上退了下來。我們的公眾持股增加了近一倍，大大提高了我們的股票流動性，符合我們的治理目標。

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 on only adds to our commitment of pursuing value enhancing initiatives through organic expansion and M&A while maintaining a prudently leveraged balance sheet.

一月份，我們宣布增加三位卓有成就的獨立董事，這是基於我們良好的業績記錄、穩健的資產負債表、卓越的現金生成狀況、擴大的流量以及透過多種途徑創造股東價值的願望。今天，我們很高興地宣布董事會授權的 1 億美元股票回購計劃，回購股票的能力只會增強我們透過有機擴張和併購追求價值提升舉措的承諾，同時保持審慎的槓桿資產負債表。

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 deleveraging 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.

總而言之，我們很高興在 2023 年繼續保持強勁勢頭，再創紀錄的業績和強勁的現金流，同時進一步降低公司槓桿率。我們期待在 2024 年及以後擴大我們強大的市場地位，以獲取更多份額並為所有利益相關者創造長期價值。

With that, I'll turn the call over to Anselm for a further overview of our results, along with our initial 2024 guidance. Anselm?

接下來，我將把電話轉給 Anselm，以進一步了解我們的結果以及我們最初的 2024 年指導。安瑟姆？

So thanks, Ramey, and good morning, everyone. I am proud of our record results in our success during 2023 in growing our business, generating strong cash flow and deleveraging our balance sheet to position us for success.

謝謝拉米，大家早安。我對 2023 年我們在發展業務、產生強勁現金流和去槓桿化資產負債表方面取得的成功記錄感到自豪，為我們的成功奠定了基礎。

I will first focus my comments on our fourth quarter performance in the fourth quarter. Consolidated revenue of $263.7 million was up 5.7% as compared to the prior year quarter, as strength in total sales services more than offset by a decline in our commercial and other sales channel.

我首先將重點放在我們第四季的第四季業績。綜合收入為 2.637 億美元，較去年同期成長 5.7%，這是因為總銷售服務的強勁勢頭被我們商業和其他銷售管道的下降所抵消。

Together, our self storage business was up 2.5% for the quarter. Within self-storage news construction continued its strong year results with growth in the quarter of 14.3% as customers continue to add new greenfield capacity.

本季我們的自助倉儲業務總共成長了 2.5%。在自助倉儲方面，隨著客戶不斷增加新的新建產能，新聞大樓繼續保持強勁的年度業績，本季成長 14.3%。

The other portion of our self storage business, our three was off 9.1% for the quarter as a result of a decline in retail stores conversion activity compared to prior year.

我們的自助倉儲業務的另一部分，即我們的三個業務，由於零售店轉換活動與去年同期相比下降，本季下降了 9.1%。

Our commercial other segment saw a 20.8% decline in the fourth quarters, driven by particularly strong comps last year and shifts in demand for certain product lines that were at an all-time high fourth quarter adjusted EBITDA of $74.3 million was up 8.9% compared to the year ago quarter. This solid performance produced an adjusted EBITDA margin of 28.2%, up 380 basis points from the prior year level.

我們的商業其他部門在第四季度下降了20.8%，這是由於去年特別強勁的比較以及對某些產品線的需求變化推動的，第四季度調整後EBITDA 達到歷史新高，為7,430 萬美元，與去年同期相比成長了8.9%一年前的季度。這一穩健的業績使調整後的 EBITDA 利潤率達到 28.2%，比上年水準成長 380 個基點。

This improvement in profitability is a result of favorable mix from our higher margin self-storage businesses as compared to our commercial and other sales channel and a continued focus on operational improvements, which more than offset the revenue decline.

獲利能力的提高是由於與我們的商業和其他銷售管道相比，我們利潤率較高的自助倉儲業務的有利組合以及對營運改善的持續關注，這足以抵消收入的下降。

For the fourth quarter of 2023, we produced adjusted net income of $35.9 million, a 9.8% year-over-year improvement and adjusted diluted earnings per share of $0.24. Adjusted net income was impacted during the quarter by drivers already covered, including favorable mix and cost containment initiatives looking at the full year, we generated cash from operating activities of $215 million, including $68.5 million in the fourth quarter, continuing to demonstrate the robust cash generation profile of the business.

2023 年第四季度，我們的調整後淨利潤為 3,590 萬美元，年增 9.8%，調整後稀釋每股收益為 0.24 美元。本季調整後的淨利潤受到已經涵蓋的驅動因素的影響，包括有利的組合和成本控制舉措，從全年來看，我們從經營活動中產生了2.15 億美元的現金，其中第四季度為6850 萬美元，繼續展示了強勁的現金企業的一代概況。

Capital expenditures for the year were $19 million, up from $8.8 million in 2022. Growth capital projects this year included the Poland factory build-out, additions of new roll formers and Vetco and enhancements to our lead order process within Microsoft Dynamics, we are proud of our free cash flow profile, which reflects the financial strength of our results.

今年的資本支出為 1,900 萬美元，高於 2022 年的 880 萬美元。今年的成長資本項目包括擴建波蘭工廠、增加新的軋輥成型機和 Vetco 以及增強 Microsoft Dynamics 中的主導訂單流程，我們對我們的自由現金流狀況感到自豪，這反映了我們業績的財務實力。

For the full year, we generated free cash of about $196 million. This represented a free cash flow conversion of adjusted net income of 142%. We finished the year with $296.7 million of total liquidity, including $171.7 million of cash and includes on the balance sheet. Our total outstanding debt at year end was $615 million and our net leverage was 1.6 times. Combination of strong liquidity, continued cash generation and balance sheet strength put us in a position to pursue M&A targets and enact our newly authorized $100 million share repurchase program.

全年我們產生了約 1.96 億美元的自由現金。這意味著調整後淨利潤的自由現金流轉換為 142%。年底，我們的流動資金總額為 2.967 億美元，其中包括資產負債表中的 1.717 億美元現金。截至年底，我們的未償債務總額為 6.15 億美元，淨槓桿率為 1.6 倍。強大的流動性、持續的現金產生和資產負債表實力相結合，使我們能夠實現併購目標並實施新授權的 1 億美元股票回購計劃。

I also like to add that as part of our continued focus on best-in-class operations reporting and governance as of the end of our fiscal 2023, we have remediated all remaining material weaknesses from the prior year.

我還想補充一點，作為我們截至 2023 財年結束時繼續關註一流營運報告和治理的一部分，我們已經修復了上一年剩餘的所有重大缺陷。

Now moving to our 2024 guidance, building off the momentum we produced last year and supported by our current backlog and pipeline full year 2024 revenue is expected to be in the range of $1.092 billion to $1.125 billion, representing organic growth of 4% at the midpoint versus 2023.

現在轉向我們的2024 年指導，在我們去年產生的勢頭的基礎上，並在我們當前的積壓訂單和管道的支持下，2024 年全年收入預計將在10.92 億美元至11.25 億美元之間，中點有機成長4%與 2023 年相比。

We expect total self source to continue to grow and have returned to growth for commercial and other adjusted EBITDA is expected to be in the range of $286 million to $310 million at the midpoint. This represents a 4.3% increase versus prior year and reflects an adjusted EBITDA margin at the midpoint of 26.9%. We expect to see a return to normal seasonality in 2024, where the second and third quarter comprise a large portion of revenues compared to the first and fourth quarter.

我們預計自營資金總額將繼續成長，並已恢復商業和其他調整後 EBITDA 的成長，中位數預計將在 2.86 億美元至 3.1 億美元之間。這比前一年增長了 4.3%，反映出調整後的 EBITDA 利潤率為 26.9% 的中位數。我們預計 2024 年將恢復正常季節性，與第一季和第四季相比，第二季和第三季佔營收的很大一部分。

Thank you. I will now turn the call over to Ramey for his closing remarks. Ramey?

謝謝。現在我將把電話轉給雷米，讓他作總結發言。雷米？

Thank you, Anselm and Amazon. Building off this strong foundation, we are well positioned for another exciting year in 2020 for one that is consistent with the longer-term vision for the company. We laid out a year ago back then we told you that over the course of the next three to five years, we expect annual revenues to grow organically at a 4% to 6% range.

謝謝安瑟姆和亞馬遜。在此堅實的基礎上，我們已做好充分準備，迎接 2020 年又一個激動人心的一年，這與公司的長期願景相一致。一年前我們就曾告訴大家，在未來三到五年內，我們預計年收入將有機成長 4% 到 6%。

Adjusted EBITDA margins of 25% to 27%, net leverage to be in the range of two to three times and free cash flow to be 75% to 100% of adjusted net income. As you can see from our results, 2023 met or beat all of those targets.

調整後的 EBITDA 利潤率為 25% 至 27%，淨槓桿率為調整後淨利潤的 2 至 3 倍，自由現金流為調整後淨利潤的 75% 至 100%。正如您從我們的結果中看到的，2023 年實現或超過了所有這些目標。

Our long-term objectives remain intact. And based on the guidance and some laid out, we expect 2024 to feature another year of exceptional performance. We are the industry leader in self storage solutions with strong customer relationships, particularly among the best capitalized owner operators.

我們的長期目標保持不變。根據指導意見和一些規定，我們預計 2024 年將是另一個表現出色的一年。我們是自助倉儲解決方案的行業領導者，擁有強大的客戶關係，特別是在資本最雄厚的業主經營者中。

We have delivered strong organic and acquired top line growth throughout our time as a public company and have dramatically improved our EBITDA margins, cash flow conversion and net leverage as M&A opportunities come to fruition.

作為一家上市公司，我們在整個過程中實現了強勁的有機成長和收入成長，隨著併購機會的實現，我們的 EBITDA 利潤率、現金流轉換和淨槓桿率顯著提高。

We have the expertise and dry powder on our balance sheet to execute accretive shareholder value enhancing deals. And now we have the expanded capital allocation program to include the new $100 million share repurchase program. I look forward to continuing our positive momentum in 2024 and beyond as we drive long-term value creation for all of our stakeholders. Thank you again for joining us. Operator, we can now open up the lines for Q&A, please.

我們的資產負債表上擁有專業知識和乾粉，可以執行增值股東價值的交易。現在我們擴大了資本配置計劃，其中包括新的 1 億美元股票回購計劃。我期待在 2024 年及以後繼續保持我們的正面勢頭，為所有利害關係人推動長期價值創造。再次感謝您加入我們。接線員，我們現在可以開通問答線了。

(Operator Instructions) Daniel Moore, CJS Securities.

（操作員指示）Daniel Moore，CJS 證券。

Thank you. Good morning.

謝謝。早安.

Very good morning and so on and thanks for all the color and congrats on a finish to a really, really strong year on maybe start with the what was a little softer in commercial obviously stood out this quarter. You mentioned declines from certain products from all-time highs. Can you maybe elaborate on that a bit? And then some I think you mentioned in your guide your remarks that you expect to return to growth in 24, do you expect positive growth in commercial for the full year or simply kind of a return to growth at some point?

早安，等等，感謝所有的色彩，並祝賀您度過了一個非常非常強勁的一年，也許從商業上稍微溫和的東西開始，本季度明顯脫穎而出。您提到某些產品從歷史高點下降。能詳細說明一下嗎？然後，我認為您在指南中提到您預計 24 年內將恢復成長，您預計全年商業將出現正成長，還是只是在某個時候恢復成長？

Yes, good morning, Dan.

是的，早安，丹。

Great question.

很好的問題。

So look, at we've been talking about the past couple of quarters about a segment within the commercial end market, which is the car sports and shed business, which really accelerated during the pandemic when folks were staying at home.

所以看，過去幾季我們一直在談論商業終端市場中的一個細分市場，即汽車運動和棚屋業務，在大流行期間，當人們留在家裡時，它確實加速了。

And so that's really the biggest driver of that miss in commercial and in a way, kind of and some years reporting to and

因此，這確實是商業失誤的最大驅動因素，在某種程度上，有些年來向和報告

Basically kind of what we've talked about is if you look at our commercial business, we said Q4 would be the last quarter to kind of normalize that carport and shed and segment of business. What we're seeing is normal sales in that category now. And that's why when we look at 2020 for you that our commercial segment, we expect growth again back there part of the within that commercial business, we have a segment called rolling steel that we've been pushing that throughout the year. And if you backed out the of the coverage and say it sheds, you would have saw some decent growth there. So we're bullish on that part of the commercial that will help us get to growth again.

基本上我們討論的是，如果你看看我們的商業業務，我們說第四季將是車庫、棚屋和業務部分正常化的最後一個季度。我們現在看到的是該類別的正常銷售。這就是為什麼當我們展望 2020 年我們的商業業務時，我們預計商業業務的一部分會再次成長，我們有一個稱為軋鋼的業務，我們全年都在推動這項業務。如果你退出覆蓋範圍並說它會減少，你會看到那裡有一些不錯的增長。因此，我們看好這部分廣告，它將幫助我們再次成長。

That's helpful. And maybe just talk about cadence as we move to Q1, expect a little bit of kind of year-over-year declines and then improved growth as we move through the year on a year-over-year basis or are we really through the worst of the comps already?

這很有幫助。也許只是談論我們進入第一季時的節奏，預計會出現一些同比下降，然後當我們全年同比增長時，增長會有所改善，或者我們是否真的經歷了最糟糕的時期已經有比較了嗎？

Yes. So if you look at what we saw, the Dan, so Q4, we're seeing is a bit normalization of the quarter. So that's why we mentioned it in the transcript earlier, is that the Q4 and Q1 is usually a normal lower quarters because of weather because of seasonality, stuff like that so we're expecting to see some of that in Q1 where it's going to be the normal slower start.

是的。因此，如果你看看我們所看到的，丹，那麼第四季度，我們看到的是該季度的正常化。這就是我們之前在文字記錄中提到的原因，第四季度和第一季通常是正常的較低季度，因為天氣、季節性等因素，所以我們預計在第一季度會看到一些這樣的情況正常較慢的啟動。

And then back into when you're into your summer falls spring kind of better construction areas to see that. I think the one reminder is always that we are this is a construction business, so it does get impacted by weather. So unfortunately, on the West Coast. There's been some flooding there that's impacting a number of our jobs here as well. So I think what we'll see is just that normal slower first quarters of Q4 as well. And in fact, our big quarters of growth in the Q2,Q3.

然後當你進入夏季、秋季、春季時，回到更好的建築區域，看看這一點。我認為唯一提醒我們的是，我們是一家建築企業，所以它確實會受到天氣的影響。不幸的是，在西海岸。那裡發生了一些洪水，也影響了我們這裡的一些工作。因此，我認為我們將看到的是第四季度第一季正常的放緩。事實上，我們的大季度成長是在第二季、第三季。

Very helpful. And then shifting to self storage. Your backlog does provides really strong visibility for the next few quarters beyond that, just how would you describe the pipeline of new opportunities entering 2024 compared to maybe 12, 18 months ago?

很有幫助。然後轉向自助倉儲。您的積壓工作確實為接下來的幾個季度提供了非常強大的可見性，與 12、18 個月前相比，您如何描述進入 2024 年的新機會管道？

Yes. Look at we don't really give detail on the backlog. But what I can say directionally is it still remains strong in kind of both R3 and new construction. So we're very optimistic there.

是的。看看我們並沒有真正提供積壓的詳細資訊。但我可以直接說的是，它在 R3 和新建築方面仍然保持強勁。所以我們對此非常樂觀。

Excellent.

出色的。

Maybe one more I'll jump out and I know you've heard this question before and clearly you had a favorable mix in Q4 and partly over the year. But your long-term margin targets 25% to 27% already at the high end this year and above that this quarter. And I know again, there is mix in there, but do you see upside to those projections longer term, particularly as Nike starts to accelerate and gain traction?

也許我會再跳出一個，我知道你以前聽過這個問題，並且顯然你在第四季度以及一年中的部分時間裡有一個有利的組合。但你們的長期利潤率目標已經達到 25% 到 27%，今年已經達到上限，本季甚至更高。我再次知道，其中存在混合因素，但從長遠來看，您是否認為這些預測有好處，特別是當耐吉開始加速並獲得牽引力時？

Thanks.

謝謝。

Again.

再次。

Yes, no, it's a base version. The Onion, you're right, the longer term, yes, absolutely. I think we see some further improvement as no key becomes a bigger part of the mix as well as our normal productivity in the business that we're constantly looking at improvements. So I think what we're looking at is just a there's a short-term benefit from the mix that we got in Q4. It will normalize in 2024, but then longer term I think there's definitely upside.

是的，不，這是一個基礎版本。洋蔥，你是對的，從長遠來看，是的，絕對如此。我認為我們看到了一些進一步的改進，因為沒有一個鍵成為組合中更重要的一部分，以及我們在業務中的正常生產力，我們不斷尋求改進。因此，我認為我們所關注的只是我們在第四季度獲得的組合所帶來的短期好處。它將在 2024 年恢復正常，但從長遠來看，我認為肯定有上行空間。

Great data about jump back with any follow-up.

任何後續行動的跳回的重要數據。

(Operator Instructions) Jeff Hammond, KeyBanc Capital Markets.

（操作員指令）Jeff Hammond，KeyBanc 資本市場。

Hey good morning guys

嘿大家早安

So maybe just staying on self-storage, can you just talk about, you know, kind of how you're seeing the mix of new construction in our three as you move into 24, clearly knew it seemed like you had some backlog catch up and I know there's some big consolidation in 3D. So just wondering if if there's a little more optimism on the growth rate in our three for it's pretty balanced.

所以，也許只是停留在自助存儲上，你能談談，你知道，當你搬到 24 號時，你如何看待我們三個中的新建築的混合，清楚地知道你似乎有一些積壓的趕上我知道3D 領域有一些重大整合。所以只是想知道我們三個的成長率是否更樂觀，因為它相當平衡。

Yes. Look, I think I kind of start off by saying that conversions fall within that R3 bucket, the way that we manage it. So just consistently reported the conversions out of our three. So we do see growth in our three as the industry continues to consolidate and also age. So we're optimistic there. One of the things we're seeing that we mentioned in the past is conversions or the availability of kind of the brick and mortar retail, brick and mortar. It's lower on the when you strip that out, you'll see growth in our three.

是的。看，我想我一開始就說轉換屬於 R3 範圍，也就是我們管理它的方式。因此，我們只是一致地報告了我們三個人的轉換。因此，隨著行業的不斷整合和老化，我們確實看到了這三個行業的成長。所以我們對此持樂觀態度。我們過去提到的一件事是實體零售店的轉換或可用性。當你把它去掉時，你會看到我們三個人的成長。

And then on the new construction front, same thing, it remains strong, I think and a lot of the kind of secondary and tertiary markets are ramping up. That's where folks move kind of post pandemic. And so we're seeing a lot of runway there.

然後在新建築方面，同樣的事情，我認為它仍然強勁，而且許多二級和三級市場正在崛起。這就是人們在大流行後搬遷的地方。所以我們在那裡看到了很多跑道。

Okay.

好的。

And then just back on margins, you've kind of above the 27 for the last three quarters versus guide at 27. So just wondering what the upside and downside risks to that margin guide are outside of maybe some mix normalization?

然後回到利潤率，過去三個季度的利潤率略高於 27，而指引值為 27。那麼，只是想知道，在某種混合正常化之外，該保證金指南的上行和下行風險是什麼？

Yes, I think the biggest thing is the mix authorization. I think where you saw the all the quarters this past year has been fairly consistent and on the higher end of our guide, I think it's just more as we as we looked at 2024 as the normal wise sales, we'll see commercial come back to growth in the US the credit card commercial side was a little lower the new stores. So that brings it back down there. But I think if everything stays consistent, we'll still be within that range that we've seen in the recent quarters.

是的，我認為最重要的是混合授權。我認為你看到的去年所有季度都相當一致，而且在我們指南的高端，我認為這更像是我們將 2024 年視為正常的明智銷售，我們會看到商業回歸美國信用卡商業方面的增長略低於新店。這樣它就回到那裡了。但我認為，如果一切保持一致，我們仍將處於最近幾季所看到的範圍內。

Okay.

好的。

But just on the commercial business, maybe just update us on how you're doing to kind of close that margin gap, I think that was kind of a target to eventually pull those off. Maybe just give us a sense of progress there.

但就商業業務而言，也許只是向我們通報你們正在如何縮小利潤差距，我認為這是最終實現這些目標的目標。也許只是讓我們有一種進步的感覺。

Yes, we will see it will still be a bit lower because the business model is different. It's a distribution model versus the full solution loan storage side. But what we've been working on is actually consolidating the build of a lot of our commercial products as well as opening up our West Coast commercial operation so that we don't have to shift from, say, our North Carolina, Georgia area and sites to get commercial out there. So I think that'll show some improvements in terms of margin as that gets ramped up. But I just as a minor longer-term, it still will be lower because it's not it's a distribution type of business versus a full solution business.

是的，我們會看到它仍然會低一些，因為商業模式不同。這是一種分配模型，而不是完整的貸款儲存解決方案。但我們一直在努力的實際上是鞏固我們許多商業產品的構建以及開放我們的西海岸商業運營，這樣我們就不必從北卡羅來納州、佐治亞州等地區轉移到其他地區。因此，我認為隨著利潤率的提高，利潤率將會有所改善。但我只是從較小的長期來看，它仍然會較低，因為它不是分銷類型的業務而不是完整的解決方案業務。

Okay, great.

好的，太好了。

Thanks, guys.

多謝你們。

Yes, thanks.

對了謝謝。

(Operator Instructions) Bradley Hewitt, Wolfe Research.

（操作員說明）Bradley Hewitt，Wolfe Research。

Hey, good morning, guys. Thanks for taking my question for a favorite. Wondering if you could provide any additional color on what drove the Q4 revenue shortfall versus the prior guidance? Looks like self-storage revenue was down about 3% sequentially. We saw another step down in commercial. You talked about the headwinds and carport and shed.

嘿，早上好，夥計們。感謝您將我的問題列為最愛。想知道您是否可以提供任何其他資訊來說明導致第四季度收入與先前指導相比出現短缺的原因？看起來自助倉儲收入較上季下降了約 3%。我們看到商業領域又出現了下滑。你談到了逆風、車庫和棚屋。

Just curious if there were any other moving pieces in the quarter relative to the guidance.

只是好奇本季是否還有與指導相關的其他變動。

Yeah commercial was the corporate franchise was a little worse than we thought it was going to be in terms of how much the normalization would be. I think you saw that, that piece of it when it printed and in the on the storage side, I think what we saw a little bit more delays in projects there. The backlog is still looking good, like Ramey said, but we saw some pushouts.

是的，商業方面，就正常化程度而言，公司特許經營權比我們想像的要差一些。我想你已經看到了，在列印和儲存方面的一部分，我認為我們在那裡的項目中看到了更多的延遲。正如拉米所說，積壓的訂單看起來仍然不錯，但我們看到了一些延遲。

And again, it's a construction business. So when you look at some of the weather impacts to the country. You saw, again the flooding in the California region that does impact our sites to be able to deliver. So we did see some of that hopefully we'll get through in Q1 when some of the weather related items get normalized, the Wilson will go back to kind of normal business in terms of construction.

再說一遍，這是一項建築業務。所以當你看看天氣對這個國家的影響。您再次看到，加州地區的洪水確實影響了我們網站的交付能力。因此，我們確實看到了其中的一些情況，希望我們能夠在第一季完成，當一些與天氣相關的項目正常化時，威爾遜將在施工方面恢復正常業務。

Okay. That's helpful. And then switching to capital allocation. Given net leverage is now down to 1.6 times, how do you think about balancing of share buybacks versus M&A? Is M&A the priority with buybacks kind of filling the gap in the absence of M&A? Or do you see capital allocation as more balanced going forward?

好的。這很有幫助。然後轉向資本配置。鑑於淨槓桿率現已降至 1.6 倍，您如何看待股票回購與併購之間的平衡？併購是優先事項，回購是否可以填補沒有併購的空白？或者您認為未來的資本配置會更平衡嗎？

No, I think you hit it the way we see M&A is the first and we are definitely looking at targets as we always do. But I think the market at least expectation in terms of pricing is actually normalizing So to get back to a realistic level. So we're hopeful that we can execute on some of the ones that we're looking at. And I think you're exactly right, is that we're glad we get the approval for the and share buybacks. So we have another lever in the meantime, if something slows up in terms of the M&A side to execute on.

不，我認為你做到了，我們認為併購是第一位的，我們肯定會像往常一樣尋找目標。但我認為市場至少在定價方面的預期實際上正在正常化，因此回到了現實水平。因此，我們希望能夠執行我們正在研究的一些內容。我認為你是完全正確的，我們很高興我們獲得了股票回購的批准。因此，如果併購方面的執行速度放緩，我們同時還有另一個槓桿。

Makes sense.

說得通。

(Operator Instructions) John Lovallo, UBS.

（操作員說明）John Lovallo，UBS。

Morning, guys. Thank you for taking my questions as well. And I apologize if you covered this, hey, my line dropped so I apologize if you did cover this, but in terms of the outlook, is of a 4% increase in revenue expected at the midpoint, looks like EBITDA is expected to grow by a little over 4%, maybe 4.3%. And at the mid point, what's driving sort of the lack of leverage on that and that revenue volume?

早安，夥計們。也感謝您回答我的問題。如果你報道了這一點，我很抱歉，嘿，我的線下降了，所以如果你確實報道了這一點，我很抱歉，但就前景而言，預計中點收入將增長4%，看起來EBITDA預計將成長略高於 4%，也許是 4.3%。在中間點，是什麼導致了這一點和收入量缺乏槓桿作用？

Yes, if you look at the what we had talked about in 2023, as we became a public company and actually started adding the cost to yield what we needed, meaning in the back office, finance, HR, legal, et cetera, the functions to really support all the requirements. We only added most of those costs in the back half of the year.

是的，如果你看看我們在2023 年談論的內容，當我們成為一家上市公司時，實際上開始增加成本來產生我們需要的東西，這意味著在後台、財務、人力資源、法律等方面，職能真正支援所有要求。我們只是在今年下半年增加了大部分成本。

So you'll get an impact of the full year of costs there that impacts the ability to get savings there. I think longer term, once we have all that in place, which the last area that we're focused on as a team, we should get normal fixed cost leverage improvement because I, for example, I will need to hire another Chief Accounting Officer and other treasury, et cetera. So it's just a matter of timing of getting adding all those have cost and resources that we needed to support the business.

因此，您將獲得全年成本的影響，從而影響節省成本的能力。我認為從長遠來看，一旦我們把所有這些都落實到位，這是我們作為一個團隊關注的最後一個領域，我們應該得到正常的固定成本槓桿改善，因為我，例如，我將需要聘請另一位首席會計官以及其他金庫等等。因此，添加我們支援業務所需的所有成本和資源只是時間問題。

Understood. You guys have made some really nice progress on the commercial actions in productivity. Can you just help us kind of quantify the cost savings that are expected to come through in 2024 from the actions already taken? And then what is the sort of incremental opportunity as we move through 2024?

明白了。你們在生產力方面的商業行動方面取得了一些非常好的進展。您能否幫助我們量化預計 2024 年透過已採取的行動將節省的成本？那麼，當我們邁入 2024 年時，增量機會是什麼？

Yes. I think for 2024, I think we'll start seeing we haven't disclosed, but we'll start seeing some benefits from the new Poland factory that we put in place, as well as some of the equipment buys that we had in some of our factories there. So I'm expecting without disclosing and some decent benefits from that as well.

是的。我認為到 2024 年，我們將開始看到我們尚未披露的情況，但我們將開始看到我們建立的新波蘭工廠以及我們在某些​​領域購買的一些設備帶來的一些好處。 。因此，我期望在不透露的情況下也能從中獲得一些不錯的好處。

I think longer term, what we're looking at is actually further improvements in consolidation like we always do. So we're always looking at the footprint. We're looking at where we may think. So one of the things that we had guided to that we that is coming is a new West Coast operations for us, the volume there and demand has improved there, and we're looking to actually add some more capacity out there as well. So I think that will further help us improve and be a bit more efficient out there. So you don't have to ship things in that area of the country.

我認為從長遠來看，我們所關注的實際上是像往常一樣進一步改進整合。所以我們總是關注足跡。我們正在考慮我們可能想到的地方。因此，我們指導的事情之一是我們即將在西海岸建立新的業務，那裡的數量和需求都得到了改善，我們也希望實際上增加一些產能。所以我認為這將進一步幫助我們改進並提高效率。所以你不必在該國的該地區運送東西。

And one more thing that I'll add is we'll be opportunistic on our steel bonds. And as that candid commodity fluctuates, we'll be keenly focused on being opportunistic.

我還要補充的一件事是，我們將在鋼鐵債券上投機取巧。隨著這種坦率的商品波動，我們將密切關注機會主義。

Understood.

明白了。

Take you guys.

帶你們去吧

(Operator Instructions) Daniel Moore, CJS Securities.

（操作員指示）Daniel Moore，CJS 證券。

Thanks again. And I guess just pulling on the string of M&A up since that's the priority in terms of opportunity, what kind of range of deal sizes are we looking at? And just remind us what a typical valuation range looks like?

再次感謝。我想只是拉動併購，因為這是機會的優先事項，我們正在考慮什麼樣的交易規模範圍？請提醒我們典型的估值範圍是什麼樣的？

So as that we don't kind of disclose the size of the deals. But I think what I can tell you is that some of the deals we're looking at are probably on the smaller to midsize area.

因此我們不會透露交易的規模。但我想我可以告訴你的是，我們正在考慮的一些交易可能是在中小型區域。

Yes, that makes sense for us that will help us accelerate certain areas of our business. And again, we don't disclose kind of the metrics, but I think what you can expect is and we're looking for accretive acquisitions within that 18-month range period. There hopefully will be faster than that, but that's kind of what we're looking at.

是的，這對我們來說很有意義，它將幫助我們加速某些業務領域的發展。再說一次，我們沒有透露具體的指標，但我認為您可以期待的是，我們正在尋找 18 個月範圍內的增值收購。希望會比這更快，但這就是我們正在考慮的。

Helpful. And then Nike on obviously seeing continued continue to see good traction in terms of installs. Has the the last two deals that you announced, have those sort of walk in others up at all? And just talk about the cadence of dialogues, both with larger Eats and as well as independents note last six months relative to maybe the prior six to 12?

有幫助。然後耐吉顯然繼續在安裝方面看到良好的牽引力。您宣布的最後兩筆交易是否對其他交易有影響？只談對話的節奏，無論是與大型外送還是獨立人士的對話，過去六個月相對於之前的六到十二個月？

No, look it, there's certainly a snowball effect come to the market when we make those announcements and those partnerships, I'm very proud of kind of where we are continuing to innovate on the back end. I'm investing in that in that vertical heavily right now, as you can, as you can see and, you know, still in conversations with the largest operators and when you kind of see there, they're the labor cost issues that they're having, it puts this solution at that center stage. And so yes, we're excited about the momentum and continue to innovate.

不，看看吧，當我們發布這些公告和建立這些合作夥伴關係時，市場肯定會產生滾雪球效應，我對我們在後端繼續創新感到非常自豪。我現在正在這個垂直領域進行大量投資，正如你所看到的，你知道，仍在與最大的運營商進行對話，當你看到那裡時，他們正在解決勞動力成本問題。解決方案置於中心舞台。所以，是的，我們對這種勢頭感到興奮，並繼續創新。

So I think where we are right now.

所以我認為我們現在處於什麼位置。

Helpful. And maybe one more for Ramey. Just cash flow, obviously exceptional this year. Just talk about your outlook for CapEx for 24 and how you're thinking about working capital and what a free cash flow potential can look like?

有幫助。也許還有一個給雷米的。只是現金流，今年顯然很例外。請談談您對 24 的資本支出的展望以及您如何看待營運資金以及自由現金流潛力會是什麼樣子？

I shared then I think if you looked at what we did in 2018, we're very happy what we did in terms of working capital and cash flow. I think CapEx outside of what I mentioned about the West Coast operation that I probably have a little higher than what we saw in 23 Com. But outside of that, there's not anything else that sizable that would impact it.

我當時分享道，我認為如果你看看我們 2018 年所做的事情，我們對我們在營運資本和現金流方面所做的事情感到非常高興。我認為，除了我提到的西海岸營運之外，資本支出可能比我們在 23 Com 中看到的要高一些。但除此之外，沒有其他大的事情會對其產生影響。

I think the other thing in terms of working capital, I think there's still some improvement we can get there in terms of our receivables area that we're working on. But I think the amount of that we got this year and it's a good trend that we'll continue to stay on in focusing to improve.

我認為在營運資本方面的另一件事是，我認為在我們正在努力的應收帳款領域，我們仍然可以取得一些改進。但我認為我們今年的成果是一個良好的趨勢，我們將繼續專注於改進。

Got it.

知道了。

Very good.

非常好。

Look forward to seeing you down in Temple at a month or so.

期待一個月左右在坦普爾見到您。

Thanks.

謝謝。

Because again, I would like to turn the call over to Randy Jackson for closing remarks.

因為我想再次將電話轉給蘭迪傑克森進行總結發言。

Okay.

好的。

Great.

偉大的。

Thank you, everyone, for joining us today. We appreciate your support of Janus International and look forward to updating you on our progress and have a great day.

謝謝大家今天加入我們。我們感謝您對 Janus International 的支持，並期待向您通報我們的最新進展，祝您度過愉快的一天。

This concludes today's teleconference. You may disconnect your lines at this time, and thank you for your participation.

今天的電話會議到此結束。此時您可以斷開線路，感謝您的參與。