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AZEK
🇺🇸 NYSE:AZEK
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•
Mar 31, 2021

AZEK Q2 2021 Earnings Report

AZEK reported strong sales growth and margin execution, expanded capacity investment, and launched its inaugural ESG report. The company also raised its full-year fiscal 2021 outlook.

Key Takeaways

The AZEK Company announced strong second-quarter results with a 19.4% increase in consolidated net sales to $293.1 million and a net income increase of $18.6 million to $22.7 million. The company is raising its full-year fiscal 2021 outlook, expecting consolidated net sales growth of 23% to 26% year-over-year.

Consolidated net sales increased 19.4% year-over-year to $293.1 million.

Residential segment net sales increased 24.7% year-over-year to $262.2 million.

Net income increased $18.6 million year-over-year to $22.7 million; Net Margin expanded 600 basis points to 7.7%.

Adjusted EBITDA increased $15.7 million year-over-year to $71.5 million; Adjusted EBITDA Margin expanded 170 basis points to 24.4%.

Total Revenue
$293M
Previous year: $246M
+19.4%
EPS
$0.25
Previous year: -$0.0495
-605.3%
Adjusted EBITDA
$71.5M
Previous year: $55.8M
+28.1%
Adjusted EBITDA Margin
24.4%
Previous year: 22.7%
+7.5%
Gross Profit
$97.9M
Previous year: $79.4M
+23.3%
Cash and Equivalents
$151M
Previous year: $94.7M
+59.8%
Free Cash Flow
-$58.3M
Previous year: -$35.1M
+65.9%
Total Assets
$1.99B

AZEK

AZEK

AZEK Revenue by Segment

Forward Guidance

AZEK is raising its outlook for the full year fiscal 2021. The outlook includes increased sales, recent pricing and productivity actions, strategic investments and inflation. AZEK now expects consolidated net sales growth of 23% to 26% year-over-year and Adjusted EBITDA growth in the 25% to 29% range year-over-year.

Positive Outlook

  • Expecting consolidated net sales growth of 23% to 26% year-over-year.
  • Expecting Adjusted EBITDA growth in the 25% to 29% range year-over-year.
  • Residential segment net sales growth of around 30% year-over-year.
  • Expecting consolidated net sales growth in the 29% to 32% range year-over-year for Q3 2021.
  • Expecting Adjusted EBITDA growth in the 15% to 18% range year-over-year for Q3 2021.

Challenges Ahead

  • Partially offset by a mid-single digit decline in Commercial segment net sales for full year 2021.
  • Partially offset by expected flat net sales in the Commercial segment for Q3 2021.
  • Seeing significant raw material and other inflation.
  • Expect pricing and productivity initiatives to offset inflationary headwinds by the end of the fiscal year.
  • Uncertainty regarding reconciling items such as the variability in the provision for income taxes.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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