AZEK Q3 2021 Earnings Report
Key Takeaways
The AZEK Company reported a strong third quarter in fiscal year 2021, with consolidated net sales increasing by 46.4% year-over-year to $327.5 million. Net income increased significantly to $21.8 million, and the company is raising its full-year fiscal 2021 net sales and Adjusted EBITDA outlook.
Consolidated net sales increased 46.4% year-over-year to $327.5 million.
Residential segment net sales increased 51.2% year-over-year to $291.2 million.
Net income increased by $73.9 million year-over-year to $21.8 million, with net margin expanding to 6.6% from (23.3%).
GAAP earnings per share increased by $0.58 year-over-year to $0.14 per share; Adjusted Diluted EPS increased by $0.21 year-over-year to $0.26 per share.
AZEK
AZEK
AZEK Revenue by Segment
Forward Guidance
AZEK expects consolidated net sales growth of 28% to 30% year-over-year and Adjusted EBITDA growth of 27% to 29% year-over-year for fiscal year 2021. For the fourth quarter fiscal 2021, AZEK expects consolidated net sales growth in the 22% to 27% range year-over-year and Adjusted EBITDA growth in the 19% to 25% range year-over-year.
Positive Outlook
- Continued market strength
- Recent capacity additions
- Pricing actions
- Disciplined approach to execution
- Strong Residential segment growth
Challenges Ahead
- Uncertainty regarding reconciling items
- Variability in the provision for income taxes
- Estimates for warranty and rebate accruals
- Timing of the gain or loss on disposal of property, plant and equipment
- Higher costs in the near-term
Revenue & Expenses
Visualization of income flow from segment revenue to net income