AZEK Q3 2022 Earnings Report
Key Takeaways
The AZEK Company reported a strong third quarter for fiscal year 2022, with net sales increasing by 20.6% to $395.0 million and net income increasing by 26.2% to $27.5 million. The company also announced the acquisition of INTEX Millwork and returned $58 million to shareholders through share repurchases.
Consolidated net sales increased 20.6% year over year to $395.0 million.
Net income increased 26.2% year over year to $27.5 million.
Adjusted Diluted EPS increased 11.5% year over year to $0.29.
The company announced the acquisition of INTEX Millwork Solutions, LLC.
AZEK
AZEK
AZEK Revenue by Segment
Forward Guidance
For the fourth quarter fiscal 2022, AZEK expects consolidated net sales between $276 million to $302 million, and Adjusted EBITDA of $59 million to $71 million. AZEK expects Adjusted Diluted EPS between $0.15 to $0.19 per share.
Positive Outlook
- Recycling initiatives are expected to contribute to Q4 results
- AIMS continuous improvement initiatives are expected to contribute to Q4 results
- Strong price realization is expected to contribute to Q4 results
- The company has an attractive, resilient business model
- The company has multiple levers to drive growth and margin expansion
Challenges Ahead
- Uncertainty regarding reconciling items such as the variability in the provision for income taxes
- Uncertainty regarding the estimates for warranty and rebate accruals
- Uncertainty regarding the timing of the gain or loss on disposal of property, plant and equipment
- Material changes to these reconciling items could have a significant effect on Adjusted EBITDA
- Material changes to these reconciling items could have a significant effect on Adjusted Diluted EPS guidance and future GAAP results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income