AZEK Q4 2022 Earnings Report
Key Takeaways
AZEK's Q4 2022 results showed a decrease in net sales by 12% to $304.6 million compared to the same period in the prior year. The company experienced a net loss of $4.8 million, or ($0.03) per share, compared to a net income of $38.6 million, or $0.25 per share, in the prior year. Adjusted EBITDA decreased to $65.1 million from $81.5 million in the prior year.
Consolidated net sales reached $304.6 million.
The company experienced a net loss of ($4.8) million, with an adjusted net income of $24.5 million.
EPS was reported at ($0.03) per share, while adjusted diluted EPS was $0.16 per share.
Adjusted EBITDA amounted to $65.1 million.
AZEK
AZEK
AZEK Revenue by Segment
Forward Guidance
AZEK anticipates a decline in new construction and repair and remodel markets, leading to an approximate 10% year-over-year decline in volume for fiscal year 2023. The company expects Adjusted EBITDA to be in the range of $250 to $265 million. For the fiscal first quarter 2023, AZEK expects consolidated net sales in the range of $200 to $215 million, and Adjusted EBITDA in the range between $8 to $12 million.
Positive Outlook
- Added capacity positions the company well to pursue new market opportunities.
- The company can expand its market share and drive wood conversion.
- AZEK can execute its cost reduction programs.
- The company can provide best-in-class service to its customers.
- AZEK is positioned to generate meaningful free cash flow in fiscal 2023.
Challenges Ahead
- Potential for a slowdown in the markets in 2023.
- AZEK is assuming new construction and repair and remodel market declines.
- An approximately 10.0% year over year decline in volume is expected.
- An estimated negative impact of approximately $8 million in cost of sales, with the majority impacting the fiscal first quarter.
- Channel inventory reduction remains on track.
Revenue & Expenses
Visualization of income flow from segment revenue to net income