On August 7, 2024, The AZEK Co Inc (AZEK, Financial) released its 8-K filing announcing its third-quarter fiscal 2024 results. The AZEK Co Inc is a designer and manufacturer of beautiful, low-maintenance, and environmentally sustainable products focused on the fast-growing Outdoor Living market. Its portfolio includes decks, rail, trim, and outdoor furniture, with the Residential segment generating the maximum revenue.
Performance Overview
The AZEK Co Inc (AZEK, Financial) reported consolidated net sales of $434.4 million for the third quarter of fiscal 2024, marking a 12% year-over-year increase. This figure surpasses the analyst estimate of $396.38 million. The Residential segment, which is the company's primary revenue driver, saw an 18% year-over-year increase in net sales, reaching $416.0 million.
Net income for the quarter rose by 45% year-over-year to $50.1 million, translating to $0.34 per share, which is above the analyst estimate of $0.30 per share. Adjusted net income also saw a significant increase of 38% year-over-year to $62.0 million, or $0.42 per share.
Financial Achievements
The company's gross profit margin expanded by 380 basis points year-over-year to 37.8%, while the adjusted gross profit margin increased by 350 basis points to 38.7%. Adjusted EBITDA grew by 24% year-over-year to $119.4 million, with the adjusted EBITDA margin expanding by 260 basis points to 27.5%.
The AZEK team delivered record financial results this quarter, as we continued to execute our strategy to drive material conversion, above-market growth, and margin expansion," said Jesse Singh, CEO of The AZEK Company.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales | $434.4 million | $387.6 million | +12% |
| Net Income | $50.1 million | $34.6 million | +45% |
| Adjusted EBITDA | $119.4 million | $96.7 million | +24% |
| EPS | $0.34 | $0.23 | +48% |
Balance Sheet and Cash Flow
As of June 30, 2024, The AZEK Co Inc (AZEK, Financial) had cash and cash equivalents of $346.9 million and approximately $147.8 million available for future borrowings under its Revolving Credit Facility. The company generated $195 million of cash from operating activities and $178 million of free cash flow during the quarter.
Outlook
The AZEK Co Inc (AZEK, Financial) reaffirmed its outlook for the second half of fiscal 2024 and raised the bottom end of its full-year fiscal 2024 guidance. The company now expects consolidated net sales in the range of $1.422 to $1.438 billion and adjusted EBITDA in the range of $370 to $380 million for the full year.
For the fourth quarter of fiscal 2024, AZEK expects consolidated net sales between $329 to $345 million and adjusted EBITDA between $82 to $92 million. The company remains confident in its ability to drive double-digit growth over the long term.
For more detailed insights and to access the full earnings report, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from The AZEK Co Inc for further details.
