Q2 2024 Azek Company Inc Earnings Call Transcript
Key Points
- The AZEK Co Inc (AZEK) reported strong performance with double-digit residential sell-through growth, driven by effective execution of growth initiatives.
- The company raised its fiscal year 2024 net sales and adjusted EBITDA outlooks, reflecting increased confidence in its business execution.
- The AZEK Co Inc (AZEK) experienced growth in its residential segment by 19% year-over-year, supported by strong channel, contractor, and consumer demand.
- Investments in research and development, brand awareness, and customer relationships have strengthened The AZEK Co Inc (AZEK)'s market position as a category leader.
- The company's recycling and operational initiatives have expanded, including a new Texas-based operation, enhancing sourcing network and reducing costs.
- The AZEK Co Inc (AZEK) is delaying its Form 10-Q filing due to discrepancies found in inventory accounting, which required a thorough investigation.
- A plant accountant discovered a gap in the company's balance sheet and physical inventory sub-ledger, leading to an independent investigation.
- The investigation revealed unsupported manual journal entries by a former employee, increasing inventory value and decreasing cost of goods sold.
- The inventory issue led to a restatement of past financials and a $4 million additional cost not previously planned for in fiscal year 2024.
- Despite strong performance indicators, the company maintains a cautious outlook, assuming a flattish repair and remodel market and mid-single-digit sell-through growth for the remainder of the fiscal year.
Hello, and welcome to the AZEK Company's Second Quarter Fiscal 2024 Earnings Call. After the presentation, there will be a question-and-answer session. Please be advised that today's conference is being recorded.
I would now like to hand the conference over to Eric Robinson. Please go ahead, Eric.
Thank you, and good afternoon, everyone. We issued our earnings press release and a supplemental earnings presentation this afternoon to the Investor Relations portion of our website at investors.azekco.com, the earnings press release was also furnished via 8-K on the SEC's website.
I'm joined today by Jesse Singh, our Chief Executive Officer; and Peter Clifford, our Chief Operations Officer and Chief Financial Officer. I would like to remind everyone that during this call, we may make certain statements that constitute forward-looking statements within the meaning of federal securities laws, including remarks about future expectations, beliefs, estimates, forecasts, plans and prospects.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
